1774 CONGRESSIONAL RECORD-SENATE .FEBRUARY 1.1, 999. Also, Joint resolution of the State of Wisconsin re­ lating to the immediate cash payment of the veterans' ad­ SENATE justed-service certificates and the cancelation of accrued in­ MONDAY, FEBRUARY 11, 1935 terest and refund of interest paid thereon; to the Commit­ tee on Ways and Means. (Legislative day of Thursday, Feb. 7, 1935) 1000. Also, joint resolution of the State of Wisconsin me­ The Senate met at 12 o'clock meridian, on the expiration morializing the Congress of the to pass, and of the recess. the President of the United States to approve, .if passed, the THE JOURNAL General Pulaski's Memorial Day resolution now pending in Congress; to the Committee on the Library. On request of Mr. ROBINSON, and by unanimous consent, the reading of th,e Journal of th~ proceedings of the calendar 1001. Also, joint resolution of the State of Wisconsin, me­ day Friday, February 8, 1935, was dispensed with, and the morializing Congress to continue investigation into activities Journal was approved. of munitions manufacturers and to publish the findings and recommendations of the Senate committee thereon; to the MESSAGE FROM THE HOUSE Committee on Military Affai,rs. A message from the House ·of Representatives, by Mr. 1002. By Mr. STEFAN: Resolution adopted by the Ne­ Megill, one of its clerks, announced that the House had braska State Senate, memorializing the Congress of the passed a bill CH. R. 5255) making appropriations for the De­ ·united States to pass the General Pulaski Memorial Day partments of State and Justice and for the judiciary, and 'resolution now pending in Congress; to the Committee on for the Departmenti of Commerce and Labor, for the fiscal the Library. · year ending June 30, 1936, and for other purposes, in which 1003. By Mr. THOMASON: Petition of residents of El it requested the concurrence of the Senate. Paso County, Tex., endorsing the Townsend plan of old-age pension legislation; to the Committee on Ways and Means. CALL OF THE ROLL 1004. Also, petition. of the residents of Ector County, Tex., Mr. ROBINSON. I suggest the aooence of a quorum. endorsing the Townsend plan of old-age pensions; to the The VICE PRESIDENT. The clerk will call the roll Committee on Ways and Means. The legislative clerk called the roll, and the following Sen­ 1005. Also, pe.tition of the residents of Reagan County, ators answered to their names; Tex., endorsing the Pope plan of old-age pension legislation; Adams Connally Hayden Pope to the Committee on Ways and Means. Ashurst Coolidge Johnson RadclUfe 1006. By Mr. TURNER: Petition§ from 5 residents of Law­ Austin Copeland Keyes Reynolds Bachman Costigan King Robinson rence County, 1 resident of Dickson County, 4 residents of Balley Couzens Logan Russell Hickman County, 9 residents of Giles County, 3 residents of Bankhead Cutting Lonergan Schall Barbour Davis Long Schwellenbacb Wayne County, 2 residents of Williamson County, 1 resident Barkley Dieterich McAdoo Sheppard of Maury County, all of ·the state of Tennessee, requesting Bilbo Donahey Mccarran Shipstead passage of Dr. ;I. E. Pope old-age pension bill; to the Com­ Black Duffy McGill Smith Bone Pletcher McKellaT Steiwer mittee on Ways and Means. Borah · Frazier McNary Thomas, Okla. 1007. By Mr. WERNER: Petition of citizens and residents Brown George Maloney Thomas, Utah Bulkley . Gerry Metcalf Townsend of Bonesteel, Gregory-County, S. Dak., favoring legislation Bulow Gibson Minton Trammell covering star routes that will eliminate competitive bidding Burke Glass Murphy Truman and provide adequate compensation for services rendered by Byrd Gore Murray Tydings Byrnes Guffey Neely Vandenberg star-route contract carriers; to the Committee on the Post Capper Ha.le Norris Van Nuys Office and Post Roads. caraway Harrison Nye Walsh Carey Hastings O'Mahoney Wheeler 1008. By Mr. WITHROW: Memorial of the Legislature of Clark Hatch Pittman White the State of Wisconsin, memorializing Congress to continue investigation into activities of munition manufacturers and Mr. ROBINSON. I wish to announce that the Senator to publish the findings and recommendations of the Senate from Louisiana [Mr. OVERTON] is absent from the Senate committee thereon; to the Committee on Military Affairs. because of illness, and that the Senator from New Jersey 1009. Also, memorial of the Legislature of the State of [Mr. MooREJ and the Senator from New York [Mr. WAGNER] Wisconsin, relating to the immediate ·cash payment of the are detained on official business. veterans' adjusted-service certificates and the cancelation of Mr. DIETERICH. I desire to announce that my colleague accrued interest and refund of interest paid thereon; to the the senior Senator from lliinois [Mr. LEw1sl is absent on Committee on Ways and Means. important departniental business. · 1010. Also, memorial of the Legislature of the State of Mr. AUSTIN. I announce that the Senator from Iowa Wisconsin, requesting the Congress of the United States to [Mr. DicKINsoNl, the Senator from Wisconsin [Mr. LA FoL­ advise the Legislature of Wisconsin as to the effect upon LETTE], and the Senator from South Dakota [Mr. NORBECK] Congress of resolutions memorializing that body; to the are necessarily absent. Committee on Rules. The VICE PRESIDENT. Eighty-eight Senators have 1011. Also, memorial of the Legislature of the State of answered to their names. A quorum is present. Wisconsin, memorializing the Congress of the United States REPORT OF THE COMPTROLLER OF THE CURRENCY to pass, and the President of the United States to approve, if passed, the General Pulaski's Memorial Day resolution The VICE PRESIDENT laid before the Senate a letter now pending in Congress; to the Committee on the Library. from the Comptroller of the Currency, transmitting, pur­ 1012. By Mr. WOLCOTT: Petition of Walter Boesenecker, suant to law, the Annual Report of the Comptroller for the of Vassar, Mich., and 49 others, all residents of Tuscola year ended October 31, 1934, which, with the accompanying County, Mich., urging the prompt enactment into law of the repart, was referred to the Committee on Banking and Frazier-Lemke refinancing bill; to the Committee on Agri .. Currency. culture. CLAIM OF MAY C. GUSTIN 1013. By Mr. NICHOLS: Petition of numerous citizens of The VICE PRESIDENT laid before the Senate a letter Oklahoma, urging support of House bill 2856; to the Com­ from the Comptroller General of the United States, submit­ mittee on Ways and Means. ting, pursuant to law, his report and recommendations on 1014. By the SPEAKER: Petition of the Corona Com­ the claim of May c. Gustin

PETITIONS AND MEMORIALS by manual labor and thereby provide work for a considerable num- ber of men; and - · · The VICE PRESIDENT laid before the. Senate the fol­ Whereas there would result a great benefit to science and the lowing concurrent resolutions of the Legislature of the State study of paleontology by adding the area to our permanently pre­ of Arkansas, which were referred to the Committee on served institution; and Whereas the virtue of preserving and developing the area con­ Agriculture and Forestry: taining the forest in the interests of the people of this State and House Concurrent Resolution 4 of those of all other States is almost self-evident: Now, therefore, A resolution to aid distressed farms be it Resolved by the Assembly and Senate of the State of California, Whereas as a large number of farms are now heavily indebted; jointly, That the President and the Congress of the United States and do enact legislation for the purpose of creating the petrified red­ · Whereas the Federal L.and Bank of St. L.ouis and the land bank wood forest as a national park and monument; and be it further commissions are relieving only about 15 percent of the farms so Resolved, That the chief clerk of the assembly transmit copies of encumbered; and this resolution to the President and Vice President of the United Whereas the Frazier-L.emke bill now pending in Congress, if States, to the Speaker of the House of Representatives, to each passed, will provide for another farm-lending agency which will Senator and Member of the House of Representatives of California loan up to 90 percent of the appraised value of the farm, which in the Congress of the United States, to the Secretary of the Inte­ will save many farm homes to the farmers now living on them: rior, the Director of the Smithsonian Institution, the California. Therefore be it State Park Commission, and the department of paleontology at the Resolved, That we, the House of Representatives of the State of University of California, and that such Senators and Members from Arkansas, assembled, the senate concurring therein, ask that this California and others be urged to support such legislation. bill be passed at as speedily a time as possible. · A true, compared, and correct copy. The VICE PRESIDENT also laid before the Senate the [SEAL] H. P. SMITH, Chief Clerk. following joint resolution of the Legislature of the State of California, which was referred to the Committee on Com­ House Concurrent Memorial 5 merce: Memorial to the Congress o~ the United States of America to enact Assembly Joint Resolution 33 the Frazier-L.emke farm refinance bill (S. 212 and H. R. 2066) Relative to memorializing -Congress to request the President and To the honorable Senate and House of Representatives of the the Congress of the United States to invite the people of the United States of America: world to participate in the San Francisco :aay Bridge Exposition Whereas, unless immediate relief is given, thousands of addi­ to be held at the city and county of San Francisco, State of tional farmers will lose their farms -and homes and thousands more California, during the year 1938 will be forced into our cities and villages, and the army of unem­ ployed will necessarily increase to alarming proportions; and Whereas two great bridges of world renown wm be completed on Whereas there is no adequate way of refinancing all existing or about the 1st day of January 1938, spanning San Francisco Bay, agricultural indebtedness and the farmers are at the mercy of their connecting the city and county of San Francisco with Marin and mortgagees and creditors throughout this State and Nation; and Alameda Counties; and Whereas the Frazier-L.emke refinance bill, being S. 212 and H. R. Whereas the erection of these two bridges is a monumental 2066 in the Congress of the United States, provides for liquidating achievement of civilization; and and refinancing of agricultural indebtedness at a reduced rate of Whereas it is befitting that the people of the world be invited interest through the Farm Credit Administration and the Federal to celebrate the completion thereof: Now, therefore, be it land banks; and Resolved by the Assembly and the Senate of- the State of Cali­ Whereas the Frazier-L.emke bill has the endorsement of 22 fornia, jointly, That the Legislature of the State of California State legislatures and in addition the lower houses of the States most respectfully urges and requests the President and the Con­ of New York and Delaware and of many commercial clubs, cham­ gress of the United States to invite the people of the world to bers of commerce, bank organizations, and of business and pro­ participate in said San Francisco Bay Bridge Exposition to be fessional men and women, as well as the great majority· of the held in said year 1938; and be it further farmers of this Nation; and - Resolved, That the chief clerk of the assembly transmit copies Whereas recovery in all lines of business is being retarded by of this resolution to the President and Vice ·President of the the lack of adequate relief for agriculture, which is the basic United States, to the Speaker of the House of Representatives, and­ industry of this country, and unless credit is extended so that the to each Senator and Member of the House of Representatives from farm indebtedness can be refinanced at a low rate of interest and California in Congress of the United States, and that such Senators long terms of payment, normal business conditions are not likely and Members from California be urged to support such exposition. to _be restored and there can be no recovery until agriculture is The VICE PRESIDENT also laid before the Senate the put upon a sound basis; and Whereas the enactment of this bill will have a vital effect not following joint resolutions of the Legislature of the State only upon agriculture but upon all classes of industry: There­ of California, which were referred to the Committee on fore be it Finance: · Resolved, That the House of Representatives of the Fiftieth Assembly Joint Resolution 8 General Assembly of the State of Arkansas, the senate concurring, memorialize the Congress of the United States to immediately pass Memorializing Congress to grant consent to taxation by the several tpe Frazier~L.emke bill (S. 212 and H. R. 2066); be it further States of certain interstate sales Resolved, That the chief cleik of the house of · representatives Whereas necessity for property-tax relief is imperative in Cali­ forward at once a copy of this memorial to the President of the fornia as well as in other States throughout the Union; and Senate and the Speaker of the House of Representatives of the Whereas 26 States in an effort to afford property-tax relief and United States and to each Senator and Representative in Con­ to provide revenue for essential functions of government have gress from this State·, to the President of the United States, and enacted laws imposing taxes based upon or measured by sales of to United States Senator LYNN J. FRAZIER and Congressman Wu.