1926 CONGRESSIONAL R.ECOR.D-HOUSE 1973

~ Cliariie 'B. 'Starke, Holland. The Journal of' the proceedings of yesterday was read and Edmond\V. Corley, ·Humble. appro-ved.

Albert L. Jennings, Kosse. ' \. LEAVE OF ABSENCE Hem·y B. Harrison, La Porte. By unanimous consent, leave of absence was granted to Mr. Alide Schneider, Marion. MoRGAN, for five days, on account of important business. · Uae Sheen, Mertzon. Lucy Breen, Mineola. _ O.MNffiUS BUILDI:SG BILL ·· Mary L. Hardy, Newcastle. Mr. BUSBY. Mr. Speaker, I ask unanimous consent to ex­ Audry R. Redden, Ponta. -tend my remarks in the RECORD on H. R. 7182, relating to public Leland S. Howard, Roscoe. buildings. . . TIRGINIA The SPEAKER. The gentleman from Mississippi asks unani­ Cecil G. Wood, Ashland. mous consent to extend his remarks in the RECORD in the Creighton Angell, Boone Mill. manner indicated. Is there objection? Samuel T. Ranson, Bremo Bluff. There was no objection. 'Villard B. Alfred, Clarksville. Mr. BUSBY. .1\lr. Speaker, on Friday of last week, which Nancy E. Berry, Dahlgren. was January 8, I. introduced in the House H. R. 7182, which Daniel V. Richmond, Ewing. bill was in tbe nature of an omnibus building bill relating Bernard R. Powell, Franklin City. . directly to post-office buildings throughout the country. Lewis B. Connelly, Lawrenceville. It includes ·altogether 418 building projects and the items Leonard G. Perh.'ins, Mineral. contained in the bill, designating places for buildings, are m~ William E. Hudson, Monroe. eluded in sections 1, 2, 3, and 4. Mary B. Wickes, New :Market. Tbe items in section 1 are listed by tbe Secretary of tb&o Fillie C. Hammock, Riverton. Treasl].ry. A. W. Mellon, in his ·response to Senate Resolution. Harry M. Giles, Roseland. No. 94, directing the Secretary of the Treasury to furnish cer·­ Mamie A. Young, ShawsTille. tain data in reference to public buildings, in which communica­ Richru:d l\1. Epes, South Hill. tion be gave tbe following information on January 24, 1924: John P. Jenkins, Sperrynlle. (a) Name of each city or town-by States-where authorization~ Rosa S. Newman, Sterling. have been made for acquisition of a site, construction of a building on Hughes L. Gilbert, Stuart. site already owned, or for slte and bullding. Hersey Woodward, jr., Suffolk. (b) Date site was acquired; or, if not acquired, its present status. - Maude B. Hockman, Toms Brook. (c) Consideration paid for each site. James R. Tompldns, Toms Creek. (d) Amount authorized for site, site and building, or for buildiDg Otye E. Hancock, Trevilians. only. Cuthbert Bristow, Urbanna. , (e) Balance available tor building. Leslie M. Gary, Victoria. (f) Estimated cost of building on site au'thorized. George C. Brothers, Whaleyville. (g) Amount of increase- required where existing authorization is insufficient. WASHINGTON Forest W. , Buckley. This document is known as Senate Document No. 28, Sixty: Nicholas l\1. Field, Can1as. eighth Congress, first session. Zopbar Howell, Edmonds. After taking out tbe projects contained in this document Tyrah D. Logsdon, Endicott. wbicb. are shown by tbe Annual Report of the Secretary of the Alfred U. Thompson, Everson. Treasury on the state of tbe finances for the fiscal year ended Oscar W. Behrmann, Fairfield. June 30, 1925, on pages 400 and 401, to have been completed Calvin K. Cooper, Long Beach. and projects in course of construction, the remaining 234 proj· Guy McReynolds, Oakesdale. ects recited in Senate Document No. 28 were included and David W. Packard, Oak Harbor. made up into section 1 of H. R. 7182. These projects cover Joseph E. l\Icl\fanrunon, Othello. pages 1 to 18 of the bill and the amotmts provided in the bill · John L. Field, Quincy. are those given in the estimate of the Secretary of tbe Treas­ James S. Atwood, Sultan. ury. 'l'be total amount necessary to build tbe projects named Fred Arrowsmith, Sunnyside. in section 1 of the bill, as estimated by tbe Secretary of the Treasury, is $41,745,002. . WISCONSIN On December 11, 1922, llon. Hubert Work, Postmaster Gen· William White, Algoma. eral, addressed a communication to the J{)int Commission on Clifford C. Bro, Aniwa. Postal Sernce. Appended to that communication was a list Obarles G. Ballhorn, Bear Creek. of 1.40 cities where inve tigation shows that the floor space in George E. Alderson, Benton. the Federal building is inadequate. In this instrument be Foster V. Winegar, Clinton. states: Guy ID. Brigham, Darien. May I. Kinsey, Fish Creek. The proposed relief measures and estimated cost are given in each Wallace H. Pierce, Menasha. cttse. Lawrence Barrett, Peshtigo. 4-fter checking this list with the list given in Senate Docu· Edward M. 'Valker, Plainfield. ment No. 28 and eliminating the duplications in tbe two lists WYOMING there remain 132 projects which are listed in section 2 ot Blanche _Sutton, Hulett. H. R. 7182, pages 19 to 29. Tbe amounts provided in this section of the bill are those estimated necessary by the Post· master General to complete the construction of the projects. HOUSE OF REPRESENTATIVES Tbe total amount of these 132 items is $42,028,000. On February 8, 1923, the Postmaster General, Bon. Hubert WEDNESDAY, January 13,1926 Work, and the Secretary of the Treastuy, Bon. A. W. Mellon, The House met at 12 o'clock noon. jointly addressed a communication to the Speaker of the House The Chaplain, Rev. James Shera Montgomery, D. D., offered of Representatives giving a list of 19 cities where tbe Gov­ the following prayer : ernment-owned buildings are inadequate to house tbe Federal service, and suggested relief measures with estimated cost. Almighty God, our heavenly Father, we come again to the From this list section 3 of H. R. 7182 is made up and the solemn yet tender mystery of Thy throne. • We believe that amounts designated for each of tbe projects are those esti­ there is one God and one infinitely divine and holy Saviour, mated as necessary by ~.u.._ Work and Mr. Mellon, totaling through whose ageless sacrifice we are saved. We tb8llk Thee $50,560,000. I might add, however, that this section contains that while Thy judgments are so often mysterious they are two items for Seattle, Wash., amounting to $3,900,000_, which merciful. Gently correct us by that loving pity that redeems projects had been provided for in section 1 under Senate Doc­ and gives us comfort. Be unto us an abiding reality and make ument No. 28 estimate, and it also contains another item of Thy presence like unto the nearness of a dear friend. Give us $2,250,000 for Pittsburgh, Pa., which had also been provided large conceptions of the truth and a profounder knowledge of for in section 1 of the bill under like circumstances. These aU things needful. Oh, help us to bring the vision to tbe task, two items total $6,150,000, which deducted from $50,560,000 the revelation to the duty, and, above all things, the truth to leaves a total for section 3 of $44,410,000. This $6,150,000 everything. Through Jesus Christ, our Lord. Amen. should, of course, be deducted from the total amount of the LXvii-125 1974 CONGRESSIO~ AL RECORD-HOUSE 'JANU.A.RY 13 appropriation to be authorized on page 39 of the bill. (Senate The Elliott bill, H. R. 6559, seeks an abdication on the part Document No. 28 and the lists from the Postmaster General of Congress of its legislative functions; it asks Congress to and the Secretary of the Treasury referred to may be found adopt a new policy and to turn over, without let or hindrance, in -hearings on H. R. 11791 of the Sixty-eighth Congress.) the legislative functions of Congress to an executive branch of Section 4 of the bill contains 31 small items, totaling the Government, there to be administered by the subordinate's $2,750,000. of this department, as was disclosed in the recent hearings on Some of the items contained in H. R. 7182 were carried in that bill. They would determine the place, select the site for the omnibus building bill which passed the House January 19, the building, and determine the amount to be expended in each 1917 but failed in the Senate. Other items were included by instance. Under that bill there would be no limit whatever on me from a personal knowledge of the situation existing ~r any of these. Nor is any place definitely assured that it will from information furnished by Members regarding the postal receive any consideration. receipts, population, and so forth. Believing in direct legislation on the various projects where As above stated, the total number of projects provided for construction is contemplated by Congress, and being entirely in H. R. 7182 are 418, 387 of which, with the amounts esti­ opposed to conducting the Government by making lump-sum mated as necessary to complete them, have been taken literally appropriations and placing these sums in the hands of any from· the reports of the Postmaster General and the Secretary executive department to be used without limitation or direc­ of the Treasury. These require an authorized expenditure tion, I have introduced this bill with the hope that through of $128,183,002. The additional 31 projects in section 4 of. the the cooperation of the membership of Congress and the as­ bill involve an expenditure of only $2,750,000, as explamed sistance of the de·partments needing relief that we may all above. work together and in the committee frame a proper and com­ Section 5 of the bill provides $50,000,000 for the District of prehensive building bill and relieve the unwarranted congestion Columbia to be spent under the direction and discretion of existing from one end of the country to the other. the of the Treasury over a five-year period, very Secr~tary EXTENSION OF RE~S much the same as is provided in the Elliott bill, H. R. 6559. This makes a total appropriation necessary of $180,933,002. Mr. LINTHICUM. Mr. Speaker, I ask unanimous consent Section 6 and section 7 of the bill relate more particularly to extend my remarks in the RECORD by printing therein a to the consh·uction of buildings in the District of Columbia speech delivered in Chicago by Gov. Albert 0. Ritchie, of and are very similar in character, if not in wording, to the Maryland, on the evening of January 8, 1926, in which the Elliott bill. Sections 8, . 9, and 11 are taken almost entirely, governor goes into the question of· centralization of power, if not literally, from the Elliott bill. the educational question, and the Volstead Act, all matters of vital interest to this House. Section 12 is entirely new matter and provides that the Postmaster General with the assistance of the Secretary of The SPEAKER. The gentleman from Maryland asks unani­ the Treasury shall annually submit surveys on buildings needed mous consent to extend his remarks in the RECORD by incor­ throughout the country and estimates of cost of projects recom­ porating therein a speech recently delivered by the governor of mended to be constructed. This is done with a view of taking his State. Is there objection? steps toward constructing necessary buildings in order that Mr. SNELL. Mr. Speaker, I am obliged to object. the mail facilities of the country may meet the requirements Mr. LINTHICUM. Mr. Speaker, I make the point of order that there is no quorum present. of the business. Mr. GREEN of Iowa. Mr. Speaker, what is the use of de­ I did not introduce this bill with the hope that it would laying the whole House here for three-quarters of an hour cover anything like all of the needed construction, nor did 1 simply because the gentleman can not get a certain speech hope that each item in the bill as introduced would be incon­ into the RECORD? testible or that it would be so perfect as introduced that it Mr. LINTHICUM. I thought the matter the gentleman has would not contain some mistakes. However, I realized that before the House was of -very vital interest to the Nation. I it would be referred to the Committee on Public Buildings was not aware that the gentleman would be satisfied with only and Grounds, of which I am a member, and that there its some 50 or so Members here to decide on this question. provisions could be carefully scrutinized and its imperfections Mr. GREEN of Iowa. Oh, the Members will all be here corrected. Other projects could be added and unnecessary that will stay here. - projects included could be eliminated. Mr. BURTON. Mr. Speaker, if the gentleman from Mary­ The Committee on Public Buildings and Grounds has been land will permit, would he not be satisfied if this speech were having hearings for the past 10 days on the Elliott bill, H. R. printed as a House document? I feel there is a very decided 6559. During the hearings it has developed that no post-office opposition to loading the CoNGRESSIONAL RECORD, which is al­ buildings have been authorized since the omnibus building bill ready so voluminous that very few undertake the task of read­ of 1913. . ing it, with these extraneous matters in the way of speeches - The Supervising Architect said that before 1913 the average and magazine articles and things of that sort. If these _ad­ annual expenditure for public buildings was about $15,000,000. dresses delivered elsewhere are of value to the public, there It will be recalled that our dollar now is worth only about might be a compromise or a substitute by having them printed 60 cents when compared with the purchasing value of our as House documents, which could go out under frank and dollar then. So the annual expenditure of $15,000,000 for the whoever wished them might have them. I think we are in­ country at large provided in the Elliott blll would at present terested in the RECORD in not lumbering it up so by speeches construct about 60 per cent of the buildings it would have delivered by A, B, C, or D, and all thiiigs of that sort. in 1913, notwithstanding our needs for additional quarters have Mr. LINTHICUM. Mr. Speaker, let me state what I am greatly increased and by developing the parcel-post business after. I think the speech is of interest to all of us. I think we have added 700 per cent or 800 per cent to the volume it is of interest to the country. It is not a partisan speech. and to the weight of the mails to be cared for. It contains the expressions of a man who is a national figure, Bulletin No. 397, United States Bureau of Labor Statistics, who believes that he sees some solution of these vexing ques­ on page 8, gives the aggregate value of all building construc­ tions. If the gentleman from Ohio [Mr. BURTON] can procu~·e tion, as shown by permits issued in cities covering only about for me the printing of this speech as a House document ~n one-third of our population, by years from 1914 to 1924, in­ place of having it extended in the RECORD, that would be satis­ clusive, to be $16,214,774,240, which together with the con­ factory to me but I think the public is entitled to have the struction for 1925 estimated at $5,000,000,000 would run the speech in ord~r that they may read it. I disagree with the cost of construction of buildings in these cities during a -period gentleman from Ohio about people reading the CoNGRESSIONAL of 11 years to more than $21,000,000,000. RECORD. I find that in my district they do read it, and they • In the meantime, we as a Nation have done nothing to care think it is a very valuable document. for a branch of the Nation's business, which, as above stated, Mr. GREEN of Iowa. Do I understand the gentleman sticks has increased in volume and in weight 700 to 800 per cent, but, to his point of no quorum 1 according to testimony submitted to the Public Buildings and Mr LINTHICUM. I do. Grounds Committee at its hearings, have permitted the mail Th~ SPEAKER. Will the gentleman reserve his point or in many instances to be piled up in vacant lots during rush order for a moment, in order that a privileged report may be seasons, subject to be damaged by the weather and the elements. made? TI1e foregoing explanation gives some of the reasons why I Mr. LINTHICU:l\1. Certainly. wrote and introduced H. R. 7182, covering the entire country. I felt the entire country needed the relief provided in this bill. NAVAL APPROPRIATION BILL This as an omnibus bill is in conformity with the policy the Mr. FRENCH, by direction of the Committee on Appropria­ GovNruner.tt ita.s followed for more than 20 years. There is tions, I'eported the bill (H. R. 7554, Rept. No. 84) making ~p­ nothing new about it afid nothing unusual. propriations for the Navy Department and the naval sernce 1926 CONGRESSIONAL RECORD-HOUSE 1975 for the fiscal year ending Jline 30, 1927, and for other purposes, gentleman from Mississippi [~fr. Cou;.IER] is 2 hours and 5 which was read a first and second time, and, together with the minutes, making a total of 4 hours and 36 minutes. accompanying report, referred to the Committee of the Whole Mr. GREEN of Iowa. Mr. Speaker, I yield 10 minutes to House on the state of the Union and ordered printed. the gentleman from Virginia [Mr. Mo~AGUE]. [Applause.] Air. BYRNS. Mr. Speaker, I reserve all points of.order. Mr. MONTAGUE. Mr. Chairman, I am compelled to leave Th·e SPEAKER. The gentleman from Tennessee reserves all the House and if a vote should be taken to-day upon this bill, points of order. I wish to state my position, necessarily inadequate by reason CALL OF THE HOUSE of the short time accorded me. I have earnest convictions as to the duty of the Congress Mr. LINTIDCUM. Mr. Speaker, I renew my point of no in relation to the pending legislation. I can see but one side quorum. to it, and that is, that we should•accept the compromise settle­ The SPEAKER. The gentleman from Maryland makes the ment submitted by the Debt Commission. [Applause.] I · point of order that there is no quorum present. Evidently would, laying out of view all irTelevant matters which I fear there i~ not. may find presentation to the committee before this business Mr. TILSON. Mr. Speaker, I move a call of the House. is finally disposed of, urge the very obvious and palpable fact A call of the Hou e was ordered. that cd'n:fronts us, namely, that under this settlement is The doors were clo ed. promising to pay all or more than she is able to pay, and The Clerk called the roll, and the following Members failed therefore as I view it it is our duty to get something rather to answer to their names : than to lose all. So when we speak of the burdens upon our [Roll No. 9] own ta~ayers, my vote is intended to relieve that burden to Abernethy Crowther Hawley Purnell the extent of something rather than to increase that burden Adkins Crumpacker Hull, Tenn. Raker by getting nothing. Our taxpayers are better off with a half Allen Curry Johnson, Ill. Reed, N.Y. Allgood Davenport Johnson, Ind. Sabath a loaf than no loaf at all Indeed, I gravely fear they will Anuresen Davey Johnson, Ky. Sanders, N.Y. never get anything. Arentz Dempsey Keller Schafer The economic condition of Italy, which was so ably and Bankhead Dickinson, Iowa Kendall Sproul, KanB. B edy Drewry Kerr Strong, Pa. brilliantly argued on yesterday, must convince anyone that she Bell Eaton Kurtz Sullivan is quite unable to pay more. She has exhausted her revenues, Berger Ellis Leatherwood Swoope because she .has exhausted her powers of taxation for the Britten Fairchild Mead Taylor, Colo. Burdick Fletcher .Uenges Thomas purpose of raising revenues. She has cut to the bone her ex­ Butler Fredericks Nelson, Wis. Thurston penses ; her economies have been almost marvelous. She is Canfield Fulmer Parker Tucker one of the few nations who has wrought economy in every Carew Gallivan Patterson Vaile governmental expenditure since the close of the war. She was Carpenter Garner, Tex. Peavey Va.re Carter, Calif. Harrison Perkins Vinson, Ky. a mall gainer by this war. I doubt if she gained anything, or Cooper, Wis. Hastings Phillips Voigt any of the other allied nations, as to that. The victors and C1·amton Haugen Pou Walters ·vanquished alike lose in modern warfare. The argument as to 'l'he SPEAKER. Three hundred and fifty-six Members have her reparation from as a .large source of income is answered to their names, a quorum. premature, in my judgment The Dawes plan is still prob­ Mr. TILSON. Mr. Speaker, I move to dispense with further lematical, very doubtful, and I have no confidence that these proceedings under the call. reparations will reach the figures brought to the attention of The motion was agreed to. the House on yesterday. I venture to assert that the whole plan of reparations will have to be revised in a few years. SE'ITLEMENT OF THE Th"DEBTED~ESS OF ITALY TO THE UNITED Italy has few or no raw materials. She is without iron or STATES coal ; she is practically without fuel, food, or raiment. Her Mr. GREEN of Iowa. Mr. Speaker, I move that the House only hope is in the development of her water power and the resolve itself into the Committee of the Whole Honse on the intensified operation of manufacturing processes, plus her raw state of the Union for the further consideration of the bill silk and her ships-her sea-going carriage. Tourists may con­ (H. R. 6773) for the settlement of the indebtedness of the tinue to go to Italy in great numbers, for it is quite evident Kingdom of Italy with the United States, and, pending that, I that her climate, scenery, and historic ruins and memorials would like to inquire of the gentleman from Mississippi ·[Mr. will continue to attract large numbers. The revenue obtained CoLLIER] if the situation is not so we can get some kind of an from the remittances of her immigrants is a diminishing factor. agreement as to the limit of debate? Our drastic restriction of immigration inexorably lessens those Mr. COLLIER. I will say to the gentleman from Iowa that remittances. Again, where we have left open the door for a I have requests for time amounting to around six hours, which small immigration, it is first applicable to a preferred supply, perhaps may not all be used ; but I suggest we run along for a namely, the nea.I' kinspeople of already in this country, couple of hours and see what we can do. to whom no remittances can be made, for they are already in Mr. GREEN of Iowa. Let me suggest this kind of an ar­ America. rangement to the gentleman : That we run for two or three It is a very unpleasant task to speak of the distress and hours, and in the meantime the gentleman can get his time poverty of a historic nation. It is a task most uninviting. assignments adjusted, and then I will move that the committee But I give you just one set of figures that I think speak their rise so that we can secure some kind of an agreement as to own story. These figures are obtained from the Institute of time. Economics, a scientific and nonpartisan body. The national Mr. COLLIER. That is perfectly agreeable. income of four nations and the total taxation of four nations Mr. CARTER of Oklahoma. ·May I ask the gentleman from will be given. The national income per capita in the United Iowa a question? Does the gentleman expect to vote on this States is $600, and the percentage of taxes thereon, National, bill to-day? State, county, and municipal, is 11 per cent. The national in­ · Ur. GREEN of Iowa. I had hoped to; but my hope seems to come of Great Britain is $400 per capita, with a tax of 19 per have gone glimmering. I renew my motion, Mr. Speaker. cent. In France the per capita income is $200, with a tax of The SPEAKER. The gentleman from Iowa moves that the 19 per cent. Italy's national income per capita is $100, and House resolve itself into the Committee of the Whole House on her rate of tax is 21 per cent. With a per capita income one­ the state of the Union for the further consideration of the bill sixth as large as that of the United States, Italy pays almost H. R. 6773. twice the per capita tax rate paid by the people of the United The motion was agreed to. States. Accordingly the House resolved itself into the Committee of I heard no refutation of j:he statistics and figures submitted the Whole House on the state of the Union for the further yesterday to this House as to the financial and economic con­ consideration of the bill H. R. 6773, with Mr. MADDEN in the dition of Italy. I was open-minded on this subject until I chair. read the hearings and report and listened to the debate. The The CHAIRMAN. The House is in Committee of the Whole debate deepened my conviction, which, of course, was at first House on the state of the Union for the further consideration a prima facie opinion that we should abide by the report and of the bill H. R. 6773, which the· Clerk will report by title. settlement of the nonpartisan and able debt commission of our The Clerk read as follows : Government. A blll (H. R. 6773) to authorize a settlement of the indebtedness Mr. McKEOWN. Mr. Chairman, will the gentleman yield of the Kingdom of Italy to the United States of America. for a question? Mr. MONTAGUE. If it is a brief one. The CHAIRMAN. The Chair wishes to announce that the Mr. McKEOWN. I understand Italy, ever since_the war, time consumed by the gentleman from Iowa [.Mr. GREEN] is has been unable to establish her credit. Did not the gentle­ 2 hours and 31 minutes, and that the time consumed by the man make that statement? 1976 CONGRESS! ON AL RECORD-HOUSE J .A.NU ARY 13 Mr. 1\IONTAGUE. Tije gentleman misunderstood me. Moreover, it is considered beyond question by those most Mr. McKEOWN. Did I understand the gentleman to say competent to determine that Italy, alive and doing business, that Italy had no raw production at all? will be of far more benefit to America than Italy dead and 1\Ir. MONTAGUE. Practically none. her settlement paid. We must pursue ordinary business ex­ 1\fr. 1\IcKEOWN. What about silk? perience in dealing with an impoverished or bankrupt debtor, 1\fr. MONTAGUE. There is a difference of opinion as to the namely, obtain all that the debtor is able to pay, and then help quantity, but it is perhaps her largest domestic production. the debtor upon his feet in order that we may continue to do 1\Ir. 1\lcKEOWN. I understand that Italy produces 63 per business with him. The fundamental consideration shonld be cent of the raw silk. an amicable settlement, and then an accumulating business 1\Ir. MONTAGUE. That is a bagatelle; certainly an inade­ with such nation over an immeasurable period of time. Italy quate factor to conclude an opinion adverse to this settlement. has been a great customer of the United States, even under I maintain, Mr. Chairman, that the statistics of the economic recent conditions. She purchased from America during the condition of Italy brought to the consideration of this House calendar year of 1924, which is the last year for whic;h com­ have not been impaired, weakened, or refuted in any rna terial plete figures are available, $3,722,646 worth of tobacco, $84,- particular. I would like to have Sfen more money obtained, 367,821 worth of cotton, and $185,900,001 of manufactured but I have been moved primarily by the consideration which I products, which should grow in volume, thereby giving an stated at the beginning of my remarks, that our people would expanding market to the American farmer and manufacturer. do better to get something than nothing. Harsh criticism of the Government of Italy is no answer to The United States advanced to Italy the sum of $1,648,034,- this settlement. Mussolini and the members of the cabinet and 05Q.90; the accrued and unpaid interest at the rate of ~14 per the official administration will not pay this debt. It will have cent to December 15, 1922, and 3 per cent from December 15, to be paid from the lands of the peasants, the assets of mer­ 1922, to . June Hi, 1025, amounts to $393,337,707.72, making a chants, a few products of manufacture, but mainly through total of principal and interest of $2,042,371,758.62. the sweat and toll of her laboring people, who already work at The deductions of $164,852.94 principal paid since December a rate of wage far below that paid in America. l\Iussolini 15, 1922, and interest at the rate of 3 per cent to June 15, 1925, must soon pass away, but the real debtor, the people of Italy, of $7,439.34, leave a net indebtedness of $2,042,199,466.34, which the nation of Italy, will have to pay this debt. the settlement wonld liquidate as follows: One hundred and Criticism has been made that Italy balanced too nicely her ninety-nine thousand four hundred and sixty-six dollars and determination to enter this war; that Italy did not get into thirty-four cents is to be paid in cash upon the execution of the war soon enough. Many millions of Americans think that the ag1·eement ; t11e residue of principal, together with the we, too, did not go into the war soo.n enough. [Applause.] interest heretofore mentioned, $2,042,000,000, is to be paid But it is certain that during the period intervening between in increasing annual installments covering a period of 62 years. our declaration of war and our actual participation in war we Fot· the first five years $5,000,000 per annum, of which the could not help our allies so well in any other way as by loans first installment has already been deposited with the agree­ and credits. And, mark you, none of these loans were made to ment of settlement, and thereafter the bonds of the debtor shall Italy until after our declaration of war, and almost the entire bear interest at the rate of one-eighth of 1 per cent per annum sum loaned to Italy was spent by her m the purchase of mili­ from June 15, 1930, to June 15, 1940; one-fourth of 1 per cent tary supplies in America-supplies not to be consumed in the from June 15, 1940, to June 15, 1950; one-half of 1 per cent upbuilding of Italy but supplies to be consumed by Italy in the from June 15, 1950, to June 15, 1960; three-fourths of 1 per cent struggle to prevent vanquishment or extinction. from June 15, 1960, to June 15, 1970; 1 per cent from June 15, I beg the committee to forget Mussolini and his dream of a 1970, to June 15, 1980, and 2 per cent on the remaining seven Roman empire, which is, indeed, a baseless fabric of a vision. installments. Thus it appears that the settlement includes the Let us rather remember the transcendent historical career of principal of $2,042,000,000 and interest in the sum of $393,- Italy; her ancient glory; her immeasurable contributions to 337,707.72, and to this extent the principal is compound inter­ civilization; her nourishing examples of art and literature, of est. Therefore, the American people will secure the principal arms and law, of science and invention, of her vast and mighty of the debt and practically little under 1 per cent per annum contributions to the civilization of the world. in interest over the entire period. America contends that she is now in the forefront of world The debt commission adopted an inflexible rule of determin­ civilization. I would not traverse this complacent self-exalta­ ing the settlement of the debt; first, that the entire principal tion ; but I would observe that the mightiest factor of the of the debt must be first recognized,. that no deduction what­ mightiest civilization consists in the justice and the right of a eYer would be made upon the principal ; second, that all de­ people. 'Ve of our great country can not afford to be other­ ductions or compromises should be confined to the rate of inter­ wise than just to Italy. For 2,000 years she has given a ma­ est, and this rate or amount of interest should be based upon jority of the great names that will live through all time. the ability or capacity of Italy to pay. Upon these conditions Her historians, her poets, her philosophers, her warriors, and and rules of determination the settlement has been made and her statesmen have left a legacy in which all, and especially submitted to this House. the English-speaking world, have richly shared. Italy is now Logically the debate involves· solely the capacity of Italy poor and distressed, and if we are in doubt in our computations to pay. Italy bas submitted her official documents, containing upon the balance sheet, it would be a part of wisdom and of figures and statistics showing that she could not pay more than justice to give her the benefit of such doubt. the sum I have mentioned. These official documents and All sober-minded men must look with grave concern upon the statistics have been verified and checked by the commission, turbulent face of the world-upon the need of peace among the aided by competent experts from our Government, with the nations of the earth, which has het·etofore been mostly dis­ result that the commission agreed that the sum submitted turbed or broken by subtle suspicion, by irrepressible lack of evidences Italy's utmost capacity to pay. confidence of one nation in another. Let us suppress these sus­ That she conld not pay more than this ·sum, the House has picions and pursue the pathway of generous confidence and had elaborate figures sustaining and demonstrating this humane good will. Such a course does not impair the debt or position. I have heretofore observed that these figures have the settlement under consideration, but is worth more than the suffered in this debate neither impairment nor refutation. debt involved in this settlement. [Applause.] Indeed, the very circumstances arising out of this debate hav'3 Mr. COLLIER. Mr. Chairman, I yield to the gentleman demonstrated that Italy can pay no more. The Members who fi•om Illinois [l\Ir. RAL~EY] so much time as he may desire. take a different position and insist that this settlement should The CHA1Rl\1AN. The gentleman from Illinois is recog­ not be accepted confess by necessary implication that the nized. sum total of the settlement represents Italy's utmost capacity Mr. RAINEY. 1\Ir. Chairman, I regret exceedingly that my to pay. ·why do I say cil.·cumstances imply this conclusion? friend from Virginia [Mr. 1\IONTAGUEl, who has just taken his From the simple reason that no Member has brought forward seat and who came into this committee "with an open mind," any amendment, substitute, or other plan of settlement. Tht3 conld not have listened until the end of the debate before mak­ only plan offered is that we should wait, hoping something ing up his mind as to the matters upon which he has now taken may hereafter turn up by which Italy's position may be im· a position. He accentuates the economies practiced under the proved. The time to settle indebtedness is when that in­ 1\Iussolini government in Italy. I have here-and I will read debtedness is fresh and warm in the minds of the contracting it before commencing my speech just for the benefit of the gen­ parties. Delay must necessarily operate against Italy's im­ tleman from Virginia who has just taken his seat-an Italian provement or rehabilitation. The very hour Italy arranges a newspaper, L'Unione, printed in Italian. I will be glad to give settlement with her creditor nations marks her first hope and it to anybody in the House who understands Italian, so he progress to final payment. Witness the example of Great may see whether I am correctly translating it or not. I want Britain. Her settlement with the United States almost im­ to call attention to the budget of Italy, to the present budget, mediately put her exchange at gold par. to the expenses which, without hearing any evidence at all, the 19~6 CONGRESSIONAL RECORD-HOUSE 1977 gentleman from Virginia, who bas "just taken .his seat, says ings occurs- a statement by Secretary 1\Iellon, which occupies ha\e been so greatly reduced. less than e1ght pages· of the e hearings. He appeared before the Mr. MONTAGUE. If the gentleman will permit, I will say Ways and Means Committee and read his statement; then to the gentleman that I have read all of the hearings, and I after he got through reacling it, this is what occurred: , read with great care the gentleman's remarks before the Com­ The CHAIRML'i. I think that is an admirallle statement, 1\ir. Secre· mittee on Ways and Means. [Applause.l tary, and that it would be adnsable to give it to the press, it you l\Ir. RAII\'EY. I am glad the gentleman did that, and I hope approve. the gentleman will 1·emain long enough in the room to listen to Secretary MELLO·. Thank you; I think it may be useful in that way. the remarks I expect to make now. The CILURML~. It is quite important, I think, that the country Here is a part of the Italian budget, which the gentleman should fully uxiderstand the reasons which actuated the commission in says has been o greatly reduced, expre ed in American making these settlements, and I do not think it could be set up in money. The King of Italy, under the Mussolini government, better form than you have set it up in this statement. • receives a salary of $3,250,000 a year; the Duke di Genova Secretary MELLON. I think there has been some confusion, from what recei\es a salary of $200,000 a year; the Duke d'Aosta receives we read in the press. a : aliuy of $200,000 a year; the Duke degli Abruzzi receives a Mr. CRISP~ I think it is a splendid statement, and, as a member of alary of $200,000 a year; the Count di Torino receives a sal­ the commission, I hope you will be willing to give it out to the press. ary of $200,000 a year; the Prince del Piemonte receives a sal­ Secretary MELLOY. Thank you. I think that can be done. ary of $200,000 a year; the Duke di Carignano receives a sal­ ary of $200,000 a year ; the Prince Letizia receives a salary of Now, those are the hearing , and that is the splendid ap· $200,000; and Mu olini himself receives a salary of $30,000 a proval which the statement made by the Secretary-probably year as Premier, and for the ministerial functions he discharges written by Mr. Winston-met with in the committee. besides those as Premier be receives a salory of $40,000 a year, Now, I have a feeling of friendship and very great admiration $10,000 in all, and. I do not know how much more in concealed for the gentleman from Georgia [lli. CRISP]. salary. The officers of his black-shirted Fascisti receive sala­ He is an able parliamentarian and an honorable, conscien­ ries in the aggregate of $48Q,OOO a year. tious gentleman. I have g1·eat admiration also for my friend Mr. BLOOM. Will the gentleman yield? from Iowa, Judge GREEN, tbe chairman of this committee. l\Ir. CRISP comes from an American environment, where people · tell ~.tr. RAINEY. Yes. lli. BLOOM. The gentleman has read about Mus oUni re­ the truth, where you can believe what they say, where he ex­ ceiving 30,000 a year and $40,000 a year? pects them to believe what he says, and they· do believe what Mr. RAINEY. Yes. _ he says in that kind of a community, and I believe what he says Mr. BLOOM. Does not the gentleman from illinois know here. I believe it represents his bonest convictions. He comes that Mus olini does not recei\e more than a salary of $1,000 a from a cotton-growing section of the South, where they produce year, and that is all he has ever received as Premier of Italy? the very best type of American citizen, and he is one of the [Applau e.] . best examples of the excellent type they produce in that local­ Mr. RAINEY. I know what this Italian newspaper states. ity. [Applause.] I" can say the same thing for my friend Mr. BLOOM. I would like to say that is all he receives; Judge GREEN, of Iowa. [Applause.] He comes from an Amer­ ican district where they raise corn and where the principal that Mussolini~has never received a salary of more than $1,000 a year as Premier of Italy. industries are raising corn and voting the Republican ticket. Ur. RAINEY. Well, I am reading from an Italian news­ [Laughter and applause.] The great objection I have to Judge paper, and I prefer to accept that to the statement made by my GREEN's environment is that there are too many Republicans friend from New York. [Applause.] there; but be has grown up in that environment, and, with the Mr. 1\IILLS. Will the gentleman yield? exception of the condition I have mentioned, nobody could have Mr. RAINEY. Yes. a better environment, a more typical American environment in 1\Ir. MILLS. Will the gentleman give us the name of the which to develop. new paper, where it is published, and the date of the edition Perhaps I can show you what influence Judge CnrsP's en­ from which be bas read? vironment had upon him in his dealing-s with this Italian com­ _·Mr. RAINEY. The date is December 4, 1925 ; the newspaper mi. sion, simply referring to a part of the hearings. I af;ked is L'Unione, and it is published at Pueblo, Colo. [Laughter.] Secretary Mellon some que tions. I asked him several ques­ -It is an Italian source of information which the Ways and tions, and u ually Mr. Win ton answered. I asked this question l\Ieans Committee did not consult at all among the strictly of Secretary Mellon : Italian sources of information it did consult and which the Mr. RAIYEY. Has any study been made of Italy's territorial acquisi- Pebt Commission did not consult at all among the strictly -tions as a result of the war? Italian sources of information it consulted. Mr. WINSTO.:--<. Italy secured no additional territory. Mr. HUDDLESTON. Will the gentleman yield? · Mr. RAINEY. What did she get? Mr. RAINEY. Yes. Mr. WIXSTON. I think she got a little rectification of boundaries in Mr. HUDDLESTON. Would the present Government of Italy North Africa.. permit any such statement as that to be published in a news- Mr. CRISP. The Italian commissioner furnished me the data on paper issued in Italy? Is it not necessary that those who that some time ago. I anticipated the question would be asked. have that kind of information go outside of Italy in order to He said they got a little strip in Africa but that that added litHe publish it? in wealth, and that they got Trieste and Fiume, which was mor~ a Mr. RAINEY. The gentleman is right about that. The sentimental consideration, and while it was not any capital gain, it Italian ncw:spapers are completely and absolutely suppres ed was sentimental. under the despotism of Mus olini. Now, some of these salaries . . . . . ha\e been increased under the Mussolini government notably He got h1s mformatlon from the Italians, and all the mfor- the salary paid to the Duke d'Aosta, and for reaso~s which i mation th~t ~as been submitted to. this committee or to the will appear a, I proceed with my argument, becau e that in- debt commiSsiOn ca-?1~ from the ~talians. crease to the Duke d"Aosta is a bribe, and I will tell you why I have such. a v1nd recollection of the absolute defeat in b~fore I get through with my discussion. I will be \ery glad th_e ~eld of diplomacy and s~a~esmanship of our debt com­ indeed to yield as I go along to gentlemen on either side of miSSion at the hancls of the Bntish delegates, the Anglo-Saxon the House, only I hope they will make their interruptions as delegates, that I do not wonder the Debt Commis~ ion failed so brief as they can. miserably in its attempt to deal with Italian diplomacy. ltal- Mr. 'VEFALD. Will the gentleman yield? ian diplomacy has not materially changed since the middle ages. Mr. RAINEY. Yes. There is another pamphlet of these hearings. Later on in Mr. WEFAI,D. I would like to have the gentleman tell the hearings the gentleman from Ohio [Mr. BunTox] made a the House what good all of the. e dukes are to the Italian statement covering about three pages confirming in the main the people. [Laughter.] statement made by Secretary Mellon, and then the committee :Mr. RAI~'EY. I will let the gentleman from New York on adjourned. They adjourned to meet the next day and when _ tbi side [Mr. BLOoM], who just interrupted me, and the gen- they did meet the next day I found, to my urprise, the tleman from New York on that side [Mr. MILLS), who has just Republican :Members proposed to report out these bills espe­ interrupted me, explain in their own time the functions which cially the Italian bill without any further hearings. I suggested these dukes di. charge in the government now conducted by to them there ought to be further hearings and that we ought !lussolini. to obtain some information from other than Italian sources. · Now, we have bad hearings before the Ways and Means They insisted I ought to have been ready with witnesses if Committee, and I want to tell you what they were. Here are 1 I wanted further hearings to contradict these statements, and the hearings before the "Ways and Means Committee [indicat- 1 finally, I succeeded in getting them to a

