1937 _CONGRESSIONAL RECORD-SENATE 333 to proclaim October 11 of each year General Pulaski's By Mr. McLAUGHLIN: A bill CH. R. 3448) granting an Memorial Day for the observance and commemoration of increase of pension to Esther J. Carpenter; to the Committee the death of Brig. Gen. Casimir Pulaski; to the Committee on Pensions. on the Judiciary. By Mr. PATTERSON: A bill CH. R. 3449) granting a By Mr. BLOOM: Joint resolution (H. J. Res. 139) author pension to Mary J. Whistler; to the Committee on Invalid izing the President of the United States of America to pro Pensions. claim October 11 of each year General Pulaski's Memorial Also, a bill (H. R. 3450) granting a pension to Olive Erwin; Day for the observance and commemoration of the death of to the Committee on Pensions. Brig. Gen. Casimir Pulaski; to the Committee on the Judici Also, a bill (H. R. 3451) for the relief of F. M. Loefiler; to ary. the Committee on Claims. By Mr. LUECKE of Michigan: Joint resolution CH. J. Res. Also, a bill BILLS AND JOINT RESOLUTION INTRODUCED -: t • ·- • .Nebr., and SiOUX ·City, Iowa; to the Committee on Commerce. Bills and a joint resolution were introduced, read the first !y ·=· ·<~fs~~-r the .relief of Robert Fix, ciara- Fix time, and, by unanimous consent, the· second time, ·and re- Nichols, Philip :Fix; and~rlrudea'lx Dalton; to the com- ferred as ~allows: . . - By Mr. ROBINSON: mittee on Indian.A.tiairs . . _.. · · dit . . By Mr. BARKLEY: _A bill (S. 974) ·to create the Capital Au · anum CommiS- A bill (8 . 999 ) granting a pension to Frank House; sion; to the Committee on Public Buildings and Grounds. . A bill A bill - EXEC~E ~SSAGES REFERRED The legislative ·clerk proceeded to read sundry nominations The VICE PRESIDENT laid before the Senate messages for promotions in the NavY. from the President of the United States, submitting sundry Mr. WALSH. Mr. President, all the remaining naval nom nominations, which were referred to the appropriate com inations are promotions made in the regular order, which mittees. have been approved by the Committee on Naval Affairs, and (For nominations this day received, see the end of Senate I ask that they be confirmed en bloc. proceedings.) The VICE PRESIDENT. Is there objection? The Chair hears none, and the other nominations in the Navy are con EXECUTIVE REPORT OF A CO~TTEE firmed en bloc. Mr. ADAMS, from the Committee on Public Lands and Surveys, reported favorably the nomination of Frank E. IN THE MARINE CORPS DeKay, of Idaho, to be register of the land office at Black The legislative clerk read the nomination of Brig. Gen. foot, Idaho, which was ordered to be placed on the Executive Thomas Holcomb to be major general commandant of the Calendar. Marine Corps. THE POSTMASTER GENERAL The VICE PRESIDENT. Without objection, the nomina The VICE PRESIDENT laid before the Senate a message tion is confirmed. from the President of the United States, which was read, as The legislative clerk read the nomination of Col. James J. Mead to be brigadier general in the Marine Corps. follows: The VICE PRESIDENT. Without objection, the nomina- THE WmTE HousE, January 22, 1937. tion is confirmed. · To the Senate of the United States: The legislative clerk proceeded .to read ·sundry nomina I nominate James A. Farley, of New York, to be Post master General. (Reappointment.> tions for promotions in the Marine Corps. Mr. WALSH. Mr. President, I ask that all the other FRANKLIN D. RoosEVELT. nominations in the Marine Corps, which have been made Mr. ROBINSON. Mr. President, there have been sent to through a selection board, and which have been approved the Senate today a number of Executive nominations, among by the Committee on Naval Affairs, be confirmed en bloc. them the nomination of Mr. James A. Farley to be Post The VICE PRESIDENT. Is there objection? The Chair master General, which has just been laid before the Senate. hears none, and the other nominations in the Marine Corps Under the custom which has prevailed in the Senate, I ask are confirmed en bloc. That completes the calendar. unanimous consent for the present consideration of the nomination. ADJOURNMENT TO TUESDAY The VICE PRESIDENT. Is there objection to the request The Senate resumed legislative session. of the Senator from Arkansas? Mr. ROBINSON. Mr. President, there is no business on Mr. McNARY. Mr. President, this is an unusual request, the calendar. I therefore move an adjournment of the Sen but probably the situation is unusual. I do not wish to ate until Tuesday next at 12 o'clock. I hope that in the have consent upon my part on this occasion construed as meantime the committees may have opportunity to con .. a precedent in the future. With this remark, I have no sider proposed legislation. objection to the confirmation of the nomination of Mr. The motion was agreed to; and UNITED STATES MARSHAL Henry M. Mullinnix Robert B. Carney Granville T. Norris, of Oklahoma, to be United States Richard W. Bates Arthur W. Radford marshal for the eastern district of Oklahoma, vice James E. Burton W. Chippendale Boyd R. Alexander Swinney, deceased. (Mr. Norris is now · serving under an .Elmer R. Henning Jesse L. Kenworthy, Jr. appointment by the court.> Irving R. Chambers Webster M. Thompson · Myron W. Hutchinson, Jr. Albert E. Schrader WORKS PROGRESS ADMINISTRATION Ralph E. Davison . Dennis L. Ryan W. S. K.ey, of Oklahoma, to be State aclniinistrator in the Don P. Moon Andrew D. Mayer Works Progress Administration for Oklahoma. Russell S. Berkey Charles T. Joy APPOINTMENTS IN THE NATIONAL GUARD OF THE UNITED STATES George F. Hussey, Jr. John E. Reinburg, Jr. GENERAL OFFICERS Thomas J. Keliher, Jr. · John A. Terhune Maj. Gen. Gilson Don Light, Ohio National Guard, to be Osborne B. Hardison Charles J. Wheeler major general, National Guard of the United States. Clinton E. Braine, Jr. Theodore T. Patterson Brig. Gen. William Lloyd Marlin, Ohio National Guard, to William M. Fechteler Samuel P. Ginder be brigadier general, National Guard of the United States. Charles A. Baker Van H. Ragsdale Gerald F. Bogan John Wilkes Leon S. Fiske Homer L. Grosskopf CONFIRMATIONS Willard A. Kitts, 3d Fred D. Kirtland Executive nominations confirmed by the Senate January Bertram J. Rodgers James M. Steele 22, 1937 Frank E. Beatty Arthur D. Burhans POSTMASTER GENERAL Gail Morgan Thomas D. Warner James A. Farley to be Postmaster General. Thorvald A. Solberg Charles P. Cecil Clifford H. Roper Calvin T. Durgin UNITED STATES. DISTRICT JUDGE. Edward P. Sauer Humbert W. Ziroli Charles C. Wyche to be United States district judge, west John H. Carson John S. Roberts ern district of South Carolina. Milton 0. Carlson Arthur C. Miles UNITED STATES DISTRICT ATTORNEYS To be lieutenant commanders Claud N. Sapp to be United States district attorney, east ... Benjamin N. Ward William B. Fletcher, Jr. em district of South Carolina. · William G. Livingstone Burton B. Biggs Oscar Henry Doyle to be United States district attorney, Charles L. Hutton Vlalter F. Boone western district of South Carolina. Jewett P. Moncure Norman 0. Schwien ASSISTANT SECRETARY OF THE NAVY Wade DeWeese George H. DeBaun Charles Edison, to be Assistant Secretary of the Navy. Allan D. Blackledge Charles J. Maguire Thomas H. Binford William L. Rees CHIEF OF NAVAL OPERATIONS Perley E. Pendleton Jesse H. Carter Admiral William D. Leahy to be Chief of Naval Operations Walton W. Smith Bern Anderson in the Department of the Navy with rank of admiral. Richard P. Glass Chru:les F. Erck PROMOTIONS IN THE NAVY John V. McElduff Edwin G. Fullinwider To be rear admirals Khem W. Palmer Edwin D. Graves, Jr. Wilson Brown Ralston S. Holmes . Elmer Kiehl Andrew P. Lawton Walter S. Anderson Charles A. Blakely Hilyer F. Gearing Joseph 0. Saurette Samuel M. Robinson Joseph J. Rochefort Harold L. Meadow Herbert C. Behner Gilbert B. Myers To be captains Roland E. Krause Lucien A. Moebus Samuel A. Clement Paul H. Bastedo John L. Murphy Heber H. McLean Walter K. Kilpatrick Andrew D. Denney Campbell Keene James R. Dudley Francis W. Rockwell Charles M. Yates Lester G. Bock . Joseph F. Bolger Sydney M. Kraus John F. Shafroth, Jr. Nolan M. Kindell Raymond D. Tarbuck Charles C. Ross Jules James Edward E. Dolecek Rupert M. Zimmerli Archer M. R. Allen John R. Beardall Delbert L. Conley William E. Sullivan Howard H. Crosby Timothy J. Keleher Nathan W. Bard Roy C. Hudson Francis Cogswell Howard B. Mecleary Harold J. McNulty Oswald S. Colclough James M. Irish Archibald H. Douglas Stanley F. Patten Lyman A. Thackrey Paul E. Speicher Willis A. Lee, Jr. Dolph C. Allen John A. Snacken berg Arthur S. Carpender William W. Wilson Robert E. Mason Carlton R. Todd James L. Kauffman David F. Ducey Francis A. Packer Thomas L. Wattles William D. Brereton, Jr. Ernest W. McKee Cyril A. Rumble Gerard F. Galpin William R. Munroe William H. Pashley Kenneth H. Noble Kenneth C. Caldwell Albert M. Penn William R. Purnell Marion R. Kelley George H. Bahm Walter E. Moore Francis J. McKenna To be commanders Edward M. Thompson Gordon B. Parks Thomas G. Peyton Tully Shelley . Charles Wellborn. Jr. Charles R. Pratt Samuel P. Jenkins Dallas D. Dupre Duncan Curry, Jr. Stuart H. Ingersoll Cornelius W. Flynn Nathaniel M. Pigman John G. Jones Rutledge B. Tompkins William Granat Horace D. Clarke ~ Ransom K .. Davis Heber .B. Brumbaugh Armit C. Thomas James E. Maher Paul R. Coloney ~ John E. Pixton Homer W. Graf Allan E. Smith James E. Hamilton Willis N. Rogers Francis S. Low Leighton Wood Clarence E. Olsen Guy Chadwick Francis M. Maile, Jr. Harvey E. Overesch Arnold J. Isbell Campbell H. Minckler Alexander S. Wotherspoon Allen G. Quynn Nealy A. Chapin Ralph B. Hunt Forrest B. Royal George C. Kriner Arthur DeL. Ayrault Clark L. Green John L. McCrea Clifford G. Richardson Daniel V. Gallery, Jr. John W. Jamison Frederick G. Richards James M. ·Lewis William R. Millis William A. Garry Marshall B. Arnold John J. Mahoney Edward E. Roth William B. Jackson, Jr. Roowell H. Blair Ralph W. Christie Wendell G. Switzer John A. Waters, Jr. 1937 .CONGRESSIONAL RECORD-SENATE 343 Timothy J. O'Brien Wilson D. Leggett, Jr~ Frank B. Schaede John A. Glick Leo L. Pace William G. Lalor William L. Anderson Gordon A. McLean Joseph C. Van Cleve John P. Womble, Jr.. Etheridge Grant Robert G. Armstrong Ralph E. Butterfield Bryan C. Harper Clarence W. McClusky, Jr. John G. Foster, Jr. Harry A. Guthrie Ralph 0. Myers Thomas F. Halloran Barron G. Lowrey William S. G. Davis Samuel W. Du Bois Wendell F. Kline Joe B. Paschal Francis X. Mcinerney Thomas F. Darden, Jr. Eugene M. Waldron George W. Campbell Sydney S. Bunting John H. Willis AlgeriJ.on S. Joyner, Jr. Theodore H. Kobey Grover B. H. Hall Byron H. Hanlon Donald L. Mills Erasmus w. Armentrout, Jr. Albert G. Cook, Jr. Joseph C. Hubbard Richard M. Boaz Paul M. Curran Sterling T. Cloughley Carl H. Bushnell Samuel M. Tucker Diggs Logan William B. McHugh · Laurence A. Abercrombie Clifford H. Duerfeldt Joseph H. Willingham, Jr. Frederick D. Kime Dashiell L. Madeira Paul W. Watson Ranson Fullinwider Roscoe L. Bowman David W. Roberts Allen R. Joyce John K. Reybold John G. Burrow Elmer A. Tarbutton Royal Lovell John L. VVoodbury Thomas J. Ryan, Jr. Silas B. Moore Louis E. French Charles Jackson Donald R. Tallman Irving D. Wiltsie Clarence 0. Taff Henry T. Dietrich Gerald D. Linke Elwood D. Poole John J. Greytn.k Walter L. Dyer William F. Fitzgerald, Jr. George D. Martin William R. Shaw EdwardS. Hutchinson Thomas J. Kelly Boynton L. Braun Jesse L. Hull Kenneth Craig John J. Curley, Jr. Wyatt Craig Stanley G. Nichols Oscar Pederson Paul E. Roswall Paul E. Pihl Henri de B. Claiborne Charles T. Singleton, Jr. William W. Juvenal Clement F. Cotton Seth A. Shepard Lawrence H. Martin Upton S. Brady, Jr. Charles E. Crombe, Jr. To be lieutenants Charles N. Day Laurence H. Frost Cornelius M. Sullivan Alvord J. Greenacre John F. Greenslade Paul H. Tobelman George J. King William G. Myers John A. Winfrey Leonard J. Dow Lynn C. Petross Nathaniel S. Prime Theodore R. Frederick Frederick C. Stelter, Jr. Francis B. McCall Wesley A. Wright William A. Dolan, Jr. Louis Shane, Jr. Arthur R. Quinn Philip Niekum, Jr. Theodore C. Aylward John Shoemaker Roy R. Ransom John L. Burnside, Jr. Ramond C. Ericson Paul L. Dudley George R. Phelan Frederick A. Davisson Eugene F. May Burnham C. McCaffree Ernest J. Davis Charles F. Horne, Jr. Harold A. Fravel Eugene S. Karpe John H. Lewis Frank O'Beirne Henry D. Rozendal Ralph D. Smith Lewis M. Markham, Jr. Walter E. Linaweaver John L. Wilfong Jacob E. Cooper Frank L. Durnell Edward N. Dodson, Jr. William Miller, Jr. Thomas F. Conley, Jr. William K. Rhodes PhilipS. Morgan, Jr. William R. Smedberg, 3d Thomas R. Langley Clanton E. Austin William J. Whiteside Doir C. Johnson Ralph E. Westbroo~ Frank W. Fenno, Jr. Walter F. Rodee _ Edwin S. Schanze Orlin L. Livdahl Richard K. Gaines John O'Shea, Jr. Heywood L. Edwards Malcolm A. Hufty Winthrop E. Terry Francis D. McCorkle Douglas V. Gladding Luther· K. Reynolds John C. Hammock Robert W. Cavenagh . __ . Francis L.. Busey Louis M. LeHardy . - - - Julian K. Morrison, Jr. James A. Morrison Warren E .. Gladdi.ng Olin P. Thomas, Jr. John Sylvester Elton W. Grenfell John M. Duke . . Louis E. Gunther William 0. Floyd Leonidas M. Matthews John P. Fitzsimmons James N. Shofner Charles H. Lyman, 3d Frederic A. Graf . John H. Simpson Charles J. Whiting Bert F. Brown John C. S. McKillip Claude W. Haman Guy B. Helmick John M. Taylor John B. McLean Henry E. Bernstei,n Robert R: DeWolfe James S. Russell Thomas M. Wolverton William R. Hollingsworth . Daniel T. Birtwell, Jr. Jesse L. Phares Welford c. Blinn James E. Lee~r . Harold J. Pohl Albert G. Mumma Charles A. Buchanan Ford N. Taylor, Jr. George G. Crissman James M. Lane Ralph E. Patterson Hilan ·Ebert Wallace J. Miller Paul D. Stroop Joseph B. Stefanac William E. Oberholtzer, Jr. Samuel J. McKee Benjamin B. C. Lovett Karl J. Biederman Theodore W. Rimer Donald A. Crandell Henry C. Bruton John F. Newman, Jr. Roy A. Gano Henry T. Hodgskin, Jr. George T. Mundorff Vilhelm K. Busck Robert R. Johnson Clifford T. Corbin Carlton B. Hutchins Charles Adair Earl K. Olsen Lewis R. Miller Robert B. Goldman William L. Pryor, Jr. John K.~ Wells Charles R. Carroll Dennis J. Sullivan Willard M. Sweetser William K. RomQser Joe B. Cochran Sidney L. Smith Clarence Broussard . Edward L. B. Weimer Hamilton W. Howe Harlan K. Perrill Herman 0. Parish Benjamin Van M. Russell Benjamin Katz Charles B. Hart Cecil L. Smith John E. Fradd Donald McGregor ..: Marvin P. Evenson Karl F. Poehlmann Robert B. Ellis Solomon D. Willingham James H. Ward Spencer A. Carlson RalphS. Clarke . Hugh D. Black Howard W. Gilmore Everett H. Still Valery Havard, Jr. Benjamin ·s. Custer Chester L. Clement Francis L. Black Charles W. Moses Benjamin R. Crosser William s. Whiteside Edward L. D. Roach, 2d Daniel J. Sweeney . Harry D. Johnston Walter C. Stahl Justus M. B. R. Armstrong Orville K. O'Daniel William T. Kenny Herald F. Stout John F. Gallaher Hamilton Hains . Will~am H. Carpenter Jesse S. McClure Charles E. Signer Robert S. Purvis, Jr. John D. Sweeney Robert B. Pirie James B. Fox Gordon Campbell Thompson P. Elliott Alexander S. McGill James F. Byrne Fondville L. Tedder Andiew H. LaForce Fitzhugh Lee Nathaniel C. Barker Mannert L. Abele Daniel B. Miller Stanton B. Dunlap John J. Crane Morton K. Fleming, Jr. John H. Brownfield Hugh P. Webster William G. Cooper Gerald D .. Zurmuehlen Joseph R. Haskin, Jr. Malcolm S. Adams Douglas H. Fax· Louis L. Vodila Duncan C. MacMillan 344 .CONGRESSIONAL~ RECORD-SENATE JANUARY 22 Charles H. Quinn Earl K. Van Swearingen Charles B. Beasley Floyd C. Camp Anderson Offutt Carl J. Pfingsta.g John T. Corwin William H. Ashford, Jr. DeWitt c. E. Hamberger David B. Young Clayton R. Dudley Mitchell D. Matthews Raymond S. Lamb . Roger F. Scott Edward N. Teall, Jr• Clarence E. Coffin, Jr. Joseph W. Callahan Frederick Funke, Jr. Richard D. Zern Frank Bruner William C. Asserson, Jr. Herbert F. Eckberg John L. De Tar Eugene B. McKinney Dwight M. Agnew Jchn William Murpm John A. Edwards Thomas J. Flynn Marvin C. Parr William C. Specht Leonard W. Bailey Alfred R. Truslow, Jr. Gale E. Griggs Frederic F. Agens Robert B. Alderman Selden G. Hooper Clifton B. Maddox James A. Jordan Myron T. Evans Walter C. Winn William White Miles H. Hubbard Thomas L. Greene Frank T. Corbin Eugene S. Sarsfield George L. Heath Charles J. Zondorak John B. Robertson, Jr. Leonard Branneman John C. Zahm James A. Prichard John Eldridge, Jr. Charles L. Carpenter Harry R. Horney Tyrrell D. Jacobs Harry H. Mcilhenny Robert R. Moore Robert C. Winters James L. Shank Albert R. Heckey John F. Walsh Daniel T. Eddy Emmanuel T: Goyette Edwin B. Robinson Earl S. Caldwell Charles D. Griffin John F. Hines, Jr. Lucius H. Chappell, Jr. Marshall B. Gurney Samuel G. Mitchell Howard W. Gordon, Jr. John E. Fitzgibbon Henry Farrow Jack Maginnis Paul R. Drouilhet Levi J. Knight, Jr. Carroll B. Jones Edward H. Eckelmeyer, Jr. Eugene E. Davis Joseph J. Carey George L. Shane Edward M. Condra, Jr. Creed C. Burlingame Wayne R. Loud Maxwell F. Leslie Brooke Schumm Robert H. Speck Louis T. Malone Norman L. Holt Jack H. Lewis Arthur K. Ehle John R. Waterman Walter H. Albach Richard W. Smith Henry R. Dozier Louis H. Hunte John W. Bays George K. Fra.Ser James W. Blanchard Courtney Shands Lawrence R. Daspit Carl L. Steiner Arthur C. W. Baskin Monroe B. Duffin Samuel H. Crittenden, Jr. Hilfort C. Owen John W. Schmidt Eugene F. McDaniel Melvyn H. McCoy Kenton E. Price Robert M. Barnes Herbert D. Riley James H. Hogg Arthur S. Born Harold T. Deutermann Jules F. ·Schumacher Paul H. Ramsey Allen Smith, Jr. Charles L. Melson Roland F. Pryce George W. Anderson, Jr. Thomas B. Klakring Edwin W. Herron Henry T. Jarrell Warren F. Graf William Loveland Thomas 0. Oberrender, Jr. Eugene L. Lugibihl Albert B. Scoles Alexander M. Kowalzyk, Jr. Arnold W. McKechnie Robert V. Hull Jack S. Holtwick, Jr. Timonthy F. Donohue Ross R. Kellerman Edward J. Drew Eliot Olsen James M. Roberts Harold M. Zemmer Francis W. McCann Welton D. Rowley Alden D. Schwarz PaulS. Depew Julian D. Greer Shirley S. Miller James G. Holloway, Jr. Robert I. F. Fravel Albert E. Fitzwilliam Francis C. Manville Rawson Bennett, 2d Theodore 0. Dahl Joseph B. Danhoff James E. Cohn Sylvius Gazze Liles W. Creighton Joe Taylor Richard H. Phillips Howard W. Taylor David C. White Renwick S. Calderhead Leonard S. Mewhinney Eldon C. Mayer Gerald R. Dyson Philip H. Ross Warner R. Edsall Harold M. Briggs Joe W. Boulware Chesley M. Hardison Clifford S. Cooper Perry K. Jeanes Emmett J. Sullivan Frank Virden William P. Chilton Seymour A. Johnson Charles K. Bergin William R. D. Nickelson, Jr. William M. Nation Carl R. Midtlyng Robert E. Dixon Myron W. Graybill Wellington A. Hammond William H. Organ George L. Hansen Emile R. Winterhaler William T. McGarry Martin P. Hottel Richard B. Levin Robert J. Foley Selman S. Bowl.iDg Fritz Gleim Frank Turner Ernest Blake Andrew H. Bergeson Earl B. Patterson Ulysses S. G. Sharp, Jr. Harry L. Hicks Raymond J. Moore Cornelius S. Seabring Eugene E. Lindsey David B. Coleman William C. Bryson Robert C. Brixner Philip A. Tague, Jr. Henry J. Armstrong, Jr. Christian H. Duborg Wallace B. Mechling Leo W. Nilan Frank M. Hammitt James R. McCormick Henry H. Caldwell Robie E. Palmer WJlliam S. Harris Lannie Conn Ernest W. Lamons Monro M. Riker Carl M. Dalton Cecil T. Caufield Paul W. Card Otis C. Gregg James S. Willis Claren E. Duke Joseph R. Hamley Louis P. Fairlamb William H. Potts Joseph N. Murphy Jack F. Bowling, Jr. William E. Ferrall Robert A. Johnson William H. Brockman, Jr. John C. Broach Robert Brodie, Jr. Jolin G. McClaughry Charles M. Heberton Martin J. Lawnince RobertS. Quackenbush, Jr. Frederic S. Habecker Bosquet N. Wev David B. Overfield Robert F. Martin William R. Ignatius Alan B. Sutherland, Jr. Edmund T. Napier, Jr. Farar B. C. Martin Howard A. Yeager Harold S. Harnly Walter H. Price Martin R. Stone Randolph B. Boyer James W. Hager Ralph Hickox PaulL. High Arthur H. Taylor Arthur E. Loeser Daniel J. Weintraub Hysell P. Cooper William E. Kaitner Robert H. Rice Robert L. Densford Harlan M. Thorpe Leland R. Lampman Howell J. Dyson Bernard M. Gates Leonidas W. Pancoast James F. Benson Jack P. Monroe Edward S. Addison • Carl F. Stillman Herbert L. Hoerner George G. Mead Doyle G. Donaho Benjamin E. Moore, Jr. Lee W. Parke John C. Woelfel Alan R. Montgomery Leonard C. Chamberlin Harry. F. Bauer Willard A. Saunders William A. Deam Delbert F. Williamson John F. Henkel Blinn Van Mater Harry J. Hardwick James A. Haley, Jr. Harry E. Day Loring 0. Shook Malen Durski Thomas J. Hamilton Argyll E. Buckley George D. Dickey Joshua W. Cooper Frederic A. Berry, Jr. Gill :M. Richardson William F. Royall Francis E. Cromwell John B. Taylor Joseph T. Hazen Thomas B. Neblett Michael P. Russillo Loren A. Morris Leon J. Barbot Thomas M. Dykers John Bailey 1937 .CONGRESSIONAL RECORD-SENATE 345 Granville A. Moore · John H. Cross Waldemar F. A. Wendt Lemuel M. Stevens, Jr. Gus B. Lofberg, Jr: Richard E. Myers Edwin S. Miller James 0. Cobb Clinton S. Rounds Wilton S. Heald Louis J. Majewski Earle C. Schneider Joseph B. Maher RobertS. Ford Richard Lane James B. Grady Robert N. Downes Calvin E. Wakeman Ralph L. Shifiey Robert H. McRae Edward P. Southwick George W. Willcox George Wendelburg Clinton J. Heath Gordon S. Everett Joseph D. McKinney Kenneth Loveland John R. Dillon John C. Atkeson Joseph R. Rubins Ernest Lee Jahncke, Jr. Ralph M. Pray Elmer G. Cooper Frank D. ·Giambattista James B. Burrow Frank V. List James J. McRoberts Thurston B. Clark Frank R. Arnold George 0. Klinsmann John E. Clark · Elmer 0. Davis Charles E. Robertson Harry M. Lindsay, ~ Jr. Marion M : Byrd William S. Maxwell James G. Franklin Charles T. Fritter Ray A. Mitchell · JamesR. Lee · Enrique D. Haskins Millener W. Thomas Harry D. Hale Robert E. Van Meter Wallace A. Schmid Bernard M. Strean Harry R: Hummer, Jr. John Quinn Hayden L. Leon Frank M. Slater William A. Sutherland, Jr. Harry E. Sears -: Theodore R. Vogeley Thomas A. Christopher Thomas C. Green - George H. Moffett JohnS. Coye, Jr. Arthur-K. Espenas John 0.-R. Coil · Harlow J. Carpenter Michael J .