1936 CONGRESSIONAL RECORD-HOUSE FEBRUARY 27: APPOINTMENTS, BV TRANSFER, IN THE REGULAR .ARM'Y CONFIRMATIONS TO QUARTERMASTER CORPS Executive nominations confirmed by the Senate February 21. Capt. Richard Tonkin Mitchell, Infantry, with rank from 1939 . August 1, 1935. POSTMASTERS TO FINANCE DEPARTMENT LOUISIANA Capt. Benjamin Harrison Graban, Cavalry, with rank from Ella D. Farr, Gilliam. June 16, 1930. Philip C. Girlinghouse, Jena. TO ORDNANCE DEPARTMENT Leon S. Haas, Opelousas. First Lt. Paul Nelson Gillon, Coast Artillery Corps, with rank from June 13, 1936. MONTANA First Lt. Russell Roland Klanderman, Infantry, with rank Alvin 0. Lien, Brockton. · from June 13, 1936. NEW JERSEY TO CAVALRY Ethel Cranmer, Ship Bottom. Second Lt. John Fleming Polk, Infantry, with rank from June 12, 1937, effective June 12, 1939. TO FIELD ARTILLERY HOUSE OF REPRESENTATIVES First Lt. John Eidell Slaughter, Infantry, with rank from MONDAY, FEBRUARY 27, 1939 June 12, 1938. The House met at 12 o'clock noon. PROMOTIONS IN THE REGULAR ARMY The Chaplain, Rev. James Shera Montgomery, D. D., offered TO BE COLONELS the following prayer: Lt. Col. Donald Hilary Connolly, Corps of Engineers, from 'To Thee, 0 Lord, we breathe our grateful prayer of praise. February 18, 1939. For the refreshment of divine truth and love, for the bread Lt. Col. Raymond Foster Fowler, Corps of Engineers, from that feeds the immortal soul, for the treasures of conquering. February 18, 1939. faith, and for the gift of Him who brings tidings of peace on TO BE LIEUTENANT COLONELS earth to men of good will-for these undying blessings do Maj. Francis Artaud Byrne, Infantry, from February 18, Thou receive our humble thanks. Grant that our thoughts 1939. may be large, our ideals lofty, and our service heroic. As Maj. Farragut Ferry Hall, Quartermaster Corps, from Feb­ servants of our Republic, help us to set them forth in actual ruary 18, 1939. life and in practical conduct. Heavenly Father, remember TO BE MAJORS the great army of workers who serve without trumpet, whose Capt. David Marshall Ney Ross, Infantry, from February names are written only in the book of human life. Almighty 18, 1939. God, multiply their numbers and increase their power, and Capt. Robert Battey McClure, Infantry, from February 18, assure them that they will yet change the scarred face of this 1939. torn earth. We beseech Thee to swell the current of peace that comes from across the sea. May it surge and live until APPOINTMENT TO TEMPORARY RANK IN THE AIR CORPS IN THE the legions of war are transformed into the ranks of good will REGULAR ARMY and brotherhood and lifted to the higher states of power and Lt. Col. Harold Aron Strauss, Air Corps, to be colonel, from blessing. In the name of Jesus. Amen. February 18, 1939. The Journal of the proceedings of Friday, February 24, APPOINTMENT IN THE NATIONAL GUARD OF THE UNITED STATES 1939, was read and approved. GENERAL OFFICER MESSAGE FROM THE PRESIDENT Brig. Gen. Thomas Alexander Frazier, Adjutant General's A message in writing from the President of the United Department, Tennessee National Guard, to be brigadier gen­ States was communicated to the House by Mr. Hess, one of eral, Adjutant General's Department, National Guard of the his secretaries. United States. PROMOTIONS IN THE NAVY EXTENSION OF REMARKS The following-named lieutenants to be lieutenant com- Mr. PATMAN. Mr. Speaker, I ask unanimous consent to manders in the Navy, to rank from the 23d day of June 1938: extend my own remarks in the RECORD and to include certain Richard W. Ruble excerpts and an explanation thereof. The SPEAKER. Is there objection to the request of the William E. Hennigar gentleman from Texas [Mr. PATMAN]? Samuel G. Fuqua There was no objection. The following-named lieutenants to be lieutenant com­ Mr. HOUSTON. Mr. Speaker: ! ask unanimous consent to manders in the NaVY, to rank from the date stated opposite extend my own remarks in the RECORD and to include a their names: speech made by the Solicitor General of the United States at Joyce A. Ralph, September 1, 1938. Topeka, Kans., on the 22d of this month. Philip D. Lohmann, December 1, 1938. The SPEAKER. Is there objection to the request of the John A. Morrow, January 1, 1939. gentleman from Kansas [Mr. HousTON]? William J. Mullins, January 26, 1939. There was no objection. John R. Johannesen, February 1, 1939. Mr. O'CONNOR. Mr. Speaker, I ask unanimous consent to Lt. Pennsylvania Avenue be hereafter known as the John Philip mittee on Appropriations? Sousa Bridge. Mr. WOODRUM of Virginia. That is correct. Mr. TABER. It provides funds which were originally The bill was ordered to be read a third time, was read the carried in the independent offices bill as that bill passed the third time, and passed, and a motion to reconsider was laid House, and takes care of funds which are required to meet on the table. the additional duties imposed on the Federal Housing Admin­ LIGHTING OF STREETS IN THE DISTRICT OF COLUMBIA istration subsequent to the consideration of the last defi­ Mr. RANDOLPH. Mr. Speaker, by direction of the Com­ ciency act? mittee on the District of Columbia, I ask unanimous consent Mr. WOODRUM of Virginia. That is correct. to take from the Speaker's table the bill (S. 1294) to author­ Mr. TABER. There has been no previous opportunity to ize the Commissioners of the District of Columbia to regu­ provide this money? late the hours during which streets, alleys, and so forth, Mr. WOODRUM of Virginia. That is correct. shall be lighted, and ask its immediate consideration. Mr. TABER. And this amount has been eliminated from I may say in this connection, Mr. Speaker, that the Com­ the independent offices bill? mittee on the District of Columbia has reported out an Mr. WOODRUM of Virginia. In conference; yes. identical House bill which is now on the calendar. The SPEAKER. Is there objection to the request of the The Clerk read the title of the Senate bill. gentleman from Virginia [Mr. WooDRUM]? The SPEAKER. Is there objection to the request of the There was no objection. gentleman from West Virginia? The House joint resolution was agreed to, and a motion There being no objection, the Clerk read the Senate bill, to reconsider was laid on the table. as follows: PHILIPPINE ISLANDS Be it enacted, etc., That the Commissioners of the District of Columbia, subject to appropriations therefor, are hereby author­ The SPEAKER laid before the House the following message ized and empowered to require that all publjc and ot her lamps from the President of the United States, which was read, under their control be lighted during such hours as in their judg­ ment will most effectively promote the safety and convenience of and, with the accompanying papers, referred to the Com­ the public. mittee on Insular Affairs. Mr. RANDOLPH. Mr. Speaker, in connection with this bill To the Congress of the United States: I wish to take just a few minutes of the time of the House As reqUired by section 2 (a) (11) of the act of Congress to say that at present the lights on the District of Columbia approved March 24, 1934, entitled "An act to provide for the streets, which you and hundreds of thousands of other per­ complete independence of the Philippine Islands, to provide sons in the District of Columbia use every day, are so regu­ for the adoption of a constitution and a form of government lated by statute passed by Congress that they have to be for the Philippine Islands, and for other purposes," I trans­ turned on at a certain time and turned off at a certain time, mit herewith a copy of Commonwealth Act No. 253, passed and these times have been designated by law. We believe the by the First National Assembly of the Philippines during its Commissioners should certainly have discretionary power to second session, from October 16, 1937, to November 21, 1937, turn on and off the lights on the streets of the District of and copies of laws enacted during its third session, from Columbia. They should be given regulatory power at once. January 24, 1938, to May 20, 1938, and its fourth special I bring this matter to your attention because we know of session, May 23 and 24, 1938. the sadness which came recently to one of the Members of The missing numbers will be transmitted to you hereafter this body, the gentleman from Florida [Mr. CALDWELL] when :when copies are received from the Philippine Islands. his son was hit and killed by an automobile. The driver and FRANKLIN D. ROOSEVELT. the car vanished. This accident happened on a damp, foggy, THE WHITE HOUSE, February 27.. 1939. wet morning, at a time when it was dark in the District, yet 1938 CONGRESSIONAL. RECORD-HOUSE FEBRUMY 27. under the statute the lights had been turned off instead of very evident injustice h1 the present case that I go alons· with remaining on at that hour. the chairman of the District Committee and support the This is the only explanation I desire to make, but I felt the measure. membership would want to know the reason for a bill such as Mr. DOWELL. Mr. Speaker, will the gentleman yield? this being brought to your attention. Mr. DIRKSEN. I yield to the gentleman from Iowa. The bill was ordered to be read a third time, was read the Mr. DOWELL. Have the Commissioners any power tore­ third time, and passed, and a motion to reconsider was laid consider and change the decision of the trial board without on the table. an act of Congress? A similar House bill (H. R. 3948) was laid on the table. Mr. DIRKSEN. No. That is the reason the bill is here at DAVID R. THOMPSON AND RALPH S. WARNER the present time. The Commissioners of the District of Mr. RANDOLPH. Mr. Speaker, I call up the bill (H. R. Columbia are without any authority whatever to make a re­ 2261) to authorize and direct the Commissioners of the Dis­ instatement after there has been a dismissal on the basis of trict of Columbia to set aside the trial-board conviction of findings by the trial board, so the matter must come back Policemen David R. Thompson and Ralph S. Warner and their here for legislative action. resultant dismissal, and to reins~te David R. Thompson and Mr. DOWELL. The trial board cannot reconsider ·its RalphS. Warner to their former positions as members of the action? · Metropolitan Police Department, and ask unanimous consent Mr. DIRKSEN. No. that it may be considered in the House as in Committee of Mr. TABER. Mr. Speaker, will the gentleman yield for a. the Whole. question? The Clerk read the title of the bill. . Mr. DIRKSEN. I yield. The SPEAKER. Is there objection to the request of the Mr. TABER. Have the District Commissioners indicated gentleman from West Virginia? to the gentleman's committee that they do not object to this There was no objection. bill? Mr. RANDOLPH. Mr. Speaker, I ask unanimous consent Mr. DIRKSEN. That is right, so it is a satisfactory pro-· that a similar Senate bill (S. 316) may be considered in lieu cedure all the way along the line. of the House bill. Mr. RANDOLPH. Mr. Speaker, will the gentleman yield? The Clerk read the title of the Senate bill. Mr. DIRKSEN. I yield to the gentleman from West Vir­ The SPEAKER. Is there objection to the request of the ginia. gentleman from West Virginia? Mr. RANDOLPH. I may say that what the gentleman There being no objection, the Clerk read the Senate bill, as from Illinois [Mr. DIRKSEN] has said is absolutely true. follows: Further, we of the House comi:nittee believe that in being reinstated these ·men should be compensated for the time Be it enacted, etc., That the Commissioners of the District of Columbia be, and they are hereby, authorized and directed to they have been off the force. If we pass this bill containing reappoint David R. Thompson and Ralph S. Warner· as members the amendment I have offered, the Senate and the House of of the Metropolitan Police Department of the District of Columbia; Representatives will go to conference on that matter.' We compensation to commence from the date of - ~uch reappointment only, and no pay or compensation to be paid 'them from the date desire to do what it is fair and right. Justice certainly must of their dismissal from the Metropolitan Police Department to the be extended to these two former officers of the Metropolitan date of such reappointment. Police force. Mr. RANDOLPH. Mr. Speaker, I offer an amendment. The SPEAKER. The question is on the amendment offered The Clerk read as follows: by the gentleman from West Virginia. · Amendment offered by Mr. RANDOLPH: Strike out all after the The amendment was agreed to. enacting clause and insert in lieu thereof the folloWing: The bill was ordered to be read a third time, was read the "That the Commi~ioners of the District of Columbia be, and third time, and passed, and a motion to reconsider was laid they are hereby, authorized and directed. to set aside the trial­ board conviction of Policemen David R. Thompson and Ralph S. on the table. Warner and their resultant dismissal, and to reinstate David R. A House bill (H. R. 2261) was laid on the table. Thompson and Ralph S. Warner to their former positions as mem­ The title was amended so as to read: "A bill to authorize bers of the Metropolitan Police Department of the District of and direct the Commissioners of the District of Columbia to Columbia." set aside the trial-board conviction of Policemen David R. Mr. DIRKSEN. Mr. Speaker, I move to strike out the last Thompson and Ralph S. Warner and their resultant dismis­ word. sal, and to reinstate David R. Thompson and Ralph S. War­ Mr. Speaker, I just wish to say to the membership of the ner to their former positions as members of the Metropolitan House in connection with this bill that over the last 6 or 'l Police Department." years since I have been a member of the Committee on "the Mr. RANDOLPH. Mr. Speaker, this finishes the business District of Columbia I have made it a policy to oppose any on the calendar today from the District of Columbia Com­ effort to reinstate,any police officer if he has had a hearing mittee. by the trial board and has been dismissed as a result of the EXTENSION OF REMARKS findings of such -board. Mr. LUTHER A. JOHNSON. Mr. Speaker, I ask unani­ In the case of the officers, however, who are covered by mous consent to extend my own remarks in the RECORD and the pending bill, it would appear that a very apparent and to include therein an excerpt from a bill I have introduced palpable injustice has been done these two gentlemen. The and also a letter and resolution with reference to it. matter has been thoroughly investigated. A special investi-· The SPEAKER. Is there objection to the request of the gating committee has labored on the matter at great length. gentleman from Texas? The Commissioners of the District of Columbia have notified There was no objection. the chairmen of the House District Committee and the Sen­ ate District Committee that in their judgment an injustice MESSAGE FROM THE SENATE has been done. Hence, there is before you now the reinstate­ A message from the Senate, by Mr. St. Claire, one of its ment of the two officers who were dismissed. clerks, announced that the Senate had passed without I wish to make it very clear to the House that as a general amendment a joint resolution of the House of the following thing the Committee on the District of Columbia as such title: seldom seeks to go beyond the findings of the trial board H. J. Res. 185. Joint resolution making additional funds whenever it comes to reinstating officers, as the thing works available for salaries and expenses, Federal Housing Admin­ at the present time. The trial board takes testimony and istration. makes its findings. The officers are dismissed. It is so easy TREASURY AND POST OFFICE DEPARTMENTS APPROPRIATION BILL, for them to enlist their friends on the House and Senate Dis­ 1940 trict Committees, and we have had this matter to contend Mr. LUDLOW. Mr. Speaker, I move that the House re­ with over a period of years. It is only because there is a. solve itself into the Committee of the Whole House on the CONGRESSIONAL RECORD-. HOUSE 1939 state of the Union for the further consideration of the bill ·- Now here are the purchases that have been made since ,se tentacles were buy silver at a premium of 20 cents an ounce when the world wound around the economic structure of Alnerica but some­ price today is 43 cents an ounce. how, they bask in the light of popularity today because they Mr. LEWIS of Colorado. You regard it as a subsidy, do are the recipients of the silver subsidy that is paid out of you? the pockets of the American taxpayers. Mr. DffiKSEN. I regard it as an outrageous subsidy, when We have bought newly mined silver to the extent of we could have purveyed relief to every silver miner in the 253,000,000 ounces. Some of it we bought at 77 ~ cents an country and bought him a new bungalow and 10 acres of ounce, some at 71 cents, and some at 64.64 cents an ounce. land and put him on a pension for life for what this Silver At the present time, under the President's proclamation, we Act has cost the country. are paying 64.64 cents an ounce for newly mined silver. What Mr. LEWIS of Colorado. For the purpose of the argu­ is the world price today? Pick up any New York newspaper ment only, let us dismiss all except the purchase of newly and look at the market reports, and you will find that the mined silver. You say it is a subsidy. Let us grant that, world price is about 43 cents an ounce. The dentist who buys for the purpose of the argument. The gentleman regards silver to fill a tooth pays 43 cents an ounce and the jeweler it, though, as an objectionable subsidy, as I understand? who buys it pays 43 cents an ounce, but when Uncle Sam buys Mr. DffiKSEN. I just so characterized it, I think. newly mined silver he pays not 43 cents an ounce but 64.64 Mr. LEWIS of Colorado. You do characterize it as an cents an ounce, so that you have a subsidy or a premium of objectionable subsidy. The gentleman realizes that there are something over 20 cents an ounce. Assume that subsidy has other subsidies in this country granted by the Governme:1t continued at about that net level figure since 1934, then you of the United States, does he not? have had a subsidy for a very small group of people amount­ Mr. DffiKSEN. None in the proportion that this was ing to pretty close to $50,000,000 since 1934. If we subsidize granted. the rest of the people of the country in like proportion, we Mr. LEWIS of Colorado. It is a matter of degree, then, might as well lock up shop and go home, because then we and not a matter of principle; is that right? will have put the skids under the United States of America. Mr. DffiKSEN. I object to the principle and I object That is No. 1 reason why the Silver Purchase Act ought to be to the degree. repealed. It is an unparalleled anrt outrageous suosidy that Mr. LEWIS of Colorado. Has the gentleman objected to !s unnecessary, that goes to but a small group of producers, the subsidies granted to the farmers? that has effected no economic good for the Nation, and which Mr. DIRKSEN. No. If there is going to be a subsidy by bas not lived up to a single claim made for it when it was enactment of this Congress, then let it be a uniform subsidy. enacted in 1934. But this kind of a subsidy cannot be defended on any ground Reason No.2 is that it has been purveying great ·and inde­ that I know of, both as to the degree and as to the principle. fensible benefits to speculators everywhere in the world and to When you talk about a subsidy for farmers, you are bringing smugglers in foreign countries who saw an opportunity to in some considerations that certainly are not as divergent as smuggle silver out of their countries and sell it to the United you will find in the world price of silver. States at a fancy profit and at a burdensome cost to our Now, I want to get to the end of this without taking too taxpayers. much time, and I do not yield further, Mr. Chairman. Mr. WOLCOTT. Mr. Chairman, will t;.e gentleman yield? When the Silver Purchase Act was on this floor in 1934, Mr. DIRKSEN. I yield. men just literally beat their breasts, and their stentorian Mr. WOLCOTI'. The gentleman's first point calls atten­ voices went up to the ceiling as they talked about the tre­ tion to the fact that the price of silver is 42 cents now. I mendous amount of good that would be done for foreign want to call the attention of the Committee to the point- countries. It was going to stimulate -the purchasing power _1939 _CONGRESSIONAL RECORD-HOUSE 1941 of foreign countries. It was going to make it possible to do the long, uphill climb that represents the high road of pros­ some business with China. It was going to substantially perity, I suggest that you march right up to the Clerk's desk increase purchases by Mexico. In proportion as it did, mani­ and put your signature on the discharge petition so we can festly, according to them, it would solve the unemployment get action. There is a reason for tllis. The Silver Purchase problem. Let us see what has happened. The record is very Act expires on the 30th day of June. I suppose that in the clear. last week of June a resolution will be brought in to continue · The CHAffiMAN. The time of the gentleman from Illi­ it-you know how such things are done in the last days of nois has again expired. Congress when adjournment fever strikes Congress-and Mr. TABER. Mr. Chairman, I yield the gentleman 5 addi­ then the resolution will have to be acted on at the other side tional minutes. of the Capitol. The better way to do it is the more leisurely Mr. DIRKSEN. Now, let us look at China, as far as the way of considering now the ultimate repeal of the Silver Pur­ benefits of the Silver Purchase Act were concerned. Instead chase Act, to discharge the Ways and Means Committee from of assisting China it resulted in the debasement of China's further consideration of the bill, and then have it brought coin. It stimulated Chinese speculators and smugglers to to the floor while we still have time and leisure and are still get silver out of the country. It introduced a wave of price free from that sense of haste under which such an act ought devaluation in China, and it ran China off the silver stand­ not to be considered. [Applause.] ard and on to a managed currency standard. There is [Here the gavel fell.J nobody who will stand up in his place and deny that that · Mr. LEAVY. Mr. Chairman, I ask unanimous consent that has been the effect of the silver-purchase program. the gentleman may proceed for 2 additional minutes. Mr. WHITE · of Idaho. Will the gentleman yield right · The CHAIRMAN. The time is under the control of the there? gentleman from Indiana and the gentleman from New York. Mr. DffiKSEN. No; I will not. Mr. DIRKSEN. One other important aspect of this matter Secondly, with respect to Mexico, everybody in this House needs consideration also, anct.that is the inflation of our cur­ Will remember the sharp message that came from the Mex­ rency. The Treasury purchases silver at 43 cents, or newly ican State Department and the President of Mexico as a mined silver at 64.64 cents per ounce, and then issues cer­ result of the effect of the silver act upon the economic fabric tificates on the basis of $1.29. On June 30, 1933, before this of Mexico. Silver Purchase Act was on the statute books, there was They have been a - long time getting over the disas­ $360,399,000 worth of silver certificates in circulation outside trous effect that this silver policy had upon the internal the Treasury and the Federal Reserve. On June 30, 1938, economy of our neighbor to the south. silver certificates in circulation had reached the staggering · Mr. WHITE of Idaho. Mr. Chairman, will the gentleman total of $1,230,000,000. · Thus by leaps and bounds we have yield? inflated our currency by the specious device of issuing silver Mr. DIRKSEN. No; I decline to yield. · certificates far in excess of the bullion value of the silver. ­ Mr. WHITE of Idaho. The gentleman knows better. Some day this house of silver may topple upon its sponsors. · Mr. DIRKSEN. So while we gave a subsidy to the domes­ and they will then wonder what is wrong with the country. tic producer of newly mined silver, this silver program is at The Secretary of the Treasury is under a mandate. He the same time the delight of the foreign producers, smug­ can do no other than fix the price of silver every day and glers, and speculators, since 80 percent of our silver comes then buy whatever is offered. No one can read the hearings from foreign countries. It has had a very definitely dis· on this bill without detecting in the answers of the Secretary turbing effect upon the economy of other silver countries. to the questions propounded to him an earnest hope that the Finally, we are left here with a huge hoard of silver which Congress will get busy without delay and repeal this monetary if we ever undertook to sell must be sold at the world price monstrosity. and at very much of a loss. Look at the hearings, page Now is the time to do yeoman service in the interest of the 65. There you will see Mr. Bell's testimony~ We paid from Nation by going to the Clerk's desk and signing the discharge $1,500,000,000 to $1,750,000,000 for the silver. Mr. Bell was petition. asked what we could get for it if we had to sell it, and he Mr. O'NEAL. Mr. Chairman, I yield 20 minutes to the said either $900,000,000 or $1,000,000,000. It means a loss gentleman from Texas [Mr. LANHAM]. of almost half a billion should we attempt to liquidate this · Mr. LANHAM. Mr. Chairman, in the light of recent hap­ hoard of metal which is a canker and a sore to the mone .. penings, I think this is an appropriate time for someone to tary system of the country. It is high time we were doing offer observations on Americanism; and I should like, in the something about it, and this Congress can do something time at my disposal, to give utterance to a few random about it. Last week I filed a discharge petition at the Clerk's thoughts on this subject to you, my fellow Members of the desk. Incidentally, it is the first discharge petition filed in House of Representatives, who, in my judgment, take your the Seventy-sixth Congress. It calls for the repeal of the Americanism straight. Silver Purchase Act of 1934. If this Congress, in line with . I have been very much gratified to receive lately many let­ the demands of the people and in line with the mandate ters from people in various walks of life who live in the dis­ that was expressed on the 8th day of November in this coun­ trict I have the honor to represent stating vehemently their try, wants to resolve· confidence on the part of the busi­ indignation at the meeting recently held in the city of New ness structure, let us give them a dependable monetary sys­ York by the Gennan bund. I am glad to see that there is an tem. One of the first steps in the direction of resolving awakening of the public conscience with reference to the confidence and stimulating a wedlock of idle dollars and idle dangers within our own borders to the Americanism that we hands in the direction of prosperity will be when this abom­ prize coming from propagandists of foreign governments. ination which is known as the Silver Purchase Act of 1934 From such little knowledge as I have of the German tongue, is taken off the books. I think the word "bund" means "bound." Consequently those Foreign newspapers, like the India Times, for instance, said in our country who profess allegiance to the German bund that so far as the preamble to the Silver Purchase· Act was are bound to Oermany; and I for one-and I think in com­ concerned-when we had a preamble in the bill- pany with the great mass of American people-would be glad For sheer economic nonsense, the preamble to the silver declara­ to change that to "bound for Germany." [Applause.] What­ tion is hard to beat. ever the lineage or the location of our ancestors, it behooves That is the evaluation placed upon it by experts in silver everyone who claims to be an American to be bound to countries like India. America. And fortunately we have patriotic citizens whose It is about time this Congress got wise and took this ancestors lived in many lands. abomination from the books. We can do it now; and I ad­ I think it well for the people of this country to know the . monish you that if you want to do something in the direction_ solid ground upon which our American Government is • of resurrecting confidence in the country so we can start on founded., and I believe that we, as missionaries to them. 1942 CONGRESSIONAL RECORD-HOUSE fEBRUARY 27 i should disseminate that information and spread the en­ Bible is just as applicable today as wlien the written words . during doctrines of our republican form of government at came from the hands of the sacred writers. We have in our every time and in every place within our power. Nation enduring principles of government, and it behooves It has been many centuries since Tacitus said that a re­ us all to realize this fact in full appreciation of its worth. publican form of government is more easily applauded than If you will look at the amendments to the Constitution of realized. That statement is true. In theory it is the most the United States-and practically speaking, there have been perfect form of government; in practice, naturally, it has only 11, inasmuch as the first 10, or the Bill of Rights, were many obstacles to overcome. This fact probably led to the substantially a part of the original instrument-you will see remark of an eminent Englishman to the effect that in a that they go principally to the machinery of government and democracy the people are ever eager for rapid progress, and not to the principles upon which the fathers founded this the only progress which can be rapid is progress downhill. country. I wish I had time to elaborate upon that, but Perhaps the difficulties of a democracy arise from the facts through your own study and your own research you will at­ that people are people and that human nature is human test the accuracy of the statement I have made. It is sig­ nature. It cannot come into full flower in a single generation. nificant also that, though the