1926 OONGRESBION AL RECOR.D-HOUSE 1985 then be pretended to be scandalized and shouted, "Enough." They that they ·will succeed in breaking the Fasclst majority. A11 . the Fas­ wanted him to ~ tried. Very well; he arranged the trial himself, cist members are solid with Mussolini. They have passed the electoral cbose the chamber as his court, and his own ·faithful followers for the reform. Now, the elections made with the one-man constituency system·, jury. He accu eel himself, be defended himself, he acquitted himself. as with any other system, will ha>e the same result if they are " made " He did all this with such impudence that all remained bewildered. by Mus ollni. It the eledions were free, not even 1\lussolini would This he saw and, takrng advantage of their bewilderment, launched his be returned. But with the system of frightfulness, intimidation, physi­ fierce counterattack. Terror in ; people thrashed; houses cal violence, corruption, etc.. no elections will e-.er be genuine. If raided ; offices entered by force and wrecked; newspaper buildings de­ the elections are to be held by Mus olini under the one-man constituency vastated ; things that made Cardinal Maffi, Archbishop of Pisa., " w-eep system, they will be worse than with the .icerbo law, because with the a a bishop and blush as an Italian." From Tuscany be spread the Acerbo law the candidates were not interested in making any propa­ terror all over Italy, suppre ed the press, had some editors beaten, ganda, knowing that they were already elected. With the present from January 3 till now has ordered about 1,000 domiciliary visits system every Fascist candidate will organize a cudgel gang. Besides, daily. The Italla Libera, with its 120 branches, was dissolved; 365 in a good many rural constituencie it will be absolutely impos ible other societies and clubs, too, were dissolved ; the Freema ons' lodges to find 500 electors who w1Jl dare to sign the nomination paper, so were invaded and devastated; licen es were withdrawn from cafes, that a good number of Fascist C'andidates would be returned unopposed. country inns, and other meeting places of the opponents of the Govern­ 4. The opposition. Will the opposition remain on or descend from ment; the postal secrecy was violated, censorship of the telephone was the Aventine? This is the question which is now debated. It seems, instituted. Finally he announced his intention of reforming the penal however, almost certain that the opposition will remain on tlie Aven­ code and the police regulations, and one may easily guess what direc­ tine. Their argument is this: If they go to the chamber, they must tion the reforms will take. Such is the situation at present. Who.t raise the moral question and impeach :Mussoiini. But by article 37 is the outlook ? of the penal code, no impeachment of a minister is valid lf 1t is 1. The King. Hopes generally are abandoned that the King will take not made by two-thirds of the chamber. The motion, therefore, would any action; one of the ex-Premiers saw him about 10 days ago and be defeatea; and once defeated, it would not be possible to raise it had a long conver atton with him. The ex-Premier gave to the King again. The opposition will continue its tactics from outside and will a gloomy picture of the situation. The King did not conceal his inti­ try to influence public opinion. But now that the press is suppressed mate feelings, whlch are against the methods of Fascismo, but he kept and that no m·eeting is allowed, they would succeed in influencing on saying : " Things wUl get right by and by. You will see; things public opinion if they entered Parliament and made speeches there. will get right by and by." He gave the ex-Premier the impression It is rather hard· to see how they will be able to do so outside Parlia­ that he (the King) thinks Mussolinl capable of mastering the situa­ ment. The opposition has some excellent elements but, unfortunately, tion. The ex-Premier described the King as a man without will, not one single big leader. Amendola is a doctrinaire; Turati, a par­ neurasthenic, and fatalistic. In the conversation the ex-Premier had liamentarian; Albertini, a journalist. None of them has an ascend­ with him he even hinted at the possibility of abdicating. The general ancy over the masses. Another question which is before the Aventine opinion is that the monarchy is playing at its old game. It thinks just now is this : If Mussolini makes the elections, will the opposition only of saYing itself by preparing for all emergencies. The monarchy accept the arrangement or decide for abstention? Not .to accept the always kept its reserves. It declared the war, but lt did not break elections is impos ible. In the countryside it will be easier to vote with Glolittl, who eventually might have saved it in case the war for an opponent of than to abstain from voting. Therefore, had ended in disaster. Now the King tolerates both Fascismo and in the event of the opposition deciding for absention, the peasants Mussolini, but let it be known that the heir apparent is antl­ would go to the polls and vote. If the oppo ition accepts the elections, Fasci t. Bonaldi, the tutor of the heir apparent, is known i~ fac~ to they might 'fot'ffi a bloc, and this would succeed in the cities but not be anti-Fascist. Be this as it may, the possibility of an abdication of in the country. the King . eems rather doubtful arid remote. But one fact Is certain, 5. In conclusion: Which is the way' out of the present situation? that the unpopularity of the King has grown very much during the Up to January l all hoped for a parliamentary solution as a conse­ Ja t three weeks. It is believed that His Majesty lost an occasion quence of the publication of the Rossi memorandum; but now such for creating a ministerial crisis and forcing the resignation of Musso­ a solution seems impossible. Nothing is to be expected from the linl. When the two Liberal ministers Casati and Sarrocchi resigned, King for the reasons which I have already given. No rising is to be if he had asked the two military ministers to follow their example expected for the following reasons: A. Because the opposition has no the crisis would have been the natural outcome. Unfortunately, many arms. B. Because the present conditions of warfare have killed the people now begin to believe that the King is making common cause with epoch of the barricades. C. Because 30 years of socialist propaganda Mu olini, and this, of course, has greatly discredited him. have enervated the workmen e.nd peasants. They were taught to be­ 2. 'fhe situation in the country : There is a distinct difference be­ lieve in evolution, economic reforms, constitutional means of strife, tween the big cities like , Rome, and Naples, and the provincial etc. D. Because all the revolutionary elements, the anarchists, and towns and the.countryside. In the big cities, and particularly in Milan, so on, are all in the Government or with the Government. Exclud­ the compression is relative, but in the provincial towns and in the ing, then, a parliamentary solution, an intervention by the King, a villages it is very heavy. ~'here life is just like it was under Austria rising of the people, what can one expect for the liberation of Italy? and the Bourbons, and even worse. The system of banishment has There are Bismarcks imponderabllia. One must not forget that nine­ been reintroduced and Milan is full of men with their families who tenths of the phenomenon is Mussolini. Without him the industrialist baY"e had to leave their own village, banished by the local fascio. and the agrarian reaction would lose its strongest instrument. Of The big indushialists are quite satisfied with this situation and are this the people seem to have an intuition. Some time ago an old the staunchest supporters of ~Iussolini. The value of industrial shares woman entered very early in the morning a village church and lit has increased threefold. The wages of the working classes have been candles and offered flowers at the altar. When the priest came down lowered. There are no strikes. There are no longer any labor ex­ and asked her what was the matter, she said: "I have heard that changes, and the ti·ade unions are ignored. It is, indeed, the paradise this morning Mu solini is flying in an airplane. If He aboYe would of the rich. The agrarian , too, have renewed their colonic pacts only open His eyes • • *." with the peu.sants, reducing the latters' salaries in certain cases by even one-half. ~'he profes ional men, the petite bourgeoisie, the intel­ The exceptional r~gime for the Italian press was initiated last sum­ lectunl instead are almo t all against Fascimo (and this explain why mer when Mu solini-on the m6rrow of the Uatteotti crime and of Mus ·olini dropped the plural vote, which by favoring people with a the campaign which led to the arrest of the presumed material execu­ university degree, would haYe been against him). The peasants and tors of the murder-issued a royal decree on July 15. In virtue of workmen are practically reduced to a state of servitude. While their this decree the Italian press was practically withdrawn from the wage llave been reduced, the cost of living has gone up tremendously; sphere of its natural judges and abandoned entirely to the will of the bread of the lowe t quality now costs lire 2.50 a kilogram. All work­ executive power. As is known, the representatives of the executive men's cooperatives having been deRtroyed, there is no possibility of power in Italy are the provincial prefects, who, armed with the de­ checking speculation. cree of July 15, could sequestrate a journal, or even suppress it after 3. Parliament: The only success of the Aventine has been that of having given it three warnings (diffide). This idea of the three warn­ isolating Fasdsmo. Now, the ministry is composed exclusively of ings is not original (it is really curious how Fascismo, which pretends Fascist members. In the cabinet meeting of January 2, after the publi­ to be a renovating movement, contains nothing new in itself). The eation of the Rossi memorandum, the majority of ministers were idea has been taken precisely from the ukase of 1881 of the Russian favorable to the re ignation of the whole cahinPt. Mus olini then de­ Czar, who had derived it from the avertissements of the 1852 law by clared that he was ready to resign. but that after hi re ignation he which Napoleon III tried to strangle the French press and after the coup would " cendere in piazza " (take the fight into the streets). All the d'etat. As to the motives upon which the provincial prefects can act, other ministers were then frightened and abandoned the idea of resig­ they were enumerated in the decree, but in practice it bas been found nation. The fact that Salandra bas passed to the opposition and that that the in tructions given to the prefects weJe simply to persecute the three old statesmen, Salandra, Giolitti, and Orlando, have made the opposition pres which gave the greatest umbrage to the Govern­ an alliance and are now acting in harmony bas certainly a great im­ ment. Tbus tbe Avanti, the well-known socialist (not communist) portance. But although Giolitti is optimistic it seems rather doubtful organ, has been sequestrated 36 times in five and a half months, while 1986 CO~ GRESSION AL RECORD-HOUSE JANUARY 13 the Fa cist newspapers, even the most violent, have been left undis­ were given from high quarters to a band of Milanese Fascists led turbed. by Volpi (now in prison as one of the presumed accomplices in the The decree of July 15 hn been declared unconstitutional by all murder of Matteotti) for the devastation of the Corriere della Sera. jurists, and enn by a sentence of the Trieste court (July 21, 1924), On that occasion the journal was saved only by the prompt inter­ which affirmed that the law can not be modified by decree, and that vention of some senators who, having heard of the premeditated the administrators of justice against those who violate the State laws action, telegraphed to Signor Mussolini warning him of the bad are the magistrates who can not be substituted by the political au­ impression that the fact would have produced. The Corriere della thorities. The protests against the decree and its arbitrary applica­ Sera is always guarded by soldiers and on some occasions its yard, tion were innumerable. and the most significant of them all was that are trasformed into a real barracks. Luigi Albertini, who is part of the lawyers and jurists of Italy in their national congress held at pr()prietor of the Corriere della Sera, and responsible, together witll on September 18, 1924. Dr . .Alberto Albertini, his brother, for the political conduct of the With the idea of normalizing its po ition (the never-ending labor paper, is the man most hated by the Fascists. Tlley have even tried of Fascismo is always that of normalizing itself) Signor :\Iussolini· pre­ to throw mud at him on a personal charge which one does not know sented to tl::a chamber on December 4, 1924, a new press bill. This whether to describe as being more ab ·urd than perfidious. The cam­ press bill also, which will come up for di cus ·ion before the chamber· paign, however, has been conducted in vain, because the Corrlere della soon nfter the discussion of the electoral reform, is nothing new in Sera, since it bas taken up its strong opposition to Fascismo, has It elf. It only reproduces coercive measures, which either were pre­ increased its circulation by 130,000 copie daily. sented to Parliament by the reactionary Minister Bonacci in 1898 without eventually being passed into law. or were part of the .Albertine THE YISIT OF Mm";!SOLI.NI TO -EXAMPLES OF POLICE METHODS statute (1848), as, for ii1stance, the preventive seiwre, which had been An episode should be told which places in the worst light the Bourbon aboli bed in 1906 by that enlightened, conservative statesman, t~e astuteness devised by the police on the occasion of the leader·s visit. late Baron • onnino. One of the socialistic leaders of Parma circulated about freely while Constitutionally considered, when Signor Mu solini presented to the all expected that he would be anested among the first ; hence great chamber a regular bill, the extraordinary de<'rce of July 15 shpuld wouder and suspicion. But one was not slow in discovering the reason have ceased to be operative. But although this principle was illus­ for the strange tolerance of the police. The police had posted at his trated by such an eminent student of law as Signor Orlando, the heels two agents from outside, wllo were unknown in Parma, with the decree of July 15 continued to be enforced. Indeed, on January 3 last, order to arrest all those who came in contact 'vith the socialist in ques­ the Government ga-.e orders to the prefects to apply, in addition to the tion. Even a judge of the court, a former acquaintance of the spy, was decree, also article 3 of the provincial and communal law which thus taken to the police station. Moreover, the police clo ed the res­ authorizes the prefects, in cases of emergency, to take whatever excep­ taurant where he was eating some food. tional measures they think convenient to pre erve public order. The Such a radical action by the police has not been known since the con equences of this reactionary attack on the press were of an ex­ murder of Duke Charles III of Bourbon. ceptional gravity. In 10 days, from January 3 to January 13, news­ papers, totaling 144 in number, were sequestrated. Three journal MEASURES AGAINST DESERTIONS 'vcre practically suppressed. The A vanti has receivPd two warnings As complement to the above provisions, on the morning of the 23d a (diffide) and is, therefore. on the eve of being suppressed. The perse­ squad of catapulters were to be on guard in the city. Only one man per cution of the press on the part of the Government was followed by out­ station could remain at home. Ali the others bad to be at Parma to rages on tlle part of the Fascisti. The ()ffice and machinery of the greet the leader. Nuovo Giornale (Florence), the Me saggero Toscano (Pisa), the Rin­ On the 22d the congress of corporations was held at Parma. The noven to ( Grossetto), the Provincia di Brescia (Brescia) were dev­ members had received a special round-trip ticket on their provincial astated. Parties of Fascisti stormed tlle Mulo (Bologna) and the trains. On the evening of the same day these tickets wet·e withdrawn Mattino (Leghorn). Attempts, frustrated by the police, have been from part of the members. The trains were then informed that those made against the Telegrafo (Leghorn), the Unione (Caserta), the Gaz­ who tried to return in the evening to their homes, on showing the ticket, zettino (Venice), the iera (Me~sina), the Giornale (Reggio Emilia). would have to pay the normal and entire price of the trip. Several editors were attacked and beaten, among them the editor of THE REST OF THE DAY the Garabaldino, an organ of the ex-service men of Brescia ; the editor Mussolini tried to make the souls of his prisoners thrill when his of a comic paper in Bergamo, and an employee of the A>anti. bla<'k shirts drew up before him praising the vow with which the r\()w, what bas happened to explain, if not to ju tify, this jntensificd peasants of Parma proclaimed their intervention. Useless ability. A persecution of the press? Have there been disorders? Ha>e there great part of tlle audience remained cold, in a painful attitude. Among been strikes? Have any plots been discovet·ed? Have hidden arms beeu the 20 black shirts officially ordered as an escort of honor to the found? Have there been any attempts on life? Nothing; absolutely leader were prominent the notorious assassins of that Carpi di Sala nothing. Italy was calm; there were no strikes, no disorders, no at­ Baganza, who was one of the most faithful followers of Corridonl tempt::;. All that happened was tllat the opposition press published and who in an intervenist committee in 1914 shielded Mussolini, the Rossi memorandum containing the well-known charges against who was threatened by neutralists ; the assassins, brought to trial Signot· Mussolini. But this bas been enough to suggest the foolish and freed, of the worker Adorni, an ex-combatant; the assassin, step of practically suppressing the Italian press. Under the present brougllt to trial, condemned, an1 pardoned, of the pea ant Costa; t~e conditions some newspapers have voluntarily suspended publication. as~assin of a woman of Berceto; and all the most violent criminals Others have renounced tlle making of any comment. A journal of of the citizenry of Parma, whose gene1·osity the leader was now Cuneo has published in place of the leading article the first chapter of praising. the Bible. The l\fondo, of Rome. has dedicated an entire issue to the 1\Iussolini remained at Parma about four llours. It can be calcu­ description of presents for tile children of the city on ~he occasion of lated that the staging of this brief visit, with its embellishments, the Epiphany. Other journals have published a description of the special trains, etc., cost about a million, and yet tlle citizenry remained monuments of Rome or given a selection of old Italian nursery rhymes, very cold. and even a portion of the telephone dit•ectory. Tlle Giustizia came out The great day of the leader at Parma will therefore remain in the one day with all its space blank with the exception of the adnrtise­ annals of the government a typical example of 'bow the "great con­ ments, but the Milan prefect sequestrated it all the same. These cas~s sent" was organized. would be amusing if they were original, but, as I said, there is nothing original about Fascismo. Le crime des blan<'s was punished a century LrBR.lRY OF CONGHF.SS, ago under the French Restoration with the same wisdom that charac­ Legislative Reference Serrice. terizes the present Italian r~gime. The state of affairs with regard +o the press .is mo t curious. Tlle Fascist newspapers are allowed to NEW FASCIST LAW ON LABOU RELATIOI'S say anything they like. The opposition newspapers, if they want to The main .facts of · the lav.- are quite clear and leave no doubt of get into circulation, are forced to abstain from making any comment. the aims pursued by the Government; to control in a direct and When the Aventine opposition published its manifesto in reply to the continuous manner hy means of political authority, the private speech of Signor i\iussolini, the orders given to the prefects were economic activity and to prevent at any cost that the free economic exactly as follows : Permis.'3ion to all to publish the text of the man:­ associations shall be the point of departure for any more pronoun<'ed festo, but absolute pronibition to the opposition pre. to comment upon political activity. Only associ&tions recognized by the Government it. The two most important Italian newspaper , the Cot-riere della Sera, can exercise the functions of a union. There may be but one recog­ of Milan, and the Stampa, of Turin, no longer· print leaders dealing nized association for each category of manual or intellectual workers. with the Italian situation. The directors must give a guaranty that they are loyal to the national Tlle Stampa pul>li bed the other day in place of the usual leader Government. a co1Tespondence from A.Iaska. The campaign against the Corriere Associations which are not recognized may exist as a society de della Sera on the part" of the Fascists is without quarter. ~fore than facto and are subject to the vigilance of the political autllorities once they bnve planned the destruction of the leading Italian news­ according to the regulations of a preceding decree of the Fasciet paper. After the election of April 6, 19~4, which marked a rebuff government January, 1924. This decree bas already caused the dis­ for the Fascists in Milan, and in the north of Italy generally, orders solution of the most important cooperative organizations and trade 1926 CONGRESSIONAL RECORD-HOUSE 1987 unions in Italy. Unions of employees of public corporations can not Mr. Chairman, I ask unanimous consent at this time to print be recognized. in the RECORD at this point, with this translation, so that it can In order that these provisions may not become a dead lette~ through be seen whether I have translated it correctly or not, the the passive resistance of the Italian people who in the majority oppose original Italian. fa cism, the law determines that every - recognized union .may coer­ . The CHAIRMAN. The gentleman from Illinois asks unani­ cively impose on all employers and workers the payment of an annual mous consent to print with the translation the original Is tax even if they do J;tOt belong to it. there objection? Fascism does not hesitate to Impose its authority, creating privileged There was no objection. and subject classes. It is thus w-ith the appointment of th'e podesta The document referred to is as follows: in all the cities of less than 5,000 Inhabitants, taking away the elec· Fascisti ! I nomi di cui potrete ndarvi che 11 Direttorio prosegua toral administrative right from about 17,000,000 citizens. . I'arduo compito che loro spetta sono 1 seguenti: The law creates a magistracy of labor, recourse to which Is made 1.. Gatti G. Em.manuele. obligatory in controversies relative to the application of current con­ 2. Cinquini Guiscardo. tracts. But recourse to the magistracy is also obligatory for the 3. Emilio Di Lorenzo. fixation of new conditions of labor when it is a question of agricultural 4. Marchlolo Giovanni. workers and employees of public corporations. It is optional for other Fascist!! Siate solidali a quest! candidati e votate compattl per essi. clas es. The decisions of the IaboL' magistrate are binding. Severe LA. SQUADRA DELLA MORTE. corporal and pecuniary punishments are infilcted on those who do not observe them. From the principle apparently withdraw their contact with of the directory which-awaits them are the following: Rome. The opposition to Congressman LAGUARDIA and others 1. Emanuele G. Gatti. of the Society of Sons of Italy of New York resulted in this 2. Guiscardo Cinquini. •• r October_ convention and thit? apparent reorganization of the 8. Lorenzo Di Emilino. Fascisti. This is only a paper reorganization. The National 4. Giovanni Marchiolo. Fascist! Party was diSsolved and the Fascisti League of North Fascistl! Be solidly for these candid_ates ·and vote compactly for America (Inc.) came into being. It was merely a change 'of them. name and an apparent severing of ties with Rome. Notwith­ U'm!: SQUAD 011' DEATH. standing this, on November 25, 1925, the Central Council Fascist 1988 CONGRESSIONAL RECORD-HOUSE JANUARY 13 League of North America sent to President Mussollni at Rome thorizatlon to organize Fascisti branches in the United States. this telegram : Upon his arrival in the United States he registered with the New York Fascisti and then went on to St. Louis, where he President MUSSOLINI, Ro-me: now is. Central Council Fascist North America closing work, second reunion, seuds to the dnce expressions our devotion, renewal of oath to follow, The registry contains a list of important Fascist chapters throughout the world. It boasts of many propaganda news­ to the end your orders and your wishes. papers. A part of the oath originally administered in 1922 and To which is appended these names: in 1923 read as follows : , Previtali, Citrioll, Bettero Trombetta, Macaluse. And we swear unquestioning, complete, and unlimlted obedience to There are about 36 chartered chapters in the United States Italian Fascisti. and 50 chapters to be chartered. Martinez, who is also em­ The communications from Mussollni describe these Italian ployed by the Italian council at New York, told Mussolini that chapters in the United States always as "Italian colonies." there were many thousands of Fasciti in America. Di Revel The New York World is in possession of an order from claims a membership of only 5,500, but he expects soon to Rome which reminds the Fascist! in America to remain Italians organize 50 chapters more, which will increase the membership always, " even if you serve another government." The leader to 12,000. The chapter at New York is known as the Mussolini of the anti-Fascist faction in New York, Doctor Fama, is abso­ Chapter and meets at 145 West Forty-fifth Street, and they lutely responsible; he is a patriotic American citizen and a report there is a membership of 1,000--a small part, indeed, Mason, I may say to the gentleman from Massachusetts [Mr. of the Italians in New York. New York contains more Italians TREADWAY] who belongs here in the northern jurisdiction of than Rome contains. New York contains more Italians than the United States. He wires me that he is familiar with the Naples contains. New York is the greatest Italian city in all American Fascisti, and that he will come here at any time, of this world. I want to say that nearly all of them are loyal in spite of their death squad, to testify to the facts with ref­ citizens of the United States [applause] ; that nearly all of erence to them before any committee organized by this House. them denounce and condemn this American Fascism which has He declares that Mussolini's F~scism is here with all its found its way over to this side of the ocean. Mussollni refers threats, and even with its death squad; and I am authorized to these various chapters as " Italian colonies in America," and by him to say that it is. asks them to remain Italians until the seventh generation. I will give the gentlemen who doubted some of my state­ The league is incorporated under the laws of New York. ments the facts which, I think, will convince them. II Grido ·The dues are $13 a year. One dollar goes to the general Della Stirpe, of New York, is the official organ of Fascism in council and $12 is put into the chapter to be used for propa­ the United States. A number of Italian newspapers in the ganda purposes. It still receives its orders direct from Musso­ United States recently were in financial difficulties, and they lilli in Rome. These organizations are to receive continual were compelled to go to Rome-that is, their editors were--or accessions, because Mussollni hand picks the delegates which they did go to Rome ; and after their return here, and after come from Italy to the United States, and they come here their consultations with the Fasclsti at Rome, they have appar­ hand-picked Fascist! delegates to join these chapters. ently succeeded in paying all their debts and have now become Di Revel advises them to join the National Guard. He Italian l..,ascistl organs. This Italian newspaper published in advises them to become American citizens, but they are advised Pueblo, Colo., from which I read a while ago, is too loyal in above 1·eligion and nationality to stand for Italy and the its Americanism to take money fi'om the Fascisti government House of Savoy. Their uniform consists of a black fez, black in Rome. They prefer to print the facts with reference to the breeches, and tan leggings. For formal occasions the uniform murderous character of that debtor whom you want to handle is a black shirt, black trousers, and blacl\: shoes. Members of now so delicately, and with whom you are so anxious on the Italian ancestry can become associate members but not full Republican side to make terms. members. Full membership is restricted to citizens of Italian I could continue this description of the Fascist! in America blood. and of the Fascisti in Rome. I could present even more facts Gentlemen, it will surprise you to know who some of the than these, and I have presented only a small part of the Americans are who have accepted associate membership in facts in my pos ession. More facts than these, a multitude this organization. I shall not read their names, however, but of facts, with reference to this disloyal organization in the I have them. Capt. Alle andro Pugliese, former secretary of United States can be obtained if you gentleman care to in­ the general council, is responsible for the statements that vestigate. Mussolini's government hand picks the Italian immigrants who The CHAIRMAN. The time of the gentleman from Illinois fill the quota for America. has again expired. Here is another telegram sent out on the 9th day of January, Mr. COLLIER. Mr. Chairman, I yield the gentleman 10 addi­ 1926, perhaps the latest expression of the attitude of the Fas­ tional minutes. cist! in America ; at least the latest eA'1Jression which I have Mr. RAINEY. And now may I attempt to show these inter­ been able to find : related propositions to which I tried to call attention a while The Fasclo Mussolini of New York send expressions o! regret at the ago. deatll o! the Queen Mother o! Italy, and take this occasion to renew I have now shown that the Italian debt settlement occurred our oath o! fidelity to the !ntherland and the Savoy dynasty. on November 14. On November 20 the Morgan loan was made; and at this point I desire to print in the RECORD, without This is signed by Commissioner E. El. Citreola. This was reading it, the statement of the Morgan bank, printed in the after the reorganization of this order. New Yorlr Commercial, with reference to the finances of Italy They hav·e a branch in St. Louis, where they have 35 regis­ in promoting this loan. tered members, and they claim 5,000 sympathizers. This branch The CHAIRMAN. The gentleman from Illinois asks unani­ receives weekly its instructions f1·om Rome; and when I say mons consent to print the statement of the Morgan bank, "Rome" I mean the Italian Government, not the Catholic printed in the New York Commercial. Is there objection? Church. Recently the Pope of Rome denounced, in a procla­ '!'here was no objection. mation which he issued, the Mussolini government and its Mr. RAINEY. Without comment, it speaks for itself as to methods in Italy, Giuseppe Carotti, of 5256 Daggett Avenue, the capacity of the Italian Nation to pay. St. Louis, is the president of the St. Louis branch. I have here the names of all the other St. Louis officers. They require THE MORGAN LOAN every applicant for membership in this order to fill out a The matter referred to is as follows, and was run as an questionnaire, and a copy of that questionnaire is kept in Rome. advertisement in the New York Commercial of November 20, The Mussolini government has the names of every member of 1925: this organization in the United States. While this organiza­ tion is world-wide, they have more chapters in the United $100,000,000 KINGDOM OF ITALY EXTER~A.L LoAN SINKI!'iG FU~D 7 PER States than anywhere else in the world except in Italy, and the CE!'iT GOLD BONDS-TO BJil DATED DECEMBER 1, 1 025-To lliTURlll questionnaire record is kept on file in Rome so that they can DECEMBER 1, 1951-lYT!i:TIEST PAYABLE JU~E 1 A..~D DECB~IBEJl 1 keep a check on and keep track of all the members of this EXCEPT FOR THE PURPOSES OF TH.I!I SI!iKING FUND, THESE BO::'iDS ARE NOr organization in the United States, half of whom, he says, are · SUBJECT TO REDE~lPTION UNTIL JUNE 1, 1941, ON AND AFTER WHICH American citizens. But "We pledge eternal allegiance,'' they DA.TE THEY MAY . BB REDEEMED, AT THE OPTIO!'i OF THE OOVF.RNMENT, say in the telegram they sent to the House of Savoy. ON ANY INTEREST DATE! AS A WHO~E BCT NOT I!'i PART, AT 100 PER CENT Carotti received from Giuseppe Bastianini, who is general A cumulative sinking fund which, it is estimated, will redeem the secretary of the foreign arm of the Fasclsti, the original au- entire issue by maturity, wlll be c1·eated by the Kingdom ot Italy by 1926 CONGRESSIONAL RECORD-HOUSE 1989 annual payments of $1,500,000 on September 15 of each year, beginning Stone & Co.; Redmond & Co.; White, ""eld & Co.: September 15, 1926. su·ch payments, together with sums equal to the Ladenburg, Thalmann & Co.; J. G. White & Co. (Inc.,; interest on all bonds previously acquired for the sinking fund, are to The National City Co., New York; Bankers Trust Co., be applied on the succeeding December 1 to the redemption, at 100 per New York; Kidder, Peabody & Co.: Halsey, Stuart & cent, of bonds drawn by lot. · Co. (Inc.) ; Mechanics & Metals National Bank; Ameri­ Principal and interest payable in United States gold coin of the can Exchange-Pacific National Bank; Chemical Na­ present standard of weight and fineness in New York City at the office tional Bank; National Park Bank; Clark, Dodge & Co.; of J. r. Morgan & Co. without deduction for any Italian taxes, present Bonbright & Co. (Inc.) ; Kissel, Kinnicutt & Co. or future. NEW YORK, Novembe1· 20, 1!J25. Coupon bonds in denominations of $1,000, $500, and $100, not inter­ Mr. RAINEY. The Morgan banquet to the Debt Commission changeable. occurred on the 21st of November. J. P. ~forgan & Co., fiscal agents. Mr. BURTON. The gentleman means the Italian Debt Com­ His excellency, Count , Minister of Finance of the mission? Kingdom of Italy, authorizes the following statement in connection with Mr. RAINEY. Yes. The entertainment occurred on the 21st this issue: and everything bad been settled. Then on November 25 the BUDGET American Fascisti, with Italy perfectly safe, as they thought, The Italian Government's budget is balanced. Since 1922 the commenced to send these telegrams with greater frequency and budgetat·y situation has been undergoing steady improvement, and in in a way which made them more easily detected, the telegrams the fiscal year ended June 30, 1925, actual revenues amounted to to which I have called attention. 20,45G,OOO,OOO lire, and expenditures to 20,247,000,000 lire, resulting On December 18 there occurred a meeting of the Urquehart in a sut·plus of 200,000,000 lire. The Government's budget for the stockholders in the Russian-Asiatic Consolidated Limited Min­ current fiscal year (ending June 30, 1926), as passed by the Italian ing Corporation in Great Britain, and I will refer to that in a Parliament, shows an estimated surplus of over 177,000,000 lire, and moment. On December 31 occurred these statements as to the include· estimated payments on the intergovernmental debts. Receipts rebuilding of Rome and in effect, I am afraid, disclosed the for the first three months of the current fiscal year, according to pro­ use they proposed to make of the money they had 1·eceived. visional returns, showed an excess of about 168,000,000 lire over May I refer in this connection to the Russian-Asiatic Con­ expenditures. solidated Limited Mining Co., because it is so closely inter­ PURPOSIII OF ISSt'JO related with these other facts that I must describe it here? This is the greatest mining organization in the world. It is The Italian Government has available resources and revenues suffi­ the Urquehart mining organization. It is the organization cient fot· its current requirements, both domestic and foreign. It with which Herbert Hoover was carr~ed as director until 1919, proposes, therefore, to devote none of the proceeds of the present loan when his name was omitted from the directors then announced. to ordinary expenditures but to hold the entire amount as a gold With reference to Mr. Hoover I desire to say that when be reserve a ,·ailable for currE:'ncy stabilization purposes, leading to the commenced his active career in 1897 in England he was em­ final steps in the Government's definite fiscal and financial policy, of ployed by a mining company as consulting engineer, and be which a completely stabilized currency is a vital part. so continued until he disassociated himself with that company GOVERNMENT DEBT about 1909. He was merely a mining engineer, but, of course, Since 1923 the Italian Government has made progress in funding received the large salary which mining engineers receive. its floating debt and in reducing the outstanding amount of its total From 1909 until 1912 he organized seven mining companies in internal debt. On June 30, 1923, the total internal debt amounted England., every one of which failed. In 1912 he became a to 95,544,000,000 lire; on· June 30, 1925, it stood at 90,841,000,000 director of the mining company to which I have just called lire, a 1·eduction of over 4,700,000,000 lire. With the exception of a attention, the mining company controlled by the Urquehart very limited amount of bonds issued In London P.rior to 1914, the interests, and in that year that company paid the Czar of present loan constitutes the entire Italian Government external debt Russia $60,000,000 in cash for mining concessions in Siberia. in the hands of the public. The Government's indebtedness to the Then the war occurred and no dividends were ever paid on United States Government has been funded under an agreement dated that investment, and that is the investment which occurred November 14, 1025, subject to ratification by the United States Congress when Hoover was connected with these interests. During the and tbe Italian Parliament. This' agreement provides for payment war occurred the rebellion of Kerensky and the seizure of these interests in Siberia. At that ti}ne Hoover, with his knowledge over a period of 62 years, beginning with payments of $5,000,000 of Ru sia, became our representative in distributing relief in annually during the first five years, gradually increasing during the Belgium and a little later when we entered the war in 1917 life of these bonds to approximately $26,500,000 in the twenty-fifth became our food commissioner in the United States, and our year and to approximately $31,500,000 in the twenty-sixth yea.r. The adviser as to the situation in Rus ia. An order was made Italian Go¥ernment's only other intergovernmental debt is that to the sending 17,000 American soldiers to the ports of Siberia; Eng­ British Government, discussion of which is under way. land sent an equal number, and Japan sent 70,000 soldiers. The above bonds are offered for subscription, subject to the condi­ They remained there watching the Americans and the English tions stnted below, at 94¥.! per cent and accrued interest, to yield so that they dared not move toward the interior of Russia. over 7.48 per cent to maturity and over 7.56 per cent to the average The White army of Russia was under the command of Gen­ maturity date. eral Kolchak, and the idea of those American troops and Eng­ All subscriptions will be received subject to the issue and delivery lish troops being sent there was to have them march toward to us of the bonds as planned, and to the approval by our counsel of the west. Do you not remember it? They were to form a their form and validity. junction with General Kolchak's army, and General Kolcbak's Subscription books will be opened at the office of J. P. Morgan & Co. army was to march toward the east. Between those two at 10 o'clock a. m., Friday, November 20, 1925, and will be closed armies were these concessions which had been taken posses­ in their discretion. The right is reserved to reject any and all appli­ sion of by the Soviet Government of Russia. Our troops dared cations, and also, in any case, to award a smaller amount than not move on account of the fact that there were 70,000 Japa­ applied for. nese there, and finally the army of Kolchak was defeated, Kol­ 'l'he amounts due on allotments will be payable at the office of chak was executed, and that section of Russia became the J. P. Morgan & Co., in New York, funds to their order, and the date strongest sovietized section of Russia. When finally the Czar of payment (on or about December 9, 1925) will be stated in the and his family were taken prisoners they were conveyed to notices of allotment. this part of Soviet Russia and executed, within 30 miles of Temporary bonds or interim receipts will be dellvered pending the these mines. I am telling yoo how these things happened to prepamtion and delivery of the definitive bonds. show you how correlated all these things are. Application for the listing of the definitive bonds on the New York Mr. GREEN of Iowa. Will the gentleman yield? Stock Elxchange is to be made by the Italian Government. Mr. RAINEY. Yes. · J. P. Morgan & Co.; First National Ban~. New Yo1·k; Mr. GREEN of Iowa. That all happened under a Democratic Guaranty Co. of New York; Harris, Forbes & Co.; administration, and it happened just as I predicted it would at Lee, Higginson & Co. ; . Brown Bros. & Co.; ID. H. that time. I said at that time that if we undertook to inter­ Rollins & Sons; Spenser Trask & Co.; National B&nk fere in the domestic affairs of foreign nations and send our of Commerce in New York; The Equitable Trust Co. troops there it would simply unite the Russian Nation agaip.st of New York; New York Trust Co.; Corn Exchange us, and now the gentleman from Illinois is proceeding along Dank; Dank of the Manhattan Co.; Seaboard National the same line. Bank; Empire Trust Co.; J. & W. Seligman & Co.; ?r!r. RAINEY. I am delighted to know that for once . the Marshall Field, Glore, Ward & Co. (Inc.) ; Hayden, gentleman from Iowa is correct. LXVII-126 1990 CONGRESSIONAL. RECORD-HOUSE JANUARY 13 Mr. LINEBERGER. Will the gentleman yield for a brief He asserted that the Soviet Government wanted the Russian Asiatic que:-;tion? Consolidated to advance £2,000,000 to rehnbllitate properties which Mr. RAINEY. Yes. the Soviet Government is unable to operate, although it got them for ~Ir. LINEBERGER. Did not the gentleman say that Mr. nothing, and declared the chief stockholders and debenture holders Hoover was a member of the President's Cabinet at the time were unwilling to throw more money into Russia in an e1rort to save these things occurred? their present investments, because the Soviet Government required that Mr. RAI~TEY. Ile was food commissioner. in the agreement under which the property would be turned back 1t Mr. LINEBERGER. But the gentleman said he was a mem­ would be stipulated that the concessionaire must abandon all claims ber of the President's Cabinet. This occurred in the latter against the Soviet Government. days of the Wilson administration, when Mr. Hoover was not STILL- SEEKING AGREEMENT a member of the Cabinet. Mr. Urquehart gave ft as hi~ opinion that the investing public 1\..