-Luosey Joseph I .. Manning John S. Thach Joseph Finnegan - Albert L. Shepherd George K. Hudson Francis R. Jones William S. Pye, Jr. Earnest G. Campbell (an Robert W. Leach Henry M. Marshall Thomas A. Ahroon additional number in grade> Ray Davis Robert A. Allen John A. Bole, Jr. James H. Fortune, Jr. Carl Tiedeman Arthur F. Anders William A. Schoech Frederick H. Wahlig Paul Masterton Ethan W. Allen William A. Cockell James H. Campbell Ludwell R. Pickett Donald G. Burt John F. Mullen, Jr. Robert A. Keating, ·Jr. John L. Phillips, Jr. Francis C. B. McCune William H. Jacobsen William C. Fortune Laurence H. Marks Samuel M. Pickering David L. McDonald Louis-J: Stocker George :H. Miller · John S. Tracy Cuthbert J. Bruen Jack c. Titus Robert A. Macpherson George B. ·H. Stallings 'I'heodore F. Ascherfeld Lester - C ~ Conwell, John T. Blackburn William·D. Irvin Joseph F. Quilter Charles L ..Moore, Jr. . . Raymond L. Fulton Charles W. Parker -William S. Parsons · ·Raymond B. ·Jacoby .. Joseph W. Koenig Alex MeL. Patterson William J. Millican Joseph W. Williams, Jr. John A. Gamon, Jr. David W. Shafer Wells Thompson · . Bruce E. Wiggin · _ · Selby K. Santi:nyers Patrick Henry, Jr. . · ~ Earle C. Hawk -Frederick L. AShwor-th William S. Howell· Claude L. Weigle Michael P .. Bagdanovich Antone R. Gallaher Clayton L. Miller - .. ·· Gordon L. Caswell Milton G. Johnson James M. Elliott Richard C. Gazlay · Robert E. Braddy, Jr. George P. Enright John Ramee Francis J. Smedley William W. Outerbridge Albert 0. Momm Paul W. Burton Stephen Jurika, Jr. Joseph A. Flynn Rodney B. Lair Ruben E. Wagstaff Bertram J. Prueher Milton T. Dayton Norman F. Garton Thomas H. Moorer George D. Roullard Julius F. Way William M. Searles Harry C. Maynard Thompson Black, Jr. Clarence E. Boyd John R. Pierce Murray Hanson William R. Kane James K. Averill Evan E. Fic~g Warren B. ·christie William W. R. Macdonald Albert B. Mayfield, Jr. Albert c. Burrows Joseph F. Enright Archie T. Wright, Jr. George A. Lange Robert 0. Strange Arnold· F. Schade Thomas V. Peters Clarence E. Cortner Robert C. Peden William L. Dawson John B. Weeks Glenn W. Legwen, Jr. Irwin F. Beyerly Dale Mayberry Carlton B. Jones William 0. Burch, Jr. John T. Bowers, Jr. JohnS. Lehman James J. Vaughan Glynn R. Donaho Hugh R. Nieman, Jr. Lewis M. Davis, Jr. Jay T. Palmer Alston Ramsay Daniel J. Wagner Jolin Shannon John J . McCormack, Jr. Paul D. Gross Thurmond A. Smith Henry D. Sturr Clifford M. Campbell Oscar H. Dodson Edwin B. Dexter Benjamin D. Cheatham James W. White George L. Jones, Jr. Michael F. D. Flaherty Burden R.-Hastings Donald E. Macintosh James P. Walker Rollo N. Norgaard Walter S. Bobo, Jr. Robert S. Riddell Edward R. J0hnson Robert J. Archer Philip W. Garnett John M. Steinbeck Henry F. Gorski George E. King Horace V. Bird George M. Price Charles E. Harrison George Fritschmann Irvin S. Hartman Edgar M. Davenport Paul F. Johnston John K. McCue Clarence M. Caldwell Harold E. Ruble Charles J. Hardesty, Jr. Francois C. B. Jordan Robert E. Fair Charles F. Garrison William M. Gullett ChesfOTd Brown Edwin E. Lord, 3d Walter H. Newton, Jr. To be lieutenants (junior grade) Charles B. Jackson, Jr. William E. Shafer Frank D. Schwartz Paul D. Buie Raymond W. Thompson, Jr. George H. Laird, Jr. Charles E. Loughlin Robert I. Olsen Harold G. Bowen, Jr. Ezra G. Howard Otto- W. Spahr, Jr. Edward F. Jackson Joseph H. Bourland Herbert C. Yost Hugh R. McKibbin Herbert S. Fulmer, Jr. Reginald M. Raymond Edward P. Lee, Jr. Thomas H. Morton Jay V. Chase To be ensigns Richard L. Mohan Vernon C. Turner Charles K. Phillips Martin Miller Nova B. Kiergan, Jr. Baxter L. Russell Allen B. Reed, Jr. William J. Lederer, Jr. Gordon Murphy James R. Ogden To be medical directors Bernard H. Meyer Ignatius J. Galantin Will M. Garton Jack J. Tomamichel James F. Tucker Ulys R. Webb Robert W. Curtis Charles K. Duncan Luther C. Heinz Richard L. Kibbe To be medical inspectors Francis E. Brown Thomas F. Connolly Edwin Peterson Joseph L. Schwartz Robert M. Gibbons James V. Bewick Howard H. Montgomery Oscar Davis 346 CONGRESSIONAL RECORD-SENATE JANUARY 22 William P. Mull Kenneth E. Lowman Cecil D. Riggs Sol B. E..ctes William D. Small Franklin F. Lane Jerry T. Miser Elmer L. Caveny Francis W. Carll Maurice A. Berge Phillip S. McLennan Gordon H. Ekblad Roger A. Nolan John LeR. Shipley Edwin B. Coyl John A. Workman Norman Roberts Ernest A. Daus Ralph K. Hoch Ernest C. Aulls David 0. Bowman Robert W. Wimberly Freeman C. Harris Robert C. Boyden Edward L. McDermott George A. Alden Thomas L. Allman Robert C. Douthat Lockhart D. Arbuckle Arthur S. Judy Raphael L. Weir Edward P. Madden George P. Shields John B. Farrior Edgar L. NefHen Clifford F. Storey George B. Tyler Otto W. Wickstrom Julius C. Early, Jr. To be surgeons To be assistant surgeons James F. Finnegan Caldwell J. Stuart John F. McMullin Richard R. Rail Gilbert E. Gayler Herbert L. Pugh James B. Shuler Thomas Ferwerda Frank K. Soukup Bruce M. Summers. John F. Foertner Stephen J. Ryan Willard S. Sargent Oliver A. Smith Gordon M. Perisho James G. Bulgrin Harry J. Scholtes Edward P. Kunkel Jerome F. Smith Emanuel Rollins James E. Root, Jr. Peter C. Supan RobertS. Poos Roy R. Powell William R. Manlove, Jr. Edward M. Harris, Jr. Francis L. Phillips Murray W. Ballenger Frederick C. Greaves Winfred P. Dana John L. Hatch Clark P. Jeffers Rob R: Doss Robert M. Gillett Charles F. LeComte Thomas P. Connelly James F. Hays George F. Cooper Gordon K . Lambert Marion T. Yates John M. Brewster Clifton A. Young Eric D. Pearson Marshall Cohen Walter Welham Eugene P. Harris To be passed assistant surgeons Herbert H. Eighmy Harold R. Berk Emory E. Walter Craig B. Johnson To be dental surgeons George B. Ridout Clarence L. Blew Eugene LeR. Walter Frederic McK. Ingersoll Hubert J. Van Peenen Herbert G. Shepler Ralph E. Fielding · William P. Stephens Eric G. Hoylman Joseph Connolly Andrew L. Burleigh Francis R. Bittinger Harold L. Weaver Jack R. George Arthur H. Yanda Ralph B. Putnam Thomas G. Hays Ferrell H. Johnson Joseph A. Kelly Robert R. Crees William R. Whiteford Edward C. Kenney Edward A. Hyland Hugh E. Mauldin William S. Cann John D. Foley Robert M. Askin Frank A. Richison Wilbur E. Kellum Garland A. Gray Robert R. Leamer Benjamin N. Ahl Clemens V. Rault Alfred R. Harris Frederic W. Farrar Rafael A. Vilar To be passed assistant dental surgeons Robert Faust Charles M. Parker James A. Connell Charles F. Woodard William F. E. Loftin James R. Sayers Ralph W. Taylor George H. Mills Fred Harbert William C. Baty, Jr. Glenn W. Berry Thomas E. Crowley Carey M. Smith WadeS. Rizk Arthur R. Logan Jesse B. Bancroft Guy E. Stahr Charles L. Ferguson Macy G. Martin Edwin A. Thomas Tilden I. Moe Arthur W. Eaton, Jr. Maurice A. Bliss Charles F. Hoyt Lester E. McDonald Cecil H. Coggins Merrette M. Maxwell Charles F. Lynch Edward E. Evans William M. Silliphant Jackson F. Henningsen Curtiss W. Schantz Charles B. Stringfellow Robert W. Babione Clifford E. Allen Francis V. Lydon Bishop L. Malpass Allan S. Chrisman Raymond A. Lowry Albert E. Howell Roy F. Cantrell Calvin B. Galloway Clifford C. De Ford Mack Meradith Irving J. Warmolts Orville W. Cole Lyman R. Vaughan William D. F. Stagner Otto L. Burton Frank P. Kreuz, Jr. To be assistant dental surgeons Louis E. Gilje Burr Dalton 0. Henry Alexander James R. Reid, Jr. William Seidel Frank E. Frates, Jr. John H. Bailey Karl V. L. Berglund Herman A. Gross Austin J. Walter Morris C. Craig Walter W. Lippold Edward S. Lowe Eugene V. Jobe Robert J. Vaughn Albert H. Staderman John C. Allen Wendell Naish LeRoy B. Nagel Frank P. Gilmore Paul M. Crossland Edward C. Raffetto Jesse V. Westerman Paul Vaughan Alton C. Abernethy James A. English Oscar D. Yarbrough Earl F. Evans To be pay inspectors Carr E. Bente! Clifford D. Hamrick Tucker C. Gibbs Benjamin S. Gantz James D. Boone Walter H. Schwartz Robert B. Huff Morton L. Ring Warren G. Wieand Armand J. Pereyra Malcolm G. Slarrow Vernon H. Wheeler Albert R. Behnke, Jr. George N. Raines Stephen J. Brune Louie C. English Omar J. Brown William V. Clark To be paymasters George W. Dickinson Edward T. Knowles Harold W. La shier Stephen R. Edson Samuel E. McCarty James J. V. Cammisa John Enos Wood Robert F. Batchelder John R. Weisser James L. Holland George F. Blodgett Matthias A. Roggenkamp Arthur L. Walters Kenneth H. Vinnedge Francis D. Humphrey Judson A. Millspaugh Francis M. Waldron Milton R. Wirthlin Edwin A. Eddiegorde James Chapman Thenton D. Boaz Alfred W. Eyer John T. Smith Russell H. Sullivan Melbourne N. Gilbert William L. Berkley Philip A. Haas Martin V. Brown Harvey E. Wathen Warren E. Klein Henry H. Karp Christian P. Schwarz Norris M. Hardisty Frank J. Gillette H. Joseph E. Bolt Joseph Land George Williams Cameron L. Hogan v. Richard A. Vollbrecht Gerard B. Creagh Cecil L. Andrews · Anselm C. Hahn Oran W. Chenault To be passed assistant paymasters Thomas Q. Harbour David C. Gaede Robert L. Grove William J. Nowinski James G. Net! Robert A. Cooper Clinton J. Thro Thomas W. Baker 1937 _CONGRESSIO~AL ;RECORD-SENATE 341 Walter W. Honaker Charles G. DeKay To be chief pharmacist Yates Stirling, 3d Vernon Dortch Francis M. Cornett Owen T. Rippey James J. McKinstry To be lieutenants Bion B. Bierer, Jr. Joel D. Parks Fred L. Haerlin, Jr. Noble W. Lowrie Thomas M. Whelan Thomas C. Parker Norman A. Helfrich William L. Knickerbocker Allen M. Kemper Edward A. McFall Lysle W. Cease Donald B. Hilton Otho P. Smoot Frederick P. Williams William A. Gerth Roland W. Rickertts Robert de C. Baker Phillip H. FitzGerald Mark W. Clay Theodore S. Dukeshire Benjamin F. Tompkins Harry B. Heneberger Walter E. Fratzke Charles J. Naumilket Halle C. Allan, Jr. Andrew E. Harris Murray W. Clark Preston G. Locke John J. Branson Max H. Bailey Frederic W. Hesser George M. Brydon, Jr. Allan G. Gaden John F. Delaney, Jr. John C. Bernet Theodore C. Fauntz Walter B. Davidson Hugh P. Thomson Frederick L. Hetter Tillett S. Daniel Thomas J. Kimes Harold F. Dearth Arthur B. Thompson To be assistant paymasters John B. Brown Thomas J. Hickey Jack 0. Wheat Elton W. Sutherling Charles F. Chillingworth, George P. Biggs Thomas P. O'Connell William M. Huey, Jr. Jr. James V. Query, Jr. Lamar Lee, Jr. Norbert C. Brady William S. Veeder Warren B. Sampson · Byron C. Gwinn John D. Hyerle Joseph H. Nevins, Jr. Louie L. Lindenmayer Irwin S. Moore William B. Collier, 3d Leo J. McNulty MARINE CORPS Marcus A. Peel, Jr. To be Major General Commandant of the Marine Corps To be chaplains Brig. Gen. Thomas Holcomb Razzie W. Truitt John F. Hugues To be brigadier general Francis L. Albert Vincent J. Gorski Col. James J. Meade Edward B. Harp, Jr. Michael A. Hally To be colonels Warren F. Cuthriell August F.Hohl Alley D. Rorex Joseph c. Fegan Herbert R. Trump Leander A. Clapp Alexander A. Vandegrift To be naval constructors Thomas S. Clarke Roy S. Geiger William P. Robert Andrew I. McKee To be lieutenant colonels Russell S. Hitchcock Lingurn H. Burkhead Sidney E. Dudley WilburN. Landers Louis R. Jones William M. Marshall Franklin A. Hart Grover C. Klein Carlton H. Moore William W. Ashurst Adolph B. Miller Frederick E. Haeberle Harold V. B. Madsen Francis P. Mulcahy Ralph E. Davis Edmund E. Brady, Jr. Robert M. Montague Daniel E. Campbell John L. Doxey To be assistant naval constructors Maurice G. Holmes Clyde H. Metcalf Richard K. Anderson Charles J. Palmer James E. Betts George A. Stowell John G. F. Prescott Paul W. Pfingstag James W. Webb George C. Hamner Ernest C. Holtzworth George W. Bailey Louis E. Woods James F. Moriarty Albert K. Romberg Robert L. Evans Joseph E. Flynn Robert B. Madden To be majors Ransom A. Pierce Robert A. Gallagher Frederick E. Stack John T. Selden Edward A. Wright Jack W. Roe George W. Shearer Elmer E. Hall Richard s. Mandelkorn James S. Bethea Claude A. Phillips Henry A. Carr Floyd B. Schultz Henry P. Rumble John \V. Beckett Harry B. Liversedge Charles J. Weschler Charles A. Curtze John Halla Merton J. Batchelder William R. Miller Robert E. Garrels Kenneth A. Inman George E. Monson Lester N. Medaris James W. Flett To be civil engineers Frank B. Goettge William C. Hall Greer A. Duncan Walter T. Eckberg Donald G. Oglesby Arnold C. Larsen Henry G. Taylor Richard P. Carlson Byron F. Johnson William J. Wallace Ira P. Griffen Wallace B. Short Alfred C. Cottrell Amor L. Sims Carl H. Cotter Harold MacT. Sylvester Kendal B. Bragg William Sihler To be captains Richard F. Armknecht Claire C. Seabury LePage Cronmiller, Jr. Chester B. Graham _ Harry A. Bolles William B. Howard Ion M. Bethel Benjamin F. Kaiser, Jr. William L. Richards John F. Hough Elmer H. Salzman To be assistant civil engineers Robert L. Griffin, Jr. Thomas A. Wornham Thomas B. Jordan Henry G. Clark Ralph N. Ernest Archie V. Gerard Edward L. Pugh Earle S. Davis George K. Brodie Norman J. Drustrup Lawrence Norman Roy M. Gulick Arthur I. Flaherty Earl H. Phillips Con D. Silard To be chief gunners Paul A. Putnam Ward E. Dickey Paul M. Heller Matthew C. Horner William D. Saunders, Jr. Harry T. Prosise James M. Ranck, Jr. David M. Shoup To be chief electricians Presley M. Rixey Lofton R. Henderson HowardS. Goshorn Carl W. Schumacher Lee N. Utz Walter H. Troxell George C. Broadfoot · John R. Stacey Francis J. McQuillen Thomas G. McFarland Clavis W. Durham Edward W. Snedeker John R. Lanigan To be chief radio electricians Kenneth W. Benner Raymond E. Hopper John s. E. Young Francis B. Loomis, Jr. JosephS. Campbell Kenneth H. Cornell John H. Coffman Elmer H. Stelts Arthur H. Butler Robert H. McDowell To be chief machinists Hartnoll J. Withers Thomas D. Marks Rudolph A. Petsche James L. Noonan Nels H. Nelson Wallace 0. Thompson Lawrence W. Ott George W. Buzby Russell N. Jordahl John H. Griebel 348 CONGRESSIONAL RECORD-HOUSE JANUARY~ Peter P. Schrider JohnS. Letcher Arthur P. McArthur Robert ·F. Scott James F. Shaw, Jr. Robert Br Luckey Henry L. McConnell Charles J. Seibert, 2d Edward T. Peters .Karl ·K. Louther Robert C. McGlashan Frank Shine William W. Benson Paul Drake George A. McKusick Ormond R. Simpson Raymond G. Scollin Clinton E. Fox Sidney S. McMath George T. Skinner Samuel S. Jack Harold R. Lee Lee C. Merrell, Jr. Everett_W. Smith Henry R. Paige George 0. VanOrden Philip C. Metzger John L. Smith Robert H. Rhoads Walter A. Reaves Ronald K. Miller Levi W. Smith, Jr. RobertS. Viall Louis C. Plain James E. Mills Arthur R. Stacy Ralph D. McAfee Robert L. Peterson Harold J. Mitchener John P. Stafford William M. O'Brien Kenneth H. Weir Thomas C. Moore, Jr. Jack L. Stonebanks Frank P. Pyzick Arthur F. Binney John E. Morris David W. Stonecliffe Joseph W. Earnshaw Clovis C. Coffman James C. Murray, Jr. Robert W. Thomas Walter L. J. Bayler Perry 0. Parmelee Hollis U. Mustain Zane Thompson, Jr. Marion L._Dawson, Jr. John J. Heil James L. Neefus Ellsworth G. VanOrman Harold G. Newhart Max W. Schaeffer Gene S. Neely Harry A. Waldorf Frank M. June Thomas G. Ennis Charles S. Nichols, Jr. Lewis W. Walt George H. Potter Ernest E. Pollock Frederick R. Payne, Jr. Gordon Warner Earl S. Piper Wilson T. Dodge August F. Penzold, Jr. Russell B. Warye Robert A. Olson Boeker C. Batterton Lewis H. Pickup Arthur H. Wineberger Francis M. McAlister Frank C. Croft William J. Piper, Jr. John. J. Wermuth, Jr. Jack P. Juhan Saville T. Clark - Douglas E. Reeve Cecil W. Wight Harold D. Hansen Hewin 0. Hammond George D. Rich John E. Willey JesseS. Cook, Jr. Lester S. Hamel Robert H. Richard Marlowe C. Williams Miles S. Newton Joseph J. Tavern Robert W. Rickert Roger Willock Archie E. O'Neil Joe A. Smoak Noah J. Rodeheffer William T. Wingo, Jr. Allen C. Koonce Alva B. Lasswell Thomas G. Roe Pelham B. Withers Alan Shapley William I. Phipps Lindley M. Ryan Noah P. Wood, Jr. Jefferson G. Dreyspring William F. Coleman Stephen V. Sabol Horatio C. Woodhouse, Jr. David F. O'Neill Homer C. Murray Joseph P. Sayers Erma A. Wright John C. ·Munn Frank H. Schwable DeWolf Schatzel Donald K. Yost Jaime Sabater Edward C. Dyer John F. Schoettel Carl A. Youngdale William R. Williams Melvin G. Brown Maynard C. Schultz Roger T. Carleson Manly L. Curry To be _chief marine gunner Frank G. Dailey Samuel B. Griffith, 2d Frank H. Wirsig Johnnie C. Vaughan To be first lieutenant Donald W. Fuller To be second lieutenants HOUSE OF REPRESENTATIVES Charles R. Nicholson Edward w. DuRant, Jr. FRIDAY, JANUARY 22, 1937 Stewart B. O'Neill, Jr. John H. Earle, Jr. The House met at 12 o'clock noon. Roy Robinton Lenis A. Ennis The Chaplain, Rev. James Shera Montgomery, D. D., Cliff Atkinson, Jr. Richard A. Evans offered the following prayer: Charles L. Banks William M. Ferris William H. Barba Walter N. Flournoy Almighty God, author of life and purity, help us to lay Alan M. Barclay Paul J. Fontana hold of things eternal. We come to Thy feet in prayer that Arthtir B. Barrows Glenn C. Funk we may receive grace that makes for . righteousness in the Graham H. Benson Robert E. Galer soul. We give Thee our hearty thanks for all our manifold Spencer S. Berger Allen B. Geiger blessings-so rich, so free, and. so abundant. Define for us , James G. Bishop, Jr. John H. Gill the pathway of duty and impart unto us courage to walk Orin C. Bjornsrud William E. Gise therein. 0 Lord God Most High, raging storms of destruc James S. Blais Bryghte D. Godbold tion and ruin are sweeping over large areas of land. Arise Albert H. Bohne Milo G. Haines in Thy might and stay the tragic tides of disaster, devasta George S. Bowman, Jr. Edwin L. Hamilton tion, and death. Heavenly Father, turn Thou to the home Robert W. Boyd John D. Harshberger less, according· to Thy loving kindness, and allow not the George F. Britt Johil B. Heles, Jr. water floods to overflow them, neither let the deep swallow Wade H. Britt, Jr. Daniel J. Hennessy them up. · Make haste to deliver them; come in all Thy full Otis B. Brown Howard V. Hiett ness and have compassion upon Thine own. Through Jesus Jean H. Buckner Thornton M. Hinkle Christ our Lord. Amen. Joseph 0. Butcher Russell E. Honsowetz The Journal of the proceedings of yesterday was read and Gavin C. Humphrey William R. Campbell a~proved. · Noel 0. Castle Robert J. Johnson MESSAGE FROM THE SENATE Robert Chambers, Jr. Edward W. Johnston A message from the Senate, by ·Mr. Frazier, its legislative Max C. Chapman George W. Killen clerk, announced that the Senate had passed a bill of the Stuart M. Charlesworth Kenneth A. King following title, in which the concurrence of the House is Robert W. Clark Howard G. Kirgis Francis H. Cooper Gordon H. Knott requested: S. 4. An act to authorize the coinage of 50-cent pieces in Henry H. Crockett Wood B. Kyle commemoration of the three hundredth anniversary of the William L. Crouch Oscar K. LaRoque, Jr. Fred H. Lemmer original Norfolk, Va., land grant and the two hundredth Howard L. Davis anniversary of tl;le establishment of the city of Norfolk, Va., Robert M. Dean, Jr. Tom C. Lomnis John F. Dobbin Marion M. Magruder as a borough. Malcolm 0. Donhoo Leonard M. Mason MESSAGE FROM THE PRESIDENT Edward H. Drake Henry S. Massie, Jr. A message in writing from the President of the United Charles F. Duchein Charles w. MaY: States was communicated to the House by Mr. Latta, one of 1937 CONGRESSIONAL RECORD-HOUSE 349 his secretaries, who also informed the House that on January Under a long-standing neutrality policy, which, after the 18, 1937, the President approved and signed a joint resolu outbreak of the war, could not be altered, our Government tion of the House of the following title: permitted the sale of munitions theoretically to either side H. J. Res. 106. Joint resolution to exempt from the tax on actually only to that side which controlled the seas-in other admissions amounts paid for admission tickets sold by au words, the Allies. thority of the Committee on Inaugural Ceremonies on the Our Government permitted American ships to carry muni occasion of the inauguration of the President-elect in Janu tions and armed our merchant vessels. ary 1937. Our Government permitted American citizens to travel on SESSIONS OF COMMITTEE ON WAYS AND MEANS ships-ours and belligerents'-armed or carrying munitions. Mr. COOPER. Mr. Speaker, I ask unanimous consent that These policies under modem conditions of warfare meant the Committee on Ways and Means may have permission to loss of American shipping and American lives. The old claim sit during the sessions of the House during this session of to neutral trade rights was based on the assumption that Congress at such times as may be deemed necessary by the contraband goods were limited to supplies intended for the committee. use of armies; that ships could be searched at sea to deter The SPEAKER. Is there objection to the request of the mine whether they carried contraband; and that passengers gentleman from Tennessee? could be removed before the sinking of a ship. The vital There was no objection. part played by civilian populations in modern war extends the list of contraband goods to practically all supplies to ROBERTA SLEE belligerents, while the use of submarines and airplanes makes Mr. WARREN. Mr. Speaker, a few days ago the House search of ships and removal of passengers impossible. Even passed House Resolution 49. The first name of the person British and American naval officers ·are agreed that belliger to be benefited was incorrectly handed to me. ents are entitled "to prevent any neutral commerce that will I ask unanimous consent that the proceedings by which aid the enemy in prosecuting the war." House Resolution 49 was passed be vacated and that the Our policy in regard to loans and credits to belligerents resolution be laid on the table. was determined without congressional or public discussion by The SPEAKER. Is there objection to the request of the the President and Cabinet. gentleman from North Carolina? Tne steps by which administration policies, unknown to There was no objection. the people or not understood by them, brought about a situa Mr. WARREN. Mr. Speaker, I now offer a privileged reso tion in which our financial stake in allied victory was of lution from the Committee on Accounts and ask for its decisive importance were revealed by the Nye committee and immediate consideration. are set forth by Charles Beard in The Devil Theory of War. The Clerk read as follows: They were as follows: House Resolution 81 The belligerent governments found themselves unable to Resolved, That there shall be paid out of the contingent fund of pay for purchases in this country with gold or with imports. the House to Roberta Slee, widow of Richard B. Slee, late an The French Government sought a loan through the House of employee of the House, an amount equal to 6 months' compensa tion, and an additional amount not to exceed $250 to defray Morgan, which approached Secretary Bryan for his opinion. funeral expenses of the said Richard B. Slee. Bryan expressed to President Wilson the opinion that "money is the worst of all contrabands", and that if loans were made The resolution was agreed to. "powerful financial interests" would make it difficult to main NEUTRALITY LEGISLATION tain neutrality. In agreement with the President, Secretary . The SPEAKER. Under the special order of the House, the Bryan notified the Morgan interests that "loans made by gentleman from Connecticut [Mr. KoPPLEMANN] is recognized American bankers to any foreign nation which is at war are for 30 minutes. inconsistent with the true spirit of neutrality." Mr. KOPPLEMANN. Mr. Speaker, today the problem of Mr. Lansing, counselor of the State Department at this keeping the United States out of war is the concern of every time, advised Secretary Bryan that there was no legal objec American citizen. Few times in history has the question so tion to financing such a loan. The banking interests, blocked occupied the minds of our citizens and the attention of our in making loans, then sought for a way to supply credits. public press. This Congress is charged with the responsi This time they approached Mr. Lansing, over Secretary bility of formulating a neutrality program to replace the Bryan's head, saying that they wished to stimulate the un existing temporary legislation which expires on May 1. Im precedented volume of business, and, continuing, they said, mediate action is necessary. We must have adequate dis "If we allow these purchases to go elsewhere, we will have cussion for a full understanding of this problem and its neglected our foreign trade at the time of our greatest need relation to America. and greatest opportunity. The business I have attempted to If we are to prevent the United States from being forced describe to you we deem necessary to the general good." into another foreign war, we must shut off the road which Here was the