1932 CONGRESSIONAL RECORD-SENATE 1557 Also, a bill (H. R. 7343) granting a pension to Maria C. 313. By Mr. JOHNSON of Texas: Petition of F. W. Welch, Hill; to the Committee on Invalid Pensions. of Mexia, Tex., opposing a Federal sales tax on motor Also, a bill Philadelphia, Pa., who Harney; to the Committee on War Claims. marched from that city to Washington for the purpose of Also, a bill New York City, on 324. By Mr. SANDERS of Texas: Petition of Joe Byers the 5th day of January, 1932, record their vigorous dis­ and numerous other citizens of Kemp, Tex., for the remain­ approval of H. R. 4711 and 5467, and urge Congress to defeat ing part of their adjusted-service certificates and for pen­ any proposals or measures seeking to reduce wages now paid sions for World War widows; to the Committee on Ways to letter carriers in the Postal ServMe; to the Committee on and Means. Expenditures in the Executive Departments. 325. By Mr. SNOW: Petition of Harry W. Grinnell and 308. By Mr. DEROUEN: Petition of rice growers, farmers, many other citizens of Fort Kent, Me., favoring action by millers, and bankers of Crowley, La., urging Congress to Congress- to place highway trucks and bus lines under regula-"" bring about such action through the Federal Farm Board tions; to the Committee on Interstate and Foreign Commerce. for the disposal _of some of .the American-grown rice to 326. By the· SPEAKER: Petition. of John. F. Hanson, .of China and Japan, on the same terms of credit as was used Lindsborg, Kans., to impeach the present Justices of .the , in the sales of wheat to these foreign countries; to the Com­ Supreme Court of the United States; to the Committee on mittee on Agriculture. the Judiciary. 309. By Mr. GARBER: Petition of A. P. W. Pulp & Power Co. terstate Commerce Commission, relative to the unsatisfac­ the next fiscal year if the program now agreed upon is carried out. tory situation of the canning industry in the Middle West, He issued a warning, however, that bills now before Congress would total $40,000,000,000, if enacted, and tha.t tlle Government and praying correction thereof, which, with· the accompany­ must end the orgy of spending. ing paper, was referred to the Committee on Interstate ECONOMY ESSENTIAL Commerce. The statement follows in part. Mr. GOLDSBOROUGH presented a paper to accompany the bill ; selves into prosperity." S. 2698. An act for the relief of Herman Ingman (Rept. No. 68); and So, Mr. President, when we consider these recommenda­ tions for the most extravagant appropriations ever asked S. J. Res. 56. Joint resolution authorizing the Comptroll~ for by ~my President, and when we consider his warning General of the United States to consider, adjust, and settle this morning to the Congress to cut doWn expenses, I want the claim of the Indiana State Militia for military service on to say to the President, in all kindness: the Mexican border ·(Rept. No. 69). Mr. HOWELL also, from the Committee on Claims, to Why beholdeth thou the' mote that is in thy brother's eye. but which was referred the bill (S. 968) for the relief of certain considerest not the beam that is in thine own eye? employees of the Forest Service, Department of Agriculture, Mr. McKELLAR subsequently said: Mr. President, this reported it with amendments· and submitted a report -thereon. - in reference to appropriations made from the White House, -He also, from the same committee, to which were referred and at the time I did not have the figures. I have them the following bills, reported them severally with an amend- now. ment and submitted reports thereon: - - Under the heading "Executive Office," in the Budget which S.157. An act for the relief of Sarah Ann Coe (Rept. No. the President transmits to Congress, he lists expenditures 71); totaling $472,380 for the current fiscal year, an increase of S. 942. An act authorizing the Secretary of the Treasury $50,000 over 1931. The estimate for tlie 1933 fiscal year is of the United States to refund to the Farmers' Grain Co., of $429,380._ Omaha, Nebr., income taxes illegally paid to the United MESSAGE FROM THE HOUSE States Treasurer

MESSAGES FROM THE PRESIDENT Wall Street thinks he is too dry, not.that he is too radical. Wall Street does not like some of his supporters, Wall Street does not Messages in writing from the President of the United like his vagueness and the uncertainty as to what he does think; States submitting several nominations were communicated but if any western progressive thinks that the governor has chal­ to the Senate by Mr. Latta, one of his secretaries. lenged directly or indirectly the wealth concentrated in New York City, he is mightily mistaken. HOUSE BILL REFERRED Mr. Roosevelt is, as a matter of fact, an excessively cautious The bill (H. ' R. 6596) granting pensions and increase of politician. He has been governor for three years, and I doubt whether anyone can point to a single act of his which involved pensions to certain soldiers and sailors of the Civil War and any political risk. Certainly his water-power policy has cost him certain widows and dependent children of soldiers and sailors nothing, for . the old interests who fought Smith have been dis­ of said war was read twice by its title and referred to the placed by more enlightened capitalists, quite content to let the State finance the development. I can think of nothing else that Committee on Pensions. could be described as evidence of his willingness to attack vested "THE CANDIDACY OF FRANKLIN D. ROOSEVELT" interests, and I can think of one outstanding case in which he has shown the utmost reluctance to attack them. I refer to his Mr. KEAN. Mr. President, I ask leave to have printed it relations with Tammany. the RECORD an article by Walter Lippmann in the New York It is well known in New York, though apparently not in the Herald Tribune of the 8th instant, entitled " The Candidacy West, that Governor Roosevelt had to be forced into assisting the exposure of corruption in New York City. It is well known in New of Franklin D. Roosevelt." York that, through his patronage, he has supported the present There being no objection, the article was ordered to be powers in Tammany Hall. It is well known that his policy has printed in the RECORD, as follows: been to offend Tammany just as little as he dared in the face of the fact that an investigation of Tammany had finally to be under­ (From the New York Herald Tribune, Friday, January 8, 1932] taken. It is true that he is not popular in Tammany Hall, but, TO-DAY AND TO-MORROW-THE CANDIDACY Of FRANKLIN D. ROOSEVELT though they do not like him, they vote for him. For there is a working arrangement between him and Tammany. That was By Walter Lippmann proved last November when the Tammany organization went to It is now plain that sooner or later some of Governor Roosevelt's the polls for the amendment which Smith opposed and Roosevelt supporters are going to feel badly let down. For it is impossible sponsored. Tammany had no interest in that amendment. It that he can continue to be such different things to such different dealt witht reforestation of hundreds of miles from the sidewalks men. He is, at the moment, the highly preferred candidate of of New York. Yet it· was the Tammany machine which gave the left-wing progressives like Senator WHEELER, of Montana, and of governor his victory. Bryan's former secretary, Representative HowARD, of Nebraska. He I do not say that Mr. Roosevelt might not at some time in the is, at the same time, receiving the enthusiastic support of the next few months fight Tammany. I do say that on his record New York Times. these last three years he will fight Tammany only if and when he Senator WHEELER, who would like to cure the depression by de­ decides it is safe and profitable to do so. For Franklin D. Roose­ basing the currency, is Mr. Roosevelt's most conspicuous sup­ velt is no crusader.- He is no tribune of the people. He is no porter in the West, and Representative HowARD has this week enemy of entrenched privilege. He is a pleasant man who, with­ hailed the governor as " the most courageous enemy of the evil out any import*"'nt qualifications for the ofilce, would very much influences" emanating from the international bankers. The New like to be President. York Times, on the other hand, assures its readers that "no up­ It is meaningless· for him to talk about " leadership practical, setting plans, no socialistic proposals, however mild and winning sound, courageous, and alert." He has been governor in the com­ 1n form," could appeal to the governor. munity which has been the financial center of the world during The Roosevelt bandwagon would seem to be moving in two the last year of the boom and the two years of the depression. opposite directions. The Governor of New York is listened to when he speaks. Can There are two questions raised by this curious situation. The anyone point to anything Mr. Roosevelt has said or done in those first is why Senator WHEELER and the Times should have such three years to provide the leadership we should all so much like to contradictory impressions of their common candidate. The sec­ have had? I do not think anyone can. He has carefully refrained ond, which is also the more important question, is which has during these years from exerting any kind of leadership on any guessed rightly. national question which was controversial. That was probably The art of carrying water on both shoulders is highly developed shrewd politics. It has helped his candidacy. But as a result of ln American politics, and Mr. Roosevelt has learned it. His mes­ his strategic silence nobody knows where he stands on any of the sage to the legislature, or at least that part of it devoted to his great questions which require practical, sound, courageous, and presidential candidacy, is an almost perfect specimen of the bal­ alert leadership. And those who think he can supply such leader­ anced antithesis. Thus at one place we learn that the public de­ ship next year are playing their hunches. mands "plans for the reconstruction of a better-ordered civiliza­ RECONSTRUCTION FINANCE CORPORATION tion" and in another place that "the American system of eco­ nomics and government is everlasting.'' The first sentence 1s The Senate resumed the consideration of the bill (S. 1) meant for Senator WHEELER and the second for the New York to provide emergency financing facilities for banks and other Times. financial institutions, and for other purposes. The message is so constructed that a left-y.ring Progresst~e can read it and find just enough of his own phrases in it to satisfy The VICE PRESIDENT. The question is on the amend­ himself that Franklin D. Roosevelt's heart is in the right place. ment offered by the Senator from New Mexico [Mr. BRATTON] He will find an echo of Governor La Follette's recent remarks to the amendment reported by the committee. about the loss of " economic liberty.'' He will find an echo of Governor La Follette's impressive discussion about the increasing Mr. BRATTON. Mr. President, just one additional word concentration of wealth and how it does not guarantee an intelli­ respecting the amendment. It was said by the Senator from gent or a fair use of that wealth. He will find references to Virginia [Mr. GLASS] yesterday that the purpose of this " plans." On the other hand, there are all necessary assurances legislation is to stop deflation and combat unemployment to the conservatives. "We should not seek in any way to destroy or to tear down"; our system 1s "everlasting"; we must insist" on With those two cardinal principles in mind, Mr. President, the permanence of our fundamental institutions." this amendment does not depart from the scope of the That this is a studied attempt to straddle the whole country I pending legislation. By way of illustration, this amendment have no doubt whatever. Every newspaper man knows tha whole is designed to aid a reclamation project somewhere in the bag of tricks by heart. He knows, too, that the practical politician supplements these two-faced platitudes by what are called private West; it was organized under State law and is in process of assurances, in which he tells his different supporters what he construction. Some of its securities may have been sold, knows they would like to hear. Then when they read the bal­ its forces organized, and its program under way when the anced antithesis each believes the half that he has been reassured about privately and dismisses the rest as not significant. That, financial crash came, as a consequence of which it is para­ ladies and gentlemen, is how the rabbit comes out of the hat; that lyzed; it is unable to secure credit; it is suffering from defla­ is how it is possible to persuade Senator WHEELER and the New tion. Relief extended in a situation of that kind will help York Times that you are their man. combat unemployment. All the amendment does, Mr. Presi­ In the case of Mr. Roosevelt it is not easy to say with certainty dent, is to make that sort of an industry eligible for relief whether his left-wing or his right-wing supporters are the more deceived. The reason is that Franklin D. Roosevelt is a highly through the corporation. impressionable person, without a firm grasp of public affairs and It is proposed by the advocates of the measure to use without very strong convictions. He might plump for something $500,000,000 in an effort to stimulate business, stop deflation, which would shock the conservatives. There is no telling. Yet when Representative HowARD, of Nebraska, says that he is "the and combat unemployment. If the measure can do that most dangerous enemy of evil infiuences," New Yorkers who know everyone will be gratified. In these circumstances I see no the governor know that Mr. HowARD does not know the governor. reason why relief of thls kind should be accorded to railroad F'or Franklin D. Roosevelt is an amiable man with many philan­ companies, banks, insurance companies, building and loan thropic impulses, but he is not the dangerous enemy of anything. He is too eager to please. The notion which seems to prevail in associations, agricultural and livestock credit associations the West and South that Wall Street fears him is preposterous. and be denied to reclamation projects. In my opinion. they, 1932 ·coNGRESSIONAL RECORD-SENATE 1563 too, should have the privilege of going before the board, sub­ SHIPSTEAD J is absent on account of illness. I should like to mitting their applications, and having them passed upon and have this announcement stand for the day. determined by the sound discretion of the members of the The roll call was concluded. board. This is an industry that forms a part of the economic Mr. KING (after having voted in the negative) . I find life of the Western States. It seems to me that, when we that I have a pair with the junior Senator from Minnesota take a nation-wide view of the situation and endeavor to [Mr. ScHALL]. Not knowing how he would vote, I am com­ deal with it from a nation-wide standpoint, there can be no pelled to withdraw my vote. reason why this industry should be excluded when it is pro­ Mr. FESS. I desire to announce the following general posed to provide this enormous sum of money to assist other pairs: industries which may be in distress. The Senator from Iowa [Mr. DICKINSON] with the Senator I make no criticism against the other industries-of course from Missouri [Mr. HAWES]; and not-! content myself now with urging that these small insti­ The Senator from Nevada [Mr. ODDIE] with the Senator tutions, not organized, not powerful, not prepared to wage from South Carolina [Mr. BYRNEs]. a concert of effort in the interest of legislation of this kind, I wish also to announce that the Senator from Nevada but whose cause is meritorious, should be eligible for consid­ [Mr. ODDIE] is absent due to an injury. If present and per­ eration. That is the purpose of the amendment, Mr. Presi­ mitted to vote, he would vote "yea." dent, and with this last word, so far as I am concerned, I Mr. SHEPPARD. I desire to announce that the Senator shall submit the amendment to the Senate. I hope we may from illinois [Mr. LEWIS], the Senator from Missouri [Mr. have a record vote on it. Of course, I shall abide the HAwEs], the Senator from South Carolina [Mr. BYRNES], outcome. the Senator from Maryland [Mr. TYDINGS], and the Senator The VICE PRESIDENT. Does the Senator demand the from Virginia [Mr. SWANSON] are absent on official business. yeas and nays? The roll call resulted-yeas 37, nays 37, as follows: Mr. BRATTON. I do. I ask for the yeas and nays. YEAS-37 The yeas and nays were ordered. Ashurst Cutting Logan Shortridge Mr. SHORTRIDGE. I ask to have the amendment read. Blaine Dill McGill Smith The VICE PRESIDENT. The amendment to the amend- Borah Frazier McKellar Thomas, Idaho Bratton George Neely Thomas, Okla. ment will be read for the information of the Senate. Brookhart Glenn Norbeck Trammell The LEGISLATIVE CLERK. On page 20, line 23, after the Bulow Harris Norris Walsh, Mont. Carey Hayden Nye Wheeler word " determine " and the comma, it is proposed to insert: Connally Howell Patterson To any reclamation, drainage, or irrigation district. association, Copeland Kendrick Pittman or corporation organized under the laws of any State of the United Costigan La Follette Sheppard States, or. NAY8-37 Mr. WALSH of Massachusetts. Mr. President, I should Austin Dale Hull Vandenberg Bailey Davis Kean Wagner like to know the judgment of the members of the Committee Barbour Fess Keyes Walcott on Banking and Currency on this question. Barkley Fletcher Metcalf Walsh, Mass. Mr. WALCOT!'. Mr. President, I do not care to enter into Bingham Glass Morrison Waterman Black Gore Moses Watson a lengthy objection to this amendment, but it is, in my Bulkley Hale Reed White opinion, very foreign to the purposes of the bill, because, no capper Hastings Robinson, Ark. matter how much a reclamation project may need help-­ Coolidge Hatfield Steiwer and I am very sympathetic with the reclamation projects Couzens Hebert Townsend and with the help that they need, and hope they will get it­ NOT VOTING-21 Bankhead Harrison McNary Stephens it does not seem to me that they can be, by the widest Broussard Hawes Odctie Swanson stretch of the imagination, construed as banking institutions. Byrnes Johnson Robinson, Ind. Tydings Therefore I do not believe they could come under the general Caraway Jones Schall Dickinson King Shlpstead terms of the bill, and it seems to me that we are talking Goldsborough Lewis Smoot about something that is irrelevant to the relief of the bank­ ing situation, for which the bill is particularly designed. The VICE PRESIDENT. On this question the yeas are 37, the nays are 37. It is a tie vote and the amendment to The VICE PRESIDENT. The question is on agreeing to the amendment offered by the Senator from New Mexico the amendment is lost. [Mr. BRATTON] to the amendment of the committee. On Mr. BORAH. Mr. President, I desire to say a word about that amendment the yeas and nays have been demanded the vote that has just been cast. and ordered. The clerk will call the roll. I voted for the amendment offered by the Senator from The legislative clerk proceeded to call the roll. New Nexico . [Mr. BRATTONJ. On yesterday, or the day before, Mr. HASTINGS

( .