(r. RAINEY. He was food commissioner and afterwards could not be interested in Russia unless the attitude of the Soviet became a member of the President's Cabinet. Government changed, and added : Mr. LINEBERGER. But not at the time these thing~ oc­ " I regret this extremely, as we bad reason to believe that certain cm·red. lmpGrtant American interests would have participated with us in any 1\Ir. RAINEY. No; not then. At that time he was a director reasonable scheme which had the financial support and good will of of the Urquehart companies, but as food commissioner he the Soviet Government, our shareholders, and the investing public." occupied a confidential position here in the U.J?ited States and Mr. Urquebart, however, believes the Soviet Government will change was for the administration the Russian authonty. its attitude, and says that efforts to reach an agreement will not be Mr. Lir;'"EBERGER. But under a Democratic administra­ abandoned. tion. Mr. RAINEY. Oh, yes. I am not discussing this matter • • • • • from a partisan standpoint. I am trying to give the facts, and Now, have I said enough to show bow all thes~ things dove­ that does not make it any better and it does not make it any tail into each other, and may I now make some suggestions worse. which are almost in the nature of predictions? May I suggest 1\Ir. LINEBERGER. But it corrects the REOORD. that after this tax reduction bill bas gone through, after these 1\Ir. RAINEY. Yes. Now, here is a dispatch from London. debt settlements and all the surrenders they involve of Ameri­ The CHAIRMAN. The time of the gentleman from Illinois can interests go through, after these mining interests in Rus­ has again expired. sia have been released and restored to the English company, which paid $60,000,000 for them; after this happens Mr. Mr. RAINEY. May I have 15 minutes more. I will try not Mellon bas fulfilled the entire measure of service be expects to u e all of that time. to fulfill as Secretary of the Treasury. May I suggest the time Mr. COLLIER. Mr. Chairman, I yield the gentleman 15 will then come for his resignation, and may I suggest that as a additional minutes, and he can yield back the time be does successor there be appointed Dwight Morrow, of the 1\.Iorgan not use. banks in New York, who, on account of these tremendous com­ Mr. RAINEY. In this connection and before going ahead missions, amounting to $9,000,000 on this Italian debt, anu I with the reading of this dispatch I want to say I do not think do not know bow much on the others, is probably one of our the gentleman from New York [Mr. BLOOM] will contradict richest men. If the New York bankers in making these foreign this statement. Recently there was a meeting of the Ameri~an loans got the same commissions they did on the Russian loan, Society of Italy, presided over by Tbo~as W. Lamont, :WhiCh they have now accumulated in the last three or four or fiv-e was given to the members of the Italian Debt Comnussion, years in commissions alone the sum of at least $900,000,000. and this was just before the commission sailed for Italy; and It .is time for Dwight Morrow, who belongs to the Amherst my friend, l\Ir. BLOoM, attended that dinner. bloc, to succeed Mr. 1\.Iellon as Secretary of the Treasury. I Mr. BLOOM. I attended that dinner? want to say something now with which my friend from Massa­ Mr. RAINEY. Yes. chusetts [1\.Ir. TREADWAY] will agree. When Dwight Morrow l'llr. BLOOM. That is absolutely wrong. I never attended becomes Secretary of the Treasury it will not be necessary for that dinner and did not know anything about it until the him to have a man Friday like Winston to write his messages gentleman just read about it. . for him and his essays. Dwight 1\.Iorrow is a man of g1·eat Mr. RAINEY. I supposed, of course, you were there. ThiS ability. I know him, and I want to testify to his ability. He Italian Debt Commission did not realize what an important belongs to the Amherst bloc, and there is always an accom· man you are in these matters or you would have been there. plishment, culture, and ability characterizing the gentleman Mr. BLOOM. I will answer the gentleman by stating I who belongs to that bloc. I am sorry my friend from Massa­ hope the other statements he has made are more nearly ac­ chusetts is not here. He belongs to the Amherst bloc. Some of curate than the statement I was at that dinner. [Applause.] them are Democrats, one at least, who, of course, I exclude Mr. RAINEY. I want to read this dispatch. M..r. Urque­ from this general definition of Amherst graduates. hart on this date, December 18, said to the stockholders-and After that happens Winston, who has made such a successful I will print it all in the RECOIID-in effect, that they expected Secretary of the Treasury-because he is really the Secretary, important assistance from American interests, but so far they taking orders, however-ought to be rewarded by receiving Mor­ had not been able to get it; but they hoped, however, that row's place in the Morgan banks in New York and given his American interests would be able to make arrangements with chance to make some millions out of the loans yet to be made. the Soviet Government so that their concession over there When all that has happened, Herbert Hoover will have fill­ could be recognized. I have abbreviated the dispatch, and I filled his destiny in this country. The Urquehart properties will print it in full in the RECORD. will be restored to their British owners and he can retire and This dispatch came just after the dinne~ given by thes~ same become the manager of these great mines and everything that New York bankers to the soviet delegatiOn from Russ~a, the goes with them in Soviet Russia. [Applause.] fact of which was concealed for a time. That dinner eVI.dently Under the permission to extend given me I print here my wRs held for the purpose of negotiating with the sonet in­ statement before the Ways and Means Committee, which in l:he terests in Russia for the release of their mining properties. report I presented a my additional views. I did not concur The dispatch referred to was printed in the Washington Post in the statement of Mr. CRISP reporting out the bill. of Friday, December 18, 1925. The following is the matter referred to : FOREIG~ DEBT FUNDIYG LEGISLATION 80VU7l''S REFUSAL '1.'0 RESTORE Fmms BLOCKS BIG DEAL-RUSSIAN HOUSE OF REPRESE-XTATIVES, oN WAYs AND MEANSJ ASIATIC CORPORATION CHAIRMAN PAINTS CONDITIO~S AS DARK­ Co~nnTTEE Wednesday, January 19!6. PEASANTS FIND GRAIN WILL BUY No Goons-Eco~oMIC MENACE k­ 6, PECTED TO FORCE MOSCOW TO REVISE POLICIES The committee met In Room 321, House Office Building, at 2 o'clock p. m., Bon. WILLIAM R. GREEN (chairman) presiding. LoNDON~ Dec;mber 17 (by Associated Press) .-Leslie Urquehart, The CHAIRMAN. 1.'be committee will please come to order. chairman of the Russian Asiatic Consolidated (Ltd.), in presenting his Mr. RAINEY. Shall I proceed? annual report to the stockholders to-day painted a black picture of The CHAIRMAN. Yes, sir. industrial conditions in Russia. He made it clear that the unwilling­ ness of the Soviet Government to restore part of the liquid capital of STATEliENT OF HON. HEN)lY T. RAINEY, A REPRESENTATIVE IN CONGRESS the foreign properties confiscated there precluded efforts to resume FROM THE STATE OF JLLI~OIS operation of the company's extensive copper, zinc, lead, and coal prop­ .Mr. RAINEY. 1\Ir. Chairman and gentlemen of the committee, inas· erties in south Russia and Siberia. much as tor a brief period of time I am dissociated from the com· 1926 CONGRESSIONAL RECOR.D-HOUSE 1991 . mittee, and not a memuer of it, I desire to say that I have never Ani! this is what I call attention to- · appeared before a more distinguished-looking body of men. "of this balance, following in part the scheme adopted by the Harvard The CHAIRMAN. Thank you. University Commission of Economic Research, and more generally the Mr. RAI~EY. And, having said this, and having made a statement one adopted in the memorandum of the League of Nations, first we which I am sure will meet with yom· approval, I want to proceed have adopted the definition between visible and invisible items and to make a gt·eat many statements, some of which may not meet with variations of capital." the approval of this committee. Therefore, all there- is in here with reference to any studies made I consider this committee as a deliberative body, organized for the by the Commission o! Economic Research of Harvard University, the purpose of considering the important matters of revenue, and not only reference there is in these booklets, is· that they have adopted organized for the purpose of accepting the suggestions of any com- the method used by the commission of economic research in making mission. no matter how that commission may be selected and ·no up this compilation. Not a thing accomplished by that committee, atter bow its membership may be made up. I feel that all of us not one of its studies, is refel'l'ed to in any way. They have just have a tlu.t:y to discharge in handling these immense funds which in simply adopted its method of making studi~s; that is all. tbeh· origin come f1·om the people of the United States by some Mr. MILLS. May. I ask a question? mt'tbod, direct or indirect, of taxes, and I thoroughly appreciate, Mr. RAIXEY. Oh, yes. and I am sure all of you do, the responsibilities of the position ·we Mr. MII.LS. Does the gentleman seriously mean to tell the com- occupy now. mittee that he has read those 23 pamphlets from cover to cover Feeling tllat way, y£>stet"day when in cxecuti;e session we were since yesterday at 12 o'clock? about to report out with a favorable recommendation bills involving Mr. RaiNEY. Oh, well, "I have examined them, evet-y one, and now millions and millions of dollars obtained originally from the people I will ask the gentleman to point out to me-for be says he has done of the United. States, and moneys not yet collected but which we it-or I will ask Mr. CRISP to point out to me a single paper in this expect to collect in the taxes we levy from time to time, I thought compilation which represents in any way or even remotely, studies that ~ e ought to hear all sides of this question, and I suggested to made by any other agency except Italian agencies, and the only the committee that we bad heard but one side, and that was the reference to any American source is this reference which the gentle­ Italian side. man from New York bad in mind, to this organization up there, this That suggestion yestet·day, when there was no reporter present, department of Harvard T.iniversity, and they merely say that in met with mo~t vigorous opposition, and it was insisted by gentlem~::n making these studies and these compilations they haye adopted the on ~ this committee that the commission had con~Sidered evidence other method used by that commission of economic research. than that presented by the Italian commission, the interested party Therefore, I do not think that these documents have received any in this matter, and I was told that here were 23 pamphlets in which serious attention from Mr. MILLS or anyone else on this committee, were contained an immense amount of matet·ial, and that I could nor, indeeu, from the debt commission itself. have llad them if I wanted them and could have studied the question Mr. MILLs. If the chairman will permit an interruption I want to for myself, and that these pamphlet\S represented studies maqe not state definitely that throughout those documents there are refer­ only in Italy by Italians in high positions in the Government of Italy ences to Ame.rican sources, and if the gentleman maintains that that is the only reference to an American source in those 23 booklets and by others there, but represented studies made by other agencies; there is only one conclusion to be drawn, and that is that he bas not and with that understanding I asked permission to examine them read the documents. for myself. Mt·. RAI::-sion represents the last word in statesmanship. It repre- result ts the Musso.lint goYernment. 1926 CONGRESSIONAL RECORD-HOUSE 1995 That was tn 1922. and the government was received with acclaim very rich are really trying to accomplish in this country, the destruc· by all the leaders of all the old parties and with tremendous en­ tion first of all of the estate tax, and then the reduction of the sur· thusiasm. taxes on the larger incomes. This has been accomplished in Italy ; Giolitti, Salandro, Orlando, and all the recognized statesmen of and they have taken this long step in the direction of the sales tax, Italy at once allied themselves with what, apparently, was a popular and a more autocratic government even than that which exists here movement, and there was tremendous enthusiasm throughout Italy. now. And then matters proceeded until there was some criticism in They have in Italy something like 9,200 municipalities. And the 1923 by Misuri, an Italian deputy, who was also Fascist deputy of offices in those municipalities, even, are controlled by Mussolinl. The Mus::-olini, and Mussolini openly announced, and the announcement officers are all subject to removal, even these professors in these state was printed in our news dispatches and has never been denied, that he universities who have been quoted in these pamphlets [indicating] proposed to have him punished for his defiance, and he was set upon and whose writings it is alleged have been translated into English over by the secret police of Mussolini and violently beaten and left help­ there in Italy, and printed in Italy-and all these booklets have been less upon the ground. printed in Italy ; they all bear the imprint of an Italian firm. These From that time on the government of Mus olini bas maintained very professors quoted in these books can be removed from the posi­ itself by force. From that time on murders have been frequent in tions they now hold, i1 their writings and their teachings do not meet Italy, and it is impossible sometimes to get anybody to prosHute with tbe approval of the dictator of Italy. The real authority that the murderers. We have now in Italy the most dangerous, the most we ought to consult in this connection is Mussolinl himself, as to what pronounced despotism that we have in any other section of all the he has done and what he is going to do. world. They maintain there now a police organization which they And now may I call attention to the loans we are making, not only call the "cheka," its existence is open and notorious, and everybody to Italy, but to other countries, and certain provisions in this bill? knows about it; they occupy offices in one of the government build­ I have here a clipping from the Journal of Commerce, which ings ; and they are trained, most carefully trained, these cheka, in happens to be the issue of January 4. 1 have here, also, a clipping those government buildings. They are taught to operate bludgeons from the Times of this morning, January 6, in which the matters to with flexible handles, and they practice upon dummles, the object being which I am going to call attention are shown to be even more pry are ordered to do it, and to break his jaw if they can ; not to Mr. CHINDBLOU. Which Journal of Commerce is that? kill him, or 1·a ther not to kill too many of them; that would arouse Mr. RAINEY. The New York City Journal of Commerce-quite a re- tqo much of a popular outburst, but to strike him in the lower part liable authority, let me tell you. of the face and to break his jaw. That is the policy of the secret Mr. CHINDBLOl\L On income taxes, too? police of l\Iussolini. Mr. RAINEY. What is that? And now may I read you what a trained observer, Sir Philip Gibbs, Mr. CHINDBLOM. Are they as reliable on income taxes? has said in this connection-and he is familiar with the Italian situa­ Mr. RAI)l'EY. They correctly quote the prices of bonds ; and that is tion. This is one of his most recent utterances: what I want to call attention to. "There are ugly things behind this mass of a united nation, rather Mr. CHI)l'DBLOM. Oh, a.ll right. terrible things beneath the surface of law and order; a yawning gulf Mr. RAINEY. But this is a capitalistic organ; there is no doubt at the feet of Mussolini himself, who seems so secm;e in his dictator­ about that. They are in favor of the things that the gentleman from ship; and above all, an utter denial of liberty tn speech and in ideas." Illinois stands for; so he need not worry. That is the recent utterance of Sir Philip Gibbs; and nobody is more llr. CHINDBLOl\I. I am not worrying. I merely wanted to know familiar with the Italian situation than Sir Philip Gibbs. which paper it was that you wer:_e referring to. And with this alarming situation in Italy we cancel this deb-t in order Mr. RAINEY. Now, the prices of the Austrian 7's are given. These that the bankers in New York may profit by loans they have made to are bonds tt·aded in and the prices are expressed in American denomi­ Italy. Italy agrees to pay us $5,000,000 a year for four or five years, nations, and many of them, perhaps most of them, were floated in and in return for that we loan Italy $100,000,000. our own markets. 'l'he Austrian 7's are selling about par, 100%: Now, I do not know how much commission the Morgan firm gets out the Argentine 7's are 102; the Belgian 7%'s are selling at 110; the of this loan. I am advised that this $100,000,000 loan was used in Belgian 8's are 107; Brazilian 8's are 102; the British 5lh per cent the first instance to reimburse the Morgan firm for $50,000,000 they bonds are The comparable bonds in interest returns that we had loaned for the purpose of stabilizing the lira-and if the state­ una. have here are the bonds of the Federal Land Bank, which yield up ments made a while ago by these gentlemen are correct, it was not done to 4.35 per cent; that seems to be about the highest yield. They at all. And after that, $9,000,000 was paid to the Morgan firm as are selling for 102%. The bonds of Chile are selling for 108%. The commissions, and the Italians got the balance of it. That entire loan of $100,000,000 has now been placed in this country, and the balance, Danish 8's are selling for llO:JA,. The German 7's are selling for after deducting the Morgan indebtedness of $50,000, 00, 1n all prob­ 101%. The bonds of Peru, the 8's, are selling for 102%,. The ability has been turned over to the Government of Italy to be deposited Queensland bonds are selling for 112. The bonds of the city of Rot. terdam are selling for 104. The 6 per cent bonds of Sweden are sen. 1n their banks. And now may I tell you something about the methods in which that ing for 105%. The 8 per cent bonds of Switzerland are selling for Government is being carried on at the present time, or was a month ago? 116%,. Changes there are very rapid, and you can not keep track of them. And now may I call attention to what our own bonds are selling for Mussolini was the Minister of Aviation, in addition to being Premier. in the same market? The 3% per cent bonds, at the close of that day, He was Minister of War, and he was Minister of Marine, combining in were selling for 99.20. The registered 3% per cent closed at 99.13. his owu person all these functions. In addition to that he had .de­ The first 4% per cent bonds closed at 101.21, and the United States 4's prived the legislative body of Italy of the right to exercise its func­ closed at 102, and so on. tions. And the laws that are ma.de in Italy now are made by royal Mr. CHINDBLOM. We have the lowest rates of interE>st? decree, issued, apparently, from the throne, but really, of course, issued Mr. RAINEY. Yes; that is it exactly, and that is the point I wanted by M ussolini. to make. And, therefore, having the lowest rates of interest, our bonds, The monarchy and the phitocracy in Italy absolutely control affairs our United States Liberty bonds, are selling and lower. Having a there now. And by monarchy I mean not only the King himself-he is higher rate of interest, these foreign bonds to which I have called just a small part of it-but the vast army of titled satellites who go attention are selling above par. Why, the bonds of Czechoslovakia are along with that sort of a government, and the plutocracy. selling now for nearly 102. As Secretary Mellon correctly stated here yesterday, I think, the Our reservoir of money in this country is limited, and we have loaned number of the very rich in Italy is limited; but they have a plutocracy now in this sort of investment, it is said, over $10,000,000,000 in these which is just as dangerous, because in Italy the workers and the high dividends, high interest-yielding bonds. And they are becoming masses of people do not invest their savings in industrial enterprises. more and more popular. These bonds are going up every day. They deposit their savings in savings banks; and the savings banks And as they become more and more popular and we do not have an being controlled by Mussolini, industry in Italy is financed by bor­ unlimited supply of money in the United States, they become more and rowings from the sa>ings banks. more attractive for those people who hold our own Federal bonds ; anrt And they have revised their system of taxes there. They have as they become more and more attractive those people are evidently taken the steps which must first of all be taken, if you are going to now giving up our own bonds and throwing them on the market; and proceed successfully to a sales-tax basis. '!'hey have abolished all if you compare the purchases of our own bonds with those of these death dues, although that had been a method recognized for I do not foreign bonds, you will see that they are giving up our own bonds now, know how many centuries in Italy for raising revenues. They have and, acting upon the advice of New York bankers and financiers, they abolished all death dues and have substituted a sales tax for that are buying these higher yielding bonds of other countries. method of raising revenue; and by that means they tax nearly every­ Will not that breach between our bonds and these foreign bonds thing ot· perhaps everything, that the people of Italy buy. That Is keep on widening, if we keep on making these loans? And there does always the first step in the direction of accomplishing just what the not seem to be ahy limit to the amount of money that we propose now 1996 OONGRESSION AL RECORD-HOUSE JANUARY 13 to loan abroad. And as the breach widens, and our own bonds go them a taritf high enough to enable them to charge as much as they lower and lower, while the field of investment in these foreign bonds want to charge. gets wider and wider, it becomes possible then for Italy, or any of So these policies, which do not seem to have entered into the con­ the e debtor nntions-becanse all of these settlements contain that siderations of the debt commission, are irresistibly pushing us further provision-to come into our own market and purchase our own and further toward a future which mny not be the kind of future the bond", and then pay off their debts to us in our own bonds. financiers of this country think they want. Now, the an wc>r to that is this-and that answer will be made: And now, with the Morgan money safely in the hands of the savings The answer to that is that we can go in and buy these bonds our­ banks of Italy, controlled as those savings banks are by Mus olini­ selves.:_that this Government can do that-at Jower rates, and pay and the disposition of their funds is controlled by him-and inas­ them off in that way. much as we have before us here now in these pamphlets [indicating] . That might be possible, if we have a surp1u of money for that the representations made by these satellites and subordinates of purpose. And of course, it does not make any difference, probably, Mus olini as to what the Italian Government is and what it is going to to the United States, so long as our debt is paid and our bonds are do in the future, and what it is trying to do, I want to read to yon 1aken u}r-it does not make any difference who pays it. what the dictator of Italy himself says that be is going to do. That is But what I am calling attention to is the tremendous advantage the authority which is really reliable, because he alone speaks authori­ which these debtor nations are going to have; in addition to the fact tativeJy. These are the utterances of Mussolini himself, not of his that we are practically canceling some of these debts, they are going commissioners who came to this country. I will read only a part of it, will to be abl e to buy wl::en they feel like it, and pay us off-or when these but I print it all in the record. amount become due, they are going to be able-not to pay their This is taken from the Imperio, the official organ of the Mus olinl money directly into the Treasury of the United States and take up governmt>nt; and the papers over there are permitted to exist only their own bonds ; but they are going to be able to go to our own mar­ if they print what the dictator wants printed. This is an Associated kets-and they can do it now in the case of the 3lh per cents-and Pres dispatch; it reads, "Fascist campaign against Germany started buy our own bonds, and turn those bond.s O>er to us in payments of in Rome." The Imperio explains that there was some excuse for their debts, and we are obligated to. accept om· bonds at par. That Italy's taking a se.cond place to Germany when Italy was a secondary part of the propo ition is exactly right ; we ought, of course, to be power; but now it asserts that Italy, as a foremost power, can no obligated to accept our bonds at par in payment of these debts. longer tolerate Germany being a superior. It reads: llr. McLAUGHLI~. Do you think the Italian Government would borrow "FASCIST CAMPAIG~ AGAINST GERMANY STARTED IN ROME-BRENNER fr<-'m Morgan at 7 per cent and take up their own bonds that we PASS DECLARED NoT ONLY SACRED FRONTIER BUT ALSO A STARTING hold, which beat a very low rate of inte1·est? Do you believe PoiNT-EVERYTHING ITALIAN Is CALLED WoRLD's BEs~WoRsT CrTI· Italy would buy our Liberty loan bonds with money it received from ZE::-. WORTH 1,000 FOBEIG1'1"'ERS, SAYS ARTICLE IN THE lMPERO Morgan? "RoME, December 25 (By Associated Press) .-Reports from Berlin Mr. RAIKEY. No; I did not say that. I say that, when the time that the German press is displaying dissatisfaction at the treatment of comes for Italy to pay, or for any of these debtor nations to pay, German-speaking inhabitants of South Tyrol by the Italian authorities if this breach, or thls cleavage, continues as it bas continued, tbey have given rise to an outbreak of violent anti-German sentiment in are not going to pay us in money ; they a1·e going to pay .us in our Rome. The extreme Fascist newspaper, Impero, publishes a long leading own bonds; and they are going to have that advantage in our own editorial entitled ' Our Instinctive Racial Enemy,' in which it outlines markets, in addition to the other advantages we have given them. the Italian policy to keep control of South Tyrol in perpetuity and This policy of loaning money abroad will continue, it is favored regards Brenner Pass as a sacred natural boundary. by the administration, and the President says that the nations of " The article, published less than a week after ratification by the the world ought to be properly thankful (I am not quoting his exact chamber of the treaty of commerce with Germany, warns Italians words) on account of the fact that there is open to them this tre­ against the renewed activities of Germans in the world of commerce mendous reser>oir here from which they can borrow money to re­ and declares categorically that Italy 'will never play second fiddle to habilitate their. industries. Why, we have already, under this system Germany again.' which we have inaugurated and to which our financiers, with the " DEMANDS FIRM POLICY approval of t>ur State Department 'cling-we have already made "The Impero explains that there was some excuse for Italy's taking loans enough abroad to yield us over $700,000,000 in interest every second place to Germany when Italy was a secondary power, but now, year; and that amount is also our balance of trade. it asserts, Italy as a power of the first order can no longer entertain lf this system of ours is to continue, this partnership of the Govern­ the idea of being ~rmany's lieutenant. ment with big busi.ness, by which we sacrifice the money which "The paper goes on to say that Italy's policy toward Germany must belongs to the people of the United States, in order that a foreign embrace the following considerations: First, that Germany shall be nation can borrow from us at large rates of interest-if this i to bound to expiate her criminal folly until she has fully repaired the continue, these incoming amounts of interest will grow larger and immense damage she has caused; second, that Germany may never larger, and it will be a serious problem to absorb the tremendous aspire to the possession of colonies-if there be land for colonization, amounts of money coming in. it will be for Italy; third, that Brenner Pass must be irrevocably English economists have been watching for years for the very thing Italian-on this point Italy can admit of no discussion ; fourth, that to happen which may soon happen-for the inevitable period of infla­ Austria must be prevented from joining Germany as against Italy. tion which must follow right along with the announced policy closely "NEW MOVEMENT LAU::-.CHED adhered to by the financiers of this country with the encouragement "The Impero reports the organization of a movement by Signor and the support of this administration-until, finally there comes Marinetti, futurist artis-t, called 'The Brenner Guard.' The principles the long-delayed period of inflation. English economists have been ex­ of this movement include: pecting that to happen before now, to be followed inevitably by a "First. The sanctity of Italy. period of depression. " Second. The ancient Romans conquered all the peoples of the We are in this position now: We must, if we can, check an incoming earth ; the Italian of to-day is insuperable. tide of gold. The financiers here see it, and they see it throughout "Third_ Brenner Pass is not the goal, but the starting point. the world. And we are checking it by making, in increasing amounts, " Fourth. The most unworthy Italian is worth a thousand foreigners. these foreign loans, and sending our savings over there. "Fifth. Italian products are the best in the world. But thet·e will come a time when we can not check the incoming tide " Sixth. The Italian landscape is the most beautiful in the world. of gold in that way; and then the result will be the result which the "Seventh. Italy bas all rights, since she maintains und shall main- financiers and statesmen of Great Britain are looking forward to with tain an absolute monopoly of creative genius. interest-the inevitable period of inflation and the defiation which "Eighth. Every foreigner must enter Italy under a religious spell. follows immediately afterwards. This money we are loaning ab;oad is "The Impero's article ends: 'We occupy Brenner Pass as a legiti­ being used in rehabilitating the industries of foreign nations; is being mate defense, but above all because it is our home whose confines are used for the purpose of enabling them to produce more cheaply; while outlined by nature in an unequivocal manner, even if in the past the money that comes back here in interest and which may soon pro­ others have usurped it.' a period of inflation before many months elapse--it may be post­ " Brenner is the famous mountain pass of Tyrol, which constitutes poned for a couple of years, but probably not longer-it wlll sooner or the shortest route between central Germany and Italy. It now marks later produce a period of inflation and much higher production costs, the frontier between Italy and Austria and is on~ of the great strategic until, finally, we reach the breaking point, when their lower prouuc­ points of Europe.'' tlon costs abroad, and our higher production costs here, will make it I desire here to Insert an announced activity of the 1\lussollni gov­ impossible for us to produce for export. Our manufacturers do not ernment. This announcement did not come until after the Mussolini regard that with any degree of fear or displeasure; because as they administration in Italy understood that its debt settlement with the have expressed It repeatean through Mor­ they are perfectly satisfied with the home market, provided we give gan was established. 1926 CONGRESSIONAL RECORD-HOUSE 1997

