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9642 CONGRESSIONAL RECORD-SENATE OcTOBER 15 who rendered war service in the United of public lands to the town of Safford, Ari:a., By Mr. GEARHART: States merchant marine during World for the use of its municipal water system; H. Con. Res. 93. Concurrent resolution urg­ with amendment (Rept. No. 1117). Referred ing the executive department to ini-tiate War II, and to provide aid for the fam­ · to the committee of the Whole House on the steps in conjunction with other interested ilies of deceased war-service merchant . to set up a supervisory in­ seamen. ternational commission to effectuate the The Committee on the Merchant Ma­ Mr. PATTERSON: Committee on War Claims. H. R. 1192. A bill granting travel immediate transfer of the Hebrew people of rine and Fisheries will meet Thurspay, pay and other allowances to certain soldiers Europe to Palestine; to the Committee on October· 25, 1945, at 10 o'clock a. m., in of the War with Spain and the Philippine Foreign Affairs. executive hearing to consider the bill Insurrection who were discharged in the By Mr. MILLER of Nebraska:

Annual rate Name of indivjdual Address Name and address of department or organization by whom paid of com- pensation

Kurt BorchardL------·---·- 6007 34th PL NW, Washington, D. C ______·_ Reconstruction Finance Corporation, Washington, D. C______$7, 240 Mabel Graham·------·-·- 1474 Columbia Rd. NW, Washington, D. C ______Smaller War P lapts Corporation, Washington, D. C ______• 2, 320 Hilda Hamilton ______705 18th St. NW., Washington, D. C------Reconstruction Finance Corporation, Washington, D. C______2, 890

BILLS INTRODUCED ' the RECORD a statement by John Ihlder,· strengthening of the moral fiber of the in-· Bills were introduced, read the first executive officer of the National Capital dividual citizen by giving him responsibility Housing Authority, in which he goes on for decisions. Eyen those citizens of other time, and, by unanimous consent, the American communities, who, being entitled second time, and referred as follows: record as being strongly in favor of suf­ to vote, .refrain from voting, have a little By Mr. CAPPER: frage for the residents of the District of struggle within themselves. As you know, S. 1480. A bill for the relief of Charles R. Columbia. I am glad to have his sup­ it is accepted as practically an axiom that Hooper; to the Committee on Claims. port for the bill introduced by Repre­ one grows only when he makes decisions; By Mr. JOHNSON of Colorado: . sentative SuMNERS of Texas and myself betweenwhiles he lies fallow. S. 1481. A bill to amend the act of June 7, which proposes to give the people of the Sincerely, 1939 (53 Stat. 811), as amended, relating to District of Columbia the right of suffrage, JOHN IHLDER. the acquisition of stocks of strategic and which so long has been denied them. ADDRESS BY GEN. MARK. W. CLARK ON critical materials for national-defense pur­ . There being no objection, the state­ ACCEPTING AWARD OF THE ITALIAN­ poses; to the Committee on Military Affairs. By Mr. JOHNSON of Colorado (for ment was ordered to be printed in the AMERICAN LABOR COUNCIL himself and Mr. KILGORE) : REcoRD, as follows: [Mr. WAGNER asked and obtained leave S. 1482. A bill to establish a Departm.ent. WASHINGTON, D. c., September 26 , 1945. to have printed in the RECORD the address of Military Security, to consolidate therein Hon. ARTHUR CAPPER, delivered by Gen. Mark W. Clark on the the m'ilitary-security activities of the United Senate Office Building, occasion of the Columbus Day celebration of States, and for other purposes; to the Com­ Washington, D. C. the Italian-American Labor Council, Octo­ mittee on Military Affairs. DEAR SENATOR CAPPER: In accordance With ber 12, 1945, Hotel Biltmore, , . By Mr. CARVILLE: our conversation yesterday, I am sending you in accepting the "" annual S. 1483. A bill to amend the act entitled this statement of my belief in favor of suf­ award, which appears in the AppendiX.) ' frage for residents of the District of Co­ "An act providing for the suspension of an­ ADDRESS BY LUIGI ANTONINI AT PRESEN- nual assessment work on mining claims held lumbia. by location in the United States, ·including I have been a resident of the District for TATION OF AWARD TO GEN. MARK W. the Territory of Alaska," approved May 3, many years. Before that I was a voting citi­ CLARK 1943; to the Committee on Mines and Mining. zen in other communities. The difference [Mr. WAGNER asked and obtained leave to By Mr. LANGER: between being a citizen with regal responsi­ have printed in the RECORD the address de­ S. 1484. A bill to. prevent the placing of bility for affairs in his community and a livered by Luigi Antonini, president of the liens upon lands of Indian recipients of old­ mere resident who is permitted only to ex­ Italian-American Labor Council, on October age assistance benefits; to the Committee on press opinions and to petition his rulers may 12, 1945, on the occasion of the presentation Indian Affairs. be intangible but it is very real. As with of the "four freedoms" annual award to S. 1485. A bill to enable the people of nearly all b,uman differences, it is one of Gen. Mark W. Clark, which· appears in the Puerto Rico to form a constitution and emphasis or of degree, but lack of responsi­ Appendix.] State government and be admitted 'into the bilit y tends to make for a negative attitude, LETTER FROM THE PRESIDENT ON THE Union on an equal footing with the States; for a tendency to avoid issues, in our case, a OCCASION OF · THE PRESENTATION OF to the Committee on Territories and Insular­ tendency to pass the buck to Congress on the Affairs. score that, after all, Congress will. decide, AWARD TO GEN. MARK W. CLARK (Mr. McCARRAN introduced Senate bill "so why should I stick my neck out." [Mr. WAGNER asked and obtained leave 1486, which was referred to the Commit­ Of course, there are many Washingtonians to have printed -in the RECORD a letter from tee on Finance, a'nd appears under a sepa­ who do all they can for their community. the President of the United States addressed rate heading.) under the limitations imposed upon them. to the President of the Italian-American But often they have a sense of futility, know­ Labor Council on the occasion of the presen­ HOUSE BILL REFERRED ing that, b.owever strongly they may be tation of the annual "four freedoms" award The biil Currency, and' FROM NEVADA STATE JOURNAL AND ance has . playe~ a very important p_art ~n r!!establishing ·and main'tain~ng _ · publi~ with respect- to all 'other legislative ques-' . LETTER FROM W. CLIFFORD DUNHAM. confidence J · in our banking s~-stem. Of tions tiefore that committee dealing with­ : [Mr. CARVILLE asked and obtained leave course, this confidence is due to nuiny fac­ the agencies 1'of whfca Mr. Crowley. was · to have printed in the RECORD an article en­ tors. · Pr-incipally, I believe,o it springs from in control, or' with which he was asso-' titled· "Nevada MineS Now Produce 22 Min­ the active in:terest which · the· Member§. of ciated,--and in his appeatances·before the erals," published in the Nevada State Journal Congress and the State bank· S\}pervisors Committee· on.Foreign Relations dealing of September·28, 1945, and a l~~ter adstressed have always .taken in our oper-ations, the co­ to-him by. W. Clifford Dunham,. which appear operation we have received from · the ba.nk~ . with lend-lease arfd pther- activities of­ in the .Appendix.) ers of . and the other ·Federal the Federal Government growing otit of· agEmqies, and. th.e complete ·acc.eptaiwe of '.tne~ .the war, -Mr. -Crowley has been con-2t1-:uc- · 'rhe PRESIDENT .pro tempore. The principle of deposit insurance by the public. tive, 'he· has been frank, he has ·never· routine mornin~ business is closed. Today there are 60,000,000 insared ' ac­ withheld from any committee anything SECRETARY FOR THE MAJORITY counts and as of June 30, 1946, the -Corpqra­ which would in any way contribute to a ­ tion ·Will have built up capital and surplus better understanding of the legislative Mr. BARKLEY. Mr. President, I send amounting to about $1,000,000,000 . . we are proposal involved. to the desk a resolution and ask for its proud of this record; particularly of the fact present consideration. that after 11 V2 years of deposit-insurance Mr. Crowley has been unselfish in his The PRESIDENT pro tempore. The protec~ion, the Federal DeP,osit Insurance service to the people of the United S ~ ates resolution will be read. , Corporati'on could liquidate today, reimburse and in his ·cooperation with the execu­ the Government the money it invested plus' ~ive and legislative branches of the Gov­ The Chief Clerk read the resolution (S. a dividend of 22 percent, and return every Res. 181) , as follows: ernm~nt. It is really a source of genu­ penny of the assessments the banks·paid to ine regret to·me that he is now departing Resolved, That Felton M. Johnston; of the Corporation. . from ·an connection with the Federal Mississippi, be, and he is hereby, elected sec­ In our country it is vital that the people retary for the majority of the Senate. have a banking system in which they can Government as an officer. have complete confidence. It is inevitable I have-known for a good many months, The PRESIDENT pro tempore. The .. that our banking structure will be subject in fact, fot a year or two, that Mr. Crow­ question is on agreeing to the resolution. to future strains. But I am convinced .that ley desired to relinquish the responsibili .. The resolution was unanimously agreed if Federal Deposit Insurance is operated in ties of public office in Washington, for to. the future according to the princ i pl~s that which, from a personal viewpoint, I could LEo- T. CROWLEY have guided it in the past, the Nation's de­ positors will have every justification for their not blame him; yet, I have been one of Mr. LA FOLLETTE. Mr. President, continued confidence. In all legislative dis­ those who urged and hoped that he Hon. Leo T. Crowley is leaving the Gov­ cussions ineident to the drafting of the Fed­ would not retire until he felt that he had ernment service today. I wish to say that eral Deposit Insurance Act, as well as iri accomplished the mission for which he in my opinion Mr. Crowley has rendered many communications to the public .and to came here in -the first instance. · the banking system, it has been made abun­ most distinguished public service. ~ His Mr.. President, I jqin ,the Senator from dantly. clear that Federal Deposit Insurance administration as Chairman of the .is dedicated so!ely to the protection of de­ Wisconsin, and all other Senators, for I Board of the Federal Deposit' Insurance -positors and that it would never be used am sure in this instance.! can speak for Corporation has been· an outstanding in any fashion for 'monetary or credit con­ them all, in wishing Mr. ·Crowley every success. He took charge of that very im­ trol or any other j:>urp·ose. If this policy success in whatever future enterprises portant responsibility . against a back­ is maintained, we can be assured ·that de­ he may undertake, and in wishing him ground of the bank failures which swept posit insurance will continue to exercise a the repose and satisfaction which come over the country in the depths· of the stabilizing influence on our economy. from the inner knowledge of public duty great depression. He has ·administered When the deposit-insurance law was draft­ well done and a mission well consum­ ed, it _was tentatively agreed that when the the Corporation without.regard to politi- . insurance fund reached $1,000,000,000 we mated. cal considerations, and in the public in­ would give consideration to a reduction in I wish Mr. Crowley good health and terest. the assessment rate: That sum will soon long life, and I hope he may find occa­ He has also had other heavy responsi­ be· reached and I believe that we could prop.:. sion frequently to come among us, not bilities. In each of them he has attempt­ erly give consideration to a possible reduc·­ only that we may have the pleasure of ed to protect the best interests of the tion in the assessment rate. his charming presence, but that we may United States. During his service Mr. As you know from your service in the Sen­ be the recipients of his able counsel and ate of the United States, Federal Deposit Crowley has won the confidence of Mem­ Insurance has always enjoyed the unanimous advice, and enjoy his friendly association. bers of the House and S~nate. His un­ support of Congress. Because of this and Mr. VANDENBERG. Mr. President, I timely departure from the public service my deep interest in deposit insurance, it is want the RECORD to. show that what the will be regretted by the Congress and the not an easy thing for me · to relinquish the able .Senator fr.om Wisconsin and ~ the people. · · · office ·of Chairman of the Board of Directors distinguished majority leader have said 9646 CONGRESSIONAL RECORD-SENATE OCTOBER 15 about Mr. Crowley is richly shared on service I would nominate him to receive say." Mr. Crowley produced at that time the Republican side of the aisle. I speak it. six telegrams he had received that morn­ with a very deep personal sense of grati­ The PRESIDING OFFICER (Mr. ing setting forth that six creameries 1n · tude in this connection, because it has DOWNEY in the chair) . The Chair rec­ Wisconsin had either been blown up or been my pleasure to be rather intimately ognizes the Senator from Tennessee. burned, or had coal oil poured upon related to Mr. Crowley'..; activities dur­ Mr. McKELLAR. Mr. President, I essential parts so as to render them use­ ing the lifetime of the Federal Deposit . want to join my colleagues who have less. "Mr. Crowley did a magnificent job Insurance Corporation. I think Mr. spoken in tribute to Mr. Crowley. I en­ in helping the people throughout the Crowley has rendered one of the great, dorse all they .have said. Northwest in those drought years, and I outstanding services of our time to the I did not know Mr. Crowley before he believe they will be eternally grateful American people. came to Washington to be the head of for what he did for them and think of ' When the Federal Deposit Insurance the Federal Deposit Insurance Corpora­ him in most affectionate terms. - Corporation was initiated, it .' was looked tion, but he has lived at the same hotel Not only that, Mr. President, but after upon as something of an experiment, in at which I live, and I have seen him he came to Washington he was ever help­ many quarters it was viewed with consid-. almost every day during the time he has ful to the new Senators from the North- erable skepticism. In the first instance, been in office here. I therefore speak ' west. Time and time again I have per­ the then President of the United States from knowledge of the man. I do not sonally called upon Mr. Crowley to help and his Secretary of the Treasury were know that I ever met a more delightful me, sometimes in connection with rather opposed to the idea. 