The estimated requirements of the steamship companies, if they should be permitted to avail themselves of the privi­ leges of this act, would not during the year 1932 exc~d three or four million dollars. Therefore the adoption of the amendment could not deplete the fund, but its adoption would bring substantial relief to the banking institutions of the West, and, I imagine, to those of the Gulf area, and even to the great ports upon the Atlantic, where there is congestion in the handling of commodities, if our shipping service should be permitted to be discontinued. We ought. to remember that when we hold a first lien upon the propert;es of the shipping lines, by that very act­ very proper in itself, it is true-we have deprived them of any place to turn to for financing during the present emer­ gency. In the opinion of some of us at least they are just as important to our producers and our people as are the rail carriers, and more important in many essential re­ spects to the banking institutions than all the other methods of transportation combined. Mr. FLETCHER. Mr. President, I desire to say just a few words in reference to the pending amendment and with respect to the scope of the bill. I regret very much to differ with my colleague the Senator from Washington [Mr. JoNES] and also from my friend the Senator from Oregon [Mr. STEIWER] in respect to this proposed amend­ ment. In the first place, I do not believe it would be effi­ cacious at all. I do not think that any ship or ship lines would be able to get any financial accommodations from 1568 CONGRESSIONAL RECORD--SENATE JANUARY 9 the proposed Reconstruction Finance Con)oration: Under to get loans, because I am afraid· they can not furnish the the very terms of the bill, so far as I understand the ship­ security. In the next place, however, I can not quite favor ping situation, no ship or ship lines will be in a position to loading down this bill with various demands and calls that offer what is designated in the bill as "adequate· security." would tend to defeat the very purpose of the legislation. Of course, shipping is greatly depressed all over the I call attention also to what has been alluded to by the world. I presume with reference to every maritime nation Senator from Virginia [Mr. GLASS], and that is that no one on th~ earth there are difficulties and perplexities and appeared before the Banking and Currency Committee rep­ handicaps in the way of lack of business, lack of tonnage, resenting this situation and asking that ships and ship. lines and a general condition of loss father than of profit in con­ be included in this bill. We never heard of the proposal nection with shipping. A great many ships are tied up all until· the bill was reported to the Senate, and then the over the world. Exports and imports_ have greatly de­ amendment was offered. That, perhaps,. is not an argu­ creased, and we are having the same experience here that ment against it; but it would seem that if they were war­ they are having in other countries. ranted in attempting to come within the provisions of this I wish there were some way of stimulating shipping, but bill, or if they needed it or expected that they could be the great need to-day of ships and ·Ship lines and ship­ provided for, they would have made some sort of presenta­ owners is an increase of patronage. That is what they need. tiQ.n of their claims to the committee while the bill was They will not get that by borrowing money. It has to be under consideration in the committee. built up, based upon good management, upon efficiency, Mr. COPELAND. Mr. President-- upon skill, upon the practice of economy, and upon adver­ The PRESIDING OFFICER. Does the Senator from tising and effort in various directions. Those are some of Florida yield to the Senator from New York? the ways by which the tonnage must be built up. For in­ Mr. FLETCHER. I yield; but I must go on and finish stance, if American ships to-day were moving two-thirds of in a few minutes. the exports and imports to and from this country, small as Mr. COPELAND. I think there is an ample reply to what they are compared to what they have been, every one of the Senator has just said. the ships under the American flag would be busy and plying If these shipping lines were organized in a great associa­ full speed ahead; but the fact is, notwithstanding we have tion like the railroad association, they would have been the ships, notwithstanding we have the skilled men and here; but they are small lines. They are not big lines. They officers and every facility for handling, we are only carrying are a multitude of small lines, unorganized. They have no about 30 per cent of our overseas commerce in American trust and combination such as the railroads have; so the bottoms. We ought at least to carry half of it. If we had fact that they did not appear before the committee would half ·of it, our ships would be making a living and showing not seem to me now to be an argument why they should not some profits; but we are only carrying, as I have said, 30 be given relief, when they have at last found out that there per cent of our .foreign trade in American-flag vessels. That is that possibility. situation would not be remedied if the shipping lines were Mr. FLETCHER. The point is that we could have de­ allowed to borrow money; that would not solve the problem. veloped these facts if there had been a presentation to the What is needed, I repeat, is patronage. We must build up committee of just exactly what the situation is. The ship­ in the United States a spilit and determination on the part ping interests are pretty well organized. They have various of our shippers to patronize American ships, and thus in­ associations, and those associations are looking after their crease the tonnage, export and import, in ·American ships. interests quite well. But let us see for a minute what we Mr. COPELAND. Mr. President---:.. have done for shipping in the United States. The PRESIDING OFFICER. Does the Senator from In the first place, the coast lines have an absolute mo­ Florida yield to the Senator from New York? nopoly of the coastwise trade. No foreign ship can do any Mr. FLETCHER. I yield to the Senator. business on our coasts. The American-flag vessels have an Mr. COPELAND. If our shipping lines, by reason of what absolute monopoly of the coastwise trade in the United we hope to be a transient condition, should go into bank­ States. ruptcy "and be closed up, we would not have any lines to run Mr. STEIWER. Mr. President, will the Senator yield at when we do have the business. that point? It seems to me, if the Senator will permit me to say it, Mr. FLETCHER. I will yield, but I must quit in a minute, that the argument he has used with reference to the needs because I want to finish these remarks and get through. of these lines is the reason why we should give them this These colloquies prolong the discussion. Every interrup­ temporary financing. We are not giving them permanent tion constitu·tes another speech. loans. Their ships are tied up. They have overhead even Mr. STEIWER ~ May I ask the Senator just one question? when they are tied up; and these companies are in such dis­ Mr. FLETCHER. I yield. tress that they have no funds from receipts, as the Senator Mr. STEIWER. Is it not true, in spite of the monopoly, has suggested, but they must borrow money in order to main­ that inasmuch as there is no control over rates there is a tain these ships to the time when they will have business. cutthroat competition in that trade, and that in spite of the Then we hope to educate the American people to use our monopoly every ship in it is being operated at a great loss ships. In England they say," Buy British and ship British." at this time? We ought to give that instruction to our people: "Buy Mr. FLETCHER. I should not say that absolutely. I American and ship American." · question that. As a matter of fact, there, perhaps, is com­ But here are these ships, many of them gelonging to small petition, and there ought to be. I hope the day never will lines, coastal lines or intercoastal lines. It is not the great, ·come when there will not be some competition. big ones alone that are in distress; and unless we give them Mr. GORE. This bill is not intended to remedy that sort this temporary assiStance to carry their immediate, transient of situation. financial needs, I do not see how they are going to live at Mr. FLETCHER. No; as the Senator from Oklahoma sug­ all. That is my frank opinion. gests, this bill does not attempt to regulate anything like I share with the Senator the opinion that we ought not to that. I think most of the lines are not· making large profits, give these shipping lines permanent loans, long-time loans, and perhaps they are losing money, but not all of them are. and under the terms of this bill we could not do that; but This measure does not contemplate taking care of every we can help them, with such security and collateral as they undertaking that needs money. It has to be limited in ex­ have, to get temporary financing, which they can not now tending the credit of the Government to the objects that will get from banking institutions. That, I assume, is the reason best serve the people and the public interests. why the Senator has presented this amendment. The coastwise trade has been well sustained generally in Mr. FLETCHER. I appreciate fully, and I believe it is the United States and has been almost uniformly prosper­ quite true, that many of the lines and our shipping interests ous for years and years; and we are quite proud of our generally are somewhat in distress; but I do not believe this coastwise shipping. We ought to be. The vessels engaged is going to be the way out. I do not believe they will be able in that trade have done ,splendidly throughout the years 1932 CON.GRESSIONAL RECORD-SENATE 1569 that are past. They constitute, I think, some 4,000,000 Mr. DILL. Mr. President-- tons of ships-a splendid fleet-and it is all right. I am The PRESIDING OFFICER. Does the Senator from simply referring to the fact that we have given them a Florida yield to the Senator from Washington? monopoly of the coastwise trade by way of showing they - Mr. FLETCHER. I yield to the Senator. bave not been neglected. Mr. DILL. I should like to have the Senator's view of the . Then, as to the other ships, we sold Liberty bonds to the theory of this bill, namely, is this bill to pr-otect the securities amount of $4,000,000,000 and invested that money in ships and give liquidity to the securities of the banks, or is it for and shipping and shipyards and that sort of thing in the the purpose of assisting the various industries covered by the United States beginning in 1916. We had to provide for an bill to get back on their feet? American merchant marine. I am in favor of that to-day Mr. FLETCHER. I think the purpose of the bill is to just as strongly as I ever was. I think we absolutely need loosen up these frozen assets, as we call them. There are it. No self-respecting ·country ought to be content to be banks which own securities which do not mature for some dependent upon foreign lines or ships for moving its com­ time to come. They can not convert those securities into merce overseas. We ought to have an adequate American cash. The object here is to enable such institutions as merchant marine, not only to carry our commerce but as a those owning these securities that are really good securities contribution toward the national defense in case of emer­ to go to this reconstruction corporation and put up those gency. I am in favor of that. We built these ships, and securities and receive money. what has been done with them? Mr. DILL. What about the banks that have securities We have mostly given them away. We have been ob­ based on tne shipping business? sessed with the idea of getting the Government out of the Mr. FLETCHER. They would be helped by the bill just business, and getting the ships into private ownership, and as the other banks are if they have those securities. have sacrificed them. We have practically given them away Mr. DILL. But they would not be permitted to borrow to the various shipowners and ship lines. That is the first new money on the basis of such securities? proposition. Then we have gone on, and we have provided Mr. FLETCHER. That is it. The ship lines themselves that the Government will loan at Government rates, 3 to 4 would not be authorized, without this amendment, to go per cent, 75 per cent of the cost of every ship built in an directly to the corporation itself. American yard. The owners need· to invest onlY 25 per cent Mr. DILL. What I can not understand is, what was the of that cost to. own and operate the ship. The Government determining factor between one industry and another in­ will finance it to the extent of 75 per cent of the cost of dustry ·as to this new capital? construction. What could be more liberal and generous Mr. FLETCHER. I think there is no distinction drawn than that? · there. If a bank holds any kind of security, whether it is Not only that, but we have gone on further, and we have shipping bonds or stock or whatever it may have, that se­ provided for these foreign-mail contracts, by which many curity could be appraised and valued by the corporation. of these lines are supported. I grant you that a good many Mr. DILL. I am talking about new loans. I want to of them could not live without these contracts; but they know what wa~ the line of demarcation on the new loans. have the contracts. We have been making appropriations 1 understand what the Senator says about the securities of some $18,000,000 a year for carrying the foreign mails already held; but what is the line of demarcation by which overseas, and the ships and companies have these favorable it is determined which industry shall be able to borrow contracts. That has been provided for by the Government; money to go forward, as the railroads are permitted to do, and I can not see but that we have done about enough for and others are not permitted to do? I have not been able to ships and ship lines and to encourage the building of an get clearly in mind the reason why the coinmittee excluded American merchant marine. I do not see where the limit is certain industries from the use of new money and allowed going to be. others to come in. Now it is proposed that we shall open a door whereby these Mr. FLETCHER. I do not· understand that the bill takes ship lines, for instance, that have had 75 per cent of the care of every needy industry in this country at all. It fs cost of their ships loaned by the Government at 4 per cent, not intended to do that. There is no idea of establishing and that have only a small equity-and, counting the depre­ here a corporation owned by the Government which will ciation, I doubt if this board would value that equity as of engage in the banking or any other kind of business. It is any consequence at all-shall be able to borrow more money an emergency drastic measure, if you please, intended to from the Government; for, practically, through this corpo­ relieve conditions brought about by · inability of holders or ration, they will be receiving a Government loan. It seems debtors~ to realize on nonliquid assets. to me, after we have given the ships away, and after we ·The idea is to supply a combination of private and public have given contracts as we ·have been giving them, if pri­ credit. · That is the law laid down by Hamilton. ·n is as old vate owners can· not handle that business, they ought to get as Aristotle, to establish a combination of public and private out of it and let the Government operate these ships. credit which will open up these resources and put this money I have stated all along that there was a question in my into circulation, thereby enabling business to proceed and mind whether we were not making a grave mistake in not the country to move along lines of development and liquidate continuing the ownership and operation of ships in foreign a lot of assets and resources which are now congested and trade by _the Government itself. ft would cost the country frozen. less, and I think we would have just as good service. I do It is not intended to establish a concern here to engage not know but that we have made a mistake by emphasizing in business for itself-in any private enterprise, in banking, • this policy of getting the Government out of the shipping or anything of that sort. business and turning the ships over to private enterprise. ~ Wit;tl reference to the railroads, to mention it again, there I am perfectly willing, and I should prefer, that private is a distinction between those loans and those proposed bY enterprise . should own and operate these ships; but the this amendment. Here is the statement, for instance, issued private owners ought to devote themselves to the business by the National City Bank in January, 1932, which tells us in such a way as to make it a success, and not come here something about the situation as to the railroads: year after year, asking the Government to do this and asking The railroad problem has ceased to be merely a railroad prob­ the Government to do that. They ought to go on and be lem and is a general economic and financial problem of the first magnitude. The savings of the American people are invested, able to run that business in a successful way themselves by directly and indirectly through their bank deposits and insur­ this time, with all the help and encouragement we have ance policies, to a greater extent in railway securities than in given them in the past. If they can not do it, if they are any other class except those of the United States Government. going to abandon these lines, as some Senators suggest they More than 70 per cent of all railroad bonds and notes are held by ban.IPng, insurance, and other institutions. Of the $10 1703,- may do, then the Government must conduct the service 000,000 total outstanding on December 31, 1930, life-insurance itself and take the whole responsibility. companies alone held approximately $3,000,000,000, or . 