i also desit·e to read at this point a dispatch from Italy as to the At this point I desire to read a very excellent r~sum~ appearing in desti'Uction of the Italian Senate and the creation of an Academy of Labor, January 9, 1926, as to the protest of the Supreme Council of Immortals: Scottish Rite Masons in the southern jurisdiction of the United States against the Fascist tyranny in Italy: .. l'I:IUSSOLI::-ii ORDERS ROME RESTORED TO OLD GLORY-DIRECTS CITY'S " MASONS PROTEST MUSSOLINI MURDERS FIRS'r GOVERNOR TO RE~EW THE GRANDEUR OF AUGUSTAN DAYS­ STREET CAns ~lusT Go " The Supreme Council of Scottish Rite Masons in the southern jurisdiction of the United States has passed resolutions asking the Rom~, December 31 (By A. P.) .-Within five years the city of Rome Government of the United States to protest against the mistreatment, mw;;t be restored to the grandeur, vastness, and power it represented criminal persecution, and brutal murder of their brethren by the Fascist in the reign of Augustus. This definite program was given by Premier tyranny in Italy. Mussolini in the nature of a command to Senator Filippo Cremonesi "There is not much hope of such action from an administration to-day in the comse of an impressive ceremony in which the Premier that gave far better terms on the debt settlement to the dictator solemnly invested him as the first governor of the ancient city. Mussolini than those which it rejected when otrered by the Republic Signor Cremonesi becomes head of the city under the new form of of France. But the Masons can get the thing done if anyone can; government decided on by the cabinet, wWch gives the capital a sepa­ and more power to them. rate ndministration under the ministry of the intetior. "The Mussolini r~gime is a blatant tyranny; of late it shows many " Within five years Rome must appear as a marvel to all people of signs of being an insane tyranny. It can not last. As one shrewd the wol'ld-vast, ordered, and powerful-as it was in the time of the observer wrote not long since : • Italy has had long experience in fit·st empire of Augustus." said Mussolini. "You will make open giving extreme unction to tyrants.' squares around the Augustean amphitheater, around the ancient Mira­ "But perhaps a protest from the United States would give pause, cello theater, around the capitol, around the Pantheon. Everything even to the imitation Cresar now strutting his brief hour on ·the stage that has been built around these monuments during the centuries of of Rome.'' decadence must disappear. Within five years the Pantheon must be At this point in my speech I will print the story of the banquet visible from the Piazza Colonna through a wide avenue. given by New York bankers to the representatives of the Soviet " You will also liberate the masterful temples of Christian Rome Republic of Russia. from the profane, parasitical constructions which now cling to them. (The article referred to is as follows:) Thousands of monuments of our history must stand out in their giant­ " NEW YORK BANKERS AT SECRET BA!iQUET FOR SOVIET AGENTS-DETAILS like solitude. Then Rome will spr·ead out above other hills along the KEPT FROM UNITED STATES PRESS, SE~T ABROAD; CABLED BACK­ banks of the sacred river, even to the shores of the Mediterranean. SCHWAB A.l.'iD DILLON AliiONG TRE GUESTS-RUSSIAN COMMERCIAL You will remove from our streets, graced by these monuments, all POSSIBILITIES DISCL'SSED AT BANKERS' CLUB FEAST this contnmination of tramways, but you will give the most modern "NEw YORK, December 12 (By Associated Press) .-American bankers means of communication to the new city, which will rise in rings and Russian industrialists ~ath-ered at a banquet at the Bankers' around the old on~ You will give schools, bathhouses, parks, and Club in New York Thursday and, in view of the commercial possi­ athletic fields to the Fascist people who wot·k." bilities of Russia, the meeting of bankers and Russian business men took on unwonted significance. "Absolute secrecy, however, surrounded the proceedings so far as "l\!USSOLINI TO ABOLISH THE SEX ATE A~O CREATE A..~ 'ACaDE!I-fY- OF American newspaper representatives were concerned, but the Rus­ IMMORTALS '-BILL TO THIS E::-iD IS PRESE~TEO TO lTA.LIAN CABINET; WRITERS, SCIENTIS'fS, AlitD ARTISTS WILL COYPOSE THE ACADEYY sian semiofficial news agency was able_ to obtain some of the details, which were forwarded to Moscow and published there. [By tJnited P1·ess] " Though information was refused to the American representative~, as the banquet was declared to be of a private nature, the Asso­ "Ro~IE.-Premier Mussolini has decided to abolish the Italian Senate. "In its place will be created an academy of 'immortals,' similar to ciated Press instructed its Moscow bureau to send back to the that in France. United States the account of the dinner as made public in RussJa. and is thus able to present an outline of the proceedings. "A bill to this end was presented to the cabinet to-day. "'The most significant indication of the ·increasing importance of " Writers, scientists, and artists Vl'ill compose the new academy. soviet-American trade,' says the cabled account from Moscow, ·was a "Representatives of labor, industry, commerce, and agriculture will banquet to-dar (Thursday), at which Reeve Schley, vice president of the . discharge purely technical duties, following passage of. the bill." Chase National Bank, entertained officials of the soviet trading organi­ Now, these remarkable proclamations were not issued until after they zations, together with representatives of the most important American got their $100,000,000, and until after tile Italian commission had been financial and industrial concerns. entertained at a banquet by the bankers of New York; they were not "'Nominally the banquet celebrated the awarding of prizes to Ameri­ issued until after the dictator felt that his debt commissioners had can manufacturers whose automobiles successfully participated in the accomplished everything and the debt was really settled. Then he soviet road endurance tests last summer. Actually, the real signifi­ explains what the real objects and what the real resources of Italy cance of to-day's events greatly exceeded the incidental circumstance. are and what they propose to do in the immediate future. The IJanquet was the first outspoken recognition by Amerian finance and The Brenner Pass is the strategic pass of central Europe, as im­ industry of the importance of sovie-t trade and the staiJility of the portant to Italy-or to any nation which holds it-as Gibraltar ever soviet government. was to England, for the commencement of future military exploits, as u' CONFIDENCE IN RUSSIA the dictator so clearly expresses it here. If that be the object, the commencement of the period may not be far otr when the dictator, · "'The Chase National Bank, which showed the earliest initiative in excited by the temporary power he possesses, and viewing the centuries financing the soviet textile syndicate's purchases of American cotton, of history back of his people, may attempt some foolish military ex­ and which largely and profitably participated in these and other soviet ploit through the Brenner Pass which may imperil the safety of all commerce undertakings in the last two years, took this occasion to Europe. express confidence in soviet trading institutions and thus increase the confidence of American manufacturers, in this way promoting inct·eased The CHAIRMAN. I suppose, Mr. RAINEY, you are also acquainted with trade with the . the fact that some very prominent military authorities do not regard " ' Mr. Schley, wh·o presided, spoke of the economic pt·ogress of the the Brenner Pass as of any strategic importance 1 soviet union in the last two years in overcoming the effects of war, Mr. RAINEY. Well, I do not so understand it. blockade, and famine. He described a visit which he made to the The CHAIRMAN. Well, that is the fact. soviet union last summer, when he was greatly impressed with the Mr. RAINEY. On the contrary, the authorities that I read insist that general order, and especially the excellent condition of the railways. It is the strategic point of central Europe, and Italy so understands it. Charles M. Schwab, chairman of the board of directors of the Beth­ And in the debt settlement she, above all things, demanded the Aus­ lehem Steel Corporation, expressed satisfaction over the fact that trian Tyrol, on both sides of the Brenner Pass, in order that she might Russia was again trading with America. have the Brenner Pass. She has got it now. Whether it is, in the " ' Mr. Schwab said that the Bethlehem Steel Corporation had sold opinion of some strategists, as important as he thinks it is, there is no much steel to Russia before the war, and hoped to sell more in the question as to the importance which be ascribes to it ; nor as to the future. American manufacturers, he declared, welcomed business with danger that, with American funds, exacted from savings of American the soviet trading organizations, and he expressed confidence that the citizens, he may undertake, as he says he is going to do, to extend the economic and commercial relations between the United States and temporal power of Italy th.rougbout central Europe, thereby endanger­ Russia would develop greatly despite all obstacles. ing and imperiling these very savings of ours, which are being invested "'Paul Zlev, president of the Amtorg Trading Corporation (the in numerous German cities and throughout Czechoslovakia and the soviet purchasing agency at New York), spoke with reference to the other sections and countries which were so recently our allies, and in recent ·development of soviet-American commerce and · described the German7 itself. ·future posslblllties of increased trade~ 1998 CONGRESSIONAD RECORD-HOUSE JANUARY 13 " • Prizes were awarded to seven manufllcturers whose automobiles, War Debt Commission; Luigi Podesta, Banca D'Itnlia; Gino Ravenna; entered through the Amtorg Trading Corporation, successfully par· Charles S. Sargent, of Kidder, Peabody & Co. ; E. H. H. Simmons, ticipated in the road tests. president New York Stock Exchange; Lloyd W. Smith, of Harris, " • These speeches were listened to attentively by 35 guests, represent­ Forbes & Co. ; Benjamin Strong, governor Federal Re erve Bank ; ing finance and industry, including William Ewing, member of J. P. Myron C. Taylor; .A·rthur M. Anderson, J. P. Morgan Co.; Albert A. Morgan & Co. ; Charles H. Sabh:i, chairman of the Guaranty Trust Co. ; Tilney, president Bankers Trust Co.; Albert H. Wiggin, president Arthur Loasby, president of the Equitable Trust Co. ; Clarence Dillon, Chase National Bank; and William Woodward, president Hanover of Dillon-Read Co., Morgan's chief competitor in foreign investments; National Ban.k.'' Charles M. Schwab, chairman of the Bethlehem Steel Corporation; And I want to call attention in this connection to the fact that the Ricilard T. Harris, president of the New York · Cotton Exchange, repre­ trade exchanges between Italy and Soviet Russia are now almost at sentatives of automobile manufacturers and other important industries, a pre-war ratio, the balance being, of cour e, hngely in favor ot such as t he Remington Typewriter Co. and the Chicago Pneumatic Italy. They have now their trade agreements with Russia. And Tool Co. and the soviet organizations, Amtorg Trading Corporation, here are the bankers of New York- proposing now-because that is '.fextile Syndicate, State Bank of Russia, and the central cooperative what these banquets and these consultations mean-proposing now society. to invest the savings of this country, not only in the country which is "• The sign ificant feature of this unprecedented meeting was its com­ controlled by the dictatorship of one man but also in another country pkte secrecy. 'The representatives of the soviet government and the controlled by the dictatorship of the proletariat. I print these in American fiu::tncial and commercial institutions meeting at the "Bank­ order to show these dangers and pitfalls which lie just ahead of us. et·s· Club" in the mid. t of the New York financial district, revealed And now I want to say, in view of the fact that the people of the a i.Jbolutely no thing to the American press-not because the newspapers "United States do not want to be made a party, if they find out about !1ii.l not desire to publish but because the participants agreed that it, to the perpetuation in Italy of a tyranny as dominant and as out­ rageous as the tyranny of this dictator, that we ought to walt until ~ ucb an important occasion would be more effective if not published in the .American press. we find out what is going to happen in Italy and what kind of gov­ ernment they are gotng to have. " ' 'J'he ~'a ss Telegraph agency of the Soviet Union was the only These great leaders, whose names I pronounced a while ago-not agen cy pe rmitted to pul>lish this news. Such profound secrecy greatly one of them is in Italy now. They are all exiles. They are all in increased its signifi cance, all the guests thereby realizing that this France. There are a million Italians in France; and a great many of banquet was a serious meeting of important elements, not intended for them are exiles from Italy. I do not know bow many Italians there mPre newspaper advertisement, as many similar affairs. are in this country, but the Italian Tote has been estimated at all "·Despite the secrecy, the news will spread far among .American the way from 4,000,000 up ; I do not know how many there are. business men, who will certainly be impressed by such a significant But the Italians here in this country are the working class ot Italians. meeting.' They are the Italians who i! they were in Italy would belong to the u UNIMPORTANT, SAYS SCHLEY unions and who believe in organized labor. They are the followers "Mr. Schley said to-night that the importance of the meeting had been of the Garibaldi family. They believe in tbe Garibaldis, who stand exagge1·ated and that the only reason American newspaper representa­ always for liberty. tives were not allowed to attend was because it was not believed that There is one member of the Garibaldi family at tbe present time the affair was of sutlicient importance. who is of military age ; and in every crisis in the history of Italy in " • It was just a business luncheon given to a couple of Russian th.e last 60 years there bas always been a Garibaldi to lead the masses organizations doing business in this country,' he said. 'It was no who ·objected to tyranny. This particular Garibaldi, who has a different from other luncheons of the sort held every day of the week: reputntion already as a mllitary leader, is not in Italy. He does not " When Mr. Schley was asked wby news of the banquet was consid­ dare to live in Italy. He is probably one of these exiles. He is in ered unimportant to American newspapers but important enough to France at the present time, engaged, it is believed, in organizing Russia to allow a re,port to be cabled there, he said : • It might be secretly another Garibaldi legion to march upon the dictator of Italy important to Russia and at the same time be of little importance and restore freedom of government over there. here.' Now, with that sort of a crisis threatening, a dictator who rules only by murder and ootrages, in this century of this world, following "No important matters affecting Russian trade with this country were the World War, which we thought would bring peace and Uberty discussed, Mr. Schley said, the meeting being held only for the pur­ upon this globe-is this a safe time to make these loans? Is this a pose of awarding prizes to American automobile manufacturers. proper time in the economic history of Italy to determine what the "Mr. Ziev, when asked to comment, said, 'As I was only a guest. I am condition of Italy is goini to be 80 years, or 50 years, or 60 years naturally not in a position to say anything. Any statement must come from now? from Mr. Schley.'" These payments that the Italians are to make to start with are And immediately after that I want to print in the record the ac­ ridiculously low. The payments they are to make 50 years from count which appears in one of these trade journals, which I will giTe to now, and even 40 years from now, are ridiculously high ; and they the reporter, of another banquet given to the Italian commission which can not make them. A.nd therefore this settlement made now with came over here, immediately after the settlement of theix difficulties, Italy at the economic ebb which presents itself now, is a settiement by the same identical banking interests. which is untimely made. It may be repudiated by the government (The article referred to is as follows:) which will succeed the Mussolini r~gime. [The Commercial and Financial Chronicle] Inasmuch as we are going to get nothing at all from them for practi· cally 5 years, and not much for 10 years, would it not be a good plan "THOMAS W. LAMONT, OF J .. P. MORGAN & Co., ENTERTAINS ITALIAN . for this Congress, before it cancels this debt-and that is what this DEBT COMMISSION means-to postpone these interest adjustments and probably princ1pal "NEW YORK, Not:ember 21, 1925. adjustments until we have a government over there which approaches "Count Volpi, Minister of Finance of Italy and chairman of the more clc>arly American ideals, with which we can treat on a common Royal Italian War Debt Commission, and his associates on the com· basis, and at that time determine upon the capacity to pay, what Italy mission were the guests of honor at a luncheon given at the Recess shall pay, and how much she shall pay each year? Club on Wednesday by Thomas W. Lamont, of J. P. Morgan & Co. You have received, you gentlemen on this committee, lrom a source .Among those present were Judge E. H. Gary ; Thomas Cochran, of which you can not deny-you have received, I presume, all of you, J. P. Morgan & Co.; Mortimer L. Schiff, of Kuhn, Loeb & Co.; Dr. this protest of the Freemasons of the United States against the mur­ Mario Alberti, Italian War Debt Commission ; James S. Alexander, ders and the outrages being perpetrated by the Mussolini government president National Bank of Commerce; Frederick W. Allen, of Lee upon all the secret lodges of Italy, no matter what those secret lodges Higginson & Co. ; Clarence Dillon, of Dillon, Read & Co. ; George may be. That protest comes tD us from one of the great organizations F. Baker, jr., vice chairman First National Bank; George Whitney, in this country; and calls attention to the fact that lodge rooms have ot J. P. Morgan & Co. ;- H. B. Baker, vice president National City Co. ; · been invaded, their paraphernalia destroyed, and that the Italian Prof. Alberto Beneduce; Mortimer N. Buckner, chairman New York dictator bas even resorted to murder when be suppressed the meetings Trust Co. ; Commissioner Gino Buti, Italian War Debt Commission ; of the lodges. Lewis J. Clarke, president American Exchange-Pacific National Bank; From the time l'tlussolini assumed his dictatorship until November, Paul D. Cravath; George W. Davison, president Central Union T111st 1923, tbere were over 1,241 cases of outrages in Italy upon members Co.; Moreau Delano, of Brown Bros. & Co.; Walter Ill. Frcw, presi­ of trade-unions. They were assaulted, taken from their lodge rooms, dent Corn Exchange Bank; John H. Fulton, president National Park taken from their homes, and horribly maimed and beaten, and fre­ Bank of New York; GioTanni Fummi; Count Dlno Grandi, Italian quently murdered, in order to break up the organizations of union War Debt Commission; Charles Hayden, of Hayden, Stone & Co. ; labor in Italy ; and they have succeeded In doing it, until the only Alvin W. Krech, chairman Equitable Trust Co. ; Count Lello Bonin organi~ations of laborers there now are Fascist organizations, which Longare, Italian War Debt Commission; Dr. Albert Pirelli, Italian obey the commands sent out by the dictator. 192G CONGRESSIONAL RECORD-HOUSE 1999 Union labor in this country is assuming more and more an inter­ as Secretary Mellon, and snap at the heels of such men as Presifient national importance. .ftepresentatives or' the American Federation of Coolidge. Labor have already met across the southern boundary of the United "But the point we wish to make is, that radical organizations find States in UexJco, with representatives of labor organizations there. it an easy matter to get their names, and so their id~s, ~efore the The League of Nations recognizes the developing international im­ American people through the columns of newspapers that editorially portance of labor organizations. bitterly fight them." Do you think that, by providing from our savings here a fund over I read an extract from an article by Charles Edward Russell in the there, controlled by this dictator, who is capable of these outrages­ Century Magazine for April, 1925, at page 747, as follows: which no man denies--do you think that you are going to please these " This was the door by which the Fascistl came in. They had been lallor ot·ganizatlons in this country? Do you think you are going to organized immediately after the war as a union of former soldiers, please the secret orders of this country? Do you think you are going like our American Legion and the Service Men's ~ague in England. to please the 4,000,000 or more of Italian workers in this country, Benito JIJussolini was one of their early members. He bad long been who are followers of the Garibaldi family, and of the liberty-loving known in l\filan as a socialist of the extreme, or left wing, being Italian leaders, by projecting through the House of Representatives editor of the Avanti, the furious advocate of the hottest brand of thi cancellation of the Italian debt with its attendant loans to the socialist doctrine. In the war he had b-een a good soldier ; among the Italian dictator? Fascisti, although they seemed to traverse everything be had taught If you do-if the dominant party in this country thinks it is going so long, he soon went into leadership. At that time it was supposed •, to strengthen itself by resorting to these measlll'es and recognizing those that he was a Fascisti to turn fascism to socialism, and this belief sinister forces over there in Italy, I predict that you are going to find was furthered when he appeared in 1919 as the Fascist candidate for that you are mistaken. the chamber, making hls unsuccessful campaign upon the most ad­ There is a complete suppression of the independent press in Italy vanced radical doctrines. He is a public speaker of extraordinary through the dictator's power. Every newspaper and magazine pub­ force and eloquence; it was probably his oratory that gave him lead­ li bed now in Italy suppresses the news and prints only what Uussolini ership. permits to be printed, and there is also a control of the Italian press " To show how little of professed sympathy he had then with the in this country, exercised, not by the Italian dictator, but by his repre­ alarmed investors and bankers, I note that in a speech delivered at sentatives in this country, the great banking interests in New York. Milan on November 11, 1919, a year after the armistice, be declared 'fhe Nuovo Mondo, published in New York City, was until recently a that 'among the cardinal postulates of the Fascisti program are the great labor organ of the Italians in tills country. Not long ago, about reduction of excessive wealth, the confiscation ·Of the excessive profits the time of the inception of the hundred million-dollar Morgan loan to made in the war, and the levying of a heavy impost upon capital.' Italy, this. paper fearlessly commenced to criticize the Mussolini gov­ " When bolshevism burst upon the country in 192D, the Fascisti ernment in Italy. It depended for its existence upon the Italian mer­ in some regions started to do what the government of the long black chants who printed their advertisements in its columns. The Italian coats would not do-started to do it in their own way, without leave, merchants, as well as the Italian laborers, in this country are opposed ­ law, order, direction, or restraint. It was a way _summary and~ to the outrages now being committed by the Italian dictatorship in thorough. At the point of the rifle they drove the communists out or Italy, but these merchants were compelled by the New York bankers, factory or· what else, and sent them scurrying. In the months of from whom they get their financial aid, to notify this great Italian industrial nihilism that followed the Fascisti came to be regarded newspaper that unless the criticism of the l\iussolini government and by the majority of the nation as its only salvQ.tion. It had become the explanations of its operation in its columns of this publication deadly sick of madhouse conditions ; the Fascisti appeared to be salv­ stopped, they would be compelled to withdt·aw their advertisements, ing what was left of Italian civilization. When the strikes came on, and the editorial criticisms were reluctantly stopped at once in the they took upon themselves to do strike duty. The strikers were often columns of this important paper, and this paper dare not now even not communists and had taken no part in the communist delirium. print the news it gets from Italy. It is completely cowed and con­ The Fascisti made no distinction, but pointed the guns at anybody trolled in this way by the banking interests in New York. who refused to work. As a result, a feud began between labor and There is also a suppression of the news in a large section of the Fascism-a feud in which the cooperationists soon had reason to take American press. Recently I made a speech at a tariff convention held part. The Fascisti, under the inspiration of local merchants and here in the city of Washington, at which speeches were made also by others, were busily destroying cooperation. They had adopted as distinguished economists. The subject assigned me was " Our foreign their emblem the black shirt (otherwise they wore generalll' the serv­ debts and the tariff;" Under this subject, I briefly referred to the Ice uniform), and _in a short time it became a sign of trouble every­ proposed Italian debt settlement. My reference to it found its way where. The Italians do not like disorder. If fot· a time the Fascisti into the news column of the New York Commercial. The next day continued to be popular with all classes other than labor and the this paper apologized for printing the news in this column and edi­ cooperatives, it was because they were supposed to offer the only torially announced in effect that the policy of the paper was to sup­ chance to restore peace. press such news as was not in harmony with the position of the bankers " From the beginning the proceedings of the Fascisti clans had in New York who were negotiating these loans. In this connection drawn the admiring notice of the financing and employing classes. and at this point I shall print in this address the editorial comment Th~ overflowing measure or their disgust with the Orlandos, the Nittis, as to my speech, which appeared .in the Kew York Commercial on the the Giolittis, and the rest of the black-coat contingent was the meas­ 31st day of December, 1925. ure of theit· delight with the new movement and its leader. Here The article referred to is as follows : were the men that would do the thing the government would not do, which was the one thing conservatism felt was indispensable to Italy's " PUTTI~G IT OYER restoration. All Mussolini's previous errors as a socialist and the "'fbe ease with which organizations seeking to advance dangerous advocate of a capital levy were erased by his new enthusiasm to sup­ ideas get 'their matter in public print is, to some, astonishing, but tQ press proletarian revolt, and there can be no doubt that some bargain those who sit in the newspaper offices it is not astonishing. The New was struck or understanding reached by which the conservatives York Commercial bas a list of around 200 organizations that are, di­ solidified back of Mussolini on condition that certain things should rectly or indirectly, connected with either the socialist or communist be done also to the tt·ade:unions and the cooperatives. movement. The great majority of these organizations are being di­ "As a result of this arrangement the Fascisti, went through the rected by clever men and women, men and women who know how to motions of ' Marching upon Rome,' and the weak-kneed King was com­ · implant their ideas and bow to get their propaganda in print, and some- pelled, on October 29, 1922, to dismiss the existing Government and , times they get it in the Commercial, notwithstanding the care exercised. make Mussolini Prime Minist!:'r. Congressman RAINEY, of Illinois, speaking before the People's Recon­ "One of his first acts was to notify the Chamber of Deputies that, struction League the other night, attacked the debt settlement with on pain of being dissolved and abollshed, it was to be thenceforth a Italy. 'I'he People's Reconstruction League is the Washington lobby rubber stamp in his hands ; one of the next to order the passage of a and propaganda organization for the Farmer-Labor Party. The law that made elections a farce and insured a Fascistl majority, no Farmer-Labor Party in the last election was clearly in control of the matter what the will of the country. (!Ommunists. At least communist leaders boasted they were in con­ "The nature of the compact by which Mussolini was elevated to the trol, and the evidence seems to bear them out in the boast. The forces quarterdeck was soon plain enough. There is a universal belief in back of the movement to prevent the debt settlement with Italy are this country and in England that as soon as be took C(}mmand the the forces which favor communism and, because fascism is the antidote, waltzing ship of state settled down, disorder ceased, the supremacy of are doing what they can to create the wrong impression as to the situa­ law was upheld, and all things began to go well. Marvelous are the tion in Italy. powers of propaganda. No doubt the reactionary influences every­ - "Congressman RAI~EY, speaking before an organization notoriously where in the W(}rld wished these Impressions to prevail and took the radical, pt·obably thought he was making a little Democratic thunder. necessary steps to produce and spread them ; but they are mere fiction. It is time Democratic leaders took some of their noisy boys in tow, Instead of order following upon the wake of the Fascisti administra· and informed them the way to advance the Democratic Party ls to do tion, disorder greatly multiplied, only it was now the labor unions and somethin~ constructive, not to bark at men who are constructive, such the cooperative societiers that suffered instead of the property owners CON.GRESSIONAL RECORD-HOUSE JANUARY 13 an'tl 11le factory lrivestors. This and the fact' that the lawlessness wns the Fascisti obL'l.ined the advantage and broke up som~ unions and more lawles were the only differences. The undisguised purpose of weakened others. One of their objects bad been to abolish the shop the new Govei.·nment was to· destroy the labor unions and break down committees or councils that bad been established in many factories. cooperation. one feared and hated by tlie employing class, the other At Turin they succeeded in ousting these committees from two of feared and bated by retail business. That is to say, the employing the largest factories. Some months of comparative quiet ensued. classes in Italy merely took their places with the employing classes in Then some of the workers deemed that the time had come to revive America and England in the new warfare upon organized labor, but their unions. When they attempted to meet, they were warned by used the rifle anti the torch instead of the open shop and the lockout the police against any such action. Local Fascist!, having heard :u Instead of peace, there now came upon Italy a reign of terror of the intention, threatened the workers with death if they came to that bas endured ever since·. While Yussolini was winning the support the meeting. One of the workers, an electrician named Dallora, of the extreme nationalists and cham·inists by bombarding Corfu having been beaten by the Fascist!, who burned most of the furniture and in the manner of Furioso insisting upon the greatness of Italy, in his bouse, two newspaper men ventured to mention the outrage. he was abolishing the Ia t remnants of civil liberty and instituting Thereupon Da1lora and his family were subjected to such .persecution a Napoleonic despotism. He virtually eliminate(! parliam•ent from that for their sake he signed a statement exonerating the Fascisti. public affairs · and instituted a system of government by decree having " On July 9, 1923, at the town of Rho, near Milan, the cooperativ~ all the validity of laws, whereto his own name and that of the King society was holding a meeting at its hall for the purpose of reorganiz­ appeared side by side as joint rulers of the state. The black-shirt ing the textile workers' union, which had been broken up some months brigades, who ruthle sly beat up or shot at anybody that oppos.ed before. The Facisti, assisted by the local carabinieri, battered their ot' criticized the Government, and the enthusiastic support of the way into the hall and dispersed the meeting. Two of the most active g1·eat financial and business interests had clothed him with extra­ spirits, in attempting the reorganization, the brothers Orlando and ordinary power. He filled important public offices with his own friends, Alfonso Morosini, were taken out and beaten with · clubs. The others intimates, or creatures; established a censorship over the press .and were warned tbat no union would be tolerated in Rho. The property over all the news that was sent from· Italy, and, finally, by a decree of the cooperative society was then destroyed, and the society com­ of' July, 1924, in almost so many words, abolished· even nominal pelled to close its store. libflrty of opinion. ' " Th~ contract of the mirror makers' union having expired, a new ·'As to the degree of peace that he really established, I cite from contract was negotiated with the employers. Some of these refused the records. From the time ::Uussolini took office, to' and including to accept its terms, and in these shops a strike followed. On th.:! November, 1923, a period of 13 montl:fs, there occurred in Italy 1,241 evening of the thil·d day of the strike the chief of pollee summoned cases of outrage against trade-unions and cooperative societies, the officers of the union to his office. They found there awai ing them ranging from assault and battery to murder, riot, and ar on, occur­ the secretary of the local Fascisti syndicate. In the presenc·e of the ring a follows : chief of pollee, this functionary told the officers three times (for t~9 November, 1922 ------H sake of emphasis) that the strike would have to be stopped or he would IJecember, 1922 ------..:-- 171 resort to extreme measures to stop it. The chief of police then added January, 1923 ------.:..------­ 120 a menace of his own, and the terrified officers hastened away to advise FPbruary. 1923 ------89 82 the men to go back to work. ~~;~~·1~~~~~~~~~~~~~~2~~~~~~~======::::::::::::::::::: 93 "The campaign of violence was of the length and breadth of Ita1.y 12!) itself; no corner escaped. The majority of the labor unions were 69 ~{ci~. i~~~-~~~~~~:~::~:~~~==~===~~=~===~===~:=·~~=~==~==== 85 either destroyed, crippled, or terrorized into inaction. About 450 co­ i~~i~st~;~23-::~:::~~::::::::~:::::::::::::::::::::::::::: 112 operative societies were broken up or hamstrung. The building and September. 1923------77 ship repairing cooperatives of were compelled to abandon con­ 0ctober, 1923------.:..------80 NoYember, 1923 ___ .:.------.------60 tracts they had undertaken. Even cooperative selling was sometimes discontinued. Total------1,241 " Ml;le>Solini had announced that the Fascisti would have their own "The worst exploits of the Ku Klux after the American Civil War labor unions and their own cooperative societies. These pledges seem wel'e surpassed by some of these astounding reversions to savagei·y. to have been made in the spirit of an American political party's plat­ In hundreds of towns and cities the headquarters of the unions were form ; neither has materialized. The Fascist! labor union has never wrecked, bul'netl, or looted, the officers taken from their beds at night, cau ed any employer a moment's uneasiness. As for the Fascisti beaten, horribly maltreated, and then banished from the locality on cooperatives, you will see at :llllan a huge building placarded to the pain of death. The police lookention to the deficits in the national months in office, a band of Fascist! seized the headquarters of the cen­ budget caused by the operation of the railroads, telegraphs, and tele­ tral labor union at Varese and forced the employee to give up the phones, and announced that his Government would proceed at once keys to the building. They then gathered the contents of each room to tran. fer these utilities to private ownership and operation in order and burned them, except the typewriting machines and th~ records of that the losses might be stopped. At this great appl~use arose from membership and dues, which they carried off. They neit raided the the reactionaries of the entire world; the news was hailed as auother headquarters of the textile workers, of the furriers, of the building evidence of the superi~rity of the form of government erected in Italy. trades, of the metal workers, and of the street railroad employees, and Not one of these undertaking>~ has been carried out. A private com­ destroyed all the contents. The secretnry' of the central labo'r union pany had been allowed to build a short line of railroad, but the and the secretary of the build.ing trades council were banished from natiou·s railroaa system remained in national ownership and opera­ the city. The secretary of the fur workers, who bad been many times tion. So remain the telegraph and telephone systems. The street threatened with death, sought safety in flight. railroads of almost every city in Italy continue to be owned and "At Laveno the Fascisti broke into the house of Livio Atioli, secretary operated by the municipalities. Only two steps have been taken look­ of the labor union, beat him, and resorted to a singular form of tor­ ing toward the fulfillment of the program to take the Government out ture to which they were partial everywhere. They forced his mouth of business. Certain companies having been allowed to form in expec­ open and poured down his throat a violent nnd dangerous purgative. tation of an owner hip they will never realize have sold dubious stocks, The next day the carabinieri, or rural police, made two arrests· for and a corporation similar to one of our dis~a1·ded e.A"'Jress compani('S this outrage. That night a band of Fascisti broke into the jail, com­ bus been allowed to do a part of the hauling of the parcel post. pelled the jailer to give up his keys, and liberated their comrades. "Similarly, the widespread belief that the new order bas been of There were no more arrests. great benefit to the nation's financial health is chiefly manufactured. ~·At Como, on July 26, when Mussolini had been nine months in office, In April, 1922, when Mussolini was a private citizen, the lira was Fasclsti broke into the office of the labor union, de troyed furniture counted at 18.7 to the dollar, and in November, 1923, a year after and fittings valued at 40,000 lire, and carried off the records and the the Fascisti coup, it was at 23.1 to the dollar. In April, 1922, the typewriting machines. This raid destroyed the labor movement in Como, paper lira in New York was reckoned on the basis of 359 to 100 gold as afterwards landlords in the town, under threats from the Fascisti, lira and in November, 1923, at 445. The national debt bad not been dared not rent a meeting place to any union. When members of the reduced but increased. On September 30, 1922, tbe internal debt of labor organizations complained to the local commandant of the cara­ Italy was 81,000,000,000 lire, and on September 30, 1923, it was binieri, he advised them to join the Fascisti association, as otherwise 85,000,000,000. The external debt had been 21,800,000,000 lire and they would have no ecurity from attack. had become 22,138,000,000. Unemployment had not been bettel'ed. "Turin was formerly a stronghold of the unions. In December, The average monthly total of unemployed workingmen was 143,883 1922, bloody battles took place in the streets between union members in 1920; for eight months of 1923 it was 261,494. Emigration in the and Fasclsti who were trying to oust' them from their quarters or meantime had more than doubled. drive them from the city. These thlngs are still referred to through­ "In one particular the world's impressions about the dictatorship out industrial Italy as the 'massacres of December.' In the end ha>e been justified. It bas much diminished the number of strikes; 1926 CONGRESSIONAL RECOR,D-HOUSE 2001 therefore it has pleased the employing interests and to that extent personal integrity, Mussolini had been extremely careless or extremely fortified ·industrial peace. But it has reduced the strike totals by unfortunate in the men that be allowf>d to surround him. Some of destroying labor unions and by thus leaving the workingman wholly them seemed to be bent upon reaping fortunes overnight by what­ at the mercy of the employer. We can recognize an old story: 'He soever means. Charges of monstrous graft attended important actions. of makes a solitude, and calls it peace.' " tbe Government. The State owned an iron mine, almost the only iron " Mussolini's new election law of July 21, 1923, sounds like a· bit of mine in Italy, and deemed to be indi ·pensable to the nation's safety in grossly cynical humor. It makes no effort to conceal the purpose to time of war. It was sold to private exploiters, and Italy resounded provide the Government with a sale working majority, and that it with rumors of corruption attending the sale. The gambling houses achieves by making elections in Italy a fit subject tor a stage fat·ce. reopened; and by common report became so many rich mines of graft The law divides the country into 15 electoral districts, each with a. for local and national officet·s. Persons.that .were supposed to be influ­ fixed number of seats in the Chamber of Deputies. It then adds the ential with the Government made merchandise of their power, excel­ astonishing provision that in each of these districts two-thirds of such lent business if one may judge by one of this gt·oup who, being arrested seats shall be given to the political party that is largest in the nation. for a serious offense, was found to have on his person more than a One would think it cheaper and simpler to pass a law abolishing all million lire for which he could give no satisfactory accounting. elections and vesting unlimited power forever in the Fascisti govern­ " It was this condition, and only this, that brought about the hideous ment. To show how the law works in· practice, I will mention one murder of Matteoti, the full accounts of which have not been and could electot·al district, that of . It is strongly anti-Fascisti. At not be printed. He was a Socialist member of the chamber, a public . the election of 1921 its vote was divided as follows : servant of the highest character and faultless recot'd. For some time Supporters of the Government------261, 332 it had been told · among the grafting fratemity, whose spies were Socialist PartY------410,305 everywhere, that he had been gathering and verifying evidence of a 3 general and great corruption, .and this he intf>nded to lay before the ~g~~~ntitari1'artY=====:::=:::::=:::::::::::::::::::::::: ~~; g~g chamber and before Italy. Men of poweT were involved. He knew "Yet under the new election law the Government would have 47 well that his life was in danger·; he had been threatened many times, seats and the Socialist Party, with a total vote 159,000 greater, would and once had been beaten by the thugs of the grafters. Early in the have but 13 seats. spring he bad been in London, where to intimate associates in the labor "Although they have never attained to mot·e than an inadequate, movement he had confided the danger in which he stood. It was halting democracy in their form of government, there are no people in heroism of a kind to which the ·world has paid too little attention the world of a stronger democratic faith than the Italians. The story when he went home and resolutely took up tb~ investigations that k'd of a wonderful and unsurpassed struggle of 50 years for Italian freedom straight to his death. is their deat·est possession. In every particular the new law trampled " His murder tnl'Ded the white light upon the foul mess that luld upon and insulted these sacred memories. Even in a chamber ter­ been gathering for a year and a half in Rome; despite censorship and rorized by Fascist! guns such a. measure was not passed without diffi­ terrorism, the public began to learn the truth about its Government, culty. The committee to which it was referred adopted it by only 10 which visibll' tottered undet· the blow. Armed Fascisti were hurriedly votes to 8, the slender majority showing signs of extreme nervousness called into Rome until they filled every square. With a hardihood and the minority in its report scarifying the whole thing as the wreck­ that strangely escaped the rebuke of intellectual Europe, the Govern­ ing of free government. In the chamber it passed by 232 votes to 123, ment chose to quarter its cavalry in the Colosseum, and in two days and the next day the 'Popolo d'Italia,' the principal Fascisti organ, that noblest monument of antiquity in all Italy was a huge reeking remarked most significantly that • by its vote on the electoral reform stable and latrine, with indescribable accompaniments For the next bill the chamber has acquired the right of existence and may continue week Rome looked like the descriptions of after Napoleon Ill through another season,' which curtly tells the whole story. Vote as bad overthrown the second republic-troops everywhere and police you are told or be dissolved.