­ tangible personal property purchased and delivered in such States; LIAM LEMKE. and A true, compared, and correct copy of house concurrent memo­ Whereas no less than 65 percent of the population of the United rial no. 5. States now resides in States with such laws; and [SEAL} H.P. SMITH, Chief Clerk. Whereas by virtue of judicial interpretation of the Federal Con­ stitution the States may not levy without the consent of Congress The VICE PRESIDENT also laid before the Senate the taxes based upon or measured by sales moving in interstate com­ following joint resolution of the Legislature of the State of merce; and California, which was referred to the Committee on Agricul­ Whereas as a result of such an interpretation there is a dis­ crimination in favor of interstate sales as against intrastate sales; ture and Forestry: and Assembly Joint Resolution 18 Whereas such discrimination if permitted to continue will tend . Relative to memorializing the President and Congress to enact to divert business from normal channels in California and else­ such legislation as shall be necessary to acquire the petrified red­ where throughout the Union, thus subjecting local merchants to wood forest in Sonoma County, Calif., for the purpose of estab­ unfair competition; and lishing it as a national park and monument Whereas it is of vital importance to the welfare of the people Whereas there is existent in the county of Sonoma, State of Cali­ of the United States that all thirigs be done to promote the fornia, one of nature's great phenomena in the form of a redwood stability of local business in order that the financial structure forest which has become petrified; and of California and other States throughout the Union may be pre­ Whereas it is a matter of almost common knowledge that but served; and one other-petrified forest exists in the United States, it consisting Whereas it rests within the power of Congress to permit the of trees other than redwood; and States to levy nondiscriminatory taxes upon sales in interstate Whereas countless numbers of people from the entire length and commerce; and breadth of the land visit the forest by reason of its great natural Whereas the Honorable PAT HARRISON, Senator from Mississippi, interest; and introduced a measure at the second session of the Seventy-third Whereas the establishment of the area embracing the trees as a Congress designed to afford the States relief in this matter, and park and monument would require a great amount of excavation reading as follows: 1776 CONGRESSIONAL RECORD-SENATE FEBRUARY 11 "S. 2897 Assembly Joint Resolutton ..24 "An act to regulate interstate commerce by granting the consent Relative to uniform taxation of petroleum-producing property of Congress to taxation by the several States of certain inter­ Whereas there is a Ia.ck of uniformity in the methods of apprais­ state sales ing and taxing petroleum-producing property by the various taxing "Be it enacted, etc., That all taxes or excises levied by any units of the State of California and the various petroleum-produc­ State upon sales of tangible personal property, or measured by ing States of the United States; and sales of tangible personal property, may be levied upon, ar Whereas it is desirable that .the present inequities be remedied; · measured by, sales of like property in interstate commerce, and by the State into which the property is moved for use or Whereas it may be desirable and practicable to adopt uniform consumption therein. in the same manner, and to the same methods and rates of taxation upon such property by the several extent, that said taxes or excises are levied upon or measured by oil-producing States: Now, therefore, be it sales of like property not in interstate commerce and no such .Resolved by the Assembly and the Senate of the State of Califor­ property shall be exempt from such taxation by reason of being nia, jofntly, That the Legislature of the State of California hereby introduced into any State or Territory in original packages, or con­ requests the American Legislators' Association to call a .conference tainers, or otherwise: Provided, That no State shall discriminate of the representatives of the oil-producing States with a view to against sales of tangible personal property in interstate commerce, formulating uniform legislation and methods of taxing petroleum­ nor shall any State discriminate against the sale of products of producing property; be it further any other States: Provided further, That no State shall levy any Resolved, That if such a conference is called the delegates from tax or excise upon, or measured by, the sales in interstate com­ the State of California shall consist of a member of the assembly. merce of tangible personal property transported for the purpose of to be appointed by the speaker. a member of the senate, to be ap­ resale by the consignee: Provided further, That no political sub­ pointed by the president of the senate, a member to be appointed division of any State shall levy a tax or excise upon, or measured by the Governor; be it further by, sales of tangible personal property in interstate commerce. For Resol11ed, That a ccpy of this joint resolution be transmitted to the purposes of this act a sale of tangible personal property trans­ the American Legislators' Association, to the Governors of the ported, or to be transported, in interstate commerce shall be con­ petroleum-producing States, and the presidents of the senate and sidered as made within the State into which such property is to be speakers of said States with the Tequest that they submit it for transported for use or consumption therein. whenever such sale is action by the legislatur-es of their States. made, solicited, or negotiated in whole or in part within that Assembly Joint Resol~tion 29 State. "SEC. 2. Receivers, liquidators, referees, and other officers of any Relative to fostering and protecting grape and wine Industries court of the.United States are required to pay all taxes and licenses Whereas the grape and wine industries provide a livelihood for levied by any State or subdivision thereof the same as corpora­ upwards of 150,000 persons, comprising grape growers, winery tions, partnerships, concerns, persons, or association of persons are workers and their dependents in California, in addition to many required to pay the same"; and thousands in other States and in addition to many thousands em­ Whereas said measure was passed by the Senate on March 15, ployed in various allied industries in this State and elsewhere; and 1934, but was not voted upon by the House of Representatives Whereas these industries, after 15 years of compulsory stagna­ and hence did not become law; and tion due to the prohibition laws, are now again in a position to Whereas need for such legislation is imperative in order to cor­ Yecover their losses and to contribute greatly to the public wel­ rect grave injustice in California. and in .all other States through­ fare because the industries above named already comprise the out the Union where taxes are based upon or measured by sales second largest agricultural pursuit in California with in excess of of tangible personal property: Now, therefore, be it 500,000 acres of vineyards and 654 wineries in active operation, Resolved by the Assembly of the State of California (the senate altogether representing an investment exceeding $420,000,000; and thereof concurring), That the Congress of the United States be, and Whereas the·increasing use of wine as an article of food in cer­ it is hereby memorialized to give relief to the State of California and tain major consuming centers, including California, offers the all other States imposing taxes based upon or measured by sales most promising available means of increasing "the prosperity and of tangible personal property by immediately providing for the speeding the agricultural, industrial, and business recovery of this regulation of interstate commerce through granting consent to State, and also holds promise of developing the grape and wine taxation by the several States of certain interstate sales as pro­ industries into the greatest industries of California; and vided by the measure (S. 2897) introduced by Senator HARRISON Whereas the principal obstacle now delaying the extensive de­ during the second session of the Seventy-third Congress; and be velopment and, in fact, seriously hampering the present recovery it further of these industries is the blocking of the wine distribution chan­ Resolved, That copies of this resolution be sent to the presiding nels, in many parts of the Nation, by certain types of excessive officers of the legislative bodies of all other Sta.tes of the United taxation, excessive licensing, and ·regulatory restrictions, which ob­ States, with the request that they transmit similar memorials to stacle is created almost entirely by the widely prevalent misun­ Congress, and that copies of this resolution be transmitted to the derstanding of the true function of wine, which is, in fact, an President of the United States, to the President of the Senate, and integral part of the diet, entitled to be classified and treated as the Speaker of the House of Representatives of the Congress of a food rather than as a liquor; and the United States, to each of the Members from California of the Whereas such obstacles to wine distribution act to increase the Senate and the House of Representatives of the United States, and cost of wine beyond the average family's food budget, and also to to the Honorable PAT HARRISON, United States Senator from Missis­ prevent the product from being made conveniently available for sippi, author of the measure which would afford the States relief use in the home, therefore working a discrimination against con­ in this important matter. sumers of ordinary means by placing wi~e in a luxury class, in which it is available only to a wealthy few; and Whereas the experience of the State of California, which bas Assembly Joint Resolution 17 during the past year received in excess of $250,000 in revenue from Relative to memorializing the President and the Congress of the a reasonable tax upon wine, has demonstrated that a reasonable United States to not impair the flax industry of the Western tax upon wine can return a larger net revenue to a taxing unit States by reciprocal tariff arrangements with any country so as than can be obtained from an excessive tax which hampers to lower the duty on fl.ax distribution: Now, therefore, .be it Whereas a comparatively new and extensive industry has arisen Resolved by the Assembly and Senate of t1ie State of California, jointly, in the Western States in the propagation and cultivation of fl.ax; and That the Legislature of the State of California respect­ fully urges the President and Congress of the United States and Whereas the acreage planted to fl.ax in Californla alone has in­ California's Senators and Representatives in Congress to do all creased from approximately 80 acres to over 50,000 acres under cultivation in the last 3 years; and in their power to remove all unwarranted obstacles to wine dis­ tribution, so that the recovery and the Nati.on-wide growth of the Whereas this tremendous percentage of in"Crease in this short grape and wine industry may be encouraged in this State, as well space of time merits serious consideration before any reduction in as in other States, and so that consumers of average means may tariffs is contemplated; and be enabled to obtain wine conveniently and at reasonable prices Whereas this infant industry has grown with such rapidity that within the family food budget; and be it further in a few short years it bids to gurpass, at the present rate of Resolved, That copies of this resolution be transmitted to the increase, all major crops of the Western States: Now, thllrefore, be 1t President of the United States, the Vice President, the Speaker of Resolved by tlie Assembl'!/ and Senate of tlie State of Ca'liJornia, the House of Representatives of the Congress of the United States. jointly, That the President and the Congress of the United States and to Califotnia's Senators and Representatives in Congress. be memorialized and respectfully urged to carefully consider the interests of the farmers who have entered this new industry. and that no reciprocal tariff arrangements be entered .into by this Assembly Joint Resolution 35 Nation with other countries which -shall lower the taTUf Tates Relating to memorializing Congress to consider the almond indus· applicable to the fiax industry; and be it .furth-er try of California and to maintain the existing ta.ritf regulations Resolved, That the chief clerk of the assemb1y is hereby TO­ thereon quested to transmit copies of this resolution to the President and Whereas the growi~ and marketing of almonds ts one .of Cali.. the Vice President of the United States, to the Speaker of the House fornia's great agricultural industries; and of Representatives, and to each Senator and Member of the House Whereas this is a specialty crop, not always fully understood by of Representatives from California in the Congress of the United those unfamiliar with Oa.lifornia conditions, and with great -pres­ States, and that such Senators and Members from California. are ent and future possibilities; and hereby respectfully requested a.nd urged to protect the flax indm;try Whereas this industry annually provi