28 per 1570 CONGRESSIONAL RECORD-SENATE JANUARY 9 cent, as part of the assets protecting their 50,000,000 policy­ they passed on down the other side of the mountain, and holders; mutual savings banks, with 13,000,000 depositors, held $1,700,000,000; member banks of the Federal reserve system owned when they got to the plateau he was all right. • $987,000,000, according to their September 29, 1931, statement, This traveler, living in a section where the highest alti­ and the holdings of nonmember banks are estimated at -$300,- tude was only 350 feet, had not reflected that when he got 000,000; in addition to the above, the holdings of banks and up to 12,000 feet he would be in quite a different atmosphere. trust companies in a fiduciary capacity, fire .and casualty insur­ ance companies, universities, hospitals, religious and charitable When he became ill he did not realize what the trouble was. organizations are known to be well in excess of $1,500,000,000. The difficulty was that he was attempting to cross that In 1931 the prices of railroad bonds experienced a universal high barrier. decline, extending from a few points to 25 or 50 points in the Now we have reached the peak of difficulty and adversity case of the weaker issues, and the resulting depreciation in many cases wiped out surplus account and even impaired the capital in this country, and we have reached an altitude where our of institutional holders. The· railroad situation has now drifted business can not survive without some assistance, just as this to a point where the sacrifice of capital or of labor is no longer traveler could not survive without the oxygen. A little the chief issue, and the solvency of the entire economic structure oxygen soon restored his vitality, and he was in fine shape. is~~b. • In effect, we are by this measure applying a little oxygen I think that pretty clearly states the situation. to the situation in this country, which is in great diffi­ I would be per.fectly delighted to see the shipping inter­ culty. Undoubtedly the country is in an unhealthy state; ests placed upon a solid footing. I want to see these ships business is sick, conditions generally ailing, and we are at­ and ship lines built up and developed and able to render tempting to apply a remedy which will restore the life of the service which we ought to have rendered in our traffic business and stimulate conditions so that we can survive and trade. We have to have these ships. We are neces­ and go on. sarily importing a great many goods. Some people think Mr. President, I ask to have inserted in the RECORD an that our commerce has so fallen off that we are not bringing editorial written by Mr. Clarence Poe, published in the anything in. Anyone who will go into a store here in Progressive Farmer, of Atlanta, bearing on this situation. Washington will find plenty of commodities which have I also want to throw just a little brightness into the cor­ been imported from other countries. We have to export ner occupied by the farmer by having inserted in the REcoRD a lot of our products. We produce a surplus of many prod­ an editorial from the Florida Times-Union of January 6, ucts, and we must find markets for them abroad. 1932, entitled "Pity the Poor Florida Farmer." It is important to expand our trade, and we must have There being no objection, the matter referred to was the means of moving the products from other countries to ordered to be printed in the·RECORD, as follows: this country which we need, and taking our products to the (From the Progressive Farmer] markets of the world. To do that we must have ships. If We have come to the forks of the road in America. The Seventy- we afford assistance to our exporting agencies we will in­ second Congress will decide which way we are to go. We shall stabilize poverty. crease tonnage for new ships. Of course, it may be said Or else we shall stabilize prosperity. that there are plenty of ships owned by other countries It is for Congress to decicle. which would be available for that purpose. J3ut that is not As a writer in the Atlantic Monthly puts it: the point. We must have ships that we can depend upon, " The more economic theory I read the more confused I get. Why are so many millions in want? Because we have produced ships owned and operated by Americans, which will look so much. Why must they wear shabby clothes? Because we have out for American trade and American business. too much cotton, too much wool, too many mills, and too many If we depend on the foreigner to deliver our goods, he mill hands who want to make cloth. Why must millions live in slums--foul breeding places of disease and crime? Because we gives preference always to the goods of his own country, and have too much lumber, too much steel, too many carpenters, too the American shipper will take second place in the opera­ many plumbers. Why can't we transport surplus products to the tion of his lines. places where they are needed? Because we have too many freight cars, too many railroad workers, too many trucks, too many- It is therefore absolutely necessary that we shall have an " But this doesn't make sense. • • • There are only two adequate American merchant marine, especially engaged in cures for general overproduction: One is to reduce production and foreign trade. We have an adequate merchant marine on stabilize poverty, the other is to increase consumption and stabilize our coasts, but we need to build up especially this American prosperity." That is the issue before Congress--to decide whether we shall merchant marine for overseas trade. throw away a whole century's proud gains of science and invention We ought to be carrying more of that trade in American and discovery and education, scrap half our factories and mills, bottoms than we are carrying. We have the ships, and scrap half our freight cars and trucks and engines, throw half our workers into unemployment, all because society hasn't enough there is no reason why we should not do that except that intelligence to utilize the wealth-producing factors already discov­ we must go out and reach for and obtain this business. ered, already set up, all ready to work. It is an amazing situation, Tonnage is what we need, and more money is not going to an amazing suggestion. give that, I am afraid. I do not really think we are going to get accommodations under _this bill if the amendment is (From the Florida Times-Union, January 6, 1932] agreed to. PITY THE POOR FLORIDA FARMER Oftimes sympathy is demanded for those who till the soil and I would like to see every condition taken care of that soil their hands with soil and stains from gathering potatoes and the country needs, but it is impossible to do that when we poinsettias and periwinkles. At least there is popular tradition to are enacting l}ere a measure which has certain definite pur­ the effect that a farmer's lot is not any happier-or perhaps not it, it even as happy-as the traditional policeman. And then, again, poses fixed for and can not be loaded down and ex­ some one comes along and knocks over the straw man and pulls tended without destroying the success of the measure. the scarecrow's old hat off and talks right out about the Florida. · On one occasion a traveler was going from Buenos Aires farmer and his "plight" and troubles, if any. The Melbourne to Santiago by rail, over the Andes Mountains. He reached Times, for instance, published down in that lovely section that borders on the Indian River and grows everything pretty and use­ the top of the range and suddenly slumped in his seat and ful and tasty in abundance and over:tlowing, rattled off something threw his head back in a state of perfect and absolute indif­ like this the other day: ference. A friend across the aisle came to him and put his " Coming from the barnyard the farmer wearily set the heavy basket of eggs on the kitchen table. It had taken him almost an hand inside his collar and undertook to wake him up. He hour to get the stock fed and housed for the night, although he said, "Are you asleep?" The traveler said he heard the had only two cows, a horse, a pair of mules, 20 hogs, and a ~ock friend, but he did not pay any attention to him, because of a hundred or SQ hens. he had gotten to such a stage that he did not care " whether " The feed he had provided for the livestock had all been grown on his small farm, and on the bench by the porch door were school kept or not." So he said nothing. The friend, how- baskets of vegetables brought in for the family use. On top of ever, found that he was cold around his collar. He there­ the stove cooking now were potatoes, beans, okra, tomatoes-Ma fore rushed back to the next car and brought in a supply of had the chicken pie in the oven. oxygen, and came forward to apply the oxygen just as they "A big glass dish of chocolate custard caught the farmer's eyes and a boyish grin passed over his face a :fleeting moment. He were going over the top of the Andes, 12,000 feet above sea surely did like chocolate custard; smart trick of his to get that level. The traveler was shortly revived by the oxygen. Then dozen-box of 20-ounce chocolate bars for one crate of tomatoes. 1932 CONGRESSIONAL RECORD-SENATE tsn "The fa.rme!' quickly suppressed the grtn, however. Walking The PRESIDING OFFICER. The question is on agreeing heavily into the living room he k:icked otf his work shoes and put his feet into the sloppy looking but comfortahle slippers standing to the amendment offered by the senior Senator from Wash­ waiting for him beside the Morris chair. ington [Mr. JoNES] to the amendment reported by the com­ "Wearily he turned on the radio. From New York came the mittee. music of the greatest orchestras. He left the dial turned to that Mr. COUZENS. Mr. President, I suggest the absence of station when he joined the family at the supper table. "A banquet this might seem to most of us, but it was a rather a quorum. usual meal !or the family of six around the table. And they were The PRESIDING OFFICER. The clerk will call the roll. all in excellent health. They were all comfortably clad. There The Chief Clerk called the roll, and the following Sena­ was plenty of cordwood in the lot for any indoor warmth they tors answered to their names: would need in a Florida winter. They could listen to the greatest speakers, hear the finest music, keep up to date on every question Ashurst Cutting Johnson Robtnson, Ark. of the day, for in addition to their radio they had newspapers and Austin Dale Jones Robinson, Ind. magazines. Batley Davis Kean Sheppard Barbour Dickinson Kendrick Shortridge "At bedtime the farmer stood on his porch and took deep Barkley Dlll Keyes Smith breaths of the perfumed air of a Florida night. 'Gosh..' he said Bingham Fess King Smoot mournfully, 'it sure is hard for me to keep remembering that Black Fletcher La Follette Stelwer times are so dinged hard r " Blai11e Frazier Lewis Thomas, Idaho "Ain't it awful, Mabull" But it doesn't seem as though any­ Borah George Logan Thomas, Okla. thing could be done about it. Like the weather, we can cuss and Bratton Glass McGill Townsend discuss It. and the sun keeps shining and the rain comes down, Brookhart Glenn McKellar Trammell occasionally; and the strawberries grow and the hens break rec­ Bulkley Goldsborough McNary Tydings ords, although carefully leying eggs; and the electric wires steadily Billow Grnre Me~tl Vandenberg rt>ach out into the farm sect1QllS, followed closely by the agents Byrnes Hale Morrison Wagner for washing machines and curlers and toasters and wa.file irons, Capper Harris Moses Walcott Caraway Harrison Neely Walsh, Mass. etc. Good roads almost everywhere invite exercising the Ford, Carey Hastings Norbeck Walsh, Mont. after twilight; and there's a. movie theater practically every few Connally Hatfield Norris Waterman miles. Florida farmers have a terrible time--no doubt about it. Coolidge Hayden Nye Watson But they have only themselves to blame if they get the idea that Copeland Hebert Patterson Wheeler anyone in Maine or Alaska will weep for them; they must weep on Costigan Howell Pittman White their own shoulders, if insisting, and set their teeth and bear their Couzens Hull Reed burdens. The PRESIDING OFFICER. Eighty-seven Senators have Mr. GORE. Mr. President, I had hoped that the Senator answered to their names. A quorum is present. from Florida, in answer to the Senator from Washington, Mr. COUZENS. Mr. President, the quorum was called for would make the point a little clearer that this bill as re­ the purpose of voting upon an amendment proposed by the ported to the Senate is limited to financial institutions. The Senator from Washington [Mr. JONES]. He proposes to ex­ only exception to that rule is the railroads. tend to the ReconstrUction Finance Corporation the power As I understand, the railroads are included-not so much to lend money to finance temporarily ships and shipping on their own account as because their bonds are so largely lines engaged in the coastwise or foreign trade. held by savings banks and insurance companies.- Railroad I protest against the amendment unless we are going to bonds largely constitute the cornerstone, and I might say include all transportation companies. It seems to me we are the foundation. of those great institutions. If the railroad loading up the bill so it will be wholly unworkable. If this bonds should go to default, or those foundation stones should amendment should be adopted I would feel required, in the crumble away, it would jeopardize the entire fabric of the interest of my section ·of the United States, to offer an insurance companies and the savings banks. If they should amendment to provide for the lending of money to lake come down in a wreck it would involve the depositors, of shipping. The tonnage carried on the Great Lakes is of course, and the policyholders and would spread the wreck great importance, and those lines should be included if we and ruin which is already too extensive in this country. are going to extend the provisions of the bill to include I wish to save those depositors and those policyholders­ coastwise and foreign shipping, the little fellows who can not save themselves. I want to Mr. JONES. Mr. President-- rescue them from the flames and stop the spread of this The PRESIDING OFFICER. Does the Senator from devouring conflagration. Michigan yield to the Senator from Washington? Mr. JONES. Mr. President, just a word. The Senator Mr. COUZENS. I yield. from Florida [Mr. FLETCHER], it seems to me, has made au Mr. JONES. I understand that the amendment would argument which applies very well and favorably to the pend­ cover all lake shipping. It is coastwise shipping. ing amendment to the amendment, although it is not in­ Mr. COUZENS. But it does not come under the jurisdic­ tended as such. The Senator says the coastwise shipping tion of the Shipping Board. has a monopoly. So the railroads have a monopoly, The It my railroads have as great a monopoly as shipping, if not a Mr. JONES. would under the ·language of amend­ greater one. The railroad lines simply compete among ment. themselves, of course. The Senator from Michigan [Mr. Mr. COUZENS. Does the Senator interpret it to mean CouzENs] suggests to me that they have motor-truck com­ that shipping on the interior lakes should be construed as petition. That is very true, and that competition has been coastwise shipping? brought about very largely, too, by the public benefactions, Mr. JONES. Yes; I have always understood that to be we might say, to the railroads throughout the country. But the case. the railroads have just as much a monopoly, as far as that is Mr. COUZENS. I would not so interpret it, because the concerned, as the coastwise shipping has. Shipping Board has no jurisdiction over it in any event. As to the loans, the Senator says we have loaned lots of Mr. JONES. I think it has with reference to rates. money to the ships and toward the building of ships. That Mr. COUZENS. I think not. is also true, and in my judgment this amendment would Mr. McKEI..J...A.Rt: Mr. President, if it is extended to the help us to protect those loans. If those shipping companies Great Lakes shipping, why not extend it to include river .