'Therefore, this gentleman. He is courteous to a degree, trivial matter.s, and I always found the great adventure was launched not only considerate of everyone with whom he door open and found him ready with a in the midst of considerable doubt in the comes in contact, kindly, affable, and ~ I - hearty welcome when some of my con­ Government itself, but it also was believe, one of the most engaging per­ stituents and I went to see him. launched, as everyone knows, at a time sonalities I have ever known. Mr. President, I join my colleagues in when the fiscal pulse of the American As an official of the Federal Govern­ hoping for Mr. Crowley long life and suc­ people was beating very low. ment he has no superior. As my col­ cess in all his undertakings. Mr. Crowley was the original chairman leagues have said, he has met every task Mr. WAGNER. Mr. President, I am of the FDIC, and has continued in that in a fair, frank, open, sensible way, and sure·the entire membership of the Senate capacity down to this hour. I cannot · I do not believe any man in our country Committee on Banking and Currency begin to express the depth of my regret­ could have filled better or more success­ join with me when, as chairman of the that he. is leaving this responsibility to­ fully the various positions he has held committee, I expr~ss my deep regret over day. here during the last few years. the resignation of Mr. Leo T. Crowley. Over the intervening decade, as indi­ There fs another attribute of Mr. It is no exaggeration to say that Mr. cated in his letter of resignation to the Crowley to which I wish to refer. That Crowley was at the head, at one and the President, he has seen the FDIC develop is his fearlessness of speech and of ac­ same time, of more important agencies to such a point that it now insures 60,- tion. 'Just to look at him, just to hear of Government than any otber admin ... 000,000 banking accounts in the United him talk ordinarily one would not be istrator and the whole country recog­ States, and has reached such a fiscal certain that he was an absolutely fear­ nized his invaluable service not only to . status that its capital and surplus are less person. He is so gentlemanly one the country but to the· whole world. I not only $1,000,000,000, but if it were might think he was not entirely fearless. warmly endorse everything that has been liquidated today, it could reimburse the But I have heard him express his opin­ said on the :floor·of the Senate today re- , Government for the money invested plus ions and his views under circumstances specting this faithful and most able pub­ a dividend of 22 percent, and still return· when it took great courage to express lic servant. For his unusual services to every penny of the assessments the them, and he did so in· the most con­ his country, Mr. Crowley should receive banks paid to the Corporation. siderate way in the· world. He did it in the distinguished service medal, and I Mr. President, I do not think we can a way that was inoffensive, and yet he heartily join the Senator from Michigan put too much emphasis upon this sort of was as determined and as fearless as I in proposing such a medal for Mr. Crow­ a record in .the public service. The FDIC ever knew any man to be in expressing ley. has been the steel beam of P\lblic con­ himself. He bas moral courage, and that Inasmuch as our committee deals with fidence throughout the last treacnerous kind of courage is of the greatest value banking matters, including the Federal and difficult decade. I hesitate to think to any man in public life. Deposit Insurance Corporation, Mr. what might have happened in this coun­ I like Mr. Crowley personally. I ad­ Crowley appeared before it on a great try in the late thirties if there had not mire him officially. I believe he is one of many occasions. The committee has the been popular reliance upon this under­ the best we have, and he has greatest confidence in Mr. Crowley, and lying warranty that the bank accounts in . made one of the best public servants. when we knew that he was in favor of a America were safe, and that can never be Mr. President, I arose merely for the certain piece of legislation the commit­ dissociated from the utterly impartial, purpose of adding my simple tribute to tee would be 75 percent in favor of it utterly unpartial, always courageous, al­ his worth, to his ability, to his sagacity, · even before any hearings were held. ways effective management which Mr. · and to his fearlessness. Mr. Crowley has rendered most dis­ Crowley has given to this great institu- I wish for him continued success .in life , tinguishd public service. I heard some tion. · · and the best of health and happiness. time ago that he contemplated resigning, It is a source of very great regret to Mr. LANGER. Mr. President, the and I called him up personally and asked me that he is leaving. I hope that the words of my distinguished colleagues, and him please to remain because of the im­ spirit in which he has administered the especially those of the senio:r: Senator · portance to our country and to the world Federal Deposit Insurance Corporation from Michigan [Mr. ·VANDENBERG], re­ in the present crisis of .the work he was will live after him. If it does, it will con­ specting Mr. Crowl~y strike a very re­ ·performing. He had served a long while, tinue to be a benediction to the American sponsive chord in my heart. I am very however, and felt he should leave the people. familiar with the situation in the Dust . service. _Though leaving, I am sure the Mr. Crowley has done many other Bowl in the Northwest in the early · Government can always look to him for .things in his service for the Government. thirties. In. the early part of 1933 our counsel and advice. That is a comfort to He has occupied many difficult and re­ late colleague, Senator Herring, of Iowa, all of us. I gredtly regret his departure sponsible fiscal positions, and in every called a meeting of the governors of the ·from public office. I am sure all Senators instance, Mr. President-and this is, I Northwest. .Eleven governors attended, · regret it. I wish for him every success am afraid, a. somewhat unique record­ and five of us were sent to Washington ·in ·his new endeavors, and pray that h~ in every instance he has been absolutely to confer with the late President Roose­ may have a long life and enjoy to the faithful to the intelligent self-interest velt. . On that occasion in Washington fullest extent good health and happiness. of the United States. we met Mr. Crowley in·the' White House. Mr. WHITE. Mr. President, the dis­ I join my distinguished friends in wish­ He was in the complete confidence of the tinguished Senator from Michigan [Mr. ing Mr. ·Crowley Godspeed as he returns President. I remember the President VANDENBERG] has voiced with complete­ to civilian life. He has rendered a very saying to him, "Now, Leo, you know what ness and warmth of feeling our senti­ great service to his c.ountry, and if there the situation is up there in the Northwest, ments toward Mr. Crowley. We of the were a medal for distinguished civilian and I am going to be guided by \}'hat yoq minority appreciate what he has said. 1945 CONGRESSIONAL~" RECORD-SENATE I cannot help, however, adding a purely ing in the RECORD merely the cJncluding so important, containing, as it· does, the personal word. In the long years in chapter. story of such a marvelous piece of work which I have served ·in the Congress I Mr. BAILEY . . At this time I ask that ,by our Army and Navy th::;.,t we ought have known no man who so completely the final chapter be printed in the REc­ to arrange ·for its circulation by the merited the confidence of his fellow ORD. At a later time I shall ask to have · Congress. I have made my request. The Americans and the Members of both . the entire report made a Senate · docu­ Senator from South Dakota [Mr. GuR­ branches of the Congress than did Mr. ment. I believe that at least· 100,000 NEY] has made a suggestion. · Why not Crowley. He has worked with amazing copies should be printed. However, as have my request referred to the Com­ industry. He has had sure and sound a rule, the Senate authorizes the print- _ mit tee on Military Affairs with a view judgment upon public questions. He has ing of only a limited number of copies to having the appropriation authorized? · always had courage in reaching and giv­ of a Senate document-sometimes 200, The PRESIDENT pro tempore. The ing utterance to hi~ beliefs upon public and sometimes 2,000. Chair is informed by the Parliamentarian affairs, and at all times he has had the Mr. CONNALLY. I have no objection that the request would have -to be re­ highest standards of public duty and the to the -number suggested, but I believe ferred to the Committ~e on Printing. highest conceptions of public service. I that the report should be printed in its Mr.' BAILEY. I have no objection to expres.s my deep regret that he is leav­ entirety. that. ing the public service, and that we are no Mr. BROOKS. Mr. President, will the Mr. CONNALLY. Mr. . President, will longer to have the benefit of his judgment Senator yield? the Senator yield? · and the wisdom of his counsel. I wish for . Mr. BAILEY. I yield. _ Mr. BAILEY. I yield. him every good thing in the life which I Mr. BROOKS. I have had a great Mr. CONNALLY. I suggest that the hope stretches before him for many many requests for copies of this report, Committee on Printing be instructed to years. and I hope the Senator will see fit to ask consider the publication of the maps and Mr. BUTLER. Mr. President, as a that it be made_ a Senate document. charts. If they can be published for the minority member of the· Committee on Mr. BAILEY. I shall send forward the Army, I do not see why they cannot be Banking and Currency I very earnestly final chapter, to be printed in the REco:aD published for the United States Senate.' second the remarks made by the Chair­ in accordance with my request. Later If not, we had better change our rules. man of the Committee on· Banking and· I shall ask that 100,000 copies of ·Gen­ The PRESIDENT pro tempor~. Under Currency [Mr. WAGNER] with reference eral Marshall's report to the Secretary the law, if 100,000 copies are de_sired, it' to Mr.- Leo T~ Crowley. We of the mi­ of War be printed as a Senate document. will have to be done by concurrent reso-' nority have enjoyed working with him. It is a great history and a great lesson. lution. We have learned to respect him fully, and Mr. GURNEY. Mr. President, will the Mr. CONNALLY. How about 50,000? we regret very much to see him leave the Senator yield Does the law apply to 50,000? important position Which he has held. Mr. BAILEY. I yield. The PRESIDENT' pro tempore. If Mr. CONNALLY. Mr. President, I rise Mr. GURNEY. · I feel that it would be 100,000 copies are desired, a concurrent merely to say a few words about Mr. well to make an appropriation so that resolution is required~ Crowley. :very appropriate tributes to. the War Department may have it print­ Mr. CONNALLY. How about 99,000 him have already been paid by my col­ ed, because I feel that it is a wonderful copies? That)s up to the Senate, how- · leagues; and I shall not repeat them. As document. Last night I spent about 2 ever. Chairman of the Committee on Foreign hours reading it. I am sure that its value The PRESIDENT pro tempore. Is Relations, I have had considerable con­ would be much greater if the maps were there objection to the first request of the tact with Mr. Crowley. I have always printed as a part of the document. If Senator from North Carolina? The found his views ·~o be very sound. I have t:Q.e re.port were printed as a Senate docu­ Chair hears none. found him to be courageous, and i very ment, it would not be nearly so informa­ The matter referred to was ordered to deeply . regret that he is leaving the tive or valuable· as it is in its present .be printed in the. RECORD, as follows: form. · public servic·e. · we· have too few of his · . FOR THE COMMON DEFENSE type in the admfnistrative branch of the Mr. CONNALLY. Mr. President, why To fulfill its responsibility for protecting Government. is it that the War Department can print this Nation against foreign enemies, the Army the maps and we cannot? must project its planning beyond the im­ FOR THE COMMON DEFENSE-REPORT OF Mr. BAILEY. There is a very-limited GENERAL MARSHALL mediate future. In this connection I feel number of copies of the report available that I have a duty, a responsibility, to pre­ Mr. BAILEY. Mr. President, I ask in the form in which it was printed. As sent publicly at this time my conception, unanimouc consent to have printed in the I understand, .the report was printed by from a military point of view, ·of what is RECORD at this point as a part of my the Government Printing Office and required to prevent another international remarks the final chapter in the report catastrophe. made available to the public at cost. For years men have been concerned with of the Chief of Staff, Gen. George C. Mr. TAFT. Mr. President, will the individual security. Modern nations have Marshall. The chapter is entitled "For