Whereas the wheat, tobacco, cotton, and hog farmers have and SALE OF LIQUOR TO UNIFORMED MEMBERS OF THE MILITARY FORCES are now enjoying an increase in prosperity from the benefits of said legislation; and Mr. DAVIS. Mr. President, I send to the desk and ask Whereas the Congress of the United States has caused the in­ ·unanimous consent to have printed in the RECORD a letter I crease in the cost to the consumer in the necessities of life, to wit, have received from Edmund L. Flynn, with accompanying fatback, retailing at 20 to 25 cents per pound; cotton goods, from 15 to 30 cents per yard; fl.our, from $1.25 and more for a 25-pound resolutions. I request that the letter and the accompanying bag, and other commodities in like higher prices; and resolutions adopted by the Liquor Control Committee of the Whereas the Congress of the United States has done nothing to Western Pennsylvania Restaurant Association, after inser­ Increase the price of sweet and Irish potatoes. Sweet and Irish potatoes are now selling from 40 to 60 cents per bushel, according tion in the RECORD, be appropriately referred. to grade; and . The Restaurant Association urges the repeal of the act Whereas farmers in 36 States in the United States grow sweet of Congress of May 18, 1917

By Mr. SHIPSTEAD: POSTMASTER GENERAL FARLEY A bill (S. 1798) to extend the time in which suit may be Mr. LONG. Mr. President, out of order, I ask unanimous brought on veterans' yearly renewable term insurance; to consent to submit a resolution. the Committee on Finance. The PRESIDENT pro tempore. Without objection, the A bill (S. 1799) granting an increase of pension to Anna resolution will be received. M. Gentgen; to the Committee on Pensions. The resolution t deserve it, ,must not keep it", and that Congress Lowenthal; James G. McDonald; Roscoe Pound; Owen D. Young. " must transfer that $200,000,000,000 to the debtor class." Two However, for the purpose of this statement I will do what many years are a reasonably short time for deliverances of that sort others are now doing, just wipe out the item of $89,000,000,000 in (which seemed at the time in tune with the temper of the day) to short-term debts and rely upon figures prepared by an authority have departed so far from present realities-even political-that approved by you. Mr. Warburg admits tha.t the banks owe their they impress the reader as an eche> from the distant past. depositors some forty billions of dollars, but he failed to state that the borrowers owe the banks an impressive consolidated sum, and Mr. THOMAS of Oklahoma. Following the printing of also he failed to state that the policyholders owe the insurance the particular portion referred to, I ask permission to have companies a considerable total sum as annual premiums. When discussing insurance companies all classes of such com­ incorporated in the RECORD, as a part of my remarks, the panies should be included in the analysis. By omitting the short­ letter written to the president and publisher of the New York term debts, the debts the borrowers owe the banks, and the debts Times. policyholders owe the insurance companies, we have Mr. Warburg's The PRESIDING OFFICER. Without objection, it is so published statement that he knows all total debts amount to some $281,000,000,000. ordered. When I made my statement to the Senate all debts had to be The letter referred to is as follows: paid in dollars of the value of 25.8 grains of gold, 0.9 fine. My FEBRUARY 11, 1935. amendment provided for a reduction in the weight of the gold Mr. ADOLPH S. OCHS, dollar. Under the amendment· the weight of such gold dollar was President and Publisher New Yark Times, reduced to 15 5/21 grains of gold, 0.9 fine, or a reduction of ap­ New York City, N. Y. proximately 40 percent in the weight of such gold dollar. Now, DEAR MR. OcHs: In your Sunday, February 10, issue of the New because of the amendment, debtors may pay their obligations in York Times, on the editorial page, under the head "The Change do~ars based u~on some 15 instead of some 25 grains of gold. at Washington", you use the following language: This statement IS made upon the assumption that the Supreme " Even today it is impossible to imagine a certain inflationist Court will sustain the amendment and the subsequent act of Con­ apostle repeating to the Senate his declaration of April 24, 1933, gress and likewise the action of President Roosevelt in devaluing that the present owners of the • $200,000,000,000 of bank deposits, the dollar.. Also this statement is on the presumption that any fixed investments, bonds, and mortgages', •did not earn it, did adverse rulmg by the Court will be cured by proper legislation. not buy it, do not deserve it, must not keep it', and that Congress Now, back to my figures. Our total debts are admitted to be •must trans:Eer that $200,000,000,000 to the debtor class.' Two some $281,000,000,000. Such debts may be paid now with dollars years are a reasonably short time for deliverances of that sort of the reduced value in 15-grain gold-valued dollars instead of (which seemed at the time in tune with the temper of the day) 25-grain gold-valued dollars; hence, what is the total saving to the to have departed so far from present realities-even political­ debtors because of the devalued gold dollar? that they impress the reader as an echo from the distant past." Here is the mathematics of it: Inasmuch as I used similar language in presenting the money­ An ounce of gold formerly had a fixed value of $20.67. adjustment amendment to the United States Senate oii. the date By Presidential proclamation the dollar was devalued in terms mentioned, I assume you refer to me as the " certain inflationist of gold, the dollar being made equal to 59.06 cents of its former apostle." value and an ounce of gold being fixed at $35. No doubt that you remember that on the night of the day the Divide $20.67 into $35. Answer, $1.69. statement was made to the Senate you caused such statement to Or stated algebraically: 59.06 is to 100 as $1 is to x. be displayed in large moving electric lights around your New York That equation worked out gives $1.69 as the value of x. institution. Yes; "2 years are a reasonably short time", yet am­ From the foregoing it will be seen that debtors may now pay ple time for almost every person, save the editors of your journal, their obligations with a saving of 69 cents, in the new-valued cur­ to understand what I meant when I explained the amendment to rency, on each dollar; hence, on the admitted total debt of $281 - the Senate. The exact quotation is as follows: 000,000,000, the saving t;o the debtor class, because of the devalu~­ " Mr. President, it will be my task to show that if the amend­ tion of the dollar to date, can be ascertained by multiplying the ment shall prevail it has potentialities as follows: It may trans!er $281,000,000,000 by 69 cents saving on each dollar, and the amount from one class to another class in these United States value to the is some $193,890,000,000. extent of almost $200,000,000,000. This value will be transferred., Should your editors be sufiiciently liberal to admit that there is a first, from those who own the bank deposits; secondly, this value considerable debt owed to the banks by borrowers; that policyhold­ will be transferred from those who own bonds and fixed invest­ ers owe tnsuranee companies considerable sums; and that there is a ments. If the amendment carries and the powers are exercised in considerable short-term debt made up of such items as loans to a reasonable degree, it must transfer that $200,000,000,000 in the banks, loans by Federal Reserve banks to member banks, short-term hands of persons who now have it, who did not buy it, who did not bank loans, short-term business loans, loans to brokers, loans by earn it, who do not deserve it, who must not retain it, back to the brokers, loans by Reconstruction Finance Corporation, loans in the other side, the debtor class of the Republic, the people who owe· form of liabilities of incorporated business concerns, loans in form the mass debts of the Nation." of overdue rents, overdue taxes, overdue interest and overdue Without discussing motives, the impression created and left by insurance premiums, and in addition to the foregoing short-term business debts in the form of short-term indebtedness for house­ your electric-sign news statement and by the reference to me in hold purposes, such as open retail accounts, installment debts your Sunday editorial was that I favored taking $200,000,000,000 of bank deposits, fixed investments, bonds, and mortgages from their retail mercantile debts, and other items which would make up a con~ owners and giving same "to the debtor class.'' All editors at home siderable sum in what might be termed" short-term individual and and abroad, save those working for you, know that what I said family debt", then perhaps your editorial writers might find that my statement made to the Senate that the amendment had poten­ would happen has already happened. The proof is conclusive and tialities sufficient to provide for the transfer from one class to admitted. another class value (not dollars) to the extent of almost $200,000,- You frequently quote Mr. James P. Warburg with approval. On 000,000 was a really conservativ~ estimate and forecast. page 214 of Mr. Warburg's book entitled "The Money Muddle" we .I kBow of the very large circulation of your publication; like­ find that our total massed debts amount to some $281,000,000,000, wise I am convinced that it is the policy of your paper to adhere and itemized as follows: strictly to facts; hence I submit the foregoing as an explanation The United States Government owes the holders of what I meant when my statement was made to the Senate and of its obligations, let us say ______$30, 000, 000, 000 also a justification of the position I then took, and still further this The States and municipalities owe holders of their statement is a reply to your leading editorial published on yes­ obligations, let us say______19,000,000,000 terday. The railroads owe their banks and bondholders Respectfully submit.ted. and other creditors ______13,000,000,000 ELMER THOMAS, Corporations owe their banks and bondholders___ 35, 000, 000, 000 United States Senator, Oklahoma. 1784 CONGRESSIONAL RECORD-· SE~ATE FEBRUARY 11