men who gave us our Govern­ Let us look for a few moments at this Government of ours ment in our organic law were eminent statesmen, the com­ and see upon what it is based. mercial interests of our country, the businessmen, if you You will remember that Mr. Gladstone said of the Con­ please, were principally responsible for the formation and stitution of the United States that it was the greatest docu­ the adoption of this instrument. ment ever struck off at a given time by the brain and pur­ Why do I say that? It will be recalled that the year be­ pose of man. The statement with reference to the pre­ fore the Constitutional Convention there was a convention eminence of that immortal document is, in my judgment, held at Annapolis, the purpose of which ·was to amend the quite correct, but I cannot agree with that part of it which old Articles of Confederation so that the Thirteen States, says that it was struck off at a ~ven time. It came, rather, which in many instances had their own tariff restrictions, as the heritage of the ages, through slow processes of prog­ their own moneys, and their own armies, might have an ress and development, attended with strife, suffering, hard­ opportunity to trade among themselves and break down the ship, and even bloodshed. commercial barriers at State lines. There was no disposition Let us go back and trace briefly at least one source of our for a central government with great authority and with the Government, that part of it which came from the Anglo­ power to tax; but they wanted -some basis of commercial Saxon people. You will recall that in the early centuries intercourse, and the Constitutional Convention was, as a the great masses of people had no liberties and no privileges matter of fact, the aftermath of that convention at An­ except such as were vouchsafed to them by the kings and napolis. The tardiness in the ratification of the Constitu­ the ruling classes. The Crusades and the English wars deci­ tion was due in some degree to the fact that the delegates mated the ranks of the nobility, and the mass~s of the people had exceeded their authority, inasmuch as it had been their then began to feel a sense of greater power. This was a very designated purpose to get some basis of trade among the gradual process. Thirteen States. So I say that this document is in con­ There came the extension of the postal system that enabled tradistinction to those which prevail in some countries across the people to correspond with one another and exchange the seas, because ours is a Government of the people. And ideas. There came the invention of the printing press, which inasmuch as business was so largely responsible in giving us enabled the man in the hut to read the printed page as well this Government, it devolves upon business also to preserve as the prince in the palace. There came the invention of and promote it. firearms, by which the humblest could protect himself against Business in its various phases is the natural, the normal, the most mighty. With these means of communication and and the only source of governmental revenue and of private with this means of defense, the sense of class consciousness employment. In my judgment, we could relieve many of the and power grew and developed and the people determined ills that exist today if legitimate business were permitted to to rise and claim for themselves their own rights, formerly proceed with certainty and with a reasonable expectation accepted perforce as mere privileges granted to them from of a fair profit, and if we could get back into the great body the ruling classes. This led, as _you know, to the Magna of our people that same spirit of stamina, self-reliance, and Carta, when the barons wrested from old King John at.Run­ thrift which characterized the men who gave us the United riymede that great charter of liberty. So, having wrested States of America. [Applause.] from the kingly authority these rights which belonged to the Let a governmental bond issue bearing 2¥2 percent be of­ great masses of the people, our fathers came over to this fered to the American people and it will be oversubscribed country imbued with those ideas and determined not to sur­ many times, which is an indication of the fact that the idle render those rights, and so they sought to establish a capital of this country, and there is plenty of it, cannot find government quite different from that of the kingly or a commercial investment from which it can be assured that dictatorial rule. the capital will be protected and the yield be as much as 2 ¥2 · It will be recalled that some of the followers of Washing­ percent. ton, remembering the conditions under which their people So I say if we want to relieve unemployment, if we want had lived for centuries, wanted to make him king but ·that to get this country back on the basis on which the fathers great patriot was done with things kingly and was a leading founded it, it behooves us to return to and adhere to those spirit in helping with the orgaruzation of this democratic original principles. · country. So in contradistinction, it is quite significant to With reference to the distinction between America and some note that our doctrine of government begins not with the of these lands across the sea it is readily observed from this king or with the nobility, but with the people and that they random recital that we builded this country for permanence, stated fn the organic law that we, the people of the United and the institutions reflect that spirit. Listen! If three States, ordain and establish this Constitution. It devolves men in Europe were to pass away before the rising of tomor­ upon you and upon me and upon all Americans to keep our row's sun there would be a state of chaos over there. Just country true to these principles upon which the· fathers what it would be no man knows, but I think no one would founded it. dispute the fact that conditions would be chaotic, because I wonder at the foresight and vision and prescience of these those countries in each instance are founded upon one man, marvelous men who gave us this organic law and the principles and the people are actuated by fear of that man and not by upon which our Government is founded, coming as the rich love of their institutions as we are over here. In this country a heritage of the ages through slow processes and through thousand of our most important men in ali branches of our much suffering. Their wisdom is reflected in the ·fact that enterprise and endeavor might pass away before the rising of these principles have not been changed in 150 years. They tomorrow's sun, and this great Nation of freedom, of liberty, have not been changed because truth does not change. The of faith, and of hope that the fathers gave us would go right 1939 CONGRESSIONAL RECORD-HOUSE 1943 on, because it is builded for permanance upon enduring and worth of its institutions. No artist can ,paint our picture of eternal governmental truths which must have come in the it. No poet can peri our pean to it. No orator can speak first instance from the Almighty Himself. our devotion for it. We love it. God bless it and keep it I believe I called attention in a talk I made in this Chamber true, through your efforts and mine and those of the people last year to a very pertinent remark. When James Russell we represent, to these enduring principles upon which the Lowell, the American poet and a statesman of no mean fathers founded it. [Applause.] ability, was visiting in France he had a talk with Francois Mr. McLEOD. Mr. Chairman, I yield 30 minutes to the Guizot, who had been a Prime Minister of France, as you gentleman from Pennsylvania [Mr. GRoss]. know, and was a great historian. Guizot asked Lowell how Mr. GROSS. Mr. Chairman, it might be well for me to long the American Republic would endure. Lowell answered say a word of introduction, because I have not yet learned very aptly: to know a good many of you. As long as the principles of its founders remain dominant in the · It is not often, I believe, that a bona fide farmer has the hearts of its people. privilege of standing up here and addressing the House. It I am glad to see the people are awakening to the dangers is not very often that a Member who goes home over every of these spurious "isms" which propagandists from abroad week end and milks cows, comes back here to tell you about are spreading in this land of ours. You will recall that in it, but yesterday I milked 15 cows, which is a common oc­ the Farewell Address of George Washington, read in our currence with me on every Sunday in order to give the boys hearing a few days ago, he himself uttered words that were a break. I am not telling you this for any other reason practically prophetic when he stated that the time might · than to show you that I am a farmer and proud of it. I come in this country when some would rise seeking to under­ live on the farm where I was born, in a brick house built mine what they could not overthrow. by my grandfather out of bricks that he made himself on What I think of those propagandists who are preaching that farm. In that house he raised 11 children and my ! these spurious doctrines is pretty well illustrated by an inci- father raised 9 and I raised 8, and I would like to have you dent about which I read many years ago in that book of the see those 8 children just so you would know how boys and · · old-timers by Mr. Baldwin, The Flush Times of Alabama and girls do grow on a good farm in a great State. [Applause.] ' Mississippi. In those days executions were public. A man I now want, in farmer fashion, to spend a few minutes · was passing along the road when a very notorious and des­ setting forth certain facts relative to Pennsylvania, my ' perate criminal had just been hanged and was still wriggling State, and the New Deal. , at the end of the rope. This law-abiding citizen pointed up In the northeastern part of the United States lie approxi­ at him and said, "There he is, standing on nothing and kick­ mately 45,000 square miles comprising Pennsylvania, known ing at the Government." I hope the time will come when as the Keystone State. Pennsylvania for many generations these propagandists over here, who are standing on nothing has been the wonderland of the Nation. Today it contains : and kicking at this Government, will be sent back to live the homes of 10,000,000 souls who are proud to call the Key­ under the regimes that practice the things they preach, stone State their own. where there is no such thing as liberty, where there is no Pennsylvania, all things considered, is the greatest St.ate , such thing as freedom of speech, where there is no such thing in the Union. 'With its alabaster cities; its golden harvests; as freedom of religious worship, where there is no such thing its mines; its oil wells; its rivers. From Philadelphia to as freedom of fraternal gatherings, and where they live in Erie and from Waynesburg to Honesdale, is a treasure land , an atmosphere of constant fear and uncertainty. of wealth and potential happiness beyond the ability of You know, we made a very laudable effort a good many man's mind to comprehend. There is no State in the Union , years ago to make the world safe for democracy. In that better adapted t.o the development of a hardy, vigorous struggle we sacrificed some of the flower of the manhood of people. It has a bracing, temperate climate-free from • this great country of ours. It was a noble enterprise, but un­ earthquakes, tornadoes, and hurricanes that often affect and fortunately it has failed. It has left many boys sleeping be­ affiict other States. As for a place to live wisely, health­ neath the poppies in Flanders fields and brought others back fully, and happily, Pennsylvania is unsurpassed on this sick and maimed and wounded to our own shores to be cared continent. ·. for. It was a laudable undertaking to make the world safe From the Delaware River to the Allegheny, and beyond, for democracy, but what behooves you and me today as repre­ the Keystone State is a colorful pageant of natural beauty. sentatives of the American people in the Congress of the Rugged, forest-clad mountains, and smiling fertile valleys, United States is to see that we keep democracy safe for rushing streams and placid lakes, rolling hills and broad America. [Applause.] fields of wheat, corn, and tobacco, an abundance of wild I like to reflect often upon the epitaph of Thomas Jefferson. game and bass that rise eagerly to the sportsman's lure. · You are all familiar with its lines. In that epitaph, which These are only a few of the riches of this wonderland. . he wrote to be engraved on his tomb, he did not mention Pennsylvania's natural wealth does not end there. Be­ . the fact that he had been President of the United States or neath the beauty of the mountain, meadow, and river lie ·that he had served in important posts abroad, but he men­ fabulous strata of black gold. And beneath that soil flow ' tioned three things: That he was the author of the Declara­ torrents of liquid gold waiting to be converted to the uses , tion of Independence, which back in that day when they of the motorized age. Across the State's broad reaches, in were having, even in this country, imprisonment for debt, was myriad cities, towns, and hamlets blaze the fires of count­ ' in a sense a declaration for physical freedom; that he was less furnaces, foundries, and mllls of great diversity provide the founder of the University of Virginia, which represented a livelihood for Pennsylvania's workers. the freedom of the mind; and that he was the author of the Pennsylvania's industry is a symbol throughout the world ·statute for religious freedom in Virginia, the freedom of the for prosperity and progress. Coal, oil, steel, cement, tex­ soul. tiles, and innumerable others-it is upon these that the Upon these three pillars on which our Government and all well-being of Pennsylvania and of its people rest. free institutions must rest, Jefferson predicated the memory For many, many years the Keystone State has annually of his service to the people of the United States. There is loaded more freight cars with its products to -distribute nothing more important for you and me as representatives throughout the world than any other State in the Union. of the people than to keep these pillars secure-freedom of Her products have been recognized as a national asset and the body, freedom of the mind, and freedom of the soul­ Pennsylvania for many years was not only the pride of her that these tenets of liberty given us by the fathers may re­ own citizenry but the glory of the Nation. The stability of main inviolate in this beloved country of ours. her people has been widely recognized, and throughout the I like to think about this country. I am glad the people Nation today, wherever you find people who trace their an­ are beginning to und.erstand more of its history and the cestry back to the Pennsylvania Dutch you will find strong, 1944 CONGRESSIONAL ·RECORD-HOUSE ;FEBRUARY 27 honest citizens who are still on their own and who resent queathed a great tradition, and in the singing of this new the fact that the Government wants to help everybody. hymn Pennsylvania was declaring that it would carry on. We in Pennsylvania refused to be regimented by the New New hope had arisen and Pennsylvania is again coming into Deal and our farmers never will be regimented. In 1910 her own. On January 17 hundreds of thousands of people, President Theodore Roosevelt, speaking on the York fair­ on a cold and dreary day, flocked into Harrisburg to see grounds, said to York County: "I am proud of your big barns the breaker boy assume the governorship. Early in the and happy in the fact that every fall you have them full." day trains came pouring in and unloaded their thousands. Little did anyone think that day that 28 years later another Traffic had to be suspended. At 12 o'clock the parade Roosevelt would come along with a communistic Secretary of began. Thousands and thousands in solid formation passing Agriculture and tell us that we cannot fill those barns, but we in parade, which lasted far into the night. Such a large, Pennsylvania Dutch are going to continue to fill those barns, happy, and optimistic gl.'oup had never before assembled in regardless of the Roosevelts, Wallaces, and the New Deal Pennsylvania. They were not celebrating someone's defeat. · threats. We love to see corn grow tall. We glory in 40- They were celebrating a great victory, in the firm belief bushel wheat. We delight in clover and alfalfa knee high, that this was the beginning of a better day in our national and bluegrass sods that never tramp through, and we are life. The great damage inflicted by the beast is by no going to continue to fill these barns as God blesses us with means beyond repair, and today we find industrial leaders rain and sunshine-regardless of the New Deal. declaring that the pay rolls will again be in excess of Pennsylvania, a preponderantly Republican State, main- $1,000,000,000, as they at .one time were. Tcday a great' . tained her position through the first Roosevelt election, but revival of business is on in the Keystone State, and Penn­ then, due to the New Deal assault 2 years later Pennsyl­ sylvania's contribution to the national income, unless we vania did fall by the wayside and elected the first Democratic have too much New Deal interference from Washington Governor the State has had in 40 years. Then is when will in a few years again reach the sum total of $8,000,~ Pennsylvania's troubles began. The little new deal was set 000,000, as it at one time was. And when I say New Deal up, patterned after the New Deal in Washington, and we interference from Washington I mean just that. found ourselves wallowing in the New Deal mire. We soon Mr. Chairman, members of the Committee, I have studied a found our great industries paralyzed-people going out of graph of industry in the United States running baek 150 years, employment and being forced onto the relief rolls. We saw and I find during that period we have had four major price the State pay rolls padded, and in a short time the little new swings; all brought about by war. We have had numerous deal had inflicted upon Pennsylvania's industry the ghastly depressions. But if we add together all the depressions in the sum of $340,000,000 of additional taxes yearly. We saw labor 150 years, they will not equal in severity and duration this troubles arising and strikes in our great industrial areas, and one depression in which we now find ourselves. And it is all witnessed the humiliating scene of the Governor of a great because President Roosevelt refuses to let the natural eco­ commonwealth flying into an industrial section and closing nomic laws function. On the doorstep of President Roose­ plants, depriving thousands of men and women of a liveli­ velt and a few New Deal "rubber stamp" Congressmen can hood, who had work and wanted to work-in order to cater be laid the blame for our present economic troubles. With to the whims of a few hell raisers. And this debauching this New Deal interference eliminated, may I repeat that procedure was carried on within the confines of Pennsyl­ Pennsylvania's contribution to the national income will again vania until at Hershey the sturdy Dutch farmers of the com­ reach the sum total of $8,000,000,000, as it at one time was, munity took the situation in hand. and set an example for made up of the following items: Metals, textiles, minerals, public officials by going into the great Hershey chocolate mines, paper, food products, clay, glass, stone, leather, rub­ plant and taking out the sit-down strikers and clubbing them ber, natural gas, tobacco and its products, lumber, railroad out of the community. And this thing all happened after a repair shops, agricultural and farm products, and many week of striking and rioting in the chocolate plant, and with­ others. One great highway project will employ 10,000 men. in 3 miles of the Pennsylvania State police barracks. Here Farm machinery heads are optimistic. Great gain is seen • we again had concrete evidence that the application of just in the ant~acite coal region. Shipbuilding in our navy good horse sense from the common people was the solution yards is going forward. Our steel mills, the greatest in for some very troublesome questions. America, are preparing for record jobs. Automobile manu­ facturers foresee much better business in Pennsylvania. For 3 years Pennsylvania suffered at the hands of the Relief will be administered more economically. Mail-order New Deal beast, when the righteous indignation of a great sales are already increasing. More carpenters are being em­ citizenry began to assert itself, and in the summer of 1938 ployed. Banks are going to extend more credit. Business, everywhere on the streets men and women were expressing instead of being antagonized, has now got public sympathy. their resentment to the assaults on the State by the New Pennsylvania's retail merchants are increasing their stocks. Deal, and it was evident that something was going to happen. Meat-packing industry in Pennsylvania is being expanded. War had been declared on the New Deal by that great Kitchen toil will be reduced. Farmers and workers will be middle class of God-fearing, liberty-loving Pennsylvanians, able to buy labor-saving devices for the housewives. Hotels that band of men and women who on Sunday morning can have launched new advertising campaigns. The great tex­ be seen going to church, taking their children with them, tile industry, with a $103,000,000 pay roll, rapidly leaving the like pioneer mothers used to take their babies and small State, has stopped and will stay in Pennsylvania. More in­ children, as they trekked westward after the prairie surance is already being bought. The Pennsylvania Railroad schooners. is reconditioning thousands of cars to meet the needs of the The 8th of November was the day when the decisive new administration. Already the Governor has lowered the battle was fought. That great group of uncontrolled, retail price of milk to consumers in metropolitan areas, serious-minded people, the middle class, who can always showing his sympathetic attitude. Farmers are more opti­ be depended on when they act to act. rightly, went to the mistic and are purchasing much-needed equipment. Great polls and voted in their traditional manner, as their better gains in the electrical field are seen. judgment had directed them. And on Wednesday morning While it will be impossible to reduce taxes, as the new of November the 9th, when the smoke of the battle had Governor had hoped, because of the New Deal extravagance cleared away, the New Deal beast lay slain at the feet of in the last few years, Pennsylvania's industries are confi­ the modern David, the l'ed-headed breaker boy from Plym­ dent that the promise will be made good and the State's outh, Pa., and a new song arose in the Keystone State­ budget balanced in the near future, and have pledged to it was Forward Pennsylvania. Boys and girls playing on stand by and take it on the chin a little while longer. the school grounds were singing it. Housewives were And I want to say to you New Deal Members of the House humming it in the kitchens. Men everywhere were ex­ who are not coming back after 1940 I have taken this time pressing optimism and confidence that was based upon the in order. to give you the information you are going to need foundation _built by the pioneers. To us had been be- to carry back to your people. • J-939. .CONGRESSIONAL ~ECORD-HOUSE 1945 I want to say to you ·from the South~ome of you will be I do not think for one minute that the bund is repre­ here, I know-but take this message back to your poor, be­ sentative of the German people and I want the Members of deviled, poverty-stricken cotton farmers: Tell them that this House to know that the German people as I know them Pennsylvania has started a great movement that is rapidly in Wisconsin, and I live in a community which is pre­ gaining momentum that no force on earth can sto.p; that dominantly German in character, are among the finest cit­ the Republican Party is going into power again in 1940-that izens in the entire United States. There are no more hard­ party that set up the protective tariff and enthroned cotton working, frugal, intelligent people in this country than the king by that tariff; that tariff which has rested on your cot­ people who came here from Germany, who have been able tonflelds like a heavenly benediction for years and years and to assimilate our traditions and who have been assimilated made it possible for cotton and the South to find its place. in this country of ours, and who are real Americans. Tell them that the day is coming-and it will be here in 1940--­ Mr. CRAWFORD. Mr. Chairman, will the gentleman when the cotton farmers who have 10 or 50 bales of cotton yield? will again have money enough to buy a cotton shirt, which Mr. KEEFE. Yes; I yield. they do not now have. · Mr. CRAWFORD. I wish to add to the gentleman's state­ And you New Deal Members west of the Ohio to the Missis­ ment that throughout my district we have numerous German sippi River who are not coming back here in 1940, tell your communities, and I subscribe to their character and integrity good people out there that they should hold on and stand by. and Americanism just as the gentleman has with respect to Tell your corn and hog raisers that the Nation will again use the Germans that reside in his State. pork and lard produced in the United States of America. Mr. KEEFE. The thing I fear, Mr. Chairman, is that there And you New Deal Members in the Missouii River Valley, will be upon this fioor, as a result of a proper provocation, tell your farmers, as you join their ranks, that Pennsylvania perhaps, or the continuance of such meetings as were held in has started something that is going on. Tell them to feed New York, inflammatory speeches that will bring discredit the cattle and take care of calves-the Nation is going to eat upon the German people who are not entitled. to receive any beef again one of these days-and it is going to start in a big such discredit. way in 1940. Mr. ENGEL. Mr. Chairman, will the gentleman yield? And you New Deal Members from the Rocky Mountain Mr. KEEFE. I yield to the gentleman. States, tell your sheep herders we are going to be wearing Mr. ENGEL. I served as an officer in France in the Thirty­ woolen suits again. They shall not let the flocks go to pieces. second Division, which was a Michigan-Wisconsin division, Tell your cattlemen to raise calves-the Middle West is going and also in the army of occupation in Germany. That divi­ to feed cattle again. sion received 3,000 replacements in 3 days. During the occu­ And you New Deal Members on the Pacific coast, tell the pation in Germany we had a banquet of officers of that boys out there that we of the East are going to visit them, division, and on the same program the names of the officers of and we will leave a lot of money there, and there is a better the division were printed, many of whom came from Wiscon­ day awaiting them. We are not afraid of your six-shooters, sin-Rhinelander, Milwaukee, and elsewhere-and 60 percent and we are not afraid of your women, but we will not come of the names on that program of officers who served in that unless they get rid of that hell raiser, Harry Bridges. division in France against Germany had German names. ·· Now, Mr. Chairman and Members of the Committee, I have Mr. KEEFE. I thank the gentleman. May I state this been· prompted today to set fcirth these facts because the New further. I am beginning to wonder what has become of these Deal has the Nation on the brink of a mighty precipice, and in people who just a short time ago were so loud in their praise, fear, horror, and distress. We find our people not knowing vocally or secretly, of the Soviet Government of Russia and whither they are going. the communistically inspired organizations that there are in I have presented these facts to you in the earnest hope that this country today. I have seen meetings held in this coun­ they will be heralded throughout the land and that men will try under the guise of patriotism that were conducted by com­ take on new courage, buckle up their belts, and renew their munistic front organizations, where the ideals of this country faith in democracy, and, with confidence in themselves and of ours were torn to shreds, and its fiag trampled upon. I their fellow men, be in a position to enjoy the blessings that failed to hear these gentlemen who are now telling about the are going to be made possible by that parade that has been bunds getting on their feet and condemning that type of started in Harrisburg, headed by the red-headed breaker organization. I want it said that so far as I am concerned boy, and which will in 1941 carry him into the White House. I condemn both of them, and I think it is high time that we [Applause.] · do not just simply transfer our attention from the commu­ Mr. TABER. Mr. Chairman, I yield 10 minutes to the nistic party to the bund, but that in the speeches which are gentleman from Wisconsin [Mr. KEEFEL made on the floor of this House we condemn in no uncertain Mr. KEEFE. Mr. Chairman, I want first to express my terms both those types of organization that are un-American very sincere appreciation for the very splendid timely re­ ·and contrary to the ideals and traditions of this country. marks of the distinguished gentleman from Texas [Mr. [Applause.] I despise any organization of that type, and it LANHAM]. I quite agree with what he said, and while it seems to me, Members of the Committee, instead of our may be that some people will say that it is the recital of standing up here and· mouthing our patriotic sentiments, a platitude to rehearse the glories of this great Nation of instead of standing here from day to day and week to week ours, it seems ihat in view of the tendency of modern times and month to month condemning the activities of organiza­ we cannot reiterate too often the opportunities and the tions