~ongrcssionai - 1Rrcord United States of America PROCEEDINGS AND DEBATES OF THE 79th CONGRESS,. SECOND SESSION

S. 1363. An act to reimburse certain Navy PETITIONS AND MEMORIAL SENATE and Marine Corps personnel and former Navy Petitions, etc., were laid before the and Marine Corps personnel for personal Senate, or presented, and referred as FRIDAY, APRIL 26, 1946 property lost or destroyed as the result of water damage occurring at certain naval flnd indicated:

The potential possibilities of trade . that we may be strong competitors for ~rmy to become impotent. We permitted with the rest of the world are enormous. world trade, and thus stimulate a better our Navy to lose its effectiveness as an Our citizens represent only 5 percent of world economy. - up-to-date fighting force. We refused to the population of .the world, and yet There are many reason·s why we might arm the bases that might have helped before the war we created about 45 per­ not make this agreement, but we must secure the safety of our country. We cent of the industrial wealth of the always remember that oftentimes the . completely failed to develop an air force. world-and today, even more. If peace loans which help us the most and give us Now the shooting part of the Second can be maintained, the so-called back­ the greatest satisfaction are the ones World War has been won. After VE-day, ward countries of the world can be which gave us the most anxiety and cre­ and even before VJ-day, we joined the brought to a higher standard of living ated the greatest doubt in our minds United Nations. We have a present pol­ than ever before. This does not mean when we made the decision to execute icy tending to improved trade relations . .they will necessarily take business away them. We have joined the world bank and the from this country. It "means, rather, The alternative to making this agree­ monetary plan conceived at Bretton that we shall greatly expand the 'oppor­ ment is to refuse it. In future years I Woods. We now have the most powerful tunities which we h·ave to deal with· those do not want to find myself in the position navy in the world, and a strong army. countries. The machine tool, for in­ of having refused to help make this In industry we are the acknowledged stance-and many are made in Massa­ agreement possible, and then learn that leader in the world, and one of its two chusetts-is the· basic commodity of all our citizens in this country have lost most powerful nations. Thus certain re­ industry, and more than 50 percent of jobs because we have lost trade through sponsibilities as a leading world power the machine tools we ·manufacture are sterling blocs and sterling areas estab­ have devolved upon us. The agreement exported. Prosperity and a higher lished by England to regain her own which we are now debating is one of the standard of living in the other countries economy. I do not want to take the problems that we face as a world power. of the world will go a very long way chance of such an economic collapse in If we approve the agreement, time toward expanding and maintaining our England that the peace of the world may alone will tell whether we made a mis- own prosperity. . be endangered. Such a collapse can . take in doing so. Likewise, if we refuse As a world power, our opportunities only result in injury to our own citizens to approve it, only time alone will tell in the future world are great; but they :and our own economic future here in the whether we were right in doing so. I can be fully realized only by increasing United States. We cannot be economi­ prefer to accept the philosophy of going the number of countries that will deal cally prosperous here with England's forward along a course not well charted directly with us in dollars, and not in~ economy in chaos. but at least intended to lead to a more directly in the pound sterling. . Three billion seven hundred and fifty peaceful and prosperous world with bet­ Then there are the members of the million dollars is a very large sum of ter opportunities and more jobs for our British Commonwealth of Nations that money, but not too large when it is com­ citizens, than to approve the philosophy have their mutual trade agreements· with pared with tlie present annual income that we have done enough and that it is England. We want to get a fa~r share of this country. This sum could undoubt­ not necessary for us to go along with of their business. To accomplish tllis edly ' be used for other purposes within another new, but uncertain arrangement. result we are extending this credit to the United States. We want to balance I believe that in our consideration of England and are asking as one of the our budget. We want to cut our expenses. this whole problem it is not so much a conditions of the business deal that we, But we must decide whether in the long question, Can we afford to make this in due course, get an opportunity to · run it will be of greater advantage to us agreement? but, rather, Can we afford deal directly with these nations on an and our future well-being in the United not to make it? I shall vote in favor of equal basis with England. States to extend this credit to Great the pending joint resolution. The war has forced England to incur, Britain. The question for us to ask our­ Mr. SMITH. Mr. Presjdent, it has been in the form of frozen sterling balances, selves is, Will the making of this agree­ a great gratification to me to find myself foreign obligations to· the extent of ap­ ment create more jobs and bring more in accord with the distinguished Senator proximately $12,000,000,000. These are income and higher standards of living to from Tennessee [Mr. McKELLAR], who sterling balances; and until a medium is us here in the United States than to re­ spoke earlier today, and with the distin­ found by which they may be exchanged fuse it or to use the money for other guished Senator from Massachusetts for dollars, our trade is largely excluded purposes within our own borders? [Mr. SALTONSTALL], WhO has just com­ from this so-called sterling bloc. Eng­ · I have wondered many times why it pleted addressing the Senate with ref­ land and her Commonwealth of Nations, was not a misnomer to call this a British erence to the British loan. as well as the other sterling areas of the loan or credit agreement. It has seemed The remarks which I am about to make world, unless they can find some method to me that this was a poor method of on this subject were prepared by me more by which these sterling balances can be salesmanship on the part of our admin­ than a week ago, and before I had peard converted into dollars, must necessarily istration. It has seemed to me rather an the addresses which were delivered by protect their sterling creqits. That pro­ investment in the future prosperity of the distinguished Senator from Mich­ tection takes the line of expanding the our country. It is a credit that we are igan [Mr. VANDENBERG], and the distin­ so-called sterling areas in which trade advancing for a comparatively short guished Senator from Ohio [Mr. TAFT]. is conducted in sterling, and dollars are time when we compare 50 years with the I am glad to record here my appreciation excluded from that trade. This forces future growth and life of the United ·of the splendid analysis of the subject the world into a competitive system be­ States. A prosperous United States de­ ·which was made by both Senators. Of tween the countries that trade in dol­ pends upon the security and prosperity course, inasmuch as they arrived at dif­ lars and the countries that trade in ster­ · of the world. The prosperity of the world .ferent conclusions, it may be of jnterest ling. Such competition can only end in depends upon the countries of the world to point out that we have ·before us a furthering disagreements and economic trading with each qther. We live today subject which is amenable to different uncertainties. The obligations which we in a sick world which has yet to make an interpretations. In my judgment, in­ have incurred in the shooting war which established peace . . We can never expect dividual interpretations depend largely has just been ended demand our best ef­ to make a satisfaGtory peace with people on the point of view which each of us fort to restore the world to a healthy eco­ who are hungry, with people who are eco­ ·takes in approaching the entire matter. nomic trade basis. nomically sick, with people who cannot Mr. President, I shall vote in favor of I have stated that a third reason for look beyond the day in which they live the British loan with the positive convic­ extending a loan or credit may be to help because of their own hunger, and their tion that it is a "must" in the general a friend. We want to remember that inability to buy the necessaries of life. international trade policy of the United while England owes much to us, we owe After the First World War we did not States, and that such policy is a part­ much to the fortitude of the English join the League of Nations. We did loan an essential part-of our policy to co­ which held the fort in the dark days of large sums of money privately and pub­ operate in all measures supporting col­ 1940 and 1941. England and ourselves licly to other nations, and to private lective security and world peace. What­ are the great English-speaking Nations groups in other nations. At the same ever our past policy of international rela­ of the world. We hope that we shall al­ time we maintained high tariff walls tions may have been-call it isolationism, ways be good friends. We hope, too, around this country. We allowed our self-sufficiency, or nonentanglements- /1152 ·coNGRESSIONAL RECORD_:_SENATE .APRIL 26 we are now truly one world in this new In simplest terms, as I see it, the ques- . tional trade. Let us think of that, the and unexperienced atomic age. tion is whether we should extend to Great sterling area on the one hand, and Rus­ I wish to digress for a moment to Britain a credit of $3,7SO,OOO,OOO-plus sia on the other, with two different con­ emphasize how important I believe the $650,000,000 in payment for lend-lease cepts of trade, the British desiring to get atomic age to be in connection with this balances-in return for her promise to rid of controls in order to open up trade, controversy. repay principal with interest over a 50- and Russia offering a state trading The British loan, as I see it, is another year period starting at the end of 1951, proposition. milestone on the road to peace, just a-s and her pledge to give the fullest possible If the weight of British influence in was Bretton Woods and the _United su,pport to the kind of world trading foreign trade is thrown toward the Rus­ Nations Charter-just as is our support system which it is the declared policy sian pattern rather than toward ours, it to UNRRA and world rehabilitation­ of both the United States and the United is apparent that bloc trading, with its just as is our determination to help save Nations Organization to promote. That bilateral deals, exchange controls, im­ the starving millions. Each successive promise is the essence of this proposal. port and export quotas, subsidies, cur­ crisis must have our sympathetic under­ The sum we risk is great, as I have said, ·rency ·manipulations, and the like, will standing and aid. but financial risks have meaning only be tne prevailing pattern for foreign We have committed ourselves to a when related to resources and when con­ transactions. · It is a contest between a policy of international economic co­ sidered in terms of alternatives. The state trading closed system and an open operation, to the end that problems line of credit provided by the loan will free economy. affecting the economic relations of coun­ amount, at most, to a claim on two-fifths In self-protection, the United States tries may be dealt with through discus­ of 1 percent of our gross output for the 5- would have no alternative but to con­ sion and agreement rather than through to 6-year period over which it may be form to the dominant pattern. Should economic force. Our policy has two used. I am not belittling the amount, the dominant pattern be state trading, aims: First, we wish to see world trade, but I desire to relate it to the over-all pic­ we should be forced to form our own as a whole, expand so that all countries ture which the Senator from Massachu­ bloc, and to enter into active economic can share; second, we wish to see elimi­ setts has just shown of what our output warfare in bidding for trade concessions nated economic warfare-a warfare may be in the next 5- or 6-year period. against the offers of our rivals. How which-in the past has been an important The interest rate charged, while moder­ well we would do this is problematical. contributing factor to armed conflicts. ate, is higher than our Treasury is paying Under a system in which political and We have endorsed these objectives by upon current borrowings. The risk en­ economic motives are fused, a demo­ our approval of the Bretton Woods tailed seems to be within our resources cratic nation, and particularly one with monetary stabilization program which as a creditor. In the considered judg­ a tradition of freedom in its domestic aims to give businessmen of all countries ment of the American and British tech­ enterprise, would operate at a disadvan­ access to world markets on fair and equal nical experts who workeclover the intri­ ta-ge. We should inevitably be driven terms. cate accounting for many months, the toward more and more Government We want no more economic blocs, no amount and terms offered will suffice to control. · more trade embargoes, no more quota allow Britain to relax her system of for­ -With a pattern of foreign trade _in restrictions, no more currency deprecia­ eign trade restrictions, and to expand which our exports regularly are greater tions, no more blocked currencies. exports sufficiently to pay her debt com­ than our imports, our bargaining posi­ Aside from the essential importance of mitments. tion in international trade is weaker expanded, over-all international trade to What is the alternative? I think this is than our economic strength suggests. strengthen the forces which unite peo- most important for us to consider. Under state-controlled trading we should -pies, we in the United States have a very Without the loan, Britain appears to still find it di:fficult to compete success­ special and selfish interest. No ,country have no recourse but to maintain and fully without resort to loans. Under such will profit more than will we by the re­ extend the system of bloc trading which conditions our loans would be supporting moval of the economic barriers that di­ she adopted under stress of world depres­ a system alien to our interest and eco­ vide people. We have become the great sion and world war. If Britain follows nomic convictions. The loan we are dis­ creditor nation, and it has given us the this course, as pointed out Monday by the cussing today is a loan in line with our challenge to try our hand in world lead­ distinguished Senator from Michigan economic convictions. There is a dif- ership in finance and trade. Will we use [Mr. VANDENBERG] she will carry with her ference. · this great opportunity to help other na­ a large part of the sterling-area coun.:. Under a regimented system which tions to help themselves and to help raise tries--all British Commonwealth and made economic decisions subservient to world-wide living standards in which we Empire .countries-except Newfoundland political considerations, it seems reason­ would inevitably share? Or do we want ·and Canada-plus Egypt, Iraq, and Ice­ ably certain that the volume of world to see the world drift into separate eco­ land, and many of the nations with which trade would shrink. The standard of nomic compartments, each compartment the United Kingdom has payment agree­ living in the United States would suffe:r striving to maintain a bare existence? ments, Argentina, Bolivia, Brazil, Chile, in common with others. We would be Are we looking up and across the Paraguay, Peru, Uruguay, Belgium, forced into a drastic curtailment of cer· mountains through a telescope, or are we Czechoslovakia, Denmark, Finland, tain war-expanded parts of our econ­ looking down with a microscope at th~ France, Netherlands, Norway, Portugal, omy, at the very time when a large por· obstacles immediately under our feet? Spain, Sweden, and Turkey. That is tion of the world was most in need of our I am not unmindful, Mr. President, of worth pondering. products. the great danger of oversimplification of Altogether, the United Kingdom's area It seems safe to predict that in the the issue. I am aware of the complexi­ of sterling activity accounts for more years immediately ahead from two-thirds ties of the problem. I do not claim any than half of the world's imports and ex­ to three-quarters of all international expertness in international money mat­ ports combined. It likewise is crucial to trade will be transacted either in pounds ters. I know that $3,750,000,000 is a stag­ the trade of the United States. In the or dollars. If both the United States and gering amount of money. I have no way years immediately preceding the war, the Britain are united in a determined effort of convincing myself definitely that this sterling area and payment-agreement to restore competitive· world markets, to loan can ever be repaid, although I am countries provided about one-half of both which buyers and sellers alike have ac­ confident that it will be if we continue on the import and export trade of this coun­ cess without discrimination, that will be the road to world peace. I must ask my­ try. This is vitally imPortant to us, from the dominant system of foreign trade. self whether we can afford to make this · a purely selfish standpoint. I wish to· emphasize that, Mr. Presi­ further investment in our faith in the Russia undoubtedly will continue to dent, because it is the key to my whole ultimate success of the United Nations conduct her foreign•commerce exclusive­ argument. If both the Unit~d States program to maintain that peace, and· to ly upon a state trading basis. Before and Britain are united in a determined create a cooperative rather than a de­ the war, the Soviet Union transacted only effort to restore competitive world mar­ structively competitive world. a little more tha·n 1 perce1:1t of foreign kets, to which buyers and sellers alike Where does our national interest lie? trade business, but its future sphere of · may have access without discrimination, Let me review the situation somewhat influence will be large; it may embrace that will be the dominant system of for· more in detail. ·as much as 30 percent of total interna- eign trade. If the sterling group is com- 1946 CONGRESSIONAL RECORD-SENATE 4153 pelled to continue a closed bloc, our sin­ of ours. And Canada has closer eco- · peoples, and both are in agreement as to glehanded e:tfort cannot preserve the nomic ties to us than to Britain. · how to bring this about. trade pattern that we believe o:tfers most The way to help remake the world at Let me sum up my conclusions. to us f.nd to the world. this moment in ·our history is to lead. While we are making a large loan to No one can accurately measure the Nothing could be ·more ine:tfective than Britain, it is repayable and, in my costs to the United States of refusing to go halfway toward establi&):ling the opinion, it will be repaid if we can re­ the loan and accepting the consequences. economic order in which we believe, and · store a normal world. While the in­ But unquestionably dollar and cents cost then withhold an immediate opportunity terest rate is low, i"~ is as high as could to us would be far greater than the sum to i:nake it work. Failure to approve the be made in light of Britain's economic ri~ked in the proposed credit. We would loan to Britain will be a default in our condition. On the part of the United lose through the shrinkage of our trade, leadership. I a moment of gteat crisis, States, we get assurance of the following th!'ough the wrench of violent readjust­ we must act, and act promptly. To fail things which are of vital importance: ments in our production programs, and Britain now may well be interpreted as A trade war, involving currency ma­ eventually through the curtailment of our judgment that Britain is through. nipulation, import quotas, embargoes, our over-all output below what it would I am unwilling to make such a judgment. subsidies of various kinds, will be avoided be under an open rather than a closed Does this loan set a dangerous prec­ by the major trading nations; system. We would lose heavily in our edent? Trade blocs will be discouraged in the freedoms under a procedure that can be I may say, Mr. President, that I asked United States-British tmde areas, where followed with success only by a close reg­ ~ number of my banker friends about our largest foreign trade is carried on; imentation of procedure as well as trade. that, and I have ·received replies which The so-called British Empire prefer­ Most of 21Jl, .we would lose an opportu­ I have tried to consolidate into an an­ ences, which mean discrimination in fa­ nity for aggressive, helpful leadership. swer to the question, Does the loan es­ vor of the British Empire against other We would be saying to the world that we tablish -a dangerous precedent? countries, will not be extended and will are still unprepared to accept a responsi­ With the Anglo-American agreement ultimately be removed; bility to which our giant stature as the awaiting approval by Congress, it is well Currencies, under United States­ possessor of almost half of the world's known that other countries are, or soon British leadership, will gradually be sta­ economic capacity calls on us to accept. will be, knocking at our door. No doubt bilized on a modified gold-exchange .so I ask in all seriousness, shall we let most, if not all, could obtain credit in basis and the United States and Britain the world down now, in the face of that reasonable amounts through the Export­ will stand together against the race to challenge? Import Bank, the International Bank to revalue currencies; There has been some disposition in be set up under Bretton Woods, or, in a New trade oppprtunities for the United this country to regard the loan to Britain few cases, regular market channels. Will States will .be opened up because the dol­ as charity. I submit that this is not the lower interest rate and other special lars earned by British Empire countries the case. We are not called upon to act considerations of the British loan be re­ must be spent in the United States, and as · Santa Claus. We are called upon · garded as setting a precedent, encourag­ under the arrangement will be free from rather to act as doctor to a sick patient. ing other countries to expect similar . any British control. The kind of economic system we want treatment? - In conclusion, Mr. President, as I has never functioned and cannot op­ There is a real danger. There is, how­ analyze the advantages to us, after con­ erate now without a lender. The doctor ever, no proper analogy between the case ferences with administration cfficials is the lender. He gives the lifesaving for Britain and that for any other coun­ and other financial experts, the United injection. For many decades prior to try. Quite apart from the natural feel­ States is to be· given its chance to try its World War I Great Britain filled the ings of friendship that exist between the hand in world leadership in finance and creditor-doctor po~ion to many coun­ two great English-speaking democracies, trade. It is to have assurances that the tries. In 1913 her foreign investments the compelling argument for Britain is policies which we in the United States totaled $19,000,000,000, and she not only that country's outstanding importance favor in wor~d trade will apply among made such transactions pay, but they as a great center of world trade and the major trading nations of the world. proved her salvation through two tragic finance on which many other countries This is because by the United States­ world wars. Her credits helped in the depend. Without a freely convertible British agreement the other nations will industrial development of a large seg­ sterling there will be scant hope of be brought into line with our world trade ment of the world, including our United achieving the multilateral trading sys­ policy: We will be setting the pace for States. And now, of all the nations in tem which has been the traditional goal general international world trade. the world, only the United States can of this ·country. Of no other currency So far as Britain is concerned, this take on this responsibility. save the dollar is this true to anywhere arrangement will ·put less pressure on But let me point out that the loan is near the same extent. Not on the basis her for complete socialization. Britain not a one-way street. Britain put a sub­ of sentiment, or of looking backward, will be able to operate more like a sol­ stantially greater proportion of her rela­ but on the basis of our own interest ln vent concern and less like a receiver­ tively meager resources into the war world-trade recovery, the British posi­ ship. Loaded with debt and short on than we did, and dissipated a large share tion is wholly exceptional. outside working capital, Britain, in the of her foreign holdings l.n the process, But I believe that we may be called opinion of most of the experts, would be while accumulating an outside debt of upon to assist other nations within the under great pressure to accept tight devastating proportions. On a per cap­ reasonable limits of our resources. We regimentation and rigid government ita basis her internal debt is greater than are certainly justified, however, in de­ control over the operation of her whole our. Consequently, ma.ny Britons feel manding that future loans to other coun­ economy. It is believed that with our aid that the terms of the proposed loan are tries must o:tfer: First, comparable secu­ ·this may now be avoided. too rigorous. But the majority believe rity; and second, comparable cooperation · Mr. President, I am convinced from my that the present o:tfer gives a fighting in supporting an international trading study of the situation and the appear­ chance to restore the system of world world in which we believe. We probably ance of the postwar world, that the trade that we and Britain both want, and shall be glad to assist other countries financial arrangement with Great Brit­ upon which the World Bank, the Mone­ in helping us set up such an organization ain is distinctiy to the advantage of the .tary Fund, and the International Trade in the trading world, and certainly, as United States. Furthermore, it is an es.­ Organization under United Nations lead.: has been brought out in this debate, the sential further milestone on the road to erships are based. Without our loan this kind of political system that means free­ world understanding and peace. whole progra·m may fail. Its failure may dom for oppressed peoples. If those con­ I shall vote to approve "the loan. well take us down with it. ditions could be met, I would find myself Mr. McKELLAR obtained the :floor. The loan is not without precedent. in favor of helping other nations to the Mr. BILBO. Mr. President, will the Canada already has provided for a loan extent of our ability. Senator yield? to Britain of $1,200,000,000. This Let us bear in mind that Britain and · Mr. McKELLAR. I am very anxious to amounts to almost a third of the pend­ the United States have legitimate essen­ have the appropriation bill passed, but ing proposal, although Canada's popu,. tial interests in common. We both de­ I yield. · lation is less than 10 percent of ours, and pend on an expanded world trade for M:r". BILBO. I shall be through in a her income is little more than 5 percent maximum employment for our respective few, moments. 4154 CON.GRESSIONAL RECORD-SENATE APRIL 26