• fail, the loans will be gone, and the National Government shipping? Boat lines on the rivers are in a very serious will get nothing out of them. That is true, of course, in condition, too. that particular instance. But, as the Senator from New Mr. COUZENS. That emphasizes the point I am trying York [Mr. CoPELAND] stated, much of our shipping, in fact, to impress upon the Senate. If we are going to load up the the great majority of our shipping, is owned in smaller bill with all sorts of transportation facilities, not only should companies in the coastwise trade, four or five million tons the Great Lakes and river shipping be included but we in that trade, the great mass of the A.nierican tonnage, and should provide that the pipe-line companies may be per­ that shipping, of course, is il}. as bad a condition as our mitted to get money from the corporation. I should feel railroads are, if not worse. required to propose an amendment to include the lending LXXV--100 1572 CONGRESSIONAL RECORD-SEN·ATE JANUARY 9 of money to aviation companies whO are engaged in the with as much doubt as I face a vote on the final passage of transportation of mail and passengers. I should feel re- this bill. quired to introduce an amendment to include the motor- Mr. President, to me this is indefensible legislation except truck companies engaged in the handling of freight by motor on the theory that we are trying to avert a calamity in the truck, and also to include the passenger bus companies. In banking and in the business world . . The idea of taking other words, if we are going to add to the bill various kinds $2,000,000,000 of the people's money and using it to under­ of transportation facilities, then we must include them all write certain industries and certain banks with certain kinds and not play any favorites. of securities which prudent bankers and wise investors will The Senator from Washington has made plain that the not buy, while all the remainder must shift for themselves reason why he proposed his amendment is because the rail- in indefensible. That $2,000,000,000 must come from the roads are included in the bill. I want to say that so far as pockets of the people in the end. I say it is indefensible I am concerned, as one member of the Banking and Cur- except on the theory that it is necessary to avert a calamity rency Committee, the railroads would not have been in- in the business of the country. eluded except because of the fact that their securities over Mr. FLETCHER. Mr. President, might I interrupt the a period of many, many years have been made eligible for Senator for just a moment? savings banks and life-insurance companies who hold• the Mr.- DILL. I yield. savings of the people of the United States. It is i:)ot for the Mr. FLETCHER. I desire to call his attention to one pro- primary interest of the railroads. That is not the reason vision of the bill-I meant to refer to it when we were dis­ for including the l'ailroads. The real purpose, I think it cussing the amendment previously-that will help shipping will be generally conceded, is to protect the savings deposits if it is made operative, and that is section 5 (a), which pro­ in the savings banks and the funds in the hands of the life- vides for increasing facilities for transporting our products insurance companies invested in railroad bonds. abroad. That, of course, if adopted, will help shipping. Therefore I hope the amendment of the Senator from Mr. DILL. I agree with the Senator, but why draw the Washington will not be agreed to; otherwise we ·shall have line in that very indefinite way? Why not give the Finance to consider every other kind of transportation facility. Corporation the power to determine whether or not a bor- Mr. DILL. Mr. President, I do not wish to consume rower will have sufficient security to justify a loan? God the time of the Senate. unduly, but I do want to say a knows we are not proposing to limit this corporation in its few words, especially in the light of the statement of the powers; it is not a case of throwing restrictions around it. ·Senator from Michigan [Mr. CouzENs]. The success or failure, the danger, in fact, of this bill depends The steamship business of the country is the terminal bus- ·almost entirely on the kind of men who may be chosen to iness for a large amount of the traffic on the railroads by administer it when it becomes law. I can foresee how by a ·which our foreign markets are reached. It is not to be ·com- reckless issuance of debentures they may destroy what basic ·pared with the bus business or the aviation business or any .business there now is in this land by placing upon the backs other minor transportation business. of the American people the burden eventually of paying for As I have listened to the discussion of Senators, I have these bonds. found myself unable to understand the theory-on which the I want to say further that our experience as a Congress bill was framed. The bill provides that the corporation may _with the present President in the. selection of men to make liquid the assets of the banks, 1·egardless of the nature administer legislationJs not such as .to. give us too great con­ of those securities, if in its judgment they should be made fidence that he will select men who will administer this pro­ liquid. But the -moment it comes to the lending of new posed legislation wisely and carefully as it.must be admin­ money,. .the bill lays down certain restrictions. It picks out .istered. When we passed the Farm Board bill we knew that certain industries and favors them by saying that the indus- the success or failure of that bill depended upon the men tries which the members of the committee have selected may who . would be- chosen to administer it, and certainly our borrow money for new business. experience with the Farm Board and the_way it has handled The bill ought to be one thing or the other. If this is a the money turned over to it gives us but little reason to hope bill to save the banks and insurance companies-and I agree that if we turn over to the Finance Corporation $500,000,000, there is great need for such legislation-well and good. If with the right to expend a total of two billions eventually of it is to be a bill for the purpose of revising industry, I want the people's money, the law will be well administered. Yet, to know the. line of demarcation whereby we select one kind on the other hand, to defeat the bill, knowing that the Presi­ of business .and propose to take the people's money, collected dent will not sign other legislation such as some of us may from those engaged in every kind of business, to promote . desire, places us at the other horn of the dilemma. If busi­ that particular business which the committee has selected. ness crashes come because of the lack of support for bank­ Certainly the shipping business is just as much a legitimate ing institutions and the great industries of the country, we ·transportation business as is the railroad business. I think must share the responsibility for that too. I therefore con­ it might be said to be of almost equal necessity in the de- sider it a most difficult proposition to decide how to vote on livery of products, because if foreign commerce can not be the bill. delivered in American ships we are tremendously handi- I repeat that there has been nothing said by ·those who capped. have presented the measure here, there is no principle writ- This bill is a peculiar combination. It grants banks the ten in it, that separates the favored industries from those right to liquefy their securities on any kind of an industry not to be favored in the granting of new capital to be used but draws an arbitrary line as against certain industries under this proposed act. If we are to use new capital to which the committee has excluded. When we ask them why help the railroads after the Interstate Commerce Commis­ they simply .say, "These should not be included." It is said sion has approved a loan, I have yet heard no reason pre­ by the committee, "If we include that one, we must include sented why new capital might not be given to help the steam­ something else." I agree with that statement. My point is ship lines when the Shipping Board has approved their that there has not been any yardstick set up here whereby securities. It seems to me that Senators ought to consider it can be shown that the industries which have been selected the whole question of how far we are to go in offering help • for new funds are justified in being placed in a favored to industries by new loans and what we are doing when class, and the other industries shut out. I have listened in we are selecting one industry or one serie~ of industries and vain and I have asked questions in vain to find the meas- saying, "this industry we will help by our loans; but that uring stick by which certain industries are placed in the industry must struggle for itself:" although the money which class that can get new money to be revived and by which will be used to help one set of industries is to be collected other industries are shut out and can not be considered for in the form of taxes and bonds from the very people who help by this corporation. are not being helped. Mr. President, let me say further that I have not, in recent It is a policy that is indefensible; it is unjust, it is unfair. years, and I doubt if at any time in the Senate, faced a vote · I can not understand how Senators will select one kind of 1932 ·coNGRESSIONAL RECORD-SENATE 1573 industry and refuse to let other industries have an equal the United states. The bill which is before us ts calculated opportunity before the corporation that is to be charged in SOPle measure to correct our economic situation so that with the administration of this proposed act. a portion of those people at least may find work because of Mr. BLACK. Mr. President, I desire to ask the Senator .better conditions than -those which now prevail. a question. Some time ago I was interested in examining one of the Mr. DILL. I yield. phases of the present situation to see to what extent it would Mr. BLACK. Irrespective of what industry it is, does the provide jobs and money in case Congress were to change its Senator think it is right if any private business can not policy in regard thereto. In order to be accurate, I sought carry itself to have that business carried on by the money to get the information from the best sources available. It of taxpayers who will draw no dividends from that business so happened, therefore, that I was naturally drawn to an act and who will draw no profits from its operation? called the food production act, which was pending before Mr. DILL. Mr. President, I said a moment ago that to the Senate in 1917, when the situation then existing was me the principle of this legislation is absolutely indefensible; diametrically opposite to that which now confronts the but the condition that confronts us is one of great gravity, Congress. At that time the problem was how to conserve and if by refusing to take some of the taxpayers' money to grain, how to conserve commodities and labor, railroad facil­ support industries in this country, especially banks, insur­ ities, and what not, in order that all these things might be ance companies, and savings banks, we pull down the house thrown upon the table and be available for the single pur­ of business, we will probably ·cause greater suffering and pose of winning the war. At that time a very eminent re~ bring about greater harm to our people than will be caused search man came before the Senate co!!'...mittee which was by the unjust burden of taxation that it iS necessary to considering that measure. That gentleman was Mr. Deets impose in order to raise the money. Therefore, it places us Pickett, the research secretary of the Bo~rd of Temperance, in a dilemma. The thing, however, to which I am objecting Prohibition, and Public Morals. Mr. Pickett wanted to con­ -now is that we select one class of industries and say that serve the coal of the country, and he went to the census they shall not even have the chance to appear before this reports of this Government to substantiate the statements corporation, that they shall not even have a chance to be which he then made. Mr. Pickett made this astounding heard by it as to whether or not their securities are such statement: that they ought to be considered. We give the corporation In the United States census reports for 1910, volume 8, page 363, the power to reject them; it is not compelled to loan money the consumption of coal by the brewing industry for the year ending June 30, 1909, was shown to be 2,990,357 tons, or three to railroads or to steamship companies, but we say to the and a half times as much as the packers, six times as much as railroads, "You can go and present your case, and, if the the printers and publishers, nine times as much as the manufac­ ·board approves, you may have money to use"; but, without turers of boots and shoes, and twenty-five times as much as the this amendment, we say to the steamship companies, "You manufacturers of men's clothing. ·can not even be heard, no matter how good your case may Senators, ·we all know that there is wide distress to-day be." I repeat, it is not fair; it is not decent legislation to in the coal fields of this country. Our problem is to find make such discrimination. employment for those people and not in its ultimate solution Mr. DILL subsequently said: Mr. President, in connection to find credit for them. The mining of 3,000,000 tons of with· the remarks I made a few moments ago, I ask unani­ coal, even if used in such a business as the brewing indus­ mous consent to have printed ln the RECORD a statement try, if it puts people to work and maintains their self­ regarding the pending bill published "in the Nation· of respect and gives them bread and butter, has more Chris­ January 6, "1932. · tianity and godliness in it than all the prohibition laws this There being no objection, the statement was ordered to be or any oth.er Congress will ever enact. printed in the REcoRn,-as follows: However, I do not stop merely at the figures having to do (From the Nation, January 6, 1932] with coal. I quote the President of the United States, who To suggest at this stage of the depression that Hoover has any was then the Food Administrator and who wrote a letter to plan for curing it woUld be like taking ~ pUlmotor to a funeral, the Senate committee about the grain which would be saved which woUld be unseemly. His main prescription since Congress convened has been for a Reconstruction Finance Corporation, if the brewing industry were put out of business. Said Mr. which turns out on examination to be a plan to lend Government Hoover in that letter: funds to the railroads. Nobody doubts that the railroads are in a The cessation of brewing would e1Iect a saving of grain of bad way, and why such pains were taken to disguise the actual approximately 3,150,000 bushels a moJ+th, or 37,800,000 bushels a purpose of this plan is just another of those Hoover mysteries. year. · The proposal is embodied in a Senate bill which abounds in a.iju­ sions to banks, building- and loan associations, insurance com­ And that, by a strange coincidence, is almost the exact pan1es, and agriculture, and which finally, in the most covert number of bushels which Congress gave away the other day manner, "also" includes railroads. The truth is that a billion dollars' worth of railroad securities will mature in the next three in the form of a food dole. years. The railroads must borrow money to meet them, and nat­ Here is an opportunity to find a market for 38,000,000 urally they are eager to get it at a low rate. Under this bill the bushels of grain which are now rotting in the Government Treasury would subscribe the $500,000,000 capital of the new cor­ poration, which on the basis of loans made by it would have power warehouseS, where Congress has provided the money for the to issue $1,500,000,000 in debentures. Because of the intangible Farm Board to store it and keep it. Mr. President, do you security on which they rest, debentures bear a high interest rate want the farmers to have a market for their grain? Well, in comparison with bonds. Why, if the Government desires to raise money to be lent to the railroads, does it not obtain that here is an opportunity simply by providing for the sale of money by issuing bonds? Senator GLAss has raised that question beer. That will give them a chance to sell the commodities and it has been raised stlll more pointedly by bankers. In this which they have. The authorities I have quoted are not wet instance Mr. Hoover has again reversed himself by deciding to authorities; they are no less than the President of this coun­ "put the Government into business" on a scale which eventually might result in Government possession of railroads, banks, and try and no less than the research secretary of the great insurance companies. That idea does not frighten me; but if we prohibition organization on yonder street which was inter­ are going to do it, why not do it in the most economical and ested in the abolition of the brewing business. businesslike way? At this point some one is certain to ask what became of the But here is another thing. It is said we are passing this national credit corporation-born at the famous Sunday night bill in order to help the railroads. It is desired to carry consultatiop. at the White House--whic;:h was to apply the magic them over this depression. Well, the way to help the rail­ of private initiative to the puzzle of frozen credits? The answer roads is not through credit; it is by giving them freight and is simple, but sad: About $400,000,000 has been subscribed to the pool, but only $10,000,000 of it has been lent! Aladdin fumbles or passengers and permitting them to earn their own way. In the lamp has lost its power, and with sorrow and resignation