ECONOMIC SECURITY AND CHILD LABOR~ADDRESSES BY SENATOR Beginning in 1942, any employee 65 ·years of age· who h as paid WAGNER tax~s for at least 200 weeks extending over a 5-year period will b3 entitled to retire. Upon retirement he will receive monthly in­ Mr. ROBINSON. Mr. President, I ask to have printed in surance benefits for the rest of his life. The size of these bene­ the RECORD two brief radio addresses from Washington, D. c .. fits will, of course, depend upon his length of service and hi~ January 26, 1935, by the Senator from New York [Mr. aver!lge monthly wage. The man who has worked 40 years wi~ l receive more than one who has worked 30 years. The man who WAGNER] relating to the so-called "security bill" and other has earned an average wage of $150 per month will receive more subjects pertaining to pending legislation. t~n one who has averaged only $100 psr month. This is only There being no objection, the addresses were ordered to fau, because the employee with the higher wage or the longer be printed in the RECORD, as follows: years of service will have paid more into the fund. But while some workers will receive more insurance and some EcoNOMIC SECURITY BILL less, the system is established upon an actuarial basis that will The depression, like all the great tragedies of mankind, has not assure every retired worker a decent monthly pension for the shown discrimlnation among its victims. Not only has it cut off rest of his life. For those men who enter the system before from their sources of livelihood men and women in the prime of middle age the taxes paid in their behalf by themselves and by life and eager to work but it also has shown no remorse to those their employers will be sufficient to provide that type of security. too old and those too young to live by their own efforts. Indeed, On the other hand, it is quite obvious that the workers who are it is the people at the two extremes of life who have borne the now in middle life will not participate in the system long enough heaviest burdens and are suffering the most horrible aftermath. to protect themselves fully. To take care of these older men the It is to these that society owes an immediate duty now that better bill provides a much higher rate o! benefit payments upon retire­ times are approaching, a duty that involves prevention in the ment. To make this possible without taxing the younger em­ future as well as cure !or the present. The economic security bill ployees for the benefit of the older, contributions will be made by embraces both. the Federal Government. JustJce would be denied 1! we neglected Many different causes have been responsible for our vast army those whose misfortune it has been to be long neglected already. ot dependent old people. There are the huge number who worked No worker will face the possibility of losing anything through like slaves for 40 years or more without ever ea.ming enough to participation in this system. If he dies before reaching the age of set aside provisions for their winter days. There are those who 65, his family will receive the full amount that has been con­ retired 5 or more years ago relying upon the love and generosity tributed in his behalf both by himself and by his employer. I! he of their children, only to find these very children submerged by dies after retirement but before receiving in benefits his total the tide of the depression. There are some who retired. with a credit in the fund, the difference will be paid to his family. No modest competence, but their savings have now been devoured by employee will be forced to retire at the age o! 65. The bill preserves the hunger of relatives who have required assistance. Still others the right of the well and willing man to work as long as his job are being forced out o! industry by the relentless pres.sure o! a remains open to him. But no part of the compulsory tax that an vast army of unemployed younger men. O! these vmous groups, employee pays after 65 will be taken into account in figuring the who would volunteer to say which presents the most pitiful amount of his insurance benefits. This mild incentive to retire­ spectacle? Who dare to deny that all are entitled to a better fate? ment will have the _salutary effect generally of making places for Unfortunately these older people cannot, like younger men, wait the young while providing rest and release from worry !or the vast until the essential soundness of America and the beneficial pro­ majority of the old. gram of the rebuild our economic structure. Fol' them The insurance system does not cover the employee who is en­ there will be no chance to make a come-back. Havin8 borne the gaged in Iionmanual labor at a salary over $250 per month. Nor brunt of battle, they are entitled to the help of society. does it include the man who is engaged in independent business It is no small task to provide for the three and one-half million for himself. people over 65 years of age in the United States who have been To round out the circle o! protection against old-age insecurity reduced to a state o! utter dependency. It cannot be done by the bill also affords anyone an opportunity to purchase voluntary the inadequate and uncertain pension systems that exist in only annuities up to maturity value of $100 per month from the Federal 28 States. It cannot be achieved by haphazard and temporary Government. relief agencies. Their funds are not sufficient. Their methods are In many ways even more tragic than the plight of the old are the not dignified. The first objective of the economic security bill ravages that the depression has wrought in the ranks of American is to bring our needy old people under the protective shelter o! a childhood. Seven million four hundred thousand children are now comprehensive Federal-States system of old-age pensions. upon the relief rolls. Another two and one-half milUon are living a threadbare existence based upon the mother's pension laws that The bill provides Federal subsidies to the States, amounting to many States have enacted. I wonder how many people even $50,000,000 for the year commencing this June, and much larger among those with the broadest humanitarian impulses ai:id the sums will be appropriated for each succeeding year, for the care of deepest social insight. realize that there are 10 000 000 children in dependent old people. Since no State will receive more from the the United States subject to the devastatiiJ.g 'effects of un­ Federal Government than it expends itself for the same purposes, systematic, irregular, and insufficient support? But those wh,o do the natural effect of this law will be a concerted Nation-wide D;Ot know all the figures are fully aware of the delinquency, the campaign to help those who need help most. By 1936 normal sickness, and the vast array of evils generated by such conditions. responsiveness on the part of the States will raise the volume o! The economic security bill takes the first step toward social re­ old-age assistance by 600 percent. Of course, even this hugely ~ponsibility for these f~t~e citizens. It appropriates $25,000,000 increased sum will not be enough. But most of us are confident m Federal funds, in addition to what the States are now spending, that the Federal Government will make vastly larger appropria­ for the care of dependent children. Another $8,500,000 annually tions as soon as the States are ready to match them. Our Nation are provided for crippled children, for maternal and child health will not fail to meet its responsibilities in full once they have been and for other phases of child welfare. In addition, $10,000,000 pe; crystallized in law and backed by overwhelming public sentiment. year are provided for the promotion of publlc health. While these The notion has been spread that since the Federal Government funds a.re to be distributed among the States largely on a matching will match contributions only up to $15 per person per month, no basis. the bill makes very flexible provisions to care for those locali­ State will be stimulated to give more than a like amount. I! ties which are too poor to help themselves. that were true, it would limit old-age pensions to $30 per month. These sums may not seem large in quantitative terms. But the But nothing could be more erroneous. The Federal administrator inauguration of new policies has a value fa.r beyond statistical may refuse to grant. any money to a State unless that State does measurement. Now that we he.ve abandoned the outworn dogma all that it can to maintain its aged people in comfort and decency. that the helpless must help themselves, the way ls cleared to drive For example, suppose that a State at present pays pensions o! destitution and unnecessary suffering from the American scene. $30 per month without Federal aid, it 1s ridiculous ~ imagine . In dealing with these evidences of social maladjustment, we that such a State would be allowed to reduce its own contribution cannot neglect disease itself. The main objective of the new to $15 and receive another $15 from Washington. On the con­ deal is to foster economic arrangements under which misery and trary, the Federal Government would add $15 to what the State want wlll become the extraordinary rather than the common­ is now doing, thus rais!ni the pension level to $45. But 1! a State place. At the very heart of reform lies the problem of unem­ is so poor that it can grant only $15 per month to its dependent ployment. If men are employed, their children will not be desti­ old, the Federal Government will raise the level to $30 by advanc­ tute and their declining years will not be spent in the house of ing an equal amount. This bill is not to pa.ralyz.e State action but want. When we discover how to keep men at work, we shall have to key the States up to the fullest measure of their responsibilities. discovered all. It is not to give the deserving old Federal aid instead o! State a.id, The new deal has taken many steps to create employment. but to give them the largest practicable amount o! both. Public works, loans to private industry, reductions in hours, re­ While we cannot suppress this humanitarian impulse to help employment agreements, higher wages--are familiar devices to those who are now dependent, our final aim is to stamp out the you all. The economic security bill is rounding out the cycle by curse of dependence itself. The time must come when · every adding unemployment insurance to the list. worker will be able to regard the future with serene self-confidence. Many people think of unemployment insurance only as a means The economic security bill, therefore, creates a national com­ of providing for those who are without work. That is one of its pulsory system of contributory old-age insurance. Beginning on important functions, when we remember that even during so­ January l, 1937, every employee will have to pay an annual tax called " good times " there were never less than 1,500,000 jobless equal to one-halt of 1 percent of his yearly earnings. This tax men. But the most significant feature of this remedy is that it will rise gradually to 2¥2 percent in 1957 and will be paid into an will decrease unemployment itself. When business men are old-age fund in the United States Treasury. Each employer will charged directly with the costs of unemployment, they will re­ be taxed to an amount equaling the taxes of all his employees. double their efforts to prevent it. As a result every worker will have to his credit in the old-age In a country as far-flung and diverse in its interests as our fund twice as much as he has paid in plus interest. own. each State should be free to enact the type o! unemployment- 1935 CONGRESSIONAL RECORD-SENATE 1785 insurance law that it desll'es. It should be allowed to set up about objectives. The only problem is one of method. How are State-wide or individual company reserve funds. It should be we going to abolish child labor? allowed to require contributions from employers alone or from The first suggestion is that we should rely entirely upon the code emp1oyers and employees. It should be allowed to make its own provisions under the National Industrial Recovery Act. This act contributions to the fund, if it desires to do so. Free experi­ has served a wonderful purpose in diminishing the exploitation of mentation will prove a golden blessing where experience is lack­ the young. It has drawn children from the factory and the street ing. In the process of trial and error one superior system will in unprecedented numbers. It has been the spearhead in our drive emerge that w1ll gain sway everywhere. for revival and reform. But we all know that without some encouragement from the But we cannot be certain of the future of all of the codes. Federal Government there will be no unemployment insurance There is evidence even today that some of them are not being at all. After years of successful application in Europe and after strictly obeyed. And insofar as they apply to intrastate business, decades of propaganda and education in this country, less than their enforcement is subject at least to challenge. In addition, 1 percent of our workers are protected by unemployment insur­ returning prosperity Will set in motion powerful new economic ance. Only Wisconsin has dared to defy the threat of unfair forces drawing children into industry. Without surrendering in interstate competition based upon lower standards by enacting the slightest the tremendous gains made by the codes, we must its own unemployment-insurance law. reinforce them to the utmost. We have outlawed child labor while The economic security bill sets up two inescapable incentives to combatting depression. It would be disgraceful to let it creep the Nation-wide enactment of State unemployment insurance laws. back into our national life in times of plenty. It provides a Federal subsidy of $5,000,000 for the year beginning One proposal for bolstering the code provisions against child next June and $50,000,000 for each succeeding year, practically all labor is that each State should be left free to apply its own reme­ of which is to be distributed among the States to help pay the dies. This proposal has been tried for 150 years. While a few administrative costs of such unemployment-insurance laws as they States have enacted splendidly humane laws, a majority, including may enact. Secondly, the bill imposes a 3-percent