Mr. President, day before yesterday I ·have to fetch them home and give our LEND-LEASE SUBTERFUGE was practically concluding IllY remarks GI boys a chance; but someone said to "'Are we taxpayers really in favor of giving on the British loan and the diversion of the British, "Here is $6,000,000,000 worth England another $4,400,000,000 on credit? It funds which the American people, of ~aterials which you can have for 10 .Is reported in advance of voting on it that through their Congress, t. thought they cents on the dollar." the Treasury doesn't really expect England to pay this new credit; that even if she had,. for the payment of $3 a day to all Mr. President, I think I can finish in a doesn't pay, it will be a good investment in GI's who served in the recent war on few minutes. The Senator from Ten­ a customer; that we should loan her the this side of the ocean, and $4 a day to nessee [Mr. McKELLAR] is very anxious money so she can buy from us, then we can those who rendered foreign service. to have an appropriation bill passed. afford to lose the money. That doesn't make The more I think about this loan prop­ Everyone ·seems anxious to spend Uncle credit sense. Many of the British themselves osition and the more opportunity I have Sam's money. frankly say in advance of congressional ap­ to investigate it, the more horrible it According to figures from Jesse Jones, proval that the loan will never be paid back. seems for the American Congress to give Britain's debt is approximately $80,000,- We quote from the Loan News Weekly: 'The -chances are that long before Ameri~a can away $3,750,000,000 with no hope and 000,000 while ours is approximately collect ·there will be a new international practically no promise of it ever being $272,000,000,000. conflict to throw the loan and many kindred repaid. As was developed this afternoon The public debt of Great Britain was superstitions into hogwash.' ' in the discussion with the Senator from listed as 22,398,000,000 pounds on March "Do you, a taxpayer, regard this new loan Delaware [Mr. TUNNELL], we actually 31, 1945-World Almanac, 1946. With as a superstition? After World War I we gave the British $29,000,000,000 in lend­ the approximate value of $4 per pound, gave England 62 years to pay off the first loan, lease; but there was a reverse lend-lease this would be $89,592,000,000. In other but she paid it for only 9 years, amounting words, Britain's debt is between eighty to 6 cents on the dollar, ·and after 1933 the or credit which we were ready to give United States Treasury (you) didn't collect them for materials which they furnished and ninety billion dollars, while ours is one more nickel. In the recent war we gave our Army ove;r there, which left a net of nearer $280,000,000,000. England another credit amounting to $.25,- $25,000,000,000 which we gave to the According to Jesse Jones, British­ 000,000,000, .only the ingenious Mr. Roosevelt British. In addition, as was developed owned assets in· this country .aggregate did not call it a credit, he called it lend-lease, this afternoon, we sold them about .$6,- more than $3,000,000,000, and include and, in a message to Congress relating to 000,000,000 worth of surplus war mate­ .$587,000,000 United States Government lend-lease, said 'For what we send abroad rial for only $·650,000,000. Of course, securities, more than $40,000,000 in cor­ we shaH be repaid within a reasonable time porate bonds and 623 .controlled branches following the close of hostil!ties, in similar some of the speakers on this .question . materials .or at our option in other goods have put the two items together and said of corporations having a value of $611, .. of many kinds, which they can produce and. that the $650,000,000 was for lend-lease 000,000. which we need.' '' anti war materials. As was developed the It is also·estimated that British assets in other countries than our own total · 13ILL IN CONGRESS other day, the $650,000,.0QO is to be paid "This $25,000,000,.000 of lend-lease under at the rate of $50,000,000 at a time, an"d some $8,000,000,000, their unmined gold the agreement now before Congress will be not $1of it will ever be spent on Ameri­ reserves have been estimated to be worth :settled for 3 cents on the dollar to be paid can soil or for American interests un­ at least $15,000,000,000, and their d·ia­ running into the century 2000. As has been less it is spent on the soil of the British mond reserves as much as $8,000,000,000. pointed out by credit executives, .on the Empire. Britain also has several billion dollars in first credit granted England we collected 6 When we think about the comparative cash. · cents on the dollar and lost 94 cents on the resources of the two countries it !i.s amaz­ An important article which I ask to dollar; on the '$25,000,000,000 of lend-lease we include in the RECORD at this point is will get 3 cents on the dollar (if England pays ing, because today the ·British Empire it) and now we are to lend her $4,400,000,000 has a population of 55'8,350,760 people. from the Indianapolis News, March 12, more. The area of the British Empire in squar.e 1946, and is entitled "Credit Men Hit "We wonder if it iselgood. credit judgment miles-not water, but land-is 13,324,753 Loan to Britain." for our American taxpayers to try this same square miles of land, with timber, gold There being no objection, the article customer again on credit, and on the basis mines, and diamond mines, and metals was ordered to be printed in the RECORD. of England's past paying record can we, in as follows: view of our own heavy obligations, afford to of all sorts. They have unlimi,ted possi­ write off another credit 'of $4,400,000,000 as CREDlT MEN HIT LoAN TO BRITAIN-:-8AY RECORD bilities, far greater than ours. uncollectible? And we wonder, if England On the other hand, the United States SHOWS LITTLE HOPE OF UNITED STATES ts a decadent nation, can we afford to keep COLLECTING has only 3,735,223 square mile~ of land, propping her up with these credits of $6,­ Including all ber possessions and the Merritt Fields, executive manager of the <000,000,000, :94 percent of which we wrote Philippines, as against more than 13,- Indianapolis Association of Credit Men, to­ off a.s uncollectible, and $25,00ll,OOO,OOO of day issued a statement opposing the proposed lend-lease, 97 percent of which we have 000,000 square miles. Our population is loan to Great Britain. approximately 139,000,000 against a pop­ writen off as uncollectible. His statement follows: "Some American liberals say this credit ulation of more than 5'58,000,000 for the "The proposed loan to Britain is a credit to England is too complicated for the ordi­ British Empire. matter that affects everyone'.s pocketbook. nary taxpayer to understand, etc. We have I merely mention these fads to show We do not like England as a credit risk. If noticed in our business, which is the credit the contrast. And yet with all these we were handling your money for you, we business, that whenever a credit transaction res()urces; and with all these people to would not give England one nickel on .credit, become~ too complicated to understand, earn and to take care of the welfare of :for England's credit record is bad. Our ofil­ there is something wrong with it. There is the British Empire, they come here hat cials hav.e agreed to give England on credit nothing complicated about , those last two $4,400,000,000 and this huge credit 1s now loans to England; on the basis of the paying in hand, to a Nation which has only before Congress for approval. From a credit record-all that really counts-England, in 3,000,000 square miles ()f territory, and a standpoint, all you really want to know is, our opinion, is a bad credit risk for you as population of only 139,000,000 people, Will England pay? a taxpayer. Many American liberals want to begging for $3,750,000,000 of our money, "The ,socialists .are running England now, loan money again to England. In the. paSt of the people's tax money. This is on but even before that England was a bad we have taken some of these 'liberals' apart the heels of a very gracious act on nly $6;000,000,000. We taxpayers are Uncle be bought by those American· taxpayers who advantageously in this country. Sam. We gave England a credit including . believe it good business to loan the money interest of $8,000,000,000 in World War I; she to Britain, these bondholders to be paid off There has been a great to-do this af­ didn't pay, so the champion credit chump when Britain repays the loan. ternoon about the return to the United lost $6,000,000,000. England got the money "If those who like the loan to Britain States of surplus war materials ()n the 1rom the United States Trea.sury and When are sincere and believe in backing their islands of the Pacific ·or scattered in some she didn't pay, the Treasury made you pay by judgment with their own money, they should of the smaller countries of Europe. We adding'it on to your personal Federal tax." urge Congres~ to issue these special bonds 1946. CONGRESSIONAL RECORD-SENATE 41~5 so they could buy them. Thus the tax­ totaled £331,996,528 sterling. At the present The American people also know that payers who don't want the loan made are rate of approximately $4 for each pound, this the present Government of Great Brit.. satisfied, and so are its proponents. Ameri­ amounts to $1,327,986,112. ain is socialistic. Such a system is di­ can taxpayers, in our opinion, have no busi­ COULD HELP CLEAR DEBT ness loaning anybody a single dollar, for we rectly opposed to our American prin.;, are already in the red approximately $280,- How part of this output could be sent to ciple of free enterprise, and even if WE!l 000,000,000. If Congress disapproves the loan, this country as part of a debt-reduction pro­ had the money to give away, the Amer­ England will somehow get along without it gram is shown in figures released recently by ican people are in no mood to furnish and American taxpayers will have the money the Justice Department. Assistant Attorney General Berge said United States imports of the money to pay for the British experi­ to apply on their own debts which exceed ment with socialism. , An article · by those of all other nations combined. In any these stones annually total 1,000,000 carats event, it is your duty to tell your men in for such industrial purposes as grinding, Mark Sullivan from the Washington Post Washington whether you are for or against drilling, and polishing. He estimated value of September 23, 1945, which l ask to the loan. That is the way to make our of the former at $100,000,000. have printed in the RECORD, is timely representative Government work." Apparently the largest operator in this field and worth while. is De Beers Consolidated Mines, Ltd., Kim­ - There being no objection, the article Mr. BILBO. We should ·know from berley, named ·as a defendant in a monopoly was ordered to be printed in the RECORD, past experience that this loan to Britain suit started by the Justice Department a year as follows: · will not be repaid. We have already ago. De Beers owns large or controlling noted the figures which show that, as of interest in more than a half dozen com­ MONEY Am TO BRITAIN SHOULD DEPEND ON panies and had net income of £5,240,321, or UsE BY SOCIALIST REGIME July 1, 1945, Great Britain owed us al­ approximately $2D-,960,924, in 1943. (By Mark Sullivan) most $6,500,000,000 unpaid principal and The company owns 1,327,929 acres of land interest on her World War I debt. She The American people and Congress are in South Africa and hol.ds the rights to min­ in process of making up their minds on a does not come seeking a new loan with erals and precious stones on another 105,067 question: Shall we extend assistance to Brit­ "clean" hands-the old debt has not been acres. It also bas preemptive rights to dia­ ain-loan, gift, or what-not? From the paid. Under these circumstances, are monds in the Colony of Northern· Rhodesia. complex tangle of many reasons pro and con, we going to be so foolish as to fall for HALF OF GOLD OUTPUT Republican Congressman KNUTSON, of Min­ the old scheme again and send billions The Union's largest· gold deposit is in the nesota, picks ·one. He says America should of dollars belonging to our taxpayers Transvaal Colony and is called the Witwa­ not help finance the experiment in -social­ across the sea when we know full well tersrand gold mining field, discovered in 1886. ism which Britain, under its new Labor gov­ that the money will never be coming The Transvaal Chamber of Mines asserts that ernment, is now making. President Truman back? it produced in 1929, a "little more than half says that to take such a reason into account of the world's total output." would be silly. . If we should make this loan to Britain, In 1934, the latest year for which figures To find a path between these two extremes she would then owe us a total of almost are available, this and other fields in the of pos~tion, we should need to know just $11,000,000,000 on World War I and II Union produced 10,480,000 fine ounces of gold how far Britain is going in socialism. The debts. There is no valid excuse whatever .valued at.£72,311,000, or approximately $289,- answer is difficult for Americans to know • for approving this new loan and sending 244,000. . Leaders of the Labor Party disagree strongly additional billions of our money to be · Hans Pirow, government mining engineer among themselves. Those party leaders who of South Africa, described his country's are also officials of the Government, and who used by the Government of Great Britain. are therefore responsible, such as Foreign 'We did not even receive the gratitude gold-mining industry- as a "national asset which has aroused the envy and admiration Minister Bevin, have only a limited program. of the British for making the World War of the world." He said there were no signs Mr. Bevin is probably the strongest man I loan, for our Nation was criticized for of it diminishing for "at least a generation." in the Cabinet, and his objectives are not even requesting that England honor her rna terially unlike those of any ordinary trade obligations and repay the loan which we Mr. BILBO. The salary which is paid union. Long the active and responsible head had made. • to the King of England is another thing of the largest labor union in Britain or which dGes not indicate that the British t~e world, the Transport Workers Union, Mr. Britain's financial condition is far from Bevin does not differ extremely, in expe­ desperate. Englishmen still boast of an Government is a pauper. The annual rience and views, from our late Samuel empire that embraces one-fifth of all the allowance given the King by the British Gompers, long head of the American Fed­ ·land in the world, and it is still true that Parliament is £410,000. At the present eration of Labor. .the sun never sets on the flag of the exchange rate of $4 per pound, this During Mr.· Bevin's brief tenure as For­ United Kingdom. Britain has land, in­ amounts to a yearly allowance of $1,640,- eign Minister, he has taken a conservative 000, which is more than 28% times as line in _world affairs. He has vigorously con­ ,vestments, and resources the world over. demned the new governments set up in Bal­ An article from the Times-Herald, Janu­ m~cP, as· the annual salary of the Presi­ dent of the United States. kan countries, which are prevailingly Com­ ary 1, 1946~ which I ask to have printed munist and under Russian dominatio'n. Of .in the RECORD, presents a . picture of Britain's former Prime Minister, Win­ these he said: "One kind.. of totalitarianism something other than British poverty. ston Churchill, is reported to have once ·is being replaced by another." There being no objection, the article said that he· did not 'become Prime Minis.! HE GRIPS REALITY If was ordered to be printed in the RECORD ter to liquidate the British Empire-. If America could be sure that the British ·as follows: · ' England is able to retain her Empire; Labor government would reflect the person­ POOR BRITAIN HAS TWO BIGGEST GOLD DEPOSITS work out her own problems, and plan for ality and policies of Ernest Bevin as they CHICAGO, December 31.