· agents sneaking in every street. What might have happened but for "The first testing of this preposterous arrangement bore out all that the overawing guns, nobody can say, for not in our times has Italy has been said against it. By intimidation, the threats of the black­ been so stirred. By suppressing newspapers, by abolishing assemblies, shirt militla, the use of evet·y resource of the Government by breaking and by another degree of warning and muzzling, the fierce comment up opposition meetings, covering up opposititon posters, and controlling that went on among the people was kept from the print, but no one the press, the Fascist! administration was able to show an apparent could go about the country in those days without perceiving clearly majority in the nation, whereupon two-thirds of the seats in the that the end of the dictatorship was not far off. Manifestly, the over­ chamber were allotted to its candidates, although it was evident that whelming majority of the nation was against- it. Only one question in any fair election it could hardly have won a third. seemed debatable; that was whether because of the wrecking of the "A great change had come over the attitude of the general public nation's election machinery the overturning of this governmental toward the Fascisti. At the beginning, faith in them as the nation's anomaly could be bad without civil war. soldiers and faith in :Mussolini as an unselfish patriot were common, so " So plain was the menace that even l\Iussolini awoke from the dream that it could easily be said that the new Government had the support of -permanent rule and began to talk about resigning. It was well of a majority of the people. But this support fell rapidly away as tb~ enough understood in Rome that the influences that stiffened his real nature of the innovations began to be seen. The substitution of waning spirit were the banks and the great business corporations. The government by decrees for government by law alarmed and repelled the general feeling against him when I was in Italy was so great that one thinking part of the nation. Some of these decrees wer:e of a nature to would not be astonished at anything that might happen to him. Jlor alarm anybody that had the least inclining toward free government. be had committed, or allowed his Government to commit, what is in One, for instance, regulating (or muzzling) the press was discovered to the eyes of Italy the blackest of all offenses-he had traversed the spirit have been copied so closely from a decree of Napoleon III's, after the of the Italian revolution. He had betrayed the tradition of l\Iazzini. coup d'etat of 1852, as to induce a startling parallel. The heel of the The Italian masses had accepted him as an instrument to restore order new Government descended more and more upon the newspapeL'S; there and rescue the national prestige; they never thought of him as a de­ was left in all Italy hardly a publication that dared so much as to stroyer of the freedom for which Italian patriots had paid a memorable intimate dissent. price. Like many othet· men suddenly raised to such a position, he had " Companies of Fascisti took into their own hands the punishment of confused the exigencies of a moment with his own per ·onal greatness­ tho e who, despite warnings, ventured to oft'er criticism. A revered confused them to such an extent that he had forgotten how to read the professor of Florence, a man noted for his attainments and worth, went minds of his countrymen. Instead of the liberty and democracy upan to Switzerland to spend his vacation. He was interviewed by a Swiss which they are unalterably fixed, he had undertaken to gh·e them newspaper about affairs in Italy and expressed unfavorable opinions of mushy phrases concerning the substitution of duties for rights, what­ the new regime. This attracted the attention of a Swiss magazine, ever that may mean. lle could not have brought such wares to n wo1·se which secured from him an article describing in measured terms the market. Now that the people understand that behind his orotund changes that had taken place in his country. When he returned to his phrase making is despotiiim, corrupt and cruel, no one that knows Italy home a gang of Fascist! broke into hls house and beat him so severely as it is would insure for six months the continued existence of his in­ that he spent many weeks in a hospital and has never fully t•ecovered. congruous experiment, despite his jug-handled election laws. his muz­ In Milan the Fascisti broke into the office of the ' Corriera della Sera,' zling decrees, his Fascisti janiezaries, and the vast power of the reac­ probably the best known newspaper in Italy, and ordered the editor to tionary press to which he owes his place. follow a certain course . on a certain subject. The editor, Senator Al­ "All of which seems to show that black is not white, water does not bertini, scornfully refused to accept instructions from any such source. run uphill, evolution does not go backward, the wisdom of the ages The Fascisti then notified him that his office would be wrecked and he has not been bought in vain, the laws of nature have not been re­ would be killed ; but when he stood up and invited them to begin both versed or suspended, autocracy is still the foe of mankind, democracy operations at once, they left and wrecked the office ot another news­ is still the way of progress, in Italy it is true, as everywhere else.'' papel' as a warning. According to the Atlantic Monthly, James Murphy for 15 years " One thing that hastened the ebb of public confidence in the Facisti has been engaged in the study of Italian questions. He was during was the gradual spread of reports that the Government had become the wat' the director in London of the Italian press propaganda !Jy rotten with graft. It is likely that Russia under the Czars never appointment of the Italian Government. When the Fascists came knew anything worse than some of these stories. Of unimpeachable in power under Mussoiini, he went back to Italy as a correspondent 2002 CONGRESS! ON AL RECORD-HOUSE JANUARY 13 of t~ British press, and be contributed articles to the leading London chamber criticizing the ways of the · Fascist government, and at the reviews. Because of his criticisms of the Mussollni government, break-up of the sitting Mussolini openly threatened to have him pun­ especially in regard to finances, in his articles, his position in Italy ished. The assault followed almost immediately. Misuri bas declared was made so unpleasant that be was compelled to leave. He bad in the press (II Popolo, Dec. 21, 1924) that Mussolini gave orders reve:.tled in his articles the true conditions in Italy. He is now prac­ for the assault, and nobody bas ever contradicted this statement. tically excluded from Italy, but he bas contributed a recent illumi­ " The Misuri incident may at first sight seem a rather stale topic nating article on the subject of the Mussolinl government, whlch of discussion, but I have recalled it here for a special purpose. I appears in the Atlantic Monthly for December, 1925. I reproduce it wish to alter the angle of vision from which it bas hitherto bee.n now here as a part of my speech and as a part 'of these hearings. looked at in the foreign press, and, as· a consequence, to alter the The article is as follows : angle of vision from which all such crimes ba"e been looked at. The " ITALIAN TYRANNY-AN ANTIFASCIST VIEW Misuri incident is a definite landmark. that probably marks the first official operation of the cbeka in Its official functioning as a normal (By James Murphy) organ of government. We can never hope to understand the present " I. Three years ago I came to Italy to follow the fortunes o.f state of affairs in Italy If we continue to attribute such incidents as Fascism, which was then at the zenith of its popularity and power. the a.ttacks on Misuri, Amendola, Forni, etc., to the general spirit of The land was a thrill with hope and faith in the movement. . That violence that bas been characteristic of Fascism as a popular move­ faith amounted almost to a definite vision of the new dispensation of ment since its foundation. These incidents, and darker crimes of peace and prosperity that Fascism was to usher in. Everybody was which we shall speak later, have no connection with Fascism as a singing or humming or whistling Giovinezza. Even the wheels of the popular movement. There is overwhelming evidence to sbow that they Pullman seemed to take up the triumphant strains and chant them are the otlicial acts of the official cbeka. Therefore they must not down the ringing grooves of the long way from Modane to Turin, to be confounded with the more or less sporadtc outbursts of violence Genoa, to Pisa, and to Rome. Through . some mysterious operation that appear !rom time to time throughout the country, mainly due to of mass psychology 1, too, felt myself seized by the same emotion as I local animosities or to the clash of local personal interests. · crossed the Alps and passed into the land of sunshine. When I ar­ "An understanding of what the cbeka means, bow it was founded, rived in the Eternal City I found all my old friends full of faith and and how it functions, is a necessary preliminary to any honest study colrlidence in the destinies of the new r{!gime. Fascism was the sun of the Fascist regime. The story of how the cheka was definitely of the political future. True to her historical tmditions, Italy had established and organized is told in an affidavit drawn up by Signor once again come to the assistance of Europe in its hour of agony and Finzi, Undersecretary at the Ministry of the Interior. He penned disaster. She bad discovered a new political formula which -would his document immediately after the Matteottl murder, when he had solve the riddle that had puzzled the brains of European statesmen reason to fear that be was about to be made a scapegoat; be laid ever since the camp fires had been quenched in 1918. the document before three gentlemen who were in close touch with the . " Delusion. There is not a sadder or more sordid chapter in the mod­ leaders of the opposition. The whole story is authoritatively told in ern history of Europe. No government in recent times has had such the indictment drawn up against General De Bono and laid before the a golden opportunity as did that of Signor Mussolini. In No~mber, Senate by Doctor Donati, editor of the Populist organ, II Popolo. 1922, he bad at his back the whole of Italy and the active sympathy Last June the grand jury of the Senate gave its decision and failed of neighboring nations. Representatives from all the great constitu­ to find a true bill against De Bono. As the matter is no longer sub tional parties-Liberals and Populists and Democrats-joined his judice, we may cite Donati's indictment as a piece of historical evidence cabinet. The press of these parties gave loyal and generous support. throwing a welcome light on some dark patches of current Itnlian Famous statesmen of the old r~gime, such as Giolitti and Salandra history. and Orlando, lent the aid of their political ability and experience. The " In his solemn accusation, Doctor Donati writes of the cheka as Vatican sent an order to the bishops all over the country to help the follows: new Government. Even. the Socialists did not stand in the way, for "'The criminal association-or the cbeka, as tt is more commonly leaders like Turati and Treves and D' Aragona expre sly adopted the called-bound together under a pact of mutual common action in policy of giving Fascism a fair chance to carry out its program of crime the highest leaders of Fascism (Rossi, Marinelli, etc.), the reconstruction and restoration. professional assassins (Dumini, Volpi, etc.), and the nonofficial coad­ " What is the state of affairs to-day? Not a single non-Fascist states­ jutors ( Corriere Italiano, Filippelli, etc.). It bad its headquarters man or political leader is now associated with Mussolini's r~gime. in a Government building, the Viminal, where Senator De Bono also The Liberals and Populists and Democrats have all left the cabinet. bas his dual headquarters as director general of police and chief of the Giolitti and Orlando and Salandra have definitely gone over to the militia. opposition, and the nonparty ministers, General Di:lz and General Di " ' The cbeka, which had already existed in embryonic form, was Giorgio and Admiral Tbaon Di Re>el. have also deserted. All of the endowed with a regular constitution of its own at a meeting held important newspapers of the country have followed suit; not a single in the private residence of the premier in the Via Rasella. Among journal of repute supports Fascism now, except its own subsidized and those present was General De Bono, who had already been appointed controlled party organs. Besides fultilUng the office of premier Mus­ director general of police and first commander ge.neral of the militia. solin! is now also minister of foreign affairs, minister of war, minister There is explicit mention of this meeting in the affidavit drawn up of marine, minister of aviation, and so on. And he is all these at one by Finzi, which was submitted to three gentlemen who can give and the same time, not because he is anxious to hold all power in his evidence as to its contents. These are Signor Schiff Giorgini, Com­ own bands, but primarily and principally because no man of outstanding mendatore Guglielmo Emanuel, head of the Roman office of the ability and public repute can ~e induced to accept a portfolio in the Corriere della Sera, and the journalist Carlo Silvestri. This is Fascist cabinet. When not only respectable passengers but also the also borne out by the evidence which these gentlemen have already legally certified officers abandon their posts and take to boats, leaving given before the Crown prosecutor and confirmed by Finzi himself a self-appointed captain alone on ·the bridge, something must be radi­ in a recent conversation which he had with Silvestri. Therefore, cally wrong with the methods whereby the ship of state is being navi­ the cheka represented a constitutional organ of the Fascist Party and gated. That is the most obvious and striking phase of the Italian the Fascist government. political situation at the present moment. "'As we shall see, the cheka was intrusted with a twofold task: (1) "How bas it come about? What are Its immediate causes? What To spy attentively on all movements of political parties and persons precisely are the mistakes in navigation which have driven the legiti­ opposed to Fascism, also on lukewarm friends and open dissenters; (2) mate officers from the ship? ·To these questions I can now give a fuller to suppress the more dangerous adversaries by violence " in style " and fairer answer than I could have given while I lived in Italy, for I (bastonatura in stile) (bastonadoing in style) is the technical phrase have recently recrossed the Alps in the company of several Italian used in the orders sent out from the headquarters of the national political refugees. militia. It stands for a distinct type of cudgeling, and those who are " II. It is difficult to understand the policy of wrong beadedness intrusted with the task have been specially trained in the barracks, that Mussolini has persistently followed since the early months of 1923. where they have a dummy figure on which they practic-e . The weapon The problem is one of psychopathy rather than of politics. Therefore used is a specially made bludgeon which is rather heavy toward the I shall not risk a discussion of it here. The historical facts are as end and is somewhat flexible. Most of the blows are inflicted on the follows : For the first few months after taking over legislative power lower part of the face, for the purpose of breaking the jawbone and Mussolini showed himself agreeable to the idea of allowing the people thus laying up the victim for months. Care is taken not to fracture of Italy to be governed in a legal and constitutional manner. But be­ the skull, lest death may ensue. This is of great importance when fore the spring of 1923 was far advanced the dictator returned to his such men as Amendola are to be punished, for the murder of another old ideas of violence and accepted the cooperation of some of the baser deputy would bring ruin on Fascism), under an astute system of protec­ satellites with whom he had been associated in Milan. The precise tion which insured the impunity of the assassins anu their paymasters. · period at which these henchmen began to function as official instru­ " 'The executive of the cheka is identical with the general com­ ments of government is not easy to fix. But we shall not be ~ar wrong mand of the militia. The general command recruited the hired if we associate it with the organized attack against the ex-Fascist dep­ assassins, furnished the material and financial means, arranged the uty Misuri on May 29, 1923. Misurl had just made a speech in the plans, gathered information, provided-through the office of the pre- 1926 CONGRESSIONAL RECORD-HOUSE 2003 mier's press agency (Cesare Rossl)-for the "working up" of public were made and the Fascists were left without any leader of recog­ opinion, and made arrangements with the police authorities to guaran­ nized valor or prestige. At the meeting in Florence it was agreed tee the impunity of the direct culprits.' that if the Government should use the army to drive back the l>lack " The cheka was· considered as an instrument • necessary for the shirts, and if a serious encounter should occur between the contend­ Government of the country,' according to the literal expression used ing parties, the Duke of Aosta would intervene. Both the army and by Finzi in his affidavit. To this cheka organization we are to attrib­ the Fascists would obey him ; for he is extremely popular in military ute the well-known acts of violence committed against the deputies circles. His intervention would necessarily involve the abdication Mazzolani, Misuri, Bu1l'oni, Amendola, Forni, •ctriani, Bergamini, of King Victor Emmanuel III and the appointment of the Duke of Nitti, and the journalist Giannini ; also the murder of Father Gio­ Aosta as regent. It is only fair to say that this arrangement was a vanni at Arg~>nta, the murder of the laborer Antonio Piccini, Socialist very general one and was dependent on many eventualities. A mass canclidate in Reggio Emilia, and the murder of James Matteotti. meeting of Fascists was held at Naples on October 24. The Duke of "III. The statements made above have been corroborated by · the Aosta betook himself to Spoleto, within motor drive of Rome. When Rossi and Filippelli memoranda, by the sworn confessions published the Fascists were gathered in the San Carlo Theater at Naples they by numbers of ex-Fascists, by General Balbo's letter dealing with the received the following telegram from Rome: 'Venite. La pappa e Minzoni murder, which was produced in court last year, and by pronta, le mense sono impandite. Non avrete che a sedervi a tavola.' several witnesses who have already given evidence before the crown (Come. The viands are cooked. The meal is sen·ed. You have prosecutor in connection with the forthcoming Matteottl trial. More­ only to take your places at the table.) The meeting broke up and over, though the grand jury of the senate decided that Doctor Donati the march to Rome began. But Mussolini traveled to Milan and there had not supplied sufficient evidence to warrant a true bill being found watched how the fortunes of battle would go. against De Bono as an actual accomplice in the Matteotti murder, "When Premier Facta went to the King, on the morning of Octo­ they did not deny Donati's main thesis. They even admitted the ber 28, for the royal signature to the martial-law decree, Victor existence of the cheka, speaking of it in the text of the judgment Emmanuel III refused to sign. What bad happened on the night of which they gave aB 'the committee which bad been organized against October 27-28 to alter the mind of the King? A group of National-Im­ the enemies of Fascism.' perialists visited him at his family residence on the outskirts of Rome " I have somewhat labored this affair of the cbeka simply because in the early hours of the morning of October 28. They told him that it furnishes the master key to the whole situation in Italy to-day. the Duke of Aosta was at Spoleto with 80,000 armed Fascists, and that By the establishment of the cheka all pretense of constitutional gov­ he intended to seize the crown. They also declared that the army ernment was thrown to the winds. When the whole question of the would not obey the orders of the King. The story had only a small cheka and its crime came before Parliament on the 3d day of last Jan­ foundation in fact, for the Duke had no armed followers at Spoleto. uary following the publication of the Rossi memorandum, Mussolini But the King evidently believed what he had been told, and took a said : ' I declare before the whole Italian people that I accept the drastic course. He refused to sign the martial-law decree. Then he moral, political, and historical responsibility for all that has been opened negotiations with Mussolini through the Milan prefect, and done.' This open and formal acknowledgment caused the secession eventually offered Mussolini the Premiership. The latter saw his of all non-Fascist members from the cabinet, and also the passing opportunity and seized it. The King had made Mussolini, and Muss~ over to the opposition of Salandra, Giolitti, and Orlando. The Fascist lini had saved the King. It is now said that this initial pact is the minister of justice also resigned. The explicit motive for this whole­ principal reason why the King still maintains Mussollni in power. To sale desertion on the part of responsible statesmen was that they my thinking, that is only a part of the explanation. We shall see later could not continue to be associated with a government that had openly that there are other forces at play which are less contingent and mora approved a criminal organization as a normal organ of public rule. fundamental. "Before I come to trace the widespread and intricate ramifications "IV. Let us return to the cheka. The spy system is the most exten­ of the cheka and to explain its operations. I must open a rather sive branch of the organization. At the beginning of the present year lengthy parenthesis in order to disclose certain historical facts which emissaries were appointed to watch over all the state and provincial must be borne in mind if we are to understand how such a regime and municipal bureaucracies throughout the country. Their business is comes to be tolerated by a monarchy which has sworn to uphold the to report on the state of mind of the employees. If an unfortu­ Italian constitution. If statesmen like Giolitti and Orlando and nate civil servant, for instance, should express views unfavorable t() Salandra could not be associated with Mussolini, because of his Fascism, he is at onee reported to headquarters. Sometimes an order nonconstitutional methods and his open acknowledgment of crime will be sent forthwith, transferring him to some distant part of the as an instrument of government, why did . not the King immediately country. If he happens to be a family man he is ruined; for it call for his resignation? All constitutionalists hold that it was the would be impossible for him to think o! transferring house and home King's sworn duty to do so. N<>t only does Victor · Emanuel not on the miserable salary which a civil servant receives. Obviouslv the bow to this opinion, but he has recently made it plain on more than Government now finds that this system of persecution is not sufficiently one occasion that Mussolini enjoys the favor and confidence of his drastic. Therefore it has introduced a new law, which declares that sovereign. What is the explanation? I repeat the current explana­ all public functionaries may be dismissed on a notice of 24 hours if tion that is given in the inner political circles of Italy. I can vouch their conduct is such as to create the susp1c10n that they are not tor the truth of the historical facts as stated; but I do not wish to enthusiastic supporters of the r~gime. This law extends to magis­ risk an opinion as to whether these facts adequately explain the present trates and judges. attitude of King Victor Emanuel III. "A system of es~lonage is set up also in the offlces of large con· "We must go back to the episode of the 'March on Rome/ The cerns which are not under Government control, especially banks and Fascist propagandists usually dress up that event in military trappings joint-stock companies, and large corporations. Negotiations passing that outrival those of Napoleon's grand army on the road to Moscow. between the banks and trading concerns are reported to headquarters. Mussolini bas recently got into the habit of perorating about the If the trading concern in question happens to be outside the ring of 3,000 dead that they left by the ·wayside. Contemporary historical Fascist interests the bank is at once asked not to extend financial research, howev-er, bas definitely established the fact that one boy suc­ facilities. A.nd the bank can not now very well refuse; because, accord· cumbed to the fatigue of the march-that is the full casualty list of ing to the new degrees passed since Signor Volpi became Finance Minis­ the great Fascist anabasis. The propagandists also talk of the ter, the banks are practically under the thumb of the ministry of 300,000 armed black shirts then ready for the fray, but they admit finance. They are now bound by law to make a daily report of their that only 50,000 actually came to Rome. The plaln truth is that transactions to the finance ministry. about 8,000 black shirts took an actual part in the march to Rome : "Another interesting department of surveillance is that which is they were badly armed and they had no properly organized commis­ installed in the post office. When a name is sent to the cheka as sariat. Monterotondo was their rallying point in the neighborhood of that of a nonsympathlzer, orders are sometimes given to stop the Rome. General Badoglio, who was head of the army intelligence de­ mail addressed to the individual in question, whether he is a foreigner partment assured the Government that he would scatter the whole or an Italian subject. This is especially so if he has anything to lot in a few hours with one regiment of soldiers. On October 27 the do with journalism or politics. Here I can speak from personal King advised the Government to declare martial law, and the decree experience; for my own mail has been seized, and checks sent to me was decided upon that evening at a meeting of the cabinet. On the in payment for work published abroad were sequestered. In that follov.-ing morning it was posted throughout the country, and the matter I have made assurance doubly sure. Since I left Italy I local Fascists began to melt a way like grease spots under the iron. have sent several letters to myself, all directed to the usual address; Panic set in at Montero-tondo. What i! the plan should miscarry? bot they have not been delivered. In each case they contained " For there was a plan whereby the black shirts had been references to imaginary articles published abroad. guaranteed a peaceful entry into the Eternal City. At a meeting "In the administration of justice the cbeka plays a very important held in Florence some time previously, attended by Fascist emis­ part. The police have to take their orders from it. They are sent saries, a few of the army chiefs, and some members of the Na­ to search private residences and arrest peaceful citizens who have tionalist-Imperialist Party, it was agreed that the march on Rome committed no offense against the law. To take some cases in point: should be attempted. D' Annunzio was offered the leadership, but Last June, Count Cesare Sforza was arrested and thrown into be refused. Gen. Peppino Garibaldi was then asked to bead the prison at Massa because _he had a requiem mass said in his private Fascist ranks, but he also declined the honor. No further otiers chapel on the anniversary of Doctor Matteotti's death. He still re-- 2004 CONGRESSIONAL RECORD-HOUSE JAKUARY 13 mains in prison, sharing bls eell with common criminals, a.nd no " Lrl us take the monarchy first. I have already suggested some charge bas been preferred against him. Professor Salvcmlni was reasons why the King is personally favorable to Mu olinJ. But when auested last summer and thrown into prison in Florence because I speak here of the monarchy I do not mean the King alone, bnt rather some anti-Fascist literature was found in his home. There is no the whole dynastic clan with its feudatories and beneficiaries. These writ of habeas corpus in Italy. You may be thrown into jail with­ must not be confounded with the aristocracy ; for, though they form out any charge having been made; yon may remain there for several part of it, the nl'lstocracy embraces a much wider and more indetermi· months and then be released without even the compliment of an nate class. We may, therefore, speak of them as the court party. apology. There is no legal redress and no legal defense. That Is " 'l'here is nothing· to show that this party has any brotherly feeling one of the reasons why so many non-Fascist Italians have to play for the Fascists or that they are in sympathy with Fasr:ist vulgarity the coward's part to-day. and violence. But they are operating under cover of the Fascist ter­ "In the courts one sees the same system in operation. When .<1 ror to transform the laws and constitution of Italy so that the e latter Fascist is brought to trial there is apt to be a gang of armed militia will no longer bear the democratic imprint of the Rl orgimento; to in the court. They intimidate the witnesses and the attorneys. In sweep away th'! whole democratic ~ubstrnctore and build on its site a such circumstances there is small possibility of securing an impartial system somewhat on the plan of the old Prussian regime. The court judgment from judge or jury. It would be useless to labor this point. party would have a place corresponding to that of the Prussian Junkers. One can not take up an Italian paper day after day without finding It would form a privileged ruling caste ei!trenched behind the bulwark reports of such instances as I have mentioned; and almo t every week of the crown. there a1·e protests from the law associations against this wholesale " This court party is represented in the Mussolini cabinet by the suppres ion of justice. national imperialists Federzoni and Rocco, Mini ter of Justice. It is "Taking a general glance at the whole position as I have stated it, the from this source that most of the recent laws have arisen, which reader will probably be inclined to ask how it is that such a regime is en lave the press, condemn the formation of societie such as the tolerated by a civilized people in the midst of all those European na­ Freema ons. and place the bureaucracy and judiciary absolutely at the tions tl1at have poured out their treasure and their blood and their mercy of the Government. The idea is to create a huge state and mu­ tears to save their Uberties from the threat of an oppre siou which nicipal bureaucracy which will be the faithful watchdog of the mon­ certainly could not have turned out more unbearable than that of archy and its privUeged caste-on every office stool iu every state de· Fasci m. The answer to the question is many sided. Here I can only partment, on every teaching chair in school or college or university, touch on a few of ibl more obvious phases. and in every town hall throughout all the 9,200 municipalities into " In the first place, let us take the negative side of the explanation. which the people of Italy are civically g1·ouped. In other words, the Italy is now in a position of political independence such as she has court party would hold central control over all the subordinate forces not hitherto enjoyed. Austria bas been de troyed. If Austria were that formulate and direct public opinion. In bringing about this condi­ in her old position on the Alps, and 1f the Hapsburg Empire were still tion of affairs the cheka is doing the unpleasant work for the time in existence, Fascism would be impossible in Italy. There is no danger being. But once that unpleasant work is accomplished the cheka will from France. Though there are upward of a million· Italians in that be cast oft', just as a victorious general discards the army spies once tbe country, many of whom are political refugees frQm Fascist oppre sion, vanqui bed foe has rendered up the sword. they are only vaguely talking about raising forces to cross the Alps and "The plutocracy works band in band with the court party to sustain free their native land from the grip of the internal tyrant, as French the Fascist sway during this transitory period. To understand what troops once before helped to free her from the yoke of a stranger. the plutocracy means we must realize that capitalism in Italy bas A well-known member of the Garibaldi family is once again in France, a character and constitution peculiar to that country. There is no and a formidable as ociation called the ' Garibaldi Legion ' flourishes wealthy class. The people do not invest their money directly in large on the free soil of the French Republic. But times have changed. commercial and industrial undertakings; they take it to the savings Europe is tired of war. Foreign nations are willing to stand any departments of the banks. The bank.s, in their turn, finance and amount of truculence from Mussolini because they dread the risk of control industrial and commercial concerns. That is the general rule, raising anything like serious international questions at the moment. which naturally has Its exceptions. Therefore, in Italy you have a " When we come to Italy's economic dependency the case is far parisitic plutocracy of a peculiar type. It is not large enough to form more serious. Italy has practically no raw materials for her industries, a class, but is a very strong clique or caste. It finances the Fascist for she has no coal or iron supplies. She can not grow sufficient food­ Party and the Fascist press. In return it receives privileges which stuffs to support her people. Therefore she must import heavily from con olidate its own position. For instance, the fiscal policy of Fascism abroad. Her yearly deficit in the balance between imports and exports has considerably Ughtened the burden of taxation for the wealthy is now about $300,000,000. This means that Italy has to get a gen· classes and transferred it to the proletariat. Food tuffs are now taxed erous share of credit abroad, and she can not count steadily on that to the last potato and the last head of cabbage to be gathered in field favor unless she enjoys the confidence and good will of the nations or garden; but the death duties have been abolished and also the tn.x with which she trades. Moreover, as her labor is one of her principal on the profits made by large corporations. Another return that the exports, it is absolutely essential for her that her citizens should oo large banking groups receive for their support is in the shape o! state welcome abroad. concessions and monopolies and public contracts. The latter are now " Therefore the Fascists are striving with might and main to main· no longer open to public tender, but they are always conceded privately tain confidence and good will abroad, especially among banking and by the Government. This period, however, is only transitory. When large commercial intere ts. For this reason they have organized a the banking groups have the state fully in their hands and their vested system of propaganda to convince outsiders that the economic and interests are bound up with the prosperity of the state, they will financial position of the country has steadily bettered under the look for more able and more economic managers than the Fascistt. Fascist r~gime. To bring this fact home to outsiders they have given When that hour comes, tile doom of Fascism will have sounded ; for to the public a state budget which has little or no relation to the at the present moment Fascism is utterly dependent on the funds that real financial condition. It is simply a piece of propaganda. I should are forthcoming from the plutocracy. Therefore, Fascism must even· not make such a statement without being in a position to bring for· tually pass. ward proof. Take De Stefani's budget for 1923-24. For that year " What will be the result for the people of Italy? On the whole I I find that under one heading alone there was an expenditure ot think that the Fascist movement will have brought at least one blessing 14,000,000,000 or llre ($700,000,000) not a cent of which is debited in its train. It will have taught a bitter lesson to the Italian populace. in the state budget. The expenditure was officially announced in the That populace has not hitherto taken the public interests of its country Official Gazette (June 27, 1924, p. 16). It figures in the treasury with the same seriousness that one finds elsewhere. The Italians of accounts, but It is carefully kept out of the budget that has been the rank and file have been split up into more than a score of political published. That sum alone would practically consume the whole sects, and have hitherto bad no real political party. When they wake income from taxation for the same year. Therefore De Stefani's first up from the nightmare of Fa cism, they will find that their common budget had really a much heavier deficit than those of his predecessors, rights have been legislatively filched from them in the meantime. Ar· even if we confine the deficit to the above expenditure and say nothing rayed against them will be tile organized vested interests of the plu­ of other treasury debts incurred. To keep all such questions dark, tocracy and the privileged caste solidly phalanxed around the monarchy. the pre s is muzzled and foreign journalists are watched and perse· That privileged caste will have its supporters placed in every position cuted lest they begin to pry into the question of Italy's finances. By of control throughout the country-press, schools, army, police, judi­ such means and by the expenditure of huge sums for propaganda abroad, ciary, municipalities, state bureaucracy, etc. It will present a united tbe Fascists think that they will be able to stave off the day when front and can be fought only by a united 1ront. their real economic and financial position may beeome known to " The pinch of poverty and the stress of life and the unequal burden foreign bankers and foreign industrialists. of taxation will force the populace to take a serious interest in pliblic ·• V. So much for the negative side of the reply. On the positive side affairs. Then you will have the disappearance of all the sects-the the question may be put thus : What are the stable and abiding forces Liberals of the Right and the Liberals of the Left, tbe Giolittian behind Fascism? There must be some group or strong and well-estab­ Liberals and the Nittian Democrats, tile Populists and the Republicans lished interests who e policy and profit Fascism serves. What are and the Communists and the Maximalists and the Reformi t Socialists they? The answer is simple. They are the monarch1 and the plu· and the numerous other political denominations that have hitherto tocracy. formed the bewildering mosaic of Italian political life. Already there 1926 CONGRESSIONAL RECOR.D-HOUSE 2005 are signs of all tbese dissenters uniting into one great national bloc, as In addition a law was passed in Congress granting a mora­ we aw recently at the Sicilian local elections. That bloc will probably torium to Austl'ia until the year 1943, and to that country be antimonarchial and will have the court party opposed to it. Thus about $24,000,000 had been advanced. There is still a further ·t here will be two great parties on lll'tlch the same lines as the Liberals debt trivial in amount, of $26,000 only, of the Republic of and Tories in England during the most classic period of British parlia- Liberia. That leaves 14 countries with which dealings must mentary life. It will not be a bad thing for Italy and may possibly be had with reference to these debts. lead directly to an era of peace and prosperity for the Italian nation. On the 9th of February, 1922, an act was passed creating That, at least, is my own hope and belief." what was called the ·world War Foreign Debt Commission. The CHAnnu~. Just a wot·d before anything is said in reply to That was made up of the Secretary of the 'rreasury as chair­ Mr. RAI~EY, with regard to the proceedin a-s before the committee. man, the Secretary of State, the Secretary of Commerce, The chairman is responsible for the meeting of the committee being Senator S~IOOT of the Senate, and myself. in executive session. That was done because the chairman thought There was some delay in the operation of this act, because that ft was inadvisable that the discussion, which might take the the point was rai ed in the Senate that Members of Congress trend which it is taking now, should be made public. were not eligible to serve on that commission. Notwithstand­ My view is that it is extremely unfortunate that members who ing, the nominations of the President were confirmed. I may occupy so important a position as the members of this committee say in this connection that in a conversation once with Presi­ should criticize a foreign government with reference to its domestic dent Harding he was somewhat disturbed because the e nomi­ policy. Of course, so far as its dealings with this country are con­ nations had been held up, saying that he had supposed it was cemed, that is a proper and legitimate subject of discussion. And the wi~h of Cong1·ess that both Houses should be represented while the chairman did not consult any members of the committee on the commission and thus he had made the two congressional with reference to having the meetings in executive session, or, as the appointments. To this statute creating the commi ~ sion amend­ gentleman from Illinois bas expressed it, behind closed doors and in ments were passed modifying the terms of the payment which secret, I think it probable that the great majority of the committee had been fixed and providing that it should be bipartisan by approve that course. adding three other members. The honorable gentleman from Mr. CHlNDBLOM. Mr. Chairman, we discussed that yesterday, and Georgia [Mr. CRISP], Mr. Olney, of Ma sachu etts, and ?dJ:. my colleague from Illinois consented to it. Hurley, of Illinois, were chosE-n. The commission, as compo ed Mr. HADLEY. Be ides, it is the usual practice. of the original five members, immediately after its organiza­ Mr. CmNDBLOM. Well, I want the record to show that. Did not tion notified the foreign governments that settlements were ex­ my colleague from lllinois assent yesterday to having this as an pected. In the course of time settlements with five nations executive session? I recall that he did. · were made, which have been approved by the President and by The CHAIBMAN. I do not know about that; but in any event, it the Congres as well. was the view of the Chait· that such ought to be the procedure. I may say here that the statute required first the approval I would be pleased to hear from Judge CRISP. of the President and next the approval of Congress. Yr. GREEN of Iowa. Mr. Chairman, I yield 40 minutes to The countries with which settlements have been made and the gentleman from Ohio [Mr. BURTON]. [Applause.] finally approved are Great Britain, Finland, , Lith­ 1\fr. BURTON. Mr. Chairman and gentlemen of the com­ uania, and Poland. Of course, the settlement with Great Brit­ mittee, I think it desirable at the very outset to dispel some of ain which was presented here in February, 1923, is altogether the confusion which pre,-ails in the public thought and which is the largest. Settlements since that time have been made with manifest in a very large degree here in this House by setting .