Congressional R"Rcord-Senate __
1706 _CONGRESSIONAL R"RCORD-SENATE__ FEBRUARY 8
962. Also, petition of the Central Labor Union, Columbia, CLAIMS OF OFFICERS AND EMPLOYEES OF THE FOREIGN SERVICE Pa.; to the Committee on the Judiciary. The VICE PRESIDENT laid before the Senate the follow 963. Also, petition of the Knights of Civilization, San ing message from the President of the United States, which Francisco, Calif.; to the Committee on Ways and Means. was read, and, with the accompanying papers, referred to the Committee on Foreign Relations: SENATE To the Congress of the United States: I enclose herewith a report which the Secretary of State FRIDAY, FEBRUARY 8, 1935 has addressed to me in regard to claims of certain officers (Legislative day of Thursday, Feb. 7, 1935) and employees of the Foreign Service of the United States for reimbursement of losses sustained by them by reason of . The Senate met at 12 o'clock meridian, on the expiration catastrophes, war, and other causes during or incident to of the recess. their service in foreign countries. MILLARD E. TYDINGS, a Senator from the State of Mary I recommend that an appropriation in the amount sug .. land, and ERNEST W. GmsoN, a Senator from the State of gested by the Secretary of State be authorized in order to Vermont, appeared in their seats today. relieve these officers and employees of the Government of THE JOURNAL the burden these losses have occasioned. On request of Mr. ROBINSON, and by unanimous consent, FRANKLIN D. ROOSEVELT. the reading of the Journal of the proceedings of the calendar THE WmTE HousE, February 8, 1935. day Thursday, February 7, 1935, was dispensed with, and the (Enclosures: Report of the Secretary of State, with en Journal was approved. closures.) MESSAGES FROM THE PRESIDENT DISPOSITION OF USELESS PAPERS Messages in writing from the President of the United The VICE PRESIDENT laid before the Senate a letter States were communicated to the Senate by Mr. Latta, one from the Secretary of War, transmitting, pursuant to law, of his secretaries. - a list of documents and papers on the files of the War De partment which are not needed in the conduct of business CALL OF THE ROLL and have no permanent value or historical int.erest, and Mr. LEWIS. I suggest the absence of a quorum, and ask asking for action looking to their disposition. which, with for a roll call. the accompanying papers, was referred to a Joint Select The VICE PRESIDENT. The clerk will call the roll. Committee on the Disposition of Useless Papers in the The legislative clerk called the roll, and the following Sen Executive Departments. ators answered to their names: The VICE PRESIDENT appointed Mr. SHEPPARD and Mr. Adams Coolidge La Follette Robinson CUTTING members of the committee on the part of the Ashurst Copeland Lewis Ru~ll Austin Oostigan Logan Sch&ll Senate. Bachman Couzens Lonergan Schwellenbach REVISED LAWS OF HAWAII, 1935 Bailey Cutting Long Sheppard Bankhead Dtl. vis McAdoo Shipstead The VICE PRESIDENT laid before the Senate a letter Barbour Dieterich McCarran Smith from the Secretary of the Interior, transmitting copy of the Barkley Dona.hey McGill Steiwer Bilbo Du1fy McNary Thomas, Okla. Revised Laws of Hawaii, 1935, which laws are subject to Black Fletcher Maloney Thomas, Utah the approval of the Legislature of Hawaii, convening on the Bone Frazier Metcalt Townsend 20th instant, which, with the accompanying document, was Borah George Minton Trammell Brown Gerry Moore Truman referred to the Committee on Territories and Insular Affairs. Bulkley Gibson Murphy Tydings Bulow Glass Murray Vandenberg NOVEMBER REPORT OF FEDERAL EMERGENCY RELIEF AD]![!NISTRATION Burke Gore Neely VanNuys Byrd Hale Norbeck Wagner The VICE PRESIDENT laid before the Senate a letter Byrnes Harrison Norris Walsh from the Secretary of the Federal Emergency Relief Admin Capper Hastings Nye Wheeler istration, transmitting, pursuant to law, the report of that Caraway Hatch O'Mahoney White Carey Hayden Pope Administration covering the month of November 1934, Clark Johnson Radcliffe which, with the accompanying repcrt, was referred to the Connally King Reynolds Committee on Banking and Currency. Mr. LEWIS. I announce the absence of the Senator from PETITIONS AND MEMORIALS Pennsylvania [Mr. GUFFEY] and of the Senator from Nevada [Mr. PITTMAN], who are necessarily detained, and also the The VICE PRESIDENT laid before the Senate the follow .. absence of the junior Senator from Louisiana [Mr. OVER ing resolutions of the General Court of Massachusetts, which TON], caused by illness. were referred to the Committee on Commerce: Mr. AUSTIN. I desire to announce that the Senator from THE COMMONWEALTH OF MAssACHUSE'ITS, OFFICE OF THE SECRETARY, Iowa [Mr. DICKINSON] is necessarily absent, and that the Boston. Senator from New Hampshire [Mr. KEYES] is unavoidably RESOLUTIONS IN BEHAI.F OF THE FISHING INDUSTRY detained. Whereas the congress o! the United States has enacted legisla.. The VICE PRESIDENT. Eighty-nine Senators have an tlon authorizing loans by the Reconstructton Finance Corporation swered to their names. A quorum is present. to industrial enterprises in need of financial assistance; and Whereas the fishing industry of Massachusetts and other States ADMINISTRATION OF OATH TO SENATOR-ELECT K'KELLAR is also seriously in need of such assistance; and Whereas under the present statutes of the United States a valid Mr. BACHMAN. Mr. President, I desire to announce that mortgage having priority over subsequently accruing liens may be the Senator-elect from Tennessee [Mr. McKELLAR] is executed and recorded covering vessels of 200 gross tons and up· wards only, and accordingly no adequate security can be given by present in the Chamber. His credentials have been pre the owners of fishing vessels of less than 200 tons to the Recon.. sented and filed, and he is now prepared to take the oath struction Finance Corporation for any loans which they may re.. of office. quire : Therefore, be it Resolved, That the General Court of Massachusetts respectfully The VICE PRESIDENT. The Senator-elect will present urges the Congress of the United States to enact legislation which himself at the desk and the oath of office will be admin will provide that a mortgage on vessels of the United States of istered. smaller tonnage than 200 tons shall have the same priority over McKELLAR, such liens as vessels of 200 tons or upwards, or such other legisla Mr. escorted by Mr. BACHMAN, advanced to tion as it may deem necessary, to the end that the fishing industry the Vice President's desk, and the oath prescribed by law of the United States may be assisted and preserved; and be 111 was administered to him by the Vice President. further 1935 CONGRESSIONAL RECORD-SENATE 1707 Resolved, That certified copies of these resolutions be sent by State of Minnesota, which was referred to the Committee the secretary of the Commonwealth to the presiding officers of on Finance: both branches of the Congress and to each of the Senators and Representatives from this Commonwealth. A concurrent resolution petitioning the Congress of the United In senate, adopted January 30, 1935. States and President Franklin D. Roosevelt, respectfully, to pass In house of representatives, adopted in concurrence February 1, and approve an adequate old-age pension act 1935. Whereas there are several million persons in the United States A true copy. who by reason of old age and destitute circumstances have no Attest: means of support; and (SEAL} F. W. COOK, Secretary of the Commonwealth. Whereas many of the local communities which in the past have carried the burden of supporting the aged and destitute ar'e no The VICE PRESIDENT also laid before the Senate the longer able to do so by reason of the economic depression pre vailing throughout the United States; and following joint resolution of the Legislature of the State of Whereas the National Government possesses taxing powers not California, which was referred to the Committee on Finance: possessed by the States and can levy taxes uniformly throughout Assembly Joint Resolution 6 the United States, which cannot be evaded by removal of prop erty or business from one State to another; and Adopted in assembly January 18, 1935. Whereas by reason of this Nation-Wide taxing power the Na ARTHUR A. OHNIMUS, tional Government can, better than the States, carry the burden Chief Clerk of the Assembly. of an adequate old-age pension law; and Adopted in senate January 22, 1935. Whereas an adequate old-age pension law is urgently needed to J. A. BEEK, provide for the aged who are in need of help: Therefore be it Secretary of the Senate. Resolved, by the Senate of the State of Minnesota (the house of This resolution was received by the Governor this 26th day of representatives concurring), That we respectfully petition the January, A. D. 1935, at 1 :30 o'clock p. m. Congress of the United States and President Franklin D. Roosevelt, MARK LEE MEGLADDERY, Jr., respectfully, to pass and approve an adequate old-age pension act; Private Secretary of the Governor. be it further Resolved, That the secretary of state be instructed to send copies CHAPTER 30 of this resolution to the Honorable Franklin D. Roosevelt, Presi Assembly Joint Resolution No. 6, relative to memorializing the dent of the United -States; the Honorable John N. Garner, Vice President and Congress to carefully consider what is known as President of the United States; the Honorable Joseph Byrns, the "Townsend plan of old-age revolving pension" Speaker of the House of Representatives of the United States; and Whereas the care of the dependent aged has become so great a to each of the Senators and Representatives from the State of financial burden to some States that the economic welfare and Minnesota in the Congress of the United States. stability of such States are seriously affected and even threatened; HJALMAR PETERSEN, and President of the Senate. Whereas the problem of the care of the dependent aged has re GEORGE W. JOHNSON, cently attained major proportions throughout the Nation, owing Speaker of the House of Representatives. largely to the increasing mechanization of our industrial system Passed the senate the 31st day of January 1935. and to the fact that the economic depression has destroyed the fi G. H. SPAETH, nancial independence of a large number of our people, including Secretary of the Senate. even those who had prudently prepared for the time when they could no longer earn a livelihood; and Passed the house of representatives the 1st day of February 1935. Whereas it seems Wise to retire from industry and business those JOHN I. LEVIN, whose efficiency is declining because of advancing old age, thus Chief Clerk House of Representatives. giving more opportunity for employment and advancement to Approved February 5, 1935. younger workers; and FLoYD B. OLSON, Whereas experience has shown that when ownership of property Governor of the State of Minnesota. disqualifies the owner for receipt of an old-age pension, a serious injustice is effected and a penalty imposed upon those whose Filed February 5, 1935. prudence and thrift has led them to prepare for old age by in · MIKE HOLM, Secretary of State. vestment in a home or other small holdings, but who have no income with which to support themselves and to preserve their I, Mike Holm, secretary of state of the State of Minnesota, do property, particularly since there is often no market for the prop hereby certify that I have compared the annexed copy with record of the original resolution in my office of S. F. No. 14, being Reso erty; and lution No. 6, Laws 1935, and that said copy is a true and correct Whereas Dr. F. E. Townsend, of Long Beach, Calif., has devised transcript of said resolution and of the whole thereof. a plan commonly known as the "Townsend plan of old-age re In testimony whereof, I have hereunto set my hand and affixed volving pension"; and the great seal of the State, at the capitol, in St. Paul, this 6th day Whereas the President of the United States has recognized the of February, A. D. 1935. responsibility of the Federal Government in this matter, and has [SEAL 1 MIKE HOLM, Secretary of State. indicated that he w111 recommend to the Congress of the United States, at its next session, that there be legislation bearing on this The VICE PRESIDENT also laid before the Senate the problem: Now, therefore, be it following joint resolution of the Legislature of the State of Resolved by the Assembly and the Senate of the State of Cali fornia, jointly, That the President and the Congress of the United Minnesota, which was referred to the Committee on Public States is hereby respectfully urged to carefully consider the enact Buildings and Grounds: ment of an old-age-pension law and to study the Townsend plan of old-age revolving pension; and be it further Joint resolution memorializing Congress to use granite and natural stone in the construction of public buildings Resolved, That the Governor of the State of California is hereby requested to transmit copies of this resolution to the President and Whereas the Federal Government is contemplating an exten Vice President of the United States, to the Speaker of the House sive public-works program, under which many public buildings of Representatives, and to each Senator and Member of the House Will be erected throughout the United States; and of Representatives from California in the Congress of the United Whereas the present status of unemployment in the granite and States, and that such Senators and Members from California are stone industries in the State of Minnesota and other granite- and hereby respectfully urged to study such legislation. stone-producing States is deplorable, it being estimated that from EDwARD CR.Ua, 80 to 85 percent of granite and stone employees · are on Federal S-peaker of the Assembly. relief; and GEO. J. HATFIELD, Whereas the greater portion of the cost of finished granite and President of the Senate. stone is incurred by labor; and Attest: Whereas the quality and durabUity of granite and stone build [SEAL] FRANK c. JORDAN, ings unquestionably excels that of buildings constructed of inferior Secretary of State. materials; and Endorsed: Filed in the office of the Secretary of State of the Whereas from the standpoint of economy and prudent policy it State of California, January 26, 1935, at 4:15 o'clock p. m. is advisable that lasting and durable materials be used in the FRANK c. JORDAN, construction of public buildings: Now, be it therefore Secretary of State. Resolved by the Senate of the State of Minnesota (the house of By CHAS J. HAGERTY, representatives concurring), That Congress be respectfully urged Deputy. and petitioned to enact legislation. or to otherwise take appro priate action to require that granite and natural stone be used The VICE PRESIDENT also laid before the Senate the in the construction of public buildings to be erected under the/ following concurrent resolution of the Legislature of the public-works program; and that the secretary of state be iD.-1 1708 CONGRESSIONAL RECORD-SENATE FEBRUARY 8 structed to send copies of this resolution to the President, Vice interest paid, which was referred to the Committee on President, Secretary of the Treasury of the l:!nited States, and to Finance. the Members of Congress from the State of Minnesota. HJALMAR PETERSEN, (See joint resolution printed in full when presented today President of the Senate. by Mr. DUFFY, p. 1764.) GEORGE W. JOHNSON, The VICE PRESIDENT also laid before the Senate a con Speaker of the House of Representatives. Passed the senate the 1st day of February 1935. current resolution of the Legislature of the State of New York, G. H. SPAETH, favoring inclusion in the Federal Public Works program of Secretary of the Senate. the Hamilton Avenue-Governors Island-Battery vehicular Passed the house of representatives the 1st day of February 1935. tunnel project, which was referred to the Committee on Ap JOHN I. LEv!N, propriations. Chief Clerk House of Representatives. Approved February 5, 1935. (See concurrent resolution printed in full when presented FLOYD B. OLSON, today by Mr. COPELAND, p. 1765.) Governor of the State of Minnesota. The VICE PRESIDENT also laid before the Senate a joint Filed February 5, 1935. MIKE HOLM, resolution of the Legislature of the State of North Carolina, Secretary of State. favoring the enactment of new income-tax laws or such other I, Mike Holm, secretary of state of the State of Minnesota, do suitable and appropriate legislation as will remove entirely hereby certify that I have compared the annexed copy with rec?rd the profit to all persons, firms, and corporations from any of the original resolution in my office of S. F. No. 345, bemg future war in which the United States may be engaged, which Resolution No. 7, Laws 1935, and that said copy is a true and correct transcript of said resolution and of the whole thereof. was referred to the Committee on Finance. In testimony whereof, I have hereunto set my hand and affixed (See joint resolution printed in full when presented today the great seal of the State, at the capitol, in St. Paul, this 6th by Mr. BAILEY, p. 1764.) day of February, A. D. 1935. (SEAL] MIKE HOLM, The VICE PRESIDENT also laid before the Senate a letter Secretary of State. in the nature of a petition from Winter Capitol Lodge, No. The VICE PRESIDENT also laid before the Senate the fol 595, Improved Benevolent and Protective Order of Elks of the lowing joint resolution of the Legislature of the State of World, New Orleans, La., praying for the prompt enactment Wisconsin, which was ref erred to the Special Committee on of the so-called " Costigan-Wagner antilynching bill ", which was referred to the Committee on the Judiciary. Investigation of the Munitions Industry: Mr. BAILEY presented the following joint resolution of the STATE OF WISCONSIN, Legislature of the State of North Carolina, which was re Joint resolution memorializing Congress to continue investigation into activities of munition manufacturers and to publish the f erred to the Committee on Agriculture and Forestry: findings and recommendations of the Senate committee thereon Resolution 15 Whereas the Senate investigat ing committee, inquiring into the Joint resolution requesting that the Congress of the United States, activities of munition interests, has uncovered many selfish and without further delay, pass the Frazier-Lemke farm-refinance treacherous methods indulged in by such interests to stimulate bill (S. 212 and H. R. 2066) wars and preparations for wars; and Whereas unless immediate relief is given, hundreds and thou Whereas munition manufacturers amassed enormous profits from sands of additional farmers will lose their farms and their h omes, sales of munitions to the several countries engaged in the World and millions more will be forced into our cities and villages, and War, and in many inst ances increased their annual profits from the army of the unemployed will necessariy increase to alarming $5,000,000 to $50,000,000 while nations were being crushed and proportions; and . . peoples destroyed with their own deadly products; and Whereas there is no adequate way of refinancing existing agri Whereas since the World War these same munition concerns, in cultural indebtedness, and the farmers are at the mercy of their order to perpetuate war profits, have unscrupulously, contrary to mortgagees and creditors throughout this State and Nation ; and the public good, and in order to defeat world-wide efforts for uni Whereas the Frazier-Lemke refinance bill, being S. 212 and H. R. versal peace, promoted propaganda through subsidized newspapers 2066, in the Congress of the United States, provides for the liqui and periodicals throughout the Nation and the civilized world, dating and refinancing of agricultural indebtedness at a reduced breeding malevolence, mistrust, and anxiety among peoples of rate of interest through the Farm Credit Administration and the nations; and Federal land banks; and Whereas these interests have been active in Federal Army and Whereas the Frazier-Lemke bill has the endorsement of 22 S ~ ate Navy affairs for business aggrandizement; and legislatures, and in addition the lower houses of the St ates of New Whereas the facts regarding such activities of munition manu York and Delaware, and of many commercial clubs, chambers of facturers are of vital interest and importance to the American commerce, bank organizations, and of business and professional public, and have not been publicized sufficiently to enlighten the men and women, as well as the great majority of the farmers of reading public thereon; and this Nation; and Whereas the investigation of the munition manufacturers has Whereas the enactment of this bill will have a vital effect not not sufficient ly disclosed the foul and inhumane tactics by them only upon agriculture but upon all classes of industry; and resorted to in promoting munition sales and profits to enable Con Whereas agriculture is the basic industry of this country, and gress to intelligently and effectually provide ways and means to there can be no recovery until agriculture is put upon a sound stop the evil practices herein related: Therefore, be it basis: Now, therefore, be it . Resolved by the assembly (the senate concurring), That the Resolved by the house of representatives (the senate concurring), Legislature of Wisconsin r~pectfully memorializes the Congress of SECTION 1. That it is the sense of your memorialists, the mem the United States to pron:,.ptly authorize the Senate investigating bers of the General Assembly of the State of North Carolina, that committee inquiring into activities of munition manufacturers to the Congress of the United States should enact the Frazi er-Lemke continue such investigation and to publish in the CONGRESSIONAL bUl without further delay. RECORD, or in such other manner as will reaeh the reading public, SEC. 2. That a copy of this memorial, duly authenticated, be sent the substance of the findings and recommendations of the com by the secretary of State to the President of the Senate and the mittee thereon; and be it further Speaker of the House of Representatives of the United States, and Resolved, That properly attested copies of this resolution be sent to each Senator and Representative in Congress from this State, to both Houses of the Congress of the United States and to each to the President of the United States, and to United States Senator Wisconsin Member thereof. LYNN J. FRAzmR and Congressman WILLIAM LEMKE • . THOMAS J. O'MALLEY, SEC. 3. That this resolution shall be in full force and effect President of the Senate. from and after its ratification. LAWRENCE R. LARSEN, In the gener~ assembly, read three times, and ratified this the Chief Clerk of the Senate. 31st day of January 1935. J. W. CAROW, A. H. GRAHAM , Speaker of the Assembly. President of the Senate. LESTER R. JOHNSON, R. G. JOHNSON, Chief Clerk of the Assembly. Speaker of the House of Representatives. The VICE PRESIDENT also laid before the Senate a joint Examined and found correct. resolution of the Legislature of the state of Wisconsin, favor L. w. LEGGETT, for Committee. ing the prompt enactment of legislation providing for the Mr. BAILEY also presented the following joint resolution immediate cash payment of veterans' adjusted-service cer of the Legislature of the State of North Carolina, which was tificates, with cancelation of accrued interest and refund of referred to the Committee on Finance: 1935 CONGRESSIONAL RECORD-SENATE 1709
Resolution 17 STATE OF WISCONSIN. Joint resolution of the house of representatives and the senate Joint resolution relating to the immediate cash payment of the memorializing the Congress of the United States of America to veterans' adjusted-service certificates and the cancelation of ac enact legislation to take the profit out of war crued interest and refund of interest paid thereon Be it resolved by the house of representatives (the senate co-n. Whereas in the Soldiers' Bonus Act of 1924 the United States curring)- Government promised the men who served this country during the SECTION 1. That the General Assembly of the State of North World War, at a wage of $1 per day, that the pecuniary losses which Carolina do memorialize the Congress of the United States of they sustained through this service would be partially compen America to take action by the passage of new and additional sated; but this debt, due and owing now for 11 years, still remains income-tax laws or such other suitable and appropriate legislation unpaid; and as will, in the judgment of that honorable body, remove entirely Whereas the Government of the United States is no-;v definitely the profit to all persons, firms, and corporations from any future committed to the policy of spending public money for the purposes war in which the United States of America may be engaged. of relieving human suffering and stimulating business and industry; SEC. 2. That this resolution and the record of its adoption be and transmitted through the usual and appropriate channel to the Whereas the immediate cash payment of the adjusted-service cer Congress of the United States of America. tificates will increase tremendously the purchasing power of mil In the general assembly, read three times and ratified this the lions of the consuming public; provide relief for the holders 7th day of February 1935. thereof who are in dire need and distress because of the unfor A. H. GRAHAM, tunate economic conditions; and lighten the burden which cities. President of the Senate. counties, and States are now required to carry for relief; and R. G. JOHNSON, Whereas the payment of said certificates will discharge and retire Speaker of the House of Representatives. an acknowledged contract obligation of the Government: There Examined and found correct. fore be it ;J. D. BLANTON, for Committee. Resolved by the assembly (the senate concurring), That the Leg islature of Wisconsin respectfully memorialize the Congress of the Mr. METCALF. Mr. President, I present two resolutions United States to promptly enact legislation providing for the im adopted by the General Assembly of the State of Rhode Is mediate cash payment of the veterans' adjusted-service certificates. land, one recommending immediate payment of adjusted with cancelation of accrued interest and refund of interest paid; be service certificates and the other praying for the relief of it further Resolved, That properly attested copies of this resolution be sent the textile industry. to the President of the United States, to both Houses of the Con The VICE PRESIDENT. The resolutions will be received, gress of the United States, and to each Wisconsin Member thereof• . printed in the RECORD, and appropriately ref erred. THOMAS J. O'MALLEY. . President of the Senate. To the Committee on Finance: LAWRENCE R. LARSEN, STATE OF RHODE ISLAND, ETC., Chief Clerk of the Senate. IN GENERAL ASSEMBLY, J. W. CAROW, January Session, A. D. 1935. Speaker of the Assembly. Resolution of the general assembly recommending to Congress the LESTER R. JOHNSON, passage of legislation providing for the payment of adjusted Chief Clerk of the Assembly. service certificates at their face value (passed Jan. 30, 1935) Mr. DUFFY also presented the following joint resolution Whereas there· is pending in the Congress of the United States of the Legislature of the State of Wisconsin, which was certain bills providing for the payment of adjusted-service certifi cates at their face value; and referred to the Committee on the Judiciary: Whereas the passage of such legislation would be of considerable Joint resolution memorializing the Congress of the United States benefit to the soldiers, sailors, and marines who served in the to pass, and the President of the United States to approve, if World War; and passed, the General Pulaski's Memorial Day resolution now Whereas the immediate cash payment of the adjusted-service pending in Congress certificates will increase tremendously the purchasing power of millions of the consuming public, distributed uniformly through Whereas a resolution providing for the President of the United out the Nation, and will provide relief for the holders thereof who States to proclaim October 11 of each year as "General Pulaski's are in dire need and distress because of the present unfortunate Memorial Day " for the observance and commemoration of the economic conditions, and will lighten immeasurably the burden death of Brig. Gen. Casimir Pulaski, is now pending in the which cities, counties, and States are now required to carry for present session of Congress; and relief: Therefore be it Whereas the 11th day of October 1779 is the date in American Resolved, That the general assembly respectfully requests the history of the heroic death of Brig. Gen. Casimir Pulaski, who Senators and Representatives of Rhode Island in the Congress of died from wounds received on October 9, 1779, at the siege of :the United States to give their earnest support to said bills and Savannah, Ga.; and to use their efforts to secure the early passage of this legislation Whereas the States of Arkansa.s, California, Connecticut, Dela by the Senate and House of Representatives of the United States; ware, Illinois, Indiana, Kentucky, Louisiana, Maryland, Kansas, and be it further Massachusetts, Michigan, Minnesota, Missouri, Nebraska, New Resolved, That copies of this resolution be transmitted by the Hampshire, New Jersey, New York, Nevada, Ohio, Pennsylvania. secretary of state to the Senators and Representatives of Rhode South Carolina, Tennessee, Texas, West Virginia, Wisconsin, and Island in the Congress of the United States. other States of the Union, through legislative enactment desig nated October 11 of each year as " General Pulaski's Memorial To the Committee on Manufactures: Day"; and STATE OF RHODE ISLAND, ETC., Whereas it is fitting that the recurring anniversary of this day IN GENERAL AsSEMBLY, be commemorated with suitable patriotic and public exercises in January Session, A. D. 1935. observing and commemorating the heroic death of this great American hero of the Revolutionary War; and Resolution requesting the Senators and Representatives of Rhode Island in the Congress of the United States to use their efforts Whereas the Congress of the United States has by legislative to secure the passage of legislation which will ameliorate suf enactment designated October 11, 1929, October 11, 1931, Octoter fering caused by textile conditions in this State (passed Jan. 30, 11, 1932, and October 11, 1934, to be General Pulaski's Memorial 1935) Day in the United States: Now, -therefore, be it Resolved by the assembly (the senate concurring), That this Whereas the unsatisfactory conditions in the textile industry legislature respectfully memorializes the Congress of the United are a cause of great distress in Rhode Island and the lack of work States to pass, and the President of the United States to approve, imposes a heavy burden upon the relief agencies in the State; if passed, the General Pulaski's Memorial Day resolution now and pending in the Congress: Be it further Whereas Federal legislation is needed to correct the conditions in the textile industry and to ameliorate suffering: Therefore be it Resolved, That properly attested copies of this resolution be Resolved, That the general assembly respectfully requests the sent to the President of the United States, the Vice President of Senators and Representatives of Rhode Island in the Congress of the United States, the Speaker of the House of Representatives the United States to take such steps as will remedy the condi of the United States, and to each United States Senator and tions now existent in the State; and be it further Representative from Wisconsin. THOMAS J. O'MALLEY, Resolved, That copies of this resolution be transmitted by the President oj the Senate. secretary of state to the Senators and Representatives of Rhode LAWRENCE R. LARsEi-J, Island in the Congress of the United States. Chief Clerk of the Senate. Mr. DUFFY presented the following joint resolution of the J. W. CAROW, Speaker of the Assembly. Legislature of the State of Wisconsin, which was ref erred to LESTER R. JOHNSON, the Committee on Finance: Chief Clerk of the Assembly. 