tax upon pay some of the most important industrial areas, have remained practi­ rolls, to be pa.id by employers commencing on January l, 1936. cally inactive. We have learned that in all forms of social legisla­ Any employer will be allowed to offset against this tax, up to 90 tion the threat of interstate competition based upon less progres­ percent, whatever amount he contributes to an unemployment­ sive standards hangs as a damper over the forces of enlightenment. insurance fund established by State law. Since the States wjll be The only proposal that offers hope of genuine relief is a Federal anxious to draw these taxes back into their own borders, the enact­ law covering the entire country. Indeed, this was recognized by ment of unemployment-insurance laws in every State should Congress years ago, but its two attempts to eradicate the evil of follow as a matter of course. child labor were declared unconstitutional by the supreme Court. We can hardly count the price that we have pa.id for our tardy I believe that the changes in our economic philosophy and the acceptance of the simple rule of preparedness in business opera­ more liberal composition of our judiciary today would lead to a tions. If this unemployment-insurance law had been enacted in happier result. But there is no reason for taking a risk that might 1922, the 3-percent tax upon pay rolls would have yielded between subject a great cause to another set-back and delay its final tri­ 1922 and 1933 over $10,000,000,000 for the relief of un~mployment. umph for another decade. Ce:rtainly people who believe in the The systematic fiow of this money into the hands of those without practical wisdom vf a Federal law can offer no sensible objection other sources of purchasing power would undoubtedly have checked to removing any doubt as to its constitutionality. the progress of depression and swung the business cycle more It is for these reasons that the child-labor amendment to our quickly back to the prosperity level. Federal Constitution is now before the States for ratification. The I want to state most emphatically that all of these social-insur­ amendment would empower Congress to pass a law limiting, regu­ ance plans are sound business propositions. With or without old­ lating, or prohibiting the labor of children under 18 years of age. age insurance, industry faces the task of replacing the older worker I do not question for a moment the noble and sincere motives who needs rest with the younger man who needs a job. Insurance of those who are opposed to ratification of the child-labor amend­ will make this possible without resentment and discord and with­ ment. But I cannot agree with the stand that they have taken. out a decrease of that purchasing power upon which all business In some instances they insist that such an experiment could not success depends. Old-age insurance will also help industry by re­ succeed because prohibition was a failure. If pushed to its logical lieving the active employee from the distracting fear of old age and conclusion, this argument would mean that we should never the dtificult burden of caring for others who have already passed change our Constitution because the eighteenth amendment was into later life. The maintenance and wider distribution of income unwise. But we must not forget that 19 other amendments in by old-age and unemployment-insurance benefits will be a great our- basic law have been successful. There is not the remotest factor in maintaining that stability in business operations which connection between prohibiting adults from drinking what they we all desir.e. The application of scientific methods and study to please and prohibiting the exploitation of children in industry. the economic hazards of our times will do as much to reduce these Child labor is not a personal habit; it is a public crime. hazards as workmen's compensation laws have done to reduce Next, we hear the hue and cry that children must be kept at work industrial accidents. to develop self-reliance and moral strength. Such apologies have The special attention that has been paid to business welfare in grown stale without gaining maturity. They a.re as convincing as this bill is indicated by the manner in which its taxes are im­ the claims that the depression helped the young by preventing posed. The tax for old-age insurance is scaled up gradually over them from eating too much. If mind and body and character a period of 20 years, beginning in 1937. While the unemployment­ cannot be built by transferring children from the factory to the insurance tax will ultimately be 3 percent, during the next 2 years school, then all our American ideals of education are founded upon it will become operative only to the extent of 1 percent until busi­ error. ness reaches 85 percent of the 1923-25 level, and only 2 percent If we had to make a decision, I am sure that we would prefer until it reaehes 95 percent of that level. having our children work too little rather than too much. But However, it must be emphasized that the yearning for economic the proposed amendment presents no such unfortunate alterna­ security cannot be evaluated in terms of cold logic or bloodless tives. It does not establish a fixed rule but merely leaves Congress statistics. It embraces the most fundamental of human aspira­ free to enact a law; and, in acting, Congress may exempt those tions and drives its final ,appeal to the judgment seat of conscience. industries which are not hurtful to the young. It may permit Justice does not exist when the man unemployed through no fault child labor for limited periods or during vacation seasons. It may of his own is more neglected than machinery that is idle during make allowances for various sectional differences. It may alter the the slack season. Humanitarianism is made a mockery when the entire law at will. Congress is certainly competent to pass a worker who has worn himself out in the service of industry is statute that will blend its humanitarianism with business common given less consideration than a retired race horse. The day has sense. passed when the wealthiest Nation in the world can remain the Another very important feature of the proposed amendment is most laggard in protecting the welfare of its people. that it will not enable Congress to enact a law preventing the more We must take the old people who have been disinherited by progressive States from going even beyond the Federal standards. our economic system and make them freemen in fa.ct as well as Congress will decree the minimum requirements that humanity in name. We must not let misfortune torment and twist the lives and justice require everywhere. Any State which wants to blaze of the young. We must tear down the house of misery in which a. trail even further into the future will be absolutely at liberty dwell the unemployed. We must remain aware that business sta­ to do so. bility is the foundation for all our efforts. Industry and wealth, The fear is expressed that a Federal child-labor law woUld lnvade intelligence and inspiring leadership, are all ours. If we utilize the liberty of action of the family. Sincere people have made the our opportunities, we need fall short in nothing. same mistake of judgment in regard to other proposals for social betterment. There was a time when some regarded the regulation of minimum wages as a menace to liberty. There was a time when SENATOR WAGNER DISCUSSES CHILD-LABOR LEGISLATION the closing down of a sweatshop was branded as the death knell of We are now being carried forward by a great wave of public re­ freedom. But these things have been accomplished and have won sentment against the economic and social evils that have fiourished the applause even of those who doubted their worth. Those who in the past. While the misery produced by these evils is still fresh now believe that the child-labor amendment is the swan song of upon our memories, we want to do everything in our power to family self-rule will come to hail it as a liberator of family life. banish them forever from the American scene. What could do more to break up and destroy the family than Premature and excessive child labor is a drain upon our Nation's industrial conditions which draw children out of the home and wealth and a stain upon our Nation's honor. It is economically into the factory? What could do more to preserve family life than vicious because it cripples the bodies and dwarfs the minds of the keeping children within the home? The so-called "right of par­ rising generation. It is morally indefensible because it violates ents to see their children work " is not really a right at all. It ta every humanitarian dictate and makes the wealthiest Nation in the a wrong for which they are not responsible. It 1s a curse of world an outcast among progressive states. poverty from which they beg to be delivered. When people who want to put a stop to industrial traffic in the The withdrawal of children from the la.bor mar.ket would raise ruined lives o! youth gather together. there is little disagreement the standards of family income by removing the downward pres- 1786 CONGRESSIONAL RECORD-SENATE FEBRUARY 11 sure upon wage raites. We should soon discover that fam111es can SUPPRESSION OF CRIME-ARTICLE BY SENATOR REYNOLDS earn just as much and live far more happily without placing their children in servitude. Mr. RUSSELL. Mr. President, I ask unanimous consent Finally, it is stated that a Federal child-labor law would inter­ to have printed in the RECORD an article by the Senator from fere with education in the home and in the school. Dismal pic­ North Carolina [Mr. REYNOLDS], appearing in the Master tures have been painted of Government agents spying and prying into the domestic scene and the classroom. No one could be more Detective for February 1935, entitled "Demand It!" violently opposed than I to Federal control over the education of There being no objection, the article was ordered to be the young. No one could be less willing to disturb the sacred printed in the RECORD, as follows: integrity of home life. But there is not the slightest ground for believing that the regulation of child labor would produce these DEMAND IT! results. (By United States Senator ROBERT R. REYNOLDS, of North Carolina.) The best test is experience. At the present time every State in · Thoughtful citizens everywhere are showing an a.roused interest the Union has the power to enact for those within its borders such in our crime problem. It is one of the most hopeful signs that a child-labor law as Congress is authorized to frame under the has appeared on the American horizon for many a day. It indi­ new amendment. Some have already done so. Has any State ever cates that a new era in the suppression of crime and the prosecu­ confused the regulation of working conditions with education? tion of those who fiout our laws is at hand. Such an era bas Has anyone ever been afraid that some States might do so? What been too long delayed. reason has anyone for supposing that Congress would act more The developments of the last 20 years were not designed to help foollshly than the least enlightened of 48 States? Are we advanc­ the situation. Our prisons have been crowded with thousands ing the cause of freedom in education when we keep .children at who were more misguided than criminal. Many of these com­ worlt where they can receive no education at all? mitted crimes that were, in fact, only minor otfenses against so­ President Roosevelt has endorsed the child-labor amendment. ciety, but -nevertheless serious offenses under laws drafte~ by Twenty States have ratified it. This year will a.tiord opportunity fanatical minorities. And while these misguided persons-many for the necessary 16 more to fall into line. I earnestly hope and of whom would have readily responded to the opportunity to be­ trust that my own State of New York will be among them. No come honorable and useful citizens-were supported tn prisons at accomplishment could be more gratifying than the literal emanci­ public expense, others who day in and day out sucked the blood pation of countless thousands ~f the children of America. of society like leeches, walked the streets and enjoyed freedom. FREEZING THE DEPRESSION-EDITORIAL FROM WASHINGTON The result was an intolerable condition. Citizens who saw what HERALD was happening lost interest. Instead of demanding a new order, they made no outcry. This in turn enabled crooked politicians Mr. ROBINSON. Mr. President, I ask unanimous consent to work hand in h&nd with organized criminals, wl10 waxed rich, to have printed in the CONGRESSIONAL RECORD an editorial and made no e:ffort to conceal their contempt for our laws and for society in general. · entitled "Freezing the Depression", which appeared in the But the huge sums acquired by organized criminals, largely Washington Herald of today, Monday, February 11, 1935. from the liquor tratnc, have been shut off. This