·ix. other countries by the commission and approved by the Presi­ forth what has been done in regard to foreign debts. What dent which are now pending here. Those are Italy, Belgium, have we done, and where are we? Latvia, Esthonia, Czecho lovakia, and Rumania. When the United States entered the Great War in April, 1917, I may say in passing that there were concessions made to three all-important measures were neces ary to make that en­ Esthonia and to Czecbo lovakia. That to Esthonia was based trance effective. First, financial relief to our allies, whose re­ on the fact that we sold supplies to that couutry to the value sources were practically exhausted; second, the raising of a of $1,900.000. Tho e supplies were p1aced in a ship which was very large army, and that very promptly. For this conscrip­ torpedoed by a mine and the cargo was lost. The commission tion was necessary. Third, the sending with all possible haste thought it was only fair to abate that sum of $1,900,000 from of a large share of that army acros the seas to aid our allies. the debt o.f Esthonia. It is only of the first of these I ball speak to-day. In pur­ There were outstanding claims on the part of Czechoslovakia suance of this desire to aid our allies financially, on the 24th which would have taken an infinite amount of time to ettle day of April, 1917, Congress passed the first Liberty loan act and a compromise was made. I think it is impossible to state authorizing the advancement of $3,000,000,000 to those countries whether the terms were more favorable to the United States that were at war with the enemies of the United States. This f)r to CzechoslQvakia, but the sum of $115,000,000 was agreed limit of $3,000,000,000 was rai ed by successive acts, finally, to upon as the debt, with interest. That is the amount of t11e $10,000,000,000 in July, 1918. Supplemental to these acts, at a bonds issued by Czechoslovakia. The ba ic ettlement was that later time near the close of the war, laws were passed authoriz­ made with Great Britain, under which her indebtedness of ing the sale of surplus material not needed by the Army or the $4,600,000,000 was funded over a period of 62 years, the an­ people of the United States. Still further, when the war had nual principal payment to begin with $23,000,000, and the last clo ed, there was an authorization of $100,000,000 to be ad­ payment at the end of 62 years to be $175,000,000. The inter­ yanced to needy peoples. est for the first 10 years is to be at the rate of 3 per cent. And further still n law was passed authorizing the advance After 10 years it is to be at the rate of 3% per cent, interest bv the United States Grain Corporation of 5,000,000 barrels of payments to be made semiannually. There were certain condi­ fi~ur to the needy countries of Europe. Under the e respective tions in respect to payments and the grouping of them, and statutes the sum of $9,600,000,000 was advanced in cash, and also for the payment of ·the indebtedness in United States surplus supplies were sold to the value of about $600,000,000. bonds. I do not think it necessary for me to enter into any Under the last act for foodstuffs, and acting under the Grain treatment of that subject, except to say that the concessions Corporation, $140,000,000; making in all, $10,338,000,000 ad­ for delay granted in the English and Finnish settlements huve vanced to our allies. not been taken advantage of. The same basis a for the Eng­ A classification of these loans should be made, which as­ lish debt has been accepted in all of those countries with sumes conside1·able- importance, especially in the case of Bel­ which the commission has settled except in the cases of Belgium gium, of those prior to the al.'Inistice of November 11, 1918, and and Italy. There bas been a modification of the terms in tho e after that date. Those prior to November 11, 1918, were others, notably in the cas s of Czecho lovakia and Rumania, a1most exclusively for the prosecution of th~ war and were under which the eai"lier payments are in less proportion llian utilized largely for the payment for munitions and supplies, in the case of the settlements with Great Britain. Perhap I and those after November 11, 1918, were for rehabilitation, shall speak of that at a late1· time, but all retain the principle food, and for relief. of full payment of the principal sum advanced, with inter.est t"nder these Yarious acts loans or advances were made to 20 at 3 per cent for the first 10 yea1·s and then 31;2 per cent after­ nations, and of those 2 are out of the picture-Armenia, which; wards. Three debtor countries remain with which no settle­ if it ever had a go\ernment, does not have one now, and to ment has been made-France, whose principal obligation is which was advanced $12,000,000, and Russia, to whom we ad­ $3,340,000,000; , $51,000,000; Greece, $15·,000,000. vanced $192,000,000. The Russian Soviet Government repudi­ Negotiations with Greece are already in progress. 1\Ieetings ates this debt. Two other countries in the Western Hemisphere with. the other two countries are expected at an early date. were given loans-Cuba $10,000,000, which has been repaid, and In two cases the commission has seen fit to modify the Nicaragua about $166,000. Most of this has been paid. terms. Those two countries are Belgium and Italy. First, let LXVII-127 2006 CONGRESSIONAL RECORD-HOD SE JA.NU RY 13 us take Belgium. The debt of Belgium was made up of the they must expect to pay that debt. [Applau ~ e.] Of course, I prearmistice and postarmi tice debts. The prearmistice debt said that all proper leniency would be extended but that they consisted of $171,800,000 and the postarmistice of approxi- were e~pected to pay, and they listened Yery respectfully but mately $200,000.000. I speak of the principal amounts. As not very responsively. regards $171,800,000 of prearmistice debts, the commission And I was censured for that in a gathering of the wise men recommends that no interest be charged and that the payme·nt at a meeting in Williamstown and by several of the Yery promi­ of the principal be divided over 62 years. As regards the nent New York papers. $200,000,000 of postarmistice debts., the commission recommends Mr. GARRETT of Tennessee. Will the gentleman yield for that the settlement be made upon a basis similar to that with a question? England. What 1 the reason for the concession upon the pre- Mr. BURTON. I will. armistice debt of $171,800,000? It is this: When •the repre- Mr. GARRETT of Tennessee. Were the gentlemen to whom sentatives of the different countries, including those from our the gentleman from Ohio referred to Democrat. in official life? own, met after the war at Paris and Versailles to frame the l\Ir. BURTON. I am almost willing to tell who they were. terms of peace Belgium asserted that her suffering had been SEVERAL MEMBERS. Tell. far greater than any other and made a preferred claim on Mr. BURTON. Curiosity is awakened. One was Jame M. reparations for the payment of $1,000,000,000 from Germany, Cox, candidate for the Presidency in 1920, and the other was and also that she should have indemnity for 6,200,000,000 of 1\Ir. Henry Morganthau, both very active in Democratic politics. paper marks which Germany had forced into circulation in Now the United States is the richest Nation in the world. Belgium during the time of her occupation. . We have been proud of our leadership in benevolent move- Mr. Wilson, anxious that terms of peace should be concluded, ments. We have given freely of our sustenance, and, what joined with Lloyd-George and with Clemenceau in urging Bel- is quite as valuable, in an exten ion of our sympathy. We gitm1 to abate these claims, to dimini8h the $1,000,000,000 of have expended hundreds of millions of dollars for charity in indemnity to pe paid from Germany to $500,000,000, and Europe. We have fed the starving. We have furnished shel­ practically to abandon the claims as to the paper marks. Bel- ter to the homeless. We have lifted up the heads of the gium agreed to comply on this vital condition, viz, that the brokenhearted, and more than our enormous wealth and the whole amount of that prearmistice debt of $171,800,000 should extension of our trade and commerce over the world this is be paid exclusively from German reparations, and that she to the honor and glory of the American people. [Applause.] was to be relieved from any responsibility. Mr. Wilson prom- "'... hen we make a settlement with Italy we settle with the ised that he would recommend to his Government that this be poorest nation among our debtors. I think Austria was in done. Lloyd-George and Clemenceau made the same promise. worse shape because that great Empire bad been dismembered. That is not all of it. In the case of the debt of Belgium to The Austrian statesman, Metternich, said, more than 80 years England and France, the promise to look exclusively to Ger- ago, that if political conditions had not createu -an Empire of many has been kept, and there is another feature that is quite ..Austria-Hungary the economic conditions would have made it as important. In the making of terms of peace Belgium made necessary, because here was the raw material and there the~ very substantial concessions because of the promise that Ger- facilities for the finished product, here the coal, there the many was to pay that prearmlstice debt, and in making those forests, and so it was one complete economic lmit. But an concessions she was very much influenced by the request of Empire of more than 40,000,000 people was reduced to only our delegates. There is certainly a moral obligation here, 6,000,000, a very large share, not half, but approximating it, and there comes pretty near to being a legal obligation. While In the city of Vienna, and probably suffering has been more the other countries have ratified the promise by their respec- acute in Austria, though their soil is altogether richer and the tive parliaments, our own has not. In view of that fact, the resources greater than in Italy. Bear in mind we granted to commission recommends that the $171,800,000 be relieved from that country a moratorium until 1943. the payment of interest and spread over a term of 62 years. But let me say a few things about Italy. In minerals the In the case of Italy an even more substantial concession was Statesman's Year Book-and I want to say here that gentlemen made, in that the earlier payments are only $5,000,000 annually {said we relied entirely upon the Italian delegation for our for the first five years, no interest to be charged, then for the statistics; still having some little familiarity with other books next 10 years one-eighth of 1 per cent, and in the last seven on statistics and economics I resorte-d to them-and turning to years 2 per cent, there being a gradual gradation be_tween the the Statesman's Year Book we find that the total quantity of :first 10 years and the last 7 years. That seems a very great production of iron ore in the year 1922 in Italy was 311,21-l concession, and it is, for if we calculate the present worth at 41A, tons. There are two furnaces in my city of Cleveland which per cent we obtain only about 25 per cent, or $538,000,000, on a burn more than that. Their principal item of mineral wealtil debt which was originally $1,648,000,000, and on the basis of 3 is sulphur and that is in Sicily. The total value of all their per cent the present worth is only $791,000,000. Why did we do mineral wealth, including the products of marble quarries, is that? Because we were sure that the capacity of Italy to pay 726,000,000 lire or, in gold value, a little over $29,000,000. was such that she could not undergo the burden of heavier 'Yell, now, I will not waste time to make comparisons. terms. I do not wish to go into that to any extent, because The mineral product of Great Britain every year is well my good friend, Mr. CRISP, and my good friend, l\Ir. MILLs, over a billion dollars. In Germany, as against 946,000 tons dwelt upon that subject at great length yesterday. If anyone of mineral fuel in Italy there is a production of 136,000,000 is not convinced, I ask him to read carefully their speeches tons of coal, 123,000,000 tons of lignite, and in addition to th9.t and the figures and arguments which they have made. I may, there is a production of 13,076,000 tons of potash, which is a if there be time afforded, dwell upon it further. This must much more valuable mineral. The land of Italy, when planted be understood, that the average annual income of an Italian in wheat, produces 10 bushels to the acre less than those of is $101 and of an American $614. One dollar and twenty-five Ji1.'ance, Belgium, and Great Britain. She has an asset in her cents is the daily wage of an Italian labor~r, even if he is a water power, but on a survey made by representatives of skilled laborer. They do not think it best to install machinery American companies, made a little while ago, they found that over there because they can utilize common labor, and it is Rumania bad more water power than Italy. She ho.s railroads not worth while to equip their factories to that high point of of a little over 10,000 miles as against perhaps 240,000 milei! efficiency which is true in the United States. Italy has a in the United States. They operate with great difficulty. There balance of trade against her of some $200,000,000 or more a must be very sharp cm·ves, there must be steep grades, and year, absolutely necessary to keep her from starvation, and many tunnels. The lower levels of ground are very soft and let me say that of the $101 I mention as the average annual require constant repair. You can readily see why that is, be­ income there is an irreducible minimum that is required for cau..:e some railroads are built on the edge of mountairu~ enough to keep soul and body together in the way of food. I and the waters flow down upon the roadbed. The net income make this appeal to this House that we must not assume an to the Government from all the railways is very small when you attitude of too great severity. consider the investment. She has, it Lc:; true, two assets, one of I think I can qualify before this House and the country as them being touri.sL, producing something, perhaps, between­ an advocate of the payment of these foreign debts. I found I will not try to give an exact figure, because I do not think out in London in September, 1922, that two very prominent anyone can tell what it is-$100,000,000 and $150,000,000 a men in the Democratic Party had been making speeches there year. It was greater last year than usual because of pilgrims. in which they gave out the hope that we did not care at all But bear in mind that is not clear profit to Italy. She has about the collection of those debts. I disliked to say anything to feed these tourists and give them attention. The $100,000.000 about the subject. I did not wish in any way to exploit. my or more from immigrants is more nearly a net asset, but there position as a member of the commission, but I thought it was is a larger am~unt of balance of trade against her than botl1 time for me to speak; and so a luncheon was arranged, and of these, because she must purcha. e abroad commodities which ~orne 400 persons were there, including the Chancellor of the are ab olutely essential. .Now, I repeat what I said before, Exchequer and many prominent English banker::s. I told them i under these circumstances we can afford to be magnanimous. ... 1926 CONGRESSIONAL RECORD- HOUSE 2007 Mr. MOORE of Virginia rose. ment bas been made here that speakers soliciting subscrip­ M.l·. BUR'l'ON. I would like to proeeed for 20 or SO min­ tions promised that foreign debtors would pay. I was con­ utes-- stantly meeting speakers in the campaign, and I heard other Mr. MOORE of Virginia. I fear the gentleman misunder­ spe~ers by the score, and I do not recall a single person stands me. I ask the liberty of the gentleman of making a.n who mentioned in any way the probability of foreign countries observation. paying their debts to us as a reason for subscriptions. The Sec­ :Mr. BURTON. Yes. retary of the Treasury, :Mr. GLASS, in a statement after the Mr. MOORE of Virginia. We have here simply the question war, said: "The collection of interest," not principal mind you of evidence, as I view the matter, evidence as to the condition " would be no less disastrous to American interests than to ou; of Italy. The gentleman has given data that related to that. debtors." Mr. BURTON. Yes. That is No. 1. That is only the· beginning. Now, No. 2 is Mr. MOORE of Virginia. I invite the gentleman, if he has about rubber. He says: not done so already, to read the book on Italy by Thomas Nelson Page, who was our ambassador to Italy during the war. Now, if these gentlemen who composed that Debt Commission rep­ He was a man of the very highest character, as we all know. resented the very last word in statesmanship and the ideal statesman­ He describes how Italy was utterly emausted and worn out at ship In this country, why did they forget that important item? What the COI).Clusion of her war with Turkey, and then he further Great Britain particularly wanted was to borrow money, and she dill, tells how Germany took advantage of her difficulties arising and to settle on terms as favorably as she could, and we b.11ew she out of her conflict with Turkey and otherwise, and had really produced 70 per cent of all the rubber in the world. subjugated her, commercially, prior to the war. Why did we not say to her, " The greatest industry in this wol'ld Mr. BURTON. Yes. Perhaps the worst feature is the lack now is the automobile industry, and that is located here In the United of fertility of the land, the depletion of the soil, going back to States. We do not want rubber prices to increase. We remember the the time when largesses were given to the soldiers in the days coffee Talorization policies adopted in Brazil, and we know what that of imperial Rome. I do not wish to speak in terms of dispar­ _ means in this country. We do not produce coffee here; we get our agement of a friendly country. The condition in Italy may not supply from BraziL" They bad a perfect right to take that into con­ be one of abject poverty, but it is a constant struggle for life, ~ideration, because that coft'ee valorization proposition originated in the and with such a people we should have the kQenest sympathy. house of Morgan in New York, and they financed the original valoriza­ tion and suggested the scheme by which the coft'ee production is limited It -is often thought that there must be high ideals, and this and its prices .fu:ed down there in Brazil, and we take most of the coffee matter of getting daily bread is rather derogatory to a man. they produce in Brazil, and when we buy coffee in this countrj we are The great dramatist said : paying a very considerable part of carrying on the Government of What is a man, Brazil. If his chief good and ·market of his time Therefore valorization schemes in tropical products that we do not Be but to sleep and :feed? A beast, no more produce in this country were perfectly well known here. The bankers Sure He that made us with such large discourse, in New York knew all about It; they were responsible for the coffee Looking before and after, gave us not valorization scheme in Brazil. That capability and godlike reason So the easiest thing in the world would have been for them to say to To fust in us unus'd. the British, "We will settle with you, but we will want the rath It is a noble sentiment that Shakespeare put into the mouth changed in. your rubber proposition so that we can get rubber here for of the young Hamlet, but it overlooks the fact that for a this great industry of ours at prices that are reasonable." majority of the human race there is a constant stl·uggle to sleep and :o feed ; and when sometimes the hardy laborer Now, that commission was appointed for a special purpose. comes home at noon with some special delicacy for the table Its powers were narro~ly limited to settle those debts. there is a new delight in the home ; and when at the There was not the least authority to go outside and talk Chrisbnas season, too poor to furnish a Christmas tree, the about rubber, coffee, or anything else. If we had done so we father of the hou ehold brings home some glittering tinsel, would hav-e been violating the law. If we had stopped those a,nd the children tug away at his knees, there is joy and negotiations-and we would have had to stop them for a len"' rejoicing equal to that of the philosopher who discovers a time-for ordinances from Ceylon, the Straits Settlements and great truth. There are some of us here in this House who Malayan States, it would have been a very cold and ver~ re­ from our boyhood days could contribute chapters to " the mote day before we had ever made any settlements whatever, short and simple annals of the poor." Shall we close our eyes and what a howl would have been raised in this country if we to the facts relating to Italy? had done that, and I am not sure but that the gentleman from But it is said Italy has capacity to pay; and I wish now Illinois [Mr. RAINEY] would have been one of the loudest in to take up the remarks delivered by the gentlema"L from the chorus. [Laughter.] The cry would have been that the Illinois [Mr. RAINEY], partly from his hearing before the Debt Commission had exceeded its authority and was mak:in(J' a Committee on Ways and Means and partly what he said bargain for the benefit of the rubber interests. o to-day, although I was not able to follow him fully this after­ That is not all. When we w~r.e conferring on that debt the noon. I want to say of his remarks to-day, however, with all price of rubber was only 32.73 cents per pound, which was con­ due respect, that I never heard so long a speech in the House ceded by all to be a reasonable price. The price did not rise of Repre entatives. I never heard a speech in which there was during the year 1923 except for one or two months. The real so much that was not pertinent to the issue. [Applause.] rise did not begin until January and February of this year. And I never heard a speech in which there was so much muck­ Does the gentleman from lllinois have it in the back of his raking as the speech he ha just delivered. The gentleman head that we ought to have been seers and looked ahead two from Illinois blamed the gentleman from New York [Mr. years and more, to 1'925, for a higher price for rubber? Why BLooM], that he lacked a sense of humor. I think he has an it is absurd, and I might even use a stronger word than that: abundance of it, and the main feature of his sense of humor Yet that is made the basis of a criticism of the commission. is that it is entirely safe, in making a speech to the House, to I am not going to stand here and defend the commission, but enter the domain of facts very sparingly. [Laughter.] I want to say to you that every settlement made thus far has I will take up some things in their order. First, he re­ received the overwhelming support of the press and people of marked, on page 37 of the hearings before the Committee on the United States. [A.pplau.~ e.] That is true of the settle­ Way and Means, concerning the money loaned to the Italians: ments now pending, and especially true of the settlement with Italy. We have given of our time, without exn·a pay, week Now, I remember most distinctly the ~e when we were collecting after week and month after month to the consideration of that this money to lend to these Italians. We collected this money at a subject, and if anyone makes such an absurd accu.~ation as time when American bonds were selling at 84 on the market. We this about rubber I n·ow it will not hurt the commission but beld open meetings throughout the country. it will reflect upon himself a great deal morP. than it will Wby, ble. s you, the United States did not issue a bond for furnish support of the accusation. · less than lOQ per cent par. It is true that in 1919 tbe price The next thing he said was quite as inaccurate and, indeed, fell off. omewhat, and in May, 1920, when the panic commenced I do not .find anything here that I can vouch for. [Applause.] tile price fell off a little further ; some to 84 and some even t~ All these things happened and all these things were considere

The CH A. IRMA.."'~\". The time of the gentleman from Ohio has Let me now call your attention to an accurate statement of expired. a very important provision in this agreement made at London: Mr. GREEN of Iowa. How much more time does the gentle­ Thls problem Is placed ln charge o! a transfer committee, which man need"? is to consist o! the agent general for reparations payments and five Mr. BURTON. I would like at least 30 minutes. experts in foreign exchange and finance. Reparations funds are not .Mr. GREEN of Iowa. Mr. Chairman, I yield the gentleman to be deposited In the bank of issue in excess of 2,000,000,000 marks. 30 additional minutes. Funds accumulated ln excess of this amount are to be employed in l\Ir. B"LRTON. I have just gotten into this, and I want to bonds and loans in Germany, but total accumulations 1n Germany clear the atmosphere a little. must not exceed 5,000,000,000 marks. If this limit is reached, the All these things happened and all these things were considered by reparations payments are to be reduced so as to keep the accumulation the international comntission when the capacity of Germany to pay withln the stated limit. Also, the transfer committee shall have wa considered. They reached the conclusion that Germany could power, by a two-thirds vote, to suspend accumulation before reaching tm.r a considerable sum of money, and in 1927, under the agreement of 5,000,000,000 mark limit if its members decide that such accumulation t.b.at commission, using the same yardstick that we used and to which is a menace to the economic situation in Germany or to the interests we point with pride when we say that the capacity to pay is the of the creditor nations. matter we are going to consider-this commission reached the con­ What does that mean? It means that there is no absolute clusion that Germany could pay $GOO,OOO,OOO a year in 1927, next year, assurance of payment of reparations by Germany, and even in and she is going to pay $GOO,OOO,OOO in 1927. regard to the amounts I have named, beginning with 1,000,- I corrected that yesterday because it was so glaringly in­ 000,000 marks, there is this provision here with reference to correct. Germany pays in the first year, ending August 31, the amount due in 1927 and 1928:

19231 1,000,000,000 marks, or $238,000,000; in the second year, Subject to modification to an extent not exceeding 250,000,000 gold 1926, 1,220,000,000 mark , that is, this year; in the third year, marks, according as the aggregate yield of the controlled t•evcnues 1,200,000,000 marks; in the fourth year, 1,750,000,000 marks; exceeds or falls short of 1,000,000,000 gold marks in 1926 or 1927. The and in 1929 she is set down to pay 2,500,000,000 marks. Now, modification to be one-third of the excess ot· deficit, as the case may be. if 2,500,000,000 marks is the payment for 1929, that would be a All as provided in the plan. little le.. s than $600,000,000, the amount of money which the That is, it goes down 250,000,000 marks in case the revenues gentleman from Illinois says is to be paid in 1927. Instead of are disappointing. Therefore anyone who says $600,000,000 is its being 1927 that is the ideal amount that Germany is e:x­ assured in 1927 or in any other year is making a very erro­ pected to pay in 1929. neous statement; and in this connection I wish to say some­ Now, let us see from the following statement bow sure they thing right in line with what has been said here about transfers. are that Germany will pay: A co1mtry may grow very rich. and powerful, may increase The system bears a resemblance to income taxation without any in wealth, may foster the convenience of its inhabitants bv surcharge feature. It is also like a current income tax, because it better living and better homes, but when it comes to shipping affords at the present time no criterion as to how long payments are to amounts abroad it is unable to do so. That is a very simple continue and how much the payer shall eventually make over to the · principle of finance and economics that a great many people in creditor. It may be anticipated that bilateral negotiations will eventu­ discussing this problem ba ve overlooked. ally fL--< both polnts, which would seem to be the chief outstanding There are only three ways in which a c::ountry can pay bal­ uncertainties in the system so far as Germany ls concerned. ances abroad : First, from an excess of exports over imports ; Somebody said yesterday that these large indemnities were second, from income derived from investments abroad, such to be paid for 40 years, and I will tell you what bas given rise as Recurities and rent of land ; third, from services rendered, to that delusion. Germany gives to the reparations commission and services rendered include what is spent by tourists in a 11,000,000,000 marks in railway mortgages; 5,000,000,000 marks country and includes what is gained from shipping and insur­ in mortgages on industrial properties in Germany. a total of ance premiums. It is estimated that France has a balance or 16,000,000,000 marks, or close to $4,000,000,000. There is at­ $600,000,000 for services. It is the most-favored country as re­ tached to that transaction a provision calling for a sinking gards visits of foreign tourists; and in Italy, as I have said, it fund, that 1 per cent of the principal of those respective bonds amotmts to probably a little over $100,000,000. shall be paid off each year, and that would result in can­ Why can Great Britain pay $23,000,000 a year, together with celing those bonds in about 37 years. That is all the basis the interest agreed upon? It is because she has investments there is for your 40-year conjecture, and I do not tlliuk there abroad that are a constant source of income to her. Mr. is anybody who believes that Germany is going to pay for any McKenna, former chancellor of the exchequer of Great Britain, $UCh period as that in some remarks made before the American bankers in the Now, let us look at the amount she paid in the first year, the autumn of 1922, estimated English investments abroad at, I year which has just come to an end. This is from the report think, something like $15,000,000,000. of :Mr. Gilbert, the agent general of the reparation payments, I think he exaggerated ; but England has investments abroad and he belongs to what is ca~ed the transfer committee: enough to bring in, notwithstanding an adverse balance o! trade, sufficient to send to us these very large amounts each During the first year of the plan the transfer committee has made no year. Italy has no such balance. Her investments abroad, rash transfers to the creditor powers. which are practically nil, tourists, and her emigrants only en­ That is, they have not paid them any money. able her to pay the adverse balance in trade and give her people The principal transfers during the first annuity year have taken the a fair subsistence. fot·m of deliveries in kind. There you have it. Are you going to bring blood out of a Deliveries in kind hfr'Ve accordingly absorbed a large share of the turnip? The commission in making these settlements has fixed first year's payments, and have con-espondingly engaged the atten· comparatively small amounts for a number of years for nearly tlon of the transfer committee. all the counh·ies. Why did we do it? It is because of a con­ viction, which I think is based on facts, that these respective He then goes on to show what the deliveries in kind were­ countries, Poland and Finland and Htmgary and all the rest, coal, livestock, telegraph poles, alcohol, paving stones, agricul­ while they may be increasing in wealth, while unemployment tural machinery, and all that sort of thing, and barely a dollar may be diminishing, while a higher standard of living may be or a mark, gold or paper, paid by Germany. adopted, will not ha>e the money to transfer abroad. We can Some persons may say that does not look very hopeful for make transfers abroad ll)Ore easily than any other country, be­ their coming to the front with cash up to the amount of $600,- cause we have so much gold and so considerable a balance of 000,000. There is another phase of this agreement that the trade. If a country has an accumulation of gold they could gentleman from Illinois probably never heard of, and possibly pay the e balances. If we bad gone beyond the figures that it is new to some of you. I will read a summary of what are named in these respective settlements I feel well assured that is: that the countries in question could not have made the trans­ The amount that can be raised in Germany and the amount whlch fers of payments. I repeat, it must either be a balance of can be transferred abroad are treated as twQ distinct questions. For trade, income on investments abroad, or services rendered for the stability of a country"s currency and for a balanced budget to which there is payment. be permanently maintained its earnings abroad must equal the pay­ None of those with which we have settled save England has ments made abroad, including not only payments for imports but also enough to send any great amount. What is the reason for that? rc>parations paym<>nts. Expc>l"ience, and experience alone, the com­ The conditions are exceptional. The first reason is that every mittee llolds, <:au sllow what transfers into foreign currencies can 1D last one of them ha ~ been exhausted to the very breaking point practice be made. by the destruction and losses of the ,,..a1·-Iosses of man }lower 1926 CO.L GRESSIONAL- RECORD-- HOUSE 2009 as well as of property. Surplus income which might have 1 reimburse Franklin E. Gowen for any expense or trouble he . sufficed to pay balances abroad before they engaged in the had been to on account of the unfortunate incident. war has vanished away. What is another reason? The slow We were told that we did not dare to protest against the r~oyery, first, of agriculture and then of manufactures in these insult to our consul. respecti"'i'e countrie , which created a period after the war in Mr. RAINEY. Will the gentleman yield? which they bad to in1port large quantities of food and. neces- Mr. BURTON. Yes. sities from other countries. What is another reason? The Mr. RAINEY. Did the State Department tell the gentleman taggering burden of dome tic debt. \Vhat is still another how much was paid to the vice consul? reason? The greater co t of goyernment in salaries and in all Mr. BURTON. No. other phase of administrative and governmental activity. Mr. RAil\TEY. He was paid the sum of $12. So we haYe a Europe-! will not say it is prostrate, but 1t is Mr. BURTON. That may be all that it was worth. disabled fi·om transferring Yery large sums abroad under these [Laughter.] circumstances. · Mr. RAINEY. The fee of the surgeon that operated on him Why; there was a discussion here in October, 1021, in which was paid. it was eyident that some Members thought that all we had to Mr. BURTON. That proves how trivial an incident this was do to get the total amount of our debts from abroad was to though the gentleman made a mountain out of, as if it was an send oyer a sharp note and tell them to pay up. I do not insult to the United States Government. [Applause.] Twelv~ know but· I was the only one who rai ·ed a di cordant note dollars ! I do not think that is anythirig we will go to war in that discussion. I did not think it was feasible, and I do about or refuse to recognize the government of Mussolini. not believe you can do it now. Our hope of payment of the Of course, our sympathies in this country are with popular debt is ba ed on the confidence that the future will be better goYernment, with all of its incidents. You have read of a than the past, that year by year when the bitterness and hate Cromwell or a Diaz who was injected into a troublesome situa· of the war have disappeared, and destruction has been re- lion wher~, perhaps, it was for the good of the country, but I paired, the countries will assume a better position and be am not gomg to express any opinion about the Italian Govern· - able to recover. That is the only hope we have. If you do ~ent. It is a good idea for us here in the United States, espe­ not approve of the settlements, w-e will not get the money c1ally in the House of Representatives, to mind our own busi· from any one of them. England is the best chance because of ness and look out for our own rights when they are infringed her great wealth and also her moral attitude. The English upon. [Applause on the Republican side.] If there are so· people ru·e insistent that their splendid record of credit shall cietles here in this country that are unfriendly to our Govern· be continued and are in istent that they pay their debt to us. - men~, or, what is somewhat similar, who declare loyalty to a But do not be too sanguine, my dear friends, that all of these fore1g~ government, a~d if they are guilty of any act of dis· amounts are going to be paid. I hesitate to say that, b~ause ?rder•. if they threa~n many way our so.cial or political fabric, the statement might be transmitted somewhere else· but a It is time for us to mtervene, but I am mclined to think there Nlfldition of improvement is the basis of our hopes ~nd the are some men in this House who have been filling the air with reason for the smaller payments that we have provided for denunciations of the Fascisti of Italy and of the United States jn the earlier paymen~. That especially applies in the case who were silent when there was plotting in this country by of Italy. She has cut her expenses to the bone. Her total foreigners, and when in the deadly grip of war there were xpenditure for her army, according to the Statesman's Year plotters who were burning bridges, blowing up ships and muni· Rook. has been cut to 1,795,000,000 lire, paper, or about $72,000,- tion plants, and killing our citizens. I am afraid there are 000; and to 875,000,000 lire, or about $35,000,000, for the navy. som.e who a~e very much interested about the Fascisti who I think we are spending for Army and Navy 400,000,000 in durmg that hme were as still as mice. our own country. To apply an old saying, people who live Mr. CO~~ALLY . of Texas. Mr. Chairman, does not the gen­ jn glass houses must not throw stones. Can we blame Italy tleman think, in VIew of that charge against the membership for pending that amount of money when we spend $400,000,000 of this House, that be ought to specify who he is talking our:elves? That, too, when she is in the position where war about? in Europe may be troublesome and will make it necessary for Mr. BURi'ON. The gentleman knows better than I. I was her to bring out an army. not here at that time and he was. Now, the gentleman from Illinois gave us a long and alto- Mr. CONNALLY of Texas. Then some one who knows better gether terrible account about Mussolini and the Fascisti. I than the gentleman ought to utter those sentiments. reg1·et that that kind of a speech was made here before the 1\Ir. BURTON. You have been relying all of the while on House of Representatives. [Applause.] newspaper clippings and statements. I remember at a Gridiron Club dinner in the winter of Mr. CONNALLY of Texas. The gentleman makes a general 1915-16 President Wilson addressed the newspaper men of charge. He says, "Gentlemen in this House." Who are they? the country and their gue ts. He said it is perfectly proper for Does not the gentleman think that that is an unfortunate you to discuss domestic policies, but I urge upon you with all charge? the force at my command that you abstain from criticism Mr. BURTON. I have the best of opinion of all of my fel· of the policies and rulers of foreign countries. low Members here and I do not like to see a discussion here Wby, in the first place there is a comity between nations which lowers the standard of this House. What has the con­ which forbids it. It is a part of that politeness which prevails nection of Mr. Hoover with a company in Russia, or the coming among gentlemen not to criticize a foreign country. [Applause.] together of different ~rmies converging on that line, to do Again, I do not believe that we know Yery thoroughly about with the Italian debt? That is not what they were aiming the incidents of which the gentleman speaks. at. Our bargain is with the Italian people. Our settlement is The gentleman from Illinois [Mr. RAINEY] made the state- with them. What is involved here is good relations with those ment that the deputy consul at Leghorn had been assaulted and 40,000,000 of people in the years that are to come. [Applause that the Italian Government had done nothing about it; that it on the Republican side.] What is involved is a proper expres­ was a dir~t insult to our Government. I have only been able to sion of sympathy for them, of due regard for their situation. get a hasty account about it, but this is what I got by telephone: It was not on brief consideration, but after days and weeks of On Jtine 4 the State Department learned from the press consultation and study, that the ·commission brought in this that an attack had been made at Leghorn on Yice Consul report, more favorable than all of the others. The statement Franklin E. Gowen, and whed · George Summerlin, counsellor was made here, as I understood it, by some one on the floor at the American embassy at Rome, to make a report on the that the commission would like, if ·they could have done so incid~nt. Under date of June 17 Counsellor Summerlin re- and" got by with 1t" in the Congress, to release all these debts. ported that Franklin E. Gowen admitted that his assailant did I looked over the speech this morning in the RECORD, and I not know who he was and did not know him as a representative think that was c.ut out. I am very glad if it was. Why make of the United States, and that therefore no offense to his Gov- such an absurd accusation as that against the commission? ernment was intended. How gladly we would have· collected cash on the nail to-day Accor~ing to w~at we have heard here, you would have and not in yeax:s to come, if we could; but you are not going t~ thought 1t was a direct insult to this Goyernment. I could not settle this by a discussion in which facts are disregarded, in give crede_nce to it when I heard it, because if there 1s any which economic principles are cast to the winds, by coinpari­ one thing observ~~ - by fo~ei?n governments, ne;xt to abstaining so~s which are not applicable, by coming up here and making from baseless cntlcism, It IS to protect the diplomats; and I thiS great to-do about the Fascisti in Italy. Cut it out. That could not believe ~at our ~tate Departmeut, our Government, is not the question before this House. The question is, Shall would allow a _deliberate m ult to one of our vice consuls we make this settlement? It is not Mussolini; it is not a few abroad. hot-heads that may join Italian societies here. I am sorry to On June 23, 1925, Com;tsellor Summe:lin reported to the State say that societies that threaten public order, that indulge in Department that unoffic1ally the Fore1gn Office had offered to violence, exist in this country, and they are not by any means, 2010 CONGRESSIONAL RECORD-HOUSE JANUARY 13 all of them, made up of foreign born. There are some native I take that position to-day. [Applause.] I was a new Mem­ born who are just as apt in deviltry of that kind as any that ber at the ~ime,, a raw recruit, and, of course, my remarks come from abroad. [Applause on the Republican side.] We made very little Impression. Buth gentlemen, I was here when deprecate that fact; but if we enforce the law, we will squelch the loan was authorized and I appened to be on the other them. side of the ocean when the loans were being made and the In conclusion, Mr. Chairman, I have sought to confine my­ money used. Older and wiser Members of the House took the self to the question at hand. I could have gone much further same position at the time. into this question of Italian ability, but I have left that It seems to me that when we talk about the payment of a loan largely to Messrs. CRISP and Mn.Ls. To my mind, in every we should distinguish between a loan made to an individual great decision like this our beloved country is at the cross­ or eve.n to a nation, for the purpose of using it for its o~ roads. Will we justify the accusation that some make that exclusive business and a loan made under the circumstances we are Shylocks? Will we fail to recognize the fact that and conditions which the loan now sought to be settled was America, grand, powerful, is the richest Nation on the earth? made to Italy and other allied nations. Italy, France, Belgium Will we ignore the fact that the people all over this broad land and England were at war. We entered the war in 1917. W~ look to us for policies of generosity and sympathy? Will we were. directly interested-v-itally intere~ted. First, we wanted seek to insist on the uttermost farthing, when such insistence to wrn the war ; second, we wanted fo win the war in the would not only degra~e ourselves but would defeat the very ~hortest possible time ; and third, we wanted to keep the war object that we are seeking; because if we had sought a settle­ m Europe and not fight· it out along the Atlantic coast. The ment more severe, it would have meant that all of our pros­ last reason was the one which prompted an immediate declara­ pects would have vanished into thin air. We love our country. tion of policy after war was declared that we would rush We are interested in all its policies. Heaven knows that we money, material, and men to Europe. Reference was made but have been granted progress, and, I may say in no exaggerated a short while ago criticizing Italy's late entrance into the war language, a power and a glory not given to any country un- a~d belittling her ~art i~ the great World War. Gentlemen, you -der the sun. Let us justify the hopes of the world, let us will all recall the s1tuat10n. Permit me to remind you that Italy justify our own highest ideals, and, in wisdom dismissing futile was part of the so-called Triple Alliance. and absurd controversy, agree to this settlement, building up This ~lliance .consisted of the German Empire, the Austro­ our friendliness with Italy, an asset worth more to us than Hungarian Empire, and the Kingdom of Italy. 