such as I have described, it is high time that we as advantages that America has to ofrer against the world. I Members of Congress do something about it. Why is it possi­ am afraid, however, that some of us in our zealousness to ble that in America the Communist can stand on the plat­ preach patriotism may, at some time, unthinkingly and un­ form and condemn and seek to destrey the very principles of wittingly, refer to some of our citizens in a manner that I this Government? Why is it that representatives of the consider highly improper. bund are permitted to stand on the platform and give I recall very distinctly at the time we were approaching vocal expression to the ideas given up in New York the other our entrance into the World War that people of German day, and that all we do is to talk about it and try to tell descent in my State were hounded and driven under sus­ the people of the beauties and glories of Americanism? picion, in a manner that was unbecoming this great country I say to the Members of this Committee that it seems to me that we love so much. Today, in this country of ours, be­ that the time is here now when we ought to begin to be cause some little minor group has banded together under the responsive to the wishes and demands of the people of Amer­ name of "the bund" and held meetings throughout the coun­ ica. The time is here now when we ought to do something in try that we all despise, perhaps, and condemn, let it not be the shape of real legislation to bring relief from the intolerable said that the bund, or any_ other organization of that conditions that give rise to such organizations. [Applause.] character, represents the true character of the German peo­ What have we actually done aside from just administering a ple whom I have known and lived among my entire life. temporary injection in the arm of the working people in ~--123 • 1946 CONGRESSIONAL RECORD-HOUSE FEBRUARY 27 America? What are we doing for the farmers instead of was appropriated out of this authorization. On March 28, merely talking about them and standing here and mouthing 1938, $11,000,000 more was appropriated, and on June 21, weasel words to them? What are we doing that evidences 1938, $25,000,000 additional was appropriated, making a that this Congress intends to solve these domestic problems? total of $59,000,000 appropriated from the authorization of The bills that have been introduced by Members of this House $130,000,000, as a result of both acts of Congress. Thirty lie locked up in committee rooms waiting the will and caprice million dollars is asked for in the pending bill to be ex­ of the majority side of this Congress to bring them out into pended during the fiscal year 1940, making the appropria­ the open and do something for the people of America. tion $89,000,000 out of the authorization of $130,000,000. I am happy to state, and I address my remarks to the Dem­ In view of the fact that this bill is simply carrying out ocratic side of the House, that I saw in the paper this morning the provisions set forth in House Document No. 177, it is that the Democratic administration has finally determined high time this Congress increased this appropriation of $30,- that the course they have pursued for the last 6 years is finally 000,000 for the needed post-ofllce buildings throughout the found to be wrong, and that from now on we are going to territories which have not, in my opinion, been treated have no more reforms. They say we are going to have prog­ properly. . ress and recovery with full steam ahead for business. The Mr. COCHRAN. Mr. Chairman, will the gentleman yield? President himself timed his remarks addressed to the two Mr. O'CONNOR. I yield for a question. captains of labor, Mr. Green and Mr. Lewis, with those of the Mr. COCHRAN. The gentleman knows that the Congress Secretary of Commerce delivered out in Iowa. eliminated the."pork barrel" in public buildings by setting up They are beginning to scatter the propaganda to the the Building Commission. What the gentleman speaks of is people of this Nation that they really need business after the result of the work of the .Building Commission. Under all-business that has been hamstrung. Business designated the provisions of the act setting up the Commission it is as "Bourbon," "blue blood," "these economic royalists." With necessary to qualify in order to get a post ofllce. The mere business hamstrung with taxes, with every sort of punitive fact that a Congressman wants a post-ofllce building in his legislation, these "plutocrats," these "economic royalists," are district now does not get him the post office. now being called upon to arise and shake off these shackles Mr. O'CONNOR. Please do not take up all my time. and go to work because they are the only ones in America, so Under the provisions that were adopted, wherever the postal Mr. Hopkins finally concludes; and so the President finally receipts exceeded $10,000, that city is qualified. The State concludes, who can bring employment to America and put of California, for instance, has suffered. The State of Mon­ these idle people back on the pay roll. I say to you Members tana has suffered. I want you to compare those States with of the Democratic side that I hope the President means the gentleman's own State of Missouri, as shown by this what he says; I hope Mr. Hopkins means what he says; I House Document 177, and see how it has gotten alo;ng . . I hope that they intend to embark upon a sane course of want the Members of Congress who have in mind trying to recovery. I hope that they have finally determined to get post-office buildings in their respective districts, to study renounce the destructive, unworkable parts of their program the provisions of this House Document 177. It will show which has resulted in the staggering debt that is paralyzing how some of the States have gotten · nearly all of their business with taxes and threatens to bankrupt the entire needs, and others very few buildings. I say to the gentleman Nation. But I say to you that, so far as I am concerned, from Missouri [Mr. CocHRAN] in my own State there were there will have to be something more than just mere words. 18 eligible cities a year ago. Under the operations of the Why do you not repeal the iniquitous undistributed-profits said act passed in 1937, it will take 51 years before the tax? Why do you not put a curb on Mr. Hull, with hiS people of my district are supplied with buildings now urg-_ reciprocal-trade agreements that are killing our domestic ently needed for carrying on the business of the United industry? Why do you not recall the nomination of Thomas States Government in the form of post offices. · R. Amlie to the Interstate Commerce Commission? Why do Mr. COCHRAN. I have complimented the gentleman from you not do one of the thousand things that could be done by Montana on several occasions for getting things done for his legislating through the acts of this Congress, and telling the constituents, and I compliment him again. No Member of people of the country that you mean what you say? You the House works harder for his people. My . district is part promised us the abundant life many times before, Mr. Roose­ of the city of St. Louis. All that I have been able to get for velt, and you have gone the other way. I cannot believe that my district is about one-third of a post ofllce, a branch post you mean exactly what you say when you say that you are ofllce. That new branch post ofllce covers territory about going to give business a chance to recover. We want recov­ one-third of which is in my congressional district and two­ ery; and as one Republican, if the gentleman in the White thirds in another congressional district. House or in the Department of Commerce would offer a Mr. O'CONNOR. I want the Members of Congress to see constructive program that will do something for business, for how the State of Missouri has gotten along, the State of Ala­ labor, for agriculture, and for the aged, I will support it and · bama, the State of Georgia, the State of Arkansas, the State get behind it with everything that I can and stop bickering of Tennessee, and the State of Kentucky. Texas has not about it. Let us get down to work and do something; jerk done so well, but as far as California, New York, Montana, some of these bills out of the committee and bring them here and Nebraska are concerned, they have all suffered. and let us get this Government of ours started toward real I want to acquit the committee of any neglect or criticism 1·ecovery. [Applause.] in that respect, because I think they have tried sincerely to Mr. LUDLOW. Mr. Chairman, I yield 5 minutes to the carry out what they considered an equitable distribution of gentleman from Montana [Mr. O'CoNNOR]. the amount authorized during the 3 years as provided by the Mr. O'CONNOR. M. Chairman, my purpose in asking act of 1937. [Applause.] for time today is to analyze this bill with respect to the [Here the gavel fell.] appropriation provided for post-office buildings. Mr. LUDLOW. Mr. Chairman, I yield 5 minutes to the You will notice on page 51 of the bill it provides for an gentleman from Arizona [Mr. MURDOCK]. appropriation of $30,000,000, but as I construe that appro-· Mr. MURDOCK of Arizona. Mr. Chairman, a moment ago priation, in· the light of former enactments of Congress, I I wanted to interrupt the gentleman from Illinois [Mr. do not think it provides for the construction of a single DIRKSEN] long enough to display something and ask him a new post-ofllce building during the coming fiscal year. It question. While he was speaking I needed to step down to simply provides for the completion of the construction of the ofllce of the Sergeant at Arms to get a little of '.'what buildings for which allotments have already been made. makes the wheels go round," and this green paper is what the The act of August 25, 1937, authorized an appropriation Sergeant at Arms handed me. I would like to ask whether of $70,000,000 for public buildings outside of the District of other Members of the Committee are not also glad to get Columbia. The act of June 21, 1938, authorized an addi­ occasionally this same sort of thing from the Sergeant at tional sum of $60,000,000, making a total appropriation for Arms? Is this money? I certainly so regard it. I notice the purpose $130,000,000. On August 25, 1937, $23,000,000 that this $5 bill and this $1 bill that I have before me are 1939 CONGRESSIONAL RECORD-HOUSE 1947 marked "silver certificate." The gentleman from Illinois a lot of slipshod banking in those days. Many of these bank [Mr. DIRKSEN] . said we have been buying a lot of silver and notes were not well secured and became known as wildcat burying it in the ground, absolutely useless. I do not regard notes~ One of the great evils at that time was a monetary this paper which represents that silver as useless. I did not system in which "bank managed currency" was allowed to discount this bill one bit. I took this $5 bill as worth $5, and run riot and do much harm. I fancy you do the same thing. During the great struggle between the North and the Now, as a matter of fact, we have been buying silver. I South, greenbacks were issued; and thus we substituted a notice that we have now about $1,600,000,000 outstanding in governmentaJ. currency for the preceding bank currency. At silver certificates. I feel that issuing such certificates against the same time we reformed the banking system by the Na­ this silver is a perfectly legitimate and wise function in our tional Banking Act of 1863, which gave the country a new monetary system. At the last session of this House last week kind of bank currency which at least was far superior to the the gentleman from New York had a great deal to say both bank currency which had prevailed during the preceding 20 about the purchase of domestic silver and foreign silver. At years. For about 20 years after the war there was a fierce that time on last Friday I attempted to differentiate between conflict between those who favored a governmental cur­ the two ideas. I want you Members from the South, who have rency, such as United States Treasury notes, and those who a surplus of cotton and would ·like to dispose of it, to think recommended bank currency represented by national bank along this line-we may be able to sell more cotton abroad notes. The advocates of the bank currency were qUite suc­ if we can sell to those countries which have a silver basis for cessful over their opponents in spite of the fact that the their money system. Why should we not exchange our sur­ national-bank currency was based upon an interest-bearing, plus farm products for foreign silver? bonded debt, and was not sufficiently elastic in character to I ask you if it is not a good policy for us to take foreign serve the needs of business. The financial interests pointed silver for our surplus cotton, for our surplus wheat, and for out the fiat nature of greenbacks and contended that they our other surplus commodities if we can do so? This, how­ were inadequate for our financial needs, in spite of the fact ever, is not the reason I rose. that they represented a non-interest-bearing obligation of the I rose primarily, Mr. Chairman, to say that it is plainly Government. Thus while the "battle of the standards" raged evident to me that this age-old battle, between those who between gold and silver, which had been the money of our want a certain kind ·of money and those who want a different fathers and in which silver lost by being demonetized, an kind of money, continues with increasing intensity down to equally fierce battle raged between the currencies. this very moment. In the few minutes allotted to me I can­ The banking element succeeded in getting more .and more not go adequately into the monetary policy. I wish I could. control over the money supply of the country. Those provi­ One Member who stood in this Well this morning contemptu­ sions of the Constitution were lost sight of which read as ously spoke of "a managed currency." I ask that gentleman, follows: '1 Congress shall have power to coi)1. money and reg­ Who now manages the currency? Who has been doing so? ulate the value thereof. No State shall make anything but If it is a managed currency on the part of the Government gold or silver a legal tender in payment of debt." Thus it perhaps in his eyes it is contemptible. But what is the al-· came about that we got a money system closely regulated terriative? The alternative is a currency managed by the and controlled by the banks' which, in mY judgment, put banks. We have had a great banking history. No country • relatively too great a value on gold and which gave too great on earth, not even England, has had a more unique and a control over the volume of our money to the banking fra­ interesting banking history than has the United States of ternity. Perhaps we ought to be grateful that our money America. This holds true of our metallic money history as system from 1863 to 1913, under the national banking struc­ well. I wish I had time to go into it more fully. · ture has been as well managed as it has been. However, Let us first look at our metallic money or coinage history. there is a difference of opinion on that point. One hundred years ago we h,ad no mint and felt the need of r have been inclined to regard myself as a "sound-money establishing a system of coinage, so that was done in the man" and I have not cried out much against this usurpation administration of the first President. We are told that of sovereign function on the part of American banks. I George Washington took a great interest in the niint and realize that there must be a greater volU.me of money 'than that Alexander Hamilton and Thomas Jefferson made im­ can be afforded alone by the two precious metals or by paper­ portant contribution to our coinage scheme. At first it was money representatives of the two precious metals. I ani also. contemplated that the dollar should be made either of gold aware of the fact that the volume of money ought to vary or of silver and that the legal or mint ratio should be 15 to 1. from time to time and that a money based exclusively on Why was that ratio adopted? Because for many years the gold and silver might not vary enough to meet business market ratio of gold and silver had been 15 to 1. Paul needs. Accordingly, I have looked with complacency upon Revere was a goldsmith working With the precious metals, the banks furnishing an elastic currency based upon the and his fathers before him for several generations had been requirements of business. Yet I do think that it is a dan-· workers in the precious metals. It was found when our mint gerous power 'to put in the hands of a business class whose was established that an ounce of gold was worth as much as interest might not always square with the general welfare 15 ounces of silver, approximately, and that that market and public interest. I am not at this moment advocating ratio had prevailed for a long time. Accordingly, our first an entirely new money system, for that is an unusually laws provided for a mint ratio to correspond with the mar­ difficult matter and one in which we must make gradual ket ratio of 15 to 1, and such it remained until about the progress. year 1834, as my memory serves me. One reason why technocracy has not made a wider ap­ A little over.100 years ago the mint ratio was changed and peal to our people, in my judgment, is that it speaks in made 16 to 1, which it has remained to this · present time. terms of a scientific exchange scheme which the ordinary, This change was necessitated by a fluctuation in the market citizen cannot understand. It is worse than attempting to price of the two precious metals. With the. violent fluctua­ change the "mother tongue" ·for our citizens when you try tions in the market price of _the two precious metals, espe­ to change and ·substitute something else for the "dollar of cially of gold about the year 1849 with the discovery of gold the daddies." I say the American people want to retain in California and elsewhere, and especially of silver about our coinage system, including both gold and silver, and I am. 10 years later with the discovery of the great silver mines ill sure we are foolish to move as some of the gentlemen have. our West, it seemed probable that we could not have bi­ suggested here today. Really it is a matter of degree. I d<>: metalism with such fluctuations. Meanwhile our country not demand that gold and silver or their representatives be. turned more and more toward paper money. used solely, nor that they be used only for subs~diary coins, One hundred years ago banks were increasing in number· but that both shall lia.ve a larger part to play in our whole. and just prior to the panic of 1837 bankS were furn.ishiilg. monetary scheme. .Of oourse, the .compleXity and the im­ most of our currency in ~ form of. ~nk notes. There was. mensity of our Ameri~ _ ~I?-~~ and bus~e~ life today: 1948 _CONGRESSIONAL R~CORD-HOUSE FEBRUARY 27 may require something more now for our country than the patriotic and law-abiding American citizens and can be de­ coinage scheme established by the fathers plus the govern­ pended upon to oppose communism, nazi-ism, fascism, and mental currency which later came into use. However, I am all subversive and un-American activities. here to warn the banking interests that the mass of Ameri­ Mr. LANHAM. Mr. Chairman, will the gentleman yield? can people are getting more and more hostile to the control Mr. FISH. I yield. of money and credit, this vital necessity of industrial life, Mr. LANHAM. Inasmuch as I made a talk today with by a small class of private citizens. Our monetary system reference to Americanism and referred to the meeting re­ exists for the benefit of the American people and not for cently held in New York, I would like to get in the RECORD, in the enrichment and power of a few. connection with my remarks, the fact that I realize all our I am not inclined to look with favor upon some of the ancestors came from some foreign land. There are patriotic freak money proposals which bob up eternally, but I do American citizens today whose fathers-and many them­ believe that if the precious metals, gold and silver, prove to selves-who came from every country of the world. We are be inadequate as a base for our money system and that our all in sympathy with them. We are out of sympathy with ntoney and credit cannot fairly and safely be furnished by those who are not in sympathy with America. our banks under close supervision of public authority, then Mr. FISH. Mr. Chairman, I rise today to an unusual role in we shall get something else. We may have a new money the House of Representatives and possibly in the country. I system where the dollar will be backed by commodity value­ happen to represent the district from which the President of not the commodity of gold or silver, but several hundred the United States comes. I have probably been foremost commodities vital to the American people. I urge an im­ amongst those who have criticized his policies, and I have provement of the system that we now have rather than a repeatedly pointed out the failure of those policies. But last foolish clinging to a part of our present scheme to such an week at a Washington's Birthday celebration the Nazi bund, extent as to bring on a complete change in our present or German-American Bund, which aims to destroy American monetary plan. liberties, our free institutions, and our republican and con- · Since 1913 we have had a peculiar kind of managed cur­ stitutional form of government, met in Madison Square Gar­ rency, and that is the kind the gentleman from Illinois den in the city of New York. Their spokesmen abused and favors when he would abolish this kind of currency-silver vilified the President of the United States. They called him certificates and, no doubt, greenbacks. I submit to you that "President Rosenfeldt." They attacked him viciously. I want we are going to have some kind of managed currency. What to say as the Representative in Congress from his district, the kind do we want? Since the Federal Reserve Act was passed district where he and his family have lived for over 200 years­ we have put in the hands of a small group of men the very and President Roosevelt and his family have lived in this important function, that is regulating the volume of the cur­ country for nigh on 300 years-that when it comes to Nazis rency we have for use. We say that it shall be managed or hyphenated Americans heaping personal abuse and vilifi­ according to business needs. There is inflation at times and cation on the President of the United States, I, as a Repub­ there is deliberately planned defiation at times. I submit lican, resent such slurring attacks and openly denounce them. that this country has su:tiered terribly from these surgical [Applause.] That is a typical example of Nazi insolence. operations known as defiations. Every one of these Nazis know that if he attacked Hitler or Mr. TABER. Mr. Chairman, will the gentleman yield for any man in authority in Germany, he would lose his head a question? overnight; yet, taking advantage of our free institutions, these Mr. MURDOCK of Arizona. My time is about up. Nazis-just as bad as the Communists-seek to destroy our Mr. TABER. Does the gentleman consider that we are in free institutions, including freedom of speech, of the press, a deflationary period right now? and of assembly. They meet in public under the protection of Mr. MURDOCK of Arizona. I have reference to the defla­ our laws and use scurrilous and insolent language against the tionary period that followed the great infiation of the World President of the United States, who has been elected by the War. There have been others, too, for that matter. people under our free institutions. [Here the gavel fell.] We Republicans will continue to attack the policies of Mr. TABER. Mr. Chairman, I yield 1 minute to the gen­ President Roosevelt, we will continue to expose his unsound tleman froni Tennessee [Mr. TAYLOR]. and radical policies, but we will not resort to personal abuse Mr. TAYLOR of Tennessee. Mr. Chairman, a moment or to mud-slinging attacks upon the President of the United ago the gentleman from Montana in his address to the com­ States. mittee was interrupted by the distinguished gentleman from I want to call to the attention of the House a little book Missouri [Mr. CocHRANi with the statement that the Demo­ entitled "Secret Armies" that is now being circulated in the cratic administration should have the credit for changing the House of Representatives and in the Senate. old "pork barrel" system of constructing public buildings in This book, of course, is aimed against the Nazis, but when this country. I am sure the gentleman from Missouri made an attack is made upon the Nazis we must look at who is this statement inadvertently, because he must know, being making the attack. The book is written by a man by the so familiar with the departments in Washington, that he is name of John L. Spivak, who Writes for the Daily Worker, a incorrect in making that statement. The change from the Communist newspaper, and that kind of propaganda is just old "pork barrel" system to the present system took place as bad as Nazi propaganda. during the administration of Calvin Coolidge, in 1925. Prior Mr. GEYER of California. Will the gentleman yield? to that time, post-office buildings were located according to Mr. FISH. I yield to the gentleman from California. the whim of the Congressman a:tiected, but since 1925 Mr. GEYER of California. May I say that I am of Ger­ buildings have been located on a showing of the greatest need. man descent, both on my father's side and on my mother's This change from the "pork barrel" to the merit system was side, so far be it from me to say anything against them as a great reform and credit for it belongs to the Republican a people. However, I happen to have a copy of this book, Party, and not to the New Deal. which was sent to every man by Walter Winchell with the Mr. TABER. Mr. Chairman, I yield 5 minutes to the request that we read it. I think there is much in there we gentleman from New York [Mr. F'IsHJ. might look at. He mentions our own $100,000 Dies com­ Mr. FISH. Mr. Chairman, I listened with much interest mittee. It might be well if we read this, and if the man is and approval to the remarks of the gentleman from Wiscon­ not telling the truth we should find out a little bit more sin [Mr. KEEFE] and particularly to his denunciation of about the matter. Nazi activities and propaganda in America and his high com­ [Here the gavel fell.] mendation of Americans of German origin. I think we are Mr. TABER. Mr. Chairman, I yield the gentleman from all agreed, whether we be Republicans or Democrats, that New York [Mr. Fisal 1 additional minute. people of German descent in America are among our most Mr. FISH. Mr. Chairman, in answer to the gentleman, loyal and industrious citizens. Wherever they may be found, may I say that I believe that Walter Winchell is a patriotic in the North, East, South, or West, they have always been American citizen and had only the best intentioll3. I do not 1939 CONGRESSIONAL RECORD-HOUSE 1949 believe Walter Winchell has the slightest idea that this is am personally concerned I am delighted to know tllis careful Communist propaganda. I have . no objection to anyone study is being made by a special committee. I simply want reading the book and, getting th~ Communist side as well to get a few of tbese _facts before the Members of _the House as the Nazi side. My own attitude is a plague on both their so _that they may_further look _into the matter. activities and propaganda. · Mr. MURDOCK of Utah. I did not imply-that the gentle­ I have introduced a bill in the House of Representatives man was making a back-door attack, but I am sure this type that should wive the support of both sides of the l;louse. This of attack-is being made during the consideration of an appro- bill prohibits the armizlg: _drilling, and. disciplining of all for­ priation bill. _ . . eign groups, the Nazis, Communists, and Fascists. [AP­ Mr. CRAWFORD. If such an attack is being made, Ire­ plause.] The way tO ·stop_ this ~opaganda, this arming, gret it,.because I know that this is an exceedingly important drilling, and goose-stepping is to nip it in the bud, because subject which the Members of the H;ouse will have to give if we do not stop it now, Wf} will have private armies o~ Nazis attention to, either before we adjourn the present session or and anti-Nazis, Comm~st~ and anti-Coll_lmunists, and labor before we finish the Seventy-sixth Congress. . and anti-labor gro~ps waging private wars_ thr~mghout the The remarks made a few minutes ago by the gentleman Nation. So I ask the Democrats and Republicans, particu­ from ·Arizona with reference to exchange of cotton for silver larly those on ·the coinmittee to which the bill has been are something I wish to comment on for a moment before referred, to report it to the House and give us a chance. to yielding further for a question, because it may develop one or enact it into law. [Applause.] two additional thoughts. [Here the gavel -fell.] " . . If we break down the importation of silver under the Mr. McLEOD. Mr." chairman, I Yield io minutes to the Executive order and the Silver Purchase Act, and deter­ gentleman· from Michigan [~.CRAWFORD]. mine the amount of goods actually traded thereunder for Mr. CRAWFORD. Mr. Chairman, a dist~ed writer silver, we will find it is a negligible amount of goods thus once made the remark, "Uneas:y lies the head that wears. a traded. As a matter of fact, if we go a step further and con­ crown." May I add, that statement applies whether it be sider the dollar price paid for silver, we may find, as I know made of silver or of gold. we would, that ii we carried out the gentleman's suggestion On December 21, 1933, the President issued an Executive made a few moments ago with reference to trading cotton order in connection with the silver-purchase _program. The for silver, the other countries