cry for profits in preference to peace. led us into the last one. _ Mr. Lansing appealed to President Wilson. Mr. Wilson That is why we must revise our neutrality policy, authorized Mr. Lansing, upon the express understanding On January 5 I introduced H. R. 1491, which bill, if that he was not speaking with the authority of the Presi enacted into law, to my mind, will give the American people dent, to give to such persons as were "entitled to hear them" the neutrality they want. the "impression" that they were free to go ahead and extend No· neutrality law, however it is framed, can prevent our credits. In turn Mr. Lansing gave this impression to the taking part in a war if the issues are such that the people Morgan Co. of this country wish to give their lives in support of one Within a few months the Allies had stretched their short side or the other. A mandatory law, such as I propose, term credits to the limit and the British pound was slip would, however, protect the rank' and file of American cit ping. This meant less business for the ·clients of American izens against being forced into war as a consequence of banks. Benjamin Strong, of the New York Federal Reserve policies to protect.financial and other interests. Bank, wrote Colonel House on August 14, 1915, that because It is possible, of course, that the United States would of the decline in the pound there was "danger of a decrease have entered the last war-as some claim that it did enter in our export business." for purely idealistic reasons. But it is also true that this The bankers again began pressing for a loan to the Allies Government, at the risk of war, followed policies for the to financ.e purchases in this country through Mr. Lansing, protection of trade and finance that Congress had, in impor who had by that time become Secretary of State. tant instances, no opportunity to discuss, and the people no Mr. McADoo, as Secretary of the Treasury, wrote the opportunity to reject or acQept. These policies made inevi President a letter on August 21, 1915, which said: table our ultimate involvement in the war. Our prosperity is dependent upon our continued and enlarged What were these policies? In addition to permitting loans foreign trade. We must do everything we can to assist our cu.s- and credits- 350 CONGRESSIONAL RECORD-HOUSE JANUARY 22 ·tamers to buy. To maintain our prosperity we must finance it, The bill, for good reason, was regarded as unsatisfactory. otherwise we must stop and that would be disastrous. Therefore it was provided with an expiration date on Febru - Again we heard the cry of profits in preference to peace. ary 29, 1936. On August 25, Secretary Lansing wrote the President, say By the time it became necessary to renew the law public ing: opinion had vigorously expressed itself. A bill embodying The large debts which result from purchases by belllgerent gov the mandatory principle and extending the provisiQns of the ernments require some method of funding these debts in' this neutrality law was submitted in Congress. It met opposi country. • • • We are face to face with what appears to be a tion from those who wish embargoes to apply to aggressor critical economic situation, which can only be relieved appar ently by the investment of American capital in foreign loans to States only and from those who wish to return to our old be used in liquidating the enormous balance of trade in favor of policy of "freedom of the seas." A legislative combat en the United States. Can we afford to let a declaration as to our sued. The result was another. compromise and further conception of "the true spirit of neutrality" made in the first days of the war stand in the way of our national interests, which temporary legislation which expires May 1 of this year. seem to be seriously threatened? The provisions of the first law were, however, extended in important respects. Not only munitions but loans and Now, it is no longer a mere cry for profits in preference credits to belligerents were prohibited. The new law con to peace. It is a demand for them. tinued the prohibition against American vessels carrying On August 26, the President wrote Secretary Lansing that munitions to belligerents and strengthened the provision in he could convey "orally" to the bankers the opinion that regard to travel by American citizens on vessels carrying the Government would take no action either for or against munitions to belligerents. Also it strengthened the provi their making a loan to the belligerents. sion in regard to travel by American citizens on vessels of Loan after loan was floated to obtain American money to belligerents by calling upon the President to prohibit such pay for American goods. American financial interests now travel whenever he should find it endangered the mainte had millions at stake in the victory of the Allies. With the nance of peace. But it failed to provide any control for war collapse of the Russian Government, that victory was threat materials other than munitions and did not prohibit Ameri ened. Ambassador Page, on March 5, 1917, cabled President can vessels from entering war zones. It also failed to make Wilson, describing the weak financial condition of England, its provisions apply to countries engaged in civil war. and saying: . As I said, this present law expires on May 1, 1937. Now There will be almost a cessation of trans-Atlantic trade. This we must write a new law. If the new law is to offer protec will, of course, cause a panic in the United States. Perhaps our going to war is the only way in which our present prominent trade tion against recognized dangers of entanglement in foreign position can be maintained and a panic averted. wars it must embargo munitions and loans and credits to all belligerents; it must give the President power to embargo Here we have the inevitable result of the demand for other war materials, with the provision that all embargoes profits in preference to peace. shall be enforced against both sides; it must provide that The business that we did with the Allies, according to the American citizens retain no interest in shipments of goods Morgan company, prior to April1, 1917, ·amounted to $7,000,- after they leave our ports; it must prohibit American citizens 000,000. The World War has cost us, up to June 30, 1935, from traveling on the vessels of belligerents; it must provide $41,947,000,000, and the cost is still going up. that American vessels or citizens entering war zones will By 1935, disclosures by the Nye committee and studies by not have the protection of this 9'overnmerit. historians as to the real situation in this country at the The provisions of the law must apply to all fighting forces time of our entrance into the World War, led to a demand whether engaged in internatioqal or civil war. in Congress for · a revision of our neutrality policy. The The application of the neutrality law to civil strife, after demand was intensified by the threatening situation then the necessary proclamation by the President, would be in existing in Europe. The question was: What neutrality line with the policy of nonintervention developed in thls policy would give protection against a repetition of our hemisphere. Further, in the present world situation civil entanglement in the World War? war is potentially world war and cannot be treated other Mr. O'CONNOR of Montana. Mr. Speaker, will the gen wise. tleman yield? The argument that the shipment of airplanes to Spain Mr. KOPPLEMANN. I yield. proved the necessity for discretionary neutrality legislation Mr. O'CONNOR of Montana. Is it not a fact that the completely ignored the actual facts of the situation. Had Democratic platform provides, and is it not a fact that the present law applied to civil as well as international war, President Roosevelt in a speech delivered about a year ago the embargo against the sale of munitions would have pre committed the Democratic Party to the principle of peace vented the shipment to Spain. It was this omission in the above profits? law that created the difficulty. Mr. KOPPLEMANN. It is; and the purpose of my mes In addition to this weakness, the present law does not sage to the Congress this morning is to make certain that provide any control over war supplies other than munitions. that pronouncement by our President and the Democratic Since the essential requirements of belligerents cover many platform shall be kept. other articles than munitions, it is necessary that the possi In general, the President and State Department desired bility of embargoing these materials exist. It is equally nec a discretionary neutrality law, leaving it to the President essary that sales of any supplies to belligerents shall be so to decide whether embargoes should be applied; and if ap controlled that American citizens do not acquire a financial plied, whether they should be against one or both sides in a stake in the victory of either side. conflict. This would have made it possible to avoid the In the question of mandatory versus discretionary legisla dangers encountered during the Wotld War, but would not tion, there are two important questions involved. have provided certainty that those dangers would be avoided. (1) Which type of legislation will best protect this country Congressional leaders demanded mandatory legislation against the events and policies which meant its entanglement requiring embargoes on arms, ammunitions, and implements in the World War? _ - of war against all belligerents. The law adopted merely (2) Which type of legislation is in closest accord with the embodied the mandatory principle. So far as real neutral constitutional grant of the war-making power of Congress? ity is concerned, so far as guarding us against the dangers If the President is given discretion to apply embargoes to of our World War experience is concerned, it was far from one side only in any conflict, the World War situation will complete. All it did was to prohibit the sale of any form be duplicated, when, through control of the seas, the Allies of munitions to belligerents. It prohibited American vessels alone were able to obtain supplies from this country. If aP from carrying weapons of war destined for belligerents. It plication of embargoes to one side is made under the name gave the President power to prohibit travel by American of sanctions or collective security, the situation is, practi citizens on vessels of belligerents. cally, the same, since it is clear that belligerents against 1937 CONGRESSIONAL EECORD-HOUSE 351 whom sanctions are applied will regard them as tantamount ever is done after war breaks out is bound to be regarded as to war. unfair by one side or the other. Discretionary neutrality would, therefore, amount to tak Temporary legislation, -which may expire at a critical ing the war-making power away from Congress and giving moment, is undesirable for the same reasons, and the new it to the Executive. law should be enacted without any expiration date. Those who favor discretionary power· for the President Mr. Speaker, the need for a clear-cut policy is immediate. have attempted to interpret the Supreme Court's decision in I have submitted a bill, H. R. 1491, "to preserve the neutrality regard to the Chaco embargo law, in which the wide dis of the United States in armed conflicts occurring outside its cretionary powers of the President in foreign affairs were territorial limits to which it is not a party and to define the emphasized, as support for giving him greater discretion in obligations of citizens and nationals of the United States in a new neutrality law. This argument fails entirely to dis respect to such conflicts." tinguish between the conduct of foreign affairs and the war This bill is now in the hands of the Foreign Affairs Com making power. mittee of the House. I urge each and every Representative The application of embargoes to war supplies other than here to read carefully this measure, for I feel that this bill munitions calls · for a certain discretion on the part of the contains the essential elements so necessary in our foreign President, since the importance of supplies will vary ac policy if we are desirous of making real neutrality legislation cording to the countries involved. But while there should during this session. The way to peace for America lies in be discretion as to which other supplies are to be embargoed, true neutrality. [Applause.] it should be mandatory that whatever embargoes are en CONTINUATION OF RECONSTRUCTION FINANCE CORPORATION forced shall be enforced against all belligerents. Mr. O'CONNOR of New York. Mr. Speaker, I call up There is no question that any trade with belligerents, if House Resolution 79. we are to avoid the danger of war, must be carried on at The Clerk read as follows: the risk of the foreign purchasers, and with American ship pers retaining no right or interest in articles exported. House Resolution 79 The argument of opponents of strict neutrality legisla Resolved, That upon the adoption of this resolution it shall be tion, that the people of this country would not tolerate the in order to move that the House resolve itself into the Committee of the Whole House on the state of the Union for consideration of economic loss involved in the necessary curtailment of war H: R. 2301, a bill to continue the functions of the Reconstruction trade, ·is contradicted by these facts: 90 percent of Ameri Finance Corporation, and for other purposes, and all points of can business concerns, according to ·our President, accepted order against said bill are hereby waived. That after general de bate, which shall be confined to the bill and shall continue not the mere advice, not supported by law, of the State Depart to exceed 2¥2 hours, to be equally divided and controlled by the ment, that in patriotic support of the peace interests of chairman and ranking minority member of the Committee on this country, munitions should not be shipped to Spain. Banking and Currency, the bill shall-be read for amendment under Moreover, at the annual convention of the National the 5-minute rule. At the conclusion of the reading of the bill for_ amendment the Committee shall rise and report the same to the Grange, the farming interests of the country adopted a reso House with such amendments as may have been adopted, and the lution calling for "stronger neutrality legislation to include previous· question shall be considered as ordered on the bill and embargoes on basic war materials", while the master of the amendments thereto to final passage without intervening motion Grange, Louis J. Taber, said fu his opening address: · except one motion to recommit, with or without instructions. We must make lllegal for export all munitions and raw materials Mr. O'CONNOR of New York. Mr. Speaker, I yield 30 that are essential to war. This will mean that agriculture must minutes to the gentleman from Massachusetts [Mr. MARTIN]. make a sacrifice, because cotton, wheat, and fats are as essential to Mr. Speaker, this is a rule for the consideration ·of H. R. war as are gunpowder, steel, and munitions. 2301, a bill to 'continue the functions of the Reconstruction · Opponents of mandatory neutrality also claim that such Finance-Corporation and four other -agencies of the Gov- a policy means-··the refusal of ·the United ·states to ·accept ernment. · · ' · - its responsibility for world peace. On the . contrary, only Mr. Speaker, in the hearing before the Rules Committee mandatory legislation will definitely throw -the influence of yesterday we called the attention of the four members of the this country against war. By serving notice on the world · Committee on Banking and Currency to the fact that ·there that the-United States can no longer be used as a -base of was an identical Senate bill which had passed the Senate supplies for war, we will exert pressure on all governments and was on the Speaker's desk. We asked precisely whether to find some adjustment for conflicts short of war. or not the request was to report the House bill ·or the Senate From the point of view of the League, powers which might bill, explaining that it would be more expeditious to report desire to apply sanctions, if it is a question of a large num the Senate bill. We were informed by the representatives of ber of powers acting against one, their great need is to be the-committee that they wanted the House bill reported. assured that the United States will not aid or abet the We could not understand why, but we were told it was the aggressor. Only mandatory legislation can give them that House bill they asked to have reported, and therefore we assurance. reported the House bill. If the application of sanctions results, as all indications Of course, the expeditious way to advance the legislation are that it would result, in a division of the world into two would be to report the Senate bill. I have now been in more or less equal hostile camps, there can be no question formed by the chairman of the Committee on Banking and but that the result would be just. such another conflict as Currency, who was not present at the meeting yesterday; the World War. that-some error was made. and that the committee desires It would be senseless to say that war can be prevented to offer the Senate bill. by the threat that the -United States will apply embargoes -I therefore ask unanimous consent that House Resolution against aggressors only. This would be assuming, contrary 79 be amended by· inserting, in line 4, "S. 415" in lieu of to history, that a government, reduced to a desperate situa ''H. R. 2301." tion, would avoid war even at the risk of its own overthrow. - The SPEAKER; Is there objection to the request of the It would be assuming, contrary to history, that the people genileman from New York? of a nation would prefer permanent economic insecurity to · -Mr. MARTIN of· Massachusetts. Reserving the right to war. If the status quo is such that it breeds war, it is up object, Mr. Speaker, the gentleman from New York says there to the nations which are profiting from the status quo to is no difference between the Senate bill and the House bill? initiate changes which will breed peace instead. Mr. O'CONNOR of New York. We were so informed by The World War showed clearly the difficulty of adopting a the members of the committee yesterday. We were informed policy toward belligerents after the outbreak of a con:flict. that they were identical bills. I have not made the com Nor should an Executive be placed, or desire to be placed, in parison. a position where various forces will attempt to exert pressure · Mr. MAR-TIN of Massachusetts. Having that informa to determine national policy in their own interest. What- . tion yesterday and the committee not reporting out the 352 _CONGRESSIONAL RECORD-HOUSE ~ANUARY 22 Senate bill, why should the gentleman now a.sk the House ta continuance. But the popularity of a good agency should make the Senate bill in order? not be made the vehicle for favorable consideration to a Mr. O'CONNOR of New York. Because I have just been less worthy agency. requested by the committee to do so. The minority requested in the consideration of this meas Mr. MARTIN of Massachusetts. Does the gentleman ure at least 3 hours of debate, but the best we could get think that is sufiicient need for this exceptional procedure? was two hours and a half. Think of that-two hours and The · SPEAKER. Is there objection to the request of the a half in which to consider the continuance of five impor gentleman from New York? tant agencies of the Government. This means 15 minutes Mr. MARTIN of Massachusetts. Further reserving the for each agency. There are 435 Members of Congress, yet right to object, Mr. Speaker, unless I can get a better ex we are given only 150 minutes to consider this most impor planation than bas already been given, I will be obliged to tant legislation. We are particularly justified in our criti .. object for the moment. cism of this lack of time when we realize that although Mr. O'CONNOR of New York. I have been trying to ex Congress has been in session 14 days, only two measures plain all I know about it. I desired to report the Senate have been considered. We have had plenty of time to talk bill yesterday, but the committee was insistent on reporting about anything that might come to the imagination of the the House bill. individual legislator, but when it comes to the considera Mr. REILLY. Mr. Speaker, will the gentleman yield? tion of important legislation we are refused adequate Mr. O'CONNOR of New York. I yield. time thoroughly to discuss the details of the measure. An Mr. REILLY. I was called to appear before the committee effort has also been made to stampede us into ha.sty action; yesterday as the ranking member who was not under the demanding that this bill be passed immediately on the weather at that time. I knew nothing about what the gentle ground that it is necessary because the agency will expire man from Alabama [Mr. STEAGALL] desired. I told the chair on February 1. Everyone knows, however, that the law pro man I knew nothing about it. Then one of the clerks in the vides the Reconstruction Finance Corporation may continue office said that the gentleman from Alabama [Mr. STEAGALL] 1 year to liquidate. without any further legislation; and I requested the House bill. The gentleman from Alabama said believe that at the present time no new loans are being that was a mistake, that he never requested the House bill. made, or at least very few loans are being made. This indi So the committee at no time-yesterday exPressed a desire to cates there is no real need of haste, yet we are stampeded have the House bill. Our statement was that we did not into passing the legislation before the Members can thor.. know what the gentleman from Alabama wanted in the way oughly digest it. of reporting the bill. There has been a great deal of criticism because Congress Mr. MARTIN of Massachusetts. Mr. Speaker, I do not has not drafted its own legislation. I rejoiced when I first want to be too technical about this matter, but it indicates looked at this bill, because I saw at the top of H. R. 2301 how in trying to hurry legislation we do not take time enough this sentence: to know where we are going. While I am not going to object Mr. STEAGALL introduced the following bill, which was ·referred in this instance, I serve notice now that hereafter, when a to the Committee on Banking and Currency. committee comes before the House, it should know exactly I thought that was fine, for I knew Mr. STEAGALL to be a what it wants to do. splendid legislator and an expert on banking and currency; Mr. STEAGALL. Mr. Speaker, I was not able to attend I knew if he drafted the legislation it would appeal to the the meeting of the Rules Committee yesterday, I have House. Then I happened to read a record of the hearings been confi!led to my bed all the week until yesterday. I before the committee and came to a point where the chair .. phoned the clerk of the Committee on Banking and Currency man interrupted the witness, Mr. Alley, with the statement: and told him to pass the word that the rule should provide Let me ask you right there-! have not read this bill. for consideration of the Senate bill, because that bill had That is the record; the chairman of the committee had not already passed the Senate