means that crimi­ There being no objection, the article was ordered to be nals must pursue their profession more actively in other fields of printed in the RECORD, as follows: crime. It means that they must follow their lawless activities in a less organized fashion. And it also means that with less funds [From the Washington Herald of Feb. 11, 1935) they will be less successful in obtaining the aid of unscrupulous FREEZING THE DEPRESSION politicians and in turn, immunity from the guardians of the law The Senate Appropriations Committee seems determined to ex­ and the courts. Consequently, the large-scale criminal organiza­ tract the sound economic safeguards from the President's tions are breaking down, and now 1s the time to help this good $4,880,000,000 work-relief plan. work along through every possible means. The pork-barrel philosophy of the majority on the committee Encouraged by this trend in crime, and also by the successful was exposed in its vote in favor of an amendment requiring the apprehension of major criminals who were and stm are in the payment of preva111ng wages, instead of the suggested security headlines of the dally newspapers, our people, as I have said, are wage of $50 a month, on all projects in the new reemployment showing a greater interest in the suppression of oUl' criminal program. . element. But the prospect for immediate improvement in the Sounding innocuous enough, this change would tend to freeze etficiency of our agencies dealing with crtininals is not altogether the existing unemployment, and pen>etuate the maladjustments encouraging. One of the greatest handicaps to the much-needed which are keeping nearly 10,000,000 persons out of normal improvement is politics. Another is the inabllity and also un­ employment. willingness of our citizens to shoulder the cost of attaining the needed imp-rovement in efficiency. St111 another is the local re­ It is a subtle attempt to retain a standing army of recipients at strictions on the agencies of law resulting from the set-up of public benefits. our Government. It is to be hoped that these handicaps may be If adopted by Congress, this amendment would vitiate sound removed. The process is slow, but nothing is impossible, when efforts to eliminate economic disparities and ineqUities. It runs attempted by an aroused citizenry working in a common cause. directly counter to economically sound moves to restore a normal There is no reason to fear that too much of the apathy toward balanced economic life, under which the unemployed could once criminals in general may be laid, and rightfully so, at the doors again become self-supporting. of our public officials and our legislators-National, State, and The proposed amendment would make public made work com­ local. They have unhesitatingly provided funds for magnificent petitive with normal employment and would render difficult, it prisons with modern equipment, even to gymnasiums and recrea­ not impossible, the demobilization of the depression army of the tion rooms. In the same sessions they declined to allow funds for unemployed. · studies directed toward crime prevention, in which might be It would thwart sensible efforts to foster industry, commerce, advantageously included the work of the police. Crime preven­ and agriculture so that they could expand normal employment tion must necessarily rest on a background of knowledge as to and thus relieve government of the credit-destroying obligations what causes crime and where it originates and develops. entailed in carrying economic casualties on public pay rolls. Fortunately our country today has a precedent for sound To his erect.it, President Roosevelt formulated a plan to empha­ studies of crime and law enforcement, free from the shackles of size the temporary, relief character of public jobs, which could be politics and, in turn, of graft and inefficiency. This agency is tapered off as rapidly as healthy expansion of ordinary business the Bureau of Investigation of the United States Department of took place. Justice, under the direction of J. Edgar Hoover. Its achieve­ In his message to Congress, Mr. Roosevelt specifically said: ments, including the wiping out of such notorious menaces as "Compensation on emergency public projects should be in the John Dillinger and Charles "Pretty Boy" Floyd, are well enough form of security payments which should be larger than the amount known to need no further review here. now received as a. relief dole but at the same time not so large The high efficiency of this Federal organization is a shining as to encourage the rejection of opportunities for private employ­ example of what may be accomplished through freedom of action ment or the leaving of private employment to engage in govern­ under intelligent direction. mental work." The Department is mentioned here simply in the hope that the In rejecting this intelligent recommendation the Appropriations several States and thousands of municipalities will profit by ex­ Committee has converted a sound proposition into a pork-barrel perience and bring their own agencies of law enforcement to the abuse. high stand necessary for the protection of society. United States In effect, the amendment would tax industry to give the Gov­ Attorney General Homer S. Cummings, in a recent speech, stressed ernment the funds with which to divert men from normal em­ the importance of permitting all law-enforcement agencies to have, ployment. as in the case of the Department of Justice's Bureau of Investi­ It would in effect make the depression chronic and would re­ gation, absolute freedom from political interference. Th~re is no move incentive of men to get off relief rolls and back to business doubt whatsoever that this is the only way to attain efficiency. pay rolls. That such a system of absolute divorcement of a loyal law en­ By thus making budgetary deficits permanent, instead of tem­ forcement agency from the hampering hand of political inter­ porary, it would continue to increase the national debt and in ference will go far toward reducing crime in any given locality has time destroy the national credit. already been amply demonstrated in Milwaukee, where the police Enlightened popular opinion should censure the Appropriations department acts independently of any governing forces. Mil­ Committee for its folly. waukee's great record 1n reducing crime beat.a every city in the I The Senate should emphatically reject this recommendation of United States. its committee. Lack of badly needed high standards today is not the result af I President Roosevelt should stick by bis guns. any deterioration in the courts, police departments, and penal 1935 CONGRESSIONAL RECORD-SENATE 1787. institutions, but rather the inability of these various institutions Carter, California; Charles A. Eaton, New Jersey; Ralph E. Church, to keep abreast of changing conditions. In many places the police Illinois; William W. Blackney, Michigan; Fred A. Crawford, Michi­ are showing much promise. Few other branches of criminal jus­ gan; Fritz Lanham, Texas; Charles F. McLaughlin, Nebraska; and. tice are in the hands of men with a greater degree of enthusiasm Arthur Deerin Call. for their work. The minutes of the last annual meeting having appeared in th.e One of the immediate things our people can do in the war on crime CONGRESSIONAL RECORD, Friday, January 18, 1935, it was voted upon is to place at the head of our police departments men of experi­ the motion of Mr. CARTER seconded by Mr. EATON, that the min· ence, men who have come up from the ran.ks. Offer to these men utes be approved without reading. and those under them a salary sufficient to attract honest men STATEMENT BY EXECUTIVE SECRETARY to a field with a future. Remove from them the menacing shadow of political influence. This, more than anything else, will provide The permanent executive secretary called attention to certain the material for a new and thrilling chapter in the history of rules and re~ulations of the Interparliamentary Union, under the law enforcement. terms of which it is the duty of the United States Group to keep And if the modernization of your local police department means the Congress informed, through its committee or through one of the expenditure of still more money, then db not flinch in the its members, of resolutions adopted at the conferences which call spending of that money. Much of the necessary extra money for parliamentary or governmental action. could readily be obtained in most cases by demanding that appro­ Again, the Interparliamentary Union expects its members to do priations now being assigned to less worthy causes be immediately their utmost to see that the work of the Union is made known in transferred to your law-enforcement agencies. their respective countries, in order to obtain as large a measure of Tell that to the legislators who represent you. Tell them firmly support as possible. The members of all groups are invited to and often. They'll listen to you when they come to realize that assist to the best of their ability in the maintenance of peace their own political futures hang in the balance. And, above all, among the nations. strive to have your police department removed from the outside In article 17 of the Regulations for Conferences it is provided. infiuences which today strangle it, reducing its effectiveness and that" at the close of each conference the President shall enumerate squandering the money you already have put into it. That should the principal resolutions adopted which it will be the duty of the be your first demand. groups to present to their respective governments and parliaments To accomplish all of these desired results there necessarily will (statutes, art. 5) in the shape of bills, motions, questions, or under· have to be drastic changes in our entire social organization. any other form suitable to the circumstances." Demand those changes! We are notified from Geneva that-- And do not be fooled by sporadic, spectacular attacks on crime .. In view of the importance of promoting the work in favor of of which you read from time to time in your local newspapers. peace and international cooperation pursued by the Interparlia· Nine times out of ten these much-vaunted drives represent the mentary Union by putting into execution the resolutions passed by most insidious type of political propaganda. its conferences; . Often, if you will recall your dates accurately, they are nothing "In view of the fact that it lies with the national groups of the more than election eve blarings of the trumpet by an adminis­ Union to secure the application of those resolutions in the political tration which uses your police department as an argument for life and in the legislation of their respective countries as also in remaining in office. international life; ' Much-vaunted vice clean-ups, whereby our local jails, to the "In view of the fact that, if positive results are to be obtained screaming accompaniment of patrol-wagon sirens, are filled with in this respect through the action of the groups, it is indispensable shabby street walkers for the edification of the voting citizen who that those groups, as autonomous members of the Union should exercise a permanent and continuous influence with!