Mr. the last analysis that is the only way we can solve the rail­ Hoover will sign precisely the sort of credit measure that Senator road problem. Let us go to a further eminent witness to see GLAss sees fit to hand him. how the situation would affect the railroads. Mr. TYDINGS. Mr. President, estimates are to the ef­ Dr. Irving Fisher, of Yale University, a celebrated econ­ fect that about 7,000,000 people are out of employment in Oinist and president of the War ~e Prohibition League, 1574 ·coNGRESSIONAL RECORD-SENATE JANUARY "9 had his views aired before the Senate committee, having taX'es out of the Federal Treasury to provide work for them, written a letter to Senator Cummins stating them, and here when here is something that will not cost the Nation a dol­ is what Dr. Irving Fisher said: lar, which will put 300,000 hungry and jobless men to work Transportation required by the breweries: Raw materials, 3,000,· overnight and provide the necessaries of life for their fami­ 000,000 pounds of foodstuffs, equal to 1,500,000 tons; required lies. Yet with a solution at hand that will cost the Gov­ coal, 3,000,000 tons; product of 60,000,000 barrels, 9,000,000 tons; ernment nothing we sit here like ostriches, with our heads in total on teams and cars, 13,500,000 tons, all of which- the sand, and talk about credit corporations! When over­ Says Doctor Fisher- night we could employ coal miners to mine these 3,000,000 require hauling and over one-half of which require railroad trans­ tons of coal, we could put the railroad employees to work portation. in 200,000 freight cars and several hundred locomotives, This requires-- we could find a market for 38,000,000 bushels of the farmer's Mark these words- grain and 60,000,000 pounds of sugar; we sit here with this over 200,000 freight cars a year and uses several hundred loco­ solution at hand and talk about perpetuating our present motives annually. distress by extending additional credit! How much more sound, how much more toward a real Mr. BROOKHART. Mr. President, will the Senator solution, how much more toward putting the labor which is yield? now out of employment on our railroads back on the job The VICE PRESIDENT. Does the Senator from Mary­ if we could throw into the breach 200,000 rolling freight cars land yield to the Senator from Iowa? and several hundred locomotives. Mr. TYDINGS. Just a moment. I will yield, but I am But I have not finished. Says Doctor Fisher again before going to finish first. that hearing: Further than that, we have a deficit of $2,000,000,000 staring us in the face, and we have bills introduced in this The breweries annually use 64,000,000 pounds of sugar. Congress to appropriate $5,000,000 more to build new Fed­ Sixty-four millionpoundsof sugar! Andevenat this hour, eral prisons to take care of our prohibition violators. We as I speak, we can buy sugar for 95 cents a hundred pounds, have every jail in the United States crowded to capacity less than a cent a pound. Our great sugar industry is and eating up the substance of the taxpayers. We have a prostrate. Our trade is gone. Cuba, where we have many prohibition force of 3,000 persons on the Federal pay roll loans, is unable to meet her interest, perhaps, on occasion, who could no more enforce prohibition in a country that is certainly on some of the private loans. Here is an oppor­ thirty-three times the size of Great Britain than I could tunity to consume 60,000,000 pounds of sugar annually, and push back Niagara Falls with my right hand. without the cost of a single dollar to this Government. Is prohibition being enforced? Is it enforceable? Is Mr. BLACK. Mr. President, will the Senator yield? there one man in possession of his senses who does not Mr. TYDINGS. Yes; but I should like to finish my know that prohibition is no more enforced in this country remarks. than a law against drinking coffee could be enforced? Mr. BLACK. I want to ask just one question. Everywhere we go we see it violated; yet we stand here like Mr. TYDINGS. I yield. ninnies, afraid of the lash of the Anti-Saloon League, afraid Mr. BLACK. I have a recollection-! may be mistaken to assert ourselves as the keepers of the liberties and the about it-that the Senator placed in the RECORD a short money of the people, afraid to bring into the arena a solu­ time ago some statistics with reference to the amount of tion which more than any other single measure, I submit, liquor and beer which is being sold in the country now. would cure the difficulties under which we are at this Mr. TYDINGS. I did. moment laboring. Mr. BLACK. As I recall, statistics were put in by some If any of you think prohibition can be enforced, mark one, and the statement was made that there is more liquor these figures, not from Chicago, not from New York City, and beer being sold now in the country than before. not from any of the great metropolitan areas, but right here Mr. TYDINGS. I think more liquor is being sold now, in Washington, where you, the Members of the Senate and but less beer. the Members of the House and the President of the United Mr. BLACK. Is sugar used in it? States, have complete and absolute jurisdiction over every­ Mr. TYDINGS. In liquor? thing that takes place. Mr. BLACK. Yes. What a sorry spectacle we have made of it! I want to Mr. TYDINGS. Yes. · I am directing my attention abso­ read a statement I have just received from the police show­ lutely to beer. I am leaving liquor out of all of these re­ ing the number of persons under 21 ,years of age who have marks; they pertain only to the brewing business, 4 per been arrested for drunkenness in the District of Columbia cent beer, of which a normal, healthy he-man could drink by years. his full share and do all his work without any appreciable In 1926, 340 persons under 21 in Washington, not in Chi­ cago. loss of mentality or spirituality. [Laughter.] 1927 ______420 Mr. BLACK. The question I had in mind was this: I do not desire to get into any controversy with the Senator, 1928------396 now or hereafter. I have not any idea of doing that; but 1929------1930 ______355368 if it is true that there is as much beer being sold in the 1931------388 country now as there was then, it is simply a question of Mr. HOWELL. Mr. President, will the Senator yield? where it shall be manufactured, as I see it. The VICE PRESIDENT. Does the Senator from Mary­ Mr. TYDINGS. I am coming to the sales part of it in land yield to the Senator from Nebraska? - just a minute. I am relying upon the very best informa­ Mr. TYDINGS. Just a moment. I will yield at the end, tion that anyone can obtain; and I hope I may be per­ but I want to finish first. mitted to lay this matter aside for a moment until I have For the 10 years preceding prohibition an average of less concluded my statistics. than 75 persons a year who were under 21 years of age Doctor Fisher goes on further to say-and, Senators, lend were arrested for drunkenness in this city, and now the me your ears on this statement-- average is over 350 a year of persons under 21 years of The breweries of the United States employ 65,000 men, but the age arrested here. total engaged in making, handling, and selling it all over the If Congress can not do any better in this city, which is country is 300,000 men. under its absolute control, are we going to be hypocrites We have 7,000,000 unemployed. They are in my office enough to point the finger of scorn at Chicago or New York every morning, as they are in yours. They are sending peti­ or Philadelphia or Boston or any other place? tions here to Congress. They come here on freight trains, Here is the place to make the demonstration of the and petition us to find work for them, and we get up and " noble experiment "; and, if it can not be -made here, it say, "We must find work for these people," and we take can not- be made elsewhere. 1932 CONGRESSIONAL RECORD-SENATE 1575 . Not only that, but Senators talk about enforcing the law. the case against the Senator out of the mouths of his own Here is a number of persons under 21 years of age arrested witnesses? for violations of the prohibition act-peddling gin, boot­ Mr. BROOKHART. Mr. President-- legging, commercializing it, manufacturing it. The VICE PRESIDENT. Does the Senator from Mary­ In 1926, 275 persons under 21 years of age were arrested land yield to the Senator from Iowa? · because of being engaged in the sale of alcoholic beverages. Mr. ,- TYDINGS. Yes; I yield. Mr. BROOKHART. How many bootleggers are there in 1929______327 the United states? ~~~~=====:======--:======--======~:~ Mr. TYDINGS. I know that every bootlegger in the 1930------333 United States, more or less, pays no income tax to the 1931------249 United States, and that if we could get the income taxes What is the use of talking about the law being enforced? from them we would have a mighty small deficit left. What is the use of holding up the hypocrisy of the Nation How . many stalks of corn are there in the Senator's when we, the mayor and city council of this city-Wash­ county in Iowa during a normal season? [Laughter.] ington, D. C.-can make no better showing ourselves? Mr. BROOKHART. The Senator has not answered my Every man knows that there is no prohibition; that there question yet. is not a city or town or village of 2,500 or more people, where Mr. TYDINGS. No; and the Senator has not answered any stranger in the world can not buy liquor within 24 hours mine. after he arrives. If there is such a town, name it now, and Mr. BROOKHART. I do not know how many stalks of let us put it to the test. corn are there. . There is silence, because there is no answer but silence. Mr. TYDINGS. For every stalk of com in the Senator's Mr. BROOKHART. Mr. Presidentr--- county, if what we see on every hand can be believed, Mr. TYDINGS. All right; where is the town? there must be at least three bootleggers. Let the Senator Mr. BROOKHART. There is silence because the Senator do his own multiplication. will not yield. Mr. BROOKHART. Then there must be about 19,000,- Mr. TYDINGS. Oh, yes, I will. Where is the town? Can 000,000 bootleggers in the United States! we be honest? Shall we look at the facts, or shall we still be Mr. TYDINGS. From the way liquor is being consumed, dominated by fanatics who, in their desire to accomplish a I would not be surprised if the Senator were not too so-called religious or social :;~.chievement, have lost all sense conservative. of proportion, are not swayed by facts, and have dragged the Mr. BROOKHART. Does the Senator propose by his Treasury and the morale of this Nation and the fine steps amendment-- we were making in the path of temperance back to a point Mr. TYDINGS. Does not the Senator want to find a of decades and decades ago? market for 38,000,000 bushels of his people's grain every · Yet we are here·with a $500,000,000 credit bill when every year? man knows that 300,000 men could be put to work overnight - Mr. BROOKHART. Yes; but I am afraid that if we if we would but legalize the sale of beer; that a tax of 25 should put all the bootleggers out of business it would cents a gallon upon its normal consumption would produce increase the unemployment list. $500,000,000 in revenue to wipe out our Federal deficit and Mr. TYDINGS. Let me say to the Senator that out in end this hypocrisy, this tax eating by prohibition. Yet we the city of Chicago there was a notorious character, whose come with more taxes from the Federal Treasury in the name was on the front pages of the papers of this country guise of a reconstruction bill We are going to tax the peo­ for years, and every person in the country knew what he ple still more to build things that we may not need in order was doing. Yet he could not be convicted, and the only to take care of the unemployed, when we could take care of way he was ever convicted of violating the prohibition laws more of them without the expenditure of a single dollar, but was to send him to jail for not paying his income tax. simply by the assertion of a little courage and a little back­ Mr. BROOKHART. We got him, though. bone and a little real, honest-to-goodness common sense. Mr. TYDINGS. That is the kind of enforcement there is. Who challenges·a figure that I have mentioned here? Who In the city of Detroit, where there are 175 men in the says one of them is not correct? Who says there is any mis- border patrol, all of them were discharged in a single year statement in any of the things I have said? · for graft, and new forces rehired, and half of them dis­ Mr. HOWELL. Mr. President-- charged before the year had ended. The VICE PRESIDENT. Does the Senator from Mary­ Mr. BROOKHART. Those men who were discharged for land yield to the Senator from Nebraska? graft, paid on bribes offered by the people for whom the Mr. TYDINGS. Yes; I yield now. Senator is speaking. Mr. HOWELL. If I understand the Senator ariglit, prior Mr. TYDINGS. Those arguments, with all due respect, to prohibition there were 75 minors arrested in the District are nothing more than drawing room or smoking room con­ of Columbia annually for drunkenness, and now there are versation. The Senator knows, if he knows anything, that something like 350. prohibition is no more in ·existence in this country than the . Mr. TYDINGS. So the police say-72, to be exact. use of the Scandinavian language is in existence in Italy. Mr. HOWELL. The Senator will recall that prior to the [Laughter.] date of which he speaks there was a law here in the District Mr. LEWIS. Mr. President, will the Senator yield? of Columbia which made it an offense to give a minor liquor, Mr. TYDINGS. I yield to the Senator from Tilinois. and that that law was repealed, and that recently I have been Mr. LEWIS. I desire to say to the distinguished Senator endeavoring to have a bill passed here that would make it an from Maryland that the situation he depicts as to Mr. offense to give or supply a minor with liquor. The dis­ Capone was one that was allowed by the Federal Govern­ tinguished Senator from Maryland was one of those who ment, and not by the city of Chicago. . have prevented the passage of that bill; and now he criticizes Mr. TYDINGS. I appreciate that, and thank the Senator the condition which exists here in the District of Columbia. for his contribution to the cause. I do not want to review Mr. TYDINGS. Everyone, of course, is entitled to his opin­ lots of things I have said before, and which are already too ion, but what I am trying to do is to offer facts-not the well known, any way, to bear repetition. facts of the Senator from Maryland, who might be called What became of the promise to empty the jails? If there a "wet" without religious. background and without morals are no bootleggers, why are the jails full of men who have and without idealism, but the facts of the " drys," with been convicted of violation of the prohibition laws? Why whom the Senator from Nebraska sits -and discusses the is every cell in every Federal penitentiary, in every State welfare of the country, the agencies upon which he relies penitentiary, in every city and county jail, filled to over­ to fortify himself with the facts he states upon the :floor of flowing, and a bill in the Congress to appropriate $5,500,000 the Senate. What better proof could there be than to prove for new Federal prisons, i! we do not need them, and when 1576 ·coNGRESSIONAL. RECORD--SENATE JANUARY 9 the ·Attorney General says that half of those prisoners are of sugar which now has no market, to use up 38,000,000 bush­ there for violation of the Volstead Act? What better proof els of wheat which now is a glut upon the markets of the does anyone want than that to show that the law is being world . . thwarted from east to west, and from north to south? - According to the census of 1916, I think it was, 1,970,- I know election time will come, and of course it is best if­ 000,000 gallons of beer were consumed by the people of this we do not have to vote on this question, it is best if we do country in that year. A tax of 25 cents a gallon on that not have to take sides upon the· question, because if we can beer would · produce $500,000,000 a year. Nobody is against keep our position ·concealed from the people, we may be that -tax. Everybody is for it. There is no opposition to it. entitled to misrepresent them six more years in this body, But instead of that we would rather go and get these busi­ although this is a place where we should discuss legislative nesses which are struggling to survive through this panic questions, and if prohibition is not one in its present condi­ and choke them with more taxation, even when they have tion, I never saw one. not the ability in many cases to pay. We are supposed to say nothing about it in party plat­ . Men may smile; men may say, " That is wet talk "; but forms, and most men who will be candidates this year are IS it not the truth? Who says it is not the truth? praying to God that they may get by without having to Father 'cox came from Pittsburgh the other day with disclose their real position to the people they hope to repre­ an army of 12,000 unemployed. I do not know how many sent. Why? Because over on yonder hill good but-mis­ more started, but it is estimated that that many arrived. guided men say, "We will attend to your case at the polls. It just so happened that that army was lined up out here We will overthrow you if you dare to waver. When we in front of the Capitol at 11 o'clock, when an