-The British Gov­ 'her future, then well and good. How- · now appear·to us, we would not need to con­ .ernment, whose representations of dire pov­ ever, if the British Empire can only be sider it as £l. reason entering into our deci­ erty recently resulted in preliminary approval saved by the expenditure of American sion whether to give financial assistance, nor of a loan of 4,400,000,000 American dollars, money, then I suggest that perhaps the as otherwise seriously disturbing. has within its Empire two of the world's time- for some liquidation has come. The It may be Mr. Bevin will dominate the Gov­ largest and most precious wealth-producing ernment; he is a thoroughly dynamic person. war is over now and no one can justly say Himself an authentic worker, who has gripped mineral deposits. that the United States of America did These are in the British Commonwealth's reality with muscle and mind, he has a hearty Union of South Africa and contain diamond not furnish her share of the armed forces distaste, frequently and forcefully expressed; for so-called intellectuals and extremists ~_tnd gold mines. The diamond mines are said 'Who won the victory nor that she did not to produce 90 to 95 percent of the world's supply her share of materials and equip.: who head the left wing of the Labor Party. supply, and the gold fields are termed "easily ment. We all know that this Nation did But the intellectuals and left-wingers must the largest and most important in the world." its part in winning the victory. The war be taken into account. Some of them, while not officials of the Government, are impor­ PILE DEBT ON DEBT debts which we in this country owe are tant as spokesmen and officials of the Labor The $4,400,000,000 peacetime loan is pend­ tremendous, and the taxpayers through­ Party organization. Their program is as ex­ ing in Congress, and if approved will be piled out our Nation are bearing a heavy load. treme as possible. Sir Walter Citrine says: on top of a defaulted $4,000,000,000 from They have not sent us here to the Con­ "I think it would be an excellent thing if the World War I, and "settlement" of $25,000,- gress-we did not become Members of British Government were able to plan pro­ . 000,000 of so-called lend-lease goods delivered the United States Senate-to increase duction, consumption, and the general eco­ in World War II. nomic life of the country in the way that is Although the British say they cannot meet their tax burdens and those of their done in Russia." these obligations, the value of diamonds pro­ children by giving away billions of dol .. The official head of the Labor Party organ­ duced in the Union of South Africa in 1940. Iars of American money to Great Britain ization and its most truculent spokesman is the latest year for which figures are available. or to any other country. · Prof. Harold Laski. He advocates complete 4156 CONGRESSIONAL RECORD-SENATE APRIL 26 socialism, not only for England, but for the debts -until they are fully acknowledged and become-an out-right gift. There is a world which includes the United States. liquidated." lot of money involved in this proposal in He advocates and predicts the extinction of "Contractural arrangements for payment," anybody's language- $3,750,000,000- free enterprise everywhere, called by him he said, could be "either by permanent ces­ and a number of promises; Britain gets capitalism. He says it should be the mission sion or by leases of lengthened tenure of the money and we get the promises. of the British Labor Party and Government present or different lands in or contiguous to extend socialism to other countries. to the waters of the Western Hemisphere, The American people have no way of and/or by such other media of installment ·defeating this raid on the United States CONDITION AWKWARD payments _as are mutually satisfactory." Treasury except ·through their chosen If America believed that the program of He said England's staggering war losses, representatives. The interest of the the Labor Party go~ernment in Britain would especially the destruction or damaging of taxpayers should be protected and this be what Professor Laski says it ought to be, 4,QOO,OOO homes, must be replaced "if Brit­ a missionary for the extinction of free enter­ loan should be defeated by the Congress ain is to continue as a useful ally in the of the United States. prise everywhere, we would certainly be justi• company of enlightened nations. fied in not extending financial assistance. In "Between neighbors and allies and com­ Mr. President, Secretary of State the world-wide confiict between free enter­ rades in past times of peril that may arise Byrnes has. urged approval of the British . prise and varying forms of socialism and col- again there must be no sordid question of loan and has expressed the opinion that lectivism, the United States is the largest the cost of such human and necessary help. there are no sound arguments against defender and practitioner of free enterprise. • • ~ Past, present, and future they are such action. Mr. ·By:rnes thus asks us As such, it would hardly be expected that we debts of moneys and credits of health and should finance a competition bent upon the to lend Britain this $3,750,000,000 at 1.62 safety, especially called for and gallantly percent interest, paym~nts on principal destruction of our system. provided." Even if we do not take Professor Laski too and interest not to begin until 1951, and seriously, as many Britons assure us we _need Mr. BILBO. There are four agencies to be strung out over a period of 50 Years. not, there remains an awkward condition. which have been established to meet the Furthermore, Britain may omit payment The program of .the British Labor govern­ needs of foreign countries that must of the interest at their own convenience. ment, even by the mildest interpretation, means the nationalizing of some industries; have our help. They are: The United Mr. Byrnes pointed out that Britain the process has already begun. Seeing this, Nations Relief and Rehabilitation Ad­ was our largest customer before the war, certain questions arise: . ministration, the International Fund, and now that war debts have left Britain Can the labor government nationalize the International Bank, and the Export­ impoverished, we must help that country some industries without being forced grad­ Import Bank. The administration says with our dollars to become our largest ually to nationalize all? Is the labor gov­ that as a general rule it expects the customer again. He hopes that Britain ernment likely to nationalize what is Brit­ needs of foreign countries to be met will use part of this lo.an to purchase ain's largest fudustry-international ship- ping and trade? . through these agencies, but in this in­ goods in the United States. Big business If Britain's foreign shipping and trade stance, Great Britain is a special case interests in America may likewise be should be nationalized, it would become ex­ which should be granted a loan by con­ hoping to receive some of this money, tremely difficult for us to keep our foreign gressional action. Our . Treasury offi- but it is difficult to see what the taxpayers shipping and trade on our own basis of free . cials say this will not establish a prece­ of this Nation are going to get out of the enterprise and private ownership. Hence the dent for other loans by the same method deal. We put up the money and Britain ) crucial question is this: If we give Britain because no other country has the same gets the goods. No; indeed, even if Brit­ financi'al assistance to build up its economic position, including especially its interna­ crucial position as Great Britain with ain should promise to spend all of the tional trade, can we be sure that this trade reference to world trade. money in this country, that would not be will not be nationalized to our great detri­ But how can we say that granting a good enough reason for granting the ment? loan of $3,750,000,000 to England will not loan. If Am.erican industry is anxious to establish a precedent? Already France sell to Britain, let them accept Britain's Mr. BILBO. Even if the American has indicated that she must have a loan promise to pay and extend credit. It people should be convinced that Great of some $6·,000,000,000 .and Russia has Britain must have this loan in order to may be true that Britain needs to buy survive during this postwar era, and likewise intimated that an American loan over here, but the buying should not be of six biilions will be sought. China, done at the expense of the American tax­ under these circumstances agreed tQ the Italy, BE!}gium, Poland, and a dozen other payer. loan, it should be only on condition that nations are also waiting in line to see we be given .security for the repayment. Mr. Byrnes also hopes that the United what we do about the British loan and on Kingdom will abolish tariffs and pref­ England failed to honor her obligations what terms we make the loan. It has erences which have kept American goods to us following the last World War, and been estimated that the total sum of the out of the Empire to a large extent. But surely that should be sufficient to put loan applications which will be made by us on guard so that we i:nay take the he cannot make a definite promise that these foreign countries will be about Britain will do this ~fter receiving our necessary precautions to secure repay­ $20,000,000,000. ment of any new loan. Great Britain money. . has investments anci resources and she Each nation expects equal treatment The Secretary of State failed to point is more than able to put up sufficient and if we grant the proposed loan to out that Britain owes us an unpaid bal­ Britain, we will certainly be setting a ance of some $6,000,000,000 on the loan security for the amount of money which - pattern and establishing a precedent for she needs. An Associated Press release made to that country following World of January 31, 1946, which I ask to have future loans to other countries. Surely War I. Neither did he remind us that printed in the RECORD, states the views everyone knows that we cannot give our . Britain now has a socialistic form of gov- of a prominent Canadian who believes in money away forever. There is a limit ·ernment. This, however, is something honoring obligations and repaying debts. not only to our funds but to our x:e­ which we must not forget. Socialism is There being no objection, the article sources. We are already in debt further in direct contrast with our American was ordered to be printed in the RECORD. than most of us ever dreamed that we form of government; it is opposed to the as follows: would be. As of June 30, 1945, the pub­ American brand of capitalism. If we lic debt of the United States was $258,- make such a loan at this time, we will be BRITAIN SHOULD PAY. UNITED STATES DEBT IN 682,187,410, or $1,853.10 for each person strengthening the cause of socialism in BASES, CANADIAN DECLARES in 'this Nation. It is now about $280,- Britain and doing a great deal to insure ALBANY, N. Y., January 31.-Ca.nada's w;ar­ 000,000,000. time munitions chief said last night that the success of this experiment in the Britain should pay her debt to ·America in The taxpayers of this Nation-have a United Kingdom. British socialism will Western Hemisphere bases or by other "mu­ right to expect tpe Congress to look after then be financed by Americ~;tn dollars. tually satisfactory" settlement. their interests when this loan to Britain If we grant the proposed loan, the . William Flockert Drysdale, speaking as a is being considered. The time has precedent will be set for the granting of private citizen, declared the grim specter passed for Uncle Sam to play Santa similar loans to practically any foreign of debt forgiveness must not arise "in this Claus; we have no money to give away government who comes over here seeking new age of infinite threats and dangers" as to Great Britain or to any other foreign 1t "so unhappily arose after the First World financial aid. It has been reported that War." government. the amount which Russia is seeking is Mr. Drysdale, in a speech before the Albany The proposed loan to Britain has no $6,000,000,000. This was the figure County Historical Society, said Britain's obli­ businesslike qualities. It should be which was said to· have been mentioned g-:~.tions to the United States "are and remain called what it will, if granted, actually to several American Congressmen who 1946 CONGRESSIONAL RECORD-SENATE 4157 _recently visited Russia. And for what I wish to repeat the following sug­ bilfty, for it is a splendid opportunity to would this money be used? It would be gestion as to the use of this $3 ,750,000,000 prepare themselves to enter their chosen . spent to finance communism in Russia-­ . and other billions of dollars which may profession, to go into business for them­ to strengthen a system of government be loaned to other foreign countries: In­ selves, or. to secure employment in the whi'ch is directly opposed to ·our Ameri­ stead of lending it to Britain as a loan, . field of their choice. can form of government. Stalin said in which we know will never be repaid, let There are many provisions of the GI a recent speech that .capitalism is the us give it to the vete.rans. We could pay bill. In passing this law it has been the root of all worldly eVil. . With this each veteran a bonus and in this way ihtention of the Congress to do its utmost statement, he directly attacked the we would be giving the money to ouxr peo­ to help and benefit our veterans. We United States of America for we are the ple-to the men and women who served have made an honest attempt to protect . world's foremost example of a capitalis­ this country in its hour of peril. With their welfare and to secure their rights. tic Nation. this sum, we could pay each veteran $3 It is true that there are some defects in Socialist Britain and Communist Rus­ per day ·for each day that he served in the law-some of the imperfections are . sia may say that we are economically the United States and $4 per day for each legislative and many of them have been backward and not in step with the times. day that he served overs.eas. The maxi- brought about in the process of adminis­ They may demmnce our form of g:overn.