Senator yield? given considerable study and effort to the the Common Defense." I have read the Mr. BAILEY. I yield. establishment of social-security systems for report in its entirety. I should like to Mr. TAFT. Of course, the Senator is those unable or unwise enough to provide have all of it printed in the RECORD. Un­ aware of the fact that the report has for themselves. But effective insurance less I am very much mistaken, the re­ been printed in pamphlet form, and is against the disasters which have slaughtered port will go down in our history as one on every newsstand. Before the report millions of people and leveled their homes of the greatest of American state papers. was finished, arrangements ·were made is long overdue. In order that its circulation may be We finish each bloody war with a feeling with Simon & Shuster to publish it. It of acute revulsion against this savage forni larger than it would otherwise be, I par­ is available in 'much better form than it of human behavior, and yet on each occasion ticularly wish to have printed in the would be in a Senate document, which we confuse military preparedness with the RECORD the final chapter, which is a would not include the maps. Anyone causes of war and then drift almost de.:. warning to our country as· to the future. who wishes to pay a dollar for it can buy liberately into another catastrophe. This Mr. CONNALLY. Mr. President, re- . it. • . error of judgment was defined long ago by ' serving the right to' object-and I do not In the form in which it has been pub.:. Washington. He proposed to' end_ow this expect to object-why does not the Sen­ Nation at the outset with a policy which lished, it is much easier to read than a should have been a reasonable guaranty of ator from North Carolina have the en­ Senate document would be. It is pub­ our security for centuries. The cost of refus­ tire report made a Senate document, so lished in large type. The United States ing his guidance is· recorded in the sacrifice that the report in its entirety may be News has published it in finer print. of life and· in the accumulation of moun­ available to us? Certainly anyone who wishes it had bet­ tainous debts: We have continued impracti­ Mr. BAILEY. Mainly because of the ter pay a dollar and -buy it at a news­ cal. We have ignored the hard realities of cost. stand than try to get it in the form of world affairs. . We have been purely ideal­ Mr. CONNALLY. The concluding - a Senate document. istic. We must start, .I think, with a correction chapter is very fine; but· the basis for Mr. BAILEY. Mr. President, the con­ of the tragic misunderstanding that a se­ the ·concluding chapter is spread siderations which the Senator from Ohio curity policy is a war policy. War has been ·throughout th·e report. I hope the Sen­ has mentioned had all occurred to me. I defined by a people who have thought a lot ator will not rest-rict his request to plac- believe the report to be so valuable and about it--the Germans. They have startea 9648 CONGRESSIONAL RECORD_:SENATE. O,CTOBER 1'5 most of the recent ones. The German Pershing was asked against whom do we pre­ and gainful labor. 'But ali ·Americans can in soldier-philosopher Clausewitz described war pare. Obviously that question could not be the next generations prepare themselves to as a special violent form of political action. answered specifically until nearly 20 years serve their country in maintaini'ng the peace Frederic of Prussia, who left Germany. the _ later, when Adolf- Hitler led the replenished or · against the tragic hour when peace is belligerent legacy which has now destroyed armies of defeated Germany back into world broken, if such a misfortune again overtakes - her, viewed war as· .a device to enforce his conflict. Even as late as 1940 I was asked us. This is what is meant by universal mili­ will whether he was right or wrong. He held , very mucli the same question before a com­ tary training. It is not universal military that with an invincible offensive military mittee of Congress. Not even then could ! ­ service-the actual induction of men .into force he could win any politcial argument. say definitely exactly where we might have the combatant forces: Such forces would be This is the doctrine Hitler carried to the to fight, but I did recall that in past wars the composed during peacetime of volunteers. verge of complete success. It is the doctrine United States forces had fought in Latin The trainees would be in separate organiza­ of ·Japan. It is a criminal doctrine, and like ' America, in France, in Belgium, in Germany, t-ions, maintained for training purposes only. otl1er forms .of crime, it has cropped up again . in Russia, in Siberia, in Africa, in the Philip­ Once trained, young men would be freed from an_d again since man began to live with his pines, and in China, but I did not anticipate further connection with the Army unless they neighbors in communities and nations. · that in the near future Am~'rican soldiers. chose, as they now may, to enroll in the Na­ There has long been an effort to outlaw war would fight in the heart of Burma and in the tional Guard or an organ~zetl reserve unit, or for exactly the same reason th~t man has islands of the vast Pacific, and would be garri­ to volunteer for service in the small profes­ outlawed murder. But the law prohibiting soning area.s across the entire land and water sional army. When the Nation is in jeopardy, murder does not of itself prevent murder. masses of the earth. From this lesson there they could be called, just .as men are now It must be enforced, The enforcing power, is no alternative but that this Nation must· called, by a committee of local neighbors, in however, niust be maintained O:t;J. a strictly be prepared to defend its interest against any an order of priority and under such condi­ democratic basis. There must not be a nation or - combination of nations which tions as directed at that time by the Congress. large standing army subject to the behest might sometime feel powerfu~ enough to at­ The concept of universal military training of a group of schemers. The citizen-soldier tempt the settlement of political arguments is not founded, as some may believe, on the is the guaranty against such a misuse of or gain resources or territory by force of arms. principle of a mass army. The Army has. power. Twice in recent history the factories and been accused of rigidly holding to this doc­ In order to establish an international sys.­ :(arms and people of the United States. have trine in the face of modern developments: tem for preventing wars, p·eace-loviirg peoples foiled aggressor nations; conspirators against Nothing, I think, could be further from the of the world are demonstrating an eagerness the peace would not give us a third oppor­ tact, as the record of the mobilization for this to send their representatives to such confer­ tunity. war tlemonstrate·s. Earlier in this report I ences as tho~ at Dumbarton Oaks and San Between Germany and America in 1914 and explained how we had allocated manpower to Francisco with the fervent hope that they again in 1939 stood Great Britain . and the exploit American technology. Out of our en­ may find a practical solution. Yet, until it is Union of Soviet Socialist Republics, France, tire military mobilization of 14,000,000 men, proved that such a solution has been· found Por~nd, and the other countries of Europe. the number of infantry troops was less than to prevent wars, a rich nation which lays Because the technique of destruction had not 1,500,000 Army and Marine. · down its arms as we have done after every progressed to its present peak, these nations The remainder of our armed forces, sea, war in our history, will court disaster. The had to be eliminated and the Atlantic Ocean · air, and ground, was largely fighting a war existence of the complex and fearful instru­ crossed by ships before our factories could be of machinery. Counting those engaged in ments of destruction now available make this brought within the range of the enemy guns. war production there were probably seventy­ ,a simple truth which is, in my opinion, un- At the close of the German war in Europe· five to. eighty million Americans directly in­ . debatable. - they were- just on the outer fringes of tpe volved in prosecution of the war. To tech­ So far as their ability to defend themselves range of fire from an enemy in Europe. nological warfare we devoted 98 p~rcent of and their institutions was concerned, the· Goering stated after his capture that it was our entire effort. great democracies were sick nations when Hit­ a certainty the eastern American cities would Nor is it proposed now to abandon this ler openly massed his forces to impose his will have been under rocket bombardment had formula whiqh has been so amazingly suc­ on the worldc As sick as any was the United Germany ,remained undefeated for two more cessful. The harnessing of the basic power States of America. We had no field army. years. The first attacks would have started of the universe will further splfr our efforts There were the bare skeletons of three and much sooner. The technique of war has to use brain for brawn in safeguarding the one-half divisions scattered in small pieces brought the United · States, its homes and United States of America. over the entire United States. It was impos­ factories, into the front line of world con­ However, technology does not eliminate sible to train even these few combat troops flict. They escaped destructive bombard­ the need for men in war. The Air Forces, a.s divisions because motor transportation and ment in the Second World War. They would which were the highest developed technologi­ other facilities were lacking and funds for not in a third. It no longer appears prac.tical to continue cally of any of our armed forces in this war, adequate maneuvers were not appropriated._ required millions of men to do their job. The Air Forces consisted of a few partial­ what we once conceived as hemispheric de­ Every B-29 that winged over J apan was de­ ly equipped squadrons serving continental fense as a satisfactory basis for our security. pendent on the efforts of 12 officers and 73 United States, Panama, Hawaii, and the We are now concerned with the peace of the men in the immediate combat area-alone. Philippines; their planes were largely obsoles­ entire world. And the peace can only be cen,t and could hardly have survived a single maintained by the strong. The number -of men that were involved day of modern aerial combat. We lacked What, then, must we do to remain strong tn the delivery of the atomic bomb on Hiro­ modern arms and equipment. When Presi­ and still not bankrupt ourselves on military shima was tremendous. First we had to dent Roosevelt proclaimed, on September 8, expenditures to maintain a prohibitively ex­ have the base in the Marianas trom which 19:>9, that a limited emergency existed for the pensive professional army, even if one could _the plane took off. This first required pre­ United States we were, in terms of available 'be recruited? President Wa.shington an­ liminary operations acros.s tl].e vast Pacific, strength, not even a third:-rate military swered that. question in recommendations to thousands of ships, mlllions of tons of sup­ power. Some collegians had been informing the first Congress· to convene under the ply, the heroic efforts of hundred of thou­ the world and evidently convincing the Jap­ United States ·Constitution. He proposed a sands of men. Further, we needed the B- anese that the young men of America· would 'program for the peacetime training of a 29's and their fighter escort which gave us refuse to fight in defense of their country. citizen army. At that time the con~eption control of the .air over Japan. This was the The German armies swept over Europe at of a large professional regular army was con­ result of thousands of hours of training and the very moment we sought to avoid· war by sidered dangerous to the liberties, of the Na­ preparation in the United States, and the ·assuring ourselves that'there could be no war. tion. It is still so today. But the determin­ energies of hundreds of thousands of men. The security of the United States of America ing factor . in solving this problem will in­ The effective technology on the military was saved ·by sea.distances, by all_ies, and by evitably be the relation between the mainte­ structure is idential to its effect en the the errors of a prepared enemy. For probably nance of military power and the cost in national economy. Just as the automobile the last tirrie in the history of warfare those' annual appropriations. No system, even if replaced the horse and made work for mil­ · ocean distances were a vit~l factor in our de­ actually adopted in the neat future, can sur­ Ions of Americat?.s, the atomic explosives will fense. We may elect again to depend on vive the politicarpressure to reduce the mili­ require the services of m}llions of men if .we others and the whim and error of potential tary budget if the costs are high-and profes.:. are compelled to employ them in fighting enemies, but if we do we will b;.e carrying the sional armies are very costly. our battles. treasure and freedom of this great Nation in There is now another disadvantage to a This war has made it clear that the .security .a paper bag. .large professional standing army. Wars in of the Nation, when challenged by an armed Returning from 'France after the last war, _the twentieth century are fought with the enemy, requires the services of .virtually all with General Pershing, I participated in"his total resources-economic, scientific, and hu­ able-bodied male citizens within the effec­ enqeavors to persuade the Nation to establish man-of entire nations_. Every specialized tive military age group. and maintain a sound defense policy. Haq field of human knowledge is employed. In war the Nation cannot depend on the his recommendations been accepted, they Modern war requires the skills and knowledge numbers of men willing to volunteer for might have saved this cou.ntry the hundreds of the individuals of a nation. · active service; nor can our security in peace. of billions ~ of dollars and the more than a Obviously, we cannot all put on uniforms In another national emer&ency, the exist­ million casualties it has cost us again to re­ and stand ready to repel invasion. The ence of a substantial portion of the Nation's store the peace. We might even have been greatest energy in. peacetime of any success­ young manpower already, trained or in proc-· spared this present world tragedy. . GEme:ral ful nation must be devoted to productive ess of training, would make it possible to J '1945 CONGRESSIONAL RECORD-SENATE . 