would hold the valuable prod­ objectives, as I understand them, of the Executive order and ucts and we would hold the silver. The value of the silver in the Silver Purchase Act were the stabilization of prices of the long run may prove to be very little--probably no more products internally, the protecti.on oi the dollar exchange, the than its actual commercial use value, and far below present promotion of trade with other countries, and, no doubt, there dollar value. was also an element which goes into the conception of the Mr. MURDOCK of Arizona. Will the gentleman yield? "good neighbor" policy. I personally feel that all of these Mr. CRAWF'ORD. I yield to the gentleman from Arizona. objectives have failed, and I think most of the Members of Mr. MURDOCK of Arizona. May I eali attention to the the House Will agree with me in that statement, because we fact that I qualified my previous statement by saying "if we know today that the price level is not anything like what we ean exchange cotton for silver, it might be a wise policy." would care to have it. This is somewhat evidenced by a bill Does the gentleman, in wishing to repeal the Silver Purchase introduced only a few days ago, S. 1057, by Senator THo~ Act, desire that we shall be entirely and virtually on a paper­ of Oklahoma. one of the objectives of which is the regulation money basis? If so, what kind of paper money-bank cur­ and stabilization of agricultural and commodity prices through rency or Government currency? the regulation and stabilization of the value of the dollar. Mr. CRAWFORD. I may say to the gentleman that in I think the whole situation is more clearly evidenced by the first place I have not advocated the repeal of the act. I statements inade witliiri. ·the last few days by the Secretary of called attention to the bill S. 785, which has been introduced, the Treasury, Mr. Morgenthau, and by the Secretary of Com­ looking forward to the repeal of the Silver Purchase Act, merce, Mr. Hopkins, as well as by a statement made by the together with the sale of silver under certain conditions and Chief Executive at his press conference the other day before with certain reservations, whi-ch would, as I understand the he went on_a trip to the Caribbean .Sea. ·It is further evi­ bill, take care of the silver certificates issued. I suggest a denced by the f~ct that business in this country is some fifteen very careful study of the proposal to repeal the Silver Pur­ or twenty-five billion dollars per annum below what we have chase Act, and especially by those_ who represent silver­ every reason in the world to expect it should be. producing States. ·I do not ·feel that the people of this coun­ Another bill was introduced the other day by Senator try \yill continue to support the administration in its present ToWNsEND_, ·s. 785, to repeal the Silver Purchase Act of 1934 pr~am. We do not need the silver that is being imported. and to provide for the sale of silver, and for other purposes. We are ·paying a price far tQO high for tbe silver we are pur­ I am enumerating these bills today so that the Members of chasing. - We are diluting our currency. . We are stimulating the House may take occasion to sectire copies and study the unnecessarily the production of silver throughout the entire bills in connection with hearings that are now being con­ world and at the same time maintaining an artificial price ducted in the Senate on Senate Resolution 187 by a special on silver which prevents its commercial use in the quantity committe on investigation of silver, United States Senate, the world should be consuming. Merely piling up silver in Seventy-fourth Congress, first session. the vaults of this country will eventually lead to a "silver Mr. MURDOCK of Utah. Will the gentleman yield? debacle" as serious for silver producers as that now faced by Mr. CRAWFORD. I yield to the gentleman from Utah. the cotton producers of the South. If the silver was going Mr. MURDOCK of Utah. Does not the gentleman from into consumption as rapidly as produced, that would be an Michigan believe that to consider the silver question and entirely different proposition to that which now governs. direct legislation, whether it be repeal of the Silver Purchase The _taxpayer will eventually rebel in a most understandable Act or not, is a far more intelligent and a much more emcient manner. way to determine the badness or goodness of the silver ques­ Mr. MURDOCK of Arizona and Mr. CHASE of South Dakota­ tion than the back-door attack that is now being made on it rose. in connection with an appropriation bill? Mr. CRAWFORD. I will yield in just a minute. Mr. CRAWFORD. I agree with the gentleman in some Let me say that I believe in subsidizing American industry, respects, but I disagree that this is a back-door attack insofar whether it be the peanut industry in the Southeast; the as I am personally concerned. That is the reason I am cotton industry of the South; the silver industry of the West; tying up the whole proposition together; the Senate bills and the sugar industry of the West, or the South, or the Middle the hearings on the appropriation bill now under considera­ West; the manufactures of New England and all other sec­ tion and also those hearings which the gentleman has been tions; the maple sap of New England; and so on down the attending I believe by special invitation, along with repre­ line, "provided it is done on a proper basis"; but let me assure sentatives from other silver-producing States. So far as I the gentleman that I do not believe it is a proper procedure 1950 _CONGRESSIONAL RECORD-HOUSE )fEBRUARY 27 when we subsidize the demonetization of the silver produced Those of us who believe the Federal Alcohol Administration in-other parts of the world. I believe that is exactly what is doing a very necessary and vital work feel that somewhere we are doing under the Silver Purchase Act insofar as it along. the legislative line, perhaps in the other body, the applies to silver produced in other countries and sent to this original appropriation should be restored or perhaps even country. increased. I do not care whether the sympathies of the As an illustration, let me read this testimony by Senator Members are with the prohibitionists or with those who are KING, given the other day before the Senate Special Com­ more liberal. They must recognize that the F. A. A. is doing mittee on the Investigation of Silver. The Senator is quoted a unique and valuable work. This organization, which was as having sajd: created through a bill reported from the Committee on Ways I recall going to see the Secretary of the Treasury and telling and Means some years ago, was brought into existence for him that if I were he I would not buy silver for a little while, the purpose of stamping out the chiselers in the alcohol in­ pecause they were speculating. When I was in Shanghai and dustries, of promoting fair trade practices, and protecting the when I was in Tokyo, I learned that the Japanese-! will not say the government, but the Japanese-were speculating in sil­ consumer. There is no other organization that can run down ver, taking it out of China, transshipping it to London and then those who manufacture fake wines, adulterated and mis­ to the United States, and we got a large quantity of Chinese branded whiskies other than this particular Alcohol Admin­ silver as a result of speculation. Then Sir Henri Deterding took istration. 60,000,000 ounces which he had on deposit in China or in India, he shipped that to the United States, and we became the bene­ To do this it is necessary that a staff of competent inves­ ficiaries of that silver. tigators be supplied and that they be paid sufficient salaries Is not that a fine predicament for us to get into? to overcome any offers in the line of temptation that may be · It was my privilege to be in Canton, China, the day the presented to them. At the present these investigators must people were coming to the banks, turning in their silver all operate out of Washington, because they may have to run Under the Chinese Nationalizing Act, and taking back Chi­ down adulterations in Boston one week, violations of the law nese paper currency. I transferred some silver, myself, and in Chicago the next, and in San Francisco the third. Re­ have the Chinese paper currency in my desk at the office. gional centers have not been established out of which these There we were, through speculating procedure, teetotally investigators may work for the reason that Congress has not destroying the entire internal economy of the Chinese Re­ appropriated money other than to maintain the central office public and fertilizing the soil for the depredations which at Washington. There are 27 investigators, and they cover are now being carried out against the Chinese people by the the entire United States -out of the Washington office. The Empire of the Rising Sun. subcommittee has explained that they feel traveling expenses of these investigators are too high; but it is because of the I now yield to the gentleman from South Dakota. fact that there are only 27 of these investigators covering the Mr. CASE of South Dakota. Would the gentleman from entire United States that the traveling expenses must be run his study of this question be able to say whether China or up. The only way you can cut down these traveling expenses Japan has been more subsidized by the extension of our legitimately and protect· the honest manufacturers of beer, silver purchasing to foreign silver? wines, and liquor, who are trying to live up to the provisions Mr. CRAWFORD. Without qualifying as an expert, I of the Federal laws, is by giving more money to the Federal would give it as my frank opinion that Japan has reaped the Alcohol Administration to establish regional offices where reward and China has been harmed. they should be established and assign them permanent inves­ Mr. MURDOCK of Arizona. Mr. Chairman, will the gen­ tigators who can work and cover their own territories without tleman yield for a question? _ transcontinental travel being involved. I submit that this Mr. CRAWFORD. I yield to the gentleman from Arizona. should be done, and before this bill is enacted into law the Mr. MURDOCK of Arizona. If I may make just one state­ old appropriation should at least be restored, and, in my ment before I ask the question, I should like to say I am no opinion, be increased. more in favor of the sort of thing the gentleman has just [Here the gavel fell.] mentioned than he is. Mr. TABER. Mr. Chairman, I yield 5 minutes to the gen- lVll". CRAWFORD. I am sure the gentleman is not in favor tleman from Michigan [Mr. McLEonJ. · of it. Mr. McLEOD. Mr. Chairman, the legislative branch of · Mr. MURDOCK of Arizona. We had an extensive buying the Government, from all intents and purposes, is again func­ program back in 1878 under a silver-purchase act--the tioning independently as it was designed to function. Since Bland-Allison Act--and again in 1890 under the Sherman its inception on January 3 last, the Seventy-sixth Congress Silver Purchase Act. Does the gentleman know whether the has impressed the country with its individuality and inde­ silver we bought under the acts of 1878 and 1890 was not pendence. It is showing the country that the Congress again sold 20 years ago for more than it cost us? is ready to work and operate according to the Constitution­ Mr. CRAWFORD. I am informed it was not. It is also coordinately with the other two branches. However, Mr. my understanding that no other country in all history has Chairman, it appears that if the Congress is to work effec­ ever pursued a silver policy such as we have been and are tively it should not be subjected to unnecessary handicaps now following. So far the program has utterly failed. To especially relative to obtaining necessary information. continue it further will, in my humble opinion, bring us great · A governing administration should have a definite plan of trouble. I admonish the Members of the House to give the action charted and have complete specifications to support it. whole question most serious study in order that we may be However, if we are to judge by the testimony of the Secre­ able to avoid further mistakes in this connection. tary of the Treasury on the pending bill, this country is Mr. LUDLOW. Mr. Chairman, I yield 2 minutes to the wandering in a financial maze, guided only by men who do gentleman from California [Mr. BucKJ. not know where they n.re going and will not know where Mr. BUCK. Mr. Chairman, I desire briefly to call your they are when and if they get there. attention to the cut the subcommittee has made in the appro­ Faced with the most stupendous public debt in the history priation for the Federal Alcohol Administration. The com­ of this or probably any other country, the man who is at mittee has cut the appropriation to $425,000. It was my in­ the head of our fiscal department tells your Appropriations tention to ask that the previous appropriation of $450,000 be Committee that he does not have any opinion where the restored. However, when the point of reading the bill for danger point of such a debt is to be reached. ,. amendment is reached I shall not offer an amendment to Admitting a complete lack of knowledge as to that danger : that effect, because, in view of the scarcity of Members on point and even a lack of opinion as to whether we have or the floor and the lateness of the opportunity to present to a have not reached it, yet this cabinet officer tells the com­ ·majority of the committee the reasons for continuing the mittee that the administration is going to send the debt :Present appr"opriation, it is apparent to me this proposed l)igher and that it is going to ask that the ceiling of debt amendment would not carry. lim.it, set by the Congress, be raised a least $5,000,000,000. t939 CONGRESSIONAL RECORD-HOUSE 1951 That is in order that the mad spending of money, may this afternoon listening to the general debate, certain things ·continue. have been said on the floor here that I believe should com­ But the administration and the Secretary of the Treasury mand my attention by way of preface to my remarks, on are not going to accept the responsibility for the increased the bill. The gentleman from Texas [Mr. LANHAM], having debt if they can shed that responsibility onto the shoulders delivered a stirring and patriotic address on Americanism, of this Congress. prompted something that I shall mention by way of a preface Let me quote the answer which the Secretary gave to a to my remarks. This was followed by my colleague from question I asked him as to how much higher the debt could Pennsylvania the gentleman from York County, Mr. GRoss, go with safety: who, I believe, inferentially perhaps--the wish being the Well- father to the prophecy--sought to speak for the Pennsyl­ vania Germans. He said- I would like to say that my county was settled by Germans. I would not be worried to see tt go the other four or five billions Berks County, originally a shire and as shown on the map which is in the present Budget; and we are going to have to ask Congress, if you vote this money, to increase the Treasury's power given out by the Honorable SoL BLOOM as chairman of the to borrow another $5,000,000,000. United States Constitution Sesquicentennial Commission on Note what the Secretary said, "if you vote this money." the signing of the Constitution, extended from the Delaware Of course, it will be the fault of Congress. But the Secretary River to the Susquehanna River. Out of that have been will not say, and the admlnistration, when it goes to the carved two additional congressional districts, the one repre­ people, will not say, that a $5,000;000,000 Budget was necessi­ sented by my colleague on the north, Mr. FENTON, and the tated by spending schemes which the ~inistration rammed other by my colleague on the south, Mr. DITTER. through this Congress when the minority was so small as to To my county came Henry Melchior Muhlenberg, from be without adequate means of protest. , Germany, and married the daughter of Conrad Weiser. But let us get back to the danger point of public debt. The He was a minister of the gospel and preached at the Secretary says he does not know whether this additional five Old Trappe Church. He had three sons born there, and billions the administration proposes to pile on is going to when his eldest was 17 years of age it became a matter of bring us. to the brea~g point. And he says t\lat he plans concern to him where these boys should be educated. The "only to ask for an increase of five billions." ages of the other boys ranged from 14 and io. He determined Ordinarily we might be able to accept that from a Secre­ that due to lack of educational facilities at that early day in tary of the Treasury. But in the present state of. affairs in this country, he would send them back to Germany to attend Washington you or anyone else cannot tell from one day to the university at Halle. Of these three sons, the eldest was another whether the Secretary of the Treasury is actually John Peter Gabriel Muhlenberg, who did not conclude his running the Treasury. · studies, but joined a troop of dragoons and left his two And another fiscal official strongly indicates that the goal younger brothers in schooL The father, after some pains, ·in this game of "lifting the lid" is not going to be a ·$5,000,'- got him released and got him back to this country and ~ter 000,000 ·lift but a $25,000,000,000 lift. That is what the head he was ordained in the ministry and went to Woodstock, of the Federal Reserve Board says they are going to ·demand. Va., where he preached. At Woodstock, Va., that gentleman Billions, billions, billions. Always going up. Never coming from my congressional district and my home county, there down. How long can the American people take it? · became a contact of George Washington, Thomas Jefferson, When I asked the Secretary at the hearings if it were :Pos­ and of Patrick Henry, Richard Henry Lee, and all the rest of sible to ascertain with any degree of reasonableness how much the patriots of his era and locality. It is his statue which further up this debt could go without danger to the country, stands on the plaza of City Hall Square in Philadelphia, he said that he did not know and that he could not answer with cape and coat thrown back displaying his full uniform the question. of a major general. It was he who made the famous decla­ Not only does this high-ranking instrumentality of the ration at the conclusion of divine service: "There is a time present administration not know where the danger point is. of war and a time of peace, and now the time to fight has He does not even know if the danger point can be ascer­ come," as throwing back his clerical robe he stood before tained. This condition is a real sample of the truth to "the the large audience assembled, in a colonel's uniform, having problem of uncertainty" business is and has been faced with. given advance notice to his congregations of his farewell I am convinced that it can be ascertained. And this sermon. administration seems to be taking one way to ascertain it. He continued an intimate friend of Gen. George Wash­ The administration way is apparently to pass the breaking ington until the end. His brother Frederick, at the time he point. Mter that, after disaster has been brought upon the came back from Germany, having been educated and or­ entire country, then the administration can look back and dained as a minister, was preaching in New York and had possibly the several Cabinet members may then be able to to flee when New York was captured by the British Army. tell us just when we passed the breaking point. By that His other brother, Henry, was preaching in Philadelphia, time it will be too late for us to care any more than the and had to fiee when Philadelphia was captured. administration seems to care right now. It was he who, disguised as an Indian, went up to Trappe, It is inconceivable to me, however, that this Congress. in the upper end of what is now the district of the gentle­ which seems to be gaining back its respect for its duties as a man from Pennsylvania, Mr. DITTER, and very near where coordinate branch of the Government, is going to let the I was born, about 15 miles away, and his brother, Frederick, administration continue its program of advancing to the who had come back to Trappe to preach after he :fled from brink of .the financial precipice, with its eyes blindfolded. New York, was, too, called to his country's service. He was Now is the time to stop, look, and listen. Within the next the president of the Pennsylvania Assembly and later a few days I propose to submit to the House a program for Member of the Continental Congress, It was he who was ascertaining what the administration and its Secretary of ultimately elected the first Speaker of this House of Repre­ the Treasury either cannot or will not tell us. sentatives. He had gone to Lancaster to preach and there If the responsibile officials of the Government either are was elected to the Flrst Congress. Frederick Muhlenberg, ignorant themselves, or propose to keep us in ignorance of whose picture appeared yesterday in the press as the first the financial quicksands, then it is the duty of this Congress Speaker of the House, in connection with the one hundred of the people to find other means to ascertain the truth. and fiftieth anniversary of Congress, which will be cele­ [Applause.] brated in joint assembly on Saturday next, was of that same Mr. LUDLOW. Mr. Chairman, I yield 10 minutes to the sound, German extraction. It was his nephew, Henry gentleman from Pennsylvania [Mr. MosER]. Augustus Muhlenberg, whose father fled from Howe at Phila­ Mr. MOSER. Mr. Chairman, having in mind .to address delphia, clergyman, Congressman, and first Minister to myself to the subject of the bill and being in the Committee Austria, who, as a. stanch supporter of President Jackson. 1952 _CONGRESSIONAL RECORD-HOUSE :FEBRUARY 27 on February 18, 1834, moved the previous question in this time, have come to public notice to such a degree that there House after more than 2 months' debate on the United States is a certain glamor about them. The gentleman from Vir­ Bank. He declined the Cabinet post of Secretary of the ginia [Mr. WooDRUM] stood where I am standing now, I Navy and Minister to Russia but accepted the similar post to questioned him, and the gentleman from Colorado [Mr. Austria at the hand of President Van Buren. LEwiS] questioned him last year on the bill relative to that John Peter Gabriel Muhlenberg, having served in the allegation, and Mr. WooDRUM made the statement from this Virginia House of Burgesses in 1774, returned to Pennsyl­ Well, that they had taken over $200,000 of their appropriated vania after the Revolutionary War ended, and was, too, money and reallocated it to increase their salaries, limiting elected to the First Congress, where his brother was chosen themselves in the personnel, just as the Post Office inspectors Speaker. He served in the Third Congress and again in the have done. Sixth Congress, March 4, 1799, to March 3, 1801, when I wanted to bring that to the attention of this Committee elected as a Democrat to the United States Senate. He for this reason. Becoming entirely familiar with the opera­ served from March 4, 1801, until he resigned to accept the tion of the laws covering the Post Office Department and appointment of President Jefferson as supervisor of revenue the regulation set up thereunder, as well as having delved into for Pennsylvania. this Classification Act of 1925, I find no compulsion under the I feel that I have in Pennsylvania a typically German act, the policy which Mr. Mague has indicated they have background, and I do not feel that I need apologize for but been obliged to follow and increase their salaries to the rather express pride in it, because wherever patriotism has prejudice of increasing their personnel. I could not help been involved they have never been lacking. I have followed prefacing my remarks as I did, and now expressing my re­ the precepts and the examples that have been laid down and sentment of any bureaucratic branch of the Government the traditions as given to me from my earliest childhood. that would do such a thing. I want to say that I never Some of these things are pretty dear to me, and before I believed the Post Office Department was bureaucratic, but would forsake them I would sacrifice everything else I possess. Mr. Mague, wherever they got him, is teaching them some So I again say that I do not believe the gentleman from very bad practices, strange and unnatural to the Post Office Pennsylvania [Mr. GROSS] can speak exclusively for the Department, and I feel it should be made known to this Pennsylvania Germans, because if I had to 1 could say Committee at this time. Therefore I asked the gentleman exactly what I have said here in Pennsylvania;..German from Indiana [Mr. LUDLOW] for the time in order to make idiomatic expressions that are colloquial in my community. the Committee acquainted with that particwar violation of Mr. O'CONNOR. Mr. Chairman, will the gentleman the spirit of the appropriation law. [Applause.] yield? Mr. TABER. Mr. Chairman, I yield 10 minutes to the Mr. MOSER. I regret I cannot. I have something to gentleman from Massachusetts [Mr. GIFFORD]. say about the bill. I desire now to address myself to the Mr. GIFFORD. Mr. Chairman, I regret I have only 10 Committee on the subject of the bill. I was for 12 years minutes, because I wanted to share the time with any who a post-office inspector. Having just given you an illustra­ might wish to interrupt. I have a very important subject. tion of how I feel about the matter of loyalty to a cause, I wish to talk about a very great man, our Harry Hopkins, I feel resentment when this House appropriates money for an old friend (?) of mine. After a heavy silence, we heard a certain purpose to see it diverted by a department of the from him on last Friday evening. I understand that Heaven Government to other uses. Last year we appropriated always welcomes the reformed penitent. We can only hope money to pay for 10 additional post-office inspectors. Since that he has been truly reformed, but I want to tell the Demo­ 1935 Mr. Mague says appropriations to increase salaries cratic side of the House that neither Harry Hopkins, the under the classification act have been passed. He means President, nor Mr. Morgenthau are deceiving anybody. We passed up. It has not been popular to raise Federal salaries. know Mr. Hopkins. No matter what he says, we know his At least, not publicly. He fell behind $92,000, so he re­ viewPOint and his record. How can we listen to "what he says," allocated the money for the additional inspectors. I did with "what he is" ringing in our -ears! · And we know where not know who the Mr. Mague was, who testified before the he is. He rests in the arms of the President, to whom he will Appropriations Committee, until I inquired of an old in­ be loyal. We understand he is now the pipe line through spector friend, Mr. Gartland, and he told me that Mr. which the businessmen can actually at least reach the ears Mague is superintendent of the post-office inspection serv­ of the President. But we are not so simple as not to know ice, and in the testimony of this gentleman, as advanced what causes this pretended change of heart and attitude. before the committee, he found himself in that uncomfort­ There were no apologies on Friday night in his speech for any­ able position, that position I feel practically everybody thing that has been done; no errors acknowledged. If busi­ would hate to be placed in, that of being under the com­ nessmen have been "so damned dumb" when he has spoken pulsion of what he calls the Classification Act of 1925, heretofore, certainly they may fail to understand his lan­ more especially that portion thereof raising their own guage of Friday night. But he now says, "We have aban­ salaries to the prejudice of the will of this Congress, in­ doned reform and will henceforth aim at recovery"-a stead of increasing the personnel. I do not know how perfect admission that what they have been doing has been far I would like to go on that measure, but I feel this essentially to reform and that recovery was not considered practice must be arrested. Feeling this resentment, I so important. This administration has denied all along that mentioned it to Mr. Farley. He took the side that I am it was putting reform before recovery. Its spokesmen now advancing. He said they should not do that. I explained say, "We will not punish any more but will cooperate." it in detail, and I do not believe he will permit it to occur After 6 long years of constant harassment, and the most again. The law of Congress is flouted time after time by recent appointments to high places, can we rely on these the various departments, but I did not think the time would spokesmen? ever come when a service so well known, a service which Mr. GEYER of California. Mr. Chairman, will the gentle­ has functioned so well, would disintegrate a::1d. get to the _man yield? state where they would undertake to increase their own Mr. GIFFORD. Yes; I yield. salaries to the prejudice of increasing the personnel, con­ Mr. GEYER of California. I just wondered if the gentle­ trary to the will of the people of the United States as man thinks he is contributing anything toward this matter expressed by their Representatives in Congress. of cooperation by such a speech as he is making here today? Last year it will be remembered that we were under Mr. GIFFORD. No; I am not trying to. fire of public opinion, in the press, and in correspondence Mr. GEYER of California. I thought as much. from constituents everywhere, relative to insufficient appro­ Mr. GIFFORD. I am not trying to. I am simply warning priations as hampering the opportunity for the advancement that we should have action rather than promises, from such and prosecution of cases on the part of the G-men. The people. We are no longer gullible, that is all. If that is