­ ·mum amount of the bonus for any one tration. But we are going to perfect this ment, but the denunciation has a queer individual should be fixed at either $3,500 law. The necessary changes must be sound when they are coming to us for or $4,500-$3,500 for those who served brought about through amendments loans. They may dislike us economi­ the entire period of service in this coun­ passed by the Congress and smooth and cally, but they are ready and willing to try and $4,5.00 for those who served out­ efficient administration must be guaran­ take our dirty dollars and use them to side the continental United States. teed by the Veterans' Administration. finance· their programs. at home. Well, The men and women who served in Our service men and women entered the we have the money; they say they have our armed forces deserve our gratitude armed forces and they continued to serve, .not; then let t:fuem w·ork 'OUt their own and our praise. They also deserve to be ·continued to fight, until the victory was :finances under their system of govern­ helped by this GoveiTnment in a material purs. ,We must now be as faithful and .ment. We have no funds available to way. They gave up their homes, their loyal to them as they were to us. · We be given to British socialism or to Rus­ jobs, left their families and loved ones must continue to work in their behalf sian communism. to answer ·their country's call to arms. until every right arid privilege to which · · We helped Great Britain out of World These veterans are now returning to they are entitled has been protected and War I and World War II. During World civilian life, Many adjustments must be guaranteed by law. · War II we gave to Britain $29,000,000.,000 made; many obstacles must be overcome. This Government has made provisions .worth of lend-lease. The war is over There are problems of jobs, homes~ future for our veterans to borrow money and now and we are staggering under war security. We must not leave the&e serv­ this is indeed necessary and proper. debts of our own. We have no money ice men and women to fight their battles Many of our veterans will need loans as ·with which to continue to finance the alone. We can·and we must help them. they· make financial adjustments and British Empire and we should defeat The Cengress has already passed the prepare to enter business for themselves, this proposal to send $3,750,000,000: of GI bill of rights, which is an attempt te and we must see to it that the necessary ·our money across the sea to Britain do more than any G.overnment in history funds are a vail able to them. Under the never to be returned. has tried to do for those who-·fought the present conditions, veterans may borrow Mr. President, in my opening remarks Nation's battles. No other nation has money at 4 percent interest and this one I stated that my speech had a twofold ever gone so far in· an honest eff·ort to fact is within itself sufficient reason why purpose. The first part has been devoted help, to restore, and to reorient the vet­ the British loan should be defeated. to a discussion of the proposed British erans of any war as they have returned When our veterans want a loan, we offer Joan and reasons why this gift Joan to civilian life. Every returning veteran the money to them at 4 percent for 5 · should be defeated. The second part is, should fammarize himself with the pro­ years and when Britain wants a loan we in my opinion, mueb more important, for visions of the GI bill of rights, as amend­ offer that country $3,750,000,000 for 55 it concerns the American veterans of ed, ancl secure all available information years at 1.62 percent interest! There is World War II. The proposal which I about this measure so that he might take neither reason nor justice in such a situa­ wish to make is that we spend this $3,- advantage of the manifold benefits of­ tion. Let us giVe the benefits of our 150.,000,0.00 and all the biliions that we fered under its provisions. We are try­ generosity to our own veterans-those . wm be asked to loan other foreign coun­ ing to help and benefit these veterans and who fought and won the war for us. An tries to the tune ·of twenty billion or­ to secure their rights and privileges un­ article in the f.orni of a letter to the more for bonuses to be given to the men. der the GI bill. editor and entitled "Loans to England and women who served our Nation dur­ This bill is, of course, not yet perfect. Better Than Gl's," which I ask to have ing the armed conflict whtch has just The process of. administration must be printed in the RECORD, was published in so recently ended. simplified and the cumbersome entangle.:. the Daily News, Batavia,.N. Y., January ments must be eliminated. There is too 5, 1946. . The following quotation is from an much red tape at the present time and . There being no objection, the article editorial in the Times-Herald, Fefn:uary this should be· cut down and placed at a was orderred to b"e printed in the RECORD, 17, 1946': minimum. The Veterans ~ Administra­ as follows: It seems to us that the sensible thing to tion should make every possible e:tiort to LOANS TO ENGLAND BETTER' THAN GI'S-MIDD!.E­ do, if we must fling these billions around, is administer this law smoothly, to give effi­ POR'l' MAN SAYS' EX-SOLDIERS GETTING WORST to fling them to the World War II veterans OF UNITED STATES GENEROSITY-cAN BORROW ef the United States, not, 1n effect, to the cient and prompt service, and to see that Russian and British war veterans. every veteran' understands his rights and l.ITTLE That would mean big, fat bonuses for our is accorded hi& full and just benefits un­ To the EDITOR OF THE NEWS: own boyS'. It would be inflationary, true, and der this law. Fi!teen millions of the ffower of our man­ not all the money would be spent wisely. The Government has provided· under hood fought and won the war, not only for But virtually an of it would at least be spent the Gi bill that veterans of World War. the United States but also for England and in this country, and the real wealth it other nations. Today, our boys are coming bought-houses, autos, clothes, furniture, n may go to school at Government ex­ home. They will want a farm, a home, a etc.-would stay here. pense. This is one pf the greatest oppor­ business, a career. Many will need to borrow This would be real, direct stimulation of tunities which has ever been offered to money. Their Uncle Sam Will loan them United States business, for a while at least, American youth and I certainly hope that only half the amount they need at 4 percent instead of roundabout stimulation, via Brit­ large numbers of our returning veterans tor 5 years . . ain and Russia, with no guaranty that such will take advantage- of this provision of But when England wanted a loan, this same stimulation ever would arrive. the GI bill. They may attend colleges or Uncle Sam offered her $4,400,000,000 without We':re in favor of our veterans .joining the universities or may receive vocational any interest for the first 5 years, and only 2 American Legion in large numbers, and going percent for the next 50 years. And for this out after bonuses for themselves, and too training in the occupation of their choice. Eng!and says we are Shylocks taking our bad about loans to foreigners-especially Those veterans who are eligible to go to pound of flesh. Then, too, the Unit ed Stat es foreigners whose record of debt payment 1s school or receive training under this raw just canceled a debt of $25,000,000,000 loaned bad. should seriously consider such a possi· England in World War I. XCII--263 4158 CONGRESSIONAL RECORD-SENATE APRIL 26 Is that giving our boys a square deal? be one further provision. It would only I wish to mention. This one other item­ Should they not have the right to borrow be fair and just that if a veteran wishes surplus Federal property-has surely at as low a rate and for as long a time as any foreign country for which they fought? to receive the bonus, he will then pay · caused much more confusion and mis­ If our country has billions for foreign lands, . his own expenses during the period of understanding than any other one thing well and good. Let them have it. Our for­ schooling or training out of his bonus. ·which could be named. There have been eign loans now are $20,000,000,000. our debt He may choose to take the bonus out­ countless changes made in the handling 0"'1. World War II is $300,000,000,000. The cost right, or may prefer to have the Gov­ of this property; but it is only fair to of running the United States Government ernment send him to school or train him, point out that they have been made by last year was $16,000,000,000. but he should not receive both in full. the administration and not by the Con­ When our Government contracted these ridiculous debts, it did so knowing full well It would be discrimination against the gress. The agencies have been changed . that this terrible burden would fall, not upon great majority of the veterans if we ·and reorganized and the property has their shoulders, but upon the boys who so should favor one special group with the been transferred from one agency to an­ bravely fought that we might live. educational advantages, plus the same other, with the result that our veterans Now, what do our returning veterans find? bonus which the others who did not go have found it very difficult to obtain ac­ . They find themselves crushed under a burden to school received. The veteran who goes . curate information as to their rights and of debt infinitely larger than the world ever to school will, of course, receive his bo­ .opportunities to purchase some of this before dreamed of-a debt these boys had no surplus property. · voice in making. For them, it was only to nus, but there will be deducted the total do and to die. For this, millions volun­ .amount which he has received while tak- The War Assets Administration is now teered-not one shirked. They gave up their -ing his educational course. In this way handling the disposition of surplus prop­ . homes, stored their furniture, sold their each and every veteran will be treated er~y, and veterans should file their ap­ cars. Their wives and children were thrust fairly and equita"bly. plications through the local and regional upon relatives. They abandoned their ca­ There can be no doubt as to the answer .offices of this agency. The situation has reers, from 2 to 4 years existed in misery in to the question: To whom do we owe the been · somewhat clarified within recent ·far-distant lands in all kinds of fox holes, weeks, and it· is hoped that the officials suffered the most excruciating agonies, often greatest debt-Britain or our veterans? death ended their misery in a German prison. An editorial with this question as the of this agency will continue to cut as Now, our Government, to show its appre­ title appeared in the Altoona OUr.ce in various historicatl and for them to repay the $6,000,000,000 from disaster as they did after 1918. He · economic factors. Most of them believed the they borrowed, but it has never come. said we Americans are jealous of Englisn · payments would be defaulted by the British Shall we grant this gift-loan to Brit­ culture and historical background. Ameri­ as was done in 1933 on the World War I loan ain? No, no, a thousand times no. But cans say: "To hell with all the dukes and earls when only 4 percent of the four-and-one­ we will find a worth while and patriotic in England; to hell with the Communists half-billion-dollar debt was paid. Others use for this money. We will spend it for also." held that the rate of interest, 1.62 percent, bonuses for our American war veterans Now then, fellow Americans-fellow Amer­ was too low when ex-servicemen are forced ican war veterans-are . we going to permit . to pay 4 percent for loans under the GI bill of World War II-not for unfilled prom­ a group of Anglophiles, Communists, and of rights. · ises, but for services and sacrifices al­ cheap Washington politicians to give another The farmers also were interviewed to ob­ ready rendered by our 12,000,000 Amer­ huge slice of America's dwindling supply of tain their opinions on the question of joint ican soldiers. This is an opportunity gold to the European buzzards and bankrupt use of military bases by the United States . for the Congress to put the interest of the Republic of the United States of Amer­ and Great Britain against Russia as suggested · our veterans fi.rst. I have no doubt that ica? This gold is property of American tax­ . March 5 by in a speech in when the Members of the Senate have payers. "Refugee stock ·traders who fied from . Fulton, Mo. (Churchill on Flriday denied this considered the two propositions, they Europe have reaped profits close to $800,000,- . was a request for a military alliance, calling it ·will agree with me that the money 000 .in the New York Stock Exchange without a fraternal association.) Although one­ should be spent on our vetera.ns first. · having to pay a do~lar of their profits into the third. . said they had_ not decided what they . war-strained United States Treasury as in':' , favored, 4 to ~ ~mong those who had opinions . Then if anything is left we can throw. it . come tax"-Chicago Tribune, May 6, 1945 . maintainec;i an aiiiance WOUld be 'unwlse at . away on the British. We will. give this . ~his is a drop in the 'bucket; English fire and 'this t-!me and would lead to internationaf -money to the men and· women who . mari:g.e insurance companies take ~n a billion · complications· and probably to y.rar. . . fought for us and for our. country~ · dollars a year in insurance premiums in the Many among those who said 'they, were un­ . and too bad about the Eng-lish! United .States . . decided said Russia's recent actions on the Mr. President, I ask unanimous con­ · Henry Wallace-you know who he is-said, borders of Turkey a~d -· within Iran are a "It would be worth whil~ if we gave the menace to world peace and that it may be . Sent to have printed in the RECORD. sev­ money away." He was addressing the Sen­ eral editorials and ·articles on the sub­ · ne.cessary to seek help wherever it could be .ate Banking and C"::rrency Committee which found. ject which I ·have been discussing. · : was considering the $3;750,000,000 loan to the There being no objection, the matters · British: "The loan should . be an outright DENOUNCE CHURCHILL · referred to were ordered to be printed in · gift." Kennedy, ex-Ambassador from United Those who disapproved an alliance ac- . the RECORD, as follows: States to the cultured court of St. James. . cused Churchill of trying to inveigle this ·"Loan to Britain is a 'must.' "-Chicago Sun, country into the old game of rtower politics [From the Bulletin of North Shore Post, · March 12, 1946. No. 21, the American Legion} in order to preserve the crumbling British · Magenta Socialist Leon Blum is here from empire. UnanimOUFilY they denounced THE BRITISH LOAN France, he wants two billion two hundred . Churchill for speakinB as a privato citizen on "We were not responsible for this war, but and fifty millions. such a co~troversial and provocative ~ubject we had to fight it, and in fighting it we saved Have you heard any one of those Anglo­ in this country, thus causing our relations the British Empire the second time. For philes, Communists,· and cheap Washington with Russia to be strained. · · me and, I believe, for the American people, politicians who are so anxious to give away The following are samples of opinions -ex­ the blood already shed by our heroes, and our gold, have you heard any one of them pressed: the hundreds of billions we have poured out making any suggestions regarding gifts to J. N. Bostic: "We've given Great Brita~n . World War II veterans? 'To' save their skin to win this war, should constitute the limit ~ enough. It will be time to consider another of our sacrifice for Britain. . they may after they have read this. Remem­ loan when she pays the last one. Churchill "Permit me, Mr. Speaker, to digress a mo.