~ their is going ~ the polls as socn as he finishes reading of the police round-up m his morning paper, are beginning to lose their effec­ respective parliaments." tiveness with thin.king citizens. As set forth at the Twenty-seventh Interparliamentary Confer· Remove the brass band machinations of politics and its con­ ence at Bucharest, the following measures are recommended to the trol11ng hand, and you will find your city freer of vice and crime national groups: than it has ever been. Your police department wants to work· " 1. That two regular group meetings at least should be called wants to suppress vice and the more serious crimes of violence and in the course of the year, one of which should discuss the action to be taken in connection with the resolutions passed by confer· plun~er. It wants to ~ke, freed of political orders, a sustained, effective drive against crrme. It deserves a free hand in enforcing ences. (See art. 17 of the Regulations for Conferences.) the laws, and the equipment with which to put down crime. It "2. That detailed information should be given in the annual expects you to help it in its needs for that right to serve you. reports of the groups (statutes, art. 3) as to the steps taken in connection with the resolutions of preceding conferences and It is up to you, you men and women of voting age, who even especially as to the motives which may have led a group to r~frain now are reading these words. As taxpayers, every one of you is from action with regard to any particular resolution. helping to foot the bill represented by police departments in this " 3. That debates on questions placed on the agenda of the country. Are you getting your money's worth? Think it over. Union should be instituted within the groups. Such debates And if you decide that you are not, then speak up. You are might b.e opened by national or foreign experts, parliamentary or entitled to receive value for money expended. nonparllamentary, invited by the groups." Demand it! ".'J'ith .regard to res~lutions of Gonferences recommending the ANNUAL MEETING UNITED STATES GROUP OF INTERPARLIAMENTARY ratification of international conventions, the Conference asks our UNION group "to see that the steps taken with the Government with a view to ratification should be renewed until the group has Mr. CONNALLY. Mr. President, I submit for printing in achieved its ends." the RECORD the minutes of the Thirty-second Annual Meet­ RESOLUTIONS OF THE THmTIETH CONFERENCE ing of our American Group of the Interparliamentary Union. The resolution of the Istanbul Conference were summarized by It now appears that the Thirty-first Conference of the In­ your executive secretary in his statement printed in the CONGRES­ SIONAL RECORD of January 18, 1935, page 690. It remains for our terparliamentary Union will be held in the city of Brussels, group to take action in accordance with article 5 of the statutes Belgium, July 26-31 next. of the l!nion, ~hich lays upon each group the duty of " keeping Certain items relative to the support of the Interparlia­ its parliament informed, through its committee or through one of its members, of resolutions adopted at the conference which mentary Union are now up for the consideration of the call for parliamentary or governmental action.'' Congress. No group is asked to act in support of a resolution, which has Every Senator and Representative in the Congress of the not been favorably received by a majority of its members. The resolutions adopted at Istanbul were passed unanimously by the United States of America is ipso facto a member of the delegates present, excepting those on security and the reduction of United States Group of the Interparliamentary Union. armaments. The Thirty-second Annual Meeting of the United States of It is readily apparent from a reading of the resolutions that the Interparliamentary Union has the single aim of prom~ting the America Group was held in the committee room of the House soli~arity of ~11 states through the maintenance of peace through Committee on Foreign Affairs on Monday, January 21, 1935. justice. In his book, Le Droit Constitutionnel et l'Organisation de I offer, therefore, and ask that there be printed in the la Paix, Professor Mirkine-Guetzevitch points out that it was the Union which first had the honor of launching the principle of RECORD, the minutes of that meeting. the "harmonization of national legislations with the new prin­ There being no objection, the minutes were ordered to be ciples of international law." printed in the RECORD, as follows: The resolution adopted at Istanbul advising the adoption of a universal system of security, providing for a consultative body with THIRTY-SECOND ANNUAL MEETING OF THE UNITED STATES OF AMERICA power to express its opinion on any violation of the prohibition GROUP OF THE INTERPARLIAMENTARY UNION-MlNuTEs OF THE of recourse to force and to define the aggressor state, and for the MEETING application of sanctions of force, was not approved by the Ameri­ The Thirty-second Annual Meeting of the United States of can delegates. America. Group of the Interparliamentary Union was held in the After having defined the contents of a universal pact of security, committee room of the House Committee on Foreign A1fairs, Mon­ the Istanbul resolution recommends the signature of continental day, January 21, 1935, at 10 :30 a. m., Representative Sam D. pacts (such as the European draft security pact, or the Saavedra McReynolds, vice president of the group, presiding. The following Lamas Treaty, signed in Rio de Janeiro in 1933 by several American persons were present: Representatives Sam D. McReynolds, Tennes­ states), culmin~ting in a system of regional treaties, which may see; Caroline O'Day, New York; Sol Bloom, New York; Albert E. be either multilateral or bilateral. These treaties must be in 1788 CONGRESSIONAL RECORD-SENATE FEBRUARY 11 accordance with the rules of existing regional pacts, such as the (6) Public-utility services (gas, water, electricity, etc.). Paris pact, and must not be directed against any power or group (7) Textile industry. of powers. ( 8) Glass works. From Geneva our attention ls also called to the fact that at (9) Mines. the present time diplomats appear to prefer regional treaties. It A definite list of industries, establishments, or categories to may be recalled in this connection that a Balkan pact has already which it will be proposed that the next Conference apply t he re­ been concluded, and that efforts are being made to draw up an duction of hours of work, will therefore be drawn up by the eastern pact of nonaggression. governing body of the International Labor Office in January 1935. We of America may have occasion to study the drafts of other But the Conference will remain free to apply or not the model regional pacts, which may be drawn up within the next few convention adopted for the proposed industries and, above all, to months, and profitably to consult the Ist anbul resolution, which examine them or not according to t he emergency procedure. 1s the fruit of several years of thorough study. If the emergency procedure is not adopted this will presuppose The Istanbul Conference made a point of declaring the faith a second attempt the following year. of the Union in the cause of the reduction of armaments, despite Under these circumst ances it is suggested from Geneva that the repeated failures of the Disarmament Conference and the the national groups might consider the possibility of requesting general pessimism. To this declaration it also added the list of their respective governments to give their delegates to the nine­ measures which the Union has long advised and which are known teenth session of the International Labor Conference the necessary to all its members. instructiorur- For the first time the Union was called upon in Istanbul to ( 1) To vote the draft convention embodying the principle of a deal with social questions. reduction of hours of work. The recommendations conclude by a definite request to our (2) To vote in favor of the application at the International national groups " to take the necessary steps with their respec­ Labor Conference of June 1935 of the reduction of hours of work tive governments in order that the government delegates to the to industries which will be proposed by the governing body on next International Labor Conference may receive the necessary January 31, 1935. instructions to make the adoption of the proposed regulations (3) To apply to these industries the emergency procedure and possible." single discussion. Of what will the proposed regulations consist? The resolution at Istanbul relative to unemployment among In order to answer this question it is necessary to fit the prob- young people and to some remedies is drawn up in the same spirit lem in its present surroundings. · as the preceding one. Several broad principles of a humanitarian At the end of September last, the governing body of the Inter­ character are set up, followed by suggestions of a political nature; national Labor Office adopted by 22 votes to 7 the following resolu­ and the value of international institutions for mutual aid, in this tion presented by the Government delegates of France, Belgium, case the International Labor Organization, is upheld. Czechoslovakia, Spain, Poland, Italy, the Argentine, Mexico, and "The thirtieth Conference", says this resolution," notes with the Brazil. The language follows: greatest satisfaction that the problem of the unemployment of " The governing body decides: young people has been placed on the agenda of the next session of " ( 1) To place the reduction of hours of work on the agenda of the International Labor Conference, and invites the national the nineteenth session of the Conference. groups of the Union to support the efforts of the said Conference "(2) To instruct the office to draw up a draft for a single con­ in that field." vention providing for the reduction of hours of work in all classes In this connection it should be recalled that the procedure which of establishments. The Conference shall determine at that session will be in use for the discussion of this problem at the next Labor and at subsequent sessions the classes of estabishment to which Conference will enable that Conference to accomplish its work in this reduction shall apply and the method of application for each one session. The report to be subm.1tted to the delegates is, in its of them. general outline, in agreement with the Istanbul resolution. It is "(3) To reserve until the next session of the governing body­ felt that this national group of the Union could therefore easily which will have before it reports to be prepared by the office, request the Government to give its delegates to the next Labor including the information received in the meantime from the gov­ Conference instructions which would be conducive to positive ernments---the final selection of the industries, establishments, or action in the fight against the scourge of unemployment among categories to which it is proposed that the nineteenth session of young people. the Conference should apply the reduction of hours of work." The resolution relating to the evolution of the representative If, therefore, the nineteenth session of the International Labor system and technical problems is worth consideration for several Conference, which is to assemble in Geneva on June 4, 1935, fol­ reasons. lows the suggestions which are laid before it by the governing body, In the first place, it fixes in its preamble the method which the it wlll examine and adopt a single draft convention providing for union should adopt in the study of the representative system. the reduction of hours of work in economic activities as a whole. This method, if adopted, would open up sources of useful knowl­ Further, it will decide at the same session upon certain activities edge to all members of the Union, especially of the evolution of to which this reduction will first be applied, together with the political institutions in the different countries, and ought to result , methods of application in each case. in courteous exchanges of opinion. Thus the members of the Further sessions of the Conference will progressively decide upon Union are asked to give their experiences in regard to their respec­ the other industries. · tive parliaments without criticiZing the systems 1n use abroad. Finally, the governing body, in its sitting this month (January The Union can in this way remain faithful to its wise policy of 1935) will definitely decide upon the industries to which it pro­ respect for the convictions of all its members in a sphere which is poses immediately to apply the reduction of hours of work. particularly delicate. · The suggestions already made by the International Labor Office-­ The resolution then gives several suggestions in respect of the to which the United States now belongs---in this respect concern: passing of the budget. remedies for the imperfections of parlia­ 1. Public works undertaken by the governments or subsidized by mentary procedure, governmental stability, the separation of the them. The application of a system of reduction of hours of work political and judicial powers; finally, the independence of parlia­ in work of this description can be reached merely by a decision ments. These suggestions give an echo of discussions which have of the governments, since the latter decide themselves upon the taken place in all countries on current problems, which are Gome­ conditions under which their own public works are undertaken, times of burning interest. They prove that in many parliaments and they are also in a position to fix the terms which they see fit almost similar solutions have been considered-a sure proof that at the time they grant the subsidies. It must be pointed out that the ms from which the representative system is sutt'ering are in this sphere there is no question of international competition. wide-spread, and that international consultations on the matter, 2. Iron and steel industry: We have here an industry which pro­ as offered by the Interparliamentary Union, should be nothing but duces raw materials for which there is no fear of competition from profitable. Our group will, therefore, find in the resolution industries manufacturing substitutes. It employs many workmen, adopted at Istanbul a valuable contribution to the study of the and therefore a reduction of hours of work would allow of an appre­ ciable number of workmen being taken on again. evolution of political institutions. 