G-men, formerly agents of the Department of Justice, in my not a contribution, well and good. I am simply saying we 193~ CONGRESSIONAL RECORD-HOUSE 1953 have to judge by the past, if we are to have confidence in the Mr. PIERCE of Oregon. Would the gentleman wipe off future. We believe thoroughly that the Democratic Party the work of the Securities and Exchange Commission if he and its spokesmen mean what they say. We must believe could? · that. You want recovery. I know you will try, because 1940 Mr. GIFFORD. · I would wipe off a lot of these regulations is directly ahead. Unless you can bring about recovery you that you and I had nothing to do with in passing the act. are doomed, and you know that. That is the only reason you The intent of the legislation was good, but like the Federal are to desist from so-called reforms. It is not because you are Trade Commission which your own Democratic leader said sorry for anything. Your real nature has not changed. You was a dismal failure for 10 years, it has only frightened busi­ will not change the silver policy just discussed nor acknowl­ ness, · and I have heard it stated that the Securities and edge any other monumental failures of fiscal experiments. Exchange Commission has not caught even a cockroach yet. You will still persist in these; but you say, simply, that you But I am not informed as to that. Certainly no criminals of will not spank business any more at present. My contribu­ importance have been mentioned and, judging from the argu­ tion is to tell you why you promise that. I now declare that ments in favor of the legislation, there were plenty of them. if recovery does come during the next year it will be because Mr. PIERCE of Oregon. There is no commission in the of the hope and the expectation of the businessmen that the United States from the beginning of this GovernmPnt that Republicans will return to power in 1940. It will not be be­ has gone more conscientiously and honestly trying to ·find cause of anything that Hopkins, Morgenthau, and other out what the wrongs are and exposing them to the public. rubber stamps may say, because the people do not believe Mr. GIFFORD. Oh, the intent of the act was commend­ in them any more. able. But contemplate the results. Again I say "It was Mr. HAWKS. Mr. Chairman, will the gentleman yield? probably one of the greatest deterrents of recovery." Mr. GIFFORD. I yield. Mr. PIERCE of Oregon. The work they have done has Mr. HAWKS. Is it impossible for the. gentleman from been marvelous. California [Mr. GEYER] to stand the truth? Does he not Mr. GIFFORD. What this administration has done; the like to have it dished out on the floor of the House? cures advanced have been far worse than the disease which Mr. GIFFORD. Oh, most of them love the truth and was at least supposed to afflict our social economy. The most of them love to have me speak it for them. [Laugh­ Securities and Exchange Commission has undoubtedly ter.] But I again remind you that we now know these men. greatly hampered business. To catch a few crooks, all hon~ They have performed for some time. "Spend and spend, est men were suspected and threatened. tax and tax, elect and elect." We hear, "I didn't say it." Mr. PIERCE of Oregon. Put them in the penitentiary But when you draw a perfect word picture of a man, he need where they ought to be. not trouble to deny his identity. No one could mistake the Mr. HOOK. Mr. Chairman, will the gentleman yield? perfect likeness of such a word picture. He will speak only Mr. GIFFORD. Certainly. according to the desires of his President. We know his Mr. HOOK. The gentleman seems so well informed on exact location. That reminds me: A very prominent person political issues I was just wondering whether or not he could was in an insane hospital on business and did not get good inform us the amount Mr. Whitney donated to the Repub­ service from the telephone operator. He said, "I guess you lican Party last year. don't know who I am?" The operator replied, "I do not Mr. GIFFORD. I have no information about that, but need to know; I know where you are." [Laughter.] considering his financial condition it was very little; and Mr. KELLER. Mr. Chairman, will the gentleman yield? the gentleman from Michigan must not infer that I favor Mr. GIFFORD. I yield. what Whitney did. Of course, I condemn it. Neither do t Mr. KELLER. I wonder if the gentleman would be kind favor heavy Government borrowings wiping out the peopie•S' enough to enumerate for us the real mistakes that the· savings and squandering them. A national debt of 50. administration has made in the New Deal? billions tells its own story. Mr. GIFFORD. Oh, if the gentleman would ask me to Mr. TABER. Mr. Chairman, will the gentleman yield? enumerate any successful operations I could do it very briefly. Mr. GIFFORD. Gladly, yes. [Laughter.] But I might try to enumerate a few of the many Mr. TABER. Is there any significance in the conviction failures. Shall I begin with a national debt of $44,000,000,000 last Saturday on 13 counts o·f Mr. Roosevelt's dispenser of and headed straight for $50,000,000,000? Is that something patronage in New York City? of which to be proud? You usually boast of one particular Mr. GIFFORD. That is in truth a sad affair. It is bitter act. You will name the Securities and Exchange Commis­ medicine indeed. sion, which dried up and froze business and capital ventures I wish I might have had the time to discuss the billions so completely. It is still the great deterrent preventing re­ to be asked for housing in a few days. lease of capital. Only yesterday it was portrayed in the I ask you to consider the projects already completed. Let. papers how the Securities and Exchange Commission is now us inform ourselves about this ill-advised legislation in spite trying to make peace. They realize that new business was of the "ballyhoo" in favor of it. We cannot greatly blame frightened away by their activities. The index in the New officials of the Government who are forced to act hurriedly York Times of yesterday shows that business has again been under the lash of the administration in order to gain a little rocketing downward. The Securities and Exchange Com­ temporary upturn in the building industry. We may destroy mission is the acknowledged cause of the continuous thin the entire real estate balance of great cities. Considering the market. results attained, this administration has a sad record to Someone said to me, "Did not the Securities and Exchange contemplate. Commission catch this man Whitney, so prominent in the Mr. CRAWFORD. Mr. Chairman, will the gentleman yield? . stock market?" No; they did not catch him. The horse was Mr. GIFFORD. I yield. stolen before the Commission noted what had happened. Mr. CRAWFORD. I should like to hear the gentleman's What did Whitney do? He borrowed funds that were in his comment on this statement of Mr. Hopkins: control-that is, he tried to borrow himself out of the depres­ If necessary, such taxes can be replaced by increasing other taxes sion. He borrowed 11 times. The Government has borrowed which do not have the same deterrent effect. and squandered billions, more than 11 times, trying to borrow Mr. GIFFORD. I had that marked for comment. I wish itself out of the depression. I had time to refer to it. Mr. KELLER. You think Whitney is right, then, do you? Mr. CRAWFORD. Does the gentleman think business Mr. GIFFORD. No, indeed. Neither do I think the Gov­ knows how to interpret that statement? ernment is right. But, of course, the Government can do no Mr. GIFFORD. Indeed, no. Let me say to the Democratic wrong. side of the House: "Your outward complacency fools nobody; Mr. PIERCE of Oregon. Mr. Chairman, will the gentleman we know that inner disquietude fills your hearts." [AP­ yield? plause.] Mr. GIFFORD. I yield to the gentleman from Oregon. [Here the gavel fell.J }954 CONGRESSIONAL RECORD-HOUSE ;FEBRUARY 27 Mr. LUDLOW. Mr. Chairman, I yield 10 minutes to the State and in every subdivision of every State in the United gentleman from Oklahoma [Mr. NICHOLS]. States. Mr. NICHOLS. Mr. Chairman, I hope we will not get so We in the present Congress should stop bickering and play­ embroiled in political arguments between the two sides .of ing politics and get down to the business of finding out how the aisle that we become completely unmindful of many the Government, for which you and I legislate, can best very important things that are now before or will come be­ discharge its duty, because the Government now admits it fore this body for consideration. owes a duty to the old people of this country. I care not We have been in the formation of this Government now what the sum is. If it is the consensus of opinion of this about 160 -years. During this t~e your forefathers and body and the body at the other end of the Capitol that it mine have been busily engaged in doing those things of be $15 a month, well and good. If that opinion is that it which we are now beneficiaries. Your parents and my par­ should be $30 a month, well and good. Whatever sum may ents and your grandparents and my grandp~rents were part be agreed to makes no difference to me. However, if it is of that great band of sturdy old pioneers who, with the a Federal obligation, then I want to see the Federal Govern­ watchword "Westward, ho!" less than· a half century ago, ment mail a check from Washington to the beneficiary in started the final conquest of the West. When that conquest whatever State the old ·man or woman lives so that he or was completed your forefathers and mine had hewn out of she may get the check under exactly the same rules and regu­ a wilderness a civilization, the civilization we now enjoy. Its lations, no matter what State they may live in. culture, its opportunity for education, its well-ordered public I started to say a minute ago that my good State of Okla­ society is the heritage of ourselves and of future generations. homa is a shining example of the evils of this system. We are and they will be the beneficiaries of that long toil After the Social Security Act was passed the State of and labor by your and my forefathers, those who are the old Oklahoma passed a constitutional amendment to provide people of this Nation today. the State could pay old-age pensions, and levied a sales tax In the Seventy-fifth Congress the Government of the to finance such payments. The Governor named a State United States recognized and by statute law admitted that commission to administer this act, and the Federal Govern­ those old pioneers who had become old and stooped by their ment was to contribute one-half of the amounts paid. toil for civilization were entitled to something from the Gov­ Since that time the State commission and the Federal ~rnment and that the Government was ready to pay an Social Security Board have been in an almost continuous obligation long past due. Then the Government did a thing wrangle. The Federal Board has demanded the right to dic­ for which I am ashamed. Congress passed the Social Se­ tate the hiring and firing of ·employees by the State commis­ curity Act. The only excuse under the shining sun that we sion, and enforced its demands by withholding contributions had for passing that act, included in which was the pro­ until such demands were met. The State commission has vision for the payment of an old-age pension, is based upon been in hot water at home in political and other ways. the thing that I have just talked about-payment to those The commission recently fired the State director, saying­ who had so busily engaged in hewing a civilization out of this was done at the suggestion of the Federal Board. The ihe wilderness that they had not had time to amass enough Federal Board denied any such suggestion had been made of the world's goods to sustain themselves in their declining and added that a bad situation had only been made worse. years. The Government admitted ari obligation to them The members of the commission then resigned and the new and then dodged the obligation. Governor is now selecting a new commission. Under the old-age pension title of the Social Security Act The result of this endless friction has been that the old we did not say to the old people of this Nation that the Gov­ folks of Oklahoma have lost about $3,000,000 in Federal. con­ ernment of the United States will pay you so much money tributions that they should have had. I am. not passing judg­ per annum, per month, semiannually, or at some other period. ment on the Social Security Board's actions in withholding No. We said that if any State in the Union recognizes that contributions. I have about given up trying to find out what they owe you a duty and they will pass an old-age pension the row is about. - law the Government of the United States will pay you as - I do not blame the Federal Board or the State commission much money as the State will pay you up to a certain limi­ for the present situation in Oklahoma. I blame the Congress. tation. So we find today the spectacle of two aged couples The present dual control cannot work. It should be changed in exactly the same economic circumstances and of the same at this session. age treated differently just because one lives in one State and We have many problems here in Congress. We have been one lives in another State, and this notwithstanding the fact talking a lot about national defense and voting money with that their needs are the same. Unless..this is a Government a lavish hand for the implements of war. I maintain that obligation the Government has no business paying out any the best defense we have is the patriotic spirit of our people. amount of money, whether it be 5 cents or some larger amount And I believe that the way the Social Security Act has been per month; but if this be a Government obligation, all bene­ administered has done much to tear down the patriotic herit­ ficiaries under it should be treated alike by the Federal Gov­ age and instincts of our people. The spectacle of a Federal ernment. My own State of Oklahoma is now a shining board and a State commission bickering and mouthing over example of the evil of the system as it exists at present. trifles, and spiting each other by withholding millions of Mr. Chairman, I do not want the Members of the House dollars from old folks who are near the borderline of starva­ to think I am leading up to the point where I am going to tion is as sorry a sight as I ever hope to see. I hope this endorse somebody's wild isms, either. I do not want any­ Congress will :Put an end to such spectacles forever by enacting body to think I am leading up to the point of placing my a fair and sane and workable old-age pension law. endorsement and approval upon some thousand-dollar-a­ Mr. TABER. Mr. Chairman, I yield the balance of my month scheme or any other scheme as impossible of accom­ time to the gentleman from California [Mr. LELAND M. plishment, as are many schemes which have been presented FoRDJ. to this Congress. I do say if the Federal Government owes THE EFFECT OF COST OF GOVERNMENT AND TAXES UPON CONFIDENCE IN an old man 65 years old living in Maine $30 a month, then BUSINESS . it owes $30 a month to an old man living in Florida, Califor­ Mr. LELAND M. FORD. Mr. Chairman, in consideration nia, and every other State in the Union exactly the same of the direct appropriation of $1,700,471,354 in the appro­ amount of money for everyone who falls in the same classi­ priations bill to finance the operations of the Treasury and fication. Post Office Departments for the fiscal year beginning July If the State wants to vote an old-age pension and pay the 1, it might be well to stop and think for a moment. citizens of that particular State something in addition to A short time ago, this amount would have run the whole what the Federal Government pays them, well and good; Government. I am told that in the year of 1904 the total but if the Federal Government has any· obligation, and I cost of all the departments of Government was $730,000,000; say it has, then this obligation is exactly the same in every in 1905, $720,000,000; and in 1906, · $736,000,000. Now this 1939 CONGRESSIONAL RECORD-HOUSE 1955 one item for the two Departments· above named is costing This debt either is or is not going to be paid. It must be twice and a half as much as all the governmental depart­ paid. ments used to cost. God forbid the day when the United States Governemnt There is no question that Government costs should have repudiates its debt, either directly or indirectly through in­ had a normal rise, in keeping with natural development of fiation, reflation, or otherwise. the country and with the better governmental services given Any person with the capacity to think should be able to as time went on, but in my opinion these costs have recently see what would happen to every individual, every bank, risen at a ratio out of all proportion to the ability of the every insurance policy, mortgage, financial institution, and country to pay them, and far above that which good busi­ every business both large and small, if repudiation took ness judgment and common sense would dictate should con- place, or if any of the forms of inflation was resorted to, tinue. · that would in e:fiect strip them of practically everything The best practical evidence of this is our national debt, they owned or that measure of security they have attained which Mr. Morgenthau now tells us will reach an all time and obtained through diligence, honest work and planning, high of $44,000,000,000 by June 30, 1940, and he further tells thriftiness, and by exercising that judgment in their affairs us that the administration is going to ask Congress to in­ that makes them independent Americans. These people crease the present debt limit from forty-five billion to fifty have the right to expect the same kind of security they have billion. He declines to state how much higher the national had in this country for the last 150 years, and they should debt can go with safety, and further describes the present get it. They cannot have it, however, unless this Budget iS credit of the Government as "never better"-"100 percent balanced, provision for full payment of the national debt is good." made, and the costs of government are reduced to the ex­ How long can credit be maintained in this condition, even tent of materially lowering the taxes on business. Unless if Mr. Morgenthau is right, with the constant increase in this is done, God forbid the day of reckoning to the tax­ cost of government and the constant announcement of new payer when the final tax bill is written. high debt levels, with the constant increasing demand for Every person interested in relief, old-age pensions, secur­ more taxes, without future or permanent plans for the re­ ity of any kind, and all persons interested in the safety and duction or paying off of this debt? welfare of this Government should join in the demand that What will be the final cost of Government if $45,000,{)00,- a financial inventory and check-up should be made to deter­ 000 in principal is paid off in 33 years, at an interest rate mine where we are finally going to arrive, with the ultimate of 3 percent per annum, including cost of accounting, han­ object in mind to trim our sails before we hit the rocks. dling, etc.? It will certainly be $1,500,000·,ooo for principal Those who are on relief and those who are dependent on amortization and $1,500,000,000 for interest, or $3,000,000,- the Government or expect any form of security must realize 000 per year for the first year, for interest and principal that in the long run the ability of the taxpayer to pay is only, if the debt does not go any higher, and this does not the thing that keeps the whole operation going; and when take into account the current cost of Government operation. taxes become so heavy that they can no longer be paid the If the cost of Government continues in the neighborhood of result will be chaos for everyone. This might be likened $10,000,000,000, this is going to result in an annual cost of to a child in a nursery room playing with b·locks. We have some $13,000,000,000 per year. all seen a child pile one block upon the other until rather Does Mr. Morgenthau think any banker would continue to a high, shaky structure is erected; with each additional extend credit to any commercial borrower, who used his block the structure becomes more shaky and insecure until credit always to the limit, kept pushing it up to new high finally, when a final effort is made to place one more block levels, and did not occasionally reduce it, or make provision on the structure, the whole thing falls over. It might be for the total final repayment of the whole amount? The wise to profit from this simple knowledge before it becomes answer to this should be very apparent, and it would be, too late. [Applause.] "No," in no unmistakable terms, for the lender would want [Here the gavel fell.] to know how safe his loan was, and in addition would want M;r. LELAND M. FORD. Mr. Chairman. I ask unanimous to know when he was going to get his money back. Instead consent to revise and extend my own remarks in the RECORD. of giving more credit, he would' probably cut off any further The CHAIRMAN. Is there objection to the request of the extension of credit. The banker would probably rightfullY gentleman from California [Mr. LELAND M. FORD]? demand a new balance sheet, or credit statement, and ana­ Mr. GEYER of California. Mr. Chairman, reserving the lyze it with the idea in mind of finding out if the borrower right to object, I would like to know if my colleague, whose was operating within his means, or in other w.ords, had a district adjoins mine, is going to extend in his remarks ex­ balanced budget, and had made any reasonable provision actly what :qe asks to extends, or if he is going to do as he for repaying that which he had already borrowed. The did on the last legislative day when he asked permission to country at large is the banker in this instance and it is extend in his J;"emarks a letter from Dr. Nylander, of the beginning to ask some of the questions above, and it is National Labor Relations Board, and instead inserted an entitled to an answer. editorial in his :remarks taken from an Inglewood paper? This money all has to be paid back if the credit and Mr. LELAND M. FORD. I am going to do as I said I standing of the Federal Government is to be maintained. would. I did not extend in my remarks an editorial. If The country at large knows that there is one place only that the gentleman will read the article in question he will find Government can get the money to pay back this debt and it is a news item. I extended that. It was printed in the the additional money to carry on government, and that paper and it stated the truth with reference to what was said place is from the country itself in the form of taxes on at a certain meeting by Dr. Nylander. business in some of its ramifications. The CHAIRMAN. Is there objection to the request of the It is no wonder that business and our people are con­ gentleman from California [Mr. LELAND M. FoRD] to revise cerned and have a lack of confidence in the future, when and extend his own remarks in the RECORD? they look at this picture and know that all these billions Mr. GEYER of California. Mr. Chairman, there is, unless must eventually come out of them in the form of taxes. he will assure me-- Much has recently been said of social security and the The regular order was demanded. provision for certain groups toward the end of their security. Mr. GEYER of California. Mr. Chairman, I object. This, no doubt, is as it should be; but at the same time how Mr. LUDLOW. Mr. Chairman, I yield 3 minutes to the secure are all of our people, or any of our people, or any gentleman from Utah [Mr. MURDOCK]. business under this tremendous burden of not only present Mr. MURDOCK of Utah. Mr. Chairman, if the gentleman taxes but those taxes that they know are sure to come in from New York [Mr. TABER] will give me his attention, I contemplation of the above figures? 1 would appreciate it, because I want to direct my remarks to 1956 CONGRESSIONAL RECORD-HOUSE ~EBRUARY 27 the gentleman with reference to statements made by him on he would not make such a statement as is included in the Friday last. RECORD of last Friday. I should not this afternoon be called upon to speak on the Mr. Chairman, the gentleman from New York made the silver question if it were not for action contemplated by statement that under the silver-purchase program and under Republican members of the Appropriations Committee. As I the proclamations of the President relative to silver we have understand it, the Appropriations Committee was created accumulated in the Treasury 3,698,000,000 ounces of silver. not for the purpose of legislating policies and enacting laws The gentleman then complains of the fact that we have but for the sole purpose of taking care of the fiscal atrairs of issued against these 3,698,000,000 ounces of silver $1,600,- . the Government and appropriating the money to carry out 000,000 in silver certificates. I know the gentleman's figures the legislative policy enacted by the Congress. are wrong. I do not want to hold him to them, but I do call The Representatives from the Inter-Mountain States find them to his attention. that a back-door attack is being made on the Silver Purchase Mr. TABER. Mr. Chairman, will the gentleman yield? Act, which law wa.::; enacted in 1934. My position today, Mr. Mr. MURDOCK of Utah. Certainly. Chairman, is that if the Silver Purchase Act is not sound, if Mr. TABER. If the gentleman Will turn to page 37 of the it has not worked successfully since its adoption, then a bill hearings, he Will see that I simply followed · the language of should be properly introduced to repeal the act. That bill the Secretary of the Treasury. .should be brought .to the :floor and discussed thoroughly. Mr. MURDOCK of Utah. That indicates only this, then, However, this act should not be repealed by the back-door Mr. Chairman, that neither the gentleman from New York approach of attempting to strike out the item carried in this nor the Secretary of the Treasury knows what the figures of ·bill providing funds for the administration of the Silver Pur­ the Treasury Department are. I further ask the gentl~man chase Act. Such an attack is violative of the rules of the from New York, who is such a close adherent to the facts, to -House; it is a usurpation of authority by the Appropriations divide the 3,698,000,000 ounces of silver by $1,600,000,000 in Committee, if such a result were accomplished; and, in my silver certificates, and he will find, if his figures are correct, -opinion, it is high time for this House to take the position that we can sell the silver in the Treasury for the world price that the Appropriations Committee should not have appellate of 43 cents an ounce and pay off every silver certificate in jurisdiction over legislative committees. and should discon­ existence in the United States today. tinue any attempts to change existing law by control of ap­ I cannot conclude my remarks, Mr. Chairman, without re­ propriation items. I have no fear for the Silver Purchase Act ferring to the very eloquent address delivered earlier today by if I and other prop~:ments thereof are given a fair chance to the gentleman from Illinois [Mr. DIRKSEN]. I hoped he would defend this legislation. But where we are taken by surprise be present when I spoke, but, notwithstanding his absence, I by this back-door approach, when we are unable to get ade­ must say what is on my mind. He, in his usual emphatic and quate time to intelligently discuss the silver question, it is bombastic way, denounced the silver program as an "abomi­ wholly unfair to us and to the House .that we should be called nation." He denounced it as a "subsidy to the silver-mining upon to combat efforts to control legislation by the methods industry" of the great West. How forgetful my friend from contemplated by Republican members of the Appropriations illinois is in denouncing what he calls a "silver subsidy" of Committee. the fact that every person in the United States that takes a I have heard on the :floor of this House the very distin­ drink of liquor pays an extortionate amount to protect the guished gentleman who will offer tomorrow an amendment liquor industry of the gentleman's district. How eloquent he to strike the appropriation for the administration of the waxes whenever anyone, even by implication, refers to the Silver Purchase Act, condemn, in very eloquent and in no subsidy to the great liquor industry of his district. But with uncertain terms, the practice, indulged in at the other end smug complacence he can condemn the program which means of the Capitol, of attaching legislative riders to appropriation the very life of metal mining in the West. 0 Mr. Chairman bills. How he can condemn such action on the part of that if subsidies are to be condemned as an abomination, then th~ other body, and then resort to the same practice himself, is gentleman from Illinois should be ever conscious of the vast beyond me. If we condemn such actions on the part of subsidy the people of the United States pay to protect the rot­ another great body of the Congress, there is certainly addi­ gut liquor that :flows from the district of the gentleman from tional reason why we should not resort to a violation of our Illinois. The mining of silver provides labor for thousands own rules here in the House. By using such tactics here we of American miners. The wages so paid are conducive to a certainly lessen our own respect for our own rules, and -invite decent standard of living for decent American citizens. It disrespect for them in other branches of the Government. I provides homes, it improves morale, it furnishes a market for -therefore, Mr. Chairman, urgently implore the committee that the great eastern industrial centers. It does not destroy when the amendment is offered to strike from the bill the homes, it does not produce criminals, it does not destroy the item of appropriation necessary to administer the Silver Pur­ youth of America, it does not fill insane asylums and peni­ chase Act, that it be emphatically voted down. I urge this tentiaries, and, although for the purpose of argument we action, not only to the proponents of the silver program, but admit that the silver program may in a way "subsidize" the also to the opponents, who cannot afford, in my opinion, to silver-mining industry, we take the position that it is far use this method of controlling legislation. better to subsidize the silver that flows from American mines Mr. LUDLOW. Mr. Chairman, I yield my remaining time than to subsidize rot-gut liquor that :flows so freely in America to the gentleman from Colorado [Mr. LEwis]. today under a subsidy to the liquor interests of the United Mr. LEWIS of Colorado. Mr. Chairman, I yield my time States. By this I do not mean that I am unwilling to protect to the gentleman from Utah [Mr. MURDOCK]. even the American liquor industry against foreign industry. Mr. MURDOCK of Utah. Mr. Chairman, I am very grate­ What I do mean, however, is that gentlemen like the gentle­ ful to the gentleman from Colorado. man from Illinois [Mr. DIRKSEN] should get out of their own If I may now have the attention of the gentleman from glass houses before heaving stones so viciously at the silver New York [Mr. TABER] I should like to comment for just a program. minute on what the gentleman said Friday. The CHAIRMAN. The time of the gentleman from Utah Since I came here 6 years ago I have had a great admira­ ha~ expired. All time has expired. tion for the gentleman from New York by reason of his The Clerk will read the bill for amendment. usually close adherence to the facts. However, in reading The Clerk read as follows: the remarks the gentleman made here on Friday I find he Old-age reserve account, Social Security Act: For an amount sum­ cient as an annual premium for the payments required under title n has skidded badly on the facts as far as silver is concerned. of the Social Security Act, approved August 14, 1935 ( 42 u. S. c. 401), I thought when the gei'l.tleman made his statement he prob­ and authorized to be appropriated to the old-age reserve account ably had done it inadvertently, but when the gentleman established under section 201 (a) of the act, $580,000,000, of which $30,000,000 shall be available immediately: Provided, That such leaves it in the RECORD as he has I must conclude that he has amount shall be available until expended for making payments not given his usual close attention to the silver question or required under the act, and the amounts not required for current 1939 CONGRESSIONAL RECORD-HOU~E 1957 payments 'Shan be Invested from time to time ·tn such amounts tmd itself and th-erefore lt represents new authority and new J,n such manner as the Secretary of the Treasury may deem · most legislation. expectient 1n accordance with the provisions of such act. Mr. LUDLOW. I call the attention of the Chair to the Mr. WHITE of Ohio. Mr. Chairman, I rise to a point of phl'aseology "in his judgment," which I beUeve conveys onier.. exactiy the 'same authority the gentleman attributes to the The CHAIRMAN~ The gentleman will state it. language of the bill before us. Mr. W.HlT.E of Ohio. Mr. Chairman, my point of order Mr. WHITE of Ohio. It exceeds the authority to meet is against the language contained in line 21, page 3, beg;in­ current ·withdrawals, and there is no such power in the nmg with the words "from time to time" arut extending to present law. · the words .. 