­ ber the great howl that went up when we· · was looking out for Br1tish interests when he ment from the British loah and call the veterans of 1918 asked for a few dollars? - made 'his speech, not ours or the world's. attention of my colleagues to the fact that You heard the cry, "You are bankrupting the - We've had too much interference from him- . United States Treasury, you are selling patri­ out of 75,000 veterans in California asking his own people rejected him-why should we for loans only 194 got credit, •the others got otism." Any politician who votes for these pay any attention to him?" advice. Just think of the contrast, Mr. foreign loans is selling out on American war Russell Yoder: "We shouldn't make this Speaker, 194 American soldiers who faced vets, and if they pass the bill, we are going death or mutilation in a war they did not to demand a 'bonus for World War II vets loan to Britain. We've plenty of uses for seek out of 75,000 get some paltry loans, right now. From a recent article, "Others money right here at home. It seems to me while here we have laid in our laps by the contend the American Legion lobbyed for the Churchill is trying to get us into a war with Administration a proposal to strike $25,000,- · bonus." Certainly we lobbyed, and we in­ . Russia with his talk about alliances, and if 000,000 of debts off the record and loan an . tend to keep our promises to our fellow vets he does not keep his mouth shut he will." additional $4,400,000,000 to the British Na­ of World War II. The Anglophiles, Commu­ Roy McReynolds: "Why drain this coun­ tion. That, I venture to say, Mr. Speaker, nipts, and friends of democracy can holler try dry in order to build up the British Em­ when the American people understand this their heads off that this is a cheap appeal to . pire again? If we want peace we should treat simple fact, no explanations will suffice as bring members into the American Legion. Russia as an ally rather than as an enemy." an alibi for the proponents of this loan."­ Again we say, "To hell with the dukes, earls, Lester Gillian: "I'm in favor of letting the (Hon. ROY 0. WooDRUFF, of Michigan, in the and Communists.". Long live the Republic British have the food they need and what­ House of Representatives, February 15, 1946.) of the United States of America. · ever surplus supplies we can spare, but we SELLING OUT ON VETERANS shouldn't shower them 'with dollars. As for European buzzards are flocking to the McLEAN FARMERS OPPOSE BRITISH GIFT-LOAN, Churchill's speech, I don't know. why we United States of America demanding billions 5 TO 1 allow foreigners to come over here and voice of dollars of American taxpayf;lrs' gold. (By Clayton Kirkpatrick) opinions that will get us into trouble." These leeches don't give a damn whether they BLOOMINGTON, ILL., March 16.-McLean Tracy Deal: "I believe in loanlng money to wreck the economy of our country; they are County farmers feel the same way about the people who would pay it back. If we give not satisfied to have received huge gifts of proposed gift-loan of $3,750,000,000 to Great money to Britain and not to other countries, gold from our dwindling resources at Fort · Britain as their city cousins. They are op­ we get a doubtful friend and several certain Knox, Ky.; they are not satisfied to have posed to it by a majority of 5 to 1. enemies." received thousands of United States fighting A poll taken today at a farm sale in Dan­ Harold Crump: "Charity begins at home, lt planes, thousands of United States trucks, vers, an agricultural hamlet 13 miles west of seems to me, and a loan to the British would tanks, millions of tires, 50 United States here, shows that of 30 farmers questioned 20 be charity. They didn't pay before and they bat t leships, and millions of tons of fuel, food, are against the loan, 4 are for it, and 6 are won't this time. The alliance idea is a good and clothing; they want more, and, wha1:a undecided, one. It will take a lot of pow.er to keep 1946 CONGRESSION.AL RECORD-SENATE 4161 peace, and we would be strengthened by an [From the New York Daily News of April 2, Then, too, if we should loan Britain this alliance." 1946] money, there would be no excuse for our G. J. Smith: "We should lend Britain THE BRITISH "LOAN" refusing to make similar loans to other na­ enough to make sure everybody has enough Since Lord Northcliffe. died Lord Beaver­ tions. France first intimated that it would to eat, but there's no excuse to lend them like a loan of two and one-half billions; now billions of dollars." brook has become the most powerful and in­ it hints that it might be willing tQ settle for :fiuential newspaper publisher in Great five billions. Stalin some time ago told F. H. Schwartz: "I haven't. made up my Britain. m ind about the loan, but I am against enter­ United States Congressmen visiting Moscow Lord Beaverbrook was born in Newcastle, ing an alliance. It would just provoke Russia. that Russia would settle for a loan of six We should depend on the United Nations New Brunswick, Canada, son of the Reverend billions-some, at least, of which would go Organization to solve these problems." William Aitken, Scotch minister at New­ to push the cause of communism in the rest castle. Beaverbrook's original name was of the world, including the United States. William Maxwell Aitken. All this money, it should be emphasized, LOAN TO BRITISH OPENING WEDGE, TEACHER He became a successful businessman in would come, not out of the air or a magician's WARNS-QTHERS WILL WANT THEIRS, DEAN New Brunswick; then conquered Canada, so hat or a bookkeeper's bottle of red ink, but i>REDICTS to speak; then went to England. There he out of the pockets of United States taxpayers. If the proposed $3,700,000,000 loan to Great built his newspapers-London Daily Express, These days, we are all taxpayers, directly or Britain is made, the United States will face Sunday Express, Evening Standard; was indirectly. loan demands from other nations, and be created First Baron Beaverbrook in 1917; and As we've said before, we think this whole placed in the position of giving diplomatic served in various cabinets. His most notable matter is one for the American Legion to affront if it refuses. public services were rendered as Minister of consider thoughtfully. The Legion, we be­ This warning was given by Dr. Clarence E. Supply in 1941-42, in which capacity he got lieve, should consider the question whether Manion, dean of tl).e College of Law of the Britain's aircraft industry really rolling 'em it wouldn't prefer to have these billions go University of Notre Dame, in a recent address out for war purposes. to our own World War II veterans in the form before the Northern Indiana Conferenc·e of The London Daily Express has the world's of· bonuses, rather than to British, French, Bank Auditors and Controllers in South Bend, largest daily newspaper circulation-about and Russian veterans. Having carefully con­ Ind. - 3,400,000 at last report-for an interesting sidered this question, the Legion should act Dr. Manion said that the loan arrangement reason. It is printed simultaneously in three accordingly. sounds like a chapter from Alice in Wonder­ cities-London, Manchester, and Glasgow. land. He charged it is intended to establish Thus, it pretty well blankets England, Scot­ [From the Jackson (Miss.) Daily News] a precedent for a $6,000,000,000 cash advance land, and Wales. THAT BRITISH LOAN to Russia, a $600,000,000 cash advance to This mechanical advantage, of being able to print in three large cities on a relatively The Senate will be engaged during the France, and "comparable amounts to every coming week with a debate of Great Britain's other country on the globe." small but thickly populated island, is the main reason why the London Daily Express request for a $3,750,000,000 loan. LISTS OTHER PROSPECTS has a larger circulation than the New York Great Britain ~ s public debt today is $22, "If the British transaction is approved," Daily News, which has the largest newspaper 398,000,000, compared with- $8,026,127,000 in the law-school dean asserted, "subsequent re­ circulation in America. 1928, ari increase of 179 percent, due mostly fusal to deal in like manner with Russia, We mention Lord Beaverbrook at such to World War II. France, and other countries will be construed length because his press power gives impor­ Compare that, if you please, with our na­ tance to anything he says on public affairs. tional debt of about $278,000,000,000. as a diplomatic affront to those countries. Instead of requesting a 50-year loan fronl Dr. Manion said that in order to finance What he is saying nowadays about the the United States of America, without se­ any subsequent exorbitant loans the Govern­ proposed United States loan to Great Brit­ curity and at a trivial interest rate, why ment will have to borrow from its citizens ain is of particular importance to Americans. doesn't Great Britain offer to sell her bonds at high interest. The national debt will in­ Lord Beaverbrook's view, as set forth in to our citizens direct? This can easily be crease as a result, he said, and reduce the the Lon..don Daily Express, is that His Maj­ accomplished by newspaper advertisements­ value of war bonds in the hands of the peo­ esty's Government should graciously accept but not for 50-year bonds. Make several ple. Deficit spending will continue and in­ the '1loan," but that it should also maintain issues--one for 10 or 15 years at 2 ¥2 percent :fiation will be accelerated, he warned. imperial preference. interest-one for 20 years at 3 percent and "If the millions of Americans whose sav­ The "loan" would come to about $4,000,- one for 30 years at 3¥2 percent. Place these ings are now patriotically invested in war 000,000, with interest at 2 percent. Britain advertisements in the principal newspapers bonds know what is good for them they will wouldn't have to begin payments on either in the United States, Canada, Australia, Union kill this hypocritical British loan by an interest or principal till 1951, and it would of South Africa, and Malaya-these countries avalanche of protests to Congress," Dr. have 50 years after that to pay in full. In have tremendous natural resources and all Manion said. years when British export trade fell below necessary items to feed an'd clothe all human prewar levels, it could omit the interest. SEES THmTY BILLION GIFT beings. Also, keep it in the forefront of your mind The Notre Dame professor asserted that the IMPERIAL PREFERENCE Imperial preference is a big, rather re­ that Great Britain still owes us a debt of proposed loan to Britain amounts to a gift about $12,000,0~,000, with interest, accumu­ of $30,381,000,000. Under the loan terms, he sounding name for a simple device. This simple device is the maintenance of tariff lated since World War I. said, $2,331,000,000 still owed America by Buying wars from our British cousins, and Great Britain from World War I is automati­ walls around the British Empire, to make it hard for United States or other nonempire paying the entire bill, is a drain on our re­ cally canceled·and forgiven. In addition, he sources that is quite too heavy. said, twenty-five billion due under lend-lease business people to sell their goods inside the is reduced to a minimum of fifty million and Empire while making it easy for Empire a maximum of seven hundred and fifty mil­ business people to sell their goods inside the WOODLAWN AMERICAN LEGION POST OPPOSES lion. On top of this, he declared, three bil­ Empire. LOAN TO BRITAIN lion is to be given without repayment for It is a trade monopoly scheme, whereby a WOODLAWN POST No. 175, 55 years. market consisting of about one-fourth of the THE AMERICAN LEGION, . "For this thirty billion three hundred mil­ earth's land area and about one-fourth of its Chicago, Ill., January 15, 1946. lion-three billion and twenty-seven billion total population is pretty thoroughly fenced Mr. WILLIAM RANDOLPH HEARST, in excused or forgiven :kldebtedness to us­ off for the benefit of business people inside San Simeon, Calif. we get in return," said Manion, "only the that marlcet. · DEAR MR. HEARST: The following resolution unsecured promise of a debtor who has de­ Lord Beaverbrook has a perfect right to was presented and adopted at a recent meet­ faulted to us repeatedly during the past 25 think and talk about imperial preference, ing of our post and represents the opinion years and who now pleads bankruptcy." and to be for it, as a veteran British Empire of our membership. "firster." The Americanism committee of our post TERMS PROTESTS PHONY Americans, however, have an equal right to was authorized to send a copy to the Illinois Dr. Manion called British protests against think about what imperial preference would Senators-LUCAS and BROOKS. the loan mere sham. The reported opposi­ mean to them; and whether they would be F. WILBER WATSON, tion to it in London is strictly phony, he said. smart or idiotic to extend Britain a "loan" of Commander. The British complaints, he declared, are de­ $4,000,000,000 with the expectation that im­ Whereas the public debt of the United liberately meant to give Americans the false perial preference would be maintained there­ States is nearing the astronomical height of impression that for once in their lives they after. $300,000,000,000 and seems likely to go even have o~tsmarted the British. "They actually Britain, with a Socialist government, could higher; and are giving us the horse laugh," Manion said. use this money, among other things, to speed Whereas if this debt is not curtailed and "If we are in a mood for outright charity," up nationalization of its industries. Thus, brought under control, or drastically reduced, Dr. Manion said, "this is no time to bankrupt a capitalist nation would be helping to a serious danger of ruinous inflation will ob­ ourselves in order to socialize the British coal finance socialism in another nation-rather tain to the detriment of the public welfare mines or to nationalize the Bank of England." ridiculous. throughout the country; and 4162 CONGRESSIONAL RECORD-SENATE APRIL 26 Whereas returning GI's are required to pay the provisions thereof are not retroac­ agreement entered into between this 4 to 5 percent interest on loans from the tively effective. Many claims similar to count~y and the United Kingdom. United States Government: Therefore be it the present one have been disallowed by Therefore, in the absence of any agree­ Resolved, That Woodlawn Post No. 175, County of Cook, State of Illinois, American the Government. Hence, the approval of ment for limitation of debate, which I Legion, is unalterably opposed to the grant­ relief legislation on behalf of the widow am not willing to propose now, let me say ing of a loan to Great Britain, under its of the former employee named in this that I hope Senators will be here Mon­ proposed conditions, for the following enactment would give her preferential day prepared to hasten consideration of reasons: treatment and, no doubt, would result in this proposed legislation as much as is 1. That the interest rate (1.6 percent) is numerous relief bills with respect to other possible, consistent with its importance. entirely too low in comparison with other former·employees similarly situated. For SECOND DEFICIENCY APPROPRIATIONS governmental obligations, and, further, that the reason stated herein I do not feel returning veterans desiring a loan would ·Mr. McKELLAR. Mr. President, I have to pay more than twice that ra,te bf justified in giving this enactment my interest to secure a small loan for rehabili­ approval. move that the unfinished business be laid tation purposes. HARRY S. TRUMAN. aside temporarily, and that the Senate 2. That the agreement is so cunningly APRIL 26, 1946. proceed to the consideration of House devised in that it compels us to establish a LEAVE OF ABSENCE bill 5890, the deficiency appropriations definite fixed policy of tariff that our failure bill. to do so would afford Great Britain a valid Mr. BILBO. Mr. President, while I The motion was agreed to: and the reason to default on the agreement at a later have the floor, I wish to ask leave of the Senate proceeded to consider the bill date. This provision should be remedied. S::!nate until the 2d day of July. I 3. That Great Britain has not divulged