and was identical with the House read the bill. I must conclude, consequently, that the old bill. I am sorry about this error. It grew out of the situation order of the last 3 years is being continued; someone down which I have mentioned. in these bureaus writes out the legislation and brings it up Mr. RICH. Mr. Speaker, reserving the right to object, I to Congress asking us to 0. K. it and pass it without changing may make the observation that so far as I can see the major the dotting of an "i" or the crossing of a "t." When I looked ity Members have been waiting to see what the White House further at the bill I was gratified to know it was not the wanted before they acted. creation of the gentleman from Alabama. I do not believe Mr. WITHROW. Mr. Speaker, reserving the right to if he drafted the measure he would have given the President object, would consideration of the Senate bill instead of the of the United States the additional power granted in this House bill in any way restrict the Members of the House in bill. The bill provides if the President of the United States making amendments further than they are restricted under feels the Reconstruction Finance Corporation is making loans the rule? that he personally does not agree with he can, by an order, Mr. O'CONNOR of New York. No; not at all. The bills demand that they cease making these loans. Now, I do not are identical, and this is an open rule which permits of believe he should have this coercive power over an agency amendment. supposed to be nonpartisan and devoted to the rehabilitation The SPEAKER. Is there objection to the request of the of the industrial life of the Nation. gentleman from New York? Members of Congress who have been fighting for loans to There was no objection. small industry, Members of Congress who have advocated Mr. MARTIN of Massachusetts. Mr. Speaker, of late loans for the purpose of continuing poor schools, Members there has been criticism because Congress has lost a good from the West who believe in irrigation and reclamation deal of its old legislative standing. There has been criticism projects may well consider whether or not they want the because we have abdicated a great deal of the power orig President of the United States to have this additional power. inally invested in the House. There has been criticiSm Of course, the President has the power to suspend the whole because we have failed to give the consideration to legisla organization at the present time, but he now asks for specific tion which is essential for good government. This bill and power to provide he may direct just how the organization the time given for debate justifies, in large measure, much shall make its loans. I would not think the House would of this criticism. want to give the additional authority. I do not believe the We have a bill today to continue five distinct agencies of gentleman from Alabama [Mr. STEAGALL], if he drafted this the Government. This positively is not in the interest of legislation, would want to continue this Export and Import good government. If any one of these agencies has proved Authority on the evidence presented to his committee. its merit during its tenure of office, that agency ought to Mr. Speaker, this is an agency of some substantial size. come here alone and on its own feet and b~ granted a It is interesting to read the hearings concerning it. On page 1937 CONGRESSIONAL RECORD-HOUSE 353 21 of the hearings the gentleman from Michigan [Mr. WoL Mr. MARTIN of Massachusetts. The taxpayer is only re: coTT] asked this question: membered around election time. There seems to be a lot of mystery about the Export and Import Mr. BOILEAU. Will the gentleman yield? Bank. I do not think there is any mystery as far as I am Mr. MARTIN of Massachusetts. I yield to the gentleman concerned. from ·Wisconsin. Here is the reply of Mr. Jones: Mr. BOILEAU. It has been my understanding that under They have been doing about as much business as you could do the Reconstruction Finance Corporation law now in effect with your vest pocket. the R. F. C. may make loans only when private capital is not That is the answer of Mr. Jones, of the Reconstruction available. Is that the gentleman's understanding? Finance Corporation, who is identified with the Export and Mr. MARTIN of Massachusetts. That was the theory Import Bank. upon which the agency was established; that is, it would not Mr. ROBSION of Kentucky. Mr. Speaker, will the gentle- make loans except when private capital was not available. man yield? · It was also expected it would not make loans to a new in Mr. MARTIN of Massachusetts. In just a moment. dustry which would compete with another industry of the They are doing only enough business to carry in your vest same kind, but we found they loaned millions to create a pocket, according to their own admission. Nevertheless, the new concern to compete with other concerns in distress. Bureau has a president who draws a salary of $10,000 a year. Mr. BOILEAU. If my understanding is correct, it seems It has an examiner who draws a salary of $6,000. It has an to me the proviso in section 1 is rather ridiculous, because assistant secretary drawing a salary of $2,700 a year. While under the law the Board cannot make loans when private I have never been over there, I venture the opinion they capital is available. In section 1 it states that the President have plenty of secretaries and clerks, and I would not be at could authorize the Directors to .suspend the exercising of all surprised if they had two or three messengers and two this power, but it would seem to me that language is su or three colored gentlemen who sit outside the doors to let perfluous and should not be in the bill, if my understanding them know when any danger is approaching. of the present law is correct. Mr. Jones was asked why we should continue this particu Mr. MARTIN of Massachusetts. I cannot say definitely. lar agency. He admits it is not doing anything. He admits Mr. BOILEAU. It is confusing and does not mean any it is not going to do anything. His reply was he wanted this thing. power because he might n~ed it in the future. Mr. MARTIN of Massachusetts. There may still be some Mr. Speaker, I ask both the Democrats and Republicans reason for loans in some sections of the. country. if that is fair to the taxpayers. Do you want these expendi Mr. PIERCE. Will the gentleman yield? tun~s to continue, with this evidence? We talk about econ Mr. MARTIN of Massachusetts. I yield to the gentleman omy. We talk about efficiency. By and by you will be from Oregon. cutting off someone who is on relief or some poor veteran. Mr. PIERCE. The statement the gentleman made that You will be in here talking of economizing; now, right here they did not make loans to small industries must be an is an agency that is not doing anything. The Chairman error. There have been many thousands of dollars lent in admits it is not doing anything. He admits it has not done the Pacific Northwest, particularly to the lumber industry. anything, yet you are going to keep it in existence at great There was a pledge within the last week in the district of expense to hard-pressed taxpayers. the gentleman from Oregon [Mr. MoTTl involving some Mr. Speaker, I now yield to the gentleman from Ken $650,000. . tucky [Mr. ROBSION]. Mr. ROBSION of Kentucky. How long has it been since Mr. MARTIN of Massachusetts. They made these loans the Reconstruction Finance Corporation ceased making in September or October? loans? Mr. PIERCE. No; this last one was a pledge within the Mr. MARTIN of Massachusetts. I could not answer the last week, to my knowledge. questio'n. I think they are still making some loans. If Mr. MARTIN of Massachusetts. I congratulate the gen the gentleman asks me how long has it been since they tleman on his influence with the organization. made a loan to a small manufacturer or to a small in Mr. DIRKSEN and Mr. MICHENER rose. dustry, I will answer that they have made precious few. Mr. MARTIN of Massachusetts. Mr. Speaker, I yield to All of its efforts have been directed toward the large the gentleman from Illinois [Mr. Dm.KsEN]. banks, the insurance companies, and the public utilities; Mr. DIRKSEN. I may say with respect to the inquiry of but as far as actually being of service to the small manu my friend from Wisconsin [Mr. BoiLEAU] in regard to the facturers of this country is concerned, it has never con language of the bill, the authority conferred upon the Presi tributed anything. I do not want to minimize the value of dent to suspend the operations of any one of the subdivisions the stabilizing aid rendered, but it has failed to do what it of the R. F. C. virtually gives him power, as a matter of should have done for small business. practical operation, to terminate the R. F. C. Mr. ROBSION of Kentucky. What has the Export-Import Mr. BOILEAU. If the gentlEiman from Massachusetts will Bank done? permit, it is my understanding, although I may be in error Mr. MARTIN of Massachusetts. All they have done is about this, and for this reason I want some enlightenment what could be put in your vest pocket. So states Mr. Jones. from some member of the committee-- I do not know how much that is. Mr. DIRKSEN. I am not a member of the Committee on Mr. ROBSION of Kentucky To what extent, if at all, · Banking and Currency now. I was a member of that com have the expenses of the Reconstruction Finance Corpora mittee. tion and the Export-Import Bank been reduced? Mr. BOILEAU. I know the gentleman was a member of Mr. MARTIN of Massachusetts. I believe the gentleman the committee. Under the original law, as I understand, it is an optimist when he asks that question. I do not know was not the policy at least of the R. F. C. to make loans where of one single bureau in Washington during the last 3 years there was sufficient capital available for that type of loan, that has reduced its expenses one dollar. and it was my impression that they were not permitted Mr. ROBSION of Kentucky. U they admit they are not under the law to make such loans. I know it is not their going ahead and are not likely to perform any service in policy to do so, and when I was trying to assist a certain the next year or two, it seems to me, and I refer to the corporation to obtain a loan I was informed they could not Reconstruction Finance Corporation and the Export-Import make the loan because there was capital available for that Bank, that their expenses should be reduced for the benefit type of loan. of the taxpayers of the country. A recent report of the Mr. DIRKSEN. It was rather in the nature of discretion Treasury shows that our deficit from July to the present time ary authority conferred upon the R. F. C. to be exercised in is more than $1,500,000,000. the interest of the country. LXXXI-23 354 CONGRESSIONAL RECORD-HOUSE JANUARY 22 Mr. BOILEAU. I do not want to impose upon the gentle · already, the Electric Home and Farm Authority is a corpora man from Massachusetts, but, if he will permit, I would like tion created by Executive order, organized under the laws of to have the matter clarified by having the chairman of the Delaware, and is engaged in the private business -of peddling committee state what is the present law in that respect. electric fixtures and supplies. When it gets an order from a Mr. MARTIN of Massachusetts. I think the gentleman power company it accepts the assignment of the papers with can explain that in his own time. I now yield to the gentle out recourse on the power company, so that the power com man from Michigan. pany is released and the Government holds the bag. Why Mr. MICHENER. I simply desired to call attention to the does not the gentleman extend his amendment so as to manner in which this bill is drawn. I am not surprised eliminate all of these subsidiaries and let the R. F. C. go on as when I find the chairman of the committee had never read a lending institution? the bill when it was before the committee. The Department Mr. MARTIN of Massachusetts. The gentleman has made drew the bill. The Department sent up instructions tell a fine contribution to the debate. I stated in the beginning ing the committee how to draw the bill, what to insert and of my remarks I believed every one of these agencies should what to strike out, and the committee in its wisdom wanted be brought up separately and should stand or fall on their to agree witlr what the Department said and, evidently fear own merits. If it is a good agency, no one ought to fear its ing they might do something wrong if they changed it, they fate in the House, which is 4 to 1 Democratic. I would cer followed the formula and included in the bill a formula to tainly be willing to have this procedure, but I am not opti strike out and insert, and therefore this bill, without reading mistic enough to think my motion would prevail. the original law, is meaningless. I shall speak of this more Mr. CRAWFORD. Has the Import-Export Bank done any in detail at greater length later. business at all since Mr. Peek resigned? · Mr. MARTIN of Massachusetts. Mr. Speaker, I am going Mr. MARTIN of Massachusetts. I cannot say definitely to offer an amendment to strike out the provision for the about that. I am not opposed to granting this rule. It is a continuation of the Export-Import Bank. I admit I am subject that should be considered, but I regret that we do not not optimistic about the fate of the amendment, because I have ample time to debate the question thoroughly. I have heard it said there has been organized in the House an hope when it comes up under the 5-minute rule a spirit of administration battalion of 250. I have been told this patriotism will prevail in the ranks of the majority party. battalion is going to see the President gets everything he Let us consider each agency and the increased power to the wants. I do not know whether this is true or not, and I find President solely upon merit. it difficult to find a ~ood reason'for its existence. Certainly Mr. STEAGALL. I will suggest to the gentleman that it cannot be on account of the 89 Members on this side of we will be able to save a little more time if we adopt the the House. So it must be someone is afraid of some of the rule now. Democrats. I shall offer my amendment in order to give Mr. O'CONNOR of New York. Does the gentleman from you a chance to eliminate at least one commission that is Massachusetts want to use any more time? . not needed, if you want to make one small, feeble gesture Mr. MARTIN of Massachusetts. Yes; I have one other toward economy. speaker. Mr. McCORMACK and Mr. MAY rose. Mr. O'CONNOR of New York. How much time, Mr. Mr. MARTIN of Massachusetts. I yield first to my distin Speaker, has been used? guished friend from Massachusetts. The SPEAKER. The gentleman from Massachusetts has Mr. McCORMACK. Will my diJtinguished friend from 10 minutes remaining. Massachusetts advise us where he got that information? Mr. MARTIN of Massachusetts. Mr. Speaker, I yield 10 • Mr. MARTIN of Massachusetts. I may inform the gentle minutes to the gentleman, from Pennsylvania [Mr. RicH]. Mr. RICH. Members of the House, we are asked to grant man I read it in the. newspapers. a rule to extend the time for the existence of the Reconstruc-. Mr. McCORMACK. Does the gentleman always rely on tion Finance Corporation and four other organizations. I the newspapers? want to call your attention to a letter sent the committee Mr. MARTIN of Massachusetts. That is about the only on January 15 by the Reconstruction Finance Corporation to source of information a good many of us Republicans have the Chairman of the Banking and Currency Committee on such a matter. [Mr. STEAGALL] from Jesse H. Jones. Mr. McCORMACK. And, based on a newspaper story,· the I read from the second page of the letter as follows: gentleman then made a definite statement? Our policy for the past year or more has been to assist and Mr. MARTIN of Massachusetts. The gentleman did not encourage applicants in· getting their loans from private sources understand what I said or he would not make that observa where possible rather than by making them ourselves. The fact tion. I said if this report · is true, then I have not much that we are in a position to make the loans enables us to do this, in many cases. optimism as to what will be the fate of my amendment. We are liquidating as rapidly as is consistent with the best Mr. McCORMACK. Whether the statement is true or not, interests of our borrowers, and the best interest of the country. the gentleman does not know? The Chairman of the Reconstruction Finance Corporation Mr. MARTIN of Massachusetts. Does the gentleman know states that they are trying to have the people of the country whether it is true or not? Let us have it out right here. borrow from the banks as they are trying to liquidate. Now, Mr. McCORMACK. So far as the gentleman from Massa somebody from somewhere has sent in a new request that chusetts who is now speaking is concerned, the first time he we continue the Reconstruction Finance Corporation for heard of any such thing was when the gentleman from 2% years, one-half · year after the expiration of this Massachusetts [Mr. MARTIN] stated it a moment ago. • Congress. Why do they want this extension of time? Mr. MARTIN of Massachusetts. The gentleman has been No reason has been given for such an extension. How many busy with the inauguration and probably has not kept up applications have they before them? Who wants to borrow, with the times. [Laughter .J and how much do they want to borrow? Let them furnish Mr. McCORMACK. I think the gentleman from Massa this information. chusetts would know something about what was going on in Let me read what the investigating committee for con that respect in the House here. solidation and organization of the Government agencies Mr. MAY. Mr. Speaker, will the gentleman yield? in the last Senate states. This comes from that excellent Mr. MARTIN of Massachusetts. Certainly. committee on the other side of the Capitol. This investiga Mr. MAY. I would like to ask the gentleman from Massa tion reveals this fact. I will only read one or two sentences: chusetts, if he is going to offer an amendment to eliminate We as Members of Congress, are trustees for the taxpayers' the Import-Export Bank, why he does not extend the amend dollars and our obligation is to make it buy the fullest value. ment to include all four of the additional agencies, including The manifold activities of Government must be systematized and directed with maximum emclency. the Electric Home and Farm Authority; and for his informa No essential agency should be starved, bu~ saving should be tion I would like to tell the gentleman, if he does not know it found in consolidation and simplification. 1937 CONGRESSIONAL RECORD-HOUSE, 355 Now, this Senate investigating committee reveals to Mem have the Speaker of the House of Representatives as well. bers of Congress that there are 24 lending agencies in the Texas has the chairman of the Committee on Agriculture. Government. Texas has the chairman of the Committee on Appropriations. I heard a prominent man on the Democratic side of this Texas has the chairman of Elections No. 1 Committee. Texas House of Representatives say yesterday that we have too had the chairman of Interstate and Foreign Commerce. many organizations in our Government, and that we should Texas has the chairman of the Judiciary Committee. Texas simplify the Government agencies. I say to you gentlemen has the chairman of Public Buildings and Grounds Com of Congress that if you do not simplify the agencies of the mittee. Texas has the chairman of the Rivers and Harbors Government, your responsibility is to this extent that be Committee. Texas has the chairman of Special Committee cause this Congress does not act, you are going to wreck of Investigation of American Retail Federation and Trade the Government. You admit it but you will not act. I do Practices. Texas has the chairman of the Select Committee not say that because I want to say anything detrimental to to Investigate the Executive Agencies of the Government. Congress, but the responsibility is upon the Congress now to The great question is, Are we going to build the Capital of simplify the agencies of government. Yet we come in here, the United States in Texas, and if so, will New York be a and from some unknown source, or at least it has not been county of Texas, will Pennsylvania be a county of Texas or revealed by the majority, we have presented to us a request will Texas still be a part of the United States? to extend the time of these various Government agencies I do not think one State should take all the national hon for 2% years. What right have we to do it? What is the ors. What right had the Democratic Party to give the House actual need? I want somebody on the Democratic side of the majority leader to Texas, when the person in line for the House to explain to me why and for what reason we have honor came from New York State? Mr. Speaker, let me requests from Government institutions or departments in show you in another way what I mean. See what the New this country demanding that we continue the R. F. C. for 2 Y2 Deal campaign committee of Texas said about that State years, when · the Chairman of that institution, Mr. Jesse receiving $1,000,000,000 from the Federal Government Jones, says that they are trying to liquidate it now. If that is through theN. E. C.; and I quote: the case, we do not need to keep the R. F. C. and these four When this fund of $1,000,000,000 sent to Texas is analyzed, com other agencies in operation. We can very well turn them pared, and contrasted, it presents an unusual picture. For in over to some of those other agencies and let them liquidate stance, the Roosevelt-Garner administration gave to Texas 4,000 times the amount sought as a campaign contribution in this State, in an orderly procedure and do away with much of our Gov which is. only $250,000. Expressed in another way, Texas is asked· ernment overhead and duplication spoken of in the Senate to give but one-fortieth of 1 percent of the $1,000,000,000 toward investigation committee. the campaign war chest. Again, itmeans $167 per capita, that sum going to every man, woman, and child in Texas. Another side of. I know that 2 or 3 years ago I went to the R. F. C. and the picture, the Washington government gave to Texas 10 times tried to get them to loan money to a small corporation the total annual expenditures of the State government, for, in and I never worked harder in my life· to ·get $3,500 than I round numbers, the State government costs $100,000,000 a year. did for that concern in my district. The $3,500 would have Now, gentlemen, is not that something for the people of been a revolving fund to employ 60 men for a year or more. Texas to gloat over? The agent of the R. F. C. said they ought to grant the loan, Spoils for Texas and taxes for New York; spoils for Texas but when the time came to grant it the directors would not and taxes for Pennsylvania; spoils for Texas and taxes for do it. i did everything but guarantee that loan or make it Illinois. Well, it looks to me as if all Northern States will myself. That is what the R. F. C. does for the little fel have taxes and some Southern States will have the spoils. low. They just ·do not grant loans to the little fellow and I call it