1710 CONGRESSIONAL RECORD-SENATE FEBRUARY 8- Mr. DUFFY also presented the following joint resolution that any veteran having an amputation or eye disability shall of the Legislature of the State of Wisconsin, which was be presumptively entitled to the benefits of his war-risk in ordered to lie on the table: surance policy in the exact proportionate amount of his dis STATE OF WISCONSIN. ability rating for compensation purposes, which was referred Joint resolution requesting the Congress of the United States to to the Committee on Finance. advise the Legislature of Wisconsin as to the effect upon Congress of resolutions memorializing that body (See concurrent resolution printed in full when laid before Whereas during past sessions of the legislature, both regular and the Senate by the Vice President on the 6th instant, pp. special, a large number of resolutions llave been adopted memorial 1550-1551, CONGRESSIONAL RECORD.) izing the Congress of the United States to take certain action or Mr. COPELAND also presented a resolution of the board to refrain from taking certain action on many and diverse subjects; of supervisors of Erie County, N. Y., favoring inclusion in the and Whereas such resolutions have not only increased to a consider joint resolution (H. J. Res. 117) making appropriations for able extent the printing bill of the legislature but also have con relief purposes, of a provision allotting a suitable appropria sumed much valuable time; and tion to the railroads for grade-crossing improvements, which Whereas many members of the legislature feel that such reso was referred to the Committee on Appropriations. lutions have little, if any, effect upon the Congress of the United States: Now, therefore, be it He also presented a resolution adopted by the Ninth Ward Resolved by the assembly (the senate concurring), That this Taxpayers Association, Buffalo, N. Y., favoring the enact legislature respectfully seek the advice of the Congress of the ment of the joint resolution (H. J. Res. 117) making appro United states as to what, if any, benefit that body derives from the numerous resolutions which are forwarded to it from the priations for relief purposes, but not with a Federal bond legislature of this State, and respectfully requests the Presiding issue provision in connection therewith, which was referred Officer or Chief Clerk of each of the Houses of Congress to give tl1e to the Committee on Appropriations. advice herein requested to this legislature; be it further di Resolved, That properly attested copies of this resolution be for He also presented a resolution adopted by the board of warded to the Presiding Officers of both Houses of the Congress rectors of the American Water Works Association, New York and to each Wisconsin Member thereof. City, N. Y., favoring the allocation of a substantial part of THOMAS J. O'MALLEY, the funds to be provided in the joint resolution Washington Chenango County Idaho (Rept. No. 82); farmers' returns may be made adequate for the discharge H. R. 2874. A bill granting the consent of Congress to the of their obligations, and also for the recovery of industry, State highway commission to construct, maintain, and op which was referred to the Committee on Banking and erate a free highway bridge across Eleven Points River in Currency. section 17, township 23 north, range 2 west, approximately He also presented a resolution adopted by the executive 12 miles east of Alton, on route no. 42, Oregon County, Mo. committee of the Rehabilitation and Modernization Associa Oklahoma to construct, maintain, and operate a free Supervisors of Erie County, N. Y., commending the efforts highway bridge across the Arkansas River south of the town of the Senators from New York [Mr. COPELAND and Mr. of Sallisaw in Sequoyah and Le Flore Counties at a point ap WAGNER] and also Representatives JAMES M. MEAD, ALFRED proximately 15 miles north of Keota in the State of Okla F. BEITER, and WALTER G. ANDREWS to have the sewerage homa Mississippi Mr. BACHMAN, from ·the Committee on Military Affairs, River at or near the road between the villages of Cohasset and to which was referred the bill (S. 920) for the relief of Ruth Deer River, Minn. (Rept. No. 89). J. Barnes, reported it without amendment and submitted Mr. KING, from the Committee on the District of Colum a report (No. 73) thereon. bia, to which were referred the following bills, reported them Mr. DUFFY, from the Committee on Military Affairs, to each without amendment and submitted reports thereon: which was referred the bill (S. 246) for the relief of Elmer S. 409. A bill to amend certain sections of the Code of Law Blair, reported it without amendment and submitted a report for the District of Columbia, approved March 3, 1901, as Arizona State Highway Com INQUIRIES INTO DISASTERS AT SEA mission to construct, maintain, and operate a toll or free Mr. COPELAND, from the Committee on Commerce, to , bridge across the Colorado River at or near Parker, Ariz., which was referred the resolution CS. Res. 7) relating to the · within the Colorado River Indian Reservation granting a pension to Mable Forrer; to TION SIGNED the Committee on Pensions. A message from the House of Representatives, by Mr. By Mr. SCHALL: Haltigan, one of its reading clerks, announced that the A bill (S. 1783) for the relief of John F. Patterson; to Speaker had affixed his signature to the following enrolled the Committee on Military Affairs. bill and joint resolution, and they were signed by the Vice By Mr. COPELAND: President: A joint resolution Alabama in spite of more than an $8,000,000 increase during this interval, [Mr. BLACK] on the subject of the 30-hour-week bill. the commission explained. State banks' loans and discounts allowing for withdrawal of the There being no objection, the address was ordered to be nine banks were $7,054,742 less than at the October survey. Re printed in the RECORD, as ~ollows: duction in amount of loans and discounts was due largely to pay Ladies and gentlemen of the radio audience, there is pending in ment of notes in districts where many loans advanced for agricul the United States Senate today a bill offered by me limiting the tural production have been met since crops were harvested. work of men and women in industrial and business activities to 6 hours in any 1 day and 30 hours in any 1 week. Farming is DECISIVE UPTURN IN HOG MARKET BOOSTS WEST'S EcONOMIC HOPES dependent upon weather and season, and this law, if passed, would not apply to it. On account of the courtesy of the National Broad CHICAGO, 4 February {Special) .-Economic skies of the West casting Co., I shall discuss this 30-hour week bill with you at this brightened further today with a decisive upturn in the hog market time. · and steady cattle prices. There has been a definite rise in the cattle market recently and observers have looked upon the gains There was a time when men, women, and children worked in as a real indication of better times. manufacturing and industrial activities 12, 14, and even 16 hours per day. When opposition developed to such practices in this and other countries these long hours were defended by employers and CmCAGO, February 4.-The hog market, having marked time managers, who profited from them, and by their paid writei·s and most of last week, spurted sharply higher today on the hint of propagandists. Self-styled economists asrerted the imperative continued below-normal receipts. necessity of. these long hours. Those who sought to bring about a. Prices gained 15 to 25 cents above Friday's level, with the top reduction in these long hours of work were branded as anarchists soaring to $8.15, within 5 cents of the highest price since 1931. and enemies of business, organized society, and civilization. Weights above 200 pounds sold a.t $8 to $8.10, while lighter animals At a later period efforts were made to reduce working hours to sold as low as $7. 8 per day. Organized industry, organized manufacturers, organ The market had 22,000 fresh hogs, including 11,000 direct. This ized chambers of commerce, and organized so-called "patriotic run was around 11,000 below o1ferings a year ago, however, and societies" again protested against such reduction of hours. News only 1,000 holdovers were available. The average price a year ago papers and magazines dependent for their advertising income upon was $3.90. Outside markets also showed strength, prices rising the goodwill of these organized groups. joined in the clamor as much as 20 cents in instances. against the 8-hour day. Economists with sixteenth century con Though business was transacted at a slow pace in the cattle ceptions protested. Again they branded those who favored a. trade, steer and yearing prices were fully steady. In fact, with shorter workday as anarchists, Communists, Socialists, and enemies sellers resisting unevenly lower bids, best fed steers, of which few of business, society, and civilization. were available, were held above the 4-year peak of $13.65. The During all these years of controversy, machines were producing early top was $13.50. Lower grade cattle, including most she more and more of life's necessities, and human labor was becoming stock, were weak to 25 cents off, however. Receipts were 14,000. less and less necessary to operate machines. Production increased Bids and sales in killing lambs were fully steady with sellers ask and man hours per unit of production decreased. ing higher, holding choice lambs at $9.10 and upward. Sheep were Two years ago I offered a bill in the United States Senate provid steady, and feeders firm. Receipts totaled 15,000. Below-average ing fer a 6-hour day and 30-hour week in industry and business. run for the da.te. This bill passed the United States Senate. It did not pass in tile House of Representatives. It was opposed by the same old groups PENNSYLVANlA AUTO REVENlJE NEABS REC0~64,100,000 PAID and was met with the same old arguments and denunciations. DuluNG 1934 BY MOTORISTS OF STA'?E At the time the bill was originally offered there were more than HARRISBURG, PA., February 2.-Approaching the peak year of 1930, 12,000,000 American. citizens wholly and completely unemploye1, the State treasury collected $64,100,000 in gasoline tax and regis and perhaps an equal number, partially unemployed. Hunger. tration fees from Pennsylvania motorists in 1934, and the most of it poverty, misery, and destitution stalked abroad in the United was spent on highway improvements. States of America at that time. The suffering and deprivation of That sum was exclusive of the money collected by the Federal farmers and wage earners and the masses of American citizens had Government through its 1-cent-a-gallon gasoline ta~ and motor reached an all-time high peak in the history of the Nation. With accessories levies. a surpllis of everything men and women needed to relieve the The State realized $66,472,507 from license fees and gasoline tax sting of cold, to satisfy the gnawings of hunger and to provide in 1930, the peak year, when the gasoline levy for a time was 4 shelter for the homeless, many Americans citizens went without cents a gallon. Last year's increase in revenue broke a yearly relief from cold, without adequate food, and without sufilcient decrease which began in 1931. shelter. On January 9, 1933, I talked to the people on the 5-day NEAR PEAK FIGURE week over a Nation-wide hook-up of the National Broadcasting Co. During 1934 registration fees for motorists accounted for $30,744,- At th&t time I insisted that it was necessary for us to choose between a dole system and a system of work for the people. I 688 and gasoline taxes yielded $33,356,395 for the motor fund. The stated to you then as follows: gasoline revenue was within $155,000 of the 1930 figure, while the registration income was down $2,215,000. " One thing is clear in all the tumult of confllcting views and clashing theor1e&-0ur people will not permit the starvation of In addition to these motor fund receipts, the highway depart these unemployed millions. - Two courses are open to prevent this. ment received approximately $18,890,000 In Federal-aid grants for It will not stand delay. In some way they should be given a road improvements. While that sum was available at the begin chance to earn an honest living by work. Failing this, we must nlng of the Federal fiscal year starting JUly 1, 1933, it was desig broaden, expand, and probably perpetuate a system of public care. nated as the 1934 allocation. We are now unmistakably at the crossroads. where we must choose The State's Federal-aid grant was $9,590,000 for 1935, which the between the evils of a dole system and some method of supplying State may use for road work by providing a similar amount. work for our people." - Pennsylvania registered its first automobiles in 1906. That year Since the time I made those statements the United States Gov the revenue on 10,954 cars amounted to $42,460. The registration ernment has fed millions of hungry people and supplied them with lncreased yearly until 1930, when the peak was reached. warmth and shelter. The Government has also brought about a FIRST GASOLINE slight reduction of the hours of work in industry, thereby giving Gasoline taxes were collected first in 1921. For the last 3 employment to several million people. months of the year the income amounted to $668,646. For the 12 It is still necessary, however, for us to choose between work and months of 1922 the 1-cent-a.-gallon tax yielded the State $2,- a permanent dole. 654,052. Today more than 20,000,000 American citizens receive Govern· The tax was increased to 2 cents a gallon, then to 3 cents and ment relief. This is one-sixth of our population. In some States for a year and a half during the administration of Gov. John S. one person out of every four is on Government relief. Fisher, the State levy was 4 cents. While there 1s a 4-cent tax Millions of other people receive relief from States, counties, rela at the present time, one-fourth of it goes to the Federal Govern tives, and charitable institutions. Varying estimates tell us that ment. seven to twelve million American citizens are still deprived of the Some of the revenue is used for the sinking fund and interest opportunity to earn their living. Private industry has been wholly payments on the is1.ooo,ooo in highway bonds and for main unable to give work to all these unemployed upon the existing taining the bureau of motor vehicles and the motor patrol. hours of labor, and few thoughtful people believe it can. Con Last year the legislature transferred $5,500,000 from the motor gress 1s now about to pass an appropriation of between 4 and 5 fund for unemployment relief with the under&ta.nding that it billion dollars to put 3 ¥.z million of these unemployed to work on would be be repaid from the general fund. public activities. 1935 CONGRESSIONAL RECORD-SENATE 1715 There are four possible courses to be followed with reference to worth of goods and services in 1934, as compared with ninety these unemployed. These courses are as follows: billion during the peak year of 1929. First. Abandon all forms of relief to them and leave them with It must be borne in mind, however, that there are far more out jobs, without food, without heat, and without clothes and people available for employment than were actually employed in shelter. This is the most inhumane and the most dangerous 1929. Even if common sense and common observation, therefore, course to follow, and this country will not choose it. did not show every citizen that we can produce in magnificent Second. Continue to feed 20 million or more idle people out of abundance on a 30-hour week, these figures, taken in part from the products of the toil and labor of the other citizens who work. the enemies of the 30-hour-week bill, are sufficient to convince This course is unjust to those who work and those who are fed the most skeptical, if the mind is open to receive the truth. As without work, and the dangerous consequences of such a course a matter of fact, industry has not for a long time had a suill.cient cannot be foretold. While some privileged groups blindly ask that stimulus to produce to its possibilities. we feed p~ople without work because it is cheaper, it is difficult to On last Thursday evening one of the opponents of the 30-hour believe that this course will be adopted. It puts dollars first and week bill spoke over radio station WEAF and said as follows: people last. " If someone will improve the present too~s and machinery so Third. To give work to our millions of unemployed upon public that a man can produce in 6 hours as much as he does now in projects, such as public roads, waterway developme~ts, soil e~osion, 8, why then, we can pay him one-third more and maybe cut the reforestation, slum clearance, and other useful projects. This is a price to you of the goods he makes." stupendous task, and no other government has yet found it pos Taking this gentleman at his word, I remind him that it has sible to absorb all of its unemployed in public works. In my own been found that since 1929 improvements have been effected to judgment it is necessary for us to contemplate more extensive pub the extent that a man's productive capacity has been increased lic works in order to supplement private employment, but I do not 25 percent. This means that he can now produce practically the believe it possible to put everybody to work that way. se.me in 6 hours that he could produce in 1929 in 8 hours. Fourth. The fourth method of meeting the problem of unem A study made by President Hoover's committee on recent eco ployment is to recognize the fact that it is the duty of private nomic changes showed that from 1919 to 1927 the output per business under our economic system to supply employment to man-hour had increased in manufacturing 74 percent and that it our citizens. Since private business has been unable to coordinate actually increased 39 percent in the 3-year period from 1924 to its functions in such way as to supply employment, it is necessary 1927. for us to bring about by law the necessary coordination of business Between 1922 and 1929, or for a period of 7 years, our annual in such a way that it can supply employment to our people. production increased in this country at the rate of 3.7 percent a Looking toward such action as will bring work to our unem year, or more than 25 percent. This 25-percent increase in pro ployed in private business, there are two ways theoretically possible duction resulted with practically the same number of workers. in which it can put our millions to work. The output per man in the automobile production went up 888 On~ way is to increase production to such an extent that addi percent between the years 1914 and 1925. tional workers will be needed to produce and to make necessary In all the fields of industrial and business activity the same the work of our unemployed in such additional production. picture is seen. Machines and power, generated by water, coal, The second method of providing employment is to shorten the and oil, are taking the place of men. hours of labor for workers, so that it will require a larger number With these few well-known facts called to your attention, and of people to do the necessary amount of work. in view of the fact that many millions of workers have stood by in It is my own belief that both of these methods will have to be enforced idleness, as they watched many hundreds of factories and adopted and carried out, if private business gives work to our mines wholly and completely idle, it borders on the ridiculous to people and supplies the goods and services they need. assert that a 30-hour week will curtail production. The very This analysis brings us face to face with t wo questions: First. manufacturers and producers who are combining together to alarm Can we produce in the United States what is necessary to keep the public with the idea that a 30-hour week will reduce produc our economic system functioning on a 6-hour day and 30-hour tion have been for a long time and are now failing to run their week? Second. Will the adoption of this shorter work week and mills, mines, and factories to capacity. A 30-hour week will not workday, together with the higher wages it provides for the work reduce the output of our great productive machines, but it has ers, increase production and aid business or decrease production been reduced in the past and will continue to be reduced in the and retard business? fut ure by lack of purchasing power on the part of those upon Recently those who oppose shorter hours and who favor the whom we must depend to consume our goods. c,ld economic ideas have sought to lead the people to believe that Th.ere has been a very substantial loss to the American people in we could not produce what we need on a 30-hour week. This the failure of production since 1929. If our great productive supposed fact has been seized upon as an argument for long machinery had been running to capacity, a conservative estimate hours and low wages by those newspapers, magazines, institutions, is that we would have produced almost $300,000,000,000 worth of and propagandists who seek to safeguard the citadels of privilege goods and services since 1929, more than business has actually pro and plunder made possible by excessive profits, high interest, duced. This failure to produce $300,000,000,000 worth of goods and outrageous salaries, and unearned bonuses. services to add to the comfort and happiness of the people of Let us examine this contention. We will first refer to certain America has not been due to any 6-hour day and 30-hour week. figures advanced by two independent groups with reference to It has been due to the fact that idle machines, idle mines, and our industrial production in 1929. One of these studies was made idle factories have combined with idle men and idle women to by the National Survey of Potential Products Capacity, a govern present to the world a picture of the greatest waste in all human mental agency utilizing the services of a large number of engi history. Every factory, mine, and business enterprise that is idle neers and economists. This group, working under the auspices in whole or in part, which could produce the things people want of our Government, found that in 1929, $90,000,000,000 worth of and need, as well as the failure to utilize the services of more than goods and services were produced in the United States. They also 10,000,000 people, is a daily, weekly, and monthly waste. found that this production might have been expanded to $135,- Under our economic system factories, mines, and business. enter 000,000,000, if the existing plants had been operated at approxi prises do not run simply because we have men, women, and power mate capacity. The $90,000,000,000 production meant an average ready and able to run them. After we have built the factories and of $2,800 for each American family, and a $135,000,000,000 pro dug the mines and have available human labor there is still some duction would have supplied an average of $4,400 for each family. thing else needed to put these mines, factories, business enter A so-called "study" made under the direction of the Brook prises, and people to work. ings Institution, the results of which are published under the title Not a mine will produce nor a wheel turn in a factory unless of "America's Capacity to Produce", reaches the conclusion that in the owners believe that they will be able to sell the output to some the peak year of 1929 industry was producing approximately 80 body at a profit. The thing that has retarded business in the past percent of its practical capacity. While I am sme that a careful under our economic system, and that will retard it in the future, study of this book, particularly with reference to the Government is an absence of purchasers financially able to buy. Purch'.lSers statistics upon which it is alleged to be based, will lead any think able, willing, and ready to buy could start the wheels in every ing person to the belief that this conclusion is erroneous, I do not factory in America within a week. They could bring the hum of have time now to analyze the report. I expect to point out its prosperity back to the mining and manufacturing regions and fill inaccuracies and fallacies at a later date. It is most interesting, railroad cars with the comforts and necesmties of life, speeding however, in connection with this book to consider a part of a north, east, south, and west. pamphlet published by this institution against the 30-hour week, It therefore becomes of supreme importance to consider the dated January 3, 1935. On page 10 of this pamphlet it is stated effect of a 30-hour week upon supplying customers with money that man-hour productivity in manufacturing