organization say ' Forward, march,' you guys had better goosestep." known as the Crusaders, led by a very estimable gentleman Think of it! We stand here and pull our hair and talk named Mr. Clark, from Cleveland, presented, in a very re­ about 7,000,000 unemployed, and about relief out of the spectful manner, a petition to Congress asking for a modi­ Federal Treasury to take care of it, when here in our own fication of the Volstead Act. The movie and sound pictures hands is the opportunity to start 300,000 men to earning an were in operation. Mr. Clark made a few remarks, and a honest and a respectable living in 24 hours by the -mere Senator-not myself, but the one to whom his remarks were legalization _of beer alone and raise, from a source to which· addressed-:-replied. · The crowd heard it, and there was a there is no objection, half a billion dollars in revenue as well. deafening cheer from every one of them, because there was 1 Do we do the obvious thing? No. I venture to say that a proper plan in sight; but the mountains of Congress had if Bishop Cannon and Dr. Clarence True Wilson and the shut out the sun. other satellites who are working on this problem with him Hypocrisy! You all know that liquor is sold on the boats were to take a boat and say they were going to the North which fly the American flag. Are they confiscated? Of Pole for 10 years we could put this beer bill through in 24 course not. · But if I take a pint of gin from here to Balti­ hours after they had taken the boat. more in my automobile, I am liable to lose my machine. I would not blame the people for marching on the Capi­ Talk about equality, talk about a government that is fair tol. What have all the recent elections shown? A wet and right to everybody. Democrat was elected in New Hampshire the other day, a If a carload of liquor is sent here to the Pennsylvania Sta­ man who had the courage to go before his people and say, tion, and prohibition agents discover it, they may confiscate "If you elect me, I will vote to repeal the eighteenth amend­ the liquor and do with it what they will, but does anybody ment." Was he defeated? He was not. confiscate the freight car? One was elected in New Jersey to succeed my good friend The whole thing is a burden on the poor man. You are Mr. Ackerman, who has left this life. What did that can­ driving him to cesspools of crime, into unspeakable speak­ didate say? He said, " If you elect me, I will vote to repeal easies in the big cities. They are the rallying points at this the eighteenth amendment." Was he elected? He was. time for the unemployed, and the stuff they get in them is One was elected in Michigan, in a Republican stronghold. not fit to drink. What did he say? He said " If you elect me, I will vote to Deaths from alcoholism are on "the increase. Bribery is repeal the eighteenth amendment." Was he elected? ·Not­ the password of the Prohibition Enforcement Service. The withstanding the fact that he was a Democrat and a wet, first seven years, out of a force of 3,000 men, 872 were dis­ he was. charged ·for· discovered corruption. Yet we sit here and · What more evidence does anyone want? Do the people throw·away the taxpayers' money, and we might just as well have to come here with shotguns and tear bombs to compel throw it into the Potomac River. the Congress to give them a relief which it could give them You are financing crime, you ·are financing corruption,­ in 24 hours without hurting any business or anybody in the and you are sowing ·the dragon's teeth of revolution more country? · with the continuance of this policy of prohibition than all · No; we are going to give them the dole instead, not the the other measures you have in this or any other Congress. dole they get on the first day of every month signed by How can we expect the unemployed to revere a Government Mr. Mellon, but the work dole. ·we are going to make work which sits supinely by incapable of action, when they know, for them, whether we need the work or not, and give it to and we know, that at least 4 or 5 per cent of them could be them under the guise of-a brick wall, or structural-iron work, put to work in 24 hours if we had the intestinal fortitude to or Vermont marble, or Indiana limestone. That is what we do the job that is ahead of us. are doing. If any of us think that is not a dole, we are only Is it more godly to let men walk through the streets liv­ deceiving ourselves. We might as well to all intents and ing on charity and perhaps driving them into crime, or to purposes be for the thing honestly and frankly and openly. let them walk home with something in their hands besides a I du not blame my friend the Senator from Iowa [Mr. handkerchief full of tears to take care of their loved ones at BROOKHART] for getting up here and saying, "Why do you home? If Christianity means enforced starvation, enforced not give agriculture a dole? Why do you not give us some unemployment, in order that we may supposedly enforce a credit? Why do you not give us some help? Why confine law which never has been enforced and never will be en­ it to these banks and railroads?" I can understand how forced, then I think our good Lord died in vain upon the he would naturally say that, and I do not like him any the cross. It strikes me that godliness is on the other side. less for being honest enough to say it, whether I agree with Give a man self-reliance, give him self-respect, teach him his philosophy or whether I do not agree with it. temperance, give him a job. Do not keep him out of work, We have spent four or five days here debating a credit because a man who has long been out of work, whatever his bill which only very remotely and indirectly will put a single moral precepts may be, sooner or later is apt to fall into the soul back to work, when we have within our hands the abil7 pathway of bad conduct and crime. · ity to put 300,000 men to work within 24 hours from this So I simply say in passing that we may debate these credit good minute; to start 200,000 freight cars and several hun­ bills without diminishing a single bit the deficit in the dred locomotives over the rails, to consume 64,000,000 pounds Treasury; we _may help the railroads by stabilizing their 1932 CONGRESSIONAL RECORD-SENATE 1577 bonds without providing in any way any new freight; we of the. Official Reporter, he will be constrained to reconsider may have the work dole in the guise of public construction his :figures. at the expense of all the taxpayers, which is nothing more Mr. BROOKHART. All right; I will cut it down right than a national community fund parceled out to the States now. We produce 4,500,000 bushels of com in my county. and cities; or we may let the people of the country have the It takes about 100 stalks to produce a bushel of com. So liberties which God Almighty gave them, we may give them there are about 450,000,000 stalks of corn in my county. the riQ"ht to work out their own salvation within the limits According to the facts, then-this "facts" stuff that the and the scope of decency and self -reliance, and wind up Senator from Maryland puts out-we have about 1,350,- this hypocrisy which has been wound up in every other 000,000 bootleggers in the United States. He wants to put country under God's sun except ours, Finland being the them all out of a job and put them on the unemployment latest to overthrow the sham and pretense and graft, the list by employing 300,000 other men to sell beer. women there voting more than two to one with the men That is a sample of the booze logic that comes in all these to put it out of existence. We can wait now a year or two arguments. Talk about intellectual legerdemain. Why, until public sentiment, as it will, shall become more pro­ intellectual prostitution would not even describe these nounced and then all of a sudden we will realize that what arguments. we might have done long ago when it would have done some The Senator mentioned the city of Washington. My first good we may now do without the loss of our political prestige. visit to the city of Washington was in 1896. I remember The VICE PRESIDENT. The question is on agreeing to very distinctly there was an open bar in the House restau­ the amendment of the Senator from Washington [Mr. rant at that time. The Senate had closed its bar before JoNEsJ to the amendment of the committee. that time. Mr. President, I saw more drunken Congressmen Mr. JONES and Mr. COUZENS. Let us have the yeas and every day I was in Washington during that week's visit than nays. I have seen drunken people in the city of Washington during Mr. WATSON. Mr. President,_ I make the point of no the last nine years. That is the fact. I saw that with my quorum. own eyes. The VICE PRESIDENT. The clerk will call the roll. I say to Senators that prohibition has succeeded, and it is The Chief Clerk called the roll, and the following Sena­ the ignoring of facts that permit these extravagant argu­ tors answered to their names: ments in the United States Senate. If we take the men who Ashurst Couzens Johnson Robinson, Ind. study the facts, who follow the facts, and who write upon Austin CUtting Jones Sheppard the facts it will be found that it has succeeded even in Bailey Dale Kean Shortridge Barbour Davis Kendrick Stnith Baltimore and even in New York City. If there were some Barkley Dill Keyes Smoot State officers over there who would obey their oath of office Bingham Fess La. Follette Stetwer and support the Constitution of the United states, prohi­ Black Fletcher Lewis Thomas, Idaho Blaine Frazier Logan Thomas, Okla. bition would be still better enforced. Borah ·George McGill Townsend Oh, the Senator says there is no opposition to a tax on Bratton Glass McKellar Trammell beer. That is the secret of a great part of this prohibition Brookhart Glenn McNary Tydings Bulkley Goldsborough Metcalf Vandenberg agitation-to get a tax on beer. Who is it_that wants it? Bulow Gore Morrison Wagner It is the same crowd who want the two thousand million Byrnes Hale Moses Walcott Capper Harris Neely Walsh, Mass. dollar relief for high finance in this country; the same crowd Caraway Hastings Norbeck Walsh, Mont. of financiers and tax dodgers. Carey Hatfield Norris Waterman In the United States Congress we are now levYing taxes on Connally Hayden Nye - Watson Coolidge Hebert Patterson Wheeler the right persons. Only about 14 per cent of our Federal Copeland Howell Reed White taxes. comes from the tariff; a small percentage comes from Costigan Hull Robinson, Ark. excise taxes; but the great body of the taxes comes from The VICE PRESIDENT. Eighty-three Senators have an­ the income taxes on corporations and on individuals. As swered to their names. A quorum is present. the income of the individual rises, a higher rate of taxation Mr. BROOKHART. Mr. President, we have just listened is imposed. I am sorry that is not true as to corporations to a remarkably frothy oratorical display. I think it was the as well. I think the corporation tax is the one unjust tax biggest foam that has been blown up in the Senate since I we have. have been here. I would like to scrape off some of the foam A little corporation ought not to pay the same rate of tax and get down to a few sober facts before we vote on the ·as that paid by big corporations; but, nevertheless, Mr. pending amendment. I am sorry the Senator from Mary­ President. our taxes are levied mainly upon the men who land [Mr. 'rYDmcsJ left the Chamber-ah. he has just reen­ in turn are levying taxes upon the whole people of the tered ·it! I wonder if he has cooled off any. [Laughter.] country through excess profit charges and through the eco­ I want to call the attention of the Senate to the facts of nomic organizations they have built up. That is where we this argument. The Senator kept repeating the word are levying our taxes; but the Senator from Maryland, in "facts" all the time, and then he blew foam. I asked him line with this crowd that he has denounced here to-day who the simple question, How many bootleggers there are in the want this bill, says we want to reduce these taxes and place United States? What was his answer? He said there were them upon the backs of the common people who will drink three bootleggers for every stalk of corn in Iowa. If that is beer. not right, I would like to have him correct it now. I say to you, Mr. President, there is opposition to such a Mr. TYDINGS. Mr. President, I think that estimate tax. Beer may be legalized, but you will never, with my would be more accurate as to the number of cornstalks in vote, put a tax upon it; you will not, with my vote, tax a Iowa than the Senator's estimate of the number of boot­ thing that permits of the evil that alcohol produces in this leggers there are in the United States. world. Alcohol is the greatest material enemy of the human Mr. BROOKHART. The Senator said there were three race. It has stood more in the way of advancement of bootleggers for every stalk of corn in Iowa. I have been civilization than has any other element in the world; it has figuring up the ·number of stalks of com. We produce about destroyed more homes; it has destroyed the lives of more 475,000,000 bushels of corn in Iowa when we have a good people. ordinary crop. The Senator from Maryland has stated that deaths from Mr. TYDINGS. Mr; President-- alcoholism have increased, but the statistics show exactly The VICE PRESIDENT. Does the Senator from Iowa the opposite; they have enormously decreased. yield to the Senator from Maryland? Mr. TYDINGS. Mr. President, will the Senator yield Mr. BROOKHART. Certainly. to me? Mr. TYDINGS. I am sure the Senator does not want to The VICE PRESIDENT. Does the Senator from Iowa make a misstatement. I referred only to the stalks of com yield to the Senator from Maryland? in the Senator's home county. If he will look at the record Mr. BROOKHART. Yes; I yield. . .. 1578 CONGRESSIONAL RECORD-SENATE JANUARY 9 Mr. TYDINGS. If the Senator will read the report of the . Mr. ROBINSON of Arkansas. I thank the Senator. Metropolitan Life Insurance Co., he will find that that Mr. BROOKHART. Therefore, Mr. President, as soon as company, taking the 19,000,000 . industrial policyholders it another occasion affords I will resume the discussion of the has in the United States, where there is prohibition, and prohibition question upon its merits and not upon imagi­ contrasting the records as to them with those of its three . nation. or five million industrial policyholders in Canada, where SEVERAL SENATORS. Vote! there is no prohibition, ascertained that there are forty The VICE PRESIDENT. The question is on the amend­ times as many deaths from alcoholism in the United States, ment proposed by the Senator from Washington [Mr. where there is prohibition, as there are in Canada. JoNES] to the amendment reported by the committee. Mr. BROOKHART. Conceding that to be true- Mr. .JONES. On that I ask for the yeas and nays. Mr. TYDINGS. Of course, I know that notwithstanding The yeas and nays were ordered, and the Chief Clerk pro­ the facts are based upon the actual experience of the Met­ ceeded to call the roll. ropolitan Life InsUrance Co., the very assertion to the con­ Mr. JONES wingly make any material false companies, building and loan associations, insurance com­ representation for the purpose of obtaining an advance or loan, panies, agricultural or livestock credit corporations, and or in assisting in obtaining such advance or loan under this sec­ other financial institutions; and to the extent that aid to tion shall, upon conviction thereof, be punished by a fine of not exceeding $1,000 or by imprisonmen~ not exceeding six months, such institutions is granted to that extent we make avail­ or both. able doles--Government doles--to such corporations and Mr. THOMAS of Oklahoma. Mr. President, I have before institutions. ine a copy of one of the local afternoon papers. I find on Mr. MORRISON. Mr. President-- one of its pages, in the section devoted to News of the The VICE PRESIDENT. Does the Senator from Okla­ Suburbs, the following screaming headline: homa yield to the Senator from North Carolina? Mr. THOMAS of Oklahoma. I yield. Senate ready to vote on jobless aid measure to-day. Mr. MORRISON. I desire to ask the Senator if he can The first paragraph in the news story is as follows: suggest any way in which the bill can be made more all­ The Senate to-day was ready to pass the administration's bill embracing and democratic in its benefits except by disre­ for a $2,000,000,000 governmental credit corporation, but not before garding financial institutions altogether, and dealing di­ voting on a $100,000,000 appropriation for direct relief of unem­ ployed. rectly with the individual citizen in the matter of credit. This relief proposal, sponsored by Senator SMITH, of South Caro­ Mr. THOMAS of Oklahoma. Mr. President, the question line, was attacked by administration leaders as invoking the suggests, as I interpret it, that the first consideration by "dole." which legislation should be judged should be the interests of " Invoking the ' dole.' ,, Mr. President, what is meant by the financial institutions of this country. I do not agree the term " dole " ? The dictionary says: with that premise. Dole-a gratuity dispensed in small quantities. Mr. MORRISON. Mr. President, has it not always been the policy of this Government to provide credit for the If the unemployed are to have even this alleged " dole " to assist them, then the 8,000,000 men who are to-day walking people of the country through financial aid to institutions, the roads and streets in search of work will have a chance banks, and kindred organizations, and does not this bill to get only the sum of $12 per person to keep them and their embrace the most insignificant financial institution in the families from disaster during the present winter. entire Republic? I ask the Senator whether he can suggest The bill to which the amendment is sought to be attached to the Senate any way it could be made more democratic proposes to make the sum of $2,000,000,000 available to the than it is, unless we disregard all intermediate agencies and railroads, insurance companies, and banks of the country. deal directly with the ib.dividual. While the bill appropriates outright the funds and provides Mr. THOMAS of Oklahoma. Mr. President, unfortunately the machinery for making loans to such corporations, the we have come to that point in this depression when we not pending amendment only authorizes an appropriation for only have millions but multiplied millions of our fellow making small loans to those in distress. If small loans to citizens who have no security. They have no land, they have citizens in distress can be justly called "doles," then what no home, they have no money, they have no credit, and to­ would be the proper term to designate the fabulous sums night they are cold and hungry. I can see only that class soon to be available to the million and billion dollar corpora­ of our· unfortunate citizenship. The interests which this tions of the country? bill is intended to aid are not those of men, women, and Mr. President, the definition of the term "dole" does not children who at this moment are cold and hungry. fit the sums to be dispensed under the provisions of the Mr. President, the administration has no bill pending pending bill. The term " raid " is more appropriate. proposing to aid the class to which I refer, and it is this ''Raid" is defined "to take possession of by legal force.'' class which I contend should have the first consideration at But technical definitions should not be indulged in here, for the hands of this Congress. mast serious questions and conditions confront us. Last Mr. MORRISON. Mr. President-- winter, only one year ago, we devoted hours to the issue of The VICE PRESIDENT. Does the Senator from Okla­ whether we would use the word " live stock " or " work homa yield further to the Senator from North Carolina? stock " in connection with relief legislation. Mr. THOMAS of Oklahoma. Gladly. Again, we devoted days and weeks to the issue of whether Mr. MORRISON. The theory of those of us who are we would provide loans to citizens for the purpose of supply­ advocating this bill is that it will produce better conditions ing food for themselves and families. everywhere, in every line of human endeavor in this Re­ It was contended then that to loan money for the purpose public, and thereby arrest unemployment, animate business of sustaining human life would be a Government dole, and everywhere to some extent--of course, it is not everywhere all such proposals were defeated. that it can be done-and furnish employment. But as to a In the short space of 12 months how changed is the public direct benefit to the distressed and suffering, there will be sentiment which dominates and controls the administra­ bills before the Congress dealing with that matter, and I am tion and even the Congress itself! During the first few quite sure that when we consider them I shall have a deeply days of this session a measure was rammed through pur­ sympathetic heart in their consideration. But this is a porting to aid and assist our former allied nations and our matter providing for the establishment of a sound credit former declared enemy, yet a measure believed by many to system in the country for those who are entitled to credit, have been in the interest of the American holders of Ger­ not the protection, in this emergency, by the Government, man public and private securities. The measure, sometimes but a banking system under which they can do business called the moratorium, served the purpose of depriving our and prevent the extension of this business prostration. · Treasury of the sum of over one-quarter of a billion dollars. When we reach the subject about which the Senator is If this act served its purpose, it added value to such private talking, with some appropriate bill before us, the matter to investments in Germany, and to the extent that it effectu­ which the Senator alludes will be dealt with. I recognize ated its purpose it constituted a dole-a government dole­ that it is a most serious problem; but I want to ask the Sen­ to such holders of the investments and securities mentioned. ator again, how can this bill, providing for improvement in The Federal land bank aid bill, next to follow the present the banking and credit system of the country, be made more bill on our calendar, if enacted, will be nothing more than a democratic than it is? dole-a Government dole-to the holders of the bonds is­ Mr. THOMAS of Oklahoma. Mr. President, there are two sued and outstanding against the several land banks gf the the6ries as to how co·nditioils may' be helped. There is one 1582 CONGRESSIONAL RECORD-SENATE JANUARY 9 opinion to the effect that if the big corporations, such as the property for the benefit of the citizen in distress. Yet we railroads, the banks, the insurance companies, and the cap­ are now at top speed in an effort to tax such property for tains of industry, can be made prosperous, then perchance a the benefit of the holders or owners of property. . few crumbs from their tables mey- fall to those below who Mr. President, the right to live is a divine right. The perform the labor, create the wealth-many of whom to­ right to secure the substance with which to sustain life can night are in want and distress. not be abridged by man-made law. If the Government can, Another theory, and the one to which I subscribe, is that in justice, take the property of one man to add to the prop­ if something can be done to provide work at remunerative erty of another, then I maintain that the Government can wages and thereby reinvest buying power in the great mass and should take from the surplus of those who possess such of our people, then through such a plan the big corporations surpluses sufficient property to at least sustain the life of and the financial giants are certain to get their rewards in those of our citizens who are at this moment in distress. the form of profits and dividends. The whole program before us contemplates Government Mr. MORRISON. Mr. President, the Senator talks about doles, or "raids," upon the Treasury for the benefit of pri­ big institutions. This bill embraces the most insignificant vate property, yet we have not reached the point where we ones, with legal responsibility and any substantial worth at are even considering aid for the benefit of human beings. all, and through them all the people of every class seek I condemn the system of the dole as being not only un­ credit under the immemorial business practices of the American but anti-American; but, costly as such system is, country. and deadly as its effects are upon the morale of our people, "Why is the bill only for the strong and the rich, when it I assert that unless some other plan for the relief of the is open, as the whole banking system of this Republic is, and unemployed is devised and placed in practical operation the under the amendment of the Senator from .Al·kansas [Mr .. system of the dole is inevitable. RoBINSON], the only banking or financial institution now Over one year ago the matter of aid to citizens was pre­ organized or hereafter organized which can seek its benefits sented but brushed aside with but scant consideration. is an agricultural society? Agricultural societies alone, it is When we convened one month .ago we found hundreds of expressly provided, may organize for the very purpose of citizens here knocking at our doors, asking for aid, and to seeking that credit. How can.the Senator sustain the argu­ date such appeals have fallen on unhearing ears. Only two ment that the provisions and blessings of the bill, such as days ago we heard another knocking at our doors-not by they are, go only to the strong and the rich, when they go hundreds but by multiplied thousands. to everybody in this Republic, as the whole banking system I exhibit to the Senate a local newspaper. Across the does? front, in. large-type words, appears this headline: Mr. THOMAS of Oklahoma. Mr. President, if the amend­ Fourteen thousand jobless at Capitol demand work. ment submitted by the Senator from South Carolina is Mr. President, if the number of the next delegation de­ agreed to, or if the amendment suggested by the Senator manding work increases in the same proportion as the last, from Arizona is agreed to, I shall give my support to this then we may expect and prepare for ten times 14,000 on legislation. But unless these two amendments, or at· least these Capitol Grounds before this winter is over. one of them may be agreed to, there is no theory upon which Mr. President, the pending amendment is the only item I can gain the consent of my judgment and my conscience to in any bill having a chance of passage which will help the cast my vote in favor of this proposal. citizens of the country. It is the only item which wlll help The bill, if it serves its purpose, will grant aid to railroads. the farming class and the only item which will afford any banks, savings banks, trust companies, building and loan assistance to the unemployed of the country. associations, insurance companies, agricultural or livestock Mr. Green, president of the American Federation of La­ credit corporations, and other financial institutions. That bor, states that we now have 8,000,000 unemployed. If that is the all-embracing form under which the Senator from is an accurate estimate, it must mean that 8,000,000 men North Carolina suggests that the unemployed are going to be to-night are without means of support. Many of these men benefited. and women, of course, not all, are man·ied. They have Mr. President, if this bill does what it is intended to do, 'it wives and husbands and children, and the average family will commit the Government to the policy of granting doles, consists of five. In order to est~-nate the number in want or more appropriately "raids," to these identical corpora­ we must increase the number mentioned by Mr. Green. Five tions to which I have just referred. times 8,000,000 would indicate that 40,000,000 men, women, "Federal relief for hungry industry is the keystone of and children are, on this cold, sleety, and snowy night, President Hoover's whole legislative program," .says an edi­ wretched, cold, and hungry. If any think the estimate sug­ torial in Time, a widely read publication. gested is too large, then they may reduce the number to What a change in sentiinent! A year ago the Congress such figures as they like. refused to loan Fedel'al funds to citizens with which to buy But the group described is not the only group in distress. food for themselves and families; refused to loan money to The agricultural class must not be overlooked. Farmers, purchase fuel to keep our citizens warm: and refused to en masse, constitute our largest single group. Thirty mil­ loan money to purchase feed for the livestock of our citi­ lion American citizens, men, women, and children reside zens. Now, in the first succeeding Congress, we are being and live upon the farms. Add to the army of the unemployed driven with "whip and spur," day and night, and urged to the agricultural group and you have one-half, at least, of hurry in the building of machinery whereby funds may be our total population-the farmers without buying power loaned to corporations, railways, banks, insurance companies, and the unemployed without means of support. The and other corporations with which to keep their securities amendment submitted by the Senator from South Carolina at par on the exchanges of the country. is the only item in any bill having a chance of passage, Mr. President, if Government doles are objectionable and which proposes even a shadow of relief for one-half the destructive of government and if it be a dole to loan money population of America. to a citizen for the purpose of purchasing food and fuel for Mr. COPELAND. Mr. President, I offer an amendment himself and family, then by what process of reasoning can to the pending bill, ;which I ask to have read from the desk, one justify a Government loan-a dole, a Government dole­ printed, and lie on the table. in favor of the corporations of .A:nrerica? The VICE PRESIDENT. The amendment to the amend­ Last winter I favored and urged that the Congress go to ment will be read. the aid of the citizens in distress and I have not changed my attitude. My convictions, expressed on numerous former The CHIEF CLERK. The Senator from New York moves to occasions, are only intensified by more recent developments amend, on page 23, after line 8, by inserting the following: he1·e. Within the foregoing limitations of this section, the corpora­ tion may also make loans to a municipality to aid in temporary Existing conditions force to the front the question of the financing, when, in the opinion of the board of directors of the status of private property. We have refused to tax such corporation, such municipality is unable to obtain funds UJ¥.ln 1932 CONGRESSIONAL RECORD-SENATE 1583 reasonable terms through banking .channels or from the general Mr. McNARY. No, Mr. President; there is no time speci­ public, and the character and value of the security offered are such as to furnish adequate assurance of its ability to repay fied for the final vote. It is simply a proposal to remain in Within the time fixed therefor and to meet its other obligations in continuous session until final disposition is made of the bill ~onnection therewith. and all amendments thereto, which does not require a The VICE PRESIDENT. The amendment to the amend­ quorum call. ment will be printed and lie on the table. Mr. WALSH of Montana. Mr. President, I did not clearly 'Mr. COPELAND. Mr. President, in connection with this understand the ·senator's request. Will he kindly repeat it? amendment, I ask that a telegram received from the mayor Mr. McNARY. I am asking that we may recess at not of New York, which led to the offering of the amendment, be later than 5.30 o'clock this afternoon until Monday at 12 read. Then I shall be glad to subside and say what I have o'clock, and that we shall agree to remain in continuous to say upon the amendment to the amendment next week. session until final disposition is made of the bill and all The VICE PRESIDENT. Without objection, the telegram amendments thereto. will be read. Mr. ASHURST. Mr. President, that does not require a The Chief Clerk read as follows: quorum. The VICE PRESIDENT. The rule provides that- NEW YoRK, January 8, 1932. Hon. ROYAL S. CoPELAND, No request by a Senator for unanimous consent for the taking United States Senate, Washington, D. C. of a final vote on a specified date upon the passage ·of a bill or MY DEAR SENATOR CoPELAND: Before the proposed Reconstruc­ joint resolution shall be submitted to the Senate for agreement tion Finance Corporation bill to provide the vast sum of $2,000,000,- thereto until, on a roll call ordered for the purpose by the 000 in public credit for the relief of banks and bankers is Presiding Officer, it shall be disclosed that a quorum of the Senate enacted attention should be called to the needs of the cities is present. throughout the country which are refused loans by the banks to carry on their affairs and to rescue their inhabitants from starva­ The Chair would hold that no quorum call is necessary tion. l;Ulder the rule. Is there objection to the request of the Almost every city, small and large, in the United States is now Senator from Oregon? The Chair hears none, and it is so ln a financial strait-jacket because of severe restrictions imposed by the banks on lending money for the operations of local gov­ ordered. ernments. The unanimous-consent agreement was reduced to writing, On the one hand, the national authorities are urging that the as follows: relief for the acute poverty and distress resulting from unem­ p!oyment must be provided by the localities themselves; that is, Ordered, by unanimous consent, That the Senate take a recess by cities, towns, and villages. On the other hand, the banks at not later than 5.30 o'clock p. m. to-day until 12 o'clock meridian have raised the interest charges on short-term loans to prohibi­ on Monday next, and that on that day the Senate remain in tive rates and are imposing almost impossible conditions, even continu<;>us session until the final disposition of the bill (S. 1) flatly refusing to do business with the authorities of their own to provide emergency financing facilities for banks and other communities. financial institutions, and for other purposes, and an amendments While billions have been loaned through these same banks to thereto. foreign lands, they are now professing inab111ty to meet im­ Mr. Mr. perative necessities right at home. COPELAND. President, is it the purpose of the If the cities of the United States are not good financial