selfishness. · today the big fellow does not need the R. F. c.; he can get [Here the gavel fell.] the loans from the banks. Mr. O'CONNOR of New York. Mr. Speaker, I move the Somebody said on the floor that they just loaned $600,000 previous question on the resolution. to a lumber company in his State. The banks of this country The previous question was ordered. have lots of money, and the fellow that can put up security The reso~ution was agreed to. enough to get a loan from the R. F. C. can get a loan from the Mr. STEAGALL. Mr. Speaker, I move that the House re banks. They want to loan their money, and it is hot diffi solve itself into the Committee of the Whole House on the. cult for a concern that has proper security to get money at state of the Union for the consideration of the bill - Mr. STEAGALL. I do not so consider it. Mr. STEAGALL. It is not desirable that we set up a gov~ Mr. MAY. Mr. Chairman, will the gentleman yield? ernmental board or agency with authority to engage in Mr. STEAGALL. I yield. certain lines of business, and clothe that board with au Mr. MAY. I voted for the original Reconstruction Finance thority or to confer upon the. board the right by arbitrary Corporation Act. I think the Reconstruction Finance judgment to terminate a function of government established Corporation has been a great organization, and I would like by Congress. - to vote for the continuance of this Corporation naked, as it Mr. BOILEAU. The language of the pending bill would was when we created it. I do not like to vote for it with a empower the President to authorize the directors to suspend lot of other agencies in its coat pockets. certain of its functions. As I understand, these other four agencies, the Commodity Mr. STEAGALL. I do not agree with the gentleman's Credit Corporation, the Electric Home and Farm Authority, viewpoint. the Reconstruction Finance Corporation Mortgage Co., and Mr. FORD of california. Mr. Chairman, will the gentle the export bank were all created separately from the Recon man yield? struction Finance Corporation by Executive orders of the Mr. STEAGALL. I yield. President and incorporated under the laws of Delaware or Mr. FORD of California. Perhaps I can offer a suggestion the District of Columbia, as the case may have been. · The to the gentleman from Wisconsin. last sentence of the bill, subsection (b) of section 2, contams Mr. BOILEAU. I should be pleased to have it. this language: Mr. FORD of California. Under this authorization to The agencies referred to in the acts referred to in subdivision suspend any of the different classes of loans, the purpose back (a) of this section, and the RFC Mortgage Co., shall be deemed to be established by or pursuant to law within the meaning of of it is probably this, that once an order to suspend is section 7 (a) of the First Deficiency Appropriation Act, fiscal year authorized, the Corparation will no longer have to engage 1936. in the long and expensive routine of examining that -class Why does not that expression in this legislation give con of loan. When request for a loan of that character came gressional or legislative authority to these four agencies and up heretofore, the Corporation was obliged to examine the continue them as creatures of the Congress instead of crea loan and in the end did not make the loan. If the Cor tures of Executive order or as private corporations? poration is authorized to suspend loans to these various Mr. STEAGALL. Unquestionably, the legislation carries types of loan-we do not know that any will be suspended; forward the existence of these corporations and with the· but if they should be suspended it would greatly curtail the relationship they now bear to the Reconstruction Finance trouble and expense of the Board. Corporation. Mr. BOILEAU. The languitge does not read that they are Mr. MAY. They are merely agencies, or loopholes, through authorized and directed; it reads merely "authorized." I am which the R. F. C. is lending money; is that the idea? wondering if it has the same effect as the words "authorized Mr. STEAGALL. It may be expressed that way. · and directed"? . Mr. MAY. Why does not the R. F. C. lend the money Mr. STEAGALL. Undoubtedly it is going to have the directly on its own initiative without the use of these same effect. It is quite possible that there has not bee..~ agencies? the most lawyerlike use of language, but the practical situ Mr. REITLY. Because Congress authorized them to estab- ation is the same. It will work out easily and with the lish agencies. same results. If the President authorized the Board to Mr. MAY. And then they are established by Executive terminate loans to any class of borrowers the Board would order 1'ather than by act of Congress, do so, just as though the language read "authorized and Mr. BOILEAU. Mr. Chairman, will the gentleman yield? directed." Mr. STEAGALL. I yield. Mr. BOILEAU. The point is that under this language the Mr. BOILEAU. I ask the chairman of the committee for same authority will be vested in the Board which they now information. Is it not a fact that under existing law, if the exercise. They now have authority under these same con R. F. c. Board finds that there is credit available in the ditions to refuse this type of loan. We are merely giving community, or credit available fOI' the type of loon sought, the President the power to authorize them to do the thing that this Corporation is authorized to refuse the loan? Is we are now authoTized to do. It seems to me the language not the purpose of the R. F. C. .to make loans only where is very clear. private capital is not available? - Mr. STEAGALL. I have already stated to the gentle Mr. STEAGALL. I do not think that particular language man that the limitation that loans were to be made only was included in the original R. F. C. Act. It was included in when it was found that funds through other channels were the provision for loans to industry. If it had not been in not available, has not been employed except in the instance cluded, of course, the same rule would have been applied in of loans to industry. That is an answer to the suggestion the nature of things, for that is the only common-sense way of the gentleman. · in which to handle it. · Mr. BOILEAU. I know there have been loans turned Mr. BOILEAU. At any rate, under present law, should down for that same purpose, because I have bad them the Board find that credit is available, they are authorized turned down in my district. to refuse the loan. are th.ey not? Mr. STEAGALL. They are authorized to do that anyhow. Mr. KNUTSON. Will the gentleman yield? Mr. Mr. BOIT..EAU. That is the point I am trying to make. STEAGALL. I yield to the gentleman from Minne With that understanding, why is this language necessary?- sota. Mr. -KNUTSON. I have not had an opportunity to read when from time to time during such period the President finds, upon a report of the board of directors of the Corporation or other the hearings. I am wondering whether they have been wise, that credit for any class of borrowers to which the Corporation printed?· - is authorized to lend is sumciently available from private sources Mr. STEAGALL. Yes; they are in print. to meet legitimate demands upon fair terms and rates, the Presi dent may authorize the directors to suspend the exercise by the Mr. KNUTSON. We are busy in our committee at the Corporation of any such lending authority for such time or times present time. · as he may deem advisable. Mr. STEAGALL. The gentleman may read the hearings. In other words, it does not direct the Board to cease the He wm find them interesting. granting of loans; it empowers the President under certain Mr. KNUTSON. I am sure I will and I shall. I read in conditions to authorize the R. F. C. to suspend making this a paper a while ago that the R. F. C. had advanced $4,000,000 type of loan. In other words, he can authorize them to to establish a kraft paper industry down in Arkansas when refuse to make the same kind of loans they are now author the kraft paper mills all over the country were complaining ized to refuse to make. I cannot see what purpose is to be that the field was already full and that the production was served by this language in the pending bill. more thari enough to take care of the present consumption. 358 CONGRESSIONAL RECORD-HOUSE .JANUARY 22 Has the gentleman any information in reference to that Mr. Chairman, so far as the Mortgage Co. is concerned, matter? the authority does not terminate except as the Corporation · Mr. STEAGALL. Of course, my friend attempts to point terminat~s. It is not in the same class in that regard as out one single transaction of this Corporation out of the is the case with reference to the Export-Import Bank, the billions of dollars of business that has been done by the Electric Home and Farm Authority, the Commodity Credit Corporation, and the gentleman predicates his question upon Corporation, and others. newspaper reports which I have not' read and with reference I am sure that the Members of the House, especially those to a detail with which I am not familiar, as the gentleman who represent agricultural constituencies, appreciate the must understand. great importance of continuing the support that has been Mr. MOTT. Will the gentleman yield? given heretofore to the Commodity Credit Corporation. I Mr. STEAGALL. I yield to the gentleman from Oregon. call the attention of the Members of the House to the im Mr. MOTr. For my own information I would like to get portance of the 'work that has been so carefully conducted a little further light on the point raised by the minority by the Commodity Credit Corporation. leader. May I ask the gentleman if the language of the This Corporation makes loans upon the security of agri original act giving blanket authority to the President to cultural commodities for the purpose of financing the carry suspend or terminate the operations of this Corporation is ing and orderly marketing of such commodities. Its policy repealed by any language in the pending bill? has been to make loans only on such commodities as are des Mr. STEAGALL. I imagine the authority perhaps would ignated by the President. Loans have been made on cotton, still exist. That would be a matter of legal construction. corn, tobacco, and gum rosin, and gum turpentine. But in any event, I do not understand we have enlarged the Commodity Credit Corporation was originally created as powers of the President when we say he may exercise this an emergency agency under the laws of the State of Dela power as to a certain class of borrowers without having to ware pursuant to Executive order of the President dated exercise it as to all classes of borrowers eligible for loans. October 16, 1933. The original capital of $3,000,000 was sub Mr. MOTT. The point of my question is, if the authority scribed and is held jointly by the Secretary of Agriculture given by the original act is not repealed by this act, then and the Governor of the Farm Credit Administration for the that authority would still exist, notwithstanding the enact use and benefit of the United States. By the act of Jan ment of this bill. uary 31, 1935, its functions were extended to April 1, 1937, or Mr. STEAGALL. As I have previously stated to the gen such earlier date as the President might fix by Executive tleman from New York, one reason for the employment of order. Pursuant to a joint resolution of April 10, 1936, its language used in the present act is to meet a possible diffi capital was increased to $100,000,000, the ·additional capital culty involved in a legislative attempt to confer blanket au stock being purchased by the Reconstruction Finance Cor thority upon the President to terminate a Government poration. agency at his own will. . An extension of its functions is deemed necessary in order Mr. MOTT. I thi.nk I see the gentleman's point. But if to permit the orderly liquidation of the pledged commodities that is the case, why not repeal in this act the blanket au now held by the Corporation ~nd to preserve an agency for thority given in the original act to terminate this Corpora the making of loans of the character mentioned above. tion and simply retain the authority that may be given in Commodity Credit Corporation, since its organization, has the pending legislation? made approximately the number of loans listed below in the Mr. STEAGALL. I do not think this provision auto approximate amounts shown below: matically repeals it. It is the opinion of good lawYers the original provision is not binding anyway. Total num Aggregate Mr. MOTr. Does the gentleman think that blanket au Type of borrower ber of loans amount thority ought to be repealed or retained? Mr. STEAGALL. I think the present language is what Cotton growers. ____ ------1, 833, 067 $392, 105, 294. 86 Corn farmers·------244, 519 14.5, 537, 175. 44 has always been em:;;>loyed because this language is designed Producers of turpentine and rosin______7, 500 7, 123, 51 1. 21 to restrict the President to such action as carries out the Tobaeco cooperative associations ______------8, 251,615. 10 Producers~ pooL ••. ------51, 415, 841. 82 will of the Congress and surely Members of Congress should 1------1------not object to this method of assuring the integrity of the TotaL. __ ------2, 085, 086 604, 433, 438. 43 legislative intent. Mr. MOTT. Why not content ourselves with the author The total amount of loans outstanding as of December 31, ity given in the other act? 1936, amounted to $212,727,596.28. Mr. STEAGALL. I think that is a repetition of a ques- The Electric Home and Farm Authority has aided in the tion already asked. purchase of electrical appliances on behalf of people who Mr. DONDERO. Mr. Chairman, will the gentleman yield? were unable to pay cash. The Authority has worked in Mr. STEAGALL. I yield to the gentleman from Michigan. cooperation with manufacturers, dealers, and the utilities. Mr. DONDERO. Could the directors of the R. F. C. sus- It bas rendered a great service, not alone in the matter of pend credit to any class of borrowers under the language of d.il'ect aid extended but indirectly in the matter of interest section 1 without an order from the President of the United rates and in the matter of the utility rates, which have been States so to do? reduced. · Mr. STEAGALL. That is not the purpose of the legisla Eighteen thousand nine hundred and seventy loans have tion and I cannot see how it could be so construed. been made, with an ' average of $160, involving an aggregate Mr. DONDERO. That would practically place in his amount of $3,028,666. There have been no losses, and ·our hands the power to decide the policies of the R. F. C. advice is that there is practically no delinquent paper. Over Mr. STEAGALL. It might be said he has that power 2,000 loans, involving over $1,463,000, have been repaid. when the act gives the President authority to name the The Electric Home and Farm Authority is an integral part Board. of th6 Government's low rate, high volume power policy, and Mr. DONDERO. Would the gentleman be willing to an essential part of it. It is helpful in the matter of utility - ag-ree to an amendment striking out the word "suspend" charges and in interest rates charged to borrowers and has and place in lieu thereof the word "terminate"? resulted in enlarged use of electrical household appliances. Mr. STEAGALL. I could not agree to any change in the The R. F. C. has not made any loans to the Electric Home bill. There are many reasons for my inability to meet that and Farm Authority. I believe the record shows they have suggestion. made no loans whatever. They have been ready to do so and Mr. Chairman, I am not going to consume much more have made committals for loans, but the fact that the R. F. C. time. I desire to conclude without yielding for further stands back of this Authority enables the Authority to obtain questions. credit through regular channels, and withdrawal of the sup~ • 1~37 CONGRESSIONAL RECORD-HOUSE 359 po~c; of the Reconstruction Finance Corporation would cer committals for loans which they are never required to make. tainly cripple the Authority very seriously in its operations. As soon as it develops that the applicant can get necessary Mr·. MAY. Mr. Chairman, will the gentleman Yield? accommodations at the R. F. C. a bank comes along and Mr. STEAGALL. Yes; for a question. takes over the loan, and the best service that the R. F. c. Mr. MAY. Does not the Electric Home and Farm Au is rendering the country now is in being able to bring about thority get its money direct from the R. F. C.? normal accommodations on the part of lending institutions Mr. STEAGALL. No; the Electric Home and Farm Au and banks, due to the fact that the Corporation stands by thority was set up out of a fund that was supplied out of ready to take care of any difficulties that may arise. a $100,000,000 fund which the Congress placed at the dis Mr. RANKIN. Mr. Chairman, will the gentleman yield? posal of the Executive in connection with N. R. A. activities, Mr. STEAGALL. I yield to the gentleman from Missis as I recall, and I think the amount is $8,500,000, which they sippi. have employed up to this time. Mr. RANKIN. I want to correct the gentleman from Mr. MAY. I may say for the information of the gentleman Kentucky [Mr. MAY], who stated a moment ago that the that it appeared last year in the Military Affairs Committee Electric Home and Farm Authority goes out and sells these hearings that the R. F. C. had made an authorization to the appliances. The Electric Home and Farm Authority only Electric Home and Farm Authority of $10,000,000. finances the dealer who sells these appliances and takes the Mr. STEAGALL. I just stated that the R. F. C.-- notes which the dealer endorses with recourse. Mr. MAY. Just a moment; I am not through with my Mr. STEAGALL. Yes . . statement. It was testified by the directors of the Tennessee Mr. RANKIN. And it is one of the best ·agencies of this Valley Authority, who are likewise the directors of the Electric Government. Home and Farm Authority, that they did have this credit Mr. STEAGALL. Now, as to the Export Bank, it has ex with the R. F. C. tended 90-day credits in connection with the export of Mr. STEAGALL. I thought I stated that the R. F. C. had agricultural products, especially cotton and tobacco, where made committals to the Electric Home and Farm Authority such facilities were not available through private financial for loans, but the actual loans had not been made and that institutions; and where conditions make longer credits es in large part desired results have been accomplished without sential or desirable, the bank has provided them. Such the use of the funds of the corporation. short-term accommodations have usually been arranged by .Mr. MAY. Did the gentleman ascertain, or attempt to as appointing the exporter's own bank a.s agent to accept and certain, in the hearings before his committee, whether or discount drafts of the foreign purchasers or banks for and not the Electric Home and Farm Authority, when they go on behalf of the Export-Import Bank. This procedure is out to sell appliances through .an agency, the agency or the in line with the general policy of supplementing rather. than dealer takes a note and assigns that note to the Electric Home competing with the activities of commercial banks and has and Farm Authority and gets the money from it without the added virtue of maintaining established trade channels. recourse on the dealer? It is believed that this particular type of business can be Mr. STEAGALL. Just the opposite is the fact. The Elec greatly expanded to the substantial benefit of the Nation's tric Home and Farm Authority only protects the loan to the domestic economy. amount of 80 percent, and they require the endorsement of Second, the bank has extended credit directly to Amer .the dealer along with the purchaser, and the loan is likewise ican firms desiring to export industrial products, particularly secured by chattel mortgage rights covering the property sold. heavY machinery and railway equipment. Until recently Mr. MAY. I have undertaken since early last week to get the durable-goods industries have exhibited a high per a statement from the Electric Home and Farm Authority and centage of unemployment, and, while there is a wide demand the R. F. C. with respect to the annual report of that con abroad for their products, competition from foreign sources cern, and I have been unable to get it. Can the gentleman has been very keen. tell me where I can get the information? The practice of the bank has been to offer credit terms in Mr. STEAGALL. If the gentleman will call at my office, specific cases approaching those available to foreign com I think I can give him a report that will contain all the petitors, which usually run from 1 to 5 years; and in some information he has in mind. It has been supplied to the cases the bank bas agreed to assume a !)ortion of the risk Banking and Currency Committee. without recourse to the American manufacturer or exporter. Mr. HILL of Alabama. Mr. Chairman, will the gentleman These transactions have usually been accomplished through yield? the purchase by the bank of the obligations of the foreign . Mr. STEAGALL. I yield to the gentleman from _Alabama. purchaser, representing up to 50 percent of the credit ex Mr. HILL of Alabama. I simply wish to say that the gen tended such purchaser by the American seller. In excep tleman from Alabama [Mr. STEAGALL] has correctly given tional cases the bank has increased its participation up to the facts. The Electric Home and Farm Authority has not 65 percent of the credit so extended. received one ·dollar from the R. F. C. It is borrowing today, Third. The bank has approved loans to American exporters without any difficulty whatever, from private banks at very whose working capital has been reduced because of the fail low rates of interest. At times it has been getting money for ure of foreign governments to provide their own nationals three-fourths of 1 percent. .with sufficient exchange to permit them to meet their dollar Mr. STEAGALL. All of which is quite true, but might not obligations. Advances of this character are only made be true if the Authority did not have the support of the against the guaranty of the foreign government concerned or R. F. C., ready to come to its aid in case of necessity. of a responsible foreign bank, or both. In these situations Mr. COX. May I say to the gentleman also that the recourse for the full amotint is retained against the American R. F.- C. gave the authority or the commitment for $10,000,- exporter concerned. 