industries has in who can start the wheels of industry. creased 25 percent since 1929. While they attempt to offset this The only way to supply purchasers with money in the United conclusion by certain sur mises, if it is correct, and their other States is to have a fair, just, and balanced distribution of incomes. assertion that we lacked 20 percent of producing to capacity in Over 95 percent of the purchasers of American goods live in the 1929 is also true, it follows that industry could have produced 45 United States. In 1929, 92 percent of these purchasers had in percent more in 1934 than it did actually produce in the peak year comes under $5,000. Seventy-eight percent of these purchasers had of 192~ - incomes under $3,000. This 92 percent of the people, however, If the study made by the national survey of potential products received only 58 percent of the total national income, leaving 42 capacity, under the auspices of the United States Government, is percent of the income for 8 percent of the people; and the 78 correct, and the Brookings Institution is correct in saying that pro percent of the people with in comes under $3,000 obtained only ductivity has increased 25 percent since 1929, our national produc 40 percent of the national income, leaving 60 percent of the income tive machine cotild today produce in 1 year, with only as many for 22 percent of the people. Since over 95 percent of the buyers workers as were used in 1929, $169,000,000,000 worth of goods and of American goods live in the United States, and over 90 percent services. Working on a 30-hour week, with only as many employees of these purchasers depend on farm prices and business wages and as we had in 1929, we could, therefore, produce over $100,000,000,000 small salaries for their income, it is clear that if these incomes are LXXIX--109 1716 CONGRESSIONAL RECORD-SENATE FEBRUARY 8 inadequate to buy the output of pri\'ate business, private business interest that hours shall not be shortened and wages not be raised. cannot sell its goods at a profit. They always fight laws that raise farm prices and wages. For a number of years up to 1929 the share of the national in The farmers of this Nation are not injured by reason of the fact come going to the farmer and to the wage earner has been rapidly that their chief customers, the wage earners and small-income descending, while the share of the national income going to thosa class, receive enough to buy the farmer's goods. Farmers of this with incomes so large that they do not buy consumable goods, has Nation are injured, and injured materially, when the wage earners been rapidly increasing. do not receive adequate income; and when there is so much excess This is illustrated by the fact that from 1909 to 1929 the farmers' pro.fit, so many outrageous salaries and bonuses, and such excessive share decreased 50 percent. interest, that the wealth produced by all of the people is largely During that same period the number drawing incomes over $25,000 centralized in the control of a few of the people. increased from 40,000 people in 1921 to 102,000 people in 1929, There is absolutely no reason why the prices of goods, commodi and their total increase went from $2,000,000,000 to $8,000,000,000. ties, and services should be raised merely because the waae earner In 1921 there were 21 people with an income of over a m1llion receives a fair return for his work. Wages only constit;te about dollars, and in 1929 this number had risen from 21 people ·to one-sixth of the cost of manufacturing. Those who have heretofore 513. The increase of income of those receiving over a million obtained more than a fair share of profits, more salaries, bonuses, dollars had ascended from $49,000,000 in 1921 to $1,200,000,000 in and interest, must be satisfied with less. If they will content them 1929. selves with an adG1quate return and permit the wage earner to draw A striking example of the difference between the small income an adequate return and the farmers to receive a fair price for their families who buy the consumable goods of the Nation and the products, the purchasing power of the farmers and the wage earners large incomes is that in 1929 one-tenth of 1 percent of the fam can be sustained and our trade and commerce will fiourish and ilies of the United States at the top of the income list received prosper. as much income as 42 percent of the families at the bottom of the list. In other words, about 144,000 people received an income A work week of 30 hours and a work day of 6 hours, without a de of about $10,000,000,000, and at the same time and in the same crease in wages, would put millions of people back to work. I be year, about 47,000,000 people received incomes of about $10,000,- lieve that it would put 4,000,000 directly back to work within a very 000,000. . short time. It is idle to state that business would decline to operate There is nothing strange about the fact that after 1929 the col under a 30-hour week. Business operates when business believes it lapse of business occurred. Business had failed to distribute to can make a profit. It believes it can make a profit when it can get its worker-purchasers a sufficient amount of income to buy its purchasers with money. If our people are put to work and they are goods. Greed had reached such a point in 1929 that 513 people paid fair and adequate wages, business can sell its output at a received as much income as 8,000,000 people. profit. In 1919 the farm-mortgage debt was one-half the total gross Let me urge that the farmers of this Nation be not deluded by farm income, but by 1932 the farm-mortgage debt was twice the any efforts to antagonize you against the other workers of the amount of the gross farm income. This is a tragic picture of the Nation. When they attempt to make you believe that the farmer decline of farm income. is injured by good wages to the men that work, ask them what We therefore find that business has been pursuing a suicidal they have done to reduce the fabulous profits, the outrageous course. The farmers with small incomes and the wage earners salaries and bonuses, and the high interest rates that have taken and salaried employees and the small business men with little the products of the toil and labor of the men on the farm and the incomes have constantly received a smaller and smaller share of men in the factory, and placed it in the pockets of people who the aggregate products of the Nation. Instead of a scarcity of have received so much that they cannot spend it nor invest it goods as they had in the days when Joseph's brothers went to profitably. Egypt, we have had a scarcity of customers able to buy. The very The only fair way in which to make this economic system work people who produced the wealth have received such a small part or continue to function, with justice and impartiality, is to raise for their work on farms and in factories that they have been un the income of the farmers of America and increase the incomess able to exchange their labor for the necessities of life. of that large group of wage earners who make so little that they Economically, in this system, the fate and destiny of the Amer cannot support themselves and families in accordance with decent ican farmer and the American worker are inseparably linked to American standards. gether. About 30,000,000 people in the United States depend for Those who have greedily grabbed more of the products of our their income upon the products of the farm. During the so-called national economic structure than they can either spend or invest "boom" years, from 1921 to 1929, the American farmer did not with profit are the real obstacles to recovery. If too much of our realize any boom for himself. Year by year he became less and national income goes to interest, rent, and profit too little goes to less able to buy the goods he needed. wages and to the farmers. During the same period as I have already pointed out the wage If we put four millions of America's unemployed back to work. earner and small-salaried employee. did not receive a fair share of in her mines, factories, and on her transportation systems, their the Nation's products. demands will increase, and these demands will raise the prices These mlllions of American farmers and millions of American of the farmers' products, and put other factories and mines to workingmen are the chief customers for one another's goods. work producing to meet their needs. Five-cent cotton, 15-cent corn, 25-cent wheat, and other farm People who work on ow farms, and in our factories, mines, and prices in proportion practically take the farmer out of the market our business, must, and will, continue to produce that which for manufactured goods. This reacts directly upon the men who supports the people of the Nation. If all are permitted to work, receive wages, because it has always been true that the employer all will help feed and support themselves. If, however, we con has made the wage earner bear the brunt of decreased demands for tinue to let 20,000,000 people live in idleness, it means a permanent goods by partial or total unemployment and lower wages. dole system, supported by the workers of this Nation. · On the other hand, wage earners who receive such small amounts I stand for jobs for the idle, supplied so far as possible by private for their work that they are compelled to eke out an existence on industry and business. I stand for wages that wlll enable the the barest necessities of life cannot pay the farmer an adequate workers to buy the farmers' produce and the goods of business, price for his cotton, wheat, corn, milk, butter, eggs, and other farm to keep it functioning smoothly and evenly. I stand for higher products. farm prices giving the farmer value received for his work and Bearing in mind that over 90 percent of the goods of farm, fac giving him his necessary power as a consumer. The issue is plain tory, and mine must be sold to farmers, wage earners, and salaried and unmistakable. This Government must decide between a employees in the lo.wer brackets, it must be manifest to every permanent governmental dole and a shorter work week and work person that low wages in industry mean low prices to the farmer, day. and low prices to the farmer mean low wages to industry. In order to sustain the manhood and womanhood of this country It is because of the fact that these two large groups of American in accordance with our best traditions, I favor work in preference citizens are so closely connected in economic interests that the to the humiliating dole. small privileged group that has been destroying our system of com merce and trade by their greed and cupidity and by their huge FARM CREDIT ACT OF 1935 profits, large salaries, and large dividends always bend every pos sible effort to drive a wedge between the farmer and the wage The Senate resumed the consideration of the bill Florida [Mr. FLETCHER], that perhaps there In other words, I want these farmers to remember that 144,000 will be no serious objection to the vote being reconsidered people, who were not farmers and who were not wage earners, and my amendment being adopted. I do not want to take up received more income in 1929 than 47,000,000 people, composed of the time of the Senate, but I think, after looking into the farmers and wage earners and small-salaried employees. It is this one-tenth of 1 percent and their propagandists and matter, that the Senator from Florida will not see any serious satellites who seek to make you farmers believe that it is to your obstacle in the way of adopting the amendment. 1935 CONGRESSIONAL RECORD-SENATE 1717 Mr. POPE. Mr. President-- Mr. FLETCHER. Mr. President, the situation is that the The VICE PRESIDENT. Does the Senator from Louisi Senator from Louisiana [Mr. LONG] offered an amendment ana yield to the Senator from Idaho? to the committee amendment. His amendment to the com Mr. LONG. I yield. mittee amendment was agreed to. Then the question came Mr. POPE. I ask that the clerk state the amendment on the adoption of the committee amendment as amended. submitted by the Senator from. Louisiana. That was the last question on which we voted, and the Vice The VICE PRESIDENT. The clerk will state the amend President declared the committee amendment as amended ment. was rejected. The CHIEF CLERK. It is proposed by Mr. LONG, on page 3, The VICE PRESIDENT. Let the Chair state to the Sena line 10, after the word " engaged '', to strike· out the comma tor from Florida his understanding of the parliamentary and insert a p~riod, and to strike out the following words: situation. The Senate has rejected the committee amend And (B) unless the owners of at least 75 percent in value and ment as amended. There is now no amendment pending. number of shares of the stock of the corporation assume persona.I Mr. CONNALLY. Mr. President, a parliamentary inquiry. liability for the loan: P~ovided, That no. The VICE PRESIDENT. The Senator will state it. And insert at that place " No " with a capital " N." Mr. CONNALLY. Yesterday the junior Senator from Mr. LONG. In other words, what that means is that there Texas, myself, offered an amendment to strike out all of will be no more liability on individual farmers than there is paragraph (c). It was not voted on at the time because on each individual ::;tockholder of any other corporation. a perfecting amendment, which was the committee amend That is the purpose of the amendment. ment, had precedence. The VICE PRESIDENT. The question is on agreeing to The VICE PRESIDENT. The Chair was not informed the motion of the Senator from Louisiana to reconsider the about that. If that be the case, then the question would be vote by which his amendment was rejected. on the motion of the Senator from Texas to strike out The motion was agreed to. paragraph (c) on page 2. Mr. FLETCHER. Mr. President, a bill previously passed Mr. LONG. Mr. President, I want to submit a motion to by the Senate requires personal liability in other instances, reconsider the vote by which the committee amendment was but the whole amendment is not so vital, in my opinion, and rejected. therefore I shall interpose no objection. The VICE PRESIDENT. The Senator from Wyoming [Mr. The VICE PRESIDENT. The question. is on agreeing to CAREY] has the floor. Does he yield for that purpose? the amendment of the Senator from Louisiana to the amend Mr. CAREY. I should like to ask the Senator from Texas ment of the committee. if he will first permit me to offer an amendment modifying Mr. McNARY. Mr. President, is this a modification of the · paragraph Cc)? amendment offered by the committee? Mr. CONNALLY. That would be in order, I believe. The VICE PRESIDENT. This is an amendment to the The VICE PRESIDENT. Does the Senator from Wyoming committee amendment. desire to amend the committee amendment? Mr. McNARY. The committee amendment as proposed by Mr. CAREY. I want to offer a substitute for the matter the senior Senator from Wyoming [Mr. CAREY]? stricken out. The VICE PRESIDENT. It was reported by the com The VICE PRESIDENT. That would be an amendment to mittee. the paragraph: An amendment to the paragraph is now in Mr. McNARY. I .appreciate that, but it has been so iden order, but -an amendment to the committee amendment is tified as the proposal of the senior Senator from Wyoming. not in order, because the committee amendment as amended I wish to ask the Senator from Louisiana if his amendment has been rejected and is out of the bill. is acceptable to the chairman of the committee? Mr. CAREY. I desire to offer the following amendment in Mr. LONG. Mr. President, I understand there ts no objec the nature of a substitute for paragraph (c): I shall have to tion on the part of the Senator from Florida. I have dis read it myself, as it is not written out in full. cussed it with him. I cannot see that it should be objection I propose so to amend paragraph (c) that it shall read as able to anyone favoring the committee amendment. follows: Mr. CAREY. Mr. President, I have co11Sulted with the Such section 32, as amended, is further a.mended by striking chairman of the committee and I think there is no objection out the seventh sentence and inserting in Heu thereof the fol to accepting the amendment of the Senator from Louisiana. lowing: "As used in this section, ( 1) the term ' farmer • means any person who is at the time, or shortly to become, bona fide engaged The VICE PRESIDENT. · Th~ question is on agreeing to in farming operations, either personally or through an agent or the amendment of the Senator from Louisiana to the amend tenant, and the principal part of whose income is derived from ment of the committee. farming operations, and includes a personal representative of a The amendment to the amendment was agreed to. deceased farmer; (2) the term 'person• includes an individual or corporation engaged in the raising of livestock; and (3) the term The VICE PRESIDENT. The question now is on agreeing 'corporation' includes any incorporated association, but no such to the committee amendment as amended. loan shall be made to a corporation unless all the stock of the The amendment as amended was rejected. corporation is owned by individuals themselves personally actually engaged in the raising of livestock on the land to be mortgaged as The VICE PRESIDENT. That completes the committee security for the loan, except in a case where the Land Bank Com amendments. missioner permits the loan if at least 75 percent in value and a Mr. LONG. Mr. President, we are proceeding here pretty number of shares of the stock of the corporation is owned by the fast. Let us understand just what has been done. individuals personally actually so engaged. The VICE PRESIDENT. The question was distinctly put The purpose of the amendment is to confine corporate by the Chair. The question was on agreeing to the commit loans entirely to those who are engaged in the production of tee amendment as amended; the noes prevailed, and the livestock~ · It also provides that the members of the corpora Chair so announced. tion must individually be actually engaged ui the livestock Mr. WHEELER obtained the floor. business. Mr. CAREY. Mr. President-- The VICE PRESIDENT. Let the Chair make a statement Mr. WHEELER. I yield to the Senator from Wyoming, as to the parliamentary situation. The Chair stated a mo who desires to offer an amendment. ment ago that the pending question before the Senate is the Mr. CAREY. Mr. President, I desire to offer an amend motion of the Senator from Texas [Mr. CONNALLY] to strike ment. out paragraph (c). The parliamentary clerk calls the atten Mr. CONNALLY. Mr. President, my understanding is tion of the Chair to the fact that the Senator from Texas that the pending question is ·an amend.merit to strike out the never was permitted to offer his amendment, because the remainder of the section. Is not that the case? Senator from Wyoming [Mr. CAREY] did not yield for that The VICE PRESIDENT. The Chair has not examined the purpose. The only question pending before the Senate now RECORD. is the amendment of the Senator f1·om Wyoming to para- 1718 CONGRESSIONAL RECORD-SENATE FEBRUARY 8 graph (c). The clerk will report the amendment proposed committee. If we are not, however, unless there is some by the Senator from Wyoming. change in the positions of Senators, if there is not to be any The CHIEF CLERK. It is proposed, on page 2, line 25, after particular argument over this amendment of the Senator the word " farmer ", to insert: from Wyoming, I shall have no more to say; but if there is (2) The term "person" includes an individual or c~;poration to be any argument over his amendment, I think we ought engaged in the raising of livestock; and (3) the term corpora to go back and move to reconsider the whole thing and tion" includes any incorporated association, but no such loan have it out. shall be made to a corporation unless all the stock of the cor poration is owned by individuals themselves personally actually Mr. VANDENBERG. Mr. President, will the Senator engaged in the raising of livestock on the land to be mortgaged as yield? security for the loan, except in a case where the Land Bank Com The PRESIDING OFFICER. Does the Senator from missioner permits the loan if at least 75 percent in value and Louisiana yield to the Senator from Michigan? number of shares of the stock of the corporat ion is owned by the individuals personally actually so engaged. , Mr. LONG. I do. Mr. VANDENBERG. I think the Senator's original posi Mr. CAREY. Mr. President, I have stated-but I do not tion was the sound one. If this is rational, logical relief know that Members of the Senate clearly understand-that for the incorporated livestock farmer, it is equally logical the amendment would apply strictly to those who are in the for the incorporated orchardists in Michigan or the incor livestock business also the stockholders in a corporation must porated farmer in Louisiana. It seems to me the Senator be devoting all their time to that business. Under this pro from Louisiana-is correct. If anything of this sort is to be vision it would not be possible for a corporation whose stock done, we should return and do it equitably for all concerned. holders are living away from their ranches or farms to Mr. LONG. I feel this way about it: The Senator from borrow. Michigan is absolutely right, and that is my position; but As I have stated several times, in the Western States most perhaps the Senate is not willing to place all farmers on the of the livestock men are incorporated and carry on their same basis as other people. If we cannot do that, I should business in that form. like at least to give the cattle raisers fair consideration. These corporations in most instances are not large cor It seems that when the Senate decides that it is no longer porations. Many of them are made up of the members of a fair to discriminate between a farmer and a railroad, when family, perhaps a father and his son, or one or two brothers. it comes to lending the Government's money, the thing to These are not corporations that have sold stock all over the do then is to strike it all out of the bill. country. The money of these corporations is money that In other words, Senators disagreed with my position yes· these men earned in the business or money that they may terday, and said I was not right about it; and this morning have been able to borrow from their local banks. Further they all agreed that I was right, and then they struck the than this they are not selling stock throughout the country whole thing out of the bill after agreeing that I was right. to people: They are not in the same class as these big co~ [Laughter.] That sort of thing leaves a man where he does porations that people fear or that have robbed the public not know what kind of ground he is standing on. One through the issuance of worthless securities. time he is right, the next time he is wrong, and then every I feel that these men who are strhggling to maintain their body says he is right; and then they strike the whole thing industry in the Western States, who are fighting blizzards or out of the bill just because he was right. droughts, are trying to develop a new country, are entitle~ to Mr. LOGA.l'f. Mr. President, will the Senator yield? the same consideration from the Congress of the Umted Mr. LONG. I yield to the Senator from Kentucky. States as a railroad or an insurance company or other com Mr. LOGAN. If the newspaper reports be true, the Sen panies I might mention which are permitted to borrow. ator from Louisiana must have been right yesterday, be The livestock men are in a desperate condition. They have cause it is said that he made a speech on both sides of the had to borrow on their livestock in some instances more than question. [Laughter.] it is worth. If they can get a loan on their land they will Mr. LONG. Yes; that is what the newspapers said, and if have a long time in which to repay it, instead of having to the Senator from Kentucky continues to take the news meet short-time paper or obligations which they cannot meet. papers as his bible of instruction he will remain in this It will enable them to get through this emergency. bewildered state. [Laughter .J I appeal to Senators who have been opposing the original The facts are these, however, as I undertook to present amendment to support this amendment in the form in which them to the cultured minds of Senators: You see, Mr. ~es it has been modified, because I know it cannot bring about ident, it is always difficult to ma.ke the learned mind under· absentee landlordism or the acquisition of large bodies of stand plain gospel. I am not able to dilute it and then put land by corporations, but will be the salvation to the livestock it in such tangled condition that it will pass through the industry. measures and eurves of the legalistic and legislative frame Mr. VANDENBERG. Mr. President, will the Senator of mind. For that reason it took a long time for me to yield? convince the Members of the Senate yesterday that what I The PRESIDING OFFICER (Mr. CLARK in the chair). was asking the Senate to do was merely to let the farmer Does the Senator from Wyoming yield to the Senator from borrow money in the same shape, manner, and form that we Michigan? are letting everybody else borrow money today. Mr. CAREY. I do. In other words, we lend the Government's money now Mr. VANDENBERG. May I ask if this amendment ex only to corporations. We do not lend individuals any money cludes incorporated orchardists? to amount to anything. The little money we are talking_ Mr. CAREY. It does exclude them. about lending in this bill is mere chicken feed compared to Mr. LONG. Mr. President, I am for the Senator's amend the amount of money we have been lending. We have been ment. The fact of the case is, if that is all we can get, I saying to the banks, "If you have a bunch of people who shall not raise any particular quarrel about it. In other want to get hold of some of the Government's money. words, I am for the amendment if that is all we can get. organize a trading corporation or a development corporation I think the Senate took very ill-advised action, after we and come up here and get the Government's money; and in had perfected this other amendment to the point where it case your scheme does not work out, nobody will be per was really a farmers' amendment, in striking it out of sonally liable for a dime of the money that the business the bill. I think that was very unwise. The arguments made borrows and cannot pay back to the Government." and the good, cogent, sound reasons advanced should have So when I saw this bill, which looked to me like a meri prevailed, and I hoped they would prevail; but, naturally, torious measure, I came in here and proposed to strike out there are always some people who do not see matters as we the clause which said that a farmer organizing his busi do, and never will, we are afraid. ness into a corporation, to borrow money, must subscribe for Mr. President, I was hoping we would be able to put this the indebtedness of that corporation, di:ff erently from the whole amendment back in the bill as it came out of the treatment that had been accorded to other corporations, I 1935 CONGRESSIONAL RECORD-SENATE 1719 moved to strike out that distinction which had been made way of loans for the time the work has been going on; so against farmers, and. this morning it was stricken out. In what we want to try to do now is to get a little relief for other words, everybody thought there was no sound, logical farmers. reason why a corporation that did not hold its members I know some loans have been made down in Louisiana. A liable generally should be changed to hold farmers liable few loans have been made down there. Most of those loans because it was a farmers' concern. have been made, however, to big cane plantations that did Now we are back at the same place where we started out not have any business with those loans in the first place yesterday. The whole thing has been struck out of the bill. people who were working their laborers for 65 and 75 cents Why? For the simple reason which I am about to state. a day. If they had a good crop and a good market, the poor Senators may not know this, but if they had as much time .old laborer stayed in overalls, and the man owning the to think this matter over as they had to think over my plantation went to Europe and took himself a vacation. If amendment-in other words, if they had another night to he lost out, the Government paid the loan