3. Building and civil engineering: This has the double advan­ It is announced from the bureau of the union that a perma­ tage of not being subjected to foreign competition and of occu­ nent subcommittee will shortly begin the study, not merely of pying a large number of workmen. In several countries the work­ questions of a technical nature, but also of larger problems of ing week is less than 48 hours. political organization which are confronting our civilization. 4. The bottle-glass industry, which perhaps occupies a relatively The Interparliamentary Bureau, it is also announced, wm shortly small number of wage earners, but which has engaged the atten­ have occasion to point out to the groups the value of the resolu­ tion of glass experts with a view to the adoption of an interna­ tions which have been adopted by the union since 1911, 1n which tional draft convention. a striklng picture of the future is sometimes to be found. M. Jouhaux, on behalf of the Workers' Group, has requested that For the time being we are requested to take all necessary steps during the same session of the governing body, the International toward making known the resolutions of the Istanbul Conference. Labor Offl.ce prepare reports on the legislation and on the current Attention was called to the fact that the perm.anent executive practice in the question of hours of work in the following indus­ secretary had received a receipt from the secretary general of the tries, to which, in his opinion, a reduction of working hours might Union for $7,500 which, because of the depreciation of the dollar, suitably be applied: represents a depreciation of approximately 15,000 Swiss francs, (1) Continuous process industries. something over $18 in the net value of the grant of the United (2) State or private armaments and war munitions industries, States to the Interparliamentary Union for the year 193~5. The and shipbuilding yards. executive secretary called attention to a statement by President (3) Chemical products. Montague upon this point, reading as follows: (4) Transport. " I have learned that our contribution to the Bureau of the ( 5) Building industry and public works. Interparliamentary Union last·year of $7,500 would have been nor- 1935 CONGRESSIONAL RECORD-SENATE 1789 mally 38,500 Swiss francs; but because of the drop of tbe dollar the tural Marketing Act, and to amend the Farm Credit Act ot' Bureau was only able to realize 24,750 Swiss "francs, '8. reduction of 19~3, and for other purposes. about 37 percent. For the coming year the following drop in the dollar will mean that our appropriation to the Bureau will drop The VICE PRESIDENT. The question is on the motion of from 38,500 to 23,000 francs, a. loss to the bureau of 15,000 Swiss the Senator from Arkansas [Mr. ROBINSON] to reconsider francs.'' tbe vote by which the amendment of the Senator from Mon­ Under date of November 24, 1934, the executive secretary wrote to Dr. Boissier, secretary general of the Union, .saying: "I see no tana [Mr. WHEELER] was agreed to. way by which we can make up the loss to the Bureau due to the Mr. ROBINSON. Mr. President, I ask the attention of depreciation of the dollar, except possibly by .getting the appropri­ Senators while briefly discussing the amendment of the Sen­ ation for next year increased." To this statement Dr. Boissier re­ ator from Montana [Mr. WHEELERJ. plied that it seemed to him" an excellent suggestion." The members were reminded that President Montague had urged When the Federal land-bank system was created, the the Congress to appropriate $10,000 to the Bureau of the Inter­ Treasury was required to subscribe to the stock under an parliamentary Union at Geneva, and that he had ruso urged that an arrangement by which the stock of the various Federal land authorization act be passed by the Congress authorizing an ap­ propriation not to exceed $20,000 per 2.Illlum, $10,000 of which banks woul-d be taken over by borrowers. Eaeh borrower was should be for the contribution of the United States to the main­ required to take in stock 5 percent of the amount of his loan. tenance of the Bureau at Geneva and $10,000, or so much thereof Early in 1932 when additional legislation became necessary, as may be necessary, to assist in meeting the expenses of the United almost the entire stock of the Federal land banks had been States of America group of the Interparllamentary Union. It ap­ peared to be the opinion of .all the members present that both acquired by borrowers. The Federal Government had been these suggestions by President Montague should be approved by reimbursed for its subscription to the stock save in a total the Congress. amount of something like $94,000, as I now remember. It REPORT OF THE TREASURER is not practicable to attempt from memory to state the exact Treasurer BLOOM submitted the following report: figures. 1934 In 1932, at the beginning of the year, the entire -credit Jan. 19. Balance on hand------$408. 23 system of the country had broken down. Not only had the Disbursements Federal land banks almost ceased to make loans but private Jan. 24. Secretarial service ______50.00 institutions and individuals throughout the Nation had dis­ Feb. 24. Secretarial service------50.00 continued lending to farmers. · A large number of loans made Mar. 24. Secretarial service______50.00 Apr. 24. Secretarial service______50.00 by the Federal land bank, as also loans by corporations and May 24. Secretarial service ______50.00 individuals, were in default, and the situatlon was truly de­ 1935 pr-essing and discouraging. Jan. 12. Judd & Detweiler, printers ______16.80 13.33 About January 1932 the Congress authorized, in the nature Jan. 12. Western Union Telegraph Co------of additional capital, $125,000,000 for the Federal land banks. Jan. 12. · Total disbursements______280. 13 Within a short time this proved to be inadequate. All loans made through private agencies or through agencies other Jan. 21. Balance on hand______128. 10 than Federal land banks which were in default were pre­ It was voted that the report be accepted and filed. sented to the land banks. Under the conditions which pre­ ELECTION -OF

FARM CREDIT ACT OF 1935 his motion. I think he stated the reasons very fairly and The Senate resumed the consideration of the bill ys sev­ eral hundred men. Yet it 1s a struggling industry, due to the The PRESIDENT pro tempore. Without objection, it is underselling foreign product. so ordered. That completes the calendar. What is to be done about it? . Shall wages and log prices be cut so that Minnesota matches can meet the foreign prices? The in­ ADJOURNMENT dustry 1s not worth saving on those terms. Shall Minnesota stop Mr. ROBINSON. As in legislative session, I move that trying to make matches, and let the foreigner have the market? Isn't there a better course yet, to increase tariff duties so as to the Senate adjourn until 12 o'clock noon tomorrow. equalize the labor costs, and keep the home industry going? . That The motion was agreed to; and

INDIANA THE JOURNAL Joseph F. Winkler, Hammond. The Chief Clerk proceeded to read the Journal of the pro­ KANSAS ceedings of the calendar day Monday, February 11, 1935, Emma C. Jehlik, Cuba. when, on request of Mr. ROBINSON, and by unanimous con­ Horace E. Elder, Goodland. sent, the further reading was dispensed with, and the Jour­ Walter R. Dysart, Parker. nal was approved. Emmett E. Conzelman, Republic. MESSAGES FROM THE PRESIDENT Irma J. Collopy, Turon. Messages in writing from the President of the United MISSISSIPPI States were communicated to the Senate by Mr. Latta, one of Harry H. Orr, Holly Springs. his secretaries. David E. Nabors, Indianola. CALL OF THE ROLL Tom W. Crigler, Jr., Macon. Mr. ROBINSON. I suggest the absence of a quorum. Blanche M. Gallaspy, Pelahatchee. The VICE PRESIDENT. The clerk will call the roll. Thomas R. Pearson, Picayune. The legislative clerk called the roll, and the following NORTH DAKOTA Senators answered to their names: Adams Connally Keyes Pittman Mary M. Hoesley, Crystal Ashurst Coolidge King Pope Albert E. Funk, Hebron. Austin Copeland La Follette Radcliffe Bachman Costigan Logan Reynolds Anna F. Jones, Verona. Balley Couzens Lonergan Robinson PENNSYLVANIA Bankhead Cutting Long Russell Barbour Dieterich McAdoo Schall Lela E. Randolph, Portland. Barkley Donahey McCarran Schwellenbach Bilbo Duffy McGill Sheppard SOUTH DAKOTA Black Fletcher McKellar Shipstead Fayette A. Nutter, Alcester. Bone Frazier McNary Smith Borah George Maloney Steiwer Arthur P. Ingle, Harrold. Brown Gerry Metcalf Thomas, Okla. Carl Hildebrandt, Mobridge. Bulkley Gibson Minton Thomas, Utah Thomas W. Lalley, Montrose. Bulow Glass Moore Townsend Burke Gore Murphy Trammell William F. Curren, Vienna. Byrd Guffey Murray Truman TENNESSEE Byrnes Hale Neely Tydings Capper Harrison Norbeck Vandenberg Edward L. Smith, Englewood. Caraway Hat ch Norris Van Nuys Carey E. Reed, Prospect Station. Carey Hayden Nye Walsh Clark Johnson O'Mahoney Wheeler TEXAS Mr. ROBINSON. I wish to announce that the junior Jenna Mae Easter, Anton. Senator from Louisiana [Mr. OVERTON] is detained from the M. Earle Cook, Carrizo Springs. Senate by illness, and ,that the senior Senator from Illinois Gilbert G. Holman, Gainesville. rMr. LEWIS] and the junior Senator from New York [Mr. Carolyn A. Moreman, Hale Center. WAGNER] are unavoidably absent. _ Hany H. Mann, Levelland. Mr. AUSTIN. I desire to announce that the Senator from Benjamin B. Ward, Newcastle. Iowa [Mr. DICKINSON], the Senator from Maine [Mr. John C. Terry, Plainview. WmTE], the Senator from Pennsylvania [Mr. DAVIS], and Cleo Jackson, Point. the Senator from Delaware [l.V"rr. HASTINGS] are necessarily Sidney T. Bogan, Quitaque. absent from the Senate. Ina M. Matheny; Rochester. The VICE PRESIDENT. Eighty-eight Senators have an­ Daniel J. Quill, San Antonio. swered to their names. A quorum is present. Milner T. Cain, Seagraves. VERMONT ANNIVERSARY OF BIRTH OF ABRAHAM LINCOLN Michael C. Mulcahy, Brandon. Mr. COPELAND. Mr. President, this is Lincoln's birthday, Alvarado C. Gibson, Cavendish. and, as my contribution t o the day, I ask that an article Irma K. Mitchell, Fairfax. concerning Lincoln by Emanuel Hertz be inserted in the Berne B. Titus, Fairlee; RECORD. Helen M. Boyle, Gilman. There being no objection, the article was ordered to be Oscar N. Campbell, Hyde Park. printed in the RECORD, as follows: John M. Jewell, Proctorsville. [From the New York Times Magazine, Feb. 10, 1935] Adelbert G. Dudley, Shoreham. WHEN TH E EAST RALLIED DEHIND LINCOLN-THIS MONTH MARKS THE Irene F. Smith, Waitsfield. SEVENTY-FIFI'H ANNIVERSARY OF HIS SPEECH AT COOPER UNION By Emanuel Hertz On his fifty-first birthday, 75 years ago next Tuesday, Abraham SENATE Lincoln, of Illinois, former Congressman, unsuccessful candidate for Senator, possible Republican nominee for the Presidency, was TUESDAY, FEBRUARY 12, 1935 putting what he thought were the finishing touches on what bas since been known as h is Cooper Union speech. The Chaplain, Rev. Z~Barney T. Phillips, D. D., offered the Lincoln did not then know that before he was to be well following prayer: launched upon his carefully prepared address he would discard his notes and pour forth, in words that came to him almost like God of our fathers, whose loving, timeless care hath woven an inspiration, one of the greatest speeches of his life, or of his from innumerable strands the finer fabric of our Nation's generation. He did not know that instead of appearing in life: accept our grateful thanks for this our priceless heri­ Beecher's church in Brooklyn, where the religious atmosphere would somewh at tone down a purely political utterance, he was tage, and help us to be worthy, as we share the burden of to address, in a public h all, one of the most distinguished audi­ our corporate responsibility, to carry on the work which ences New York City had ever seen. Thou hast wrought through all Thy servants who, in their He was not even sure of how he would be received. The time several generations, have served Thy people faithfully. Bind was one of ha.rsh judgments, as it was of an almost desperate us ever closer with the bonds of a holy purpose, that we may search for leadership. Passions ran high, the air was full of threats and forebodings. John Brown had been 15 months in be a united people; give us the greater courage to be kind his grave, but John Brown's wild-eyed brethren still walked the 1·ather than arrogant, the greater strength to be merciful earth. At the other extreme were the fanatical proslavery lead­ rather than vindictive, and the spirit of self-sacrtfice nobler ers, ready to disrupt the Union if necessary in order to set up a slave owners' autocracy. than self-assertion, that we may rather serve with Christ, Peace-loving men who hatecl slo.very were turning everywhere for who is our light, than conquer with the powers of darkness. some middle way which would save the Union, yet which would . We ask it in our Savior's name. Amen. prevent the spread of the slave system. Because emotions were