9649 fill out immediately the peacetime ranks ot The third mission of the permanent Army were stationed been availab!e, and they were the Navy, the Regular Army, the National is to furnish the overhead, the higher bead­ not, the few troops on the Regular rolls Guard, and the Organized Reserve. As a re­ quarters which must keep the machine and would have bzen completely submerged u n der sult our armed forces would be ready fot · the plans up to date for whatever national a deluge of Reserve officers. For example, almost immediate deployment to counter ini­ emergencyr we may face in' the future. This the strength of· the Officers' Reserve Corps in tial hostile moves, ready to prevent an enemy overhead includes the War Department, the 1938 was more than double 'the number of from gaining footholds from which he could War College, the service schools, and the Regular soldiers in combat unit s in the con­ launch destructive attacks against our in­ headquarters of the military areas into which tinental United St ates. dustries and our homes. By this method we continental United States is subdivided to Only by universal military training can full would establish, for the generations to come, facilitate decentralized command and co­ vigor and life ·be -instilled into the Reserve a national military policy: (1) Which is en­ ordination of the peacetime military ma­ system. It creates a pool -of well-trained tirely within the financial capabilities of our chine. This was about all we had on the eve men and officers from which the National peacetime economy and is absolutely demo­ of this war, planners and a small number Guard and the Organized Reserves can draw crat ic in its nature, and (2) which places the of men who had little to handle in practice volunteers; it provides opportunities for t h e military world and therefore the political but sound ideas on how to employ the war­ Guard and Reserve units to participate in world on notice that this vast power, linked time hosts that would be gathered in the corps and Army maneuvers, which are vital to our tremendous resources, wealth, and storm. Had it not been for the time the preparations to success in military cam­ production, is immediately available. There British Empire and the Soviets bought us, paigns. Without these trained men and of­ can be no question that all the nations of those plans and ideas would have been of ficers, without such opportunities to develop the world will respect our views accordingly, little use. skill through actual practice in realistic ma­ creatine at least a probability of peace on The fourth and probably ~he most impor­ neuvers, neither the Regular Army, the Na­ earth and of good will among men rather tant mission of the Regular Army is to pro­ tional Guard, nor the Reserve can hope to than disaster upon disaster in a tormented vide the knowledge, the expert personnel, bring high· efficiency to their vital · missions. world where the very processes of civilization and the installations for training the citizen­ Though ROTC graduates <,:omposed 12 per­ itself are constantly threatened. soldier upon whom, in my view, the future cent of the war officers, its most impor.tant The decision in this matter is so grave in peace of the world largely depends. contribution was the immediate availability consequence that it demands complete frank­ Of the citizen Army, the National Guard of 1ts product. Just what we could have done ness on my part. Therefore I must say that is in the first category of importance. It in the first phases of our mobilization and many of the objections which have been must be healthy and strong ready to take training without these men I do not know. made to universa! mili t~ry training SJ)pear its place in the first line of' defense in the I do know that our pl:ans would have had to to be influenced by ulterior motives, or to first weeks of an emergency, and not depend­ be greatly curtailed and the. cessation of hos­ ignore completely the tragedies of the past ent upon a year or more of training before tiliti~s on the European front would have and present ·Which we are seeking to avoid it can be conditioned to take the field against been delayed accordingly. We must enlarge for the future. ·They often seem to give a trained enemy. It is not feasible under the and strengthen the system. It must be es­ undue importance to restrictions on our free­ conditions of peace for the National Guard tablished on a higher level, comp!trable to the dom of life, trivial in compa:cison with the within itself to provide the basic, the funda­ academic levels of college education in which awful tragedies we are seeking to avoid and mental training which is an imperative re­ the young men of the ROTC are engaged. All the great blessings we hope to secure for suc­ quirement for its mission. Therefore, in my this is made easily possible if the student has ceeding generations. opinion, based on a long and intimate experi­ participated in universal military training, · The timing of our decision on the question ence with the guard from 1907 until 1941, and a.t the same time the length of the course of universal military training is urgent. The the essential requirement for such a system can be shortened by 1 year. He would enter officials of the State Department have been under modern conditions is universal mili­ the ROTC as far advanced as his predecessors strongly of the opinion that a decision in this tary training from which to draw the volun­ were after 2Y:z years of the original 3-year matter prior to the final peace negotiations teers for the ranks of the guard. Without course. He would have completed his ele­ would greatly strengthen the hand of 'the such a firm foundation, I am clearly of the mentary tr~ining-the military equivalent United States in securing acceptance of a opinion that a sti:mciently dependable force of his grammar-school and high-school genuine organization to handle international for our postwar needs cannot be maintained. courses-and would be prepared for college differences. · The second important component of the wor.k, that is, for training as an officer, a The terms of the final peace settlement citizen army is the Organized Reserve prospective leader of men. The product of will provide a basis for determining the through which full mobilization of the such an ROTC would provide the National strength of the regular or permanent post­ Nation's resources to war footing is accom­ Guard and the Organized Reserves with an ~ar mUitary forces of the United States­ pllshed. At the start of the present war the officer corps of exceptional character. air, ground, and naval-but they cannot, in R~serve was almost entirely an officer corps,. An unbroken period of 1 year's training my opinion, alter the necessity for a system the regimental and divisional groups• lacking appears essential to the success of a sound of universal military training. a practical basis for mobilization. The con­ security plan based on the concept of a citi­ The yardstick by which the size of the tribution of this component was therefore zen army. permanent force must be measured is maxi­ largely one of individuals, but of wide extent . It is possible to train individual soldiers as mum security with minimum cost in men, and great importance. The depleted ofiicer replacements for veteran divisions and air materiel, and maintenance. So far as they ranks of the Regular Army were filled by the groups as we now do in a comparatively short can foresee world conditions a decade from Reserve, the countless new staffs and organi­ period of time. The training of the unit now, War Department planners, who have zations were mainy composed of Reserve offi­ itself cannot be accomplished' at best in hiss taken every conceivable factor into consid­ cers, the great training camps for men in­ than a year; air units require even more time. eration, believe that our position will be ducted through the Selective Service System The principle is identical to that of coaching sound if we set up machinery which will drew in the beginning on the officer strength a football team. A halfback can learn permit the mobilization of an army of 4,000,- of the Reserve Corps. 'l"he officer-candidate quickly bow to run with the ball, but it taltes 000 men within a period of 1 year following schoels from which our present Army ac­ time and much practice and long hours of any international crisis resulting in a na.. quired its vital small-unit leadership were team scrimmage before he is proficient at tiona! emergency !or the United States. staffed by Reserve officers. These officers carrying the ball through an opposing team, The Regular Army must be comprised were llirgely veterans of World War I and utilizing the aid of the 10 other men on the largely of a strategic force, heavy in air graduates of the Reserve Officers' Training team. So it is with an Army division or power, partially deployed in the Pacific and Corps. Pitifully small appropriations ha.d combat air group. Men learn to fire a rille the Caribbean ready to protect the Nation limited training to a brief period once in or machine gun quickly, but it takes long against a sudden hostile thrust and imme­ every 3 or 4 years and so few numbers of hours of scrimmage, which the Army calls diately available for .emergency actiol'l wher­ troops that the limited training the Reserve· maneuver, before the firing of the rifle is co­ ever required. It is obvious that another officers received had little relation to actual ordinated with the activities of more than war would start with a lightning attack to battle. 14,000 other men on the team. take us unaware. The pace of the, attack This lack of troops with which Reserve All men who might someday have to fight would be at supersonic speeds of rocket officers could require practical experience in for their nation must have this team train._ weapons closely followed by a striking force command and staff work was the most critical tug. The seasoned soldiers of our present .which would seek to exploit the initial and limitation. There was no· enlisted strength superb divisions will have lived beyond the critical advantage. We must be sufficiently in the Reserve force. 'I11ere was little con­ age of military usefulness. The situation prepared against such a threat to hold the nection and understanding between the will be similar in the peacetime army to that enemy at a distance until we caJl rapidly 9fficers' Reserve Corps and the National which obtained when we began to mobilize mobilize our strength. The Regular Army Guard-which had an enlisted strength-and for this war and all men had to have at least and the National Guard must be prepared to the number of enlisted men in the Regular a year of unit training before we had divi­ JUeet such a crisis. Army was so small that it was impossible to sions even fit for shipment overseas. Another. mission of the Regular Army is qualify Rese~ve officers by training with The training program would be according to provide the security gax:risons for the out­ Regulars. Especially in the dense centers of to the standards which have made the Amer­ lying bases. We quickly lost the Philippines, population there were few Regular troops. ican soldier in this war the equal of the finest Guam, and Wake Islands at the beginning of Yet here were located the largest groups of fighting men. It would be kept abreast of this war and are still expending lives and lteserve officers. Even had funds for trans­ technical developments and the r esulting wealth in recovering them. portation to the area.t where Regular troopl modifications o"! tactics. XCI-608 9650 CONGRESSIONAL RECORD-:-SENATE OCTOBER 15 Throughout the training a strenuous pro-. :war. We must never again face a great na­ must be.known that .we are-at all times ready gram of instruction would have to be fol­ tional crisis with ammunition lacking to for war." I' lowed, but it would not be possible in peace serve our guns, few guns to fire, and no de­ G. C. MARSHALL, to carry on the work under the tremendous cisive procedures for procuring vital arms in . Ohief ·of Staff. pressure we now follow in wartime. At h­ sufficient quantities. WASHINGTON, D. C., September 1, 1945. letics, recreational opportunities, short week The necessity for continuous research into ends, and "other variational opportunities the military ramifications of man's scientific The PRESIDENT pro tempore. Is such as at Christmas time, would, of course, advance is now clear to all and it should not there a second request? be necessary. However, if the Government be too difficult to obtain the necessary ap­ Mr. BAILEY. Mr. President, I think is to be justified in the expenditure of the propriations for this purpose during peace­ I shall consult with the Committee on funds involved, a vigorous schedule should time. There is, however, always much reluc­ Printing and draw a resolution to be be enforced; otherwise we would produce a tance to expenditure of funds for improve­ presented later. half-baked product which would fail to com­ ment of war-making instruments, particular­ mand the respectful attention of the nations ly where there is no peacetime usefulness in ORDER DISPENSING WITH CALL OF THE of the world, and therefore negate the pri­ the product. CALENDAR mary purpose of the entire system. The development of combat · airplanes is To those who fear the Army might mili­ closely