'most expedient," the full language being "from · .Mr. LUDLOW. Mr. Chairman, I have one other point. I tlme to time in such amounts and in such manner as the am advised by the Bureau of the Budget that if the Secretary Secretary of the Treasury may deem most expedient." It is is not allowed the latitude conveyed by the langtmge in the my contention this is legislation in an appropriation bill ·and billlt probably will largely increase expenditures. I believe imposes additional duties and power upon the Secretary of there is a probability, at least, that this comes ·under the the Treasury. -- jurisdiction of the Holman rule. · As ·I tmderstand the situ­ It is my understanding that at the pl'esent time under the ation, the .Bureau of the Budget is· apprehensive that with provisions of the original body of law the Secretary of the this language deleted the Comptroller would hold that the Treasury cannot invest this money until the revenues are miimte the appropriation bill becomes -effective for the next received, and that this language is inserted in the bill for fiscal year there is a mandatory obligation on the Secretary the purpose of permitting him to invest the money in this of the Treasury to invest immediately these funds that are manner before the revenues are received by the Treasury appr(Jprtated, at 3-percent interest, whereas if the Secretary Department. It would therefore constitute new power and has the latitude to stag.ger the investment of the funds and new authority. On that basis.. Mr. Chairman, I make the not make an immediate investment, ·there will be a .saving ~t of o!(ier. of something like $8,000,000 a year. I .also submit the reason­ Mr. LUDLOW. Mr. Chairman, I should like to be heard ableness of the point of view that this comes within the in opposition to the point .of order. Holman rule. · I wish to call the attention of the Chair to the exactness of Mr. WHITE of Ohio. Mr. Chairman, I contend that the the language in the bill as compared with the original Old statement which the gentleman has just made sustains my Age Security Act. My contention is that the language in contention that this is a grant of new power. the bill is identical in meaning, though not in verbiage, with The CHAIRMAN (Mr. BoEHNE). The Chair is ready to the language in the act and does not e~tend the language o'f rule. the act. If the Chair wishes, I shall be pleased to read the The gentleman from Ohio [Mr. WHITE] has made a point langUage of the bill and-also the mnguage of the aet. I of order against the words found on page 3, lines 21 to 23: assume the Chair has this informatiGn before him. The lan­ From time to time in such amounts and in such manner as the guage of the acl to which I refer is contained in subpara­ Secretary of the Treasury may deem most expedient. graph (b) of the Social Security Act~ The language of the The gentleman from Indiana contends that this is in bill, as I construe it, is simply in somewhat different werds accordance with the Social Security Act and cites subpara­ a repetition of the language in the act itself~ gra-ph of paragraph 401, title n, in which there appeaT Mr. WHITE of Ohio. Mr. Chairman, w1ll the gentleman these words: yield? It shall be the duty of the Secretary ot the Treasury to invest · Mr. LUDLOW. I yield to the gentleman from Ohio. such portion o:f the amoupts credited to the account as is not in - Mr. WHITE of Ohio. Is it the gentleman's understanding his judgment required to meet current withdrawals. Such invest­ that at the present time, under the substantive law, the Sec­ ment may 'be made only 1n interest-bearing obligations of the retary of the Treasury cannot invest the money in this United States or in obligations guaranteed as to both principal manner until the revenues are received by the Treasury and Interest by the United States. Department? The gentleman from Indiana [Mr. LunLowJ has also cen­ Mr.· LUDLOW. For the information of the gentleman tended that this comes within the meaning of the Holman from Ohio and af the House, let me read·the language of the rule, when, as a matter of fact, the Ho-lman rule specifically act: provides that the saving to be effected must be shown, while It shall be 'the duty of the Secretary of the Tr.e8sury to tnvest the statement of the gentleman from Indiana shows that the atich portion of the amounts credited to "tbe account as 1s not, tn saving to ,be effected is entirely speculative in chara-cter. his Judgment- Mr. LUDlaQW. If the Chair will permit a suggestion there, Note the words "in his judgment." There we have the I recall ,distinctly that in the treatment of the Holman rule discretion- in Cannon's Precedents, it is expressly set forth that it is required to meet current Withdrawals. not necessary to show in so many words or in so many figures what th~ saving will be, but it is sufficient to show that in all In the bill we have before us we provide:: likelihood there would be a saving; That such amDunt shall be avatlable until expended :for making The CHAIRMAN. The Chair desires to call the attention payments required under the act, and the amounts not required for of the gentleman from Indiana to the fact there is nothing in CUITeiit paym-ents shall be invested from time to time 1n such 'IWlOunts-- the words .against which the point of order has been raised to show any saving whatever. J:n oth-er words, in his judgment- The Chair believes that the words referred to do grant and 1n such manner as the Secretary of the Treasury may deem additional discretionary power to the Secretary of the Treas­ most expedient. ury, and, therefore, sustains the point of order. It .seems to me the purport of the language of the act is Mr. COCHRAN. Mr~ Chairma.n, I move to strike out the identical With the purport of the language of this bill, and last word. · ¥ice v;ersa. Mr. Chairman, on Friday, during the speech of the gentle­ Mr. WHITE of Ohio. Mr. Chairman, I call your attention man from New York [Mr. TABER], the gentleman from Ohio to the language that was read by the gentleman ·from In­ £Mr. CLEVENGER] made some remarks which will be found on diana to the effect that the Secretary had the power to meet page 2671 of the ,RECORD. The gentleman from New York current withdrawals. I contend this new language ,goes .IMr. . TABER] had been referring to money that had been aP­ beyond the power of meeting current withdrawals in that propriated for theW. P. A. and allocated to various Govern- it places no limitation but states "from time to time in such ment agencies. amounts and in such manner as the Secretary of the Treas­ The gentleman from Ohio stated that he thought this was ury may deem most expedient." This language· goes beyond a very proper. matter for the Committee on Expenditures c~ent withcln.\.wals. .It ~at~ a restliction. of _the . act · !n the Executive Departments to investigate. The gentleman 1958 CONGRESSIONAL RECORD-HOUSE ;FEBRUARY 27 stated he was a member of the committee and that the com­ have noted that the First Lady of the land's insurance firm mittee had held only one meeting and he thought that the wrote the liability insurance for the Pan-American Airways committee should investigate the matter referred to. trans-Atlantic transport planes. I rise to respectfully sug­ First, let me say to the gentleman from Ohio the author­ gest in view of the· fact that $996,000 . is provided in this bill ity to allocate this money will be found in the relief act and mostly as a subsidy to Pan-American Airways, that the ad­ there is no reason why the Committee on Expenditures should ministration should consider the ad\1sability of having the investigate what the relief act authorizes done. Government insurance agency .write this insurance instead Al3 far as the Committee on Expenditures having had one of the Roosevelt family. meeting is concerned, that statement is true. The commit­ Mr. GIFFORD. Mr. Chairman, I move to strike out the tee had one meeting and it went through its entire calendar. last two words, merely in order that I may make a few brief The chairman was ordered to report one bill. He followed remarks. Last Friday afternoon's colloquy has been referred the instructions of the committee, the bill was reported, it to. The gentleman from Ohio [Mr. CLEVENGER] stated that has been passed by the House and is now in the Senate. The he had been placed on the Committee on Expenditures. I chairman was instructed to secure some reports from Gov­ am indeed sorry for him, if he thought he was being placed ernment agencies on other bills, the letters went out the on an important committee for that committee is not al­ next day, acknowledgments have been received saying the lowed to function. The illustration just given by my good reports will be sent to the committee as soon as possible. friend from Missouri [Mr. . CocHRAN] shows what the com­ Since that meeting two bills have been referred to the mittee could do. If he could do so well in saving insurance committee. Both of them are duplicates of bills already payments, think of the great savings he could accomplish­ received by the committee. through that committee. I have complained bitterly for 5 Therefore it. is not necessary to call the members of the years on this floor because I was assigned as the ranking committee together when there is nothing for them to con­ member of that supposedly very important committee, induc­ sider and will not be necessary until the reports from the ing me to forego requests for a real committee. I greatly departments are received . . sympathize with those who are assigned to this committee. It so happens there is something in the hearings on this It is apparently unthinkable that the Democratic side of bill that shows that the Committee on Expenditures does the House would investigate anything ·happening during their" function. administration. The chairman could not get any expression For years the· Government paid insurance companies large of willingness from the leaders to look into ·extravagances premiums to insure valuable shipments. When this matter or inefficiency of officials. Plenty of these have been por­ came to the attention of the committee we .held an investiga­ trayed to you in magazines and newspapers and from the tion, and a law was passed which provided for setting up :floor of the House but the committee refrains from taking funds in the Treasury Department to insure the Government's any notice thereof. No spender was ever summoned before valuable shipments. In 10 years prior thereto there was paid that committee except in one instance, and then it had to be to insurance companies over $3,000,000 in premiums. at the instance of a Democrat. The gentleman from Ohio Two days after this bill became a law a deficiency bill was [Mr. CLEVENGER] need .not think that he can successfullY before the House. I drew up an amendment, took it to the make a motion in that committee to summon anybody, unless gentleman from New York [Mr.. TABER] and the gentleman it is one, or something, of no importance. from Virginia [Mr. WooDRUM], and they agreed to the amend­ It must be a peanut matter. One Democrat did have the ment. It was added to the bill, the fund was set up, and we nerve to refute Harry Hopkins' testimony on the one day stopped paying the premiums to the insurance companies. we were functioning, and just a day or two ago I found a Now, what happened? Since that law was enacted several printed copy of thos.e hearings, and it was amazing to read years ago there has been taken out of that fund exactly $226; that colloquy with Mr. Hopkins. We all appreciate very in other words, that one act of the Committee on Expendi­ much the distinguished gentleman from North Carolina tures, for which the entire membership of the committee [Mr. WARREN], but it was he who acridly said, "The gentle­ deserve credit, although I was the author of the bill, has saved man from Massachusetts [Mr. GIFFORD] is the only one annually more than the amount of money that is paid in who desires to conduct this inquisition." I .demanded that salaries to the entil·e membership of the committee. If you he take the word "inquisition" out of the record, but it is desire to check on this statement, see page 238 of the hearings. there. I could not proceed to question Mr. Hopkins because Whenever the gentleman from Ohio [Mr. CLEVENGER] has so many Democratic Members insisted on getting into the anything to place before the committee that is worth looking conversation in order to protect the witness. But I did find, into, if the gentleman will present it to the committee, I in looking over the record, that the Member of kindly mem­ will guaxantee him it will receive its consideration. Demand­ ory, Mr. Gasque, of South Carolina, did take my part and ing investigations is one thing and submitting to the commit­ declared, "Yes, they are ruining the South and·paying more tee evidence that will justify an investigation is another. in relief than the farmers can pay, and we cannot hire Show the chairman of the committee, who is from Missouri, anybody to work." If you ever wish to read an interesting sometl:1ing worth while if you want an investigation. hearing, get a copy of that record. You will become better Mr. SCHAFER of Wisconsin. Mr. Chairman, I rise in op­ acquainted with Harry Hopkins. That was the only in­ position to the pro forma amendment in order to take stance of any importance whatsoever that committee has advantage of the kind invitation extended by the gentleman pretended to function during all these years--a committee, from Missouri [Mr. CocmtANJ, the present chairman of the think of it, headed by a man of such great ability-the Committee on Expenditures in the Executive Departments. gentleman from Missouri [Mr. CocHRAN] . . He is very watch­ The gentleman indicated a large saving to the taxpayers• ful of little things to prove that he is on the job, but he Treasury because the Government carried much of its own will not touch the big things or anything that might be insurance under legislation which his committee had en­ harmful to his party. acted. I rise at this time to call his attention to the fact Mr. KNUTSON. Mr. Chairman, will the gentleman yield? that the committee report on this bill, page 39, indicates Mr. GIFFORD. Yes. that the subsidies for foreign air-mail service have been Mr. KNUTSON. Congress has been in session now nearly increased. In fact for twice weekly trans-Atlantic service, 2 months. Can the gentleman tell the House of any plan estimated on the basis of 7 months' operation, a $996,000 that has been submitted by this administration in the last 6 increase is provided. The gentleman who . boasted about the years to put the twelve or fourteen million people who are saving of the taxpayers' money by reason of the Govern­ out of work back to work? ment going into the private field of insurance no doubt ob­ Mr. GIFFORD. Oh, yes; there Js a plan. served in the press a short time ago that the· Pan-American Mr. KNUTSON. What is it? Airways is going to operate a trans-Atlantic air service, and Mr. GIFFORD. The plan is the appeasement policy. the First Lady of the land is going to christen one of their They have appointed Harry Hopkins to apologize to business trans-Atlantic airplanes in the near future. He also must and beg the businessman to go ahead. . . . 1939 CONGRESSIONAL RECORD-HOUSE 1959 Mr. KNUTSON. Will that save the·country? and completion of post-office buildings heretofore allocated. Mr. GIFFORD. That iS their plan. They dare not pun­ That is, for which sums have been heretofore allocated. ish any longer, having 1940 to worry about. Mr. LUDLOW. Outside of the District of Columbia, yes. Mr. KNUTSON. The gentleman undoubteclly read in the Mr. LUTHER A. JOHNSON. Outside of the District of newspaper this morning or yesterday morning that Mr. Columbia, yes. There are a great many Members of the Hopkins announced to the country that they were through House, and I am one of those, who have within thejr dis­ now With the social experimentations, and they were going tricts post offices where the receipts are sufiicient to make to work to put the country back on a self-supporting basis. them eligible for the construction of a new building, and Mr. THOMAS F. FORD. Will the gentleman yield at this where buildings are needed, and for which no allocations point? have heretofore been made, and I very much desire that Mr. KNUTSON. No; I do not. ·such be done. The question I desire to ask the chairman Mr. THOMAS F. FORD. That is not what Hopkins said. of the committee is, if the amount of the bill as framed Mr. KNUTSON. The gentleman should get permission should be increased· from $30,000,000, am I right that that from the Chair when he interposes. would not extend its purpose so as to include new allo­ The CHAmMAN. The time of the gentleman from Mas- cations? ·sachusetts [Mr. GIFFORD] has expired. Mr. LUDLOW. The gentleman is right. An amendment Without objection the pro forma amendment is withdrawn. to the bill to include new allocations would not be in order. There was no objection. Mr. LUTHER A. JOHNSON. Those of us who desire new Mr. THOMAS F. FORD. Mr. Chairman, I move to strike post-office building allocations made under the terms of the ' ·out the last word. bill, could not frame an amendment that would be germane? Mr. Chairman, I have just listened to the distinguished Mr. LUDLOW. No, sir; it could not be done. gentleman from WiSconsin [Mr. ScHAFER] orate on a subject · Mr. LUTHER A. JOHNSON. Have the alloCations under about which he apparently does not know very much. He the 3-year program heretofore established been allocated? says we have appropriated a certain amount of money for Mr. LUDLOW. Yes; the allocations have been made. subsidizing the trans-Atlantic air mail. I wonder if the gen­ Mr. LUTHER A. JOHNSON. In other words, in order to tleman is opposed to that? The only reason, apparently, get funds for a new post-office building where no allocation that he is opposed to it is that he says the First Lady of the has been made, it will be necessary to have a new authoriza­ land wrote the insurance. Now, he knows and everybody tion bill passed? knows that that is a pure demagogic misstatement. Mr. LUDLOW. That is correct. Mr. SCHAFER of Wisconsin. Mr. Chairman, will the Mr. LUTHER A. JOHNSON. I thank the gentleman. gentleman yield? Mr. KNUTSON. Mr. Chairman, I move to strike out the Mr. THOMAS F. FORD. Yes. paragraph. Mr. SCHAFER of Wisconsin. I said that the firm of I would like to have the attention of the chairman of the Roosevelt & Sargent wrote the insurance. subcommittee. On page 3, beginning in line 12, I find it is Mr. THOMAS F. FORD. Of which Mr. James Roosevelt proposed to appropriate $580,000,000 for social security. Is is no longer a member. . that correct? Mr. SCHAFER of Wisconsin. From which firm the insur­ Mr. LUDLOW. That is correct. It is the old-age reserve ance agent, James Roosevelt, resigned as a partner and was account. ·supplanted by the First Lady of the land, wrote that insur­ Mr. KNUTSON. Will the gentleman please inform the _ance, and it is not a lie. House what has become of the $1,000,000,000 that has been Mr. THOMAS F. FORD. The First Lady of the land did collected under the Social Security Act, out of which only not write that insurance and you know it. about $10,000,000 has been paid out? What has become of Mr. SCHAFER· of Wisconsin. Then the newspapers must the other $990,000,000? I am asking for information. This all be wrong and the gentleman right? · is no laughing matter. Mr. THOMAS F. FORD. Yes. They are just like you. Mr. THOMAS F. FORD. It was covered into the Treasury. They are generally wrong. That is all that is the matter with the newspapers. Mr. LUDLOW. As the gentleman undoubtedly knows, the Mr. SCHAFER of Wisconsin. Is the gentleman indicting reason for setting up an old-age reserve account is that it the entire press of America? was necessary, as I understand it, that that be done to meet Mr. THOMAS F. FORD. I am-90 percent of them; yes. the requirements of the Constitution that we could not tax Mr. SCHAFER of Wisconsin. He is following the Presi­ for a specific purpose. dent then? The taxes, when collected, have to go into the general fund Mr. THOMAS F. FORD. Ninety percent of them indulge of the Treasury of the United States and are subject to the in misstatements or half truths. · general uses of that fund. The theory of the act is to set up [Here the gavel felLJ an old-age reserve account into which there shall be appro­ Mr. LUTHER A. JOHNSON. Mr. Chairman, I move to priated from time to time sums commensurate with .the taxes strike out the last four· words. · collected un.der the Old Age Security Act. The old-age reserve Mr. LUDLOW. Mr. Chairman, it is not my purpose to account takes the place of the taxes that have been collected, object to the gentleman from Texas proceeding, but we have and the administrative officials are scrupulously careful to a bill to consider. While this is all very interesting, I -think keep it even in amount With the taxes collected. I shall have to object to other extraneous speeches and in­ Mr. KNUTSON. As I understand it-and I have every sist that the discussion be confined to the bill after this. sympathy for the gentleman who is being compelled to defend The CHAIRMAN.. The gentleman from Texas is recog­ legalized embezzlement of the people's money-as I under­ nized. stand it, this money is collected from the employers and the Mr. LUTHER A. JOHNSON. Mr. Chairman, I am not employees for the purpose of being paid out in social-security on the floor for the purpose of any political sniping that benefits, and that about one thousand million dollars has seems to have been indulged in lately. I rise to get infor­ already been collected. Instead of spending the money for mation about the bill. I would like to ask the chairman of that purpose it is being used to pay the general operating the committee a question or two. expenses of the Government. Is that correct. Referring to the bottom of pa.ge 50, which provides for Mr. LUDLOW. I may say to the gentleman that there has the construction of public buildings outside of the District been a lot of unnecessary confusion about this matter. These of Columbuia, there is $30,000,000 appropriated. I have read . taxes are collected and Congress appropriates into a fund the hearings on that provision of the bill and have carefully .known as the old-age reserve account, the amounts, as near read the section of the bill to which I have referred, and I . ·as actuarial and other computations permit, which are the find the language of the bill and the hearings both indicate same in amount as the taxes collected. Under the law-these that this $30,000,000 is to be used only for the construction appropriations are invested in a security that is created by 1960 CONGRESSIONAL RECORD-HOUSE .FEBRUARY 2_7 .the Secretary of the Treasury especially for this purpose, a Mr. McCORMACK. The only difference was that the Government security which bears 3 percent interest. gentleman from Massachusetts was consistent, whereas the Mr. KNUTSON. They are invested in I 0 U's, are they not? gentleman from Maine was inconsistent. Mr. LUDLOW. They are just as good as any other security Mr. LUDLOW. Mr. Chairman, will the gentleman yield? of the United States Government, and presumably there is Mr. McCORMACK. I yield. nothing better than a United States Government security. Mr. LUDLOW. The gentleman understands, of course, Mr. ·KNUTSON. What I am getting at is that the money that there is no such thing as embezzlement of the Social that has been taken in has been spent, and we are going to be Security funds? taxed over again as the need arises; in other words, it amounts Mr. McCORMACK. Yes; the gentleman from Minnesota to double taxation. knows that it is a meaningless word, and he does not mean it Mr. LUDLOW. Oh, no. The gentleman is entirely in the financial sense, he means it in the political sense. mistaken. Mr. LUDLOW. Mr. Chairman, will the gentleman yield Mr. KNUTSON. I cannot yield further. I want to elaborate to me for one minute while I read what the Government a little. I would like to use a little of my own time. actuary said? Mr. LUDLOW. The gentleman is entirely mistaken. There Mr. McCORMACK. I yield to the gentleman. is no double taxation. Mr. LUDLOW. Here is what the Government actuary said Mr. KNUTSON. Upon whose authority does the gentleman when he came before the Committee on Appropriations: make that statement? The appropriations go into the Budget in the amount of taxes ' Mr. LUDLOW. Upon the authority of common knowledge collected, less administrative expenses; and, as Mr. Bell has said, the of how the act is being administered, on the authority of the appropriations and collections are practically in balance on an ac­ cumulative basis. These funds are placed in what might be called act itself, and on the authority of the Secretary of the Treas­ a trust fund. It is the same thing as the funds of an insurance ury combined. As I have said, the fund set up equals as company, except in the case of social security the funds are invested nearly as is possible the amount paid in in taxes. exclusively in Government bonds. Mr. KNUTSON. I cannot yield further, Mr. Chairman. That explains the whole transaction. The money that has been taken in for soCial-security purposes Mr. McCORMACK. I would like briefly to resume my _has been spent for the operating expenses of the Government, statement. · and as the need arises we are going to be taxed over again. The situation that exists is as follows: Under the social­ Instead of being taxed once we are going to be taxed tWice. security law the taxes are levied generally and brought. into As long as the American people want that.kind of admiriis­ the general fund, then appropriated out to a special fund. tration it is all right with me. I can pay my share of it. . Whether we like it or not ·we have to·do it that way. -No Mr. THOMAS F. FORD. · Mr. Chairman, _will the gentleman matter what scheme of social-security law we have, where it yield? is a contributory pension we have to do it that way unless Mr. KNUTSON. I yield to the gentleman from California we change the Constitution. for a question, not for a speech. By this same law· we say to the Secretary of the Treasury, Mr. THOMAS F. FORD. This is a question. What would in this case Secretary Morgenthau-at some future time it the · gentleman have the Government do with the money it may be another Secretary, "You have got to get 3 percent .collects .instead of investing it in Governm~nt bonds as the interest on this money