'l'he very pur­ hundreds of millions of dollars, taking that place that we ought pose of the treaty we can now see, and hi tory will tell was to occupy, of a splendid America that has the keenest regard Germany's deliberate and well-prepared plan to attack F~ance in its foreign relations for every nation on this broad globe. so~e day. It was a treaty brought about to carry out the [Prolonged applause, Members on Republican side rising.] m1li!ary strategy of the German war lords. When war broke Ur. GREEN of Iowa. Mr. Chairman, I yield 15 minutes out m 1914 Germany and Aush·ia immediately called upon Italy to the gentleman from New York [Mr. LAGUARDIA]. to take up arms with them in accordance with the provisions 1\Ir. LAGUARDIA. 1\lr. Chairman, when a nation figures of the Triple Alliance. Military and naval plans prepared in interest and compound interest and exacts it to the last penny, every detail were ready, and in these plans Italy's military and from a weaker nation, it indicates that that nation is in pos­ naval movements were well defined. The Austrian and Italian session of adding machine , but when a prosperous nation can fleets were to concentrate at Brindisi, Italy. There tlley were· waive interest in order to help a friendly and insolvent sister ~o coal, go down the Adriatic, through the straits of Messina nation, then that nation is in possession of a soul. [Applause.] mto the Mediterranean, destroy French commerce French ships Now, I am not accustomed in the last few years to make and attack the French :Mediterranean ports. A~stt·ian troop~ speeches upon the fioor of this House in support of bills. were to go into Italy, join the Italian forces, and attack France [Laughter.] from the 8outh. This would have compelled the French to ~stablish a s~uthern line of defense and would have weakened There is but one matter before us and that is whether or 1~s 'Yestern lir:e of defet;tse. Italy refused from the very be­ not the House will ratify a settlement made by the American grnmng and d1d not hesitate a moment in her refusal. Italy Debt Funding Commission with the representatives of the maintained the position that she was bound by the treaty to Kingdom of Italy. We are not called upon to e:x:t'end a vote take up arms with Germany and Austria only in the event that of confidence to the administration now in power in Italy. either of them were attacked by another nation. Italy then We are not called upon by our vote on this question to decide and there construed Austria's ultimatum to Serbia as an act the treatment suffered by a great fraternal order in the King­ dom of Italy. Those are entirely different and distinct matters. of war and that A~ tria was the aggressor and not Serbia. Had Whether we are in accord ·with a dictatorship or not has !taly. not taken this courageous stand, gentlemen, you can easily lllla~ne what. would have ~appened in 1914. Just picture the nothing to do with the manner in which we cast our vote on combmed. Italian and Au tnan fleet with the two fast German the proposition contained in the bill now before us. I believe cruisers, which were in the Mediterranean at the time attack­ it is the duty of every Member to vo~e according to his best ing French . commerce in the :\Iediterranean and ports. judgment on the merits of the bill without regard to the Fren~h political situation in Italy or the likes or dislikes of any Picture also the necessity of France establishing another line particular member of the Italian Government. We should not of defen eon its southern frontier, and Austria having so many lose sight of the fact that after all back of the King, back ~ore troops, ~ogether with the Italian Army, to attack France · of the Government, back of any particular administration there rn t~e south :nstead of being engaged in holding a line at the is the Italian people who in the last analysis pay the bills Italian frontier and releasing so many more hundreds of thousan~s of French troops for the western front. Then just and it is to the Italian people that the American people ex­ a~ ~uss1a was weakening and just at a time when division after tend a material and generous reduction of the war debt. [Ap­ division could have been released from the Russian frontier to plause.] attack France they were engaged by the Italian Army for I do not B;lways agree with the majority party of the House. Italy declared war in 1915. Gentlemen, there is no doubt that I do not hes1tate to express my views on any matter that comes had Italy's attitude been different, the imperial force would before me. In favoring this bill I am consistent with the have been in Paris in six weeks, according to their scheduled attitude which I took at the time the loan was authorized in time. As to Italy's share of the fighting its 052 000 dead and 1~17. The matter was before us on Apri114, 1917, and a short its 458,000 wounded tell the story. Let us ~ot defile the hme after the House was addressed by the distinguished memory of these boys by belittling their bravery anti the grim gentleman from Illinois [Mr. RAINEY], who was impatient at fighting they went through. the long delay and urged immediate action in order that the Let us be perfectly frank about it. Many of the gentlemen loans might be made to aid the nations then warring against who have spoken to-day on this bill and in opposition to the the Imperial Government of Germany. I made, I believe, my bill were most anxious at the time. to end help to the Allies fir:t speech on the fioor of the House. On page 676 of the in order to hold the line. It might be a good thing to read Co.xGRES~IONAL RECORD of April 14, 1917, Sixty-fifth Congress, the Co~GRESSIONAL. RECORD of April, May, June, and July of :first sessiOn, I stated: 1917, the first sessiOn of the Sixty-fifth Congres . Is there a I uo not share the belief of some of my colleagues who have expressed man on the fioor of this House who was then a 1\lember ot piou confidence and figured on the complete restitution of the Congress, and who voted authorizing this loan-if I remember $3,000,000,000 loan to be made to foreign governments. Yet I believe correctly, it wa.s almost a tmanimous vote ; even those against that a good portion will be in due time returned; but I am certain w~r voted for 1t-who at the time expected to be paid in full that orne of it will have to be placed on the profit-and-loss column of With compound interest? We did not stop to consider interest Uncle Sam's books. Let us understand that clearly now and not be then. decl'lved later. Even so, if this brings about a speedy termination of the Gentlemen, hypotheses have been suggested as to Italy's European war and permanent peace to our own it 1s a good investment. future ability to pay, France's future ab1llty to pay, whether 1926 COXGRESSION AL RECORD-HOUSE 2011

England will be able to pay more or less, even though Eng­ Mr. MOORE of Virginia. He ~as appointed by President land's debt has bven funded. Suppose we had considered all Wilson. that before making these loans. Suppose we had calculated :Mr. LAGUARDIA. Yes; he was appointed by Pre ident Wil­ then as the opposition to this bill is doing now. Suppose we had son-and no better American than Ambassador Page ever rep­ carefully computed interest and compound interest. Suppose resented his country in Europe. [Applause.] we had said to Italy and France, " Yes, we know you need the Many times have I seen Ambassador Page pace his room, money ; but what guaranty will we have that you will pay us wondering what would happen next. I was with Ambassador back with interest?" And if at the time \"fe did not receive Page when he was anxiously awaiting wireless reports of a assurance which would satisfy a stony-hearted money lender, grain convoy which had been reported as having passed Gib­ we had not made the loan-what then? We had already de­ raltar but had not arrived at de tination. He knew that if clared war. This was April, 1917. Suppose we had refused that convoy did not reach port all would be to loan a cent, saying " No; we will stand our burden of the without food. But two ships of the convoy made port, and in war ; we will pay our expenses; we will feed our own Army ; 24 hours that wheat was out of the ship through the mills into we will send them across in our own ships ; we will not lend bread and distributed in the Province of Naples and the south­ you a cent because we fear you will not be able to pay us in ern part of Italy. I have seen the Anzaldo, Caprone, and other full with interest to the last penny." Do you know what factories held idle for lack of raw material. Many millions of would have happened? I will tell you what would have hap­ dollars of material purchased by Italy never reached there, but pened. We did not get our troops over until 1918. The bulk went to the bottom of the sea as a total loss, a war loss which of our Army was not over until July and August, 1918. The was as much ours as theirs. I heard Ambassador Page many Army as a whole was not ready, trained, or equipped to fight times say: until late in August of 1918. The war would have ended in the Italy is ruined-win or lose-if the United Stutes ever exacts all of winter of 1917 with a complete defeat of the allied forces. The the money with interest it will do more damage to Italy than th'} Italian line which held at the Piave after the retreat from Austrian cannons can po si'bly do. Caporetto would not have been able to hold the Austrian forces. The west front would have broken a few days later. He knew the economic situation of that country better than Remember, although we were not yet fighting, we had already any other American, and it seems that it is his spirit that urges declared war·; and to-day, instead of figuring how much we can me to make this appeal to my colleagues who can not see the properly extend to poor Italy, we might be pleading for leni­ bigger thing, the nobler thing, the Christian thing, as more ency in the settlement of a war indemnity to the imperial important than the material figuring of dollars and cents in the Kaiser. [Applause.] way of interest. Mr. HILL of Maryland. Mr. Chairman, will the gentleman I wish you gentlemen could have seen with what expectation yield? and anticipation the first small detachment of American aviation students were recei"ved in Italy. I wish you could have seen :Mr. LAGUARDIA. Certainly. the relief which the declaration of war against the.Imperial Gov­ Mr. HILL of Maryland. I think it should be placed in the ernment of Austria brought to the Italian people. I wish you gentleman's speech, although he has not mentioned it. The could have seen the expressions of love and affection which the gentleman knows the Italian situation, and he left his seat in Italian people displayed to American troops. I wish· you could It Congress here and entered the war. ought to appear before have seen in the many humble hovels of the poor peasant the thi , although the gentleman did not say that. American flag draped over the figure of the Saviour, where the Mr. LAGUARDIA. Well, I only did my bit. family kneel to say their daily prayers. There sits on the floor I have always considered these loans as part of the cost of of this House at this moment the gentleman from Minnesota the war. We got into it, we could not afford to lose, and it was [Mr. FuRLow], who served in the same detachment with me. neces ary for our allies to hold the lines until we were able to He can tell you of the hope the Italian people placed in the go over and fight. Why, gentlemen, you figure interest now. people of America. He can tell you that had it not been for One hour bombardment on the Atlantic coast would have cost the United States entering the war and the confidence of the you a hundred times more than the amount of interest which Italian people in the people of America to stand by them after we are waiving in this settlement. This landing of enemy the war Coperetto would have spelled the end of the World troops on American territory wollld have cost us a hundred War. times more than the entire foreign loan, interest and principal. Congressman FuRLow, then Lieutenant FuRLow, was with me It is a comfortable thing to fight a war on your allies' territory. when we had our first casualties. lle was with me when we That brings me to the question of reparation. It is true that buried the first American dead in Italian soil. He saw a whole Italy and France are receiving reparation . from the German population down on their knees as we brought these three boys Government, but, as I understand reparation, it is money paid to their temporary resting place. Are you going to destroy for actual damages caused by one nation to another. The these memories by the clinking of an adding machine figuring reparation which Italy will receive, whether in coal or gold, interest? No; a thousand times no. from Germany, goes to pay the actual property damage suffered Much has been said about the Morgan loan. I am sure I by Italy on account of the war. The whole Province of Udine need not explain that Mr. Morgan will find no defender in me. was invaded and destroyed, hundreds of miles of railroads to:rn But I fail to see how the Morgan loan can possibly justify· up, towns blown out of existence, whole areas devastated, the opposition to this bill. If it does anything, it strengthens the same as in Belgium and France. It seems to me that it is proof absolute of the dire financial condition of Italy to-day. most ungenerous, so un-American for Members of Congress to There is not a solvent nation in the world that would have sub­ Rtand. up and say to these countries, " Yes ; your territories mitted to the exorbitant demands of the :Morgan loan. IJ.'he have been devastated, and we, 3,000 miles away, want the gentleman from Wisconsin and others have referred to the money which you received from reparations to be paid for in­ financial statement which appeared at the time that the loaa terest on the money which we loaned you. Rebuild your was announced. But surely these gentlemen have not analyzed destroyed provinces 62 years from now when you are through the figures. You will find them on page 1560 of the REcoRn. paying us interest." What does it say there? You read a lot of figures. You read Why do we want to spoil the everlasting friendship created hundreds of millions ; but they are not dollars, they are lire. with the nations of Europe during the war by haggling over Do. the gentlemen who are urging this financial statement as interest? Why do we want to destroy the act of generosity of showing the :flourishing condition of Italy know the rate of ex.. the American people at this time by ungracious speeches? If change? Do the gentlemen know that it takes about 25 lire we are to do this Christian act let us do it in a Christian and to-day to make a dollar? What is there in these figures? The kindly manner. [Applause.] Gentlemen, in voting for this estimated surplus of the fiscal year ending June 30, 1926, is measure I am not only doing exactly what I expected to do 177,000,000 lire. What does that amount to? About $7,100,000. when I voted the authorizanon of-.these loans, what I expected And that does not take into consideration payment which will to do if I lived through the war but I am doing what I believe have to be made to the United States under this settlement. It to be for the best interest of the people of the"United States. is only a budgetary balance. It does not take into consideration There is one gentle soul that I wish were alive to-day who the funded indebtedness of the Kingdom of Italy. So what is could bear witness to the extreme suffering of the Italian there in that statement that would justify the United States people during the war, one who lived through the war days in destroying everything that it stood for in its whole history and Italy and who was in a position better than· any other American now putting a weaker nation out of busine~s just to obtain to know the sacrifices and sufferings of the Italian people. interest? What did J. P. Morgan do? What did Italy get That is the distinguished . on of the State of Virginia, the Hon. from J. P. Morgan? In the :firt plac-e it did not get $100,- Thomas Nelson Page. [Applause.] He was the American am­ 000,000. The most that it got was ."S6,000,GOO. - r·am informed bas._ador to Italy. that Morgan underwrote the loan at 86 and sold. it at 94, mak- . . • 2012 CONGRESSIONAL RECORD-HOUSE JANUARY 13 ing about $8,000,000 net; but Italy only got $86,000,000, and will precious lives and a vastly greater expenditure of money. I ltave to pay 7 per cent on $100,000,000. can not, in the brief period that is allotted to me, more than Instead of criticizing we ought to apologize to Italy. [Ap­ sketch an outline of the case which I _should like to have pre­ plau ·e.] If Italy was not hard up, it would not oo compelled sented to you, and, therefore, Mr. Chairman, I ask permission to resort to a Shylock bargain of this kind. But since when to extend what I shall say to-day at greater length in the is the dire necessity of borrowing money a proof of prosperity? RECORD. [Laughter.] Had Italian bankers made a loan of $100,000,000, The CHAIRMAN. The gentleman from Massachusetts asks then indeed would it be proper to sa~ that Italy needs no help unanimous consent to revise and extend his remarks in the from the United States. [Applause.] REco&n. Is there objection? I feel sorry for any nation that is compelled to discount its There was no objection. notes at 86 and pay interest on 100 at the rate of 7 per cent, Mr. ANDREW. Most of the discussion has proceeded on but do not blame the poor debtor for that. the assumption that our Government's foreign debts are all Permit me to state to the distinguished floor leader of the of them without distinction, like any other kind of debts, and Democratic Party that he finds himself in a conflicting position that all of them bear the same moral as well as legal obliga­ when he speaks of the needs of the farmers. Only a few days tion. There are many, however, who question the validity of ago I pleaded with him on the floor of the House to help me that assumption as applied to certain of the debts and believe and some of the progressives in the House to prevent cutting that just settlements with some of the countries and our own clown the surtaxes to almost nothing. How can the gentleman country's reputation for fair dealing are involved in the issue. or anyone el se who voted for a 50 per cent reduction on incomes No one doubts that the debts of most of the debtor coun­ over $1,000,000 stand on the floor of this House and say that tries and some of the debts of all the debtor counh·ies-those we can not afford to waive interest, even though by demanding arising from loans made after the armistice for purposes of interest we may crush a sister nation. relief and reconstruction-are assimilable to ordinary debts In talking about taxe permit me to read from the commit­ and involve the same obligations. But we can not overlook tee's report a table showing the great burden imposed upon the the fact that a very large proportion of what were technically Italian taxpayer, e pecially the man with small earnings: loans were essentially payments made by our Government for service rendered ; and for these, no matter what may be their Income taxes documentary form, the moral right to demand reimbursement is, to say the least, doubtful. In order to appreciate this, we Income have only to recall the circumstances under which they were Italy Belgium France England ~~~ made. As a good deal of time has elapsed since then, you will ------.....---1----1------perhaps pardon my attempt to refresh your memories of those $1,000------$189. 21 $29.15 $48.99 0 0 circumstances. I shall recount only the bare facts and trust $2,000.------392. 18 107.70 174. 65 $67.50 0 $3,000.------699.30 238.45 348.00 202.60 $7.50 to your individual recollections of what happened nine years 812.18 413.35 669.40 382.50 22.50 $~,()()() __ ------37.60 ago to supplement them. $5,000 ______------1, 025.06 6111.90 838.75 787.50 Until the World War became our war the United State.q Treasury had lent nothing-not a cent-to Belgium, France, I know of no figures which can better portray Italy's finan· Italy, Great Britain, or any other country engaged in that cial condition than the present rate of exchange of Italy's war. It was during the first week of April, 1917, that the currency. In normal times the Italian lira was worth 19.3 great decision was made by Congress on the advice of the cents; in other words, about 5lire to a dollar. To-day it is worth President. In this Hall at that time he voiced the country's 25 lire to a dollar. That means that the Italian currency was will in pledging to the task " our lives and our fortunes, every­ 500 per cent higher at normal than it is to-day. thing that we are, and everything that we have." We could If this settlement is to be ratified, let us do it cheerfully and not send men to the front at once, for we had only a 11altry let us carry out what I know is the wishes of the American number who were trained and prepared; and although we et people to help the Italian people to the fullest measure of our to work with fabulous zeal to get vast numbers ready, it was ability to do so. evident that many months-at least a year and probably Let us not take all the good out of it by what we may think more-would pass before we should have troops to take part or feel about the kind of government they may ha \e over there. in the war in which we were already launched. But if we had The Lord knows I have been tryi~ to make my own Govern­ no trained soldiers, we had factories and mines capable of ment a little more liberal, and I am in a lonesome minority. producing the supplies required by war; and within little more [Laughter and applau e.] When we do this let us do it gra­ than a week after the declaration a bill had been voted by ciously and let our whole hearts go with it as a gift from the Congress to make these supplies available to the armies theu American people to the people of Italy, and we have no better in the field. friends in the whole world. [Applause.] This act began with the words- Mr. MILLS. Will the gentleman yield? Mr. LAGUARDIA. Yes. For the purpose of more effectually providing for the (our) national Mr. MILLS. I would like my colleague from New York to security and defense, and prosecuting the (our) war- answer one question. He gave the figure $ 6,000,000 as the And it authorized the Secretary of the Treasury to establish amount Italy received from this loan? credits for governments- Mr. LAGUARDIA. That was my information. then engaged in war with the enemies of the United States. Mr. MILLS. I would like to know whether he is quite sure of that figure? The act was intended to make possible our immediate par­ Mr. LAGUARDIA. I got it from a friend who said he knew, ticipation in what was now our war, and the credits· were but I will say it was not a Member of the House. authorized in order to place at the disposal of the armies Mr. MILLS. I will ay to my colleague from New York that associated with us in the ordeal the iron, steel, copper, chemi­ the information I have, which I believe is accurate, is to the cals, shells, rifles, powder, explosives, and other supplies which effect that the figure was considerably higher than that. we had or could produce in abundance and which they could 1\ir. LAGUARDIA. Of course, if the gentleman has accurate use in holding or pushing back the enemy. figures, I will amend my figures and take the correct 1·ate. The character and purpo ~ e of this act are so crucial for the Mr. GREEN of Iowa. Mr. Chairman, I yield 15 minutes to understanding of the whole question of what are culled " the the gentleman from Massachu etts [~!r. A:-~nREwl. allied debts " that I ask your indulgence if I recall to your Mr. ANDREW. Mr. Chairman and gentlemen of the com­ memory a few of the things said on the floor of this Ilouse mittee, I had asked for and hoped to be allotted a longer time and of the Senate when the bill was under discussion. I will to speak on this question, because throughout the many hours cite only the words of influential Members, whose reputation of debate, and until the last speaker addressed the committee, and standing are known to you all, men from Ea t, We t, no one, so far as I can recall, has more than alluded to what, North, and Sohth, irrespective of whether they were Republi­ in my judgment, is the most important aspect of the question of cans or Democrats. There were no sectional or party lines in the foreign debts, namely, their origin. Mo t of those who those days when the country faced war. I think that you will have spoken during this time have treated these debts as if be interested to hear some of the opinions expressed at that they were, all of them, simply ordinary debts, and yet a very time, for they have a bearing upon the questions we face large proportion of the debts were based on loans which to-day. primarily were payments for services rendered to our coun­ Mr. Mann, of Illinois, stated the case very clearly on Aptil try, payments made by the United States to the other coun­ 14, 1917: tries associated with us in the war for very important serv­ We are not prepared to place men in the field. We are not pr~ ices, payments for services which saved our country ,many pared to fight with our Army. We are not prepared to do very much 1926 CONGRESSIONAL RECORD-HOUSE 2013 with our Navy; not because we do -not have some Navy but because And again, on the same day, Mr. MADDEN said: there is little opportunity for the Navy to engage in actual war at If the men -who have not the money and who are able to fight are this time. • • The only way_left to us is to help finance tbose willing to fight and offer their lives for the preservation of American nations who are fighting our enemy. • • • I think it is our honor and for the liberty of the world, then the men who are not able highest duty in the making of war to give aid to those who are to fight but who have had the good fortune to make money ought to fighting the enemy against whom we have declared war. help to pay the bill. • • • Everyone knows that we will not have 'l'hen he added: an army in the field for a year, or more than a year, and our duty to I only hope and pray that the aid thus given may be effectual posterity and to liberty is to do e\erything we can to-day to win victory enough to end the war before we send our boys to the trenches. for the American people and for the liberty of the world. Let me quote next Mr. Fordney, of Michigan: Mr. Miller, of Minnesota, asked: My idea is that those people are much in need of money to prosecute Do I understand the gentleman to mean th~t these loans we are going this war. There is no other object on the face of the earth in the to make are not to be repaid? minds of the American people in loaning European nations this money. And Mr. MADD~ replied: Theil' only pUl'pose is to aid them in the best way possible to fight our I would not care whether they were repaid or not. We are starting battle across the sea without calling upon our men to go there. out to win a victory, as I understand it, to maintain American rights; And now Mr. Mondell, of Wyoming: and if we can maintain American_rights by furnisbing money to some­ · We can not say and we shall not say that we will not send our body willing to fight our battles until we are prepared to fight those battles for ourselves we ought to do it. forces to any battle front where they may be needed to accomplish the pur-pose of the declaration of the Congress; but we sincerely hope Mr. Moore, of Pennsylvania, inquired: that we shall not be called upon to do that to the extent of sending The gentleman knows that if the foreign governments do not pay men to fight overseas. But we can effectively and in the immediate the money they borrow from us the people of the United States will future arm and strengthen and support those who are, since our decla­ have to pay it? ration of war, fighting our battles. '1.' hey have already been heartened and strengthened by our declaration of participation in the conflict, and And again Mr. MADDEN replied : if we can hearten and strengthen them further by lat·ge supplies of I am one of the American people who is ready to pay my share of funds nnd strengthening of credit it is our duty and to our advantage the obligation, and I shall have to pay as much ot the money that is to do so. to be raised in taxes as most of the men in the United States will That is what three Republican leaders thought. Let us pass have to pay, and I am ready to do it to the extent of every dollar to the other side of the House. Fir t, Mr. Kitchin, of North I own. Carolina, chairman of the Ways and Means Committee: What was said in the Senate was very like what had been You will understand that they will be fighting with our money their said in the House. I will quote only a few passages, and first battles, and we will be fighting with our money our battles, too. of all from the then chairman of the Finance Committee, Sena- tor SIMMONs, of North Carolina: ' _ And he added, perhaps as an additional incentive- Mr. President, we have not the men to send over there at present to We are of the opinion that most of this money that we will loan to .help fight our battles; our Navy possibly can be of but very little use the Allies for the purchase of their bonds will of necessity have to be in present conditions. It will be long, weary months of waiting before expended in the United States. we shall be able to render much assistance to our allies in the field. Mr. Fitzgerald, chairman of the .Appropriations Commit­ The help this bill offers is an earnest and a guaranty which cru·ries hope tee, did not seem to be very much concerned about eventual and assurance of greater assistance and helpfulness in the future. It payment. He said: will assure them that in this great cause we stand ready to risk life and fortune. LEC"t us do this heartily, cordially, unanimously, and I should gladly vote to give $6,000,000,000 to the nations arrayed without hesitation; let us do it in the spirit of men who thoroughly on the same side with us if we could win tbis war without sacrificing understand and comprehend the -great cause in wbich we are fighting, American blood and American lives. I have little sympathy with the the great thing that we are undertaking, and who are entering into suggestion that -possibly we will not get our money back. I care not it without thought of profits, without thought of financial loss, without so much if we do if American blood and American lives be preserved thought of the bodily discomfort, without thought of the sacrifice, but by the grant of the money. ready and willing to make every sacrifice. Mr. RAINEY evidently did not consider the credits authorized A little later Senator McCumber, of North Dakota, who by the bill as ordinary loans. He said : subsequently became chairman of the Finance Committee, spoke We are not making this loan for the purpose of making an invest­ as follows: ment of our funds. We are making tbis loan in order to further our While we are recognizing that we are putting $7,000,000,000 into the interests primarily In this World War, and from that moment when battle, we must not fall to recognize that we are not as yet putting in the Congress of the United States declared that a state of war existed a single one of our American soldiers, while blood is being poured out between this country and Germany every blow struck at Germany by by our allies in uns~ted measure. • * It is probably true that any of her enemies was struck also in our interest. more than a quarter of a mlllion men are going down to death or are being wounded or captured every month during the contest. There­ Now, listen to 1\Ir. LAGUARDIA, of New York, who, as he said, fore, while they are suffering to that extent, we ought to be mighty did not figure on the complete restitution of the $3,000,000,000 liberal in the expenditure of money when we can take no part in the loan to be made to foreign governments : real battle, which to-day is the battle of the American people. Yes; I believe that a good portion will be in due time returned, but Let me quote next from the present chairman of the Finance I am certain that some of it will have to be placed on the profit-and-loss Committee, Senator SMooT, of Utah: column of Uncle Bam's books. Let us understand that clearly now and not be deceived later. Even so, if tbis brings about a speedy termi­ The $3,000,000,000 which we are proposing to raise by a bond issue nation of the European war and permanent peace to our own country, for the purpose of advancing it to the Allies, I believe, Mr. President, ft is a good investment at that. will ali be repaid; but if it should not be, or if not one penny of it is returned, I wish to say now that every penny of it will be expended And last of all, so far as the House is concerned, I want to for the defense of the principles in which we believe and which we is quote from another distinguished Member, who happily also entered the war to uphold. Mr. President, I think that every dollar still with us and held in the highest honor, Mr. MADDEN, of Illinois: that will be expended under the provisions of this bill, if it is expended honestly, will be for the benefit of the United States, whether spent We have alreacly declared war, and we are not prepared to begin to by us or by the Allies. - - fight the war we have declared. If we can find somebody else to fight tht> war for us with our money we ought not to hesitate to grant them The junior Senator from Iowa, Senator Kenyon, also spoke the credit which they want and must hav<'. There is no way to w1n on that day, and among other things that he said was this: this war except by men and money. We are not prepared to furnish I want to say this for myself, Mr. President, that I hope one of the men to-day, and somebody else is prepared to furnish the men it these loans, if we make it, will never be paid and that we will ne>er we furnish the money. I do not agr~ with the statement that we are ask that it be paid. We owe more to the Republic of France for what furnisbing this money for somebody else to wage war on their own it has done for us than we can ever repay. • I never want to account, but we are doing our part to wage the war in which we are see this Government ask France to return the loan which we may make engaged. to her. 2014 CON GRESSIO~ _A_L REOO RD-HOTJSE J .AXU~ RY 13