anyway. The think it over-I think perhaps they would come to the same Government has made that kind of loans down there on view now that they did this morning on my other amend refineries and on various and sundry other kinds of things ment. Why is it that the amendment was struck out? For where there has been no particular individual responsibility the simple reason that we have come down to the point about it. Some of the loans have been made through the where · it is proposed to allow farmers to borrow money banks. Some of them have been made through the develop through corporations just the same as all industries borrow ment associations. There has always been a way in which it today, the bi~ man could get a loan; but now, when the little That is all there is to it. The Government is going to lend farmer is about to be permitted to get a loan on the same money, and therefore we have decided that we will not per ,basis, we have to draw the line. mit it to be lent to a farmer unless he signs individually for I desire to say to the Senate that I am surprised that- this the obligation that the Government places the money in his amendment ever got into this bill. It has surprised me that hands to cover. In other words, take the case of John Smith, the farmer ever got that much consideration. I want to who desires to borrow $2,500. That is about all the·Govern compliment the Senate. Although it voted the amendment ment will ever lend to a farmer. Perhaps I should say that out this morning, I want to thank the Senate for one time a loan of $2,500 to the ordinary farmer would be a big loan. in its life having momentarily considered placing the farmer It would be bigger than anybody in my parish would get. on the same level with everybody else in borrowing money I do not believe we have a farmer in my parish who could from the Government. · borrow $2,500. I am talking about $2,500, not $25,000. All I want to say that even though we lose this amendment we want is $2,500. All we want is a little money. We do not we feel glad in our hearts for the kind of very lucid con8ider want any big money. I am not interested in these big loans. ation we have been accorded here in the Senate. It is the I should be glad to see the Senate r.eform this measure right first time since I have been here that momentarily, hap now and say that nobody can borrow more than $2,500. All hazard though it may have been, we have actually for awhile I am interested in is the little man who sits on his front considered letting the farmer borrow money on the same porch and sees the cotton and the cane and the potatoes and basis on which railroads or banks are allowed to borrow various other crops grow, from the front porch. money. Mr. FRAZIER. Mr. President, will the Senator yield? Mr. LOGAN. Mr. President, will the Senator yield? Mr. LONG. I yield to the Senator from North Dakota. Mr. LONG. I yield. Mr. FRAZIER. I should like to ask the Senator from Mr. LOGAN. I should like to ask the Senator whether it Louisiana if he knows of any farmers in his State who are would be any more difficult for a farmer to become a member organizing a corporation now? · of a corporation than it is for him to become a member of a Mr. LONG. No, sir. national farm credit association, of which the farmers must Mr. FRAZIER. I should like to ask the Senator how he become members now before they can borrow. can conceive of the ordinary, everyday small farmer getting Mr. LONG. Not a bit 'more. I think it is just as easy. into a corporation? The only thing I cannot understand in the logical minds of my colleagues is this: That we have been talking about giving Mr. LONG. That is very easy. I shall be glad to explain it relief to the lit~le man, and every one of us wants to give to my friend, because my friend is certainly one of the relief that reaches the little man; but every time we give greatest exponents of the farmers in this body, any relief to the little man, we tie him down with so many Here is how it would be done: I will tell. the Senator how millstones around his neck that before he gets through with I would do it in my State. I would say to my farmers-back the season, he has been cursed by reason of having received there, in a circular letter which I would send out to them any gratuity from the Government. We do not do that with "You have a right to organize a corporation and to borrow the individuals forming the industrial societies to which we money from the United States Government to carry on your are lending money now. We do not do that with any number business; and if you fail to make a crop, or if, after you have of them which could be mentioned. We give them the right made a crop you cannot sell it, and you go into debt, you to come here in the name of John Smith, Inc., and borrow a need not worry that the debt is. going to foIJow you. The million dollars, or $50,000,000, for a railroad. We loaned the is only thing the Government can ever take the land that Dawes bank, I think, $100,000,000, was it not? How much you have mortgaged." was it? · It is not a difficult matter to incorporate an institution. Mr. GORE. Ninety million, I think. Certain corporations can be organized in my State for ten Mr. LONG. Was it not $90,000,000 that we loaned to the or twelve dollars. That is not a big thing. Why, we pay Dawes bank? Everyone knew that was Col. Charles Gates these sharp-eyed Federal investigating lawyers more money Dawes' bank. And he was not the only banker who had to dig up an abstract than it costs to incorporate a farmer. come here and backed up the wagon and got what he wanted Talk about the expense: I am willing to venture the asser and rolled off with it. They just came here and laid the law tion that the common, ordinary farmers in my country have down and got what they wanted. They were not fooling paid more money to these two-by-four abstractors and spe around with any of this little business we are fooling with cial lawyers that the Government has had down there to now. They were doing business on a big scale-$90,000,000. investigate and pass on the loans than the amount of money Mr. Dawes could afford to borrow $90,000,000, because Mr. they have borrowed. Dawes would not be held personally liable if Mr. Dawes' bank We actually made up a list there one month to see how we could not pay back the,$90,000,000; and it could not, and it were corning out, and we found that we were paying the men will not, and they knew it would not when they let them have who had been designated by the bureaucrats here in Wash the money. They knew it was never going to pay it back. ington more money to investigate the titles and to -investi Mr. LEWIS. Mr. President, will the Senator yield? gate and approve the loans than we got out of them in the Mr. LONG. I yield. 1720 CONGRESSIONAL RECORD-SENATE FEBRUARY 8 Mr. LEWIS. It is due to the community for which I up and leave him there to struggle, and somehow or other speak, the great Chicago, as well as to the RECORD, that I make money enough to pay back the loan. If he does not inform the able Senator from Louisiana that the report pay back the loan, they not only sell his place, because no from the President of the Reconstruction Finance Corpo body is going to bid against the Federal land bank, but they ration is that the Dawes loan has now been practically, if take a deficiency judgment against the poor old farmer for not completely, paid off. the debt, which is about $2,000, and the place will sell for Mr. LONG. What does the Senator mean by " prac about $250, because nobody will bid against the Federal land tically, if not completely paid off"? bank. They take a deficiency judgment for $1, 750, and if Mr. LEWIS. What does the Senator think such words he moves over into another county they record that defi mean? It means what I am sure the Senator would indi ciency judgment over there against him, and then 10 years cate in his debate when he says he has practically and go by, and he thinks it is about to expire, and they go into completely presented his question. court and get another judgment and write it on the mortgage Mr. LONG. My understanding is that several million records for another 10 years, and as a matter of fact, the dollars have never been paid and never will be paid, and poor fellow goes to his grave weighted down, struggling that no interest will ever be paid. against the curse put on him by the United States Gov Mr. LEWIS. I am informing the Senator that the report ernment. of the Reconstruction Finance Corporation is that the debt We have finally reached the point where we could give has been paid; whether paid in cash, or paid by securities, actual constructive relief to the farmer. We could afford to or in what form, I am unable to do more than use the say to him, as I said to my people before, "I would not take exact language of the report. that loan." I have said to my friends down in Louisiana," I Mr. LONG. I believe they did bring a suit against the would not take that loan if I were you, because the chances stockholders of the bank the other day. are that when summer comes you are going to be worse off Mr. LEWIS. I understand two suits were brought by the than if you had never had that loan. Then they are going State and others in order to force the stockholders to to sell your place out and take a deficiency judgment against respond to the stock for which they have not paid. you, and you will have that thing hanging around your neck Mr. LONG. I will be happy if it has been paid. the balance of your lifetime. It ·makes no difference where Mr. LEWIS. I merely rose to say that the report is that you go, you are going to have a judgment recorded against the debt has ?.ieen paid, and I was anxious, for the credit you, and you cannot get a job and you cannot buy anything of my community, that the statement that $90,000,000 taken because of the judgment. There is no way of canceling it, from the Treasury would never be repaid should not stand and a moratorium cannot be granted against it." without answer. Therefore we came along accidentally-I must say this Mr. LONG. I did not make that statement. thing came here through accident-we came along here acci Mr. LEWIS. I feared that was the object of the Senator. dentally and made provision for the farmer to borrow money Mr. LONG. No; I said Dawes would not have come here so that they could not record a deficiency judgment against and borrowed that $90,000,000 if he had been personally him. I say that accidentally this morning through the first liable for it. I am not talking about Dawes particularly. accident, and this morning through the second accident, we He is a good man'. I know General Dawes. He is a good managed to reform the amendment coming from the ~enate man. He was the most decent man in the public-utility in such a manner that a farmer would be allowed to borrow business I ever knew in my life. I used to regulate his money so that the United States Federal land bank would companies when I was on the public-utilities commission not be allowed to take a deficiency judgment against him if in Louisiana. He is not the only man who has ever done he were not able to pay the loan. We managed to put that what he did. I would have done the same thing if I had into the measure just before they struck it out. been in Dawes' fix, or if my bank had been. As a matter Mr. President, I think this- amendment we have here does of fact, I did come up and help them get some of that not cover the situation. I do not think it is right. I am money myself two or three times. [Laughter.] Some of going to vote for this if it is all we can get; I will vote to help it has not been paid back, and some of it never will be paid the cattle farmer. But I do not think this amendment does back, I am afraid. justice in the matter. I think we ought to allow these farm Mr. LEWIS. Mr. President, will the Senator yield ers the right to borrow money through these corporations, further? just as the Senator from Kentucky says, just as easily as they Mr. LONG. I yield. can borrow through the credit corporation. We ought to Mr. LEWIS. Has that part wpich the Senator helped allow these men to borrow money through these corporations, Mr. Dawes get been paid back? but ought not to adopt anything here that shuts them off Mr. LONG. I did not help Mr. Dawes get his. from doing it. Mr. LEWIS. I so understood the Senator. Perhaps the whole bill ought to be killed. I would not care Mr. LONG. No; but I helped some of them get money, if you killed all these lending agencies today. If you were not and I doubt whether it has been paid back, and I helped going to treat justly the little farmer back in Louisiana who some of them get money which I doubt ever will be paid. I is a friend of mine, I would not want any of this legislation. will cast that stone at myself, not ask any other Senator to It never has been operated straight. · It has been a crooked do the same thing, but if any of them will get up and teµ business from start to finish down in my country most of the the truth, they will all admit the same that I say. [Laugh time it has been run. I have offered the evidence here in the ter.] United States Senate on these various matters, which Sen At any rate, we let these gentlemen come here for money, ators who care to read can peruse again. and they came. I used Dawes just for one example. He They have discriminated in th~ making of these loans to came and asked to borrow $90,000,000 because he knew that suit themselves. They have let people have the money they if he should not be able to pay back the $90,000,000, he wanted to have it, and they have not let the people have would not be individually responsible or held liable for the the money whom they did not want to have it. Sometimes $90,000,000. But if you lend a farmer any Government they have enforced a mortgage -against one man, and an money, you tie it up; you give these Federal land bank agents other man with a little political power has managed to get the right to take any other collateral and security they can his suspended. One man they would take a deficiency judg get, and by the time they get through, they take a mortgage ment against, and another man they would make some kind on the place and a lien on all he is going to raise in the of a trade with so that there would not be any deficiency summer, and aJso the various and sundry other things which judgment taken. may come to the farmer's account, such as chicken sales The whole thing has been enforced in a way that has been and sales of hides that may come from cattle that die be a curse to the farmers in my section of the country ever cause he has not feed enough to keep them alive, and such since it has been on the statute books, and I am sorry Con things; they tie everything up with a wet blanket and sew it gress ever passed a law establishing the Federal land bank. 1935 CONGRESSIONAL RECORD-SENATE 1721 It has been a curse to my people from the day it was voted. Mr. LONG. Mr. President, a point of order. Certainly I wish none of these things had been passed if they are to be the Senator can withdraw his amendment and reoffer it. worked as they have been in the past, as far as I have had The PRESIDING' OFFICER. The Chair did not mean to any knowledge of them. intimate that the Senator had no right to withdraw his However, if Congress is going to pass any bill providing amendment, but if he withdraws his amendment there will for the lending of any money to farmers, which this bill then be nothing pending except the question of the engross contemplates doing, and which I should like to see passed, if ment and third reading of the bill. in it are included the proper amendments which I think Mr. CAREY. Can I reoffer the amendment? ought to go into this bill, the matter of deficiency judgments The PRESIDING OFFICER. Oh, yes; the Senator can re should be considered. I am trying to have the farmer given a offer his amendment. chance to borrow without having a threat of a deficiency Mr. CAREY. Then I will temporarily withdraw the amend judgment hanging over his head the day that he borrows the ment. money. Mr. LONG. Mr. President, I move that the Senate recon I do not think we ought to vote on this amendment first. sider the vote by which it disagreed to the committee amend I think my friend, the Senator from Wyoming [Mr. CAREY] ment as amended, beginning on page 2, line 25. ought temporarily to withdraw his motion, and let us move The PRESIDING OFFICER. The question is on the mo to reconsider the vote by which the Senate struck the other tion of the Senator from Louisiana to reconsider the vote by amendment out of the bill. I do not believe all the Members which the Senate disagreed to the committee amendment as of the Senate thought for a minute that there was any danger amended, beginning on page 2, line 25. of striking that amendment out of the bill when they did it Mr. LONG. Now, Mr. President, I desire to state the posi about 20 or 30 minutes ago. I do not believe the majority of tion we are now in, from a parliamentary standpoint, on this the sentiment of the Senate would be to strike that amend amendment. We are now considering again the amendment ment out of the bill. I do not believe so. Perhaps it would as amended; and I want to read to Senators the amendment be the sentiment of the Senate to do so. I may be wrong we are now considering. about that. Mr. FLETCHER. Mr. President, was the motion of the Mr. CAREY. Mr. President- Senator from Louisiana put? The PRESIDING OFFICER (Mr. CLARK in the chair). Mr. LONG. No; the Presiding Officer has not put the mo Does the Senator from Louisiana yield to the Senator from tion yet, but I do not want to lose my position. I want to Wyoming? speak on the subject. I have made the motion to reconsider. Mr. LONG. I yield. I read the amendment, "the term 'person' "-this is what Mr. CAREY. Just what was the Senator's amendment? was stricken out a minute ago-" the term ' person ' includes Mr. LONG. We took the amendment which the Senator an individual or a corporation; and the term 'corporation' already had in the bill and we struck out the personal lia includes any incorporated association, but no such loan shall bility of farmers for corporation debts. be made to a corporation unless the persons "-and we Mr. CAREY. That is not included in the pending amend amended that so they had to be persons actually engaged, ment. not in operation, but in cultivating a farm or raising live Mr. LONG. No. After my amendment had been adopted, stock. That is how strong we went. In other words, we which left the Senate amendment just as it came from the simply provided by law that the man who followed the plow committee, except that a man was not held individually liable would have the same right to incorporate his business, or in for the farm corporation's debt, after adopting my amend corporate the business of three or four neighbors with him, ment to do away with personal liability, then when I turned and borrow money from the Federal land bank, and not be around to start to go out and get a drink of water the Senate subjected to a deficiency judgment or a personal liability, as struck out the whole amendment and left nothing. If I had any other man or concern that is borrowing money today. known they were going to do that I can say to the Senate that How do the grape growers of California borrow money? it would have taken more time to do it. I thought the whole The grape growers do not come here and borrow individually. :fight was over. I did not think they were going to do any They come here through the California Fruit Exchange, if thing like that, and I will say that it would have taken a they come at all. How do real-estate concerns borrow little while longer than it took to get that amendment out money? Do they come here in the name of the real-est.ate of the bill if I had known that that was what Senators agent? The chances are that they come here in the name were fixing to do. of real-estate corporations, or they come here through a So what I think we should do is this: We are in no hurry bank, or, perhaps, a bank in liquidation, and they borrow about this business. We have nothing to do and nowhere money for the various purposes that they want from the to go. What I think we ought to do is just to withdraw Government, if they stand in pretty well-and it always this amendment. I suggest to the Senator that he withdraw helps, if we stand in well, in getting the money. I can tell his amendment. I ask my friend from Wyoming if he will Senators that the better you stand in with the Government, withdraw just temporarily his amendment which he has just the better chance you have for getting money for your client. offered, and let us go to the bat here on a reconsideration That goes in the Government business, naturally. But when of the vote by which the Senate struck out the committee a man comes here and gets the money, he is not personally amendment, and we will have a "hot time in the old town to liable if he cannot pay it back at the end of the year. The night" before they cut this thing out. We have not started only thing the Government can do is to take a judgment from taw yet on this thing. If one is right, both of them against the corporation, and if the corporation has not the are right. money to pay it they can take it out of the assets that the Mr. CAREY. Mr. President, a parliamentary inquiry. corporation has mortgaged to them for the loan. That is The PRESIDING OFFICER. The Senator from Wyoming the only harm that can be done; and if the Government will state it. cannot get the money out of the collateral, the Government Mr. CAREY. If I withdraw the amendment temporarily, cannot get it at all. will I have the privilege of offering it again? Mr. President, this is what is being done today, and this is Mr. LONG. Oh, yes. what will be done under the provisions of the bill if the The PRESIDING OFFICER. If the Senator withdraws amendment does not stay in the bill. If a farmer borrows the pending amendment in the nature of a substitute for $2,500, the Government officials take a mortgage from that paragraph (c) of section 2 the next proceeding will be the farmer; and when the loan comes due, and the farmer does engrossment and third reading of the bill. not pay off the mortgage, they put up his place for sale, and Mr. CAREY. Then I cannot withdraw the amendment. they go out there and bid it in without the benefit of ap Mr. LONG. Do I understand that the Senator from Wyo praisement. They bid it in without the benefit of appraise ming withdraws his amendment? ment, and they bid just what they please for the property. Mr. CAREY. No; I cannot withdraw the amendment. They bid it in for just what they want to pay for the prop- 1722 CONGRESSIONAL RECORD-SENATE FEBRUARY & erty. They bid in for $100 property that is covered by a Schall Steiwer Truman Walsh Schwellenbach Thomas, Okla. Tydings Wheeler $2,000 mortgage, and then they take a deficiency judgment Sheppard Thomas, Utah Vandenberg White against the farmer for $1,900 and put that on the record; Shipstead Townsend Van Nuys and if the farmer raises a bale of cotton, or if he buys a Smith Trammell Wagner cow, they come out and seize the cotton or the cow; or, if Mr. LEWIS. I reannounce the absence of certain Sena some friend of his sends him down a couple of yearlings, tors as announced by me on the previous roll call. they go and seize the yearlings. They keep that mortgage The PRESIDING OFFICER. Ninety Senators have an and that judgment of record for years and years, and 95 swered to their names. A quorum is present. The question percent of the farmers who borrow go to their graves with is on the motion of the Senator from Louisiana [Mr. LoNG] that Federal land-bank deficiency judgment hanging over to reconsider the vote by which the committee amendment, them that they worked a lifetime trying to pay, and never as amended, was rejected. did pay. The motion to reconsider was rejected. Those are not mere tinkling cymbals and illustrations. Mr. CAREY. Mr. President, I desire to offer an amend Those are positive, actual facts. We would do better never ment. to pass another bill providing for lending the farmer an The PRESIDING OFFICER. The Senator from Wyoming other 5-cent piece of Government money unless we do away proposes an amendment, which the clerk will report. · with this right of the Government to levY a deficiency The CHIEF CLERK. On page 2, it is proposed to strike out judgment for the unpaid balance. I have seen those little after line 16 all down to and including line 16, on page 3, farmers-and they are the only farmers I care anything and in lieu thereof to insert the fallowing: about; the only farmers I care anything about are the little ( c) Such section 32, as amended, is further amended by striking farmers back there in the country who follow the plow out the seventh sentence and inserting in lieu thereof the follow ing: "As used in this section, (1) the term 'farmer' means any and work for their families from sunup to sundown, when person who is at the time, or shortly to become, bona fide engaged they can get any work to do-I have seen those farmers in in farming operations. either personally or through an agent or one parish in Louisiana forced into the hands of the courts; tenant, or the principal part of whose income is derived from farming operations or livestock growing and includes a personal I have seen their places sold out from under them, and I representative of a deceased farmer; (2) the term •person' in have gone out and hunted up some of them a job, and I have cludes an individual or a corporation engaged in the raising of seen their wages garnisheed under judgment, after they have livestock; and (3) the term ' corporation ' includes any incor left and given up the farm into the hands of these concerns, porated association, but no such loan shall be made to a corpora tion unless all the stock of the corporation is owned by individuals or maybe these boards and commissions to which they had themselves personally actually engaged in the raising of livestock mortgaged their lands. on the land to be mortgaged as security for the loan, except in a We want to get rid of the deficiency judgments. That is case where the land bank commissioner permits the loan if at least 75 percent in value and number of shares of the stock of what I am trying to do now. Perhaps other Senators would the corporation is owned by the individuals personally and actu provide for this in a little different way. I will provide for ally so engaged. No loan shall be made to any corporation which it in a way that my friend from Alabama suggested the is a subsidiary of, or affiliated (either directly or through substan tial identity of stock ownership) with, a corporation ineligible to other day. procure a loan in the amount applied for." If Senators do not want the corporation fiction, let us put in the bill a provision that there shall be no deficiency judg The PRESIDING oFFiCER. The question is on the ments against the farmers. Let us put in the bill a pro amendment offered by the Senator from Wyoming [Mr. vision that we will have no deficiency judgments against the CAREY] in the nature of a substitute for the committee farmers. The Senator from Alabama suggested that the amendment. other day. If Senators do not like this system of letting Mr. CAREY. Mr. President, on the amendment I ask for the farmers borrow through corporations-and that seems the yeas and nays. to be the preferred system-let us write in here that there Mr. GORE. Mr. President, I should like to know what shall be no such a thing as deficiency judgments, or let us the " bug under the chip " is in this amendment. I do not do something to place these men borrowing money as farm understand it from the reading. I mean no improper im ers on the same basis as industry and business in borrowing plication by that term; but we have just defeated an effort money. to open the lending agencies of the Government to incor Mr. President, before we vote down this proposal, if we porated farming. Does this propose to do the same thing? vote it down, I want every Senator to understand just what Mr. CAREY. Mr. President, this amendment would per he is voting for. I want him to understand that he is voting mit loans only to those engaged in the growing of livestock; to place a deficiency judgment against the farmer on any it is confined to corporations engaged in that kind of busi loan he makes from the Government, and that it is the ness, but the amendment further makes it necessary that, only deficiency judgment the Government takes against any in order to borrow, the stockholders of the corporation must individual to whom it lends money of this kind, so far as I individually and actually themselves be engaged in the busi know. I do not think we lend money to any individuals ness. It does not permit outside landlordism, as has been except farmers. I think that is about all. With regard to suggested might be possible under a system of loans to cor any other concern that borrows money, there is no such porations. I have offered the amendment to take care of thing as a deficiency judgment or an individual liability the situation that exists in the West, and, as I have said, it pursuing the borrower. is confined entirely to those engaged in the livestock busi I suggest the absence of a quorum. ness. The PRESIDING OFFICER. The clerk will call the roll. Mr. GORE. Mr. President, this amendment is typical of The Chief Clerk called the roll, and the following Senators this entire campaign to extend the lending facilities of the answered to their names: Government to one class after another, to one group after Adams Capper Gibson McKellar another. The Senate has just defeated-and I think wisely Ashurst Caraway Glass McNary the committee amendment designed to permit the lending Austin Carey Goi:e Maloney Bachman Clark Hale Metcalf agencies of the Government to lend money to incorporated Balley Connally Harrison Minton farming. We have just protected the individual farmer, as Bankhead Coolidge Hastings Moore Barbour Copeland Hatch Murphy I see it, against "Farmer Frankenstein, Inc.", but imme Barkley Costigan Hayden Murray diately he rises from the dust. We have just scotched the Bllbo Couzens Johnson Neely big serpent at the gate of the garden, and here comes a Black Cutting King Norbeck Bone Davis La Follette Norris little serpent wriggling in, slithering in, knowing full well Borah Dieterich Lewis Nye that he can attain complete development once he has en Brown Donahey Logan O'Mahoney Bulkley Duffy Lonergan Pope tered the for bidden ground. Bulow Fletcher Long Radcliffe The Senator from Michigan [Mr. VANDENBERG] a few min Burke Frazier McAdoo Reynolds utes ago made an unanswerable argument upon this point. Byrd George Mc Carran Robinson Byrnes Gerry McGill Russell He made the common argument; he made the invariable 1935 CONGRESSIONAL RECORD-SENATE 1723