that we appropriate to you that has law dire-cts? . come into the General Treasury and which we are appropri­ . Mr. KNUTSON . . It should not be collected until it is ating into the special fund." He can go out into the market needed . . [Applause.] A large reserve fund· to draw froni is and buy Government bonds, but if he cannot buy 3-percent ·merely an incentive to spend and spend. Government bonds he is for all practical purposes forced-to · [Here the gavel fell.] · issue special obligations. ·Mr. McCORMACK. Mr. Chairman, I rise in opposition to The Government guarantees 3 percent interest. If he can.. the pro forma amendment. not buy bonds carrying 3 percent interest, and you cannot Mr. Chairman,.! was rather interested to hear the remarks do that today, he has to issue what are ·called "special.obli­ of my distinguished friend froni Minnesota [Mr. KNUTsoN], gations," guaranteed by the Federal Government. If he can­ particularly when he used the sensational word "embezzle­ not buy bands in the open market which bear 3 percent ment." It is the easiest thing in the world to make_sensa­ interest, and no Secretary of the Treasury can do that today, tional remarks. It is the sensational statements that hit he has to issue special obligations. Whatever bond issues are the headlines, but what are the facts? The Committee on outstanding which bear 3-percent interest, and I refer to _Ways and Means is considering this question now, and the governmental issues, are held closely. · The average rate: of gentleman from Minnesota is a member .of t~s committee. interest on long-term indebtedness is about 2~ percent. So He knows the situation. The situation simply is as follows, we say to the· Secretary of the Treasury, "You have to. pay as I see it: If there is any change to be made let us make 3 percent interest. Therefore, if you cannot buy 3-percent it without charges of "embezzlement" and other sensational bonds you have to issue special obligations." . · ·_ ·charges when anyone with common sense-and .the gentle­ - · That ·is just exactly· the situation that exists. This ex­ man from Minnesota is overendowed with common sense­ plains how meaningless is the charge of embezzlement. knows there is no such thing involved. [Here the gavel fell.] What are the facts? When we passed the present Social Mr. BREWSTER. Mr. Chairman, I move to strike out the Security Act, in order to impose the taxes we had to provide last 11 words. that the money raised go into the general fund of the · Mr. Chairman, I did not begin this discussion, and I do not Treasury in order to obviate a constitutional question. I see care to have it terminated by the gentleman from Massa­ the keen eye of the former Governor of Maine who once said chusetts dragging me rather unceremoniously into the matter. he voted against a bill because it was unconstitutional but So far as the question of constitutionality is concerned, the very next day appeared before the Ways and -Means which I understand was raised by his discussion, I think it Committee and advocated the passage of a bill despite the should be perfectly clear to the Members of the House-and fact it might be unconstitutional . I think we are indebted to his very precise statement of the Mr. BREWSTER. .Mr. Chairman, will the gentleman situation-that it was · necessary to tax the money into the yield? general fund, then appropriate it for the special purpose of Mr. McCORMACK. Having referred to the gentleman, I social security in order to avoid constitutional questions. I yield. should like the gentleman to also inform the House whether Mr. BREWSTER. I would remind the gentleman that or not the question of the constitutionality of the appropria­ my stand on constitutionality was exactly the same as that tion is any different, even though the tax may not be the taken by the gentleman himself. subject of constitutional attack. l939, _CONGRESSIONAL RECORD-HOUSE 196l - If my reading of the constitutional decisions are correct, he said, "Do not be too much concerned over the question of the only reason the niethod adopted by the majority, so far constitutionality." as the Social Security Act is concerned, is able to continue, - Mr; BREWSTER. I st1ll do not understand that the gen­ whereas the A. A. A. taxes under the Hoosac Mills decision tleman from Massachusetts bas answered the question which were thrown out, was because some -ingenious gentleman I asked whether or not appropriating funds for social security downtown or elsewhere invented the idea that if the taxes is made constitutional by the fact that the tax is levied for were levied ·for the general fund it was not then the subject the general fund of the Treasury? It is my understanding of attack, whereas if it was levied for a specific purpose it that the Supreme Court has simply indicated that by this might then be thrown out. This did not affect in any way procedure the tax and the appropriation are made immune the question of whether or not under the Constitution we from attack. The appropriation may still be beyond the have the power to appropriate funds for those specific pur­ purview of the Constitution but there is no constitutional poses. I appreciate the claim of the gentleman from Massa­ method of challenging it. chusetts-that he is consistent in this situation. His con­ [Here the gavel fell.] sistency seems to consist in the consistency with which he Mr. McCORMACK. The gentleman from Massachusetts violates the Constitution. may say that the Supreme Court has passed upon that ques­ Mr. THOMAS F. FORD. Will the gentleman yield? tion and said that it is. Mr. BREWSTER. I yield to the gentleman from Cali­ [Here the gavel fell.J fornia. The pro forma amendments were withdrawn. Mr. THOMAS F. FORD. Is the gentleman opposed to the The Clerk read as follows: Social Security Act? Mr. BREWSTER. I voted for it. BUREAU OF CUSTOMS Salaries and expenses: For collectin~ the revenue from customs, Mr. THOMAS F. FORD. But the gentleman is opposed to for the detection and prevention of frauds upon the customs reve­ it now. He is opposed to the method of collecting the money nue, and not to exceed $100,000 for the securing of evidence of vio­ for it? lations of the customs laws; for expenses of transportation and transfer of customs receipts from points where there are no Gov­ Mr. BREWSTER. I have not said that. The gentleman ernment depositories; not to exceed $84,500 for allowances for living from Massachusetts brought me into this matter because of quarters, including heat, fuel, and light, as authorized by the act the position I took before the Ways and Means Committee, at approved June 26, 1930 (5 u. S. C. 118a), but not to exceed $1,700 for any one person; not to exceed $500 for subscriptions to news­ which time I stated that I would prefer a solution of this papers; not to exceed $2,000 for improving, repairing, maintaining, question along constitutional lines; that I regretted it had not or preserving buildings, inspection stations, ·office quarters, includ­ been adopted; that I would prefer that solution. I feel very ing living quarters for officers, sheds, and sites along the Canadian strongly about this question, and I do not believe the Con­ and Mexican borders acquired under authority of the act of June 26, 1930 (19 U. S. C. 68); and including the purchase (not to exceed stitution itself will be of much value if 10,000,000 remain $87,500), exchange, maintenance, repair, and operation of motor­ unemployed here much longer. propelled passenger-carrying vehicles when necessary for official use Mr. THOMAS F. FORD. The question is, Is the gentleman in field work; $21,153,000, of which such amount as may be neces­ sary shall be available for the payment of extra compensation earned questioning the constitutionality of the Social Security Act? by customs oiDcers or employees for overtime services, at the ex­ · Mr. BREWSTER. I am asking the gentleman from Massa­ peruie of the parties in interest, in accordance with the provisions chusetts if he will inform me whether the constitutional ques­ of section 5 of the act approved February 13, 1911, as amended by tion he suggests on the tax is not equally applicable to the the act approved February 7, 1920, and section 451 of the Tariff Act, 1930 (19 U. S. C. 261, 267, and 1451): Provided, That the receipts appropriation? from such parties in interest for such overtime services shall be · Mr. THOMAS F. FORD. That is not an answer, but I will deposited as a refund to the appropriation from which such over­ accept it. · time compensation is paid, in accordance with the provisions of section 524 of the Tariff Act of 1930 (19 U. S. C. 1524); for the cost Mr. BREWSTER. That is what I am asking the gentle­ of seizure, storage, and disposition of any merchandise, vehicle and man from Massachusetts. team, automobile, boat, air or water craft, or any other conveyance "Mr. McCORMACK: Will the gentleman yield? seized under the provisions of the customs laws, for the purchase of arms, ammunition, and accessories, and $493,360 shall be avail­ Mr: BREWSTER. I yield to the gentleman from Massa­ able for personal services in the District of Columbia, exclusive of chusetts. 10 persons from the field force authorized to be detailed under · Mr. McCORMACK. The gentleman from Maine is unnec­ section 525 of the Tariff Act of 1930: Provided, That no part of this appropriation shall be expended for maintenance or repair of essarily alarmed when he uses the word "unceremoniously." motor-propelled passenger-carrying vehicles for use in the District The state of mind of the gentleman from Massachusetts was of Columbia except one for use in connection with the work of the not to unceremoniously bring the gentleman into the debate. customhouse in Georgetown: Provided further, That hereafter sec­ It was simply to facetiously do so. tion 3648 of the Revised Statutes (31 U. S. C. 529b) shall not apply to_payments made for the_Bureau of Customs in foreign countries: The position of the gentleman from .Maine is this: When Provided further, That the offices of the surveyor of customs at the he appeared before the Ways and Means Committee advo­ port of New York and seven comptrollers of customs, with annual cating the Townsend plan, the gentleman from Massachu­ salaries aggregating $51,600, are hereby abolished. The duties im­ if posed by law and regulations upon the surveyor of customs at the setts asked the gentleman from Maine the gentleman from port of New York and comptrollers of customs, their assistants and Maine felt there was a constitutional question involved, and deputies are hereby transferred to, imposed upon, and continued in he said, "Yes." The gentleman from Massachusetts then positions now established in the Customs Service by or pursuant to asked the gentleman from Maine how he voted the day law, -as the Secretary of the Treasury by appropriate regulations shall specify; and he is further authorized to designate the titles by which before on the reciprocal-tax bill-"How did you vote?" "I such positions shall be officially known hereafter. The Secretary of voted against it." "Was the constitutional question one of the Treasury, in performing the duties imposed upon him by this the considerations involved in your vote against it?" And paragraph, shall administer the same in such a manner that the transfer of duties provided hereby will not result in the establish­ the gentleman from Maine frankly said "Yes." He voted ment of any new positions in the Customs Service. against the bill one day because of the const~tutional ques­ tion involved, and the very next day admitting there was a Mr. FITZPATRICK. A point of order, Mr .. Chairman. serious constitutional question involved he still urged the The CHAIRMAN. The gentleman will state it. members of the Ways and Means Committee to report out Mr. :mrTZPATRICK. Mr. Chairman, I make a point of the bill. order --.inst the language on page 16, line 14, beginning Mr. KNUTSON. Will the gentleman yield? with the words "Provided further," and extendjng down to Mr. BREWSTER. I yield to the gentleman from Minne­ line 5, on page 17, as legislation on an appropriation bill, espe­ sota. cially that part of the language beginning in line 23, which Mr. KNUTSON. May I suggest to the gentleman from states "and he is further authorized to designate the titles Massachusetts, it is just barely possible that the gentleman by which such positions shall be officially known hereafter." from Maine has read the letter that the President wrote to To me this seems to be purely legislation on an appropria­ the chairman of the Ways and ·Means Committee in which tion bill. LXXXIV--124 1962 CONGRESSIONAL ~ RECORD-HOUSE FEBRUARY 27 The CHAIRMAN. Will the gentleman from New York to the subject matter of the bill shall retrench expenditures by the reduction of the number and salary of the officers of the United state the citation again? States by the reduction of the compensation of any person paid Mr. FITZPATRICK. On page 16, line 23, beginning wi~h out of the Treasury of the United States, or by the reduction of the word "and" and reading, "and he is further authorized amounts of money covered by the bill. to designate the titles by which such positions shall be offi­ In order to justify language in an appropriation bill under cially known hereafter." the Holman rUle three things must concur: First, it must be The CHAIRMAN. Does the gentleman raise the point of germane; second, it must retrench expenditures in one of the order on the words he has cited? ways enumerated in the rule; and, third, the language em­ Mr. FITZPATRICK. On the entire proviso, on both pages. bodied in the provision must be confined solely to the purpose The CHAIRMAN. In other words, the point of order is of retrenching expenditures. directed ~gainst the proviso? · Mr. FITZPATRICK. Yes. The Chair has carefully examined the proviso to which The CHAIRMAN. Does the gentlelll:an from Indiana wish the point of order is directed and is of the opinion that the language is germane and that on its face it definitely shows to be heard? . Mr. LUDLOW. Yes, Mr. Chairman. I do not believe there a reduction of the omcers of the United States and a re­ is any necessity for extended comment on this point of trenchment of expenditures in the amount of $51,600. order. It is also apparent to the Chair that all the legislation to In 1932 a provision -in substantially identical language was be found in the paragraph is necessary to accomplish the included in the Treasury-Post Office appropriation bill. The purpose of retrenching expenditures. The Chair has been gentlewoman from California [Mrs. KAHNl made a point of fortified in his opinion on this proposition by a decision made order against the provision. The Chair rUled that the five by Chairman Howard on February 29, 1932, on a proposition considerations essential 1lo the application of the Holman almost identic~! with the pending proviso. In that instance rUle were present in the language proposed, namely, (1) that the Chair overruled the point of order on the ground that it was germane, (2) that it reduced the number and salaries the provision came clearly within the Holman rule. · of officers of the United States, (3) that it retrenched ex­ For the reasons stated the .Chair is of the opinion that the. penditures, ( 4) that the retrenchment was not specUlative language to which the point of order has been directed or argumentative but was specific, and (5) that every part clearly comes within the provisions of the Holman rule, and, of the legislation was essential. therefore, overrules the point of order. The point of order was, therefore, overrUled and I submit Mr. FITZPATRICK. Mr. Chairman, I offer an amend- it should be in the instant case. ment. ·· May I say further there is no doubt about the application The Clerk read as follows: of the Holman rule in cases where it is ascertainable that Amendment offered by Mr. FITzpATRICK: On page 16, line 14, there will be a substantial saving, whether or not any spe­ strike out, beginning with the colon down through the word cific amount of saving is indicated. However, in the instant "Service", on page 17, line 5. case we have the peculiarly advantageous position of being Mr. FITZPATRICK. Mr. Chairman, last year there was able to certify to the exact amount in dollars and cents that a bill submitted to the Ways and Means Committee abolish-· will be saved, namely, $5~,600. Therefore, I submit to the ing these positions, and they refused to take favorable action Chair this comes clearly within the Holman rule. I direct on the bill, and recommended its disapproval. the Chair's attention to the fact that we have complied I have always been opposed to legislation on appropriation scrupulously with the Ramseyer rUle, and he will find set bills. I believ~ the committee is going VE;lry far when th_ey forth on page 47 of our report the text of existing legisla­ attempt to legislate, especially when a similar bill was before tion and the text of the legislation we propose in place of it. the Ways and Means Committee at the last session. Having done this, we have only to comply with the Holman The committee after recommending the abolishment of rule to make the provision invulnerable to a point of order, the offices of the smveyor of customs at the port of New and this we have done. I ask for the ruling of the Chair. York and seven comptrollers of customs whose salaries total Mr. FITZPATRICK. Mr. Chairman, the gentleman from $51,600, created 17 new positions iii the same department Indiana states there will be a saving of $51,600. If the whose salaries will total $51,000, which is just $600 less than Chair will refer to page 18 of the report he will see· that new the total salaries for the positions that were abolished. The positions involving a total of $51,000 will be created in the taxpayers will only save $600. If my amendment is de­ same department so the saving is just $600. Therefore, any feated it means that the surveyor of customs at the port claim that there will be a saving of $51,600 is just not so. of New York and the comptrollers in Boston, New York, The report shows new positions are being created in the Philadelphia, Baltimore, New Orleans, San Francisco, and same department. Chicago will be eliminated. Mr. MARCANTONIO. If the gentleman will yield, may I These positions have been established for many, many say that this particular proviso takes powers away from one years. branch of a department and confers them on another, which About 1,800 employees come under the surveyor of the clearly is legislation. port of New York. These positions were created by legisla­ Mr. LUDLOW. Of course, the one has no connection, tion and if they are to be abolished, let the Members of relation, or relevancy to the other. All that is necessary for this House abolish them by legislation duly enacted, but do us to say is that in this transaction by abolishing certain not let it be done by the Appropriations Committee. It is positions we make a saving of $51,600. If we appropriate a time we stop the Appropriations Committee, of which I am similar amount of money to another branch for some other a member, from coming in here with legislation on appro­ purpose, what connection does that have with this? priations bills. Mr. FITZPATRICK. The money is to be appropriated to with in the same department for men to perform the same duties as I hope the Members of this House will agree me the comptrollers whose positions you are abolishing. this matter and vote for my amendment and notify the AP­ The CHAIRMAN. The Chair is ready to rule. propriations Committee that they can no longer bring legis-: lation of this nature in here on appropriation bills. The gentleman from New York [Mr. FITZPATRICK] makes the point of order against the proviso on page 16 on the I ask for the adoption of my amendment. [Applause.] grounds that it embraces legislation in an appropriation bilL Mr. O'NEAL. Mr. Chairman, I rise in opposition to the The gentleman from Indiana contends that although it is amendment. legislation on a~ appropriation bill it comes within the Mr. Chairman, the psychology around a proposition of this Holman rule and is therefore in order. The Holman rule sort is extremely interesting. Here the Appropriations Com­ may be found in the second sentence of clause 2 of rule XXI, mittee is charged with the responsibility of trying to defend and is as follows: · the taxpayer and to promote the best interests of the Gov­ Nor shall any provision in any such bill or amendment thereto ernment in the work of its department, and suddenly- we step changing existing law be 1n order, except such as being germane on somebody's toes. In the interest of economy, in the inter.. 1939 CONGRESSIONAL RECORD-HOUSE 1963 est of trying to help the taxpayer and to do our job, we step ciple. The Committee on Ways and Means, just as eager to on somebody's toes because a job is going to be abolished. save a dollar, just as intellectual as the Committee on Appro­ It is not the purpose of the Appropriations Committee to priations, had this matter under consideration. Treasury try to save the job of somebody who is not doing any work. experts at that time tried to cut out the surveyor of customs I cannot understand how any Member can stand on the floor at the port of New York, and the Ways and Means Com­ here and defend the proposition when the testimony is that mittee, after very careful consideration, told them that it there is no duty to be performed or that they do perform, should not be done, and what happened? The Treasury then and that the people holding the positions are absolutely came before the Committee on Appropriations and asked that useless as far as the department is concerned, and that it what they were unable to accomplish through a legislative is a pure 100-percent waste of Government money. I do not committee shall now be accomplished through emasculation. see how anyone can try to defend it and say, "No; we must I am asking the Members of this House, regardless of the let the fellow who is holding this job stay on and receive committee to which they belong, whether they intend that money for work he does not do or work that is not needed." clerks and others from executive departments shall come be­ How can any argument be made by the Appropriations fore a subcommittee of the Committee on Appropriations and Committee on any subject if we are willing to stand up here gain, by artifice or circumvention, that which a legislative and defend a proposition that represents a 100-percent waste committee deliberately refused to grant them. I think it is a of Federal money? question of honor, a question of respect of one committee for Mr. FITZPATRICK. Mr. Chairman, will the gentleman another, to say to representatives of bureaus or departments yield? in unmistakable terms that such things do not occur. They Mr. O'NEAL. If I have time when I get through with this cannot appear before one committee and be denied a certain statement, I shall yield. request and then go to the Committee on Appropriations and Let us read what the Bureau had to say about this. We by another method gain their end. I think if the Committee always call them in for hearings and we always ask their on Appropriations will do the right thing at this time, it Will advice. If a man is necessary, they say so; or if a position agree to have this provision stricken out of this bill in order is needed, they say so; and if it is not needed, it is very rarely that we might show these departments that we are still work­ that they say so; but they do say so in this instance, and ing together while legislating. Mind you, Mr. Chairman, I cur position is doubly substantiated becaue of that fact. am not asking now for the retention of the surveyor of the We asked Mr. Ballinger about it and he said: port of New York because it makes any difference to me, Yes, sir; in my opinion they can be dispensed with, because but because a great principle is herein involved, and the in every office we have competent assistants who are well quali­ Committee on Appropriations should agree to curb these de­ fied to do that particular job. partmental heads and petty officials who come before the Again: committee to circumvent the dictum of another great com­ · Mr. TABER. What duties do these people perform now? mittee of this House which has precedence and legislative Mr. BALLINGER. They are officials in charge of offices, and they jurisdiction in the matter under discussion. That is the are presumed to pass upon questions of policy and procedure issue before this House. that come to them in that capacity as heads of the offices. Mr. TABER. Are they primarily political appointees? Mr. THOMAS F. FORD. Mr. Chairman, will the gentle­ Mr. BALLINGER. They are political appointees. man yield? Mr. TABER. Are the deputy comptrollers under them civil-service Mr. DINGELL. Yes. employees? Mr. THOMAS F. FORD. Is it not peculiar, however, that Mr. BALLINGER. They are civil-service employees. • • • Mr. TABER. The collectors have no sort of supervision of them? while they are saving $51,000 on this elimination, they are Mr. BALLINGER. No, sir; they report directly to Washington. adding $300,000 more for other salaries? In the very office they are in charge of, the deputies Mr. DINGELL. I am not discussing that phase, because do not even report to the man over them, but report to I say there is considerable justification to sustain that action. Washington. The Committee on Ways and Means had considered that matter and acted favorably. The House passed that bill Mr. LUDLow. If it should be the judgment of the subcommittee that these comptrollers of customs may be dispensed with, would and that reflected the sentiment of the House, so for that that carry with it any suggestion of the elimination of any per­ reason I think there is justification in carrying out what we sonnel under them, or would the public service continue to func­ previously passed upon; but as regards the surveyor, I think tion with the various personnel in the offices? the Committee on Appropriations has been taken advantage Then the statement goes on to say they would function of by experts from the Treasury Department who intended with the same personnel. to circumvent the actions of the Ways and Means Com­ Then we have Mr. LUDLow's question: mittee which previously declared its position. By way of summation, you do not know of any reason why the Mr. SWEENEY. Mr. Chairman, will the gentleman yield? comptrollers should not be dispensed with, and you believe that it Mr. DINGELL. Yes. would be in the interest of the public service to dispense with them? Mr. SWEENEY. I believe the gentleman is sound in his . To which Mr. Ballinger replied "yes" and Mr. Dow said: argument, and the House ought to take a stand to protect That is correct. the rights of the different committees. If the argument of That is the whole question. You can read between the the gentleman from Kentucky [Mr. O'NEAL], who preceded lines. I do not have to expand on that. There are seven posi­ the gentleman from Michigan, is sound, that Mr. Ballinger tions where there were no duties to be performed and for can come before a committee and say, "We have competent which there is no justification. assistants, and, therefore, we do not need the head of the Mr. FITZPATRICK. Then why did you create the new department," why not abolish all of the collectors of cus­ positions that will cost the taxpayers $51,000 for the same toms throughout the country and have the work done by work? · assistants? Mr. O'NEAL. They were not doing the same work. Mr. DINGELL. And why should they come before the Mr. FITZPATRICK. Exactly the same work. Their account Committee on Appropriations with their appeal when they is going on now. were told definitely by the Committee on Ways and Means Mr. O'NEAL. The positions that we created are held by that their recommendations were disallowed? The bill civil-service employees, and they were doing the same work known as the Customs Administrative Act was passed by the and these were doing no work. House and specifically provided that the surveyor of the port Mr. FITZPATRICK. How about the post offices throughout of New York shall remain. the country? Are they political jobs? Mr. O'NEAL. Mr. Chairman, will the gentleman yield? The CHAmMAN. The time of· the gentleman from Mr. DINGELL. Yes. Kentucky has expired. Mr. O'NEAL. The gentleman is speaking in terms of Mr. DINGELL. Mr. Chairman, I move· to strike out the honor and right, but what right have we to vote a dollar last wor~_ ~o me this 1s a question of a vecy importAnt l?rlJl..w · f~ services not performed.?. 