000, but it has not used any part of the commitment. In addition to the foregoing, obligations arising from for · Mr. STEAGALL. That is true. I thought I had so stated: eign commercial transactions held by other governmental Mr. COX. And may I make the further observation that agencies have been consolidated in the bank. Thus the bank there is evidently no ambition on the part of this Authority has purchased during the past year from Reconstruction to develop into one of any very considerable size. The chief Finance Corporation and Farm Credit Administration cer virtue of its activity is the in:fiuence it has had upon·interest tain promissory notes of the Republic of China arising from rates on installment transactions. · the sale of cotton, wheat, and flour to China prior to the Mr. STEAGALL. Undoubtedly, that is one important organization of the bank. Likewise, certain judgments advantage. against the Republic of Cuba, held by the Bureau of Internal Mr. COX. And this has been most helpful. R.evenue, have been assigned to the bank for collection. Mr. STEAGALL. And that is true of many of the activi Other transactions which do not fall within the classifica ties of the Reconstruction Finance Corporation. The Recon tions mentioned are the loans to the Republic of Cuba to struction Finance Corporation in many instances makes finance the purchase of silver bullion and the minting thereof 0 • 360 (JONGRESSIONAL _RECORD-HOUSE JANUARY 22 into standard Cuban pesos. The two banks have financed diversity of subjects that it is almost impossible in the time four transactions involving the advance of approximately allotted to us to discuss any of them to the extent that a $20,600,000 and the minting of 50,000,000 standard Cuban Member has an intelligent understanding of what he is doing. pesos. The la.st transaction, involving 20,000,000 pesos, is Section 1 of this bill not only provides for the extension of now about one-half completed. Payment is made by the the activities of the Reconstruction Finance Corporation but, Rep1,1blic of Cuba against the delivery of pesos in Habana. notwithstanding anything which has been said on the sub Attached hereto, marked "Exhibit A", is a table setting ject, it authmizes the President for the first time since the forth the activities of the export-import banks since their Reconstruction Finance Corporation was organized on Jan creation through December 31, 1936. During the year 1936 uary 22, 1932, to determine the loan policy of the Recon there was a substantial increase in disbursements. While struction Finance Corporation. At the present time, under this is due in large part to the acquisition of the notes of existing law, the President is given blanket authority to ter the Republic of China formerly held by the Reconstruction: minate the Reconstruction Finance Corporation. He is not Fjnance Corporation and the Farm Credit Administration, given authority to suspend or terminate any particular activ it also reflects the establishment of definite lending policies. ity of the Reconstruction Finance Corporation. Instead of In other words, during the years 1934 and 1935 many of the being a bill which will carry out the pure legislative purpose authorizations were on a more or less experimental basis, of the several acts which we have passed extending the and the terms of the commitments were often such that the authority of the Reconstruction Finance Corporation, it applicants could not utilize them. Experience and a better negatives the legislative purpose of those acts, because if this knowledge of the needs of the American exporter and im bill is passed and the President finds in any manner, not porter have greatly improved the administration of the alone on the recommendation of the Board of Directors of activities of the bank with the result that it is now in posi the Reconstruction Finance Corporation but on their recom tion to furnish, and is furnishing, prompt and valuable mendation, or otherwise, he may authorize the Board of the assistance in our foreign-trade field. Reconstruction Finance Corporation to terminate any activ Loans authorized by the two export banks since their ity of the Corporation. I know that many of you who were creation may be classified as of the close of business on particularly interested in the situation in which small indus December 31, 1936, as follows: tries found themselves sometime ago will be interested to be a.. Agricultural exports: informed that under this bill the President could suspend the Authorizations ______: ______$26, 723, 646 operation of the Reconstruction Finance Corporation with Disbursements (including amounts advanced respect to loans to small industries. under agency agreements)------17, 457, 613 in Repaynaents------1,630,597 Many of us have taken a. stand months and years gone b. Industrial exports: by that the Reconstruction Finance Corporation should be Authorizations------37, 650, 808 authorized to loan on the warrants or other paper of the Disbursements ------238, 764 school districts of the Ub.ited States. They have never had Repaynaents------65,142 c ... Other credits: that authority, but if this Congress in its wisdom gives them Authorizations ------48, 353, 559 that authority,- the President and the Board of the Recon Disbursements------Repayments______15,874,87717,446,867 struction Fi:hance Corporation, wider the terms of this act, could turn around and absolutely nullify the pure intent of The bank has approved loans to finance the shipment of such legislation by suspending the operation of the Recon American goods or products to Argentina, Austria, Canada, struction Finance Corporation in that respect. Many of you China, Colombia, Costa Rica, Cuba, CzechSlovakia, Germany, will recall the fight on the floor at the time the Reconstruc Hungary, India, latvia, Mexico, Nicaragua, Norway, Poland, tion Finance Corporation was authorized to make loans to Paraguay, Spain, Straits Settlements, Turkey, Uruguay, Ven drainage districts and irrigation districts. The President in ezuela, and Yugoslavia. Generally proposals to finance the his wisdom, finding from any source which might be avail exportation of industrial products concern Mexico, South able to him that credit is now available, could destroy America, and the Far East, while those concerning agricul the very legislative intent and purpose of those acts and · tural exports relate to Europe and, to a lesser extent, China. suspend definitely, or for a given period of time, the Re The bank stands ready to meet the requirements arising construction Finance Corporation activity in that respect. out of development that cannot always be anticipated and The- Reconstruction Finance Corporation is to be from now provided against specifically. on merely a stand-by organization. I wonder why it is The usefulness of the bank should be enlarged. Its au necessary at this time to vest these most unusual powers ·thority should not be terminated right now, with the injury in the President of the United States. If he had come in 2 to export business of the country which we so much desire years ago or 3 years ago and asked for this power, there to promote. might have been some substance to the argument that he A good deal has been said about loans to industry. Un was in better position to determine the policy of the Re doubtedly some gentlemen who have spoken are not familiar construction Finance Corporation than was the Recon with the facts. They seem not to know that up to January struction Finance Corporation's board itself, because, per 15, 1937, the R. F. C. approved of loans in the amount of haps, he was closer to the emergency at that time. However, $169,739,000. Of this amount, $53,000,000 was withdrawn the Reconstruction Finance Corporation is virtually going and canceled because loans were obtained elsewhere. This through a period of liquidation. · It was called to your atten certainly refutes statements that the Corporation has not tion here by the esteemed chairman of the committee that carried out this provision of law. . their receipts over disbursements during last year were Mr. FISH. Will the gentleman yield? something like $736,000,000. Their net profit at the present Mr. STEAGALL. I beg the gentleman's pardon. I have time is $160,000,000. now used more time than I thought I would consume and So the Reconstruction Finance Corporation should be must yield the floor in order that other Members may have ·allowed to continue without any strings tied to the Board, time to speak. to liquidate this corporation which has done more to bring Mr. Chairman, I reserve the balance of my time. back prosperity by increasing the volume of credit and Mr. WOLCO'IT. Mr. Chairman, I yield to myself 15 giving acceleration to that credit than any other single gov minutes. ernmental agency. Why at this late date the President Mr. Chairman, if this bill had been presented to us, as we would want this authority to determine the loan policy of had a right to assume it would be, as a simple bill to extend the Reconstruction Finance Corporation I cannot under the activities of the R. F. C. to June 30, 1939, it would not stand. There is some question as to whether this gives have taken the committee more than 10 minutes to have con him the authority to determine the loan policy. The man vinced this House of the desirability of doing so. who is most interested in this is the general counsel for Unfortunately this bill has taken the form that so many the Reconstruction Finance Corporation, who has to in bills take when presented to us. It is complicated by such a terpret this act after it is passed. He is Mr. James B. 1937 CONQR~SSION_AL RECO~D-HOUSE Alley, and many of you know him-a very estimable gentle rations. For tha~ reason they try to justify tying these all man doing a remarkable job--and I shall read excerpts up in the same bill. from the testimony which Mr. Alley gave in that respect, Many of you will recall a year ago when we extended the quoting from page 4 of the cominittee prmt: Commodity Credit Corporation that an attempt was made Mr. WoLcOTT. At_the present time has the President any ~u t.o show to. the country what the operation of the Com thority to shape the policy of the Reconstruction Finance Corpo- modity Credit Corporation was. Many on this floor had ration? · in Mr. ALLEY. He has power to terminate it. condemned the Farm Board, created back the Hoover Mr. WoLc.oTT. He has power to terminate the Reconstruction administration for the purpose of taking surplus wheat off Finance Corporation as to all classes of operation? the market, and their surprise in finding that the Com Mr. ALLEY. Yes, sir. modity Credit Corporation, a Delaware corparation, had Mr. WoLCO'l"I'. But he has no power to determine the policy of the Reconstruction Finance Corporation? been set up by Executive order to do exactly the same thing Mr. ALLEY. That is right. for cotton and corn and turpentine and resin that the Farm Mr. WoLCOTT. This gives him the power to determine the Board had been attemptmg to do for wheat. policy? Mr. ALLEY. Just what did you say? I did not get it. Was that The CHAffiMAN. The gentleman from Michigan has a question or a statement? consumed 15 minutes. Mr. WoLCO'l"I'. That gives him the power to determine the policy Mr. WOLCO'IT. Mr. Chairman, I yield myself 2 addi- of the Reconstruction Finance Corporation? tional minutes. Mr. ALLEY. Yes; I think it would, sir. Mr. WoLcoTT. That is a far-fetched proposition from the original Mr. FULMER. Mr. Chairman, will the gentleman yield? bill as amended, is it not? Mr. WOLCO'IT. I yield. Mr. ALLEY. Yes; he has never had entire control. The control he has had heretofore has been so restricted. His power was Mr. FULMER. We had bills passed by Congress control the power of termination only. ling production to a certain extent, where the price could Mr. WoLCO'l"I'. Under the pending bill would the President de be fixed and there would not be any losses, but under the old termine the policy or would he have the board of directors deter Farm Board there was no control over production anywhere, mine that? Mr. ALLEY. Of course, as a matter of fact, in the determination and no one would be able to fix or control the price. of policy the directors themselves consult with the President a Mr. WOLCO'IT. The Commodity Credit Corporation has great deal on the lending policy of the Corporation, but he has had gone ever so much further than the Farm Board ever tried no legislative authority for that. Mr. WoLcoTT. There is nothing in the law that requires the to go, because they have pegged the price of cotton at 12 Corporation to ·consult the President, is there? cents. At the present time the market price of cotton is Mr. .ALLEY. No; there is not, except in certain types of invest 11.79 cents, and the Government at the present time has ment of banks and mortgage associations the President must approve any investment which the Corporation makes in a com 14% cents invested in 4,800,000 bales of cotton, and some mercial bank, savings bank, or mortgage company. futures. Last year they had taken off the market 6,000,000 Now, with respect to this subject, the Reconstruction bales of cotton, or the eqUivalent of one-half of 1 year's Finance Corporation was set up as a nonpartisan body fn erop. Their paper loss is 0.03 times the amount of cotton, Al 1932, and in order that no individual or group of individuals in pounds, that they are holding at the present time. should give a partisan complexion to the Reconstruction though we are told they are going to try to unload some of Finance Corporation we provided in the original act that this cotton, as was said a year ago, the same thing might be of the seven directors no more than four would be of said today, that to unload 1,400,000 bales of this cotton, as the same political faith. might be contemplated, would wholly demoralize the cotton There has not been any politics, as far as I know, in the market, because the price of cotton at the present time is less than what the Commodity Credit Corporation has Reconstruction Finance Corporation up to ihe present time. pegged it. [Applause.] Publicly, I want to commend the chairman, Jesse Jones, and the rest of the board for doing one of the best jobs any The CHAffiMAN. The gentleman from Michigan has of us have ever seen done under like conditions. We have consumed 17 minutes. sworn at them at times and we have blasphemed the board · Mr. FISH. Mr. Chairman, I yield myself 15 minutes. because they have not made loans which we asked them to Mr. Chairman, I ask unanimous consent to proceed out make, but in the qUiet of our offices and our homes we felt of order during the balance of my time. safe in the fact that the Board of the Reconstruction The CHAmMAN. Is there objection to the request of Finance Corporation had established and were maintaining the gentleman from New York? safe and sound policies, and those policies have resulted There was no objection. now in a net pJ:ofit to the Government of the United States Mr. FISH. Mr. Chairman, I do not know whether it was of $160,000,000. necessary to make that request or not, because I propose Every Member of Congress who has contributed to the to talk largely on the bill, but may make reference to maintenance of that board as a nonpartisan board should affiliated subjects. In order to have the right and power be proud of his activity in that respect. Every Member of to do so I propounded the request. Congress who today votes to destroy that nonpartisanship Mr. STEAGALL. Mr. Chairman, may I understand the and set up a political dictatorship over the lending policy request of the gentleman? of the Reconstruction Finance Corporation ·should, in the Mr. FISH. It has already been granted. The request quiet moments when · he contemplates his actions, be was to speak out of order on any subject I desired. ashamed that he has contributed to the potential destruc Mr. STEAGALL. We are operating under a rule which tion of one of the outstanding lending agencies of this specifically provides that debate shall be confined to this bill. country. Mr. FISH. The permission was granted by unanimous Mr. Chairman, at the proper time I am going to move consent. I am not going to digress very much, I may say to to strike out that proviso. the gentleman, but it is too late to raise any objection now. Section 2 of the bill extends three distinct agencies-the Mr. Chairman, the President in his message on the state Commodity Credit Corporation, the Electric Farm and Home of the Union delivered to the Congress recently made the Authority, and the Export:Import Bank. The chairman following statement: of the committee has gone into detail concerning those We know now that if early in 1931 the Government had taken activities. I simply want to call your attention to the fact the steps which were taken 2 or 3 years later the depression would that these agencies are operated and managed by the Re never have reached the depths of the beginning of 1933. construction Finance Corporation. As Mr. Jones told us in This statement, of course, was dh·ected against the prier committee, the life of the Reconstruction Finance Corpora Republican administration. In other words, President tion is not contingent in any manner upon an extension of Roosevelt said that the prior Republican administration had the activities of any ·one of these organizations. However, fallen down and had failed to propose recovery legislation the extension of the Reconstruction Finance Corporation is of any kind or was worth anything at all. In all fairness wholly essential to the life of any one of those three corpo- to that administration and to former President Hoover, 362 CONGRESSIONAL :RECORD-HOUSE JANUARY 22 and as a member of the Republican Party who was then · Russia. I direct the attention of gentlemen from Southern in the Congress, I submit that President Hoover made certain States, where cotton is king, to that loan. What did Russian sound recommendations to the Congress of the United propagandists say? They stated, "If you will recognize States, then controlled by the Democrats, and that they Soviet Russia, we will buy $200,000,000 worth of cotton from deliberately sabotized those recommendations and threw the Southern States." Prior to that time, or about the same them out of the window. If these recommendations had been time, they made the additional statement, "We propose to' accepted, there would be confidence in the country today do a billion dollars' worth of business with · you if you and we would know which way we were going, and I refer recognize us." This was the juicy bait held out to the particularly to the last 3 or 4 years. international bankers and industrialists. · The President in his message, however, claimed that Then the big bankers of New York jumped on the band nothing was proposed, but he overlooked the fact that re wagon and demanded recognition. As Lenin said, "The peatedly the Democratic Congress, for partisan reasons, capitalists will commit suicide for temporary profit." sabotized the sound and constructive recommendations Then they made the cotton appeal to the Southern States which were then made. One of the recommendations made and all the Baptists and Methodists and others jumped on by President Hoover, and therefore offered by the Republi the bandwagon, in spite of the fact they hated the very idea can Party, after the depression set in, was the Reconstruc of recognition on religious grounds. They also grabbed the tion Flnance Corporation Act, which passed the Congress bait or promise to buy $200,000,000 worth of cotton from the and was enacted into law in February 1932. Southern States. Now, what are the facts? The facts are Mr. Chairman, that was a Republican measure and was that under Republican administrations Soviet Russia bought necessary in order to try to save the banking situation and from America over $100,000,000 worth of commodities a year to stabilize industry. If that administration measure had and since recogrl..ition they have bought approximately $20,- not been put into effect all credit would .have collapsed. 000,000, and in 1935 they bought $3,500,000 worth of cotton It would not have been simply a question of banks failing, not $200,000,000 worth-:-and they borrowed the entire but it would have meant that credit would have been par $3,500,000 from the Reconstruction Finance Corporation to alyzed and the insurance companies, the railroads, and put through the deal. This is what you have gotten from rec business generally would have likewise collapsed. We would ognition and from the promises and pledges given by Com have had a far more serious financial catastrophe. The missar Litvinoff. Reconstruction Finance Corporation was a Republican baby, I cannot get a great deal alarmed about the contention conceived by the Republican Party, which the Democratic made by the Republicans that the President should not have Party adopted. It was one of the few measures suggested certain powers to limit and liquidate the R. F. C. and the by the Republican Party that the Democrats adopted, but different agencies. It seems to me if words mean anything they have taken that Republican vehicle and have used it this is exactly what is proposed in the bill-to expedite liqui to the extent of lending $9,000,000,000 to American in dation of the R. F. C. and, primarily, of these other loaning dustry to stabilize industry, stop the crash, and help bring agencies. In business we have trustees appointed. You can America out of the depression and put people back to work. not have the whole Congress appointed, so we appoint in this Mr. Chairman; I submit that that Republican measure has bill the President as a sort of trustee to expedite liquidation done more to stabilize industry and bring about recovery 'than where liquidation is necessary. Let us, for example, take the all the panaceas and wild experiments of the "brain trust" Export-Import Bank. It is doing no business at all. Jesse combined. There should not be a single Republican objection Jones said before the committee that it is not doing as much to the continuation of the R. F. C., because it was a Repub business as you would do in your vest pocket. Why should lican measure which we are justly proud of, and we deserve all these deserving Democrats continue to hold jobs down the credit for bringing it into existence. It differs vastly there at fancy salaries and not do any business? Is this Dem from the New Deal policies of squandering and wasting the ocratic efficiency? Is this New Deal honesty and economy in people's money on such vagaries as the Resettlement Admin government? Of course, the President or somebody should istration and the other New Deal systems of bounties, bo bave power to put an end to the Export-Import Bank. nuses, and c~sh payments of all kinds. The R. F. C. loaned If the Congress will not do it, then let us give· the power to money on sound collateral, and most of it will be paid back the President to do it. I would like to see it done right now or recovered. That is a sound Republican policy, in contrast by the Congress, and if anybody offers such an amendment to the New Deal policy of subsidizing everyone and piling I shall vote for it. debt upon debt by borrowing billions and still more billions. It is a little different with the Commodity Credit Corpora Mr. Chairman, the President in his inaugural address used tion. I tried to ask the distinguished chairm'an of our com these words: mittee a question. I think he perhaps knew in advance what I see one-third of a Nation ill-housed, ill-clad, and ill-nourished. the question was going to be. I was going to ask him, coming It seems to me that is an indictment of the New Deal. from a Southern State, how the Commodity Credit Corpora After 4 years of the New Deal the President goes before the tion was going to get rid of the 3,000,000 bales of cotton it American people and practically says: "I see 40,000,000 had? How are they going to dump it on the market without American people ill-housed, ill-clad, and ill-nourished in a destroying the price of cotton? country that is the granary of the world." Mr. FULMER. Mr. Chairman, will the gentleman yield? How does he reconcile the statement that there are Mr. FISH. I will yield to the gentleman in a moment. 