WAR DEPARTMENT "Central garage," $4,200; Courts," on page 76, line 15,. change the For- "Department of Vehicles and Traffic (pay­ section number from 302 to 202; and in The Panama Canal: able from highway fund)," $40,500; line 21, after the word "in", to insert "Maintenance and operation of the Pana• "Reimbursement of other appropriations (payable from highway fund)," $109,600; "Senate Document Numbered 159, and." ma Canal," $587,000; The amendment was agreed to. "Sanitation, Canal Zone," $477,000; "Operating expenses, Refuse Division,'' "Civil government," $361,000; $46,900; · The next amendment was, on page 77, - Total, War Department, $1,425,000' "Operating expenses, Sewer Division," $59,- after line 4, to insert: "State Department, 260; - $768.80." ' DISTRICT OF COLU~BIA "Operating expenses, Water Division (pay­ The amendment was agreed to. For- able from water fund)," $83,650; General administration: Washington Aqueduct: "Operating ex­ The next amendment was, on page 77, "Executive office," $17,550; penses (payable from water fund)," $22,360; line 7, after "War Department", to strike - "Office of the corporation counsel," $17,720; "National Capital Parks," $96,420; out "$4,762.84" and insert "$26,129.04." "Board of Tax Appeals," $2,790; "National Capital Park and Planning Com­ The amendment was agreed to. Fiscal Service: - mission," $7,410; The next amendment was, on page 77, "Asse:::sor's office," $45,870; "National Zoological Park," $65,670; line 8, after the words "In all", to strike "Collector's office," $19,530; Total, District of Columbia, $6,994,700; "Auditor's office," $36,400; out "$20,924.08'' and insert "$43,059.08." "Purchasing Division," $7,640; DIVISION OF EXPENSES The amendment was agreed to. Regulatory ~gencies: The sums appropriated in· this act for the The next amendment was, on page 77, "Alcoholic Beverage Control Board," $6,210; District of Columbia shall, unless otherwise line 18, after the word "in", to insert "Board of Indeterminate Sentence and specifically provided, be paid out of the gen-. "Senate Document No. 158, and." Parole," $4,840; · eral fund of the District of Columbia, as de­ "Coroner's office," $7,050; • fined in the District of Columbia Appropria­ The amendment was agreed to. "Department of Insurance," $7,300; 'tion Act, 1946. The next amendment was, on page 77, "Department of Weights, Measures, and SEC. 202. The restrictions contained in ap­ ·line 21, after "Navy Department", to Markets," $19,670; propriations .or affecting appropriations or strike out "$35,000" and insert "$52,500." "Minimum Wage and Industrial Safety other funds, available during the fiscal year The amendment was agreed to. Board," $6,750; _ 1946, limiting the amounts which may be ex­ "Office of Administrator of Rent Control," pended for personal services or for other pur­ The next amendment was, on page 77, $6,510; poses, or amounts which may be transferred line 22, after "War Department", to "Office of Recorder of Deeds," $32,500; between appropriations or authorizations, are strike out "$9, 731.68" and insert "$36,- "Poundmaster's office," $9,230; hereby waived to the extent necessary to 188.27." "Public Utilities Commission," $14,320; meet increased pay costs authorized by the The amendment was agreed to. "Zoning Commission," $2,170; acts of June 30, 1945 (Public Law 106), July The next amendment was, on page 77, Public Schools: 6, 1945 (Public Law 134), July 14, 1945 (Public Operating expenses: Law 151), and July 21, 1945 (Public Law 158), line.23, after the words "In all", to strike "General administration," $71,330; and other legislation enacted during or ap­ out "$44,731.68" and insert "$88,688.27"; "General supervision and instruction," plicable to the fiscal year 1946 authorizing and on page 78, line 1, after the word $1,355,160; increased pay for civilian employees of the "judgments", to insert "listed in· Senate "Vocational education, George Deen pro­ Government. · · Document No. 158 and House Document gram," $16,350; No. 472; also necessary sum to pay inter­ "Operation of buildings and maintenance Mr. 'McKELLAR. The whole of title est on judgments set forth in Senate of equipment," $386,460; II is stricken out because Congress took Document No. 112, the principal of the "Public Library," $112,740; action some time ago making similar judgments having been appropriated for Recreation Department: "O~rating ex- provision. · penses," $56,410; The PRESIDING OFFICER. The in Public, 269, dated December 28, 1945." "Metropolitan Police," $777,040; question is on agreeing to the amend­ The amendment was agreed to. "Fire Department," $383,400; ment reported by the committee. The next amendment was, under the "Policemen's and Firemen's Relief," $292,- subhead "Judgments, United States 190; The amendment was agreed to. The next amendment was, in the Court of Claims," on page 78, line 12, to Courts: change the section number from 303 to "Juvenile court," $27,260; heading, on page 74, line 9, after the word "Psychiatric service, juvenile court," "Title", to strike out "III" and insert 203; and in line 14, after the word ''in", $1,360; "II"; and in line 12, to change the sec­ to insert "Senate- Document No. 160, "Municipal court," $45,440; tion number from 301 to 201. and." "Municipal court of appeals," $5,000; The amendment was agreed to. The amendment was agreed to. "Probation system," $4,920; The next amendment was, on page 75, The next amendment was, on page 78, "Office of Register of Wills," $13,730; after line 16, to insert: "Commission on Mental Health," $2,840; after line 14, to insert: Health Department: (b) For the payment of claims for dam­ Legislative branch: Architect of the Capi­ "Health Department (excluding hos- ages to or losses of privately owned property tol, $6,781.49. pitals)," $209,010; . adjusted and determined by the following The amendment was agreed to. "Glenn Dale Tuberculosis Sanatorium," respective departments and independent $225,400; offices, under the provisions of the act en­ The next amendment was, on page 78, "Operating expenses, Gallinger Municipal titled "An act to provide a method for the line 21, after the words "Public Buildings Hospital," $504,130; settlement of claims arising against the Gov­ Administration", to strike out "$9,000" Public welfare: ernment of the United States in the sum not and insert "$90,998.15." "Office of the Director," $7,920; exceeding $1,000 in any one case," approved The amendment was agreed to. Family Welfare Service: December 28, 1922 (31 U. S. C. 215), as fully The next amendment was, on page 79, "Operating expenses, child care," $20,000; set forth in Senate Document No. 161, line 5, after "Navy Department" to strike "Adult assistance," $32,700; Seventy-ninth Congress, as follows: "Operating expenses, institutions for the Executive Office of the President: out "$1,787.62" and insert ''$4,426.62." indigent," $55,730; Office for Emergency Management: Office The amendment was agreed to. Juvenile Correctional Service: "Operating of Scientific Research and Development, The next amendment was, on page expenses," $65,410; $33.24; 79, line 6, after "Treasury Department", Adult Correctional Service: "Operating ex­ lndependent offices: to strike out "$120,819.71" and insert penses," $279,740; National Advisory Committee for Aero. "$127 ,333.47 ." Mental Rehabilitation Service: nautics, $28.06; "Operating expenses, District Training Federal Works Agency, $471.20; The amendment was agreed to. School," $111,300; Department of Agriculture, $1,544.60; The next amendment was, on page "Saint Elizabeths Hospital," $903,400; Department of Commerce, $15; 79, line 7, after "War Department", to Public works: Department of the Interior, $1,440.41; strike out "$112,303.37" and insert "Office of chief clerk," $4,560; Post Office Department (payable from "$115,884.55." "Office of Municipal Architect," $13,800; postal revenues), $332.48; The amendment was agreed to. "Operating expenses, Office of Superin- Treasury Department, $2,667.94; The next amendment was, on page tendent of District Buildings," $91,650; In all, $6,532.93. "Surveyor's office," $7,960; 79, line 8, after the words "In all", to "Department of Inspections," $60,550; The amendment was agreed to. strike out "$589,033.86" and insert "$690,- "Operating expenses, Electrical Division," The next amendment was, under the 547.44"; and in line 10, after the word $49.790: subhead "Judgments, United States "judgments". to insert "and interest on 1946 CONGRESSIONAL RECORD-SENATE 4171