1964 .CONGRESSIONAL RECORD-HOUSE FEBRUARY 27 Mr. DINGELL. The Ways and Means Committee con­ Mr. THOMAS F. FORD. I was gomg to ask why· cut sidered that phase with as much thoroughness and as con­ $51,000 in one place and spend it in another? scientiously as did the Committee on Appropriations. It was Mr. MAHON. We cut $51,000 and we increased the ap­ admitted that the surveyor was not a sinecure, that he per­ propriation to raise the pay of some underpaid employees. formed valuable and important service. In the Health Department we added $2,.000,000 over the Mr. ENGEL. Is not this a case of where the Committee Budget estimate. We cut where we could and we made on Appropriations has brought -in a provision which saves increases in the appropriation where we thought they were money, and the chairman of the committee has interpreted justifiable. it as coming within the Holman rule? Is it not a fact that Mr. FITZPATRICK. Mr. Chairman, will the gentleman the ehairman has ruled that this comes under the Holman yield? rule and we have not violated any law or any rule? Mr. MAHON. I yield. Mr. DINGELL. I agree with my friend on a technical Mr. FITZPATRiCK. You created additional positions in basis, but this is a question of precedence and the rights of that very Department for $51,000. a legislative committee functioning within its own province Mr. MAHON. I beg to differ with my good friend. from being later. defeated by an official of an executive depart­ New York. I think he is in error in offering this amend­ ment. ment but in fairness I am glad to say that he is one of the Mr. ENGEL. And was not the Holman rule adopted for ablest and finest Members of the House and has been a the purpose of saving money? valuable member of the Committee· on· Appropriations for a Mr. DINGELL. This has nothing to do with the question long time. of saving inoney. Mr. O'NEAL. Mr. Chairman, will the gentleman yield? . The CHAIRMAN. The time of the gentleman from Mr. MAHON. I yield. Michigan has expired. Mr. O'NEAL. I would like to answer the question which Mr. MAHON. Mr. Chairman, in this amendment offered the gentleman from California asked. One of them does by the gentleman from New York [Mr. F'ITzPATRI(:K] it is some work for the money and the other does no work. sought to prevent Congress from saving $51,000. It is urged Mr. MAHON. I thank the gentleman. by the gentleman from Michigan tMr. DINGELL] that as self­ Mr. COCHRAN. Mr. Chairman, will the gentleman yield? respecting Members of Congress we should vote for the Mr. MAHON. I yield. amendment offered by the gentleman from New York [Mr. Mr. COCHRAN. In 1928 I think it was this committee, FITZPATRICK], who seeks to keep on the pay roll, among others, in this same way, abolished the surveyors of the ports, one a gentleman who now draws $8,000 a year for a job, a kind of them in my own city, and I helped abolish them, because of political plum that he has, as comptroller of customs in they were useless. They were not needed. No harm came New York City. as a result of that. Mr. FITZPATRICK. Mr. Chairman, will the gentleman Mr. MAHON. The gentleman is not in favor of the yield? amendment, then? Mr. MAHON. Yes. Mr. COCHRAN. I am not. I am supporting the com­ Mr. FITZPATRICK. Does the gentleman consider a .post­ mittee. mastership in his district to be a political plum? [Here the gavel fell.] Mr. MAHON. Is that all the gentleman wants to know? Mr. TABER. Mr. Chairman, I rise in opposition to the I am not discussing that: · · amendment offered by the gentleman from New York [Mr. Mr. FITZPATRICK. Does the gentleman consider them FITZPATRICK]. political positions? The_gentleman is getting very patriotic Mr. HOOK. Mr. Chairman, will the gentleman yield for a all of a sudden about politics. little information? . Mr. MAHON. I quote from the testimony .of the repre­ Mr. TABER. Yes. sentatives of the Treasury Department and the Customs Mr. HOOK. Not being a member of either committee, I Bureau. I read the following from page 1338 of the hearing: would like information as to whether. or not the Appropria­ Mr. BALLINGER (Treasury) . If this particular position were abol­ tions Committee knew at the time the Treasury Department ished, the saving would he $51,000, and we would not .have to replace officials came before the committee that this question had them by anyone else in the CUstoms Service. Mr. Dow (Customs). That is correct. already been discussed before the Ways and Means Com- Mr. TABER (member of Appropriations Committee). You would not mittee? · have to add to your employees list any personnel to take care of Mr. TABER. The Appropriations Committee did not their work? . know-at least, I did not know. I will not say about the Mr. BALLINGER. No, sir. Mr. McLEoD (member of the Appropriations Committee). No ad­ Appropriations Committee, but I did not know at the time ditional money would be l'equired? the hearings were held that the matter bad been before the Mr. BALLINGER. No, sir; there would be a net saving of the salaries Ways and Means Committee. I did not know it at the time of ihe comptrollers. the bill was maTked up. But even so, th-e House adopted It was asked that those positions in the cities of Boston, rules when it organized, and it said the Committee on Awro­ New York, Philadelphia, Baltimore, New Orleans~ San Fran­ priations could bring in a bill germane to the subJect matter cisco, and Chicago be eliminated. which shall retrench expenditures by the reduction of the Mr. THOMAS F. FORD. Will the gentleman Yield? number and salaries of officers of the United States. Mr. MAHON. I decline to yield. There is nothing that we So that clearly, just as the chairman of this committee has are attempting to do that is contrary to the rules of pro­ ruled, the Appropriations Committee was entirely within its cedure of the House of Representatives. If there were, of rights in bringing in this bill to get rid of these seven super­ course, the chail'man would see to it that the .rules of the fluous positions which pay an average of $7,000 each, and House were followed. It is true that for the purpose of in­ which are absolutely useless, and where the occupants of creasing the pay of some of the underpaid people in the those positions do absolutely no work. The Department does Customs Service and for the purpose of raising the pay of not want them. They are ashamed of them. others some additional appropriation was made, but we did I understand one of them-just· think of it-used to come not knowingly appropriate for anybody where his services to the office once in 2 weeks to get his pay ch~k. but now were not needed by the Government. I ean hardly see how that has become too burdensome~ and be is not able to come any Member can vote to spend $51,000 of the people's money in once in 2 weeks. He has his check mailed to him. when there is no reason under heaven to spend it, and the Mr. FITZPATRICK. Mr. Chairman, will the gentleman Treasury Department, charged with the performance of this yield? work, says so. Mr. TABER. I yield. Mr. THOMAS F. FORD. Mr. Chairman, will the gentle­ Mi. FITZPATRICK. Is that in the hearings? man yield? Mr. TABER. It was information-that was giwn to the Mr. MAHON. I yield. committee. 1939 CONGRESSIONAL RECORD-HOUSE 1965 . Mr. FITZPATRICK. Is it in the hearings? The question is, Is this an economy House ·or is it a House Mr. TABER. It was not printed in the hearings, but it that wants to pile expenditure upon expenditure and throw is true. I do not see .why we should hand out $51,000 for a way money? Here is the touchstone. that kind of a proposition. [Here the gavel fell.] Now, let me point to another fact. The money that was The CHAIRMAN. All time on this amendment has ex­ allowed to improve auditing conditions in the field goes ·to pired. regular civil-service employees who are going to work and The question is on the amendment offered by the gentle­ bring it up to date. I cannot see any analogy between that man from New York. item referred to on page 18 of the report and the cutting out The question was taken; and on a division (demanded by of the seven useless jobs. Mr. DINGELL) there were-ayes 28, noes 88. Mr. FITZPATRICK. Mr. Chairman, will the gentleman So the amendment was rejected. yield for a further question? The Clerk read as follows: Mr. TABER. I yield. · BUREAU OF INTERNAL REVENUE Mr. FITZPATRICK. How many years have these been Salaries and expenses: For salaries and expenses in connection with the assessment and collection of internal-revenue taxes and useless positions? the administration of the internal-revenue laws, including the ad­ Mr. TABER. Oh, for a great many years. It is a good ministration of such provisions of other laws as are authorized by thing they are being abolished, because it will get rid of or pursuant to law to be administered by or under the direction of the Commissioner of Internal Revenue; including the Commis­ seven leeches on the pay roll of the United States for all sioner of Internal Revenue, Assistant General Counsel for the time. Bureau of Internal Revenue, an assistant to the Commissioner, a Mr. LAMBERTSON. Mr. Chairman, will the gentleman special deputy commissioner, five deputy commissioners, one stamp agent (to be reimbursed by the stamp manufacturers), and the yield? necessary officers, collectors, deputy collectors, attorneys, experts, Mr. TABER. I yield. agents, accountants, inspectors, investigators, chemists, supervisors, Mr. LAMBERTSON. I ask the gentleman from New York storekeeper-gagers, guards, clerks, janitors, and messengers in the District of Columbia, the several collection districts. the several [Mr. FITZPATRICK] how many years they should be useless divisions of internal-revenue agents, and the several supervisory before they are taken off the pay roll? [Laughter and ap­ districts, to be appointed as provided by law; the securing of evi­ plause.] dence of violations of the acts, the cost of chemical analyses made by others than employees of the United States and expenses inci­ Mr. LUDLOW. Mr. Chairman, I rise in opposition to the dent to such chemists testifying when necessary; telegraph and amendment. telephone service, rent in the District of Columbia and elsewhere, Mr. Chairman, this is a very simple proposition, resolving postage, freight, express, necessary expenses incurred in -making investigations in connection with the enrollment or disbarment of itself into the question: Do we want to save $51,600 or do we practitioners before the Treasury Department in internal-revenue want to throw away $51,600? This is practically all there matters, expenses of seizure and sale, and other necessary miscel­ is to it. laneous expenses, including stenographic reporting services; for the acquisition of property under the provisions of title III of the I regret to find myself in disagreement with my esteemed Liquor Law Repeal and Enforcement Act, approved August 27, 1935 colleague on the Appropriations Committee. The gentleman (49 Stat. 872-881), and the operation, maintenance, and repair of from New York [Mr. FITZPATRICK] is a very valuable Member property acquired under such title III; for the purchase (not to of this House and he always protects his district very nicely exceed $25,000), exchange, hire, maintenance, repair, and operation of motor-propelled or horse-drawn passenger-carrying vehicles and very adequately. One has to admire him for it, but when necessary for official use of the Alcohol Tax Unit in field that is no reason why we should stand here today in a time work; printing and binding (not to exceed $525,000); and the pur­ of widespread distress and colossal deficit financing and chase of such supplies, equipment, furniture, mechanical devices, laboratory supplies, law books and books of reference, and such throw away $51,600. other articles as may be necessary for use in the District of ·Colum­ . This was not of our initiation, I may say. This proposal bia, the several collection districts, the several divisions of internal­ was initiated in the ad~inistrative offices of the Treasury revenue agents, and the several supervisory districts, $59,772,500, Department, the Department that administers the Customs of which amount not to exceed $10,812,000 may be expended for personal services in the District of Columbia: Provided, That nQ Service. Secretary Morgenthau, the head of the Treasury part of this amount shall be used in defraying the expenses of Department, is a fellow citizen of the gentleman from New any officer designated above subpenaed by the United States court York [Mr. FITZPATRICK] and I am sure he understands the to attend any trial before a United States court or preliminary examination before any United States commissioner, which expenses needs of the Customs Service in New York as well as any shall be paid from the appropriation for "Fees of jurors and wit­ man on Capitol Hill. He sent Mr. Ballinger to us and Mr. nesses, United States courts": Provided further, That not more Dow of the Customs Service. than $100,000 of the total amount appropriated herein may be expended by the Commissioner of Internal Revenuerfor detecting. Mr. FITZPATRICK. Mr. Chairman, will the gentleman and bringing to trial persons guilty of violating the internal­ yield? revenue laws or conniving at the same, including payments for Mr. LUDLOW. No; I cannot yield. information and detection of such violation: Provided further, That not to exceed $942,000 of ~he total appropriated herein may Mr. Chairman, Mr. Ballinger and Mr. Dow came before our be expended for personal services of the Intelligence Unit, of which committee and told us that these places were useless, that not to exceed $50,500 may be expended in the District of Columbia. these people did not do anything, and that the places ought to be abolished. They made it plain to us that these offices Mr. LUDLOW. Mr. Chairman, I offer a committee amend­ are as superfluous and unnecessary as the fifth wheel of a ment. wagon would be. Acting on this information we abolished The Clerk read as follows: them. Committee amendment offered by Mr. LunLow: Page 20, line 10, The question arose here awhile ago as to the jurisdiction strike out "$59,772,500" and iQsert in lieu thereof "$59,877,500." of the Appropriations Committee. We have the highest re­ Mr. LUDLOW. Mr. Chairman, I may say in explanation gard for the Committee on Ways and Means and we respect of this amendment that it is offered simply to correct a it because it is a great committee and we are not reaching miscalculation that was made. It does not in any way have out to assume any jurisdiction that belongs to that com­ any significance or indicate any change of attitude on the mittee, but the gentleman from Michigan [Mr. ENGEL] was part of the committee. absolutely right when he said that under the Holman Rule The CHAffiMAN. Without objection, the committee there is in matters that involve saving a concurrent juris­ amendment will be agreed to. diction between the legislative committees and the Appro­ There was no objection. priations Committee. We are entirely within our rights, and The Clerk read down to and including line 4 on page 27. our action is entirely proper in every way, when we try to Mr. LUDLOW. Mr. Chairman, I move that the Commit- bring about this slight reduction in the Federal pay roll. tee do now rise. Would anybody have any respect for us if we had failed to The motion was agreed to. bring in legislation to abolish these perfectly useless offices Accordingly the Committee rose; and the Speaker having after we had been advised of their uselessness? resumed the chair, Mr. BoEHNE, Chairman of the Committee 1966 CONGRESSIONAL- RECORD-· HOUSE YEBRUARY 27 of the Whole House on the state of the Union, reported include therein a petition signed by 40 members of the fac­ that that Committee, having had under consideration the bill ulty of the Evening School of New York City. H. R. 4492, the Treasury-Post Office bill, 1940, had come to The SPEAKER. Is there objection to the request of the no resolution thereon. gentleman from California [Mr. GEYER]? LEAVE OF ABSENCE There was no objection. By unanimous consent, leave of absence was granted as Mr. EBERHARTER. Mr. Speaker, I ask unanimous con­ follows: sent to extend my own .remarks in the RECORD and to To Mr. JARRETT (at the request of Mr. RUTHERFORD), for include therein a speech delivered by the Hon. Henry Ellen­ the balance of the week, on account of sickness. bogen, a former Member of this body. To Mr. GIBBS (at the request of Mr. PETERSON of Georgia) The SPEAKER. Is there objection to the request of the indefinitely, on account of illness. ' gentleman from Pennsylvania [Mr. EBERHARTER]? To Mr. RoBERTSON, for March 1, on account · of official There was no objection. business. Mr. ALEXANDER. Mr. Speaker, I ask unanimous consent Mr. COCHRAN. Mr. Speake~-- to revise and extend my own remarks in the RECORD and The SPEAKER. For what purpose does the gentleman include therein a letter which I received from the Veterans from Missouri rise? of Foreign Wars, Department of Minnesota. Mr. COCHRAN. To submit a unanimous-consent request. The SPEAKER. Is there objection to the request of the The SPEAKER. The gentleman will state it. gentleman from Minnesota [Mr. ALEXANDER]? There was no objection. SELECT CO~TTEE ON GOVE~NT REORGANIZATION Mr. COCHRAN. Mr. Speaker, I have conferred with the CORRECTION ranking minority member, the gentleman from New York Mr. LELAND M. FORD. Mr. Speaker, on page 1852 of the [Mr. TABER], and I ask unanimous consent that the Select RECORD it is stated that I asked unanimous consent to extend Committee on Government Organization be permitted to sit my own remarks in the RECORD and to include therein a during the sessions of the House on Thursday, letter of Dr. Nylander, of the National Labor Relations Board. The SPEAKER. Is there objection to the request of the I ask unanimous consent that the words "a letter from" gentleman from Missouri? be stricken and the words "a news item from the Inglewood There was no objection. Daily News giving the speech of Dr-. Nylander" be inserted EXTENSION OF REMARKS in lieu thereof. The SPEAKER. Is there objection to the request of the Mr. WARREN. Mr. Speaker, I ask unanimous consent to gentleman from California [Mr. LELAND M. FoRD]? extend my own remarks by including an editorial from Mr. THOMAS F. FORD. Mr. Speaker, reserving the right today's Philadelphia Inquirer, and also an article by Gen. to object, permission was granted under this extension to Hugh Johnson on the new reorganization bill. include a letter from Dr. Nylander, of the National Labor The SPEAKER. Is there objection to the request of the Relations Board. The matter included in the RECORD was a gentleman from North Carolina? newspaper article by the Inglewood Daily News. I do not There was no objection. understand why anyone should confuse a newspaper article Mr. MURDOCK of Utah. Mr. Speaker, I ask unanimous with a letter from a public official. consent to revise and extend my own remarks and to in­ Mr. LELAND M. FORD. The fact that the word "letter" clude therein certain excerpts from documents published by is stated instead of "newspaper article" is simply an error the Senate with reference to silver. on the part of the reporter taking it down. I never-said The SPEAKER. Is there objection to the request of the "letter." I said "a newspaper article." The fact is that a gentleman from Utah? newspaper article was submitted and not a letter. I never There was no objection. had a letter, and it was an error in taking it down. Mr. McCORMACK. Mr. Speaker, 1 ask unanimous con­ Mr. THOMAS F. FORD. I know the gentleman never had sent to extend my own remarks on the bill H. R. 4042 and a letter. to include therein three brief tables. Mr. LELAND M. FORD. I never said that. It was an The SPEAKER. without objection, it is so ordered. error. There was no objection. Mr. WHilE of Idaho. Mr. Speaker, I ask unanimous con­ Mr. THOMAS F. FORD. I do not know about that. sent to extend my own remarks -in the ·RECORD and to in­ Mr. LELAND M : FORD. I do. clude therein an editorial comment on .the duty of Congress. Mr. THOMAS F. FORD. I know what is in the RECORD. Mr. MARTIN of Ma-ssachusetts. Mr.· Speaker, I think the The SPEAKER. Is there objection to the request of the gentleman has sufficiently explained it. gentleman from Idaho [Mr. WmTE]? There was no objection. Mr. THOMAS F. FORD. As it stands there is a violation Mr. SPARKMAN. Mr. Speaker, I ask unanimous consent of the rules of the House. · to extend my own remarks in the RECORD and to include Mr. SCHAFER of Wisconsin demanded the regular order. therein a certain table. The SPEAKER. The gentleman from California [Mr. The SPEAKER. Is there objection to the request of the THoMAs F. FoRD] has the floor under a reservation of objec­ gentleman from Alabama [Mr. SPARKMAN]? tion. There was no objection. Mr. SCHAFER of Wisconsin. Mr. Speaker, I demand the Mr. EDMISTON. Mr. Speaker, I ask unanimous consent regular order under the rules of the House. . to extend my own remarks in the RECORD and to include Mr. THOMAS F. FORD. I have the floor on a reservation . the_rein a resolution adopted by the Legislature of West Vir­ Mr. SCHAFER of Wisconsin. I am demanding the regular ginia on H. R. 1888. order, and I can take the gentleman of! the floor. The SPEAKER. Is there objection to the request of the The SPEAKER. · Is there objection to the request of the gentleman from West Virginia [Mr. EDMISTON]? gentleman from California [Mr. LELAND M. FoRD]? There was no objection. Mr. THOMAS F. FORD. Mr. Speaker, I object to the re- Mr. JOHNSON of Oklahoma. Mr. Speaker, I ask unani­ quest. I want to make this clear. mous consent to extend my own remarks in the RECORD and Mr. TABER. Mr. Speaker, I demand the regular order. to include th~rein a couple of quotations from outstanding The SPEAKER. The Chair will take care of the situation. citizens of my State. Mr. THOMAS F. FORD. Mr. Speaker, I think the Chair The SPEAKER. Is there objection to the request of the should make a comment on this situation. gentleman from Oklahoma [Mr. JoHNSON]? The SPEAKER. Is there objection to the request of the There was no objection. gentleman from California [Mr. LELAND M. FoRD]? Mr. GEYER of California. Mr. Speaker, I ask unanimous Mr. THOMAS F. FORD. Mr. Speaker, I reserved the right consent to extend my own remarks· in the RECORD and to to object. · · 1939 ~ONGRESSIONAL ~ECORD-HOUSE 1967 The SPEAKER. . The regular order was demanded. representatives of the union involved in the dispute and that Mr. THOMAS F. FORD. I did not object. a refusal on the part of the employer to reopen negotiations The SPEAKER. Is there objection to the request of the on such a demand is not an unfair labor practice--the reason gentleman from California [Mr. LELAND M. FoRD]? for the holding being, as given by the Court, that such Mr. GEYER of California. Mr. Speaker, reserving the negotiations would be futile unless there was evidence that right to object, and I shall not object-- the conciliators had authority from the union to enter into Mr. SCHAFER of Wisconsin. Mr. Speaker, I demand the an agreement. regular order, and I ask that the rules of the House be The Court further holds that, where negotiations have enforced. been broken off, the employer is not required to seek out the The SPEAKER. The Chair must enforce the rules of the employees or their representatives and request further nego- House. The regular order has been demanded. tiations before employing new men: · Is there objection to the request of the gentleman from Had we amended the Wagner law, as for 2 years we have California [Mr. LELAND M. FORD]? known we should do, the costly litigation in these three and There was no objection. in many other cases might have been avoided and peace EXTENSION OF REMARKS between industry and labor, as well as in the labor unions, Mr. MONKIEWICZ. Mr. Speaker, I ask unanimous con­ been long ago established. sent to extend my own remarks in the RECORD and to in­ Mr. GEYER of California. Mr. Speaker, I ask unanimous clude therein an address made by my colleague the Hon­ consent to address the House for 1 minute. Ol'able ALBERT E. AusTIN on Thursday last over the radio. The SPEAKER. Is there objection to the request of the The SPEAKER. Is there objection to the request of the gentleman from California? gentleman from Connecticut [Mr. MoNKIEWiczJ? There was no objection. There was no objection. Mr. GEYER of California. Mr. Speaker, I merely wish to state that I am the one who objected in the Committee of the PERMISSION TO ADDRESS THE HOUSE Whole to the request of the gentleman from California [Mr. Mr. HOFFMAN. Mr. Speaker, I ask unanimous consent LELAND M. FoRD] to revise and extend his remarks. At this to address the House for 1 minute to call attention to three time I wish the RECORD to be clear that I am no longer ob­ Supreme Court decisions rendered today, and to revise and jecting to what the gentleman from California wishes to do. extend my own remarks in the RECORD. Mr. LELAND M. FORD. Mr. Speaker, I ask unanimous The SPEAKER. Is there objection to the request of the consent to address the House for 1 minute. gentleman from Michigan? The SPEAKER. Is there objection to the request of the There was no objection. gentleman from California? Mr. HOFFMAN. Mr. Speaker, the Supreme Court today There was no objection. handed down three decisions, a clear understanding of which Mr. LELAND M. FORD. Mr. Speaker, this is simply a mat­ will do much to promote industrial peace. ter of a misunderstanding of. the reporter in connection with The first two of these decisions should answer all doubts his transcription of the record. I never at any time said I which may still exist on the part of the Secretary of Labor had a letter I wished to insert ·in the RECORD. I simply asked as to the legality or the illegality of the sit-down strikes. to insert a speech that was reported in the Inglewood Daily They hold in no unmistakable terms that the sit-down strike News, which I did. There is no use of taking exception to is illegal. that because I know what I said. The evidence is there that It is regrettable that Attorney General Murphy did not I never submitted any letter, but I did submit the statement. act upon this theory during the time he was Governor of This is just taking technical exception to that, and I do not Michigan, and especially during the period from the 1st day see any particular reason it should be done. The RECORD of January 1937 until the fall of that year. should be perfectly clear in respect of it. In the case of National Labor Relations Board against EXTENSION OF REMARKS Fansteel Metallurgical Co., the Supreme Court held that the Mr. ANGELL. Mr. Speaker, I ask unanimous consent to N. L. R. B. was in error in holding that men who took part extend my own remarks in the RECORD and include therein in a sit-down strike could not be discharged by their em­ a resolution from the Legislature of the State of Oregon. ployer; that they must be reinstated with back pay; and that The SPEAKER. Is there objection to the request of the prior unfair labor practices on the part of the employer gentleman from Oregon? deprived it of all right to discharge an employee who had There was no objection. violated the law. The decision of the Supreme Court rendered today in the PERMISSION TO ADDRESS THE HOUSE case of National Labor Relations Board against the Sands The SPEAKER. Under a previous special order the gen­ Manufacturing Co. is a repudiation of the contention of the tleman from Oklahoma [Mr. NICHOLS] is entitled to be recog­ National Labor Relations Board that an employer must con­ nized for 20 minutes. The Chair does not see the gentleman tinue to bargain indefinitely with employees. from Oklahoma on the floor. The decision holds that, where the employer has sincerely Mr. RAYBURN. Mr. Speaker, I am informed by the gen­ and in good faith made an effort to reach an agreement with tleman from Indiana that the gentleman from Oklahoma the employees and they have been unable to do so, it may spoke under general debate this afternoon and may not de­ then employ new men in the place of those with whom it sire to speak at this time. could not agree upon terms. The SPEAKER. The Chair assumes that the gentleman The case also holds that, where the union and the em­ has waived his rights under the order by not being present. ployees violate their contract prior to the date when the ENROLLED BILLS SIGNED employer refuses to meet them for collective-bargaining Mr. PARSONS, from the Committee on Enrolled Bills, purposes and has replaced the old employees with new ones, reported that that committee had examined and found truly he cannot be held guilty of an unfair labor practice. enrolled a bill and a joint resolution of the House of the Both of these cases reaffirm the doctrine announced in the following titles, which were thereupon signed by the Speaker: Jones-Laughlin case, which laid down the doctrine that the H. R. 4011. An act to continue the functions of the Com­ act does not deprive the employer of his right to select his modity Credit Corporation and the Export-Import Bank of own employees, so long as he does not make their union Washington, and for other purposes; and activity an excuse for their discharge. H. J. Res.l85. Joint resolution making additional funds In the case of National Labor Relations ·Board against available for salaries and expenses, Federal Housing Admin­ Columbian Enameling & Stamping Co., Inc., the Court laid istration. down the doctrine that conciliators from the Labor Depart­ BILL AND JOINT RESOLUTION PRESENTED TO THE PRESIDENT ment making a demand upon the employer for the reopening Mr. PARSONS, from the Committee on Enrolled Bills, · of negotiations for collective bargaining are not neces~arpll: reportep t~t that. commit~ee did on this day present to, the 1968 PO~G~ESSIONAL ~ECORD-HOU.S~ FEBRUARY 27, President, for his approval, a bill and joiilt· resolution of the common carriers by water in interstate commerce, and for House of the following titles: other purposes. H. R. 4011. An act to continue the functions of the Com­ The Committee on Merchant Marine and Fisheries will modity Credit Corporation and the Export-Import Bank of hold public hearings in room 219, House Office Building, Washington, and for other purposes; and ·washington, D. C., at 10 a. m., on the bills and dates listed H. J. Res.185. Joint resolution making additional funds below: available for salaries and expenses, Federal Housing Admin­ Tuesday, March 14, 1939: istration. H. R. 180, H. R. 202, construction of a Nicaraguan Canal; ADJ'OURNMENT H. R. 201, additional facilities for Panama Canal; H. R. 2667, Mr. LUDLOW. Mr. Speaker, I move that the House do construction of a Mexican Canal. now adjourn. In listing the bills to be heard on March 14, 1939, House The motion was agreed to; accordingly (at 4 o'clock and Joint Resolution 112 (TINKHAM) , to create a commission to 36 minutes p. m.) the House adjourned until tomorrow, study and report on the feasibility of constructing the Mexi­ Tuesday, February 28, 1939, at 12 o'clock noon. can Canal, was inadvertently omitted from the notice. This is to advise all interested parties that House Joint Resolution 112 will be considered at that time with the fol­ COMMITI'EE HEARINGS lowing bills: H. R. 180 (lzAc), relative to the construction of COMMITTEE ON WAYS AND MEANS a Nicaraguan Canal; H. R. 202 (BLAND), relative to the con­ Pliblic hearings will continue Tuesday morning, February struction of a Nicaraguan Canal; H. R. 201