Finally, a word from the senior Senator from Iowa [Senntor . T~ese a~e considerations, my colleagues, for us to remember Cu :~n.nxs] and I think you will agree that he displayed not m d1scussmg the return of advance made in 1917 and 1918 only insight but a fore ight that places him in the ranks of the to our brothers in arms of Italy and Belgium, and to lJe re­ prophets. He said : membered, also, later on when ·we di:-;cuss the advances made I am petfectly willing to give to any of the allied nations the money to France during the same period. These advances were uot which they need to carry on our war, for it is now our war. I would regarded at the time as ordinary borrowings. They were vir­ give it to them just as freely as I wouJd vote to equip an army or to tually our o~ly substantial contribution to the carrying on of maintain a navy of our own; but I shrink from the consequences that o~ w~r durmg nearly three-quarters of the period of our par· will. in all human probability, flow from the course which is sug­ tlcipatiOn. They were the means of Fril, in this hour of thE.>ir peril, when they committee had had under consideration the bill (H. R. G773) arc fighting our battle along the battle fronts of Europe. France did to authorize the ettlement of the indebtedness of the Kingdom not treat us that way 140 yE.>ars ago, when our crE.>dit was gone, when of Italy to the United States of America and had come to no it cost $150 of American currency to buy a bushel of corn, when it cost re ·olution thereon. $2,000 of Amel'ican currE.>ncy to buy a suit of clothes. Mr. GREEN of Iowa. l\Ir. Speaker, I would like to see if we can not agree on the time for a limit to general debate. Possibly, indeed, gentlemen, it is the difference between Mr. COLLIER. What time does the gentleman sugge. t? "Philip drunk and Philip sober." [Laughter and applau:e.] l\Ir. GREE~ of Iowa. I suggest that general debate close I would rather appeal to the gentleman in his first than in his to-morrow at 3 o'clock. present state. I do wish my colleagues, that not only the gentle­ l\lr. COLLIER. I di like Y"ery much not to be able to agree man from Illinois, but all the Members of this Honse on this \\ith my friend on a question like this, but I have requests for occasion could be under the influence of some of that wine of con'iderable more time than tllat from l\Iembers who want a noble spirit and sentiment which animated the discussions in few moments only. While there has been liberal debate on the this House on that earlier occasion. bill, we must remember that the debate has been confined I hope I yield to no man in a generous regard for my coun­ largely to a few l\lembers and mainly to the Committee on try's best interests, but I set more store upon her honor and "\Yays and Means. I would like for the gentleman to be more fair name than I do upon her mere material interests. I am liberal in his time, although I do not want to ask for too much. more concerned with having her lleld in high esteem as the l\lr. GREEN of Iowa.. Would not the gentleman be willing fairest, the most generous, the most ma.gna.nimou. , the most to meet at 11 o'clock to-morrow? loyal of all the nations of the world tllan as one where cold Mr. COLJ~IER. I am always ready to meet at 11 o'clock. business and business considerations must preY"ail over all else. 1\Ir. G.d.RRETT of Tennessee. I am reluctant to object to I hate to see her drop from her proud estate as the loyal friend that, but I want to call attention to this situation: There are and ally of those with whom slle fought shoulder to shoulder many committees at work, as the gentleman lmows, and of in the war to that of their mere business associate. course immediately on meeting at 11 o'clock the point of no Let us get on with this measure and adopt it. There can quorum in all likelihood will be made, and many of the com­ be no question but that we bould ratify this settlement, and mittee will be inconvenienced. I would like to say this: So then let us go on and make as prompt a settlement witll France far as I know about the state of public business, there really is as we can. And I venture the hope that we shall be as liberal no reason why debate should be ru hed along on this bill. with France as we are in this settlement with Italy, for France, I know the strain under which the gentleman is laboring, indeed, has a peculiar claim upon our consideration. but I appreciate the fact that gentlemen on the committee Mr. GARRETT of Tenne~·see. Will the gentleman yield? are anxious to get this matter forward. It is perfectly natural 1\Ir. WAINWRIGHT. I will. that the chairman of the committee and the members of the Mr. GARRETT of Tennessee. The gentleman has referred committee should be anxious to get the bill behind them so to whnt the gentleman from Illinois [Mr. RAI~EY] said in re­ that they can attend to other duties. But this is an extremely gard to the treatment that France accorded us. In justice to the important matter, and the debate has been of a very high class. gentleman from Illinois, who i not now present, i' it not a fact It has been confined to the subject and is intensely interesting. and common history that we repaid to France dollar for dollar In the present state of the public business and in the present all that we borrowt>d from her? stage of the session I really do not see the necessity for ~lr. WAINWRIGHT. Ko: I understand that we returned hurrying so much. n considerable amount, but there "·as a large proportion of the 1\fr. GREEN of Iowa. Mr. Speaker, I shall withdraw botl1 amount we receiY"ed from France-! think it was an amount we requests for this evening, but I must ask the gentleman from received from the Crown of France--that was not repaid, but l\lissi sippi [:\Ir. CoLLIER] to shorten the time on his side in was treated as a gift. There was an interesting document some sort of way. I do not want to be obliged to move to shown me in Paris la~t snmmE'r by our amba ~ador showing close debate. He knows that. the expression of gratitude on tile part of Franklin. our repre­ l\lr. COLLIER. I know that, and the gentleman from Iowa sentati-re. for the \'ery liberal and generous treatment which has. always been very liberal and is one of the easiest men to "-e received at thnt time. get along with that I e\er knew. Mr. E'ISH. If the gentleman ""ants ·the information, the l\lr. BLANTON. Mr. Speaker, will the gentleman yield? Treasury has a 4 or 5 page document showing that the loans 1\Ir. GREEN of Iowa. Yes. were paid buck, except one small loan-all the principal and 1\fr. BLANTON. The gentleman is very fair always. This nine-tenths of the intt>re~t paid in full. is just as important to each one of the 435 Members of the The CHAIRMAX. The time of the gentleman from New llouse as it is to the gentleman from Illinois [l\Ir. RAINEY] York has expired. who took up two hours an<~ a half in a1·gument, or the gentle. :Mr. GREEN of Iowa. I yield to the gentleman three minutes man from Ohio [l\Ir. BURTON] who occupied an hour. The more. re. t of us want an opportunity to express our views on thi.:J Mr. ANDREW. I ha\e reeently looked into the matter which bill in just a few minutes time, and I think gentlemen ought to the gentleman from Tenne~-;ee asked about, and I think it is be liberal in the debate. true, as the gentleman from New York states, that the United Mr. HILL of l\Iaryland. l\Ir. Speaker, will the gentleman States did return all of the loans which France made, except a yield? certain amount of idert' t was remitted, but we took no ac­ :Mr. GREEN of Iowa. Yes. count of the gifts which \Vere made by IJ'rance to thi. country Mr. HILL of Maryland. If we close general debate at 3 at that time, and we took no account of the ·mst expenditure o'clock or 4 o'clock to-morrow afternoon, how long does the made by France in ending an expeditionary force over to this gentleman think debate will last under the five-minute rule? country. l\Ir. GREE~ of Iowa. Not very long, as there is but one l\Ir. GARRETT of Tennes!'ee. France herself was at war at section of the bill. the time with Great Britain. l\Jr. HILL of Maryland. I simply wanted to point out that Mr. ANDRE\\. A.ll(l it cost her between $230,000,000 and the five-minute rulf' hardly applies to this case at all. $770,000,000. l\Ir. COLI.IER. With the exception of one membPr of tha 1\lr. WAINWRIGHT. I was not intending to discuss the committee, the RPeeches on the Democratic side will be very settlement to be made with France, except to express the hope short, indeed. We are through with long speeches except fo'r that we shall be as liberal with her. I want the committee to one member of tile committee, who will speak something like understand that I am intending to discuss the Italian debt 40 minutes or au hour. settlement, and that isf':ue alone. I am glad to have the state­ Mr. GREEN of Iowa. The gentleman knows that I am one ment from the gentleman from Massachusetts, who is more of the Members of the Hou:·e who 13 very indulgent in the~e 1926 CONGRESSIONAL RECORD-- HOUSE 2017 matters. However, I hope the gentleman will be in a frame to the Committee of the Whole House on the state of the Union. of mind to-morrow to agree with me on the time to close Mr. LUCE: Committee on the Librai'y. H. J. Res. 112. A debate. joint resolution establishing a commission for the participation 'Mr. COLLIER. I shall agree to close debate as soon as I by the United States in the observance of the one hundred and can after we have been given a cha!J.ce to talk. fiftieth anniversary of the evacuation of Boston by the British Mr. CRISP. I want to express the hope that the chairman troops, authorizing an appropriation to be utillzed in connection will allow us as liberal debate as he can, because as a member with such observance, and for other purposes; without amend­ of the commission I want the House to have full opportunity ment (Rept. No. 88). Referred to the Committee pf the Whole to debate upon it. I do not want anyone to think that he has House on the state of the Union. been cut off without a chance to debate. Mr. PARKS: Committee on Interstate and Foreign Com­ Mr. MADDEN. The gentleman thinks the more debate there merce. H. R. 7484. A bill granting the consent of Congress to is the easier victory he will have? the State Highway Commission of Arkansas to construct, main­ LEAVE OF ABSENOE tain, and operate a bridge across Red River near Fulton, Ark.; with an amendment (Rept. No. 85). Referred to the House By unanimous consent, leave of absence was granted to­ Calendar. Mr. SoMERS of New York, for an indefinite period, on ac­ Mr. BURTNESS: Committee on Interstate and Foreign Com­ - cotmt of the serious illness of his mother. merce. S. 1267. An act to extend the time for the completion Mr. BANKHEAD, for an indefinite p"eriod, on account of illness. of the construction of a bridge across the Columbia River .ADJOURNMENT between the States of Oregon and Washington, at or within 2 l\1r. GREEN of Iowa. Mr. Speaker, I mo\e that the House miles westerly from Cascade Locks, in the State of Oregon; do now adjourn. without amendment (Rept. No. 86). Referred to the House The motion was agreed to; and accordingly (at 5 o'clock and Calendar. 10 minutes. p. m.) the House adjourned until to-morrow, 1\Ir. MERRITT: Committee on Interstate and Foreign Com­ Thursday, January 14, 1926, at 12 o'clock noon. merce. H. R. 6234. A bill to authorize the department of public works, division of highways, of the Commonwealth of EXECUTIVE COMMUNICATIONS, ETO. Massachusetts, to construct a bridge ac~:oss Palmer River; with an amendment (Rept. No. 87). Referred to the House Cal­ Under clause 2 of Rule XXIV, executive communications endar. were taken from the Speaker's table and referred as follows : 274. A letter from the Acting Secretary of Commerce, trans­ CHANGE OF REFERENCE mitting statement of disbursements, required by section ' 193 of the United States Revised Statutes, during the period from Under clause 2 of Rule XXII, committees were discharged December 1, 1924, to November 30, 1925, from contingent and from the consideration of the foUowing bills, which were general expenses, Department of Commerce, Bureau of Stand­ referred as follows : - ard , Bureau of Mines, and the Patent Office; also statement A bill (H. R. 3524) granting a pension to Catherine Hitch­ of typewriters and -other labor-saying devices exchanged, and cock ; Committee on Pensions discharged, and referred to the tatement showing travel pel'formed by officers and employees Committee on Invalid Pensions. (other than special agents) for the :fiscal year ended June 30, A bill {H. R. 7111) for the relief of Henry 0. Davidson; 1925; to the Committee on Appropriations. Committee on Claims discharged, and referred to the Committee 275. A letter from the Secretary of the Treasury, transmit­ on Naval Affairs. ting a draft of a bill to authorize the transfer to the Treasury Depa1·tment the land known as the Cumberland Sound, Fla., PUBLIC BILLS AND RESOLUTIONS Quarantine Station; to the Committee on Military Affairs. Under clause 3 of Rule XXII, public bills and resolutions 276. A lettel' from the Secretary of the Treasury, transmit­ were introduced and severally referred as follows : ting a draft of a bill "to authorize the destruction of paid By Mr. FRENCH: A bill (H. R. 7554) making appropriations United States checks"; to the Committee on the Judiciary. for the Navy Department and the naval service for the fiscal 277. A letter from the Secretary of the Treasury, transmit­ year endipg June 30, 1927, and for other purposes; committed ting a draft of a bill "to authorize the transfer of a portion of to the Committee of the Whole House on the state of the La Costa Island, Fla., to the Treasury Department for quaran­ Union. - tine purposes"; to the Committee on Military Affairs. By Mr. PARKER: A bill (H. R. 7555) to authorize, for the 278. A communication from the President of the United fi cal year ending June 30, 1928, and June 30, 1929, appropria­ States, transmitting a supplemental estimate of appropriation tions for cai'l'ying out the provisions of the act entitled "An act for the fiscal year ending June 30, 1926, to remain available for the promotion of the welfare and hygiene of maternity and until expended, for the War Department, $20,999, for complet­ infancy, and for other purposes," approved November 23, 1921 ; ing acquisition of lands at Camps Custer, Dix, and Grant (H. to the Committee on Interstate and Foreign Commerce. Doc. No. 210) ; to the Committee on Appropriations and ordered By 1\Ir. REID of Illinois: A bill (H. R. 7556) providing fer to be printed. the erection of a public building at the city of ·wheaton, Ill., 279. A communication from the President of the "lJnited for the use and accommodation of the post office and other States, transmitting a supplemental estimate of appropriation Government offices in said city; _to the Committee on Public for the :fiscal year ending June 30, 1926, to remain available Buildings and Grounds. until June 30, 1926, for the War Department, $3,000 (H. Doc. By Mr. ALMON: A bill (H. R. 7557) to prohibit the printing No. 211) ; to the Committee on Appropriations and ordered and sale of enyelopes by the Post Office Department, or by any to be printed. other department or agency of the Government, for the purpo. ·e 280. A communication from the President of the United of sale for the Post Office Department; to the Committee on the States, transmitting a supplemental estimate of appropriation Post Office and Post Roads. for the legislatiye establishment, House Office Building, for AI o, a bill (H. R. 7558) granting allowances for rent, fuel, the fiscal year 1926, in the sum of $12,312.63 (H. Doc. No. 212) ; light, and equipment to postmasters of the fourth class, and for to the Committee on Appropriations and ordered to be printed. other purposes; to the Committee on the Post Office and Post 281. A communication from the President of the United Roads. States, transmitting an estimate for the United States Veterans' By Mr. BACON: A bill (H. R. 7559) to amend section 4 of Bureau for the fiscal year ending June 30, 1927, for payment the immigration act of 1924; to the Committee on Immigration into the adjusted service certificate fund, Veterans' Bureau, and Naturalization. $116,000,000, to be substituted for the estimate of $140,000,000 By 1\Ir. BOYLAN: A bill {H. R. 7560) to authorize the Presi­ (H. Doc. No. 213) ; to the Committee on Appropriations and dent of the United States to take temporary control of and ordered to be printed. operate anthracite coal mines in certain emergencies; to the 282. A letter from the Secretary of the Navy, transmitting a Committee on Interstate and Foreign Commerce. draft of a bill " For the relief of Mrs. Enriqueta Koch v de By 1\Ir. LEAVITT: A bill (H. R. 7561) to provide for the Jeanneret," of Valparaiso, Chile; to the Committee on Claims. setting apart of certain lands in the State of California as an addition to the Morongo Indian Reservation; to the Committee REPORTS OF COMMITTEES ON PUBLIC BILLS AND on the Public I,ands. RESOLUTIONS By Mr. VESTAL: A bill (H. R. 7562) to amend section 4 8 Under clause 2 of Rule XIII, of the Revised Statutes ; to the Committee on Patents. Mr. FRErCH: Committee on Appropriations. H. R. 7554. Also, a bill (H. R. 7563) to amend section 4900 of the United A bill making appropriations for the Navy Department and the States Revised Statutes; to the Committee on Patents. naT"al service for the fiscal year end!Pg June 30, 1927, and for By Mr. WILLIAMS of Texas: A bill {ll. R. 7564) to provide other purposes; without amendment (Rept. No. 84). Referred for the purchase of a site and the erection of a public building 2018 CONGRESSIONAL RECORD-HOUSE JANUARY 13 at Electra, Tex. ; to the Committee on Public Buildings and By 1\!r. ELLIS: A bill (H. R. 7588) to extend the time for Grounds._ the refunding of certain legacy taxes erroneously collected ; to By Mr. LOZIER: A bill (H. R. 7565) providing for the pur· the Committee on the Judiciary. chase of a site and the erection of a public building at Mar· By Mr. MORIN: A bill (H. R. 7589) to amend an act celine, Mo. ; to the Committee on Public Buildings and Grounds. entitled "An act to providt! for the equitable distribution of Also, a bill (H. R. 7566) providing for the purchase of a captured war devices and trophies to the States and Territories site and the erection of a public building at Salisbury, Mo.; of the United States and to the· District of Columbia," ap­ to the Committee on Public Buildings and Grounds. proved June 7, 1924 ( 43 Stat. pp. 597-598) ; to the Committee Also, a bill (H. R. 7567) providing for the purchase of a on Military Affairs. site and the erection of a public building at Paris, Mo.; to the By lUr. BROWNE: A bill (H. R. 7590) to create and estab­ Committee on Public Buildings and Grounds. lish a municipal court for the Menominee Indians in the Also, a bill (H. R. 7568) providing for the purchase of a Menominee Reservation, in the State of Wisconsin; to the site and the erection of a public building at Monroe City, Mo.; Committee on the Judiciary. . to the Committee on Public Buildings and Grounds. By l\1r. :MANLOVE: A bill (H. R. 7591) to provide for Also, a bill (H. R. 7569) providing for the purchase of a site the purchase of a site and for the erection thereon of a public and the erection of a public building at Milan, Mo.; to the building at l\lonett, Mo.; to the Committee on Public Buildino-s Committee on Publi~ Buildings and Grounds. and Grounds. Also, a bill (H. R. 7570) providing for the erection of a By Mr. LANKFORD: A bill (H. R. 7592) to provide for the public building at Trenton, Mo.; to the Committee on Public authorization of appropriation for the purchase of a site and Buildings and Grounds. the erection of a Federal building at Lakeland, Ga. ; to the By Mr. MARTIN of Massachusetts: A bill (H. R. 7571) for Committee on Public Buildings and Grounds. the purcha e of a site and the erection of a public building Also, a bill (H. R. 7593) to provide for the authorization of at Fall River, Mass.; to the Committee on Public Buildings appropriation for the purchase of a site and the erection of a and Grounds. Federal building at Ocilla, Ga.; tQ the Committee on Public By Mr. ALMON: A bill (H. R. 7572) to amend the act en­ Buildings and Grounds. titled "An act to provide that the United States shall aid the Also, a bill (H. R. 7594) to provide for the authorization of States in the construction of rural post roads, and for other appropriation for the purchase of a site and the erection of a purposes," approved July 11, 1916, as amended and supple­ Federal building at Nicholls, Ga.; to the Committee on Public mented, and for other purposes ; to the Committee on Roads. Buildings and Grounds. By Mr. WELLER: A bill (H. R. 7573) for the better protec­ Also, a bill (H. R. 7595) to provide for the authorization of tion of aliens and for the enforcement of their treaty rights; appropriation for the purchase of a site and the erection of a to the Committee on the Judiciary. Federal building at Willacoochee, Ga. ; to the Committee on By Mr. McKEOWN: A bill (H. R. 7574) to amend paragraph Public Buildings and Grounds. A of section 14, chapter 3, of the national bankruptcy act of Also, a bill (H. R. 7596) to provide for the authorization July 1, 1898 (30 Stat. L. 544), as amended February 5, 1903 (32 of appropriation for the purchase of a site and the erection Stat. L. 279), and June 15, 1906 (34 Stat. L. 267), and June 25, of a Federal building at Broxton, Ga. ; to tho Committee on 1910 (36 Stat. L_ 838) ; to the Committee on the Judiciary. Public Buildings and Grounds. By 1\Ir. ZIHLMAN: A bill (H. R. 7575) to vacate certain Also, a bill (H. R. 7597) to provide for the authorization ot streets and alleys within the area known as the Walter Reed appropriation for the purchase of a site and the erection of a General Hospital, District of Columbia, and to authorize the Federal building at Alapaha, Ga. ; to the Committee on Public extension and widening of Fourteenth Street from Montague Buildings and Grounds. Street to its southern terminus south of Dahlia Street; to the Also, a bill (H. R. 7598) to provide for the authorization of Committee on the District of Columbia. appropriation for the purchase of a site and the erection of a By 1\Ir. MAcGREGOR: A bill (H. R. 7576) to establish a Federal building at Pearson, Ga. ; to the Committee on Public boxing commission for the Dish·ict of Columbia, and to repeal Buildings and Grounds. section 876 of the Code of the District of Columbia, and sections Also, a bill (H. R. 7599) to provide for the authorization of 320 and 321 of the Criminal Code of the United States; to the appropriation for the purchase of a site and the erection of a Committee on the Di trict of Columbia. E'ederal building at Nahunta, Ga.; to the Committee on Public By Mr. HAMMER: A bill (H. R. 7577) to repeal the act cre­ Bnildi.ngs and Grounds. ating the Public Utilities Commission of the Dish·ict of Cohrm­ Also, a bill (H. R. 7600) to provide for the authorization of bia ; to the Committee on the District of Columbia. appropriation for the purchase of a site and the erection of a Al o, a bill (H. R. 7578) to modify and amend certain para­ Federal building at Hahira, Ga. ; to the Committee on Public graphs of the act creating the Public Utilities Commission of Buildings and Grounds. the Di:trict of Columbia; to the Committee on the District of Also, a bill (H. R. 7601) to provide for the authorization ot Columbia. appropriation for the punhase of a site and the erection of a By Mr. l\IcKEOWN: A bill (H. R. 7579) to amend the prac­ Federal building at Baxley, Ga. ; to the Committee on Public tice and procedure in Federal courts, and for other purposes : Buildings and Grounds. to the Committee on the Judiciary. Also, a bill (H. R. 7602) to provide for the authodzation of By Mr. LEAVITT: A bill (H. R. 7580) to prohibit the sale appropriation for the purchase of a site and the erection of a of peyote to Indians, and for other purpo es ; to the Committee Federal building at Adel, Ga. ; to the Committee on Public on Indian Affairs. Buildings and Grounds. Also, a bill (H. R. 7581) to amend section 1 of the act of Also, a bill (II. R. 7603) to provide for the authorization of Congress of 1\fnrch 3, 1921 ( 41 Stat. L. p. 1249), entitled "An appropriation for the purchase of a site and the erection of a act to amend section 3 of the act of Congress of June 28, 1906, Federal building at Nashville, Ga.; to the Committee on Public entitled 'An act for the division of the lands and funds of the Buildings and Grounds. Osage Indians of Oklahoma, and for other purposes ' " ; to the Also, a bill (H. R. 7604) to provide for the authorization Committee on Indian Affairs. of appropriation for the purchase of a site and the erectipn By Mr. ARE!\'TZ: A bill (H. R. 7582) to authorize the coin­ of a Federal building at Blackshear, Ga.; to the Committee age of 50-cent pieces in commemoration of the completion of the Lincoln Highway and the Victory Highway; to the Com­ on Public Buildings and Grounds. mittee on Coinage, Weights, and Measures. Also, a bill (H. R. 7605) to provide for the authorization of Also, a bill (H. R. 7583) to provide for the acquisition of a appropriation for the purchase of a site and the erection of a site and the erection thereon of a Federal building at Ely, Federal building at Jesup, Ga. ; to the Committee on Public Nev.; to the Committee on Public Buildings and Grounds. Buildings and Grounds. Also, a bill (H. R. 7584) to increase limit of cost heretofore AI o, a bill (H. R. 7606) to provide for the authorization of fixed by Congress for purchase of site and erection of building appropriation for the purchase of a site and the erection of a for use of post office at Fallon, Nev.; to the Committee on Federal building at Alma, Ga. ; to the Committee on Public Public Buildings and Grounds. Buildings and Grounds. Also, a bill (H. R. 7585) to authorize the acquisition of a Also, a bill (H. R. 7607) to provide for the a uthorizntion of site and the erection of a Federal building at Tonopah, Nev.; appropriation for the purchase of a site and the erection of a to the Committee on Public Buildings and Grounds. Federal building at Hazlehurst, Ga. ; to the Committee on By l\Ir. REID of Illinois: A bill (H. R. 7586) to amend the Public Buildings and Grounds. tariff act of 1922 ; to the Committee on Ways-and Means. Also, a bill (H. R. 7608) to provide for the authorization or By Mr. HOGG: A bill (H. R. 7587) for the purchase of a site appropriation for the purchase of a site and the erection of a and the erection of a public building at Auburn; Ind.; to the Federal building at Folkston, Ga.; to the Committee on Public 9ommittee on Public Buildings and Grounds. Buildings and Grounds. ( 1926 CONGRESSIONAL RECORD-HOUSE 2019 Also, a bill (H. R. 7GOD) to provide for the authorization of By Mr. JENKINS: A bill (H. R. 7634) granting an increase appropriation for the purchase of a site and the erection of a of pension to Margaret Drummond; to the Committee on In­ Federal building at St. Marys, Ga. ; to the Committee on valid Pensions. Public Buildings and Grounds. Also, a bill (H. R. 7635) granting an increase of pension to Also, a bill (H. R. 7610) to provide for the authorization Irene Hardy ; to the Committee on Invalid Pensions. of appropriation for the purchase of a site and the erection Also, a bill (H. R. 7636) granting an increase of pension to of a Federal building at Homerville, Ga.; to the Committee James P. Dyer; to the Committee on Pensions. on Public Buildings and Grounds. By Mr. KE!\TDA.LL: A bill (H. R. 7637) granting a pension Also, a bill (H. R. 7611) to provide for the authorization of to Mary E. McCready ; to the Committee on Pensions. appropriation for the purchase of a site and the erection of a Also, a bill (H. R. 7638) granting a pension to Hanna Federal building at Lenox, Ga. ; to the Committee on Publi<~ Melissa Underwood; to the Committee on Invalid Pension. Buildings and Grounds. By Mr. MA:l'>H.OVE: A bill (H. R. 7639) granting an increase By Mr. ZIHLMAN: A bill (H. R. 7612) to amend the act of pension to Lucinda Jane Gibson; to the Committee on In­ entitled "An act to create a juvenile court in and for the valid Pensions. District of Columbia " ; to the Committee on the District of Also, a bill (H. R. 7640) granting an inCI'ease of pension to Columbia. Cora Young; to the Committee on Invalid Pensions. By Mr. NEWTON of Minnesota: A bill (H. R. 7613) to Also, a bill (H. R. 7641) granting an increase of pension to amend section 276 of chapter 12 of the Judicial Code of the Elizabeth P. Dabbs; to the Committee on Invalid Pensions. United States ; to the Committee on the Judiciary. Also, a bill (H. R. 7642) granting an increase of pension to Also, a bill (H. R. 7614) to amend section 275 of chapter 12 1\Iartela Robb; to the Committee on Invalid Pensions. of the Judicial Code of the United States; to the Committee By Mr. O'CONNOR of New York: A bill (H. R. 7643) to on the Judiciary. reimburse the Companie des Eaux de Constantinople for the Also, a bill (H. R. 76.15) to amend s-ection 89 of chapter 5 interest upon moneys advanced to the United States ; to the of the Judicial Code of the United States; to the Committee Committee on Claims. on the Judiciary. By Mr. OLIVER of New. York: A bill (H. R. 7644) for the Also, a bill (H. R. 7616) to amend section 89 of chapter 5 relief of Ralph Riesler; to the Committee on Claims. of the Judicial Code of the United States ; to the Committee By Mr. PARKER: A bill (H. R. 7645) granting an increase on the Judiciary. of pension to Catherine Dyer; to the Committee on Invalid By Mr. ARENTZ: Joint resolution (H. J. Res. 113) for the Pensions. creation of a junior college as a part of the ~public-schoo1 sys­ Also, a bill (H. R. 7646) granting an increa e of pension to tem in Washington, D. C.; to the Committee on the District Laura Smith; to the Committee on Invalid Pensions. of Columbia. Also, a bill (H. R. 7647) granting an increase of pension to By Mr. SOMERS of New York: Concurrent resolution· Nancy Cilley ; to the Committee on Invalid Pensions. (H. Con. Res. 5) to. effect mediation of the coal stl'ike; to the By Mr. SNELL: A bill (H. R. 7648) granting an increase Committee on Rules. of pension to Anna Whitmarsh; to the Committee on Invalid By Mr. BIDEDY: Resolution (H. Res. 87) appointing a clerk Pensions. to the Committee on Mileage ; to the Committee on Accounts. By Mr. STALKER: A bill (H. R. 7649) granting a pension to Sarah F. Perrigo; to the Committee on Invalid Pensions. Also, a bill (H. R. 7650) granting an increase of pension to PRIVATE BILLS AND RESOLUTIO~S Estella P. Howe; to the Committee on Invalid Pensions. Under clause 1 of Rule XXII, private bills and resolutions By Mr. STEDMAN: A bill (H. R. 7651) granting an increase were introduced and severally referred as follows : of pension to Charles A. Stockard ; to the Committee on By Mr. ACKERMAN: A bill (H. R. 7617) to authorize pay­ Pensions. ment to the Pennsylvania Railroad Co., a corporation, for By Mr. STOBBS: A bill (H. R. 7G52) granting an increase damages to its rolling stock at Raritan Arsenal, Metuchen, of pension to Maria J. Harms ; to the Committee on Pensions. N. J., on August 16, 1922; to the Committee on Claims. By Mr. VESTAL: A bill (H. R. 7653) granting a pension to By Mr. ARENTZ: A bill (H. R. 7618) granting a pension to John W. PaJll.e; to the Committee on Pensions. Henry T. Bud1er; to the Committee on Pensions. Also, a bill (H. R. 7654) granting a pension to Nancy K. By Mr. BEEDY: A bill (H. R. 7619) granting an increase of Cottrell; to the Committee on Pensions. pension to Anna E. Brewster; to the Committee on Invalid Also, a bill (H. R. 7655) granting an increase of pension to Pensions. Henry Hertzinger ; to the Committee on Pensions. By l\Ir. BRAND of Ohio: A bill (H. R. 7620) granting an Also, a bill (H. R. 7656) granting an increase of pension to increase of pension to Martha C. McBride ; to the Committee Louvernia Shepherd ; to the Committee on Invalid Pensions. on Invalid Pensions. By Mr. WHITE of Maine: A bill (H. R. 7657) granting an By Mr. BROWNE: A bill (H. R. 7621) granting a pension increase of pension to Anna L. Gagan ; to the Committee on to Elizabeth Anderson; to the Committee on Invalid Pensions. Pensions. By Mr. BACHMANN: A bill (H. R. 7622) for the relief of R. By Mr. WILLIAMS of Illinois: A bill (H. R. 7658) granting Clyde Bennett ; to the Committee on Olaims. an increase of pension to Otto G. Rice; to the Comwittee on By l\Ir. CARTER of California: A bill (H. R. 7623) provid­ Pensions. ing for the restoration of Maj. James S. Greene to the active By Mr. WOLVERTON: A bill (H. R. 7659) for the relief of list of the Army; to the Committee on Military Affairs. Harry C. Comstock ; to the Committee on Claims. By Mr. COX: A bill (H. R. 7624) for the relief of the Georgia, Florida & Alabama Railway Co.; to the Committee PETITIONS, ETC. on Claims. By Mr. DOWELL: A bill (H. R. 7625) granting an increase Under clause 1 of Rule XXII, petitions and papers were laid of pension to Martha E. Gifford ; to the Committee on Invalid on the Clerk's desk and referred as follows : Pensions. 358. Petition of Eastern Association on Indian· Affairs (Inc.), urging immediate action to control of trachoma among the By Mr. EDWARDS: A bill (H. R. 7626) for the relief of Indians ; to the Committee on Indian Affairs. lawful heh·s of Francis M. Stone; to the Committee on War 359. Petition of the board of directors of the American Sta­ Claims. tistical Association, asking Congress to consider the maj;ter of By Mr. ELLIS: A bill (H. R. 7627) granting an increase calendar reform; to the Committee on the Judiciary. of pension to Elizabeth Carroll; to the Committee on Pensions. 360. By Mr. BARBOUR: Resolution adopted by Post, By Mr. FAUST: A bill (H. R. 7628) granting an increase of No. 8, Grand Army of the Republic, of Oakland, Calif., relative pension to Mary Chafin; to the Committee on Invalid Pensions. to the use of Arlington Mansion in Arlington National Ceme­ By Mr. ROY G. FITZGERALD: A bill (H. R. 7629) for the tery; to the Committee on Military Affairs. relief of George King ; to the Committee on Military Affairs. 361. Also, resolution adopted by board of directors of Kern By lli. FULLER: A blll (H. R. 7630) granting an increase County (Calif.) Farm Bureau, urging an amendment to the of pension to Mary C. Crowder ; to the Committee on Pensions. immigration law which would permit agricultural labor to By Mr. HOGG: A bill (H. R. 7631) for the relief of Arden enter the United States during peak demands; to the Commit­ D. Green; to the Committee on War Claims. tee on Immigration. By Mr. HOOPER: A bill (H. R. 7632) granting a pension to 362. Also, resolution adopted by Western States County Offi­ Joanna B. McAllister ; to the Committee on Invalid Pensions. cials' Association, at San Francisco, Calif., petitioning Congress By Mr. JA.....\fES: A bill (H. R. 7633) granting a pension to for the continuance of Federal aid for highways ; to the Com­ Fred White; to the Committee on Pensions. mittee on Appropriations. ( 2020 CONGRESSIONAL RECOR.D-SENATE JANUARY 14 Simmons Trammell Walsh Wheeler 363. By Mr. CARTER of California: Resolution of Lyon Stanfield Tyson Warren Williams Post, No. 8, Grand Army of the Republic, unalterably opposing .Stephens Underwood Watson Willis Resolution 74, passed March 4, 1925, to restore Arlington l::lwanson Wadsworth Weller Cemetery Mansion; to the Committee on Military Affairs. Mr. CURTIS. I desire to announce the absence of my col­ 364. By llr. W. T. FITZGERALD: Petition of Walter Ahler­ league [Mr. CAPPER] on account of illness. I will let this ing and other veterans of the war with Spain, residing in announcement stand for the day. Greenville, and Darke County, Ohio, requesting the enactment Mr. SHEPPARD. I wish to announce that my colleague, of Senate bill 98 and House bill 98, granting pensions and in­ the junior Senator from Texas [Mr. MAYFIELD], is detained crease in pensions to Spani h War veterans, their widows, and from the Senate by illness. I ask that this announcement may minor children ; to the Committee on Pensions. stand for the day. 365. By Mr. FULLER: Petition of the Western Association The VICE PRESIDENT. Seventy-nine Senators having an­ of Engineers, protesting against any reduction in the appropria­ swered to their names, a quorum is present. tion for the completion of the topographical su1·vey; to the BOARD OF VISITORS TO NAVAL ACADEUY Committee on Appropriations. The YICE PRESIDENT. The Chair, pursuant to the pro­ 366. Also, petition of Department of the Potomac, Grand visions of the act of Congress of August 29, 1916, relative to Army of the Republic, protesting against the contemplated plan the appointment of the Board of Visitors to the United States to create the Arlington Mansion at the Arlington National Naval Academy, designates the junior Senator from Nevada, Cemetery into a shrine for Gen. Robert E. Lee; to the Com­ Mr. OnDIE; the senior Senator from Massachusetts, 1\Ir. BuTLER; mittee on Public Buildings and Grounds. the junior Senator from New Jersey, :Mr. EDWARDs~· and the 367. Also, petition of the Commercial Law League of America, junior Senator from Washington, 1\Ir. DILL, as members of the approving an increase of compensation for Federal judges; to board on the part of the Senate. the Committee on the Judiciary. 368. By Mr. GARBER: Resolution of Roosevelt Camp, No. 1, PETITIONS ~'\\'D MEMORIALS Department of Oklahoma, United Spanish War Yeterans, in­ 1\Ir. McLEAN presented memorials and papers in the nature dorsing in general House bill 9.8, a bill providing for increased of memorials of the Patrick Pearce Council, American A ·socia­ pensions to Spanish War veterans, IJut suggesting certain spe· tion for the Recognition of the Irish Republic, of Hartford ; cific changes therein ; to tlle Committee on Pensions. theW. A. Harty Branch, Ancient Order of Hibernians, of Kew 369. By Mr. KINDRED: Petition of the Eastern Association Britain; and sundry citizens of New London, Norwich. and on Indian Affairs (Inc.), urging the Congress of the United North Stonington, all in the State of Connecticut, remonstrat­ ·States to take immediate action toward the control of trachoma ing against the participation of the United States in the Per­ among the Indians ; to the Committee on Indian Affairs. manent Court of International Justice, which were ordered to 370. Also, petition concerning the settlement of debts of for­ lie on the table. eign countries to the Cnited States; to the Committee on For­ · He also presented papers and telegrams in the nature of eign Affairs. petitions from members of the New Haven County League of 371. By Mr. LEAVITT : Resolution of William 1\Ieyersick Women Voters, of New Haven, the World Court Committee of Camp, No. 15, United Spanish 'Var Veterans, Lewiston, Mont., Kew London, and sundry citizens of Manchester, all in the indorsing House bill 98, a bill granting pensions and increases State of Connecticut, praying for the participation of the of pensions to certain soldiers and sailors of the war with United States in the Permanent Court of International Jus­ Spain, the Philippine insurrection, and China relief expedition, tice, which were ordered to lie on the table. to certain maimed soldiers, to certain widows, minor children, lie also presented a letter in the nature of a petition from and helpless children of such soldiers and sailors, and for C. L. Canfield, member of the Connecticut Foresti·y As ocia­ other purposes ; to the Committee on Pensions. tion (American Forestry Association), of N'ew London, Conn., 372. By Mr. 1\IOO~JlJY: Petition of the Cleveland Clearing in favor of the passage of the so-called McKary-Woodruff bill, House Association, indorsing House bill 2, modernizing the providing for forest preservation. etc., which was referred to national banking act; to the Committee on Banking and CUI·­ the Committee on Agriculture and Forestry. rency. He al o presented a. resolution adopted by Frederick A. Hill 373. By Mr. OLIYER of Kew York: Petition of Frank W. Camp, No. 15, United Spanish War Veterans, of Stamford, Zedren and others, suggesting a scientific inspection of the Conn., favoring the passage of Senate bill 98, providing in­ United States patent 1355656, named "Avythistos," and the crea. ed pensions to Spanish war veterans and their ·widows, adoption by the proper naval authorities for the benefit of the which was referred to the Committee on Pensions. American marine; to the Committee on Naval Affairs. He also presented petitions and letters, in the nature of petitions, of Branch No. 86 of Hartford, Branch No. 60 of 374. By Mr. WELLER: Petition of a group of residents of Stamford, Silver City Branch, No. 227, of Meriden, and Branch the city and State of New York, who having "itnessed a public No. 1077 of South Manchester, all of the National Association demonstration of a device for preventing ships of any type and of Letter Carriers, and the Connecticut State Association of size from sinking, protected by United States patent 1355656, Letter Carriers of Greenwich, all in the State of Connecticut, October 12, 1920, and named "Avythistos" by its inventor, de­ praying for the passage of the so-called Stan.field-Lehlbach sire that said device be called to the attention of Congress and bill, providing for the retirement of employees in the classified adopted by the proper naval authorities for the benefit of the civil service, which were referred to the Committee on Civil American marine; to the Committee on Naval Affairs. Service. Mr. McKINLEY presented resolutions adopted by the Benton (Ill.) Central Labor Union, favoring the early development of SENATE waterways in the Mississippi Valley, especially the Great Lakes­ to-the-Gulf waterway and the Big Muddy Canal, which were re­ THURSDAY, Janum-y 14, 19~6 ferred to the Committee on Commerce. (Legislati1Je day of Wednesday, Janua1'y 13, 1926) Mr. LA FOLLETTE presented a resolution adopted by the common council of the city of Milwaukee, Wis., favoring the The Senate reassembled at 12 o'clock meridian, on the acquisition by the Federal Government of all coal mines and expiration of the recess. coal lands and their operation at a nominal profit for the bene­ Mr. JONES of Washington. Mr. President, I suggest the fit of the Nation, which was referred to the Committee on absence of a quorum. Mines and Mining. The VICE PRESIDENT. The Clerk will call the roll. He also presented memorials numerously signed by sundry The legislative clerk called the roll, and the followin~ Sena­ citizens of Waukesha County, Wis., remonstrating against the tors answered to their names : participation of the United States in the Permanent Court of Bayard Dill Harrison Mo es International Justice, which were ordered to lie on the table. Bingham Edge Heflin Neely Blease Fet·ris Howell Norris Mr. KE~TDRICK. I ask leave to present a very important Borah Fess Johnson Nye petition that I have just received from the South Pat·k Com~ Bratton Fletcher Jones, N. "Mex. Oddie munity Club, a unit of the Wyoming Federation of Women's Brookhart Frazier Jones, Wash. Overman Broussard George Kendrick Pine Clubs. This petition is signed by 150 women of my State, and Bruce Gerry Pittman includes a very strong and vigorous protest against any fur­ Butler Gillett t!nffionette Ransdell ther extension of the Yellowstone National Park witlliu the Cameron Glass Len root Reed, ::.\lo. Caraway Goff McKellar Reed, Pa. borders of the State. Copeland Gooding McLean Robinson, Ark. It is sufficient to say in this connectiou that the people of my Couzens Greene 1\Iclla.ster Uobinson, Ind. State are unalterably opposed to any furthE'r withdrawals of Curtis Hale McNary Sackett Dale Harreld Means Sheppard the public domain by the Federal GovernmE>nt unless the people Deneen Ha1·rla Met cal! Shipstead of the St~te give thef! consent thwugh their legislature.