the mandate issued in th~ case of Louis BRIDGES, and Mr. GURNEY conferees On prlate site on -grounds now owned by the Townsley, Court of Claims No. 45097." the part of the Senate. United States in the District of Columbia: The amendment was agreed to. Provid~d, That the site chosen shall be ap­ Mr. LANGER. Mr. President, I should proved by the National Commission of Fine The next amendment was, under the like to ask the Senator from Tennessee Arts, and the United States shall be put to subhead "Audited claims," on page 79, a question about an item appearing on no expense in or by the erection of this line 21, to change the section number page 79 of the bill. Can the Senator tell statue: Provided further, That unless the from 304 to 204; on page 80, line 6, after us about the case of Louis -Townsley, erection of this statue is begun wfthin 5 the word "in", to insert "Senate Docu­ which seems to involve $690,000? years fro.m and after the date of pass~ge ment No. 162, and"; in line 8 after Mr. McKELLAR. That item is for of this joint resolution, the authorization the words "sum of", to strike out "$10,- overtime payments to employees of the hereby. granted is revoked. 194,651.06" and insert "$12,202,715.10"; Panama Canal. The whole amount in­ REAPPOINTMENT OF DR. VANNEVAR BUSH in line 13, after the word "fund", to strike volved goes to them because of the law AS CITIZEN REGENT OF THE SMITH­ out "$446.24" and insert "$472.49"; in which Congress passed. SONIAN INSTITUTION line 14, after the word "and", to strike Mr. LANGER. Townsley was simply Mr. BARKLEY. Mr. President, from out "$549,355.34" and insert "$563,026.- one man suing for himself and all the the Committee on the Library I report 40"; and in line 15, after the words "in others? favorably, without amendment, House all", to strike out "$10,744,452.64" and in­ Mr. McKELLAR. Yes; for himself joint resolution 333, and ask unanimous sert "$12,766,213.99." . and all the others. consent for its present consideration. The amendment was agreed to. Mr. LANGER. How many employees There being no objection, the joint res­ The next amendment was, in the were involved? olution (H. J. Res. 333), to provide for heading on page 81, line 4, after the word Mr. McKELLAR. That is not shown. the reappointment of Dr. Vannevar Bush "Title", to strike out "IV" and insert The amount involved represents the as citizen regent of the Board of Regents "III"; and in line 5 to change the section judgment of the court, and that is why of the Smithsonian Institution, was con­ number· from 401 to 301. it is not given in detail. sidered, ordered to a third reading, read The amendment was agreed to. Mr. LANGER. I thank the Senator the third time, and passed. The next amendment was, on page 82, from Tennessee. line 1, to change the section number from EXPORTS AND IMPORTS OF PAPER AND ERECTION OF STATUE OF NATHAN HALE PAPER MATERIAL 402 to 302. IN THE DISTRICT OF COLUMBIA The amendment was agreed to. Mr. KNOWLAND. Mr. President, at The PRESIDING OFFICER. That Mr. BARKLEY.· Mr. President, from the time the lumber hearings were being completes the committee amendments. the Committee on the Library, I report held by a subcommittee of the Committee The bill is open to further amendment. favorablY, without amendment, Senate on Agriculture and Forestry, a remark If there be no further amendment to be Joint Resolution 84, and ask unanimous. was made by one of the witnesses relative offered, the question is on the engross­ consent for its consideration. to some type of agreement between Great ment of the amendments and the third There being no objection, the joint Britain or Canada and the United States, reading of the bill. resolution