~rgument; he made the universal argument that if incor The PRESIDING OFFICER. The clerk will call the roll. porated cattle growers are entitled to borrow money from The legislative clerk called the roll, and the following their Government on the security of their land, there is no Senators answered to their names: reason why the same privilege-I will not say "right" Adams Connally Lewis Reynolds should not be extended to incorporated fruit growers in A tistin Costigan Logan Robinson Bachman Couzens Lonergan Russell his State, to those who have orcha-rds in Michigan. He Bailey Cutting Long Schall says if the Government lends money to cattlemen, and Bankhead Davis McAdoo Schwellenbach cattlemen are not to be favored children of the common Barbour Dieterich McCarran Sheppard Barkley Donahey McGill Shipstead Government, then there is no reason why the Goyernment Bilbo Duify McKellar Smith should not lend money to incorporated sugar growers in Black Fletcher McNary Steiwer the State of Louisiana, pampering, I suppose, the _source Borah Frazier Maloney. Thomas, Utah Brown George Metcalf Townsend where the Sugar Trust rises, making pet children of them. Bulkley Gerry Minton Trammell Mr. President, there is not any reason why, if the Gov Bulow Gibson Moore Truman Burke Glass Murphy Tydings ernment lends money to incorporated cattle growers, it Byrd Gore Murray Vandenberg should refuse loans to incorporated fruit growers or to in Byrnes Hale Neely VanNuys corporated sugar growers or to incorporated peanut growers Capper Ha.rrtson Nye Wagner Caraway Hastings O'Mahoney Wheeler or to incorporated squash growers. There is not any place Carey Hatch Pope White to stop when once we start. Clark King Radcliffe That is the reason why I have opposed any such scheme Mr. LEWIS. I merely reannounce the absences and the of legislation. So long as the Government adopts justice as reasons for the same as given by me on a previous quorum its standard as a standard for the treatment of its citizens, call. · it has a fixed rule of conduct treating each and every citi The PRESIDING OFFICER. Seventy-nine Senators hav zen alike. What is better still, what is infinitely better, there ing answered to their names, a quorum is present. is a place where the Government can say " no " so long as The question is on the amendment of the Senator from its rule is justice. When any citizen asks more than justice Wyoming [Mr. CAREY], in the nature of a substitute for there the Government should say "no", and when it has paragraph (c) of section 2. [Putting the question.] By the justice as its standard there the Government can say " no." sound the ayes seeni to have it. _ It can extend equal rights to all citizens. The Government Mr. CONNALLY. I call for the yeas and nays. cannot in the nature of things extend equal privileges to all; The yeas and nays were ordered, and the legislative clerk it cannot extend equal favors to all. A favor is unavailing called the roll. if it is visited alike upon every applicant. Mr. BARKLEY (after having voted in the affirmative). I When the Government grants a favor to one group, how have a general pair with the Senator from Iowa [Mr. DicK can it say " nay " to apply to another group? Group A makes .rnsoNJ. I understand that on this question he would vote as application for a loan and obtains it, makes application to I have voted, and that he bas a special pair on the question; secure legislation authorizing the Government to make loans so I will permit my vote to stand. to its particular members. Group B makes application for Mr. KING. I have a special pair on this question with the same favor. The Government_undertakes to say "no" the Senator froll) Iowa [Mr. Dic~soNJ, and therefore with to group B, saying that group A :q.ad a just cause, had a good hold my vote. claim, and was entitled to a favor at the hands of its Gov Mr. LEWIS. I announce a pair between the Senator from ernment. New Hampshire [Mr. KEYES] and the Senator from Nevada Mr. President, equality is a philooophy in this country. It [Mr. PITTMAN]. is a tenet in our political creed. We do not always practice I also announce that the Senator from Arizona [Mr. it, but we always profess it. When we adopt this amend ASHURST], the Senator from Washington [Mr. BONE], the ment authorizing the Government to lend money to incorpo Senator from Massachusetts [Mr. CooLIDGE]. the Senator rated cattlemen we cannot say " no " to incorparated fruit from Pennsylvania [Mr. GUFFEY], the Senator from Arizona men, incorporated peanut men, or anybody else incorporated. [Mr. HAYDEN], the Senator from California [Mr. McADool, They have votes, too. I say to the Senator from Michigan the Senator from Nevada [Mr. PITTMAN], the Senator from that he may well possess his soul in peace if we adopt this Oklahoma [Mr. THoMAsl, and the Senator from Massachu amendment. His time is coming. If this amendment wins, setts [Mr. WALSH] are necessarily detained from the Senate his amendment will win in the next session. We cannot stop on official bU.Siiless. · · - this business. I also desire to announce that the Senator from Louisiana Incorporated farming was attempted in Kansas. A corpo [Mr. OVERTON] is detained on account of illness. ration secured a large tract of land. It farmed the land with The result was announced-yeas 45, nays 33, as fallows: tractors and machinery. A few days in the fall it sowed with YEAS-45 machinery drawn by tractors. For a few days in the sum Adams Davis Metcalf Steiwer mer it harvested with machinery drawn by tractors. It had Austin Donahey Minton Thomas, Utah a few bunk houses and a few transient helpers to operate the Barbour Fletcher Moore Townsend Barkley Gibson Murray Trammell tractors and the machinery. They came like birds of passage Borah Hale Neely Truman and they went like birds of passage. They builded no nests Bulkley Hastings O'Mahoney Vandenberg in Kansas. They did not build up homes in Kansas. They Burke Hatch Pope Wagner Capper Logan Radcliffe Wheeler did not add to the civilization or the organized society of Caraway Long Reynolds White Kansas. They made it impossible, or would have made it Carey Mccarran Sch wellenba.ch Costigan McNary Sheppard impossible, for the dirt farmers in Kansas to compete, to Cutting Maloney Smith survive, to maintain their homes, and to maintain their NAYS-33 families. The State of Kansas did what the Senate has done Bachman Clark Glass Robinson this morning-declared against incorporated fanning, know Balley Connally Gore Russell ing that it is a competition which the individual farmer can Bankhead Copeland Harrison Schall Bilbo Couzens Lewis Shipstead not meet; that it means his extinguishment. Black Dieterich Lonergan Tydings Mr. President, that is all I have to say at this time. Brown Duffy McGill VanNuys Bulow Frazier McKellar The PRESIDING OFFICER. The question is on the Byrd George Murphy amendment offered by the Senator from Wyoming [Mr. Byrnes Gerry Nye CAREY] in the nature of a substitute for the committee NOT VOTING-17 amendment. On that question the yeas and nays have Ashurst Hayden McAdoo Thomas, Okla. been demanded. Is the demand seconded? Bone Johnson Norbeck Walsh Coolidge Keyes Norris The yeas and nays were not ordered. Dickinson King Overton Mr. McNARY. Mr. President, I suggest the absence of Guffey La Follette Pittman a quorum. So Mr. CAREY'S amendment was agreed to. 1724 CONGRESSIONAL RECORD-SENATE FEBRUARY 8 Mr. BARKLEY. Mr. President, I offer the amendment filled up with money which at least some people can borrow which I send to the desk. .at interest rates as low as 1 percent. Other people are bor The PRESIDING OFFICER. The amendment will be rowing it at 2 percent, as has just been stated to me. But stated. when the farmer. goes to borrow money at the present time, The LEGISLATIVE CLERK. It is proposed to insert the fol he has to pay 4% percent to these credit organizations. lowing after the semicolon in line 6 on page 10: All of the bonds of these farm-credit associations at the The rate of interest on any loan made upon the security of com present time are endorsed or guaranteed by the Government modities shall conform as nearly as may be practicable to the prevailing interest rate on commodity loans charged borrowers of the United States, and I am informed that they would from the Federal intermediate credit bank of the land-bank dis have no difficulty whatsoever in selling those bonds which trict in which the principal business office of the borrower is are guaranteed by the Government bearing interest at any located. · where from 2 % to 3 percent, so that there would be no The PRESIDING OFFICER. The question is on the trouble in selling the bonds. amendment offered by the Senator from Kentucky. I desire to read the statement given to me with reference Mr. BARKLEY. Mr. President, the bill takes off the min to this matter by the Washington representative of the imum limitation of 3 percent on loans made by· banks for National Grange. He states: cooperatives to cooperative farm organizations. Under the In considering the question of farm credits. the National law as it now exists the Federal intermediate credit banks Grange, at its recent annual convention, went on record as favor may make loans to cooperative farm organizations for as low ing the reduction of interest rates to farmer borrowers to the as 2 percent interest; but the banks for cooperatives, which lowest point consistent with a sound loaning policy. At the present time farm mortgages are being refinanced by we have set up for the purpose of making loans to coopera the Farm Credit Administration at 4Y2 percent. Would it not be tive associations, must charge not only the prevailing rate in well to amend the Farm Credit Act now pending so as to reduce the intermediate credit banks but 1 percent more than that. the interest rate to 3 % percent? As is well known to everybody, interest rates have been greatly So that now cooperative organizations desiring to borrow reduced in this country during recent years, and farmers should money on commodities, not on real estate, must pay 3 percent get the full benefit of this downward tendency in interest rates. interest, whereas they can go to the Federal intermediate In connection with its refunding operations ·the Treasury De credit bank and borrow the money for 2 percent. Therefore partment on Decemb.er 15, 1934, offered a large block of Govern ment bonds carrying interest of 3Ys percent, due in 1952, callable they have to split up their line of credit. In this bill we have in 1949. On April 16, 1934, an issue was offered at 3~ percent, removed that limitation; but this amendment merely pro due in 1946, callable in 1944; and in June of 1934 an issue was vides that the loans on commodities shall be made at the offered at 3 percent, due in 1948, callable in 1946. These Treasury offerings were quickly taken by the bankers of the country and prevailing rate charged by the Federal intermediate credit some of them were oversubscribed several times. banks, so that the system shall be uniform. The banks of the country at the present time are bulging with Mr. BORAH. Mr. President-- idle money which is seeking safe investment. With the Govern The PRESIDING OFFICER. Does the Senator from Ken ment standing behind farm-loan bonds to the extent that it does under present conditions, lower interest rates on farm mortgages tucky yield to the Senator from Idaho? are warranted and justified. Mr. BARKLEY. I yield to the Senator. Mr. BORAH. I should like to ask the Senator what would This is signed by Mr. Frederick Brenckman as Washing be the average rate which would likely prevail under this ton representative of the National Grange. amendment? To a similar effect I have a letter written by the Ameri Mr. BARKLEY. The rate now being paid is 2 percent, and can Farm Bureau Federation, as follows: this conforms to the commodity loans made by the bank for The American Farm Bureau Federation is now, and has been for cooperatives to cooperative organizations, and· the same rate several years, fighting to reduce interest rates on farm mortgages. The Pending. measure by Senator FLETCHER has some admirable at which they can make loans now at the intermediate credit features in it; in fact, it has nothing in it which should be de bank. leted; but the thing that the farmers are thinking about is cheaper Mr. BORAH. Then, would it be 2 percent? money, which means a lower interest rate on farm mortgages. Mr. BARKLEY. Two percent. Of course, that rate may I trust it wlll be possible that an amendment may be presented by you on the floor during the debate on this measure which wm be changed by the intermediate credit banks; but that is the reduce the interest rate below the present 4% percent per annum. rate prevailing at this time. Although I have no authority to speak for other farm organi The PRESIDING OFFICER. The question is on agreeing zations, I can speak of them, and convey to you the definite to the amendment offered by the Senator from Kentucky assurance that no farm organization is content with-the interest rate on farm mortgages which now is reqUired to be paid by all [Mr. BARKLEY]. farm debtors. The amendment was agreed to. Mr. WHEELER. Mr. President, I send an amendment to Mr. President, one of the big problems facing the debt the desk which I desire to off er. ridden farmers of this country is the question of lower inter The PRESIDING OFFICER. The clerk will state the est rates and how they are going to meet their fixed charges. amendment. Interest rates are coming down all over the United States, The LEGISLATIVE CLERK. It is proposed to add as a new and, with the help the Government of the United states has section at the end of the bill the following: given to the Federal land banks and other agencies, it seems to me that the one place where we should reduce interest (a.) The first sentence of paragraph twelfth of section 12 of the Emergency Farm Mortgage Act of 1933 is amended: rates is on the farm mortgages of the United States. (1) By striking out the words" within 2 years after such date"; I would not contend that we should reduce the rate to a (2) By striking out the figures "4Y2 " and inserting in lieu figure so low that they could not carry on, but in view of the thereof " 3 Yi "; and (3) Striking out the words" occurring within a period of 5 years, fact that the Government is able to sell these bonds at the commencing 60 days after the date this paragraph talces etiect." rate of interest I have stated, and in view of the fact that I (b) The second sentence of paragraph twelfth of section 24 of am sure the interest rate will be further lowered to at least the Emergency Farm Mortgage Act of 1933 is amended: 2 % percent, I can see no reason why at this time we should ( 1) By striking out the figure " 5 " and inserting in lieu thereof the figure " 4 "; not ask that in the refinancing of farm mortgages the rate (2) Striking out the figures "4% " and inserting in lieu thereof should be 3 % percent, instead of 4 Y2 percent. .. 3¥2." Mr. FLETCHER. Mr. President, I hope the amendment Mr. WHEELER. Mr.. President, I may say that the pur will not be agreed to. The situation is this: Under the Farm pose of this amendment is to reduce the interest rate charged Loan Act, Federal land-bank bonds are not guaranteed by by the Farm Credit Association to the farmers from 4 % to the Government, either as to principal or interest. Inter 3 % percent. Every one of the great farm organizations in mediate credit debentures are not guaranteed by the Govern the country has endorsed it, and I am introducing it at their ment. The law provides that the farmer shall pay interest request. of not less than 1 percent. It has been less than half of 1 The statement which has been made to me is to the effect percent above what the bonds issued against collective mort that at the present time the banks of the United States are gages sell for in the market. 1935 CONGRESSIONAL RECORD-SENATE 1725 The bonds are 4-percent bonds, and the rate is fixed here that iS the end of it for 30 years. The amendment would at 4% percent to the farmer, because about half of 1 percent make the Government pay the difference between 4%- and is required for the expenses of administering the system. 3%-percent interest on these loans, and that would cost the The rate now is very low, 4 % percent, and that is all tbe Government $100,000,000 a year for 5 years. farmer pays. The bonds issued against the farm mortgages The PRESIDING OFFICER. The question is on the now bear 4 percent. amendment of the Senator from Montana [Mr. WHEELER]. The proposal now is to reduce the rate which the farm Mr. WHEELER. I ask for the yeas and nays on my borrower must pay from 4 Y2 to 3 % percent. In other words, amendment. the Government would have to make up the difference. The PRESIDING OFFICER. The Senator from Montana Somebody would have to do it. It would not come from the asks for the :-eas and nays. Is the request seconded? proceeds of the bonds. It would have to come from the Gov The yeas and nays were not ordered. ernment. That would mean that the Government of the Mr. WHEELER. I suggest the absence of a quorum. United States would have to pay a hundred million dollars a The PRESIDING OFFICER. The clerk will call the roll. year for 5 years out of its pocket to take care of this interest. The legislative clerk called the roll, and the following Sen.. Of course, it is out of the question. It cannot be done. a tors answered to their names: The only mortgages guaranteed by the Government with re Adams Clark King Pope spect to principal and interest, under the Credit Administra Austin Connally Logan Radcli.tre Bachman Copeland Lonergan Robinson tion, are the mortgages issued by the Federal Farm Loan Bankhead Costigan Long Russell Mortgage Corporation. Those bonds are guaranteed by the Barbour Couzens McCarran Schall $2,- Barkley Cutting McGill Schwellenbach Government. They were authorized to the amount of Bilbo Davis McKellar Sheppard 000,000,000. Over a billion dollars' worth have been sold and Black Donahey McNary Shipstea.d disposed of. The Government could not get its money from Borah Fletcher Maloney Smith Brown Frazier Metcalf Steiwer those bonds to make this good. There is no way of doing it Bulkley George Minton Thomas, Utah except by making the Government pay the difference between Bulow Gerry Moore Townsend 4%- and 3%-percent interest. Burke Glass Murphy Trammell Byrd Hale Murray Truman Mr. BORAH. Mr. President, will the Senator yield? Byrnes Hastings Neely Vandenberg Mr. FLETCHER. I yield. Capper Hatch Norbeck Wagner Caraway Hayden Nye Wheeler Mr. BORAH. It should be borne in mind that, while the Carey Johnson O'Mahoney White rate of interest is 4 percent, by the time the farmer gets his loan, after paying the expenses, cost of appraisal, and so . The PRESIDING OFFICER. Seventy-two Senators have forth, it is a good deal more than 4 percent. answered to their names. A quorum is present. Mr. FLETCHER. Not a great deal more. He does not The question is on the amendment of the Senator from pay any commission on the loan. He has to take 5 percent Montana [Mr. WHEELER]. of his loan in stock, but that comes back to him in the final Mr. WHEELER. I ask for the yeas and nays on tbe settlement. There is not much expense. He pays for the amendment. examination. and for the appraisement, I believe, which The yeas and nays were ordered. probably costs $10, or something like that. Then he fur Mr. BANKHEAD. Before the roll is called, I should like nishes an abstract of title, and that has to be paid for. to hear the amendment read. Mr. WHEELER. Mr. President, will the Senator yield to The PRESIDING OFFICER. The amendment will be me? stated. Mr. FLETCHER. I yield. The LEGISLATIVE CLERK. It is proposed by Mr. WHEELER to Mr. WHEELER. The Senator says he pays $10 for ap- add a new section at the end of the bill, as follows: praisement. As a matter of fact, in many instances the land (a) The first sentence of paragraph (twelfth) of section 12 of banks have sent out and had appraisements made, charging the Emergency Farm Mortgage Act of 1933 is amended: the prospective borrower $15 or ·$20 for the appraisement, . ( 1) By striking out the words " within 2 years after such date "; and then, as a matter of fact, in many instances never did and (2) By striking out the figures "4% " and inserting in lieu anything further. What the Senator from Idaho has said thereof " 3 % "; and is true, that while the interest rate is 4¥2 percent by the (3) Striking out the words "occurring within a period of 5 time the farmer gets the money, he has to pay considerably years", and inserting "60 days after the date this paragraph takes effect." more than that. (b) The second sentence of paragraph (twelfth) of section 24 of Mr. FLETCHER. He pays for an examination of the title the Emergency Farm Mortgage Act of 1933 is amended: and for an abstract of title which he fmnishes, I take it. ( 1) By striking out the figure " 5 " and inserting in lieu thereof He pays for the appraisal. But that is done through the the figure " 4 "; . (2) Striking out the figures "4% •• and inserting in lieu thereof National Farm Loan Association, and the expenses are to be "3%.'' kept as low as possible. The responsibility for that rests a good deal on the National Farm Loan Association, of which Mr. FLETCHER. Mr. President- the borrower bas to be a member before he can borrow, Mr. WHEELER. I call for the regular order. ' and he puts up 5 percent of the amount of his loan in stock The PRESIDING OFFICER. The regular order is tbe of the association, which is pledged as security for his loan Senator from Florida is recognized. and comes back to him eventually when he makes his final Mr. WHEELER. No. settlement, with the interest on it. There are other ex- The PRESIDING OFFICER. No Senat& has answered to penses; I grant that; but there are no commissions paid to his name on the call. agents, or anything like that. Mr. WHEELER. I beg pardon. N"..r. BORAH. I do not have reference to the commissions The PRESIDING OFFICER. The Senator from Florida in a general sense, but they have to have an abstract and is recognized. appraisal. Mr. FLETCHER. Mr. President, I have previously stated Mr. FLETCHER. Yes. the effect of the amendment, if adopted, but as some of the Mr. BORAH. They have to make an appraisal; and I have Senators now in the Chamber may not have been present at seen many loans which have been estimated to be at 7 that time, perhaps I ought to let them know now what the percent by the time the farmers had secured the loans. amendment means, and I am going very briefly again to Mr. FLETCHER. That might be for the first year. How- state its effect. ever, these loans run for 30 years; and while the farmers may I Under the Emergency Farm Mortgage Act of 1933 it is have to pay something more than 4 % percent the first year, provided that on existing mortgages the rate of interest the after that such payment does not have to be repeated. The mortgage bears shall be reduced to 4¥2 percent. In other farmer does not have to furnish an abstract every year or words, the Federal land banks had mortgages running at 5 have an appraisal made every year. It is done once. and percent, or 5% percent, or whatever it was. The emergency 1726 CONGRESSIONAL RECORD-SENATE FEBRUARY 8 act provided that such mortgages should be reduced to 4 % Mr. ROBINSON. Mr. President, I move to reconsider the percent, the Treasury making up the difference. vote by which the amendment was adopted. There are about a billion dollars of these mortgages. The The PRESIDING OFFFICER. The question is on the Treasury now makes up the difference between what they motion of the Senator from Arkansas to reconsider the vote bear, 5 or 5% percent, and 4% percent, so that the borrower by which the amendment was adopted. gets his money at 4¥2 percent. It is proposed by the amend Mr. LONG. I move to lay that motion on the table. ment to reduce that to 3 % percent; in other words, the The PRESIDING OFFICER. The question is on the mo Treasury must make good 1 percent per annum additional on · tion of the Senator from Louisiana to lay on the table the about a billion dollars of outstanding mortgages, which is motion of the Senator from Arkansas. equivalent to a tax on the Treasury of a hundred million dol The motion to lay on the table was rejected. lars a year for 5 years. Of course, it is impossible to do that, The PRESIDING OFFICER. The question recurs on the and I hope the Senate will not agree to the amendment or motion of the Senator from Arkansas to reconsider the vote think of doing so for a minute, as, in all probability, the by which the amendment was adopted. President would then have to veto the bill. . Mr. ROBINSON. Mr. President, I believe the effect of the The PRESIDING OFFICER. The question is on the amendment is not fully understood. The matter has been amendment offered by the Senator from Montana .