allied with development of civil aero­ The PRESIDENT pro tempore. Morn­ tarize our young men and indoctrinate them nautics; the prototypes of many of our pres­ ing business having been concluded, the with dangerous conceptions, to those who ent transport planes, and those soon to come calendar, under rule VIII, is in order. express doubts of the Army's capacity to do were originally bombers. Many of the aero­ Mr. McCARRAN. Mr. President, I ask the job, I submit the evidence of our present nautical principles that helped give this Na­ unanimous consent that the call of the armies. The troops have been trained suffi­ tion the greatest Air Force in the world grew calendar be dispensed with. ciently to.. defeat a first-class enemy. Their out of commercial development and our pro­ · The PRESIDENT pro tempore. Is minds have not been warped-quite the con­ duction know-how at the start of this war trary. The American people are satisfied, I was partially the fruit of peacetime com­ there objection? The Chair hears none, am confident, that their armies are, in fact, mercial enterprise. Since many vital types and it is so ordered. armies of democracy. They know that the of weapons have no commercial counterpart, PRICE AND STA'rUS OF AMERICAN SILVER men composing those armies are far better the peacetime development of these weapons physically than they otherwise would have has been grossly neglected. Antiaircraft · Mr. McCARRAN. Mr. President, I been, that their general health has been weapons are a good example. The highly send to the desk a bill which contains better than at home, except for those serving efficient antiaircraft of today did not ma­ two separate provisions with respect to in the tropical jungles. The officers who terialize until long after the fighting began. silver. The first section provides for the trained our armies were largely citizen-sol­ The consequent cost in time, life, and money payment of the full menetary price of diers. They did have the initial guidance of of this failure to spend the necessary sums Regular officers, but only 2 percent of the on such activity in peacetime has been ap- silver to the American miner, and the entire officer corps was professional. Only paling. · _ second of its provisions is intended to slightly more were of the National Guard; There is another phase of scientific research restore American commercial leadership · 25 percent w~re products of the Officers' Re­ which I think has been somewhat ignored­ in silver and to make that leadership as serve Corps, 12 percent more were men com­ the development of expeditious methods for unquestioned as our monetary and in­ missioned direct from civil life because of the mass production of war materiel. This is dustrial leadership is today. This I pro­ certain professional qualifications. The of great importance since it determines how pose to do by repealing sections 6, 7, and great majority of the officers came up from quickly we can mobilize our resources· if war the ranks, 59 percent of the total, which comes and how large and costly our reserve 8 of the Silver Purchase Act of 1934. guaranteed the democracy of the Army. stocks of war materiel must be. Serious The text of my bill follows: To those who consider the introduction of thought and planning along this line can Be it enacted, etc., That subsection (b) a system of universal military .training an save millions of tax dollars. · of section 4 of the act entitled "An act to imposition on democracy, I would reply that We can be certain that the next war, if extend the time within which the powers in my opinion it would be the most demo­ there is one, will be even more total than relating to the stabilization fund and alter­ cratic expression of our national life. What­ this one. The nature of war is such that ation of the weight of the dollar may be ever my limitations may be in judging this once it now begins it can end only as this exercised," approv~d July 6, 1939, is amended matter, I submit the evidence of the pro­ one is ending, the destruction of the van­ to read as follows: posal of our first President.- quished, and it should be assumed that an­ "(b) The silver so received shall be coined Washington's program provided for univer­ other reconversion from peace to war pro. into standard silver dollars or otherwise add­ sal training of all men arriving at the age of duction will take place initially under enemy ed to the monetary stocks of the United 17. The citizen militia was to be divided distant bombardment. Industrial mobiliza­ States as the President may determine; and into three classes, men from 17 to 21, known tion plans must be founded on these assump­ there shall be delivered therefor in standard as the advance corps, men 21 to 46, known as tions and so organized that they will meet silver dollars or any other coin or coinage of the main corps, and men from 46 to 61, them and any other situation that may de­ the United States, the monetary value of the known as the reserve corps. All of the peace­ velop. Yet they must in no way retard or silver so delivered, less such deductions for time training would have been concentrated inhibit the course of peacetiJ:pe production. brassage, coinage, and other mint charges as in the advance corps, but eventually all mem­ If this Nation is to remain great it must the Secretary of the Treasury with the ap­ bers of main and reserve corps would have bear in mind now and in the future that war proval of the President shall have determined, been graduates of the training program. The is not the choice of those who wish passion­ not to exceed the actual cost thereof." militia bill was first introduced in the third ately for peace. It is the choice of those SEc. 2. The following statutes and portions session of the First Congress. It was con­ who are willing to resort to violence for of statutes are hereby repealed: sidered in the House on March 5, 1792, and as political advantage. We can fortify ourselves (a) Section 1805 of·the Internal Revenue finally enacted contained no element of any against disaster, I am convinced, by the mea­ Code, as amended. of Washington's recommendations. It was sures I have here outlined. In these protec­ (b) Sections 6, 7, and 8, and the second so emasculated when finally adopted that the tions we can face the future with a reasonable proviso in section 3, of the Silver Purchase representative who introduced the bill him­ hope for the best and with quiet assurance Act of 1934, approved June 19, 1934. self voted against its passage. that even though the worst may come, we are It appears probable that had the bill been . prepared for it. Mr. President, the earliest recorded approved by Congress, the United States As President Washington said in his mes­ history of the use of silver as a medium might have avoided much of the war making sage to Congress of December 3, 1793: of exchange was about the year 1870 that has filled its brief history. The im­ . "I cannot recommend to your notice meas­ B. C., and that of gold as early as 1100 pressment of American seamen would not ures for the fulfillment of our duties to the B. C. From these early periods to 1300 have been regarded as a harmless pastime in rest of the world, without again pressing A. D., there are many missing pages from the early 1800's, nor would the Kaiser have upon you the necessity of placing ourselves the history of money, although the been so easily disposed to avenge the death in a position of complete defense and of ex­ of the Archduke Franz Ferdinap.d in 1914 acting from them the fulfillment of the du­ record that is available indicates a pref­ with a world war, nor Adolph Hitler have ties towards us. The United St ates ought erence by all the world for silver oyer been quite so quick to break the peace, if not to indulge a persuasion, that contrary to gold because of the necessity for the set­ over these years the United States had been t4e order of human efforts, they will forever tlement of small but multitudinous recognized by the warmongers as a Nation keep at a distance those painful appeals to transactions. In the years that followed, immediately to be reckoned with. arms, with which the history of every other many attempts were made to establish The peacetime army must not only be pre­ nation abounds. There is a rank due to the bimetallism, with ratios of silver to gold pared for immediate mobilization of an effec­ United States among nations, which will be tive war army, but it must have fn reserve withheld, if not absolutely lost, by the repu­ ranging from 10 to' 1 td 15 to 1. the weapons needed for the first months of tation of weakness-if we desire to avoid - In 1066, silver was the principal money the fighting and clear-cut plans for immedi­ insult we must be ready to repel it; if we of England and continued to be until the ately producing the tremendous additional desire to secure peac.e, one of the most power­ early part of the eighteenth century. quantities of materiel necessary in total ful institutions of our rising prosperity, it J'he pound sterling contains 5,400 grains 1945 . CONGRESSIONAL RECORD-SENATE 9651 of standard silver and weighs a pound. Today, after a period of 153 years, . the their countries to recover ·more promptly It is divided into 20 shillings and each silver dollar of. the United States still from the greatest economic and political shilling into 12 pence or "sterlings." The contains 371% grains of pure silver, or shock in all history. gold coin first appeared in England in 412% grains of silver nine-tenths fine. Section 6 pf the Silver Purchase Act of 1257. It weighed 45 grains, or one one­ One dollar's worth of silver in the mone­ 1934 authorizes the Secretary of the hundred-and-twentieth of a pound, and tary system of the United States has al­ Treasury to-investigate, regulate, or pro­ was valued as equivalent to 20 "ster­ ways been measured in units of 371% hibit the acquisition, importation, expor~ lings," giving a ratio of silver to gold of grains of pure silver. That is the mone­ tation, or transportation of silver. 10 to 1. tary value of silver today-approxi­ Section 7 authorizes the President to From the period of the Napoleonic mately seventy-seven one hundredths of nationalize "any or all silver by whomso­ wars, gold and silver served either con­ a fine ounce being a dollar's worth of sil­ ever owned or possessed," in 1934. currently 'or independently all of the ver. Therefore, a whole ounce of silver Section 8 imposes a tax of 50 percent functions of money throughout the is and has been, ever since the inception on all profits arising from private trans­ world. Their price ratio varied, how­ of our Government •. worth $1.29 as money actions in silver, the remaining 50 per­ ever, from 15, ·15%, or 16 ounces of silver of the United States. cent of such profits being, of course, sub­ to 1 ounce of gold, in accordance with For the past 72 years, with the excep­ ject to all other income and corporation their production ratio and their supply tion of a few months following World taxes. This section contains two pro­ and demand. War .I, the miners of America have not visos for abatement or refund of the spe~ England realized the difficulties en­ received the full value for their silver. cial tax of 50 percent, provisos, however, countered in the nineteenth century, and During a part of 1932 and 1933 they re­ which no longer serve-if indeed they in 1814 decided to peg the price of gold ceived only 24% cents per fine ounce. ever served-their original purposes. at £3, 17s and 9d per standard ounce, or Today they receive only 71.11 cents per These three sections were inserted in $20.67 in United States money, and fine ounce, or 55 percent of the monetary the act in order to vest in the Govern­ agreed to buy and sell gold at the same value of silver. The Government makes ment of the United States the most com­ price. This unilateral action by Eng­ a profit of 45 percent on every ounce of plete freedom of action in connection land marked the beginning of the gold silver delivered to the mint by the Ameri­ with the substantial acquisitions of silver standard. ·Regardless of the varying can miner, and has been making this which the Government was about to un­ production of gold resulting from the unreasonable profit since July 1, 1939. dertake in 1934 at home and abroad. newly found gold fields of California, My bill is designed to correct this in­ During the course of these acquisitions Aus-tralia, South Africa, Alaska, and justice. It will not give to the miner a section 6 ma·y have served some useful Canada, the price of gold did not fluctu­ bonus; it will only give him the monetary purpose. It serves none today. ate more than a few cents per fine ounce value of silver which has been on the The nationafization of silver which from 1814 for more than 100 years, not­ statute bookf of our Government since took place on August 9, 1934, accom­ withstanding the fact that in the early 1792. plished the intent of section 7. part of the last century less than 400,000 Following the First World War the It was estimated by a former Secretary ounces of gold were produced :;~.nnually peoples of many countries demanded of the Treasury that section 8 might pos­ and 100 years later the annual world silver coinage to replace some of the sibly produce $25,000,000 of tax revenue. production of gold was more than 21,- enormous quantities of paper money in Instead, it has produced a total of only 000,000 ounces. Throughout that e'ntire circulation, much of w.hich was worth­ $3,300,000 in 11 years: Of this sum $3,.:- period the supply of gold was adequate less, in order to arrest the attendant in­ 000,000 was produced in the first 6 years to serve the monetary needs of the world, flation, and to restore confidence in their and only ·$300,000 in the past 5 years. but today there is not enough gold, even monetary systems. The unfortunate Only $25,000 was produced last year, at the current price of $35 an ounce, to practice of melting down silver coins in probably less than the cost of administer­ meet all the monetary requirements of order to reduce their fineness was ini­ ing it. the world. tiated by Great Britain in 1920. It spread Section 8, however, which constituted From 1792 ·to 1834, the ratio of silver rapidly to other countries, including In­ an overzealous effort to protect the na­ to gold in the United States was 15 to 1; dia, and the silver extracted from those tional interest, is primarily the section and from 1834 to 1873, the ratio was 16 coins was sold, even auctioned, in the which destroyed the American commer­ to 1, where it remained until Germany open bullion markets of the world with cial market in silver. This market was and England collaborated, after Ger­ the deliberate purpose of breaking the laboriously built up in the two decades many's triumph in the Franco-Prussian market price, and thereby reducing the following World War I to a point where war, in extending the single gold stand­ buying power abroad of the countries it transacted a volume of commercial ard and allowing silver to drift around then on the silver standard. business equal to that of London. Un­ in the commodity markets at any price The gold standard was suspended by fortunately the destruction of this it would bring, regardless.of the fact that England at the beginning of World War I, American market restored to London the siiver was the sole standard of value in bu,t was restored for a few years between commercial supremacy in silver which China, India, and other Near East and World Wars I and II. It was abandoned London had previously lost to us. Far East countries, where it served ex­ entirely by England in 1931 after a com­ It is difficult to estimate the annual clusively as money more than half of plete break-down. Every other country volume of business ;which this market the world's population. in the world, including the United States, would transact under present conditions. This neglect of silver resulted in loss of also abandoned the gold standard follow­ Judging from the experience of simHar prestige for the white metal, and led to ing this action taken by England. Today commercial markets, however, it might exploitation of the silver-using countries, no country is on either a gold or silver amount to from 300,000,000 to 400;000,000 the adverse effects of which have been standard. In fact, today there is no ounces annually. far-reaching. Since 1873, the market monetary standard. The advantages·that will accrue to the price of silver has fluctuated from 24% The United States possesses more than many companies-producers, refineries, cents to $1.375 an ounce, both of these half of the world's monetary gold and distributors, bankers, and manufactur­ extreme prices having been reached be­ silver, and is the only country in a posi­ ers-are substantial. Of paramount im­ fore China abandoned the silver standard tion to play a leading role in aidjng in portance, is the enhancement which in 1935 and prior to the passage of the the reestablishment of monetary systems the restoration of this commercial mar-­ Silver Purchase Act of 1934. and in the rehabilitation and coinage of ket will lend to our present unchal­ The Constitution of the United States, both gold and silver for monetary use. I iengeable position in silver, firmly secur­ the organic law of our country, vests in can conceive of no greater service that ing not only our rightful monetary and Congress alone the power "to coin money, can be rendered this stricken world today industrial position, but our commercial regulate the value thereof, and of foreign than to restore both gold and silver, each preeminence in silver as well. coin." It also provides that "no State readily interchangeable with the other at Mr. President, it is not necessary for shall make anything but gold and silvel· a fixed ratio, to their former place as me to come to the defense of silver as coin a tender in payment of debts." money throughout the world, so as to give sound money in the monetary system of TJ;le first coinage act, approved on intrinsic value and ~ confidence to the the United States. A full defense has April 2, 17.92, provided that 371% grains moneys of the teeming millions of peo­ been written into the organic law of this of pure silver1 constituted one dollar. ples everywhere, and thereby enable Government, but more than that, Mr. 9652 CONGRESSIONAL RECORD-SENATE OCTOBER l5 President, the peoples of the civilized an ounce for the silver .ecovered and ap­ Nevertheless, lt is believed that the ·Bank world in every country, and in every proximates the prices for Treasury and newly of Mexico will very likely prefer to accept the mined domestic silver in commercial bar United States offers for silver in view of the clime, and in every status, are now clam­ weight form. · gentlemen's agreements that have existed oring for silver as the soundest money of Current estimates in the trade indicate between the Governments of Mexico and the which humanity, in dealing with human­ · that the war-born pent-up demand for silver United States, whereby the former furnished ity, has any knowledge. Everywhere the · is running at a rate af about 125,000,000 the metal to America from its surplus. . soundness of paper currency is being ounces annually, while available supply from DATE OF RESHIPMENTS looked upon askance, is being questioned, newly ·mined domestic and foreign sources is figured at an annual rate of less than Mexico has been shipping only a relatively is being interrogated. Nowhere, in all the small portion of its silver production to the . world, is the soundness of silver money 100,000,000 ounces. · When the Office of Price Administration United States since February-March, 1944. It at all in question. may take a bale of . several weeks ago ~aised the price on jm­ While it is· expected that shipments will be · paper to buy a loaf of bread in many of ported silver 26 cents, to 71.111 cents a fine rene-wed soon, none in authority in Mexico . the countries of the world,··but a piece of ounce, the supply of foreign silver showed . is willing to commithimself as to when they silver the size o'f your little fingernail a fair-sized bulge. Subsequently this mod­ . will start·. · will attain the sustenance of life. · Hence, erately increased supply has dwindled, and One result of the increased price for foreign I ·do not, today, come to the defense of it is ·the opinion of silver authorities that . silver ·is the ·requests for price relief fro~ recourse now will have to be made · to the large users of silver. Major users .. of silver silver. Those of us who are advocating were canvassed by Office of Price Adminis­ its remonetization by the Government Treasury for .additional silver to supply. proc- . essors who make sil~er ll?-to ~emifinished tration .representatives before the foreign of the United States are no longer called · forms for the arts and industry. price was raised to the 71.111 cents estab- upon to defend our position. Today The supply of Treasury silver is estimated . lished for the domestic product. silver is on the offensive, and its offensive at about 250,'~00,000 ounces. But there re­ A spokesman of the OPA explained that is backed by the peoples everywhere on main only 2 Yz months in which it can be during the war the foreign metal was allo­ the face of the earth. Let America be · obtained before the Green Act expires·. cated only for essential uses, and manufac­ first in this great peace movement for turers of many products were forced to use Mr. McCARRAN. Mr. President, I the highel'-priced domestic silver. Hepce ~he restoring sound money under a silver ask unanimous consent to have printed raising of the former's price to that of do­ standard, as she has been first in the · in tl~e RECORD at this point as a part of mestic will affect only a few manufacturers. great movement for freedom. . my remarks an articre entitled "Higher · AmoPg these is the photographic industry, Mr. President, I ask unanimous con­ Costs Will Offset Silver Rise-Mexico whose war business was based on a 45-cent sent to have printed in the RECORD at pri_ce for silver. l\4ay S~ll Metal to United States," from this point as a part .of my remarks state­ the London Financial Times of S2ptem­ ment 19 of letter No. 1413, of September ber 25, 1945, and an article entitled SHARP RISE IN SILVER 29, 1945, distributed by Whaley-Eaton · "Sharp Rise in Silver." The London silver price was raised from Service, of ·washington, D~ C. There being no objection, the articles 25Yzd. to 44d. per ounce today by way of ad­ There being no objection, the state­ were ordered to be printed in the RECORD, justment to bring it into line with the ad­ . ment was ordered' to· be printed in the as follows: vance in the ceiling buying price in the .RECORD, as follows: · United States. Bombay silver quotations . HIGHER COSTS WILL OFFSET SILVER RISE­ were a shade lower after their sharp increase Silver: World· currency difficulties may re­ MEXICO MAY SELL METAL TO UNITED STATEs-­ o_f the previous few days. sult in - the remonetization of silver. · lt BIDS BY SOUTH AMERICA, I~DIA, CHINA . . . ' would not necessarily be linked with gold, BosToN, September 25.-Although the ad- Spot silver in Bombay receded 4 annas to but established as an independent currency vance in the United States buying price of Rs. 132 annas 8 per 100 tolas, while forward base in such countries as China and India. foreign silver, quickly reflected in approxi- . · was 2 annas off at Rs. 132 annas 8 .also. Gold, Inflation of paper currencies in the Far East mately parallel advances in the New York however, rose 5 annas to Rs. 77 annas 10 has reached such fantastic levels that only and London market prices, will benefit per tola, while sovereigns were 12 annas a metallic currency could achieve stability. foreign producers, those conversant with sil­ dearer at Rs. 53 annas 8 apiece. Introduction of silver coins would, of cour;:;e, ver affairs believe that certain factors are necessitate elimination of existing paper. In London gold was fixed at 172s. 3d. p_er likely to neutralize much of this gain. fine ounce. Alexandria gold was unaltered Otherwise, the silver would merely be In Mexico, especially, operating costs, will hoardc•j. Substantially higher prices would at 189 piastres per dirhem. The Argentine rise along with the price. Rates for electric special account rate for s·ettlement of peso be necessary, however, to attract large-scale power in some localities of the country are new production. While silver is now valued debts was unaltered at 16.16 pesos to the geared directly to the price of silver. As a pound. by the United States for monetary purposes general rule, wages follow changes in quota­ at $1.29, the Treasury's buying price for tions for the metal, particularly when the Mr. McCARRAN. I also ask unani­ both domestic and foreign production is movement is upward. mous consent, Mr. President, to have only 71 cents an ounce. Furthermore, the ME'xican Government is printed in the body of the RECORD at this Mr. McCARRAN. I ask unanimous likely to withdraw the subsidy it granted to point several articles headed respectively consent to have printed in the RECORD many gold and silver producers. Because "The course of silver," "Silver price mining costs had risen so materially, at this point as a part of my remarks .an threatening to close down the number of raised," and "Bombay bullion strong," all article entitled "Silver Demand Runs mines, Mexico at the end of 1944 granted an pertaining to the present condition Ahead of Available Supply," published in indirect subsidy through a reduction in the throughout the world with respect to the Wall Street Journal of October 10, production tax. This. rebate may now be · silver: The articles were published in: 1945. ended. · 1 the London Financial Times of Septem­ There being no objection, the article When the probable increases in power rates, ber 25, 1945. wages, taxes, and other elements are added, There being no objection, the articles was ordered to be printed· in the REc- it may be found that 70 or 80 percent of ORD, as follows: - the benefits 'of the higher silver prices have were ordered to be printed in the RECORD, SILVER DEMAND RUNS AHEAD OF AVAILABLE SUP­ been lost. as follows: PLY-SO USE~S MUST DRAW ON FREE TREASURY BANK RETICENT THE COURSE OF SILVER METAL SALABLE UNDER GREEN ACT-BUT IT Reports from Mexico City state that the Primarily, the raising of the London price EXPIRES AT YEAR END Bank of Mexico is remaining silent on possi­ for silver to 44 pence per ounce fine yes­ Demand for silver from the arts and indus­ bilities of renewing shipments of silver to terday represents only an adaptation to try continues to run well. ahead of available ·the .United States. However, silver circles United States action at the week end in foreign and domestic mine supply, and it has there feel that the bank will soon accept moving up Its own ceiling for foreign-pro­ now reached the point WhP.re it is necessary the attractive American price of 71.111 cents duced silver to 71.1 cents. Allowing for to tap again the large unsold portion of free . per fine ounce and again start deliveries at shipping charges, the action of the authori­ Treasury silver that is made available under the rate of about 1,500,000 fine ounces ties on this side puts the two countries on the Green Act. This act expires at the end monthly. virtually· the same plane. Entailing as it of thiR year. Meanwhile, it is reported that Mexican does a rise of 18% pence here, the change Because of this lack of supply and in order banking authorities have received tentative is marked as well .as abrupt, but without it to bring the price of foreign silver more offers for silver from Argentina and other London obviously would stand no chance at nearly in line with domestic and Treasury South American countries, together with re­ all of replenishing its supplies. The new silver, Handy & Harman, leading bulllon quests from Cuba, China, and India. These levels can have no pretensions to -being re­ dealer and silver processor, yesterday ad­ nations are