40,000,000 American people ill-clad and ill-nourished when Mr. FULMER. I want to give the gentleman some infor- he urged and jammed through Congress a program of mation. scarcity, a program of destruction of crops, the plowing . Mr. FISH. I do not see how we can put an end to it with under of crops such as cotton, wheat, and foodstuffs, and the out ruining the cotton market, but I will say that it is a direct slaughtering of 6,000,000 pigs? This program of birth con result of the A. A. A. program and the destruction and trol of pigs and destruction of food crops and cotton has plowing under of cotton. We have lost half of OW' world caused at least 2,000,000 breadwinners to join the army of market in our cotton export trade, the greatest single Ameri unemployed. It has brought economic disaster to at least can export, amounting to over $100,000,000 a year. This has 6,000,000 Americans. been thrown overboard. Of course, then we had to have a We on this side believe that we can have a program of Commodity Credit Corporation to take up the surplus cotton. abundance instead of scarcity. We believe that there are We have the surplus now. What are we going to do with it? enough foodstuffs produced in America so that 40,000,000 In the end the Government will probably have to pay for it, American people shall not be ill-nourished. 'Ibis is the but the net result is we have lost half of the world cotton richest farming Nation in the world, and there is no excuse market to Brazil, Egypt, China, various South American for permitting 40,000,000 of our people to be undernourished. countries, and also to Soviet Russia. We have already lost . Turning back for. a moment. to the R. F. C. and-to . one this wealth and probably the rest of our world cotton market particular loan made by the R. F. C. to sell cotton to Soviet will vanish. 1937 .' CONGRESSIONAL. RECORD-HOUSE- 363 If I had my way, I would take this surplus cotton in the Mr. HANCOCK of North Carolina. Mr. Chairman, ladies Commodity Credit Corporation and sell it on the world and gentlemen of the Committee, it seems to me that the market in Liverpool for whatever it would bring-5 cents a question before us is a very simple one. It merely makes pound, 6 cents a pound, or 7 cents a pound-and bring this possible a continuation of the activities of the Reconstruction wealth back to the United States and distribute it among the Finance Corporation and four of its affiliates or subsidiaries farmers. which are instrumentalities through which it functions and Mr. FULMER. Mr. Chairman, will the gentleman yield operates. The activities of the Corporation and its con for a question at this point? ·structive accomplishments are so well known that I deem it Mr. FISH. For a brief question. unnecessary to engage in any long-drawn-out or exhaustive Mr. FULMER. May I state to the gentleman from New discussion of the resolution providing for the extension of its York that the Corporation now is being begged by the ex life to June 30, 1939. In my judgment, it has been perhaps porters and the domestic consumers of cotton to put this the most effective force in the recovery program of the cotton on the market, and we can sell it today at a premium country during the Roosevelt administration, though I rec of from one-half cent to 1 cent a pound? Cotton is actually ognize that two other agencies have played major parts. selling on the market at a price of from 12% to 13 cents a The Corporation was set up in 1932, when the Senate was pound. controlled by the Republican Party and the House by the Mr. FISH. I will say to the gentleman that if this Cor Democratic Party. At no time, however, has the Corpora poration attempted to unload that cotton, amounting to tion's policy been tainted with political partisanship. It has 3,000,000 bales, the entire cotton market would collapse, and kept true and loyal to its original purpose and in its execu the gentleman knows it. tion has touched helpfully the business life of practically Mr. STEAGALL. The gentleman forgets the record of last every .community in our country. When first established it year. The Commodity Credit Corporation disposed of a large was more or less a negative force designed to end the panicky portion of its cotton without ruining the market. feeling in business circles and to halt the deflationary proc Mr. FISH. You cannot keep on buying cotton at high esses which were undermining the mechanics and structure prices and then selling it without wrecking the domestic of our business and financial institutions. With conditions market. You have this cotton on your hands, and the sooner growing worse in.the latter part of 1932 and the early part we stop buying any more the better. . of 1933, it became necessary to increase the powers of the I have the greatest admiration and respect for the Honor Corporation and extend its lending policy in many ways able Jesse Jones, and if you Democrats decide to make him which are familiar to practically every Member of the House. your candidate for President it would suit me. [Applause.] The results of its operations cannot be fully told or reflected He was the nominee of a Republican President when he by its operating statement, which shows a profit of more went on the R. F. C. Board. When the R. F. C. was estab than $15Q,OOO,OOO. Independent of the allocations made by lished it was assumed it would be a nonpartisan organiza it for relief purposes, it has authorized more than eight and tion. President Hoover appointed another Democrat at the one-half billions of dollars in loans, approximately six and head of it, Senator Atlee Pomerene. one-quarter billions of which has actually been disbursed. [Here the gavel fell.] It is quite significant, however, that under the efficient, Mr. FISH. Mr. Chairman, I yield myself 2 more minutes. sound, and humane leadership of its distinguished chair Mr. Jesse Jones was appointed as a director by the Repub- man these loans were made in such a way that approximately licans. It was a bona-fide, nonpartisan organization, but, 70 percent in amount have been collected, and today there is unfortunately, it is not so any longer. only approximately a billion, nine hundred million dollars President Roosevelt has deliberately violated the nonparti in loans outstanding. It will be impossible for me t.o even san requirements, which call for a nonpartisan board, giving review the various activities carried on by the Corporation; the minority party bona-fide representation. The President · to those who desire this information, it is available in the has put on the board not Republicans that represent the various reports made by the Corporation to the Congress. Republican Party but former Republicans, who have de To those who would criticize the Corporation's failure to serted the party and who supported the President. So" today make certain loans, I would suggest a careful reading of the we have not any real Republicans on the board. [Applause.] language of the original act and amendments thereto under If you think it is the proper thing to violate the spirit which these loans ·can be made. Its original lending powers and intent of the law by filling the board with Democrats were confined to the key institutions, such as banks, rail and deserving Republicans, you have the power to do so. roads, insurance companies, and building and loan associa But it destroys the very essence of nonpartisanship, and tions, not primarily,_however, for the purpose of aiding the is done in violation of law. If you can do it with this board larger institutions but because it was recognized that through you can do it with all boards, but I would remind you what help to these institutions the greatest number of our people iB sauce for the goose is sauce for the gander. engaged in business pursuits could be assisted and, in many The Republicans have not protested, because they have instances, saved. Notwithstanding all of the statements not got the votes to compel an investigation, but President that have been made here today, undertaking to create the Roosevelt has been ignoring the law and the rights of the impression that the Corporation's activities have been aimed minority party in an autocratic and high-handed manner, toward helping the big corporations~ I know of my own utterly violating traditional policies and violating the law knowledge that the small business concerns have been ac by appointing on various nonpartisan boards former Repub corded the same consideration by the management as is ac licans who have deserted their party and who do not corded the most powerful corporation or bank in the country. represent the Republican Party today. Every application is considered on its merits, and there has Mr. JOHNSON of Minnesota. Will the gentleman yield? at no time under the present management been any disposi Mr. FISH. For a q_uestion. tion to prefer one applicant over another. Mr. JOHNSON of Minnesota. How about the $90,000,000 ·From the argument presented by several gentlemen of the· loan to General Dawes? · committee, there seems to be some question with respect to Mr. FISH. That was done by Jesse Jones and Senator .. the e.ffect of the proviso in the first section of the resolution. Pomerene, both Democrats, and the gentleman better refer It is my opinion that nothing in this proviso is designed to· to them. · change the present policy of the Corporation. The Presi Mr. JOHNSON of Minnesota. It was done under Hoovel'. dent now has the right, without finding any facts, to termi Mr. FISH. As I have said the Reconstruction Finance nate any one of the lending agencies~ That right is certainly Corporation was originated by the Republicans and the best broad enough to ·mclude the right of the President, upon thing the Democrats have done to get us out of the depres ascertainment of certain facts, to suspend the operations of sion was to use this Republican vehicle providing for loans any phase of its lending activities. It seems to me that to be made on sound collateral. [Applause.] the new proviSion preserves rather than destroys the powers Mr. STEAGALL. Mr. Chairman, I .yield 15 minutes to the of the legislative branch of the Government. In other words, gentleman from North Carolina [Mr. HANcocKt under the provisions of the instant bill, the President would 364 CONGRESSIONAL ;RECORD-HOUSE JANUARY 22 not have to tet:minate the lending activities to any class of The R. F. C. mortgage company is doing a useful work borrowers, but could merely "suspend" the same in the in-' in refinancing distressed business properties. terest of economy and in keeping with the policy of the According to my information, each one of these affiliate administration to withdraw its lending activities as rapidly organizations is operating at a profit, with the exception of as conditions in the country warrant. the Commodity Credit Corporation. This organization, It should be called to the attention of the Committee that however, would show a reasonable profit but for the loss the Reconstruction Finance Corporation for the past year which it will incur as a result of its guaranty of 12 cents has spent most of its time trying to encourage and persuade · for the price of cotton. The small amount of loss, however, private lending institutions to take the loans which they have in connection with the operations of this Corporation will been asked to take, and, in numerous instances, the mere be considered negligible in the light of the benefit which it fact that the Corporation was in position to make the loans has extended to thousands of tobacco, corn, and cotton has influenced private institutions to make them. This growers throughout the United States. Corporation has been handled in such a sound, conservative, Mr. WADSWORTH. Mr. Chairman, will the gentleman and efficient manner that its approval of a loan carries with yield? it such weight that private institutions are ready to step in Mr. HANCOCK of North Carolina. I yield. and take its place. This will continue as its present policy, Mr. WADSWORTH. I do not desire to interfere with the There could be no better proof of this than the fact that dur tenor of the gentleman's remarks by interrupting him at an ing the past year its collections or repayments have exceeded inopportune moment, and I assure the gentleman the inter its loans and commitments by approximately $736,000,000. ruption is not an unfriendly one. Has the Committee on Notwithstanding the irrelevant, and I am sure unintention Banking and Currency received from the officials of these ally misleading, statements made by the distinguished gen subsidiary corporations any report or statement showing tleman from Massachusetts [Mr. CoNNERY] with respect to accurately their present financial set-up and status? loans to aid small businesses, the record will show that of the Mr. HANCOCK of North Carolina. We have received the $169,000,000 authorized for direct loans to industry and small annual report for the year 1936 of the Electric Farm and business enterprises, a large number of these loans have Home Authority and the Export-Import Bank. I do not be ranged from $500 and $1,00.0 to $100,000. I think the aver lieve that a report of the operations of the RFC Mortgage age loan runs around $70,000, and by eliminating several of Co. or the Commodity Credit Corporation has been filed with the larger loans, the average would be approximately $50,000. the committee. These may be included in the annual state This is certainly in keeping with this section of the bill and ment of the Reconstruction Finance Corporation. However, the wishes of Congress in enacting the same. It might be the information given to me by the Chairman of the Recon interesting to the membership of t~e House to compare the struction Finance Corporation, if my memory serves me cor R. F. C.'s record of direct loans to industry with the record of rectly, is that the Export-Import Bank shows a profit today the Federal Reserve banks, who are not even lending their of between four and five hundred thousand dollars. The own money. Some of you will remember that there was a financial statement of the Electric Home and Farm Author working agreement made between the Federal Reserve banks ity shows that since it has been operated under the super and the Treasury with respect to the $139,000,000 of earnings vision of the Reconstruction Finance Corporation it has over taken from them and used for the subscription of stock to come its early loss and now reflects a profit of approximately the Federal Deposit Insurance Corporation. I am confident $50,000. The financial operations of the Mortgage Co. could that there is no justification for any fear that the present not be definitely determined at this time, or until its present management, or the President of the United States, would loans have been liquidated. It is safe to assume, however, take ai).Y action with respect to the lending activities of this that it is operating at a profit. institution which could under any condition jeopardize the Mr. WADSWORTH. If the gentleman will permit an ob rights of small business enterprises to continue their opera servation-I find in the RECORD, page 254, of January 15, tions. Mr. Jones has made it very clear that he feels that in a speech delivered by the Senator from Virginia, Senator this agency, with its splendid machinery for aiding business BYRD, a very interesting statement of the assets and liabili· when it cannot be aided otherwise, should be kept intact and ties of the Reconstruction Finance Corporation. In that serve as a "stand-by" agency for the protection of the small, statement we find, of course, accurately set forth the sums worthy businessman. We should not forget, however, that of money which the R. F. C. has advanced to these sub Congress itself made the management of this great institu sidiary corporations in order to finance them. The state tion a trustee of the taxpayers' money and required that its ment of the Reconstruction Finance Corporation is very lending policy should be predicated upon sound business instructive and informative, and, incidentally, I believe, with principles. the exception of certain items, very encouraging; but I am The second section of this bill merely extends the life of wondering if the Congress has anything like complete knowl the four subsidiary or affiliate corporations through which edge of the financial condition of the subsidiary corporations the Reconstruction Finance Corporation extends its effective at this time. I do not mean to criticize unduly the members service to beneficiaries otherwise ineligible under the act of the committee. I know you have been hurried in this creating the parent corporation. All of them are instru matter; but it is rather a pity that the Committee on Bank mentalities through which the R. F. C. functions and ing and Currency has not been able to give us a report in operates. They are almost entirely dependent upon the the normal fashion, showing just where these corporations backing of the R. F. C. stand. The Electric Home and Farm Authority was organized Mr. HANCOCK of North Carolina. Of course, I am just for the purpose of aiding the administration's low-rate and one member of the committee. I want to say, however, that high-volume electric-.power policy. It in a measure imple in the consideration of this bill we have not been needlessly ments the Rural Electrification Administration, Tennessee rushed. I think the activities of these organizations, and Valley Authority, and the Public Works Administration pro their financial result, are within the knowledge of all mem grams. It is a credit institution, operated efficiently and bers of the committee. Hearings were conducted in the conservatively, and has accomplished much in reducing the regular manner before the committee and later printed, and rate of interest on installment sales of electric appliances may be available to every Member. Of course, if the gen to people who could not pay cash for the same. It will not tleman from New York desired additional information, he operate in any territory where power rates are excessive. could secure it quite quickly by contacting officials of the The Commodity Credit Corporation has been a great aid Reconstruction Finance Corporation. in the .financing and holding o1I the market of agricultural Mr. WADSWORTH. In other words, the Committee on products which would otherwise have been forced on the Banking and Currency puts the membership of the House market at sacrifice prices. on notice that it must find its own information? The Export-Import· Bank is being continued for the pur Mr. HANCOCK of North Carolina. Not at all. I did not pose of aiding the exportation of American products. mean to leave such an impression. If the information 193~ .. CONGRESSIONAL RECORD-HOUSE 365 which we have and which we ·are presenting to you does not, 1n the financial statements of the. Treasury that there are · howev~r. satisfy your purpose, then you could make your about two billion dollars worth of assets in our 'rreasury · own inquiry. 'l'b.at. is the point I intended to make. that are worthless; yet the public is daily furnished these Mr. Chairman, in conclusion, and for the benefit _of the · statements by that Department, setting forth as assets value Members of the House, I desire to state that the measur~ less notes of the Reconstruction Finance Corporation. before us was unanimously reported to the House by the Of course there can be no denying this·;. but what sur Committee on Banking and Currency. . It was also unani prises me is that while the Senator suggested that the Treas mously reported by .the Senate Committee on Banking and ury should evaluate and give a proper picture of the· real Currency . . The Senate passed the bill in its present lan value of these holdings·, I was informed. as I recall it, that guage and without an amendment last week, with but one: Congress has to authorize the Treasurer to cancel this worth dissenting vote. I want to make this statement merely for less paper. _ the purpose of refiecting the almost universal approval of Our gross debt is about $35,000,000,000. We can read that the work of this Corporation. I venture the assertion that every day. we· are supposed to ·have $17,000,000,000 . worth notwithstanding certain criticisms which have been directed of assets. The daily statement says so. Twelve billion dor..: toward this measure, and particularly section 2 thereof, Iars, worth of foreign obligations. We place but little value there is not a Member of this House, regardless of his po on those. As to the other five billion, what are they? · litical affiliations, who has received since .coming to Con The President said. in his message just the. other day gress or, for that matter, before he left home,. a single letter and I refer to the recent platitudinous inaugural message: or request from a financial insti4ltion in his district or from Government can obtai:J;l justified support and legi:tim.a.te criticism a single individual constituent suggesting or urging that he when the people receive true information ot all Government oppose the passage _of this measure. If no exception or con doings. tradiction is made to this assertion, it will be very difficult for me to understand how any man wanting to represent Well, perhaps I cannot give legitimate criticism, when his constituency could oppose its passage. Though I may there is no true information. What a pity. "Echqes of the last [Mr. be wrong, I also believe that when the roll is called he will campaign," says the gentleman from Wisconsin be a lonesome man who answers "nay." REILLYl. He can take it thus if he wants it, but your great Though we know that we are on·the high road to recovery President, speaking at Pittsburgh last October, and duplicat and better.times in this couritry, we can by no ineans afford ing a performance of 4 years ago, setting -forth the finances to discard the safeguards until some of our work has been of the Nation, told the country that Hoover's deficit in 3 tested in terJDS of normal conditions. The Chairman of the years was $3,000,000,000. He acknowledged that $2,000,000,- Corporation has on·a numper of occasions made it clear that 000 of it was recoverable. He acknowledged that he himself the future policy of the Corporation will be to assist and had a deficit of $13,000,000,000, but claimed $6,000,000,000 encourage applicants in getting their loans from Pi'ivate recoverable. He knew better than that. God knows, he sources where possible rather than by making them through . must have known better then. For there was $2,000,000,000 the R, F. C.; and the mere fact that the Corporation is in that he claimed that had actually been given away by the position to make the loans enables it in many instances to R. F. C. under his directions. I want the gentleman from [Mr. get private sources to do so. I therefore feel that it is not Wisconsin REILLY] to call this a campaign echo if he only wise and. expedient but also good public policy .to keep desires. I am talking about assets, represented by notes of these agencies with their splendid machinery intact and the R. F. C., that have vanished. Here is another remark geared to meet any emergency which might arise in the near able statement. The President told the country in the same future. The fact that it is here and ready to come to the speech that over $1,500,000,000 went for the payment of the assistance or rescue of any eligible borrower creates confi World War veterans' bonus that year, instead of in 1945; dence in our financial institutions in their effort to extend that in consequence "the payment is now out of the way their operations and increase their activities. In the lan and is no longer a future obligation of the Government." I guage of the distinguished Chairman, it will serve primarily will read it to you again: "That payment is now out of the as a "stand-by" agency to insure the citizenship of our coun way and no longer a future obligation of the Government." The obligation was not due for 10 years, but by and through try that every legitimate and sound busine~s enterprise, both small and large, will be. protected, and that when necessary insistence we borrowed money to pay it; then can I t~ll my the· Government will step in to prevent a hold-up by un~ constituents that this obligation is now "out of the way"? scrupulous and selfish lending agencies. As long as this , We still owe that sum, and largely in short-term notes. agency is in existence we may be assured that eligible, worthy What a speech. enterprises will not be subjected, in their financing programs, Six billion . dollars recoverable when he must have known to :unr~nable rates of interest or unfair terms of borrowing. there were really less than $4,000,000,000; that the R. F. C. The CHAIRMAN. The time of the gentleman from North had actually given away about $2,000,QOO,OOO; yet · they Carolina [Mr. HANCOCK] has expired . carried that $6,000,000,000 as assets! Mr. WOLCOTI'. Mr. Chairman, I yield 15 minutes to the Mr. REILLY. Mr. Chairman, will the gentleman yield? gentleman from Massachusetts [Mr. GIFFORD]. Mr. GIFFORD. I yield. Mr. .QIFFORD . . Mr. Chairman,. as a member of the Com.: Mr. REILLY. Does the gentleman contend that we will mittee on Banking and CUrrency, I have been trying with have to pay the soldiers' bonus again? some difficulty to find out, if possible, the value of the· se..: Mr. GIFFORD. We borrowed the money. Most certainly ~urities which may now · be credited to the Reconstruction we shall have to repay it. Finance Corporation. I spent some little time in the matter ·Mr. REILLY. I mean the Government. ~ediately after the President's Budget message was read. Mr. GIFFORD. That sort of absurd statement reminds I ~ pleased that the genial Representative from New York me of something not a whit more silly-the story of the lady · [Mr. WADSWORTH] WaS able to call your attention.to a speech whose husband gave her a check to cash at the batik. · She made last Friday by that Senator who now has a wet blanket went to do it, and. the ·teller said, "You must endorse it." over him without being ruled out of order. "What do you mean?" You will recall that when I gave notice that I would like "Put your name on it, so your husband will know you to make reference to the Senator's other speech made over used it." · the radio, I was told that I would be out of order. 