[Mr. clearly stated by the Senator in charge of the bill, the Sen WHEELER], on which the yeas and nays have been ordered. ator from Florida [Mr. FLETCHERJ. The effect of the amend The clerk will call the roll. ment is to impose an additional charge on the Treasury of The Chief Clerk proceeded to call the roll. the United States of $100,000,000 a year. The object of it is Mr. McNARY South Dakota is bonds? going to be fed from the Public Treasury at this time? Mr. President, I ask the Senator's pardon for interrupting I say as a practical proposition that when money is loaned his speech; but when it comes to a question of doing some- to the farmer at a reasonable rate of interest we are not thing practical, something beneficial, if the public will not giving the money away, we are not doling it out to some . buy the ·rarm-loan bonds, the United States Government one who does not want to work, but we are trying to make ought to assume the burden and take care of those who feed i~ possible for the man to stay upon his farm and make it and clothe and shoe us. We can extend all sorts of accom- possible for him to raise his children, send them to school, · modation8 to those who in return can furnish the money to and educate them. furnish the votes to put us back here; but the time has come Someone will say, "You cannot do it, because it is going in this country when that false principle wrought into our to cost the Government a few million dollars." life is working itself out in disaster. The Shylocks have ex- Mr. President, who made it possible for the bondholders acted their pound of flesh, and the victim.has bled to.death. who are getting 4 percent on their bonds to sell their bonds We sit here and quibble about technicalities concerning what at par at the present time? The Government of the United the middleman must have as a spread. One percent is guar- States put up the money in these land banks to make it · anteed him, and the man who lends the money is guaran- · possible for the holders of the bonds of the Federal land · teed 2 ~ percent or 3112 percent, while the man who makes · banks to get par for their bonds. Could not the Government · the wherewithal with which the debt has to be paid goes of the United States say, "We made your bonds sell at par, in the -red, and his farm is mortgaged and lost. some of which were selling for practically nothing, and Mr. LONG. Mr. President-- speculators got hold of some of them, and the Government The PRESIDING OFFICER. The Senator from Montana of the United States came in and made them good "? [Mr. WHEELER] has the floor. I ask that the rate of interest be reduced 1 percent. The Mr. LONG· I just want to ask the Senator from South farmers may feel that it should be lower than 3 % percent Carolina a question. t t The PRESIDING OFFICER. Does the Senator from a he-present time and under present conditions. I seriously doubt whether the farmers of the country can pay 3 % per- . Montana yield for that purpose? cent, but let us show them that we are at least trying to do Mr.- WHEELER. No, Mr. Pr€sident. something for them which will be of practical benefit. Mr. SMITH. I beg the Senator's pardon, but 1 will say · Oh, yes; we passed the allotment plan, and we said to the to him that I lose my temper now and then. - . _Mr. FRAZIER. Mr. President--- farmers, "You must cut down your acreage; you cannot The PRESIDING OFFICER. Does the Senator from Mon- plant so much of this, that, and something else." We passed many laws here, qut I say to the Senate that I am offering tana yield to the Senator from North Dakota? something which will be of more practical benefit to the :~: :i1~~· ~;1~~~ator .from South Carolina asked farmers of the country than all the allotment plans put to ~ the amount -which would be loaned under the Land Bank gether. I am sick and tired of people ·coming here and say - Loan Aot. • Jt.is·50 percent of the appraised valuation of the ing, "I am doing this for the farmen;." What are we doing land, and 20 percent of the insurable value of the buildings. it for? We ·are doing it for the bondholders. We are simply - In many cases the buildings are worth as much as the land saying to them," We are going to pay that· 4% percent." sells for at the present time . . So an average of about 35 Mr. :President, the land banks are loaded down today, from · percent of the value of the land and the buildings is all the one end of this country to the other, with a lot of cheap borrowers can get under the Land Bank Loan Act, and they politicians who are holdin gpositions. There ought to be a · pay altogether-too high a rate of interest for the money. general investigation of every single one of the land banks Mr. WHEELER. Mr. President, I thank the Senator from in the United States of America. Their forces ought to be North Dakota. reduced; and a ·general investigation of the whole Federal I do not think we should treat this problem very lightly. land bank system of the United States ought to be conducted I desire to say that the Government of the United states- by the Senate. Mr. CONNALLY. Mr. President, will the Senator yield? Not only that, Mr. President, but nobody got up on the Mr. WHEELER. No, Mr. President; I will not yield at fio01:- of the Senate and complained when the Reconstnic- . this time. tion Finance Corporation loaned money in order to save a Mr. CONNALLY. Mr. President, who has treated this railroad. When we· passed the Reconstruction Finance Cor probfom lightly? I thought this was the most serious discus- poratiori bill, the Van Sweringens were down there sitting on sion I had heard in the present session. the front porch waiting to get their hands into the Public Mr. WHEELER. Mr. President, I do not care to discuss Treasury. . that matter now. I wish to say to the Senate that what I Lose $100,000,000 ! We are going to lose more than $100, meant was that one of the most fundamental· of the prob- 000,000 from the loans which have been made by the Recon lems facing the Congress for decision at this time is the prob- struction Finance Corporation to the railroads, to the banks, lem of reducing interest rates to the farmers. and other institutions. Indeed, we are going to lose much This Government of ours is spending billions upon billions more than that. Which is more important-to lose some of dollars, and we are giving it away. We may talk about money to keep the farmer upon the farm so that he may taking money out of the Treasury of the United States to raise his children, so that he may live upon it and help pro make it up to the land banks, but what will happen to the duce commodities or to save $100,000,000 and drive him off farmers of this country unless they can get a reduction of the farm and send him to the city to be fed out of the interest rates? The land banks will own the farms, and public trough? That is what is happening now. We are then what will be done with them? soon going to appropriate more than $'1,000,000,000. What There is not a farmer in South Dakota today, there is not for? Most of it to feed hungry mouths, many of them the a farmer in North Dakota today, there is not a farmer in hungry mouths of farmers who have left the farm; and if Montana today, there is not a farmer in Idaho, or elsewhere we continue to charge them 4%-percent interest we will drive in the Northwest, who can pay 4 % percent interest upon the many more of them to the cities, because farms all over the money he borrows. In every single case of these ·refinancings country will be taken over by the Federal land banks. 1935 CONGRESSIONAL RECORD-SENATE 1731' - I know what the conditions are in the· Middle West,-and I · in 1916, and I remember that we were seeking to bring about know what they are in the Northwest, and I am saying to a reduction in the interest rates paid -by farmers from 8 you, Mr. ·president, that there· is not a farmer today in the and 10 and, in some instances, 12 percent to a decent rate entire Northwest who can afford to pay 4%-percent interest which they could afford to pay. We have reduced the rate upon -his farm. There is today in the State of Wisconsin, from 10 and 12 percent to 4% percent. We have been able one of the richest agricultural States in all this Nation, to do that because men who had money were willing to buy hardly a ·rarmer who can pay 4%-percent interest; and when farm-loan bonds and thereby become bondholders. It was we go farther into the Middle West and Northwest tnere is not because of the banks, but because millions of our people not any farmer who can pay it. Yet we are haggling as to who had a few hundred dollars laid aside invested a few whether or not we are going to charge the farmer 3 % hundred dollars each in farm-loan bonds. I _have friends, percent or 4 % percent.· all Senators here have friends whom they can call by name, I rel)€at what I have said, that what the Government who put their money in .farm-loan bonct.s, and without their ought to do, of course; what it should have done, was to assistance we would not have been able to reduce the rate take over the Federal land banks. of interest -from 8 to 10 and 12 percent to 4% percent. It is asked, " Shall the Government finance all the farm Yet because these men a.r;id these women had faith in this ers?" It had better finance the farmers .and make loans to institution set up by the Government of the. United States, them at low rates of interest-I do not care how low-:-than and because everybody knew that unless men invested their to drive them awaY from their .farms. It is tQ the interest money in farm-loan bonds the system could not be success of the United States of America to keep the farme;rs upon ful, they are denounced here as bondholders with some im their farmers and to make them decent, resl)€ctable citizens. putation of .dishonesty or cupidity or selfishness or some It is much more to the interest of the Government to do that design upon the farmers of the United St~tes. . than it is to loan money to insurance companies, to power . The banks of the country. now hold about $16,000,000,0(10 companies, to bonding companies, to railroads, and. other of Government obligations, only $900,000,000 of which are similar institutions all put together. guaranteed ·in any respect by the United States Treasury or Oh, yes; as the Senator from South Carolipa [Mr. SMITHJ the United States Government. It is now a serious question says, when we come to touch the great- utility corpor~tions whether, in the new financing of the Government ahead of us of this country, when we. come to touch the holding compa we will be able to induce the banks to take very many more nies, th~y s~y. · ~ Yoµ must J:!Ot regulate us, you xp.ust not do of its bonds at the prevailing ·rates of interest, and if this this, because think of the widows and orphans to whom we amendment shall be adopted I am quite sUl·e none of them have sold our bonds and our stock. Those bonds and those will ever take any more farm-loan bonds. _ . stocks are no:w held by widows and orpruins, and you "milst Reference has been made here . to loans to raih·oads and not touch us." insurance companies. I think it ought to be stated. that So when we attempt to d9 anything with the railroads the loans made by the Reconstruction Finance Corporation they say," You must not do that, because think of the widows to the banks are regarded as wholesale credit. We all and orphans who have got their money in-the savings banks." understand· the difference between wholesale credit and But the Senator from South Carolina pointed out that few retail credit. A bank in my home city or in yours, Mr. are thinking about "the widows and orphans, and those who President, desires to loan money· out to factories or stores are going to be widows and orphans, who are trying to make of men or women or corpqrations able to borrow money and a living with their hands and not asking for charity from pay interest on it. They are able to borrow money at what the Gover:D.ment of the United States, not asking for doles, if are called "wholesale rates." The Reconstruction Finance you please, but who are asking the Government of the United Corporation has furnishe·d to some banks what is called States to make it pos8ible for them to earn their daily bread, '.' wholesale credit " at 4 percent. Any bank that has any to keep their farms by reducillg their interest rates; and we, business judgment is not going . to loan that money out for the Senate of the United States and the Congress of the less than 5 percent, because it has got to have spread United States, will not do it; and some Senator has even sug enough to make expenses, and, at least, hold out some hcpe gested that the President of the United States would not of profit to the men who invest their money in the stock sign the bill with such a provision-in it. I say to you, Mr. of the bank, but the loans which have been made by the President, I do not believe the President of the United States Reconstruction Finance Corporation to industries now bear would hesitate one moment to approve such a measure. a rate of 6 percent, and not a rate lower than that which . The most important thing before this country is, how is borne by the farm-loan bonds of the United· States. are we going to keep the farmers upon the farms; not how Mr. WHEELER. What is the rate of interest on loans we can make a little money off t}?.em, not how we can make to the railroads? them pay more interest-but how are we going to keep them Mr. BARKLEY. It varies between 4 and 6 percent. It is upon their farms? The question is, How are we going to not below 4, and sometimes is around 5, and perhaps in some make it possible for them to raise their· children and send instances 6. It depends a good deal on circumstances, but them to the conn.try schoo~s, give them an education, and none of them bear below 4 percent, and, I think, none make them decent citizens? The most important thlng, I above 6. repeat, is to keep the farmers upon their farms. Mr. WHEELER. Mr. President, will the Senator further The Farm Credit Board, with a lot of clerks and econo..: yield? mists sitting in their sWivel chairs, may figure how. much The PRESIDING OFFICER (Mr. DUFFY in the chair). interest the farmers should pay; but the problem that is Does the Senator from Kentucky yield to the Senator from confronting us is, How are we going to make it. possible Montana? for the farmers to keep their homes; how are we going to Mr. BARKLEY. I yield. make it possible for them to increase their purchasing Mr. WHEELER~ Some of the money we have loaned to the power so that industry may prosper throughout the United railroads has gone to pay interest upon their bonded in States, and how th~se men can get ofi the dole? we-are debtedness. either going to do one thi:µg or the other-either keep them Mr. BARKLEY. That may be true. We have demon upon the farm, even if we have to loan money to them for strated our desire to furnish· cheap credit to the farmers. little or nothing, or we are going to have to feed them and We have provided that the production credit associations carry them on a dole; that is all. which we have set up under the amended Farm Loan Act Mr. BARKLEY. Mr. President, I apologize to the Senate may have a wholesale credit of 2 percent on the money which for speaking again upon this matter. I hope that we will they borrow, and of the cooperatives the same thing is true; not be swayed by any prejudice we may have against any they also get money at 2 percent, and loan it out upon com body who might be called a bondholder. I happened to be modities such as corn, wheat, cattle, or hogs or anything for a Member of Congress when the Farm Loan Act was passed a quick turn-over.. But the amendment of the Senator from. 1 LXXIX--110 1732 CONGRESSIONAL RECORD-SENATE F .EBRUARY & Montana will provide that the individual loans on long-term Mr. WHEELER. Mr. President, will the Senator tell ma paper from 20 to 30 years wm bear only 3 Y2 percent. I should someone who held them up to scorn? like to see the rate reduced even below that; I should like to Mr. BARKLEY. The Senator himself referred to bond4 see it reduced to 3 percent or 2 percent, if it were possible to holders- do it on the basis of sound business judgment. Mr. WHEELER. May we not refer to a bondholder with This was a sacrifice to the land banks. The Senator has out holding him up to scorn? said they are being manned by a lot of cheap politicians Mr. BARKLEY. Yes; but it seems that the Senator from who ought to be fired. I do not know anything about any Montana cannot. There was a peculiar emphasis, it seemed of the land banks except the one in the district where I live. to me, of scorn when the Senator . emphasized the word In the city of Louisville, which is in the fourth land-bank " bondholders." district, we have a land bank with which there is not one Mr. WHEELER. What I said about bondholders was that politician connected. With the exception, perhaps, of one there were a lot of speculators who bought up the bonds. other this is the most successful and most useful of all the Mr. BARKLEY. I doubt whether there are very many land banks of the United States. The men in charge of that speculators involved. It may be that some did that. Of bank are business men and farmers. They are not politicians. course, we all have the speculative instinct. We cannot I can say, so far as that bank is concerned, that it would wel legislate that out of the human heart. come any sort of investigation that might be proposed by the Mr. WHEELER. But a lot of them bought the bonds be Senator from Montana. cause they thought certain legislation was going to be Mr. WHEELER. We tried to get an investigation at the enacted. last sesshm of Congress, but we could not get it. Mr. BARKLEY. Many people bought silver because they Mr. BARKLEY. I do not know about those out in the thought certain legislation was going to be enacted. We Senator's section of the country, where it may be that poli cannot prevent the people doing things of that kind. We ticians are .in charge. I doubt that, however. cannot prevent men from trying to capitalize what they Mr. WHEELER. I happen to know that they are. think Congress will do by reason of certain legislation that Mr. BARKLEY. Did the Senator recommend any of them? may be pending. Mr. WHEELER. Yes; I recommended some men to be put Mr. WHEELER. That is true; but that is no reason why in charge, but they were not of that type-very few of them, we should permit them to continue. That is no reason why I believe. Not only have there been complaints with refer we should not see to it that the interest rates are reduced ence to th.e bank out there, but the Senator will find the same to the farmers of the United States. complaints with reference to practically every single land Mr. FLETCHER. Mr. President, I hesitate to take up any bank in the United States. time discussing the matter further, but it is a very im Mr. FRAZIER. Mr. President-- portant question. It is very vital to the people, in one way The PRESIDING OFFICER. Does the Senator from Ken and another. I do feel that I ought to draw attention to tucky yield to the Senator from North Dakota? the situation in which we find ourselves in reference to this Mr. BARKLEY. I yield. matter. I have already mentioned it, but I repeat briefly Mr. FRAZIER. Is not a large percentage of farms being because there are some Senators here now who were not foreclosed in the Senator's State at this time, and has not present at that time. that been the case for the last year or so? I am somewhat familiar with the legislation that led up Mr. BARKLEY. No; that has not been the case. I will to this situation. I was chairman of the United States say to the Senator in explanation of my answer to his ques commission appointed by President Wilson to make a study tion that a year or two ago, when the farm-loan system had of agricultural conditions in Europe and in this country collapsed ru· ceased to function, there was a threat of whole with a view to deciding upon some scheme or system or sale foreclosure upon farms. I believe the Louisville Land plan for financing the American farmer. The Senator from Bank went as far as it was possible to go to withhold all Oklahoma [Mr. GORE] was a member of that commission. possible foreclosures. The foreclosures which were insti We made a report, but I shall not go into it. No one ever tuted even in those distressing circumstances were where the knows I was chairman of that commission unless I happen farm owners had abandoned their farms and ceased to pay to tell it myself. interest and moved away, and as a matter of self-preserva We submitted a report, Senate Document 214, comprising tion the land bank had to take some step in order to pre 1,000 pages and covering the entire investigation we made in serve the loans it had made upon such farms. I think that Europe, with the determination if possible to establish a situation has been greatly alleviated by reason of new blood system for financing agriculture in this country under which we injected into the land-bank system through appropria the farmer could live and thrive. The older countries of tions from the Federal Treasury. Europe had had their various systems, the credit mobilier and Mr. FRAZIER. There was one landowner from Kentucky such other plans, in operation for hundreds of years. That here last winter who was very much interested in an amend is the reason why we went there, to study those plans and see ment to the Farm Bankruptcy Act. He made the statement if they could be applied to this country. They have worked that in his county, unless something was done, 90 percent there marvelously. of the farmers would lose their farms through foreclosure. I introduced a bill on the subject, the first bill that was Mr. BARKLEY. He was a little pessimistic. That prophecy introduced. It was ref erred to the Committee on Banking not only has not come true but it has not even been ap and Currency. The bill was amended in the committee and proached. I do not doubt his good faith and sincerity, but the chairman of the subcommittee then reported the bill as it is easy for a man to come here and say, "Unless some-· amended, and my name never became connected with the thing is done, 90 percent of the people will have something legislation in any manner. I was a member of the conference happen to them in the near future/' It just did not work committee between the House and the Senate which settled out that way. In the first place, ~here were not 90 percent the Farm Loan Act. That was the beginning. Out of the of the farmers in that county who had loans on their farms. work of these commissions resulted the Farm Loan Act. As The thing we ought to keep in mind is to try to preserve the Senator from Kentucky [Mr. BARKLEY] said, one of the some uniformity with respect to our farm-loan system. We main ideas and purposes of that act was to secure decent should not become prejudiced against somebody who has, out interest rates for the farmers. That was the purpose of it. of his savings of a lifetime, invested some of his money in It was attacked on that ground. Bankers objected to it on farm-loan bonds. Without them the farmers never would that ground. A suit was begun in Missouri and was carried have gotten the benefit of the farm-loan system. I think it to the Supreme Court of the United States involving the con.. is quite unfair to them to hold them up to scorn on the floor stitutionality of the Farm Loan Act. One of the grounds of the Senate because they, believing in agriculture, have of attack was that it exempted the Federal farm-loan bonds been willing to invest their savings in the bonds representing from taxation. That provision had been incorporated in the credits to the farmers of the United States today. law for the purpose of securing to the farmer a reduced ratei 1935 CONGRESSIONAL RECORD-SENATE 1733 of interest. The law provided that he should be charged continue the present reduction in interest for 5 years; but not to exceed 1 percent above what the bonds sold for. It he leaves his reduction indefinite for all time to come. He was estimated that if we did not have such a provision in the proposes that the interest rate shall be 3 % percent, and the body of the bonds, the farmer would have to pay 2 percent Treasury must make up the difference between the contract more for his money. The bonds would probably sell, in other rate specifieQ. in the mortgage and 3 % percent. In other words, for 2 percent more than they would sell for with the words, he adds 1 percent to the one-half of 1-percent reduc tax-exempt feature. What I mean to say is that if we did tion already provided for 5 years. He makes the reduction not have the tax-exempt provision in the bonds, they would 1 percent from now on, for all time for the future, without have to sell for 2 percent more than otherwise, and the any limit at all. farmer would have to be taxed that 2 percent plus the cost That means that for 5 years the proposal would cost the of administration, which was estimated at 1 percent. It Government $100,000,000 a year. I do not know how much never amounted to 1 percent. It never has amounted to it would cost altogether, because we do not know how long more than one-half of 1 percent; but it was contemplated the reduction would last. It is to last indefinitely under this that the cost of administering the system would be borne by amendment; and I presume-I think the Senator from Okla the people who enjoyed its benefits. That is not outrageous. homa [Mr. GoREl made that statement-that very likely, if It is not unfair. It is entirely reasonable. that is done this year, next year a demand will be made for As a matter of fact, the system does not bear all the ex a reduction to 3 % or 3 percent, and perhaps after that there pense now. The expenses of the administration here in will be a demand for a reduction to 2 percent, and perhaps Washington are paid by the Government. The expenses out after that it will be demanded that the interest shall be paid in the field of the Federal land banks, and all that sort of entirely by the Government. thing, are paid by the borrowers there. One-half of 1 per For heaven's sake, have we not done about as much as we cent takes care of that, but it does not take care of the sal can for agriculture? We first brought the interest rate down aries of those in Washington who are administering the act. to 5 percent, and then down to 4% percent; and, in addition The passage of the Farm Loan Act did accomplish a re to all that, we have agreed upon benefits and allotments ·and duction of interest to farmers all over the country-not only compensation here and there, benefits of all sorts that we for farmers, but for commerce and industry. There was a have. established fox agriculture. Is there not any limit, reduction in bank rates following the pasEage of the act. any place where we will stop? As the Senator from Ken There was a reduction in commercial rates of all sorts as tucky [Mr. BARKLEY] has said, we shall break down the the result of the legislation, just as the bankers predicted. whole system if we do not stop at a reasonable stopping They said it would reduce interest rates, and it did; and place; and I think we have gone the limit already. that is what we wanted to do. The Supreme Court sus The Government cannot afford to do what is proposed. tained the constitutionality of the act in every feature and One hundred million dollars a year for 5 years is the amount in every reEpect, including the provision in regard to the of the donation that is asked. We have appropr_iated $125,- exemption from taxation of the farm-loan bonds. 