[Values in thousands of dollars]

Paper and paper materials

Period Paper base stocks Paper and manufactures Total Total Waste 2 . Other Total Newsprint Other

.Annual: 1940.------· -· -.-- ·------. ------·--·------98,782 35,441 4,287 31,154 63, 341 2, 644 60,697 1941.------·-. ---·--- ·-.-----.------·------92,672 25,633 3, 268 22,365 67,039 4,820 62,219 1942.------·------·------87,790 26,042 847 2.5,195 61,748 3,016 58, 732 1943.------·------86,331 21,715 490 21,225 64,616 2, 478 62,138 1944.------.------·------.------90,183 16,355 276 16,079 73,828 2, 513 71,315 1945.------·-- ·- ·-·------·-·-··--·------• ·-··------.------102,Q15 10,936 275 10,661 91,079 3, 159 87,920 Monthly: 1945- January ____ ------·--- .• ·------.• ·------·------8,025 781 8 773 7,244 108 7, 135 February_ ._ .. ______. ------______------___ ------_---- .. ---- 6,954 650 7 643 6,304 101 6, 203 March ______·------. ___ .... ------9, 753 1, 286 12 1, 274 8, 467 417 8, 050 ApriL------_--- _------_---- ___ - ~--- - _----- _-- . ------9, 228 1,625 17 1, 608 7,603 296 7, 307 May------______._._ ..• _....•••••• ------10,134 1,305 13 1, 292 8,829 176 !l, 653 June ______---_------9,058 1, 501 75 1,426 7,557 422 7,135 July______--__ ------10,741 1,826 10 1,816 8, 915 €02 8, 313 August. ______-- ______-_------.------8,091 884 11 873 7, 207 256 6, 951 Sep tern ber ______• ______• ___ . -- __ ------.------.---••• ---.------6,595 198 37 161 6, 397 292 6,105 October ______-----_---_------5,487 384 26 358 5,103 173 4,930 November ______------9,940 289 21 268 9, 651 191 9, 460 December------8,009 2[)7 38 169 7, 802 123 7, 679 1946- 10,229 357 84 273 9,872 566 9,30fi ~~~~7ry-_:::::::::::::::::::::::::::::::::::::::;,::::::::::::::::::::::::::::: 8,553 243 ~ 159 8, 310 182 8,128

1 United States merchandise. 1 Waste, including overissue and old newspapers. 4172 . CONGRESSIONAL RECORD-SENATE APRIL 26 United States imports 1 of paper and paper materials, annual, 1940-45, and monthly,.January 1!145 to February 1946 [Values in thousands of dollars]

Paper and paper materials

Paper base stocks Paper and manufactures Total Total Other .Total Newsprint Other

Annual: 1940_------208,025 75,414 1, 257 74,157 132,611 124,659 7, 952 1941_------231,008 84,264 2,458 81,806 146,744 134, 124 12,620 1942_------_____. _-- .------232, 0'45 93, 224 2,297 £0,927 138,821 130,387 8, 434 1943_------233,990 95,475 1,882 93 ,593 138, 515 132,268 6,247 1944_------~ ------233,769 92,166 2,253 89,913 141,603 135,242 .6,361 1945_------297,777 140,244 2,442 137,802 157,533 150,814 6, 719 Monthly: 1945-January ______------______' _ February ______: ______17, 384 7,009 172 6,837 10,375 9, 204 471 March ______17,471 7, 333 164 7,169 10, 138 9,573 565 20,006 7, 912 153 7, 759 12,094 11,516 57a 19, 213 7,104 206 6, 897 12, 110 11, 5!)0 520 21,071 7, 627 204 ,7,423 13,444 12,828 616 21,786 8, 949 275 8, 1374 12,837 12, 189 648 July ____==_ =-- = =___ = = =______======______= = = ·== =_ =___ = = =-----_- ======- =--- = = ·=--- = = =____ = = = =-_- = = =---- = = = =______======- =--~-- =; == =----- = = = = =- 35,974 11,382 137 11,245 14, 592 13, !l04 688 ·t!it~August ~ ______• __ ._------______. 28,910 14, 619 224 14,395 14,291 13,682 609 Eeptember ----- ______-----____ ------______. ______27,051 13,975 181 13,794 13,076 12, 539 537 October ______------____ ------______25, 231 19, 587 285 . HI, S02 . 15,644 15, 129 515 November-----r _ ------,------31,927 16,650 244 16, 406 15,277 14, E09 463 December ______._.----__ ------. __ .. _---- __ ._.______.. --._ .... --. 31,753 18,098 198 17,900 13, 655 13, 152 f03 1946- . . January __ .. ___ ..... __ .. ___ . ___ . _. _.• ____ . _. _" ______. ____ .... ______. __ February ______------______32, [66 11:, £42 174 16,768 15,624 . 14,997 627 ';.7, 259 11,691 190 11, 501 15,568 14,930 638

1 Imports for consumption. . . .Mr. KNOWLAND. Mr. President, I de­ be this agreement or another one where Mr. BARKLEY.. Mr. President, with sire to read into the RECORD a letter which the national . security is not involved, the exception of Report' No. '24, Calendar I have received from Mr. Louis J. Walin-. where negotiations are not pending which No. 729, the nomination of Lowell C. sky, of the Civilian Production Adminis~ might be upset, I do not see any reason Pinkerton, Of Missouri, to be Envoy Ex­ tration, dated April 24, and addressed to for withholding· it. It does not make traordinary and Minister Plenipoten­ me, as follows: sense to me to try and hold such an agree­ tiary of the United States of America to DEAR SENATOR KNOWLAND: At your req1,1est ment from the Congress or from the peo­ Iraq, which the se'nn.tor from Missouri I am transmitting a copy of the preliminary ple by giving it a high classification. LMr. DONNELL} fla;s asked to be put over, report of the combined pulp and paper w9rk­ EXECUTIVE SESSION I ask unanimous consent that the -re­ ing group to the Combined Raw Materials maining nominations in the foreign Board which was submitted under date of Mr. BARKLEY. I move that the Sen­ service be confirmed en bloc. June 16, 1945, and considered by the Com­ ate proceed to the consideration of bined Raw Materials Board at a meeting on The PRESIOING OFFICER. Without executive business. objection: the nominations in the for­ June 19, 1945. The minutes of the meeting The motion was agreed to; and the of June 19 are also attached and should be eign service, with the exception of' that considered as amending in some parts the Senate proceeded to the consideration of . of Lowell C. Pinkerton, of Missouri, are preliminary report. I am transmitting also executive business. · confirmed en bloc. for your information a copy of-a r-eport made EXECUTIVE -MESSAGES REFERRED to the Combined Raw Materials Board by the .Mr. LANGER. Mr. President, I am not pulp and paper missio~ to London and Stock­ The PRESIDING OFFICER (Mr. MAY­ going to object, but I want to say again, holm, July 3-~3, 1945, in the attempt to carry BAN;{ in the chair) laid before the Senate as I did some time ago, that North Da­ further the recommendations made in the messages from the President of the kota has never had a single ambassador original findings of the combined pulp and United States submitting sundry nom­ appointed to any country in the 55 years paper wor'king_.group. - inations, which were referred to the ap­ of its existence. Here is another batch The material is classified as confidential. of appointments of men coming from If there is any further information I can propriate committees. give you in connection wit-h this matter I

immediately notified of all nominations POSTMASTERS '1'0 BE CONSULS GENERAL OF THE UNITED STATES this day confirmed. The following-named ·persons to be post- OF AMERICA The PRESIDING OFFICER. Without masters: · Charles A. Bay objection, the President will be notified ALABAMA H. Merrell Benninghoff . forthwith. Ruth Camp McCarter, Malone, Ala., in place Kenneth C. Krentz RECESS TO MONDAY . of E. C. Dobson, resigned. TO BE FOREIGN-SERVICE OFFICERS, UNCLASSIFIED, William H. McDonough, Whistler, Ala., in VICE CONSULS OF CAREER, AND SECRETARIES IN Mr. BARKLEY. I move that the Sen­ place of W. H. McDonough. Incumbent's THE DIPLOMATIC SERVICE OF THE UNITED ate take a recess until 12 o'clock noon commission expired June 23, 1942. STATES OF AMERICA on Monday next. ARKANSAS Keld Christensen Robert H. Lunt The motion was agreed to; and NS E. Alice Rushton, Kingsville, Ohio, in place own failings. Make us to UQ.derstand Eugene J. Gillespie Robert W. Biach of W. N. Long, resigned. Charles W. Parker Frederick K. Albrecht that we, too, by our own default, were re­ Carlton H. Waters Alfred H. Lawton TEXAS sponsible for the weakening of the peace John L. Lincoln -- Marion B : Richmond Roxie L. Dunn, Forestburg, Tex., in place that permitted the bloody holocaust of Clarence R Mayes Glen E. Ogden of Roe Sledge, transferred. evil to capture the high places of man­ Donald W. McNaugh- Rufus 0. Warner, Pearland, Tex., in place kind. Guide us in this hour so that we do ton . of M. M. Reasoner, resigned. not fail the hope of the morrow for ASSISTANT SURGEON TO BE TEMPORARY SENIOR which the bleeding torso of a crucified ASSISTANT SURGEON CONFIRMATIONS ·humanity now prays. Strengthen Thou Robert E. Staff Executive nominations confirmed by our souls so that we will now arise to our SENIOR ASSISTANT DENTAL SURGEON TO BE TEM­ the Senate April 26 (legislative day of full duty, as the chosen instruments of POR~Y SENIO!t _DENTAL . SURGEON March 5), 1946: high purpose·of a free people, so that we George A. Nevitt will help save our land from the back­ FOREIGN SERVICE ,wash of chaos that will now come if we SENIOR ASSISTANT DENTAL SURGEON TO BE TEM­ Joseph Flack to be Ambassador Extraordi­ PORARY DENTAL SURGEON do not press forward to bring the fruits nary and Plenipotentiary of the United States John C. Heckel of America to Bplivia. of victory to the foot of an altar of a new ASSISTANT DENTAL SURGEON TO BE TEMPORARY J. Rives Childs to be Envoy Extraordinary covenant of justice and peace; for Thine DENTAli SURGEON and Minister Plenipotentiary of the United must now be the kingdom, the power, Joseph E. Unsworth States of America to the Kingdom of Saudi and the glory. Anien. Arabia. THE JOURNAL ASSISTANT DENTAL SURGEON TO BE TEMPORARY Edwin F. Stanton to be .Envoy Extraordi­ SENIOR ASSISTANT DENTAL SURGEON nary and Minister Plenipotentiary of the On request of Mr. BARKLEY, and by Stanley J. Ruzicka United States of America to Siam. unanimous consent, the reading of the XCII--264