understood to have been seeking garded as ·effective world prices, . any more vanced its official price one-eighth cent an surplus Mexican silver which is not needed than those of 70 pence and 60 pence ounce to 70%. cents an ounce for silver in for coinage and for industrial and merchan­ which have been reached in Egypt and India ore. This is equivalent to about •il cents · dising purposes. respectively. Those markets have been segre- 1945 CONGRESSIONAL RECORD_~SEN·ATE 9653. gated, while London and New York have been equivalent of rather ·more than 60 pence per derstood that this item has .for years con· closely controlled, in order that supplies of ounce, while the Egyptian price is even higher sisted only of silver coin, the Bank of Eng- the metal should not be diverted from es­ at somewhere around 7-Q pence per eunce. land acting as a channel through which the sential war putposes nor run up to exorbitant It is the isolation of the silver markets or coin is received from the mint -and passed on prices. . the world as a result of the war which has to the clearing and other. banlts. The probable future course is by no means caused these widely divergent prices in dif- - Thus, the holding of coin is affected by the dear. It may be recalled that after the war ferent centers. If arbitrage operations had demands of the public on the banks on the of 1914-18, the price reached 897'2 pence per been posible and, of course, shipping avail- · one hand and on mint supplies on the other. ounce standard, as the form of quotation able, such differences between the principal Demands for silver in recent months have then w;as, equal to about 96% pence per wor-ld markets would have been qui.ckly ad- been known to be heavier, partly due to serv- ounce fine, or. more than double the quota­ justed. ice requirements and partly to shortage tion now current . • Within a year there had The new London price-which, inciden- among the ordinary public. The total of all been a drop to 36%, pence per ounce stand­ tally, is a buying price although the authori- coin issued in the latest statistical bulletin ard, and it is much to be hoped that no such ties do supply the trade for special purchases of the Bank of England was at the record disturbing fluctuations will be permitted to at that price--is slightly above the straight figure of £127,QOO,OOO. occur this time. In this connection, it may London-New Yqrk ,parity, which is a little be noted that a commission of the Bretton/ over 42 pence per ounce, but the authorities MEXICO PLEASED WITH SILVER RISE-GOVERN­ Woods 'Monetary Conference recommended have obviously made allowance for shipping MENT NOTE TO THE UNITED STATJ5S OF that the question of the problems arising for and other charges and, probably, added a AMERICA some nations as a result of such fluctuations little more. It is, of course, impossible eithH should be further studied, and this received to import or export silver without the neces­ - WASHINGTON, September 27.-The Mexican the support of the United States Treasury. sary permits being obtained from the -fiov­ ·Charge d'Affaires, Sefior Rafael De La Colina, The status of silver is, indeed, a perennial ernment. has presented a note to the Acting United problem for -the United States, where an States.Secretary of State, Mr. Dean Acheson, expressing satisfaction at the United States energetic· .and powerful political bloc re­ UNITED STATES OF AMERICA SETS THE PACE peatedly presses the case for producers of action in raising the ceiling price of foreign the metal within the country, and, as p!J.rt Recent events justify the contention al­ silver (to 71.111. cents per fine ounce). of the plan, urges the remonetization -of ways made in London that the world market ' "We hope that it is a happy augury of in­ : silver. The existence until now of differen­ for silver would continue to· be dominated creasing trade . relationship between · the tial prices for domestic and foreign silver in by American politics. During the 1931 slump United States and Mexico," Sefior De La the United States is itself proof of the effec­ in commodity prices, silver dropped to levels Colina told .correspondents. tiveness of the silver-producers' campaign. . wh1ch threatened to make it o:ply a "base" . Questioned as to whether he would suggest This is further attested by the vast stocks of metal. American politics alone saved it from a similar increase in the price of coffee, he the metal held in that country, only the this fate. ' answered that the subject had not been fringe of which has been touched by releases Years of silver purchases and price manip­ raised, but "generally, an increase in prices during the shortages of the war period. ulations have failed to find the· objectives o{ of goods we produce for which the ceiling / Those releases- impinge on .another factor the United States silver bloc attained­ price is considered low will tend to increase In · the outlook for the m..etal. The· United namely, the buying of silver until such time the . puz:chasing power of producing coun..: Sta;tes exported o'ver 400,000,000 ounces of as the monetary stocks of the United States tries." the metal to various countries under the Treasury equalled in value one-third of its lease-lend arrangement. Some part of it gold stocks, or, alternatively, until the price Ready silver in .Bombay was .6 annas up at came to Britain, and presumably it will have had been raised to $1 .29 per. fine ounce. Rs. 136 annas 10 per 100 tolas, as was for­ to be returned in kind•eventua!.Jy. The need The small but at the same time vociferous ward delivery at the same price. Gold was f-or the requisite purchases, coupled with a ai_!d powerful United States silver bloc m ay 2 ann.as d.ff at Rs. 77 annas, 8 per tala, and recrudescence of commercial requirements ~ell , urge another uplift in the domestic sovereigns cheapened Rs. 1 annas 8 tq Rs. 52 which may be -expected, will maintain a de­ silv-er. imnas 8 apiece. A small to moderate business mand for the metal for some time to eome. ·in silver was reported in London and the Its extent, and consequent reactions on prices, MONEY AND EXCHANGEs--BOMBAY BULLION price held at 44d. Gold w.as fixed at 172s. 3d. is impossible to gauge at this stage, irrespec­ STRONG per fine ounce. Tile Alexandria gold quota- tive of whether relaxation of controls gives In sympathy with the rise in ·London silver • tion was unaltered at 19(:) piastres per dirhem free play to the law of supply and demand. prices. Bombay quotatioz:.s were advanced and silver was called 920 ptastres per kilo­ As in the cases of other commodities, sub.­ sharply today. Ready silver rose Rs.3 annas gram. The Argentine special account r'ate for stitutes have had to be employed qurtng the 10 and forward Rs.3 annas 8 to Rs.136 annas settlement of peso debts remained at 16.16 war for various purp<:>ses. How far this ele­ 2 per 100 tolas in each case. Gold was Rs.l peso~ to the pound. American account ster­ ment will favor the contention of those who annas 11 higher at Rs. 79 annas 5 per tola and ling in New York was called $4.02 7'2 to $4.02 % , urge that silver should be a low-priced com­ sovereigns were 8 annas dearer at Rs.54 each~ and 3 months forwal1d at $3.98 bid with no mercial metal, .against the cause of those The LondQn price of silver was again fixed offers. who would have it raised to the United States at 44 pence per ounce and business was on maximum of $1.29 per ounce is another un­ a small scale with trade requirements satis­ The bill (8. 1486) to repeal provi.~ions known quantity. fied from official sources. Gold was fixed at of the Internal Revenue Code imposing 172 shillings 3 pence per fine ounce. The a tax upon tTansfers of any interest in MONEY:..MARKET NOTES--SILVER PRICE RAISED­ Alexandria gold quotation was raised to 190 silver bullion; to remove certain limita­ FOLLOWING UNITED STATES OF AMERICA piastres per dirhem. No change was made tions on the use of·silver; and for other The answer to one of the questions posed in the Argentine special account rate for set­ purposes, introduced by Mr. McCARRAN. · before the week end-namely, what would tlement of peso debts from the previous level was read twice by its title and referred happen t'o the British-controlled price follow­ of 16.16 pesos to the pound. to the Committee on Finance. ing the raising of the American quotation for foreign silver-has been quickly forthcom.:. Mr. McCARRAN. Mr. President, from DISCRIMINATION AGAINST AMERICAN ing. As indicated elsewhere, the London quo­ tbe London Financial. Times of Friday, NATIONALS IN THE BRITISH EMPffiE­ tation was 1tse.lf increased yesterday from its September 28, l ask that there be in· .PERSONAL STATEMENT former level of 2_57'2 pence to 44 pence per serted in the RECORD articles under the · ounce. following captions: "Bank's silver," hav· Mr. MOORE. Mr. President, on . This may cause surprise in some quarters ing to do with the Ban!{ of England; and Thursday last I read into the RECORD in which it h ad been thought that, as the "Mexico pleased with silver rise." some correspondence with the State De­ British market is completely insulated, no partment with reference to the attitude alteration in the price here would be actually ·All these articles are pertinent to my of the- British Government concerning necessary-at least immediately. The fact remarks and pertinent to the bill which facilities of our nationals in the. British remains tha't this country has to purchase I now introduce. Empire and the restrictions· which have silver. Consequently, it could hardly be ex­ There being no objection, the articles pected that producers would continue to sell been placed upon our nationals with were ordered to be printed in the RECORD reference to the rehabilitation of such to us with the United States prepared to as follows: pay a price several pence higher. facilities as have been destroyed during As for the Bombay market, there was no BANK'S SILVER the war: I made no -point whatever and further advance yesterday; indeed, the spot Of some interest in view of the recent ex­ expressed no sentiment with reference quotation was a trifle lower but it has to be citement in silver is the further decline in to the trade restrictions. I mei·ely said, remembered that (a) the price rose there the gold and silvet• in the banking depart­ in substanee, tha,t under the ruling sharply on Saturday; (b) it' had previously ment. The fall is nearly £51,000 and the total had a very sharp recovery after a period 'of of the item at only £224,292 must be an all­ made by the British Government our ext reme ' nervousness; and (c) it is already time low. Less t han a year ago, on November · nationals are prevented from shipping much above even the newly fixed New York 8, to be exact, this item stood at its highest in from our own country supplies for re­ price. The · Bombay price gives a sterling level 1n recent years, at £2,324,352. It is un- habilitation purposes and are required to 9654 CONGRESSIONAL RECORD~SENAT ·E buy such ·supplies in · the· sterling bloc areas, must · be purchased in and supp~ied , _ Mr.•. MORSE.· . Mr. President, will the. area of the British Empire. from those areas during this period of ex- . Senator yield? · ' treme dollar stringency. The fact that I also state.d, as disclosed by the State Standard Vacuum · has offered to supply the Mr: MOORE. I yield. Department, that such supplies were material under reference for the Federated· Mr. MORSE.· I wish . to' say to the unobtainable in the · British Empire. I Malay ·states from the United _ st~tes ot Senator from. Oklahoma .that it is ~t made no reference whatever to reluc­ America and has relinquished all claims for ·my intention,- in the comments I shall · tance on the part of our nationals to b:UY dollar exchange even i,ncluding depreciation, now ·makible- Britain· it becomes the public obligation pf ·every Member of the Senate to ·make Very well, Mr. President; it is ind.eed a This is a letter to 'Mr. Davias. and· Mr. pleasure to accommodate Mr. Ickes. ·In . perfectly clear to the State Dzpartment Ickes o:Z which he has denied any knowl­ and to Great Britain that before we use this connection I should like to read for edge whatever- the RECORD, and· for the information of American tax dollars for such a loan. we : We poi_nted out as strongly as possible that desire to reach more amicable relations ·Mr. Ick~s. a letter . from Mr. · C. Victor a continuation of any such policy could only Barry, United States state Department with England insofar as ·B1·itish ti·ad~ , lead. to uttter chaos, and althpugh they pt-eferentials end ·sterling· area ti:ade .petroleum -attache -in -London, addressed agreed fully with that statement, th·ey felt to Mr. Ralph K. Davies; Deputy Petr-o­ that during' this interim period and until · . policies are concerned: As a. friend of leUm Administrator-for War, which was some permal}ent solution . :was found_:_. · Great Britain, I say that jt is in her best in response to . official request / of the international interest to see to" it that · What, Mr. P.tesident, do :You suppose is her trade policies. are put on top of the Petroleum Administtation for War that the permanent solution to be found? The the matter be taken. up by our State table for the inspection and the judgment permanent solution, no doubt, could be of the Senate before we agree· to make · Department .representatives iri London nothing more than the making of a loan ·with the responsible British agencies. her any such loan p.S· $5,000,000,000. It iS to Great Britain, such as is now being one thing to give Great ·Britain unspar.:. The letter is as ·follows: negotiated by the S~ate Department­ The letter from ·the ·United S tates ingly of our resources to help defeat a _they felt that d~ring this interim period common military enemy but it is quite a State Department petroleum attache ·in and until some permanent solution was London to Mr. Davies, and Mr. Ickes, is 'ditrer.ent thing to loan or give to her for ·found, they had no other alternative. They a token the funds with which to ·carry . as follows: confidently believed that a solution would 'be found- on economic war against us. I a in·reac;ly OCTOBER 2 , 1945. for · this country to make real earnest Memorandum. · The solution, of course, of our furnisJ;l­ To: Mr. Ralph K. Davies. money concessions to Great Britain -and From: Mr. C. Victor Barry, United States ing the money--:- other nations in the United Nations or­ State Depal'tment petroleum attache, Lon­ and rimst be found, but even after this ad­ ganization in the interest of world eco­ don: mission they were unwilling to permit any nomic stability. I recognize that Great The papers you gave me for Mr. Snodgrass company to take the risk of supplying dollar Britain's economic rehabilitation is. vital are returned herewith. · · , materials for which the British Government, to a stable economic world but she must at this moment, could not see their way The subject :thatter of these papers was dis­ eventually to pay. be willing to give up her sterling area cussed fully by Snodgrass (PAW'~ London policy of trade isolationism and her representative) and myself yesterday after­ If there is any lack of information on preferential barriers. noon with Fred Starling and his ~nancial ad­ the part of Mr. Ickes, who declined to visers of the Ministry · of Fuel ahd Power. Hence, Mr. President, in the .debate The British view, which, it was emphatically · adnL.t that he knew anything about this which is ·on its way_:_and it is perfectly stated, has the full endorsement of the Brit- situation, it certainly is stated by the clear, I think,· that a debate is on its -way . ifh Treasury and, in fact, of.the entire British .State Department in the correspondence . ·so far. as the international loans. of this Government, is to the effect that all equip:..: ·I had with .them that. we are doing every.