000,000 to bring new life into the system and have it go on. Before the system was inaugurated the farmers of this Now we are asked to appropriate this other benefit. country were paying all the way from 6-percent to 20-per Mr. BARKLEY. Mr. President, will the Senator yield cent interest. The evidence before our committee showed there? that in some instances they were paying as high as 20 per Mr. FLETCHER. I yield to the Senator from Kentucky. cent for the financial accommodations they required. Mr. BARKLEY. It ought to be stated also that the Farm The Farm Loan Act provides that charges to the bor Credit Administration has been able to bring about a total rower shall never exceed 6 percent. That includes the cost reduction of about $32,000,000 in the interest paid by farmers of administration; so every year since that act was passed since the revival of the farm-credit function. there has been a saving of $450,000,000 to the farmers of Mr. FLETCHER. Yes. the country in interest alone. I have before me here, in our hearings on this bill, a state I am very deeply concerned about this matter of interest ment by Governor Myers, found on page 10 of the hearings. to the farmer. I have always endeavored to help agricul I asked him this question: ture, and to accomplish through that farm-loan legislation I should like to ask whether or not the agricultural situation is improving; whether farmers are going deeper and deeper into debt benefits to agriculture, especially with reference to the or whether they are paying out. farmer's financial operations. I am interested in that to day; but I do not want to break down a system which has That question was put to him. It is a very important ques done so much good for agriculture. We shall destroy it if tion. In view of the statements made here by the Senator we ride it to death, if we keep imposing upon the Govern from South Carolina [Mr. SMITH] and the Senator from ment conditions which will ultimately ruin the system. I Montana [Mr. WHEELER], it looks as though we are in a most agree with what the Senator from Alabama [Mr. BANKHEAD] desperate situation as to agriculture-as if every farmer in has said about that. There must be a limit to the extent the country is about to starve to death, quit his farm, and all to which the Government can go. that sort of thing. Today, under the law, a man borrows a thousand dollars. Mr. Myers said this-I read from his testimony: His interest rate is 5 percent, as specified in the mortgage. They are paying out, Senator. I have put on this sheet [exhibit ing) some figures that show the results of our refinancing opera His agreement, his contract, is to pay 5 percent. On the tions to date. back ·of that contract is endorsed a credit of one-half of 1 Table 3 shows that out of nearly $1,500,000,000 of loans made percent for 5 years. That is, under the existing law a reduc 89.7 percent has been to refinance existing debt; that is, mortgage tion is made to 4 % percent. debts, short-term debts, and taxes. That is practically 90 percent of the loans that have gone to refinance debts. The interest rate now fixed by our act is 4 % percent, and the credit is endorsed on the farmer's mortgage. If it Then he mentions other percentages of the loans. is a 5%-percent mortgage, there is a credit of 1 percent. Mr. SHIPSTEAD. Mr. President, will the Senator yield? If it is a 5-percent mortgage, the credit is one-half of 1 per Mr. FLETCHER. I yield to the Senator from Minnesota. cent. That credit for 5 years is endorsed on the farmer's Mr. SHIPSTEAD. Does that refer to land-bank mort- contract today under the law as it stands. In other words, gages, farm mortgages? he pays only 4 ¥2 percent, although his contract originally Mr. FLETCHER. Yes. was for 5 percent. The Government, the Treasury of the Mr. SHIPSTEAD. Ninety percent of all outstanding mort United States, takes care of the difference between what the gages have been refinanced? farmer contracted to pay-5 percent, we will say-and 4 % Mr. FLETCHER. Yes; exactly. I understood the Senator percent. It has been doing that under the present law; and to ask whether the loans have been used for refinancing. that provision of law will expire in 1938, as I understand. Yes; the proceeds of 90 percent of the loans have gone to The proposal of the Senator from Montana CMr. WHEELER] refinance farm mortgages and farm debts of all sorts, taxes is worse than I thought it was. I thought he was going to and all that sort of thing. 1734: CONGRESSIONAL RECORD-SENATE FEBRUARY 8 Mr. SHIPSTEAD. Does that mean 90 percent of all farm ditions. I do not want it to appear that just because some mortgages in the farm land-bank system? body can stand here on this floor and propose that interest Mr. FLETCHER. Yes. be reduced to any figure-we might just as well make it 2 Mr. SHIPSTEAD. In how long a time--2 years? percent, and there is a temptation always to reduce inter Mr. FLETCHER. No; 90 percent of the $1,600,000,000 of est-that that is as far as we can see. We have to look loans made by the Farm Credit organization. ahead and see something of the consequences. Where would Mr. SHIPSTEAD. In 2 years? this lead? Where can we go? Mr. FLETCHER. Yes; I think it is 2 years-from May I say that it would be endangering the whole system, not 1933 to date. That is the amount they have handled since only endangering this legislation, which might not be so the act went into effect. terrible, but it would be endangering the whole system set Mr. ROBINSON. Mr. President, will the Senator permit up for the benefit of agriculture, which is now working an interruption? admirably, serving the interests of the farmers of the coun Mr. FLETCHER. I yield to the Senator from Arkansas. try in a most satisfactory and splendid way, and I think Mr. ROBINSON. Of the more than $1,000,000,000 that it would be a great mistake to adopt this amendment. has been loaned in connection with farm mortgages by the Let the laws which. exist now, which are working well, Fa.rm Credit Administration, 70.9 percent has gone to the continue to operate for the benefit of the farmers. refinancing of existing farm mortgages, 15.8 percent to re PROPOSED CHILD-LABOR AMENDMENT TO THE CONSTITUTION fund short-term debts, and 3 percent to pay taxes, accord Mr. COSTIGAN. Mr. President, it is not my habit to in ing to preliminary estimates. Those are the figures supplied terrupt important discussions such as the one now proceeding me by the Farm Credit Administration. before the Senate, but after waiting 2 days with patience I Mr. FLETCHER. Mr. Myers further states in this hear feel I must say something without more delay on an issue of ing: public importance now pending before the legislatures of a Where the debts of the farmer exceeded the amount that could number of States of the Union. I refer to the proposed child be ioaned, it was required that these debts be- composed within that amount. labor amendment to the Federal Constitution, which-lest we forget-reads as follows: In other words, the Farm Credit officials succeeded in ad SECTION 1. The Congress shall have power to limit, regulate, and justing these debts with creditors in the interest of the prohibit the labor of persons under 18 years of age. farmer. SEC. 2. The power of the several States is Unimpaired by this article, except that the operation of State laws shall be suspended The aggregate scale-downs have been about $5,000,000. to the extent necessary to give effect to legislation enacted by the That is to say, the Farm Credit officials have benefited the Congress. farmers by their facilities in handling the matter to the It is a source of great satisfaction to those who have the amount of $5,000,000 in the scale-down of their debts. welfare of children at heart that during child-labor week, Mr. SIDPSTEAD. Out of a total of how much? which ended last Sunday, Wyoming became the first of the 44 Mr. FLETCHER. One billion six hundred million dollars. States, whose legislatures are in session this year, to ratify Mr. SIDPSTEAD. They scaled that sum down $5,000,000? that amendment. Since then, Utah and Idaho have ratified Mr. FLETCHER. They saved $5,000,000; yes. The aggre- it, and the amendment has been approved by one house in gate scale-down has been about $5,000,000. each of the Legislatures of Indiana and Nevada. This bring-s Mr. My-ers continues: to 23 The farmer is not in such terribly impoverished and hope- 1 a member .of. the bar of St.. Louis. In a letter to the editor less condition as pictured here. The farmers have paid 82 of th~ Lomsville (Ky.) Courier-Journal, .Mr: E~munds stated percent of the commissioners' loans up to this time. That that m November 1933, ~e accept~d an mv1tat1on to ,~con:e leaves about 12.7 percent delinquent, and more than half a member of the e~e~?t1ve counc~ o~ the ~a-called Senti of that delinquency is less thain 2 months old. About 12.7 ?els of the Republic , an orgamzat1on with. headqua~ters percent of the delinquency on the commissioners' loans are m Boston, and that as a member of the executive comnuttee of but 2 months' standing. · of the Sentinels, he undertook to organize a Missouri group to oppose the amendment. Of the 50 members of the ambi In other words, in spite of the drought and the fact that the : depression still exists in some areas, we have collected about 82 tiously self-labeled "Committee for the Protection of the percent of the interest maturities up to December 31 on Land Child, Family, School, and Church", listed by Mr. Edmunds, Bank Commissioner's loans, that went to the farmers who were 19 are known to be also members of the Sentinels and 4 most heavily in debt. are known to be members of what is known as the" Woman Mr. President, that is the testimony of Dr. Myers before Patriot Publishing Co.", organizations which have been long our committee recently. That shows something of the con.;. time enemies of the child-labor amendment. 1935 CONGRESSIONAL RECORD-SENATE 1735 The Woman Patriot was formerly the official organ of the ·not correct. Mrs. Kelley was for many years at the head of the Consumers' League and favored all constructive legislation for the Association opposed to Woman Suffrage, and its publicity betterment of labor, practically all of which was enacted into law. has been used by manufacturers' organizations in campaigns not only against the child-labor amendment but also against There is the same disregard of truth in the assertion that other progressive enactments. Mrs. Kelley drafted the child-labor amendment. The fact The Sentinels organization was started in 1922 by the is that the amendment was written by a group of the ablest late Louis A. Coolidge, of Boston, treasurer of the United constitutional lawyers in this country acting with labor Shoe Machinery Co. Though a relatively small organiza leaders and child-welfare experts. These lawyers included tion, confining its activities chiefty to Massachusetts and Senator George Wharton Pepper, of Pennsylvania; the late Washington, D. C., its propaganda has been country-wide. Senator Thomas J. Walsh, of Montana, who was to have Mr. Coolidge appeared at Senate hearings on the child-labor been President Roosevelt's Attorney General; Senator Sam amendment in Washington in 1924, proclaiming his opposi uel M. Shortridge, of California, who introduced the final tion not only to that measure but also to the woman suffrage draft of the amendment in the Senate; and Representative amendment to the Constitution and to Federal income taxes. I. M. Foster, of Ohio, who introduced it in the House. The most significant fact to be noted in regard to mem HisTORY OF AMENDMENT bers of the National Committee for the Protection of Child, After the second Federal child-labor la.w was declared Family, School, and Church is that practically none of them unconstitutional, the demand for an amendment to the Con has had any standing in modern movements for child wel stitution which would enable Congress to pass a Federal law fare or present-day organizations for social betterment. became so widespread that more than 40 resolutions were Their experfence has not been calculated to give them pro promptly introduced in House and Senate by representatives gressive and humane contacts with problems of child labor in Congress of 14 States, all proposing amendments to give or to enable them to judge and apply remedial assistance, Congress such authority. Twenty-three of these resolutions and their opposition has been the more active the less inti fixed the age limit at 18 years, and one-a resolution of mate or accurate the knowledge they have displayed of the Representative John Jacob Rogers, of Massachusetts-at 21 real history, purpose, and authorship of the child-labor years. The House of Representatives in 1923 passed the amendment. resolution of Mr. Foster, of Ohio. From a folder issued by the committee the following ques While a member of the United States Tariff Commission I tion and answers are quoted: personally aided in drafting the measw-e, and am thoroughly Who drafted this amendment? It was not drafted by Congress. familiar with its history. The original draft was prepared It was drafted by Mrs. Florence Kelley Wischnewetsky, chief lobby by a committee headed by the extraordinary labor leader, ist for the creation of the Federal Children's Bureau, in collabora Samuel Gompers, for many years president of the American tion with Misses Julia Lathrop, Grace Abbott, and Anna Louise Strong, of the Children's Bureau. Federation of Labor, an organization which had been advo cating uniform child-labor standards since 1884. Mr. .Rarely have erroneous statements so crowded a brief space, Gompers' committee was made up of representatives of more and their falsehood has persisted in spite of conclusive and than 20 national organizations of men and women, one of authoritative repudiations. The names of Mrs. Florence which was the Consumers' League, the head of which at that Kelley and Miss Strong are audaciously used today, as they time was the former Secretary of War, Newton D. Baker. were 10 years ago, to make persons unfamiliar with the facts Mrs. Florence Kelley, for many years secretary of the Con believe that the amendment originated in Moscow. It must sumers' League, represented l\tir. Baker on the Gompers com be amazing to those unfamiliar with the vitality of gross mittee. Other members were Monsignor, then Father, John libels that arguments discredited and proven false 10 years A. Ryan, professor of moral theology and industrial ethics at ago should be thus persistently revived. the Catholic University of America; Dr. Worth M. Tippy, It is of record that Mrs. Kelley neither drafted the amend executive secretary of the Commission on Social Service of ment nor lobbied for the Children's Bureau. Of course, she the Federal Council of Churches; Mrs. Maud Wood Park, was one of many thousands of public-spirited citizens who former president of the National Leag\le of Women Voters; favored establishing such an agency of our National Govern Mrs. Alexander Wolf, of the Council of Jewish Women; and ment. But it is well known that the idea was first suggested many others representing the leading national organizations by Miss Lillian D. Wald, noted founder of the Henry Street of the country. The original draft was submitted by the Settlement in New York; and although many bills to that committee to several distinguished lawyers, among them end were introduced from 1906 to 1912-the first by Senator Dean Roscoe Pound, of the Harvard University Law School; Winthrop Murray Crane, of Massachusetts-it was President former Secretary of War Newton D. Baker; and Prof. Ernst Theodore Roosevelt who gave the movement its greatest Freund, of the University of Chicago Law School. After impetus, first by his recommendations to the first White many conferences between the legal advisers of Mr. Gompers' House conference, which he called in 1909, and later in his committee and the lawyer members of the Senate Judiciary message to Congress on the subject. A Federal Children's Committee, the language of the proposed amendment was Bureau was recommended by unanimous vote of those who given final form. In shaping it the late Senator Thomas J. attended the White House conference, prominent men and Walsh, of Montana, and ex-Senator George Wharton women representing every type of interest and all creeds. Pepper, of Pennsylvania, had important parts. Senator Mrs. Kelley, however, was not there. Walsh, in a speech in the Senate, subsequently stated that Certainly I should be among the last to detract in any way Mrs. Kelley was not present at any of these conferences. from the notable record which won for the late Mrs. Florence Kelley a place forever secure in the admiration and affection CONGRESSIONAL HISTORY of her contemporaries. Her flaming soul of justice-loving After Mr. Foster introduced the measure in the House mercy will inspire countless men and women long after our and Senator Shortridge in the Senate, hearings were held generation is dust. The use of the name of this great woman before the Judiciary Committees of both Houses. In th~ in propaganda against the child-labor amendment has been House of Representatives seven Members of Congress ap shocking even to oppanents of this measure. Former Gov. peared in support of it. They were Messrs. Connery, Dal Alfred E. Smith, of New York, although no longer a supporter linger, Frothingham, Rogers, and Tague, of Massachusetts, of the amendment, has defended the memory of Mrs. Kelley, Lineberger of California, and Cooper of Wisconsin. They whom he knew for many years, against such defamation. In were strongly seconded by representatives of church, labor, a telegram to a member of the League of Women Voters in civic and welfare organizations. In the Senate President Massachusetts, where the charge of radicalism had been Samuel Gompers personally appeared to urge adoption, and raised against the amendment and Mrs. Kelley, ex-Governor directed the presentation of the case for the proponents of Smith said: the amendment. Mrs. Florence Kelley, representing the Consumers' League, was one of a long list of prominent men If any statement that the late Mrs. Florence Kelley was a Com munist and that she devoted her life to social revolution and and women, including Julia Lathrop and Grace Abbott, past efforts to overthrow the Government was ma.de, that statement was chiefs of the Children's Bureau, who appeared in behalf 1736 CONGRESSIONAL RECORD-SENATE }:fEBRUARY 8 of the amendment at the Senate hearings. De~pite asser ment was pending in Congress, and revived by opponents tions made by opponents of the amendment, the records today, that Congress cannot be trusted with the authority show that Miss Anna Louise Strong had no part whatever such an amendment would confer. In an address before the in drafting the amendment. Miss Strong, who had been Society of Harvard Dames, published in the Harvard Alumni employed by the Children's Bureau for a few months in Bulletin for November 1924, President Eliot said: 1915 and in a minor clerical capacity to set up some exhibit I am surprised at the illogical character of the argument set material at the Panama-Pacific International Exposition up by the intelligent and experienced persons who are protesting against the child-labor amendment. That amendment does noth held in San Francisco, had left the Children's Bureau many ing but provide that Congress shall have power to pass laws con years before the child-labor amendment wa~ drafted, was cerning child labor which shall apply to the whole country. That not a member of the committee interested in it, and, as power seems to me absolutely indispensable to the correct, sound, stated. did not appear at the hearings. Among those who orderly management of the whole subject of child labor and its confessed evils. How else can we arrive at any law which will be did appear at the hearings, in addition to those already applicable to the whole country? How else can we del1ver all the mentioned, were William Draper Lewis, professor in the children of the country from forced labor 1n mines and factories? University of Pennsylvania Law School; Dr. E. 0. Watson, But those who protest against the amendment say we cannot trust secretary of the Federal Council of the Churches of Christ either the present Congress or the next. Congress will do some silly thing if we give it power to pass laws applicable to the whole in America; Rev. R. A. McGowan, of the National Catholic country. They predict that Congress wtll, for instance, forbid Welfare Council; Mrs. John J. O'Connor, representing the children under 18 to work on the family farm, that they will for National League of Women Voters; Mrs. Maud Swartz, of bid children to perform manual labor of any sort in school. Is not that an extraordinary assumption? It seems to me an as the National Women's Trade Union League; Mrs. Arthur C. sumption inconsistent with real faith in democracy. Watkins, of the National Congress of Parents and Teachers; The only question is whether Congress shall have power to Mrs. Alexander Wolf, of the Council of Jewish Women; Mrs. pass any laws applicable to the whole country. If they are not to have that power, we might as well give up the regulation of E. A. Yost, of the National Woman's Christian Temperance child labor. There is no hope of regulating wisely the conditions Union; Miss Mary Stewart, of the National Federation of of child labor if nobody has the power to make any regulations Business and Professional Women's Clubs; Mrs. Emily applicable to the whole country. We shall be forced back upon a Newell Blair, vice chairman of the Democratic National condition of things which has prevailed already for too long in our country-the competition between the States, not for the Committee; Mrs. Harriet Taylor Upton, vice chairman of best regulation of child labor, but for the regulation which each the Republican National Committee; Miss Agnes Regan, of State thinks for its own interest or advantage. the National Council of Catholic Women; and Owen R. Mr. President, distinguished members of the. Harvard fac Lovejoy, of the National Child Labor Committee. ulty have supported the child-labor amendment no less ar The child-labor amendment was passed by Congress in dently than did President Eliot. Dean Roscoe Pound, of the 1924 by a vote of 297 to 69 in the House of Representatives Harvard Law School, has been, and still is, one of its fore and 61 to 23 in the Senate. In the Senate the late Henry most legal advocates. A strong argument in favor of ratifi Cabot Lodge, Republican leader of the Senate in 1924, and cation of the amendment has been advanced by Dr. Manley his successor, Senator Charles C. Curtis, and Joseph T. 0. Hudson, Bemis Professor of International Law at Har Robinson, Democratic leader, supported it. In the House vard. In that statement Dr. Hudson cites Thomas Reed of Representatives the late Nicholas Longworth and William Powell and Arthur N. Holcombe, his colleagues in the Har A. Oldfield, Democratic whip, likewise supported it. vard Law School, among others who endorse this measure. Such details of the history of the amendment have been Other well-known members of the legal fraternity who thus recited becauie it has appeared wise to make perfectly favor the amendment include William Draper Lewis, direc clear the facts as to the real authorship of this much tor of the American Law Institute; Dr. M. R. Kirkwood, debated measure and concerning individuals and organiza dean of the Stanford University Law School; W. W. Cook, tions endorsing it. professor of law in the Johns Hopkins University; Donald Some other statements circulated by the hostile committee Richberg, Executive Director of the Emergency Council, and already named are as fantastic as those pertaining to the many others. authorship of the amendment. The claim, for instance, has DEAN ROSCOE POUND been made in one of the committee's folders that Mrs. Opponents of the amendment have, of course, attempted Florence Kelley organized the National Child Labor Com to invoke legal authorities to strengthen their arguments. mittee in 1923. This organization is frequently referred to In this connection may be quoted a letter written by Dean as " Mrs. Kelley's Child Labor Committee." This is another Roscoe Pound, of Harvard, to the general secretary of the inexcusable misstatement. The National Child Labor Com national child labor committee, in which, discussing the mittee, as is well known and completely c!emonstrated, was charge that the amendment would give Congress too much founded in 1904, and incorporated by Congress in 1907. Its power, he aptly said: founders included Grover Cleveland, former President of the I have read attentively the voluminous literature which has United States; His Eminence James Cardinal Gibbons, arch come out on this subject recently in which some very good lawyers bishop of Baltimore and one of the most revered churchmen (obviously retained for the purpose) have expended t he resources of any faith America has ever known; such distinguished of ingenious advocacy in conjuring up bogies in this connection. It should be remembered that excellent lawyers have always done humanitarians and citizens as Jane Addams, of Hull House, this with respect to every important measure in our history. We Chicago~ Felix Adler, of New York City; Stanley McCormick have certainly never had a greater lawyer in this country than and Mrs. Emmons Blaine, of Chicago; Hon. Gifford Pinchot, James Kent. But he thundered against the Louisiana. Purchase former Governor of Pennsylvania; Hon. Hoke Smith, of as unconstitutional, revolutionary, and subversive of American institutions. Nothing that I have read about the child-labor Atlanta, Ga.; Edward T. Devine and Paul Warburg, ·of New amendment paints a gloomier picture for the future than that York City; such well-known publishers as Hon. Clark Howell, which this eminent lawyer painted in his opposition to acquisit ion publisher of the Atlanta Constitution, and· Adolph S. Ochs, by the United States of a territory which would make it an publisher of the New York Times; such outstanding edu American empire. cators as Dr. Samuel McCune Lindsay, then commissioner of In a memorable speech in the Senate in January 1925 the education in Puerto Rico and professor of sociology at the late Senator Thomas J. Walsh also took issue with those University of Pennsylvania, and now professor of social legis who challenge the discretion of Congress and impeach its lation at Columbia University, and the distinguished and good sense. beloved president of Harvard, Dr. Charles W. Eliot. It was ever thu&- PRFml>ENT ELIOT'S COMMENTS He said- The name of President Eliot recalls that he was not only even from the infancy of the Republic. And yet it ls the only one of the founders of the National Child Labor Committee reliance of the Nation and somehow or other it has done fairly but also an outstanding advocate of an amendment to the well in the 135 years since it commenced operations. The average Constitution which would enable Congress to pass laws ap of its output, at least, it must be conceded, has been fairly good. The people intrust to it the supreme issue of war and peace, and plicable to the whole country. President Eliot had no yet some profess to be alarmed at the prospect of its being called patience with the argument raised at the time the amend- upon to legislate on child labor lest it a.ct senselessly in the matter. 1935 CONGRESSIONAL RECORD-SENATE 1737 This review of history has been given because it has ap quallflcation of the literal import of the words employed in the Constitution. peared wise to make perfectly clear the facts as to the au Prior to the submission of the eighteenth amendment all pro thorship of the child-labor amendment and as to individuals posed amendments were Sl,lbmitted to the States without limita and organizations supporting it when passed by Congress. · tion upon the period of ratification. At the lnstigation of Senator All of us who rejoice that child labor has been temporarily ASHURST, an additional section was added to that amendment by which ratification was required within 7 years if the article were reduced to a minimum by codes approved under the National to be operative. Recovery Administration, hope that this retirement of an old In the extensive debates which accompanied this change there evil will be advanced toward permanency by the early ratifi was considered only the desirability of so limiting the ratification period and; more extensively, the constitutionality of such an at cation of the child-labor amendment by the necessary num tempt. It occurred to no Senator that the proposal was anything ber of States. The list of those who now share this hope is other than a limitation upon the _time otherwise open for ratifica no less impressive than the list of those who supported it 10 tion by the legislatures of the several States. (See vol. 65 CoN years ago. Heading it we find the President of the United GRESSIONAL RECORD, pt. 1, pp. 555~5559, 5643-5666.) In Dillon v. Gloss (256 U. S. 368, 375-376) the limitation clause so ' States and members of the Cabinet; the Governors of many inserted was seized upon by one convicted under the National Pro States, including several which have not yet ratified the hibition Act as invalidating the eighteenth amendment. The ap amendment; and the following national organizations: plication for writ of habeas corpus was denied by the Supreme Court. Mr. Justice Van Devanter, speaking for a unanimous Court, American Association of Social Workers. said: American Association of University Women. "We conclude that the fair inference or implication from article American Federation of Labor. 