risks, Senator from Oregon to move a recess now? then it is plain that the banks in these cities are even poorer Mr. McNARY. It is my intention, if debate has been risks, because if local government is to be paralyzed then the concluded for to-day, to ask for a short executive session. banks might as well close their doors also. Therefore. confxonted with this attitude by the banks, the Mr. COPELAND. I have no desire to detain the Senate cities demand that they be put on at least as favorable a footing later this afternoon. I do want to submit some comments as the banks, large and small, that are now seeking relief through upon Mayor Walker's telegram, but I shall be glad to defer the $2,000,000,000 about to be furnished the Reconstruction Fi­ nance Corporation. them until Monday, in view of the Senator's desire to have Let a provision be placed 1n the bill authorizing this corpo­ an executive session. ration to lend money to the cities and municipal corporations EXECUTIVE SESSION of the country on acceptable security, such as bonds or notes, to relieve their acute needs; which are, to say the least, as im­ Mr. McNARY. I move that the Senate proceed to the portant as those of the bankers. consideration of executive business. The whole country has heard of the financial stringency suf­ fered by several of the most important cities, and the condition The motion wa.s agreed to; and the Senate proceeded to is widespread. the consideration of executive business. In New York City, with 800,000 unemployed, an attempt is being made to support many thousands of families that are en­ EXECUTIVE MESSAGES REFERRED tirely destitute. More than 100,000 families are in need of food and shelter and other necessities. The city and private charities The VICE PRESIDENT laid before the Senate several are doing all that is humanly possible to deal with this situation. messages. from the President of the United States submit~ and the city is having dl.fficulty in meeting the temporary financ­ ting nominations, which were referred. to the appropriate ing required to carry on this and other tasks. The city of New committees. York has never defaulted on a bond or a note; its credit is un­ impaired, and the rates on its securities the highest of any (For nominations this day received, see the end of Senate municipality in the world. proceedings.) For the city of New York, therefore, to witness the Congress REPORTS OF COMMITTEES about to extend a helping hand to the bankers while hundreds of thousands of its people face starvation for lack of means for The VICE PRESIDENT. Reports of committees are in relief is deplorable and inconceivable. order. . Surely the Congress 1s not going to consider the people less important than the banks or the requirements of the local gov­ Mr. McNARY, from the Committee on Post Offices and ernments less worthy than financial institutions. Post Roads, reported favorably sundry nominations of post~ An amendment to permit the proposed Reconstruction Finance masters, which were placed on the calendar. Corporation to lend to the cities will not only relieve acute dis­ tress but will tend to restore confidence in American public insti­ THE CALENDAR tutions and avert what threatens to become a nation-wide If calamity. The VICE PRESIDENT. there be no further reports of This message confirms my views as to the necessity for an committees, the calendar is in order. amendment to the bill, as expressed in my telephone conversa­ POSTMASTERS tion with you to-day. JAMES J. WALKER, The Chief Clerk proceeded to re~d the nominations of Mayor of the City of New York. sundry postmasters. Mr. McNARY. Mr. President, I ask unanimous consent Mr. McNARY. At the request of the Senator from New that the Senate recess at not later than 5.30 o'clock on this Hampshire [Mr. MosEs], who is necessarily absent, I ask day until 12 o'clock Monday, and that on that day the that the nominations of postmasters, with the exception of Senate remain in continuous session until final disposition No. 624, be considered and confirmed en bloc. is made of the pending bill and all amendments thereto. Mr. ROBlliSON of Indiana. Mr. President, that excep.­ The VICE PRESIDENT. · As stated, the unanimous-con­ tion was made at the request of my colleague, the senior sent request would seem to require the calling of a quorum. Senator from Indiana [Mr. WATSON]. However, I am au· 1584 CONGRESSIONAL RECORD-SENATE JANUARY 9 thorized by him to withdraw the request in order that No. Lieut. Frank C. Fake to be a lieutenant commander in the 624 may be confirmed. Navy from the 1st day of July, 1931. The VICE PRESIDENT. Is there objection? The Chair Lieut. (Junior Grade) Kenneth D. Ringle to be a lieuten­ hears none, and the nominations of postmasters upon the ant in the Navy from the 1st day of February, 1931: calendar are confirmed en bloc. Lieut. (Junior Grade)-William M. Haynsworth, jr., to be a THE ARMY lieutenant in the Navy from the 1st day of August, 1931. The Chief Clerk proceeded to read sundry nominations in The following-named lieutenants (junior grade) to be the Regular Army. lieutenants in the Navy from the 1st day of September, 1931: Mr. REED. I ask unanimous consent that the nomina .. Albin R. Sodergren. tions in the Regular Army be considered and confirmed en Robert A. MacKerracher. bloc. The following-named lieutenants (junior grade) to be The VICE PRESIDENT. Is there objection? ·The Chair lieutenants in the Navy from the 1st day of October, 1931: hears none, and the nominations in the Regular Army upon John E. Shomier, jr. the calendar are confirmed en bloc. That completes the Walter C. Holt. calendar. Joseph E. M. Wood. The Senate resumed legislative session. Lieut. (Junior Grade) Frank H. Newton, jr., to be a lieu­ tenant in the Navy from the 1st day of November, 1931. RECESS Lieut. (Junior Grade) Samuel P. Comly, jr., to be a lieuten­ Mr. McNARY. I move that the Senate carry out the ant in the Navy from the 6th day of November, 1931. unanimous-consent agreement at this time and take a recess The following-named lieutenants (junior grade) to be until 12 o'clock Monday. lieutenants in the Navy from the 1st day of December, 1931: The motion was agreed to; and Theodore Roosevelt, of New York, to be .Governor General from the 4th day of June, 1931: of the Philippine Islands. Enoch G. Brian. Ross U. Whiteside. MEMBER OF THE PuBLIC UTILITIES COMMISSION OF THE DISTRICT OF COLUMBIA George G. Herman. The following-named passed assistant surgeons to be sur­ Riley E. ElgEm, of the District of Columbia, to be a member geons in the Navy, with the rank of lieutenant commander, of the Public Utilities Commission of the District of Colum­ from the 30th day of June, 1931: bia for the remainder of the term expiring June 30, 1934, Alfred L. Gaither. James L. Manion. vice Harleigh H. Hartman, resigned. Emil J: Stelter. Guy. Fish. APPOINTMENTS AND PROMOTIONS IN THE NAVY James F. Terrell. Louis E. Fitzsimmons. The following-named surgeons to be medical inspectors in Jesse D." )ewell. John G. Smith. the Navy, with the rank of commander,- from the 1st day of Harvey W. Miller. Isaac B. Polak. September, 1931: Joseph F. Lankford. Camille M. Shaar. Carleton I. Wood. Joel T. Boone. Frank W. Quin. Frederick R. Hazelton. William W. Wickersham. Frederic L. Conklin. Francis E. Tierney. Wilbert W. Munsell. William H. Michael. Charles A. Costello. Leslie 0. Stone. The following-named paymasters to be pay inspectors in Forrest M. Harrison~ Benjamin H. Adams. the Navy, with the rank of commander, from the 6th day of Harold A. Noreen. Clifford G. Hines. June, 1929: Robert W. Thomas. John B. O'Neill. Omar D. Conger. Richard W. Hughes. James C. Kimball. James P. Helm. Harrison L. Wyatt. William H. Harrell. RobertS. Chew. , Alva A. Shadday. Clinton G. DeFoney, The following-named paymasters to be pay inspectors in Cyrus C. Brown. James G. Dickson. the Navy, with the rank of commander, from the 4th day of Henry D. Hubbard. DeWitt T. Hunter. June, 1931: Clarence Minnema, a citizen of Illinois, to be an assistant Oscar W. Lei del. Charles V. McCarty. surgeon in the Navy, with the rank of lieutenant (junior Charles C. Copp. Eaton C. Edwards. grade), from the 4th day of December, 1931. John J. Gaffney. John B. Ewald. The following-named passed assistant paymasters to be John A. Byrne. Samuel R. White, jr. paymasters in the NavY, with the rank of lieutenant com­ Richard S : Robertson. mander, from the 4th day of June, 1931: Civil Engineer Ralph D. Spalding to be a civil engineer in Harry A. Hooton. John B. Daniels. the Navy, with the rank of commander, from the 1st day of Charles W. Charlton. Arthur P.M. Shock. April, 1927. Palmer J. McCloskey. James M. Easter. Commander Claude B. Mayo to be a captain in the Navy Radio Electrician Delmar L. Tuft to be a chief radio elec­ from the 1st day of December, 1931. trician in the Navy, to rank with but after ensign, from the Lieut. Commander Eugene T. Oates to be a commander in 2d day of December, 1931. the Navy from the 4th day of June, 1931. The following-named lieutenants to be lieutenant com- CONFIRMATIONS manders in the Navy from the 4th day of June, 1931: Executive nominations confirmed by the Senate January 9 Elmer E. Duvall, jr. John Meyer. (legislative day of January 7), 1932 Lloyd E. Clifford. WilliamS. Holloway. Willis M. Percifield. Mallery K. Aiken. APPOINTME.NTS IN THE REGULAR ARMY The following-named lieutenants to be lieutenant com- Edgar Thomas Collins to be major general. manders in the Navy from the 30th day of June, 1931: Julian Robert Lindsey, Cavalry, to be brigadier generaL Hiram L. Irwin. Perry Lester Miles, Infantry, to be brigadier general. Rico Botta. Louis Meredith Nuttman, Infantry, to be brigadier general. Ralph H. Norris. Harry Burgess, Corps of Engineers, to be brigadier general. 1932 CONGRESSIONAL RECORD-SENATE 1585

Robert Swepston Abernethy, Coast Artillery Corps, to be INDIAlU brigadier general. . . . Grace K. Freeman, Amboy. Alfred Theodore Smith, Infantry, to be bngadier general. GUY J. ·shaughniss, Angola. Frederick William Coleman, Finance Department, to b~ Roscoe V. Dunn, Atlanta. Chief of Finance, with rank of major general. . J. Frank McDermond, jr., Attica. Oscar Westover, Air Corps, to be assistant to the Chl~ of Neil D. McCallum, Batesville. the Air Corps, with rank of brigadier general. Edward R. Siegel, Boonville. PosTMASTERS Arthur J. McLaughlin, Cedar Lake. CALIFORNIA Ralph E. Busse, Chesterton. James E. Reed, Columbus. Chester T. Steele, Arroyo Grande. Robert E. Black, Corydon. Harry W. Crider, Artesia. Frost R. Harden, Covington. Jessie A. Collins, Clearwater. Ivan W. Blase, Cynthiana. Chelso A. Maghetti, Davis. Harvey E. Mayall, Decker. John L. Olson, Decato. BurrS. Balser, Delphi. Knowles C. Weiss, Downey. John M. Sweeney, Dugger. Charles C. Jenkins, El Centro. Lester L. Wildman, Dupont. Lillian G. Brackett, Geyserville. William Teutemacher, Dyer. George E. Preston, Harbor City. John A. Thompson, Edinburg. William R. Harriman, Hondo. Arthur E. Dill, Fort Branch. Minnie E. Dewar, Hueneme. Raymond B. McConnell, Francisco. Clarence A. Acton, Inglewood. Carl W. Sims, Frankfort. Fred W. McCullah, Long Beach. Clyde W. Ward, Gas City. Grace D. Perkins, Los Nietos. Normal V. McClellan, Goodland. James M. Cremin, Marysville. Frank M. Martin, Gosport. Donald L. Burbeck, Mill Valley. Clarence W. Bertram, Haubstadt Flora Dahl, Mokelumne Hill. George 0. Davidson, Idaville. John L. Steward, Monterey. Leslie D. Clancy, Indianapolis. Jacob J. Shroy, Newman. Ernest M. Hunt, Kokomo. Sidney E. Burritt, Niland. Harry E. Nichols, Madison. Earl D. Cline, North Los Angeles. Logan Motsinger, Medora. Warren N. Garland, Oakdale. George H. Merritt, Michigantown. James· H. Pearce, Oilfields. Carlyle D. Barnes, Milford. Fadette T. Gossard, Olive View. Harry R. Manlove, Milton. John H. Canning, Oxnard. William H. Wright, Montezuma. Florence E. Buckner, Pacific Palisades. Philip E. Rowe, Mount Vernon. Edgar L. Etter, Palos Verdes Estates. Henry D. Long, New Harmony. Euell Y. Gray, Placerville. Charles E. Ballance, Oaktown. Mary K. Davis, San Carlos. Dwight M. Hayes, Odon. Josephine Zucca, Selby. Pearle H. Moulton, Parker. Alice c. Elmore, Sequoia National Park. Nellie G. Hallowell, Pendleton. Addie E. Waits, Solana Beach. Lloyd Burch, Petersburg. Meta C. stofen, Sonoma. Jacob C. McCarter, Pierceton. Myrtle E. Catterall, Sunland. Sol A. Tuttle, Pleasant Lake. Bess Morabe, ·sutter Creek. Alfred M. Johnson, Princeton. Nicholas Kltchak, Taft. James J. McCauley, Richmond. Edwin A. Reeves, Terra Bella. Ernest A. Bodey,-Rising Sun. Pierce P. Correll, Tujunga. Hilbert Bennett, Rockport. . Cinderella L. Phiney, Tustin. Frank B. Harding, Rockville. Mathilda Busch. Verdugo City. Iver C. Bain, Russellville. Hazel E. Avise, Walnut Creek. Sylvester H. Klueh, St. Mary-of-the-Woods. Edith M. Kennedy, Weimar. Travis E. Carter, Seymour. CONNECTICUT Alfred W. Hill, Shelburn. John W. Cook, Beacon Falls. Oris T. Kercheval, Sheridan. Leontine M. Root, East Berlin. Newton H. Brown, Star City. Sarah L. Ruic, Farmington. Charles L. Grishaw, Tipton. Prentice W. Chase, Jewett City. Orner R. Huff, Troy. W. Burton Allen, Litchfield. Clyde H. Peters, Vallonia. Joseph H. Derenthal, Madison. Gretchen H. Cole, Vevay. Ernest F. Brown, Manchester. Valance U. Slater, Warren. Courtland C. Potter, Mystic. Claude C. Darnell, Waynetown. Walter E. Brown, Naugatuck. James C. Harris, Windfall. Henry R. Carignan, North Grosvenor Dale. Harry J. Baker, Worthington. Casper K. Bailey, Norwich. LOUISIANA Fred R. Alford, Oakville. Effie 0. Broussard, Allemands. William C. Bushnell, Plantsville. Regina D. Melanson, Arnaudville. William P. Stone. Salisbury. Homer A. Toms, Bienville. Thomas B. McDonald, Sharon. Ella M. Perot, Campti. Nelson E. Welch, Somers. Robert B. Matthews, Castor. John P. McGrath, Southington. Jeannette Clarkson, Clarks. Frank B. Crocker, South Manchester, Rufus W. Echols, Converse. John V. Abbott, Watertown. Ruth W. Monroe, Elton. Adele P. Brush, West Cornwall. John G. Bourgeois, Goodhope. DELAWARE Theodore F. Seiler, Grayson. George W. Mullin, Marshallton. Elizabeth Crawford, Gretna. George H. Wright, Smyrna. Jesse M. Hutchinson, Kentwood. 1586- CONGRESSIONAL RECORD~HOUSE JANUARr 9_ Howard A. Hudson, Lake-Arthur. Renview L. Hull, Lebanon. Alvin C. Brunson, Mangham. Samuel A. Gruver, Madison. Frank Warren, MerryVille. George C. Kloss, Manasquan. James A. Gannon, Natchitoches. Winfield L. Smith, Mantua. John Aiton, Newllano. . - Elvord G. Chamberlin, Montclair. James M. Cook, Oakdale. . John S. Inman, New Egypt. John T. Boyett, Sarepta. George I. Harvey, Palmyra. Carey P. Duncan, Shreveport. Arthur H. Gilbert, Park Ridge. T!lomas L. Hardin, Sicily Island. RichardT. Wilson, Ridgewood. Edna H. White, Slagle. Remington E. Rose, Rutherford. Stellie F. Milstead, Sterlington. Mary F. Brophy, Skillman. - MASSACHUSETTS Elizabeth C. Brill, Stewartsville. Clarence E. Deane, Athol. Charles H. Wilson, Swedesboro. George R. Bruce, Ballard Vale. W. Burtis Havens, Toms River. Harold F. Peck, Belchertown. Jacob Feldm~n. Woodbine. Wilfred B. Littlefield, Brockton. WYOMING George W. Peterson, Chelm.Sford. Verne W. Mokler, Casper. Ralph C. Putnam, Clifton. · Wilson A. Clark, Clearmont. James R. Delaney, Dedham. William H. Davis, Douglas. John K. Parker, Duxbury. Arthur W. Crawford, Guernsey. Charles M. Rollins, East Boxford. Edward Bottomley, Kleenburn. Arthur L. Maguire,. East Walpole. Daniel C. Carson, Pinedale. Godefroy de Tonnancour, Fall .River. Hedwig C. Hurtt, Sundance. Joseph J. Tebo, Fisherville. William Russell, Winton. · James A. Fulton, Gilbertville. · Arthur F. Cahoon, Harwich. Chal'les E. Hamblin, Huntington. HOUSE OF REPRESENTATIVES Samuel L. Wildes, Montague. Louis H. Chase, Norfolk. SATURDAY, JANUARY 9, 1932 Dorothy T. Swift, North Falmouth. The House met at 11 o'clock a.m. George M. Campbell, Rutland ·Heights. The Chaplain, Rev. James Shera Montgomery, D. D .• Osgood L. Small, Sagamore. offered the following prayer: Ella M. Ovenden, West Boylston. Eugene B. Tobey, West Hanover. 0 Thou pitying God, who dost behold this great human J. Hormisdas Hebert, West Warren. world in which men blindly toil and strive, look upon it Charles H. Ellis, Westwood. in mercy. Have compassion upon it, lift it up so that we Stanley H. Matthews, Yarmouth Port. may see the fates of men and nations with the feeling of our Heavenly Father. Subdue · bitterness, - arrogance and MISSOURI pride, and the domination of selfishness. We pray that all William P. Rowland, Bevier. may live together as brethren, in ·cooperative zeal, seeking David W. Puthuff, Bolivaz:. to surpass only in those forces which are spent for others. Amy E. Larey, Buckner. Spirit of Wisdom Divine, defeat distemperature of passion, Charles Gustin, Edgerton. of conflicts, of collisions, and grant that peace may abide Ross A. Prater, Essex. everYWhere and light up the dark places of the earth. In Florence E. Gilbert, Fillmore. the name of Jesus, the Prince of Peace. Amen. Flora L. Brentlinger, Fordland. Henry W. Schupp, Fremont. The Journal of the proc~dings of yesterday was ·read Glenn Vaughn, Green Castle. and approved. , Alta 0. Snow, Holt. AMENDMENT TO THE TARIFF ACT OF 1930 Estella D. Seaton, Lathrop. Mr. COLLIER. Mr. Speaker, I move that the House re­ William A. Black, Lawson. · solve itself into Committee bf the Whole House on the state Roy R. Quinn, Moberly. of the Union for the further consideration of the bill