­ ,country r to he .apprnved by the !United ment for petroleum and other industries thing in our power to correct this situa­ States Senate·, are coacerned-it is -go ::. destined for what they consider to be sterling ·tion. ing to be the position of the junior Sena- \ 1945 CO-NGRESSIONAL RECORD-SENATE 9655

tor from Oregon that there is ari obliga­ RECONSTRUCTION FINANCE CORPORA­ CO~FIRMATIONS - tion resting on Great Britain, as well TION EXecutive nominations confirmed by as on the United States, to see to it that The legislative clerk read- the nomina- the Senate October 15, 1945: this thing called international trade co- tion of Harvey Jones Gunderson to be a FOREIGN SER:VICE - operation works both wa:vc;. I do not memlier of the ·Board of Directors. , TO BE FOREIGN SERVICE OFFICERS OF CLASS 1, SEC­ 1ntend to cast votes in the Senate which The PRESIDING OFFICER. Without RETARIES IN THE DIPLOMATIC SERVICE, AND sell American industry and American objection, the nomination Is confirmed. CONSULS GENERAL OF THE UNITED STATES OF international trade short. AMERICA Mr. MOORE. ·I thank the Senator FOREIGN SERVICE Leland B. Morris _ from Oregon. I may say that I am in The legislative clerk procE:eded to read Willys R. Peck full accord with the views he has ex­ sundry nominations·inthe Foreign Serv­ TO BE CONSUL 9ENERA~ OF THE UNITED STATES pressed with reference to international -ice. OF AMERICA trade. The. PRESIDING OFFICER. Without Harold D. Finley . I am fully cognizant of the necessity objection, the nominations are confirmed TO BE CONSULS OF THE UNITED STATES OF of our having trade with the British Em­ en bloc. AMERICA pire. I merely made reference to the POSTMASTERS Park,er T. Hart Walter Smith muddle-headed editorial in the Wash­ · The legislative clerk proceeded to read Robert J. Cavanaugh Ph'ilip P. Williams ington Post as having just missed thE: sundry nominations of postmasters. William H. ChristensenRoswell C. Beverstock point entirely, displaying complete igno­ The PRESIDING OFFICER. Without Perry Ellis Easton T. Kelsey rance of the position which had been objection, the postmaster nominations Charles S. Millet John Ordway · stated, or being deceptive in an attempt are confirmed en. bloc. TO BE FOREIGN SERVICE OFFICERS, UNCLASSIFIED, to belittle statements made on the Sen­ Without objection, the President will VICE CONSULS OF CAREER, AND ~ECRETARIES IN ate :floor. With reference to the state­ be immediately notified ·of all confirma- THF; DIPLOMATIC SERVICE OF THE UNITED ment I made, I did refer, I am sure, to· tions of today. · STATES OF AMERICA the recent treaty we have negotiated Herbert D. Brewster Weldon Litsey ADJOURNMENT TO THURSDAY Maurice J. Broderick LeRoy Makepeace with Great Britain, which will presently James M. Byrne Miss Betty Ann come before the Senate for ratification, Mr. McCARRAN. I move that the Francis H . Columbat Middleton having to do with our handling of the oil Senate adjourn until Thursday next at Robert F. Corrigan Cabot Sedgwick industry throughout the world. I said 12 o'clock noon. · Russell H. Fifield Herbert D. Spival{ the practice to which I referred was a The motion was agreed to; and le reports of April 1945. . Alfred Connelly, Achille. Vice Adm. WilliamS. Farber, United Sta.tes Oda. L. Benn, Dougherty. nominations were submitted: !javy, to be a 'vice admiral in the Navy, for Velma B. McKinzie, Elmer. By Mr. McCARRAN, from the Committee temporary service, to rank from the 3d day Frances Ausmus, Garvin. on the Judiciary : .. · of April 1945. William A. Sweeney, Hendrix. John F. Sonnett, of New York, to be an Civil Engineer Ben Moreen to be a civil Kennie W. Gass.away, Monroe. Assistant Attorney General, vice Francis M. engineer in the Navy, with the rank of vice · William T. Dunswerth, Thackerville. Shea, resigned. adil).iral, for temporary service, to rank fro'm OREGON By Mr. McKELLAR,'from the-Committee on the 1st day of February 1944. Post Offices and Post Roads; · Pay Director Rober.t F. •Batchelder to be a John W. Knott, Coburg. Sundry postmasters. pay director in the Navy, with the rank of Alice W. Porter, Long Creek. commodore, for temporary servic·e, to con­ Walter E. Hickok, Terrebonne. The PRESIDING OFFICER. If there tinue while serving as Director of the Navy Florence N. Pearson, Timber. Laura Thompson, Tualatin. be no further reports of committees; the Material Redistribution-and Disposal Admin­ clerk will proceed to state the nomina­ istration and until reporting for other per­ VInGINIA tions op the Executive Calendar. manent duty. Doris B. Reames, Ford. 9656 . CONGRESSIONAL RECORD-HOUSE OCTOBER 15 WITHDRAWAL Mr. SULLIVAN ·asked and was given The SPEAKER. Is there objection to Executive nomination withdrawn from permission to extend his remarks and the request of the gentleman from Ala­ the Senate October 15, 1945: include an editorial. bama?.' POSTMASTElt Mr. BUNKER asked and was given per­ There was no objection. mission to extend his remarks in- the A BiaOW TO COMMUNISM NEW YORK RECOR-D. William H. Smith to be postmaster at Mr. ROONEY. · Mr. Speaker, I ask Swormville in the State of New York. Mr. MADDEN asked and was given per­ mission to extend. his remarks and in­ unanimous consent to address the House clude an editorial from the Geary Post­ for 1 minute and to revise and extend .Tribune. my remar ks. . ' Mr. DOYLE. asleed and was given per­ The SPEAKER. Is there objection to < HOUSE OF REPRESE-NTATIVES · mission to extend his remarks in two in­ the request of 'the gentleman from New York? · MoNDAY, OcTOBER_ 15, 1945 · stances and to include short editorials. · Mr. BLOOM asked and was given per­ There was no objection. The House met. at 12. o'clock noon. mission to extend his remarks on three .' [Mr. RooNEY. addressed the House. Rev. · Robert E. Sherrill, pastor ·of separate subject-s and · inelude in each _His r~marks appe~r in the Appendix.] ' Washington . Heights Presbyterian edit.-oriaJs or newsl!laper artictes. ~ • EX,.TENSIQN , OF REMARKS Church, offered ,the follo'Ying p;rayer: Mr. ~LLER asked and was given per­ Mr. PITTENGER asked and was given , Almighty God, in whom we live and mission to extend 'his remarks ori two permission to extend his remarks in the move and have our being, we do pause to :subjects, one on the subject of the Com­ ·RECORD in two instances and to include ·acknowledge Thee as creator and ruler munications Act of 1934, arid in the other in each extension of remarks newspaper · of the e;nds of the earth. Thy majesty is to extend an address by Thomas E. Lyons, ttem& • · in the heavens and Thy glory does cover executive secretary.of the Foreign Trade Zones Board, Department. of Cpmmerce, IN HONOR OF PFC PAUL E. DAVIS tfie world. We thank Tiiee for-the priv­ Mr. sc:H\JI.iABE of , ilege of drawing near unto Thee and on the subject of port efficiency.....:...key to Okiahom~. ·Mr. claiming Thee as our Father and our increased foreign trade. · Speaker, I ask unanimous consent to ad­ Mr. HOEVEN asked and was given per­ dress the House of 1 minute and to revise God. and extend my remarks. . Forgive us for the ·things that have mission to extend his· remarks in two separated us from Thee-our haste with instances, in one to· include a magazine Th~ SPEAKER. Is there objection to article and in the other to include a re­ the request of the gentleman from Okla­ the affairs of the world, our blindness to homa? lasting values, our indifference . to those port of four Members of Congress who visited two Army separation centers. There was no objection. in need, our supreme interest in self,· our [Mr. ScHWABE of Oklahoma addressed ignorance of our own folly, our stupidity Mr. WOODRUFF of Michigan. Mr. Speaker, I ask unanimous consent to ex­ the House. His remarks appear in the in failing to profit by the past, our lack Appendix. J - of zeal for things that matter most. tend my remarks in the RECORD and to Hear us and bring us back into Thy way. include therein a very .splendid article IF TIME IS OF THE ESSENCE WHY NOT Almighty Father, give us the wisdom .on the atomic bomb written by Dr. E. M. SAVE IT? and courage to put our faith into prac­ Langer, research associate of physics of · Mr. BENNETT of Missouri. Mr. tice. Teach us to respect and honor one the California Institute of Technology, Speaker, I ask unanimous consent to ad­ another, that we may meet our common which appeared in Collier's Weekly for dress the House for 1 minute and to re­ problems without contention and strife. September 29, 1945. . vise and extend my remarks in the · This' is a rather lengthy article and Build up our Nation into a force for RECORD. I righteousness, that we may not lose the exceeds the limit fixed by the Joint Com­ The SPEAKER. rs· there objection tp last chance that fs before us. Let Thy mittee on Printing. The Print1ng Office the request of the gentleman from Mis- . wisdom and Thy benediction rest upon . advised me, it will cost $156 to print. souri? those who guide the affairs of govern­ NotwitP.standing the cost, I ask unani­ There was no objection. ment in our land, that Thy kingdom mous consent that I may insert it in the [Mr. BENNETT of Missouri addressed may come and Thy will be done on earth RECORD'7" . the House. His remarks appear in the as it is in heaven. Through Christ our The SPEAKER .. Notwithstanding the Appendi~.] Lord. Amen. cQst, without objection, the extension may be made. BRINGING OUR SOLDIERS AND SAILORS The J om;nal of the proceedings of There was no objection. . FROM OVERSEAS BACK HOME Thursday, October 11, 1945, was read and approved. Mr. WOODRUFF of Michigan asked Mr. SPRINGER. Mr. Speaker, I ask . and was giv-en permission to extend his unanimous consent to address the House MESSAGE FRO~ THE SENATE remarks in the RECORD and to include ·for ·1 minute, to revise and extend my A message from the Senate, by Mr. th~rein an article which appeared in the remarks in the RECORD and include ex­ Frazier, its legislative clerk, announced New York Times of Sunday,· October 7, tracts from a letter and newspaper. . that the Senate had .Passed a joint reso­ by Dr. George S. Townes, director of the The SPEAKER. Is there objection to lution of the following ·title, in which the divjsion of the foundation of education. the request of the gentleman from In- concurrence of the House is requested: at Teachers College, Columbia Univer­ diana? · · S. J. Res. 100. Joint resolution permitting sity, on the question of conditions in There was no objection. alcohol plants to produce sugars or sirup si- · Russia. [Mr. SPRINGER addressed the House. multaneously with the production of alco­ Mr. DONDERO. Mr. Speaker, I ask hol until July 1,· 1946. unanimous consent that the gentleman Hi~ remarks appear in the Appendix. l EXTENSION OF REMARKS from North Dalcota [Mr. ·RoBERTSON] EXTENSION OF REMARKS may extend his remarks in the Ap­ Mr. RICH. Mr. Speaker, I ask unani­ M'r. BULWINKLE asked and. was given pendix of the RECORD and include therein permission to extend his remarks in the mous consent to extend my remarks in a newspaper editorial. the Appendix of the RECORD and to in­ RECGRD and include therein an article The SPEAKER. Is there objection to fro:rp· the Gastonia Gazette of October clude an article by Gordon Duke, of 13, 1945. . ' the request of the gentleman from Southeastern Oil and Affiliates, Jackson­ Michigan? · ville, Fla. This is an article well worth Mr. ROONEY asked and was given per­ There was no objection. mission to extend his remarks in two while and should be read by all the people. instances, in one to include an article PERMISSION TO ADDRESS THE. HOUSE I also ask unanimous consent tc extend from the Brooklyn Eagle of October 14 Mr. PATRICK. .Mr. Speaker, I ask my remarks in the RECORD ·and to include entitled "Team Play Won Brooklyn Its unanimous consent that I may address an advertisement appearing in the Veterans' Hospital," and in the other to the House for 10 minutes on tomorrow, Washington Star of October 6, entitled include a set of resolutions of the Clan­ Tuesday, after the legislative business of "Who's Right and Who's Wrong?" This Na-Gael of New York and Bronx Coun .. the day and other special orders hereto .. · · article is also well worth while to deter­ ties. fore entered. mine who was right and who waS. wrong.