5 is that the ratification must be within some reasonable time American Federation of Teachers. after the proposal. American Home Economics Association. "Of the power of Congress, keeping within reasonable limits, to American Legion. fix a definite period for the ratification we entertain no doubt. As American Nurses' Association. a rule the . Constitution speaks in general terms, leaving Congress Cail).p Fire Girls. to deal with subsidiary matters of detail as the public interests and Central Conference of American Rabbis. changing conditions may require; and article V is no exception to Council of Women for Home Missions. the rUle. Whether a definite period for ratification shall be fixed Federal Council of the Churches of Christ in America. so that all may know what it is and speculation on what is area General Federation of Women's Clubs. sonable time may be avoided is, in our opinion, a matter of detail Girls' Friendly Society of America. which Congress may determine as an incident of its power to desig National Child Labor Committee. nate the mode of ratification. It is not questioned that 7 years, National Congress of Parents and Teachers. the period fixed in this instance, was reasonable if power existed National Consumers' League. to fix a definite time; nor coUld it well be questioned considering National Council of Jewish Women. the periods within which prior amendments were ratified." National Education Association. From this language two conclusions may be drawn. One is that National Federation of Settlements. a proposed amendment is not indefinitely open to ratification, but National League of Women Voters. must favorably be acted upon within a reasonable length of time National Woman's Christian Temperance Union. if the ratification is to be valid. National Women's Trade Union League. The second conclusion is that whatever content may be given Service Star Legion, Inc. to the term "reasonable time", it is some period greater than 7 The Railroad Brotherhoods. years. The argument before the Court was directed exclusively to Young Women's Christian Association. the alleged unconstitutionality of the congressional limitation of ANSWER TO BAR ASSOCIATION COMMITTEB the time of ratification. The Court was considering only the power of Congress to shorten an otherwise reasonable period for ratifi In conclusion, a word should be said -concerning a recent cation. report of a special committee of the American Bar Associa What a reasonable period might be cannot be said. Certain it is tion, which undertakes to declare the proposed amendment that it is longer than the 7-year limitation challenged in Dillon v. no longer in force because of the lapse of some 10 years since Gloss. The problem of how much longer is made more predictable if it be considered that neither laws nor amendment are uncon Congress referred it to the States and because of adverse stitutional, per se. They are declared to be unconstitutional. They action taken at one time or another by certain State legis are, further, judged as to their validity by a court which has many latures. These objections have often been advanced and as times expressed its deep reluctance to hold unconstitutional an act of Congress or of a State legislature. often have been answered. The contention is unwarranted (Fletch.er v. Peck, 6 Cranch. 87, 128; Mayor v. Cooper, 6 Wall. 247, in the deliberate judgment of American constitutional law 251; Atkin v. Kansas, 191 U. S. 207, 223; Williams v. Baltimore, 289 yers of highest standing. The argument in reply has been u. s. 36, 42, 46.) It cannot be though that this Court would invalidate a ratifica concisely stated in a brief compiled by Joseph P. Chamber tion of an amendment to the Constitution because it did not occur lain, professor of public law at Columbia University; Charles immediately after the proposal by Congress. The Constitution con C. Burlingham, former president of the Association of the tains no clear requirement that such be done. On the contrary, if Bar of the City of New York; W.W. Gardner, assistant of the its words be read literally, the amendment could not be invalidated · on this score. Other than that which establishes it as more than legislative drafting research fund, Columbia University; and 7 years, there is no decision of the Court which affords any guide Herman A. Gray, professor of law of the New York University to what is a reasonable period of time for ratification. If to invali Law School, which should perhaps be reproduced in part at date an act of Congress is a duty "of great delicacy, and only to be the conclusion of my remarks. performed where the repugnancy is clear and the confiict irrecon cilable" (Mayor v. Cooper, 6 Wall. 247, 251), how much more deli I ask that the brief referred to- may be printed in the cate would be ~he task of declaring void the action of the amending RECORD at this point. power of the Constitution itself. The PRESIDING OFFICER. Without objection, it is so RATIFICATION IS NOT BARRED BECAUSE OF PRIOR REJECTION ordered. Tl:l.e proposed child-labor amendment has been rejected by vote of both Houses in more than 13 States, and of those rejecting 6 The matter referred to is as follows: have subsequently ratified. It is argued that once having been THE PROPOSED AMENDMENT IS STILL OPEN FOR RATIFICATION rejected by 13 States the proposed amendment is automatically It is necessary at the outset to dispose of the contention that the killed. The argument runs counter to the words of the Constitu proposed amendment is no longer open for ratification. Two fac tion, the constitutional history "of the Government, the declaration tors requtre consideration: The lapse of time since the amendment of the Supreme Court, and the virtually unanimous opinion of the was proposed by Congress on June 4, 1924, and the effect of earlier text writers. rejections by a number of the States. The Constitution states that proposed amendments "shall be valid to all intents and purposes, as a part of this Constitution, RATIFICATION WITHIN THE NEXT FEW YEARS IS NOT UNREASONABLY LONG when ratified by the legislatures of three-fourths of the several AFTER THE PROPOSAL OF THE AMENDMENT States, or by conventions in three-fourths thereof." The language The Constitution itself contains no limitation upon the period of does not read," unless rejected by one-fourth of the several States." time in which the States may validly ratify an amendment proposed Nor is there specified any condition to the power of ratification. by Congress. Article V reads: The Constitution simply calls for ratification-from its words can " The Congress, whenever two-thirds of both Houses shall deem be found no indication that this ratification must be at the time it necessary, shall propose amendments to this Constitution of initial action by the legislatures. • • • which • • • shall be valid to all intents and pur The proposed amendment is by no means the first instance o! poses as part of this Constitution when ratified by the Legislatures ratification subsequent to an earlier rejection. The fourteenth of three-fourths of the several States • • • ." amendment was adopted only by virtue of ratification subsequent If the words be taken literally, an amendment once proposed to earlier rejections. Newly constituted legislatures in both North .enjoys a deathless existence until ratification. No one argues that Carolina and South Carolina, respectively, on July 4 and 9, 1868, they are to be read literally. It is, however, important to remember ratified the proposed amendment, although earlier legislatures had that any limitation which is sought to be introduced must be a rejected the proposaL The Secretary of State issued a proclama- 1738 (;ONGRESSIONAL RECORD-SENATE Jr.EBRUARY ~ tion which, though doubtful as to the effect of attempted with Maloney Nye Sheppard Tydings drawals by New York and New Jersey, entertained no doubts as to Metcalf O'Mahoney Shipstead Vandenberg the validity of the ratification by North and South Carolina (15 Minton Pope Smith VanNuys Stat. 706). The following day, July 21, 1868, Congress passed a Moore Radclitie Steiwer Wagner i·esolution which declared the fourteenth amendment to be a part Murphy Reynolds Thomas, Okla. Walsh or the · Constitution and directed the Secretary of State so to Murray Robinson Thomas, Utah Wheeler Neely Russell Townsend White promulgate it (15 Stat. 709). The Secretary w!1'1ted, howe~er , until Norbeck Schall Trammell the newly constituted Legislature of Georgia had ratified the Norris Schwellenbach Truman amendment (15 Stat. 708) subsequent to an earlier rejection (15 Stat. 710), before the promulgation of the ratification of the new The VICE PRESIDENT. Ninety Senators have answered amendment. In the 66 years which have followed, in which the to their names. A quorum is present. The question is on fourteenth amendment has become the most bitterly litigated portion of the Constitution, none has doubted the validity of its the motion of the Senator from Arkansas [Mr. RoBmsoN J to ratification. reconsider the vote by which the amendment proposed by The question ts foreclosed by this long acquiescence by the the Senator from Montana [Mr. WHEELER] was adopted. Court and by the Nation. If more be needed, it should be re Mr. ROBINSON. Mr. President, I understand there will called that there is here more than acquiescence; there is also affirmative action by Congress. And "the practical construction be further debate. The indications are that the Senate is of the Constitution by Congress • • • is entitled to great con not ready for a final vote this afternoon. I therefore ask sideration, especially in the absence of anything adverse to it in unanimous consent that when the Senate completes its the discussion of the convention which framed, and of the con ventions which ratified, the Constitution" (Veazie State Bank v. labors today it take a recess until 12 o'clock noon on Mon Fenno, 8 Wall. 533, 544). There was, it should perhaps be noted, day next; that at not later than 3 o'clock on that day the no discussion of the question here eonsidered in the cur~ory atten Senate proceed to vote on the pending motion and on all tion given the amending procedure in either the constitutional amendments that may be pending or that may be offered, convention or the Federalist. (See Madison's Debates on the Adoption of the Federal Constitution, Elliott's Ed., 18-4:5, pp. 530- and take a final vote on the bill. 531, 551; Federalist, No. -4:3.) The VICE PRESIDENT. Is there objection to the request Not only is there the action by Congress and the long acqui of the Senator from Arkansas? escence of the Court, but there is also a declaration by the Su preme Court which seems completely to foreclose any question of Mr. LONG. Mr. President, as I understand the Senator's the validity of such ratifications which follow earlier rejections. request it is that at 3 o'clock we vote on all amendments. In West Virginia, despite senate rules of procedure which forbade Mr. ROBINSON. Yes. reconsideration of a measure during the session in which it was defeated, the senate ratified the proposed nineteenth amendment Mr. LONG. I have another amendment to submit. subsequent to a rejection in the same session ( Orfield, Procedure Mr. ROBINSON. I understood the Senator had. I as of Federal Amending Power, 25 lli. Law Rev. 418, fn. 38, pp. sume that 3 hours would give ample time for conclusion of 436-7; argument of counsel, Leser v. Garnett, 66 L. Ed. 505, 506-7). The Supreme Court, in Leser v. Garnett (258 U. S. 130), the matter. The debate on the pending motion has appar refused to look behind the certification of the Secretary of State, ently been nearly exhausted. or to allow him to look behind the official notices sent him. It Mr. LONG. I do not know whether that would leave said (at 137): "As the Legislatures of Tennessee and of West Virginia had much time for consideration of my amendment or not. I power to adopt the resolutions of ratification, official notice to was about to make a suggestion of modification, that we the Secretary, duly authenticated, that they had done so, was vote on the pending motion say at 2 o'clock. conclusive upon him, and, being certified to by his proclamation, is conclusive on the courts." · ·, ' Mr. ROBINSON. I think we will be ready to vote on the Finally, it is perhaps of interest that the writers who have con pending motion before that. sidered the question are virtually unanimous in their belief that -Mr. LONG. I mean not later than 2 o'clock. an earlier rejection does not bar subsequent ratifications. Mr. ROBINSON. And take a final vote when? (See Jameson, Constitutional Conventions, sec. 579; Willoughby, the Constitutional Law of the United States, sec. 329a, v. 1, p. Mr. LONG. Let me offer my amendment. We might 593; Burdick, the Law of the American Constitution, sec. 20, dispose of it now. p. 43; Orfield, Procedure of Federal Amending Power, 25 DI. Law. Mr. ROBINSON. I think that cannot be done under the Rev. 418, 439; Dodd, Amending the Federal Constitution, 30 Yale Law J. 321, 347; Grinnel, Finality of State's Ratification of a Con parliamentary situation. stitutional Aniendment, 11 Am. Bar Assn. J. 192; Miller, Amend Mr. LONG. I should like to have a little time on my ment of the Federal Constitution, 60 Am. Law Rev. 181-184; Ames, amendment. Proposed Amendments to Constitution, p. 229; 12 Corpus Juris 6~2; Watson on the Constitution, v. 2, pp. 1315-18; Garrett, Amending Mr. ROBINSON. Let me submit a modification of my the Federal Constitution, 7 Tenn. Law Rev. 286, 294; Wheeler, May unanimous-consent request. I ask unanimous consent that Ratification Be Repealed, 20 Case and Comment 548, 550; Contra, when the Senate completes its labors today it take a recess Cadwallader, Amending the Federal Constitution, 60 Am. Law Rev. 389, 393.) until 12 o'clock noon on Monday next; that afteT the hour of 1 o'clock on Monday, February 11, debate be so limited FARM CREDIT ACT OF 1935 that no Senator shall speak more than once or longer than The Senate resumed the consideration of the bill CS. 1384) 15 minutes on the bill or any amendment or motion that to amend the Emergency Farm Mortgage Act' of 1933, to may be pending or that may be offered. amend the Federal Farm Loan Act, to amend the Agri The VICE PRESIDENT. Is there objection to the request cultural Marketing Act, and to amend the Farm Credit Act of the Senator from Arkansas? The Chair hears none, and of 1933, and for other purposes. it is so ordered. The PRESIDING OFFICER. The question is on the mo Mr. LONG. Mr. President, I send to the desk the amend tion of the Senator from Arkansas [Mr. ROBINSON] to re ment which I desire to oiler and ask that it be printed and consider the vote by which the amendment of the Senator lie on the. table. from Montana [Mr. WHEELER] was agreed to. Mr. FLETCHER. May we have the amendment read? Mr. WHEELER. I sl.Iggest the absence of a quorum. The VICE PRESIDENT. The clerk will read the amend The PRESIDING OFFICER. The clerk will call the roll. ment for the information of the Senate. The Chief Clerk called the roll, and the following Senators The CHIEF CLERK. It is proposed to insert a new para- answered to their names: · graph (f), as follows: · Adams Bulow Davis Hatch (f) Whenever any loan or part thereof made by any Fede:al Ashurst Burke Dieterich Hayden land bank, land-bank commissioner, or Federal farm-m ortgage Austin Byrd Donahey Johnson Bachman Byrnes Duffy King corporation, shall not have been paid or otherwise discharged, Balley Capper Fletcher La Follette there shall never be entered any judgment against any debtor for Bankhead Caraway Frazier Lewis any sum beyond that realized from the property mort gaged or Barbour Carey George Logan hypothecated for said loan, and deficiency judgm ents against Barkley Clark Gerry Lonergan debtors for any sum beyond the amount realized from the sale of Bilbo Connally Gibson Long the property mortgaged are specifically prohibited. Black Coolidge Glass McAdoo Bone Copeland Gore Mc Carran The VICE PRESIDENT. The amendment will be printed Borah Costigan Hale McGlll and lie on the table. Brown Couzens Harrison M.cKellar Bulk.leJ Cutting Hastings McNary Mr. LONG. It is to stop deficiency judgments. 1935 CONGRESSIONAL RECORD-SENATE 1739
WATER BOUNDARY LINES BETWEEN WASHINGTON, OREGON, AND may have considerable effect upon the attitude of the Sen IDAHO ate in reference to this nomination. Without prejudice to - Mr. BORAH. Mr. President, will the majority leader yield the nominee, but in view of the investigation which is going to enable me to call up a measure which I think will lead to on, I ask that the nomination go over until all the facts are no discussion? known. Mr. ROBINSON. Yes; though I will state to the Senator The VICE PRESIDENT. Is there objection? The Chair from Idaho that at the conclusion of the unfinished business hears none, and the nomination will be passed over. now before the Senate it is my purpose to arrange for a call THE JUDICIARY of the calendar and the consideration of bills now on the cal The Chief Clerk read the nomination of Albert C. Ben endar. However, if the Senator desires to dispose of his bill ninger to be United States marshal for the eastern district at this time, I have no objection. of New York. Mr. BORAH. The only reason why I ask it is because the The VICE PRESIDENT. Without objection, the nomina Legislature of Idaho is in session at this time. tion is confirmed. Mr. ROBINSON. Very well. Mr. BORAH. I refer to Senate Joint Resolution 23, Order PUBLIC HEALTH SERVICE of Business 51. The Chief Clerk read the nomination of Benton O. Lewis The VICE PRESIDENT. Does the Senator from Idaho to be passed assistant surgeon. request the present consideration of the joint resolution? The VICE PRESIDENT. Without objection, the nomina Mr. BORAH. I ask unanimous consent for its present tion is confirmed. consideration. The Chief Clerk read the nomination of Charles T. The VICE PRESIDENT. The title of the joint resolution Meacham, Jr., to be passed assistant surgeon. will be stated. The VICE PRESIDENT. Without objection, the nomina The CmEF CLERK. Joint resolution CS. J. Res. 23) giving tion is confirmed. consent of the Congress of the United States to the States The Chief Clerk read the nomination of Henry L. Wollen of Washington, Oregon, and Idaho, or any two of said States, weber to be passed assistant surgeon. to agree upon the jurisdiction to be exercised by said States The VICE PRESIDENT. Without objection, the nomina over boundary waters between any two or more of said tion is confirmed. States. The Chief Clerk read the nomination of David C. Elliott The VICE PRESIDENT. Is there objection to the present to be passed assistant surgeon. consideration of the joint resolution? The VICE PRESIDENT. Without objection, the nomina There being no objection, the Senate proceeded to consider tion is confirmed. the joint resolution, which was ordered to be engrossed for POSTMASTERS a third reading, read the third time, and passed, as follows: The Chief Clerk proceeded to read the nominations of Resolved, etc., The consent of the Congress is hereby given to sundry postmasters. the States of Wa-shington, Oregon, and Idaho, or any two of them, Mr. ROBINSON. I ask that the nominations of post by such agreement or compact as they may deem desirable or nec essary, or as may be evidenced by legislative acts enacted by any masters on the calendar be confirmed en bloc. two or more of said States, not in conflict with the Constitution The VICE PRESIDENT. Is there objection? The Chair of the United States or any law thereof, to determine and settle hears none, and the nominations of postmasters are con the jurisdiction to be exercised by said States, respectively, over firmed en bloc. offenses arising out of the violation of the laws of any of said States upon any of the waters forming the boundary lines between That completes the calendar. any two or more of said States, or waters through which such IN THE ARMY boundary line extends; and that the consent of the Congress be, and the same is hereby, given to the concurrent jurisdiction Mr. SHEPPARD. From the Committee on Military Affairs agreed to by the States of Oregon, Washington, and Idaho as I report back favorably a few nominations, and ask that they evidenced by the act of the Legislature of the State of Idaho be approved at this time. They are mostly routine nomina approved , 1935, the act of the Legislature of the State of Oregon approved , 1935, and the act of the Legislature of the tions. State of Washington approved , 1935. The VICE PRESIDENT. Is there objection to the request of the Senator from Texas? The Chair hears none. EXECUTIVE SESSION The Chief Clerk read the nomination of Col. Harry Lee Mr. ROBINSON. I move that the Senate proceed to the Steele, Coast Artillery Corps, to be Chief of Coast Artillery, consideration of executive business. with the rank of major general. The motion was agreed to; and the Senate proceeded to The VICE PRESIDENT. Without objection, the nomina the consideration of executive business. tion is confirmed. NOMINATIONS REFERRED AND NOMINATION WITHDRAWN The Chief Clerk read the nominations of the following The VICE PRESIDENT laid before the Senate several named officers for appointment, by transfer, in the Regular messages from the President of the United States, sub Army of the United States: mitting nominations and withdrawing a nomination, which were referred to the appropriate committees, or ordered to TO QUARTERMASTER CORPS lie on the table. . First Lt. James Edgar Macklin, 2d, Infantry (detailed in TO BE FIRST LIEUTENANT First Lt. John Hadley Fonvielle, Coast Artillery Corps, from Second Lt. David Haytor Buchanan, Infantry. February 1, 1935. The VICE PRESIDENT. Without objection, the nomina First Lt. John Bartlett Sherman, Infantry, from February tions are confirmed. 1, 1935. Mr. SHEPPARD. I ask that the President be notified. First Lt. Elmer Vaughan Stansbury, Cavalry, from Febru The VICE PRESIDENT. The Senator from Texas asks ary 1, 1935. unanimous consent that the President be notified. Is there First Lt. Joe David Moss, Coast Artillery Corps, from objection? The Chair hears none. February 1, 1935. TO BE FIRST LIEUTENANTS RECESS Mr. ROBINSON. As in legislative session I move, pur Second Lt. Stanley Walker Jones, Infantry, from J anuary suant to the order heretofore entered, that the Senate stand 31, 1935. in recess until 12 o'clock noon on Monday. Second Lt. Francis Hobdy Lynch, Infantry, from February The VICE PRESIDENT. The question is on the motion 1, 1935. of the Senator from Arkansas. Second Lt. Ronald John Pierce, Infantry, from February The motion was agreed to; and MAINE First Lt. Edward Ward Smith, Ordnance Department. from Louis A. White, Eastport. February 1, 1935. John H. McSweeney, Old Orchard Beach. First Lt. Ronald Austin Hicks, Ail' Corps, from February Henry J. Saucier. Van Buren. l, 1935. Mary Freeman. Washburn. 1935. CONGRESSIONAL RECORD-HOUSE 174l
NEW JERSEY business which would be in order on Monday next may be in Harry Kramer, Metuchen. order on Tuesday. Frank H. Moran, Middlesex. The SPEAKER. Is there objection to the request of the Russell J. Noncarrow, Morristown. gentleman from Colorado? Patricia B. Hanlon, Moil.ntain Lakes. There was no objection. Abraham G. Nelson, New Market. HUMANITARIAN LEGISLATION PUERTO RICO Mr. WELCH. Mr. Speaker, I ask unanimous consent to Alfredo F. Irizarry, Cabo Rojo. extend my own remarks in the RECORD. Julio Ramos, Cayey. The SPEAKER. Is there objection to the request of the Francisco R. Fernandez, Guayama. gentleman from California? Jose Carrera, Humacao. There was no objection. Eduvigis de la Rosa, Isabela. Mr. WELCH. Mr. Speaker, it was with great interest that Pedro Muniz Rivera, Manati. I listened to the address of the distinguished gentleman from Alberto Bravo, Mayaguez. New York [Mr. SmovrcH] on Wednesday afternoon. His Antonio Godinez, Rio Piedras. outline of the history of the development of humanitarian Felipe B. Cruz, Vieques. principles in legislation was indeed enlightening. In his zeal Simon Semidei, Yauco. to uphold the party of which he is a member, however, I am afraid he has overlooked the meritm;ious advances made in RHODE ISLAND this type of legislation made by States other than his own. Joseph E. Murray, Ashaway. I would not belittle the great Empire State for the progress Andrew J. McKean, Hillsgrove. it has made in enacting laws assisting the laboring man. Neither would I attempt to detract from the glory that be WITHDRAWAL longs to many of our great progressive and forward-looking Executive nomination withdrawn from the Senate February statesmen who have contributed to the life of the Demo 8 (legislative day of Feb. 7), 1935 cratic Party. But I do invite his attention, and the attention William T. Whittenburg, to be postmaster at Skiatook, of this House, to the fact that not New York but the great Okla. and progressive States of California and Wisconsin have been the pioneers in the type of legislation referred to by the distinguished gentleman. HOUSE OF REPRESENTATIVES In 1909, while a member of the California State Senate, FRIDAY, FEBRUARY 8, 1935 I was the author of a constitutional amendment providing for workmen's compensation. In accordance with the laws. The House met at 12 o'clock noon. of the State of California, this amendment was submitted to Rev. Dr. George B. Gilbert, rector of the Epiphany Church, the people in the next general election which occurred in Durham, Conn., offered the following prayer: the following year, 1910. By an overwhelming majority the O God, who hast' given us this wonderful world with all its people of California adopted the amendment to their State beauty and it.s boundless abundance for the needs of all constitution,. In the next session of the legislature, in 1911, Thy children, and whose spirit is always brooding over the and under the administration of that great Progressive Re hearts of Thy people, striving to enter more and more into publican leader, Senator HIRAM W. JOHNSON, who was then their lives, we beseech Thee to give us such open minds as Governor, the present workmen's compensation laws, as may enable us to receive from Thee grace and insight, to well as other humanitarian legislation, was enacted. With perceive what things we ought to do, and power to fulfill the slight amendment these laws have continued to be not only same. a part of the laws of the State but an integral part of May we feel a sense of our great responsibility, a desire California's constitution. to promote fellowship among all peoples, and a sincere long It was at about the same time that Wisconsin, under the ing to better the condition of all those in any distress. leadership of another great Progressive Republican leader, Guide our deliberations this day. We ask it in Christ's the late lamented Senator Robert M. La Follette, a former name. Amen. Governor of that State, enacted workmen's compensation The Journal of the proceedings of yesterday was read and laws for the benefit of the workingmen of that State. approved. So it will be seen that both of these States antedated New MESSAGE FROM THE PRESIDENT York in providing this type of legislation on behalf of their laboring thousands. A message in writing from the President of the United All three States should be commended for their progres States was communicated to the House by Mr. Latta, one of sive leadership in those early days of humanitarian legisla his secretaries. tion, as indeed should every other State in the Union which MESSAGE FROM THE SENATE has enacted these principles into law. A message from the Senate, by Mr. Horne, its enrolling ELECTION TO COMMITTEES clerk, announced that the Senate had passed bills of the Mr. SNELL. Mr. Speaker, I present a resolution and ask 1 following titles, in which the concurrence of the House is for its present consideration, requested: The Clerk read as follows: s. 417. An act for the relief of Fred M. Munn; House Resolution 105 S. 488. An act for the relief of Michael Ditz; and Resolved, That CHARLES A. HALLECK, of Indiana, be, and he is S. 546. An act for the relief of Miles Thomas Barrett. hereby, elected a member of the following comm.lttees of the The message also announced that the Vice President had House of Representatives, to wit, Civil Service, Pensions, and appointed Mr. SHEPPARD and Mr. CUTTING members of the World War Veterans' Legislation; and That RALPH E. CHURCH, of Illinois, be, and he is hereby, elected joint select committee on the part of the Senate, as provided a. member of the Committee on Revision of the Laws. for in the act of February 16, 1889, as amended by the act of March 2, 1895, entitled "An act to authorize and provide The SPEAKER. Is there objection to the request of the I for the disposition of useless papers in the executive depart gentleman from New York [Mr. SNELL]? · ments", for the disposition of useless papers in the War There was no objection. Department. The resolution was agreed to. ADJOURNMENT OVER REAL ESTATE BONDHOLDERS REORGANIZATIONS INVESTIGATION Mr. TAYLOR of Colorado. Mr. Speaker, I ask unanimous Mr. COCHRAN. Mr. Speaker, I present a privileged res- consent that when the House adjourn today it adjourn to olution (H. Res. 79) from the Committee on Accounts, and meet on Tuesday at noon, and that the District of Columbia ask for its immediate consideration.