1 am Ori the back Of the check she wrote: "Dear Jimmy, I am sure .enough has been ~ - to make you read the speech now at the bank gettilig. the money, Lots of kisses. Jen under discussion. I had prepared a very similar statement, nie." LLaughter.l several days before, after giving long attention to several Some day I may tak·e the time to deaf more fully with that recent Budget messages. I had Caned the Bureau of the speech of the President; and I may read and comment ori Budget and asked an explanatfon of the bookkeeping. as ca.l· Hoover's reply made 2 weeks later-the answer of a man who ried in the Budget statement. I have received ·a reply with a knew what he was talking about, and who .proved his-. case; practical acknowledgment that the public at large are told but a man to whom the public somehow just would not listen. 366 _CONGRESSIONAL RECORD-HOUSE JANUARY 22 No; the President of the United States is clothed with. an Mr. GIFFORD. I do not think the ·so-called common aurora, and it remains for us of the minority to speak plainly, people are worrying. They do not understand the facts, and though we suffer the weariness of futility. I have to speak depend so largely on what their idol tells them. to an idolatrous country. [Laughter.] The name of Jesse Mr. JOHNSON of Minnesota. All we are worried about in Jones is synonymous with R. F. C. I believe in them both, Minnesota is to get enough to eat, and we have not been get thoroughly. But the test of our Government is here and ting it in the last 3 years. now. When, during an emergency, we shall have brought Mr. GIFFORD. The bill will be presented to your people into being certain necessary unusual powers of government, just the same. Santa Claus came and left his presents and can we, when the emergency is over, have we, the courage to we were happy. But when he comes back· to collect we are divorce ourselves from them and return to our former faith not going to like him. · in our own citizens to carry on the banking and credit busi Mr. Chairman, our democracy, having set up these agencies ness of the Nation? in an emergency, has not courage enough to divorce them Ponder over the words of President Aldrich, of the Chase when the emergency is over and trust private initiative to National Bank, which appeared in the papers this morning, perform as it did before. Today we fail in the test. "The whole subject of government lending agencies should Mr. Chairman, a committee has been appointed to reor be thoroughly reconsidered", read his warning of too low ganize the Government departments and bureaus, and this interest rates. The pending bill provides that the President, would seem to be a deliberate attempt to postpone the whole when and if he thinks there is enough of private credit avail business still another 2 years. Why not extend this for 1 able at rates that are satisfactory-get that-may discon year? Why the necessity for 2 years? Do you desire the tinue these agencies. As long as this Government is in the reorganization of our Government to go over 2 years? Cer market to borrow huge sums of money the rates have got to tainly it would seem so by this vote today. be fair, which may mean dangerously low ones. Why, the I would deem it a remarkable moment on the floor of the emergency is over so far as credit facilities go. You know House if I could ever see any of these agencies abolished. · It it. The banks are bursting with money eager for reinvest would seem that if this new committee should come in and ment. What reason can we now assign for further Govern recommend the abolition of any of these things, its recom ment credits? However, you too well know the Commodity mendation would hardly prevail. The future does not look Credit Corporation will take care of cotton and tobacco and bright so far as doing away with any of these things is willingly lose money doing it. It will be a permanent thing. concerned. You will probably never get rid of it. Nor will you get rid Mr. Chairman, my time is about up. I again repeat the of the Export-Import Bank. we· thought Russia was going sad fact that he told us he had $6,000,000,000 of recoverables. to do such a flourishing business with us. That is why we We find he has only three billions. established the Export-Import Bank. You will continue it Mr. CRAWFORD. Will the gentleman yield? because currencies are so unstable and we can let the Govern Mr. GIFFORD. I yield to the gentleman from Michigan. ment agencies lose whenever private lenders will not take Mr. CRAWFORD. Is it true that the R. F. C. is disposing such chances on ~ales to foreign nations. Let us keep the of its holdings in Federal Housing mortgages and some of its machinery there although it is not doing anything. bonds and debentures? Rural electrification! That is splended. The Govern Mr. GIFFORD. I am glad the gentleman put his finger ment will lend money and at a lower rate than can private on that. We are extending the time that the capital stock bankers, so we must continue that. subscribed may stay within the Corporation, with all the Referring again to our assets. Not only is that $2,000,- funds they have on hand and all they may borrow. These 000,000 gone but another $1,000,000,000 is probably gone as agencies may still be used to harass private business and well, since, I think you will agree, with a contingent indebt bankers, who now have credit facilities in abundance. I am edness of $4,700,000,000, there will be at least a 20-per quite willing to extend the life of the R. F. C. for 1 year, but cent loss on those other activities that have been nursed am not willing, with the information at hand, to continue the along by the Government. Let the President not again tell others included in this bill. his people that he has $6,000,000,000 recoverables. Rather [Here the gavel fell.] tell them the truth so that legitimate criticism may be ac Mr. WOLCOTT. Mr. Chairman, I yield 10 minutes to the cepted. While the people are kept in the dark criticism may gentleman from Massachusetts [Mr. LucEJ. appear to be not legitimate. Mr. LUCE. , Mr. Chairman, twice this week I have had Mr. JOHNSON of Minnesota. Mr. Chairman, will the occasion to take the fioor in the temper of Mark Anthony, gentleman yield for a question? who came to bury Caesar, not to praise him. Today I go Mr. GIFFORD. I yield. into reverse and come to praise Caesar, not to bury him. Mr. JOHNSON of Minnesota. It is safe to assume now The Caesar I praise is Jesse Jones and his empire is the that the Republicans are worried about this administration? Reconstruction Finance Corporation. Mr. GIFFORD. That is a funny question. It is idle to repeat what everybody knows, that this has Mr. JOHNSON of Minnesota. No; it is not funny at all. been the most successful agency used to meet the depression. Nobody else worries about it. We thought possibly the gen Its record is clean. Its performance has been marvelous. tleman might be worried. No other attempt to meet the crisis has matched it in im Mr. GIFFORD. Evidently if the Republicans did not portance, value, or integrity. Everything in it we should worry, nobody would. We have, very definitely, something commend. to worry about. The gentleman knows there is a debt of It might be well to stop there, but I find myself unable $35,000,000,000. . to refrain from taking a moment or two for expanding some Mr. JOHNSON of Minnesota. I do. of the things the gentleman from New York said, because Mr. GIFFORD. Does the gentleman have any hope that of them I can say: ''All of them I saw, and part of them at any time within the immediate future we can reduce it by I was." even $1,000,000,000? No. We are to have the Budget bal · Early in October 1931, as one of the older members of anced in 1938. But the balance is already budgeted, so there the Committee on Banking and Currency, I was summoned is not a dollar to reduce the debt. This ought to be your to the White House, together with 30 or so other men, about worry, the responsibility not being upon us. As I have stated half from each party, including the Speaker of the House, before, I shall try to be happy, but for a time must stew with the Presiding Officer of the Senate, the Secretary of the you in your juice. Treasury, the Under Secretary, the older members of two Mr. JOHNSON of Minnesota. We are not worried about committees in the Congress, expected to take action upon the Budget. what President Hoover recommended. He had succeeded Mr. GIFFORD. Who is "we"? in meeting one crisis with the moratorium on foreign debts. Mr. JOHNSON of Minnesota. Just the common people; He was faced with a second. "And now it can be said." not the Republicans. He told us that night unless we undertook to pass the legis- 1937 CONGRESSIONAL RECORD-HOUSE 367, Iation he desired every bank in the country would close its Mr. LUCE. Point the finger at somebody else, but not doors within 2 weeks. Never in our time did a more fateful at me. emergency face the people of the United States. Mr. HOUSTON. I did, and so did 27,000,000 people in He asked us three things. He asked men on both sides if this country. they would support him in these recommendations: One was Mr. LUCE. Let me inform the gentleman that not all of the creation of the agency that became the Reconstruction them were in my district. [Laughter and applause.] Finance Corporation. Another was increasing the power of Mt:. HOUSTON. The gentleman is fortunate. the Federal Reserve System in matter of loans. The third Mr. REILLY. Mr. Chairman, will the gentleman yield? was relief of depositors in closed banks. We unanimously Mr. LUCE. I yield. agreed to secure for him these things at the earliest possible Mr. REILLY. I know that my colleague was always in moment. He had saved the day in the summer with the favor of guaranteeing bank deposits, but is it not a fact that moratorium on foreign loans. The morning after our meet the Republican Party in its platform of 1932 declared against ing the public was told what he now contemplated and the guaranteeing of bank deposits? another emergency was met. Mr. LUCE. The Republican Party occasionally has a When Congress came together we did take speedy action lapse from good sense. [Laughter and applause.] on two of those things. We laid the foundation for what Mr. WOLCOTI'. Mr. Chairman, will the gentleman yield? later became the Reconstruction Finance Corporation, and Mr. LUCE. I yield. we provided the legislation for extending the powers of the Mr. WOLCOTI'. Has the gentleman been "cognizant of Federal Reserve System. any appearance on this floor of any member of the Banking In his message when Congress assembled the President and Currency Committee who has had the temerity to say added two things for saving the situation. One of them that Mr. Roosevelt was for the Federal Insurance Deposit was to strengthen the Federal land bank. The other was the Corporation Act until it was forced on him on the 16th of home loan bank bill. June, 1933, by the overwhelming vote of this House? The House· had by that time come under Democratic con Mr. LUCE. I will give opportunity to any Democrat here trol. The pledge of the leading Democrats in the House and to answer that question. Senate had been that all three things urged by the President Mr. GIFFORD. If the gentleman will permit, I have the in October should be acted upon as quickly as possible.- What facts right here showing he was forced into it, and I want to happened? As I said, two of them were speedily enacted into suggest right here that, to my utter amazement, my friend law. The bill for relief of depositors in closed banks met a the gentleman from Kentucky [Mr. SPENCE] signed a postal different fate. Although it was pressed for action, for months . that was sent to all of us stating how President Roosevelt we could not get a hearing by the committee. Other months favored and put over the guaranteeing of bank deposits. passed; a year and a half passed; and there came only slight It was utterly ridiculous. He had to be forced into it. action, to be made adequate still a year later. Mr. PHILLIPS. Mr. Chairman, will the gentleman yield? Mr. Chairman, it was 2% years before we finally secured Mr. LUCE. Certainly. - that which Democrats and Republicans alike had pledged. Mr. PHILLIPS. I believe the gentleman referred to the The home loan bank bill was not enacted till half a year conditions obtaining when the banks closed under the ad had passed. Reform of the banking system as a whole did ministration of Mr. Hoover. I wonder if the gentleman will not come until more than 2 years after Mr. Roosevelt was tell us what brought about the conditions leading up to the inaugurated. closing of the banks? [Applause.] Yet in recent discussions on the stump throughout the Mr. LUCE. It is a long story. I will give only the closing country it has been said that the responsibility for the final paragraph of the closing chapter. The refusal of Franklin crisis was that of President Hoover and the Republican D. Roosevelt to cooperate with President Hoover. Party. I deny it! I charge inexcusable delay after the Mr. HOUSTON. Will the gentleman yield for just a brief Democrats gained control. question? Mr. LUCE. Certainly. Let me return to happier thoughts, those aroused by the Mr. HOUSTON. Whatever became of Mr. Hoover? pending resolution. It means that our best agency in fight [Laughter.] ing the depression shall have further opportunity to wind up Mr. LUCE. He was given an opportunity to present to the its affairs. I doubt if there is a man in the House who is people of the United States a great deal of good advice which going to vote against the general purpose of this resolution. I wish the gentleman had had sense enough to follow. Amendments may be offered and there may be differences of [Laughter and applause.] opinion thereon, but upon the main purpose of the resolution [Here the gavel fell.J itself we are agreed, and I thank heaven that there is now Mr. REILLY. Mr. Chairman, I yield 5 minutes to the here a Democratic House willing to act quickly. gentleman from Kentucky [Mr. SPENCE]. I believe in adequate discussion. I do not think we should Mr. SPENCE. Mr. Chairman and ladies and gentlemen of go at these things with undue haste. I think all aspects the Committee, I think we should hark back to the last ought to be presented, but when questions of this sort come administration and consider the history of the Reconstruc along there ought to be action now, just as in 1932 there tion Finance Corporation. We will admit that its creation ought to have -been action. Imagine, if you can, the worry was originally a Republican measure. What was its original and the anxiety of those of us who were trying to do some purpose? thing for the relief of depositors in closed banks when day It wa.S to furnish assistance to the great banks, to the after day and week after week, months passed into years insurance companies, to the railroads, and there it stopped. before there was a carrying out of the full pledge that had / It seems to me that has been the basic philosophy of the been made to the American people. Republican Party, a philosophy that has brought them to Mr. HOUSTON. Mr. Chairman, will the gentleman yield? their present low estate-that if the great are taken care of Mr. LUCE. Certainly. the benefits will drip down upon the ordinary man and Mr. HOUSTON. Was the Republican Party very much in woman and they can take care of themselves. favor of the Federal Insurance of Deposits Act, and does not All the developments, all the extensions of the functions of the gentleman think it has been a good thing? the Reconstruction Finance Corporation are expansions and Mr. LUCE. I do. developments that came under the Democratic adminis Mr. HOUSTON. Then why did the Republican leadership tration. want to repeal it during the last campaign? You hesitate to give the-President control of the functions Mr. LUCE. I can answer for nobody but myself. that were created largely through his influence and in his Mr. HOUSTON. Your leader, Mr. Landon, wanted to administration. What is the power given the President un repeal it. der this bill? It is as follows: Mr. LUCE. Unfortunately, I am not a Ieader- Provided, That in order to facil1tate the withdrawal of the Mr. HOUSTON. Landon was the leader. credit activities of the Corporation when from time to time during 368 PONGRESSIONAL ·;RECORD-HOUSE JANUARY 22 such period the President finds, upon a report of the. Board of· I see millions denied education, recreation, and the oppor Directors of the Corporation or otherwise, . that credit for any tunity to better their lot and the lot of their children. class of borrowers to which the Corporation is authorized to lend 1s sufficiently available from private sources to meet legitimate de • • • • • • mands upon fair terms and rates, the President may authorize the It is not in despair that I paint you that picture. I paint it for you in hope--because the Nation, seeing and understand Director to suspend the exercise by the Corporation of any such ing the injustice in it, proposes to paint it out. lending authority for such time or times as he may deem advisable. • • • • • • That limits rather than extends his powers. The Presi If I know aught of the spirit and purpose of our Nation, we dent before action on his part must find what conditions Will not listen to comfort, opportunism, and timidity. We will and facts exist. Do you not believe that you can trust him carry on. to find these facts honestly when it was his influence and I trust I may be recognized at the proper time to offer an that of his party that made these extensions and enlarge amendment that will extend, in similar purpose, the powers ments of the powers of the Corporation? of the R. F. C. to loan money to school districts for the pay I think there is no reason at all to give any consideration ment of teachers' salaries. to the objections raised here because of the alleged enlarge We are loaning money to banks and railroads and shipping ment of the power of the President. companies. We are extending the time to handle cotton He can at the present time by his ipse dixit, by a scratch loans and extending the power to loan money to mining cor of the pen, destroy this organization. That power is not porations, all of which has justification, but may be specu increased by this amendment. lative. Some of you may suspect, and I happen to know, that I believe that the Reconstruction Finance Corporation as in spite of the best engineering report some mining projects operated under this administration has been one of the most may not pay out. And some of you may also know that loans beneficent of the agencies of the Government. Every member to banks and to insurance companies may not .all be paid of our committee I am sure has respect and confidence and back. In short, we are loaning to those who are in business admiration for the Chairman, Jesse Jones. He is able, genu- to make money and have a chance to profit largely just .ine, and apparently sincere in all his acts and conduct. because there is uncertainty in their operations . When he does not know, he will tell you that he does not But there is no uncertainty, no speculation in buying tax know, a thing very unusual in those connected with most of guaranteed warrants for teachers' salaries. The R. F. C.'s our bureaus. He always gives us the information that he has marvelous record for collection of loans was most remarkable with clarity and frankness. ' He has operated this great or when it loaned money to school districts. The distinguished ganization with great ability. It has rendered a great service gentleman from Illinois [Mr. SABATHJ, the dean of the House, to the American people, and I venture to say that those who I understand, was successful in getting loans extended to the school districts of the city of Chicago, with the result that . denounce it on the floor will, if it comes to a record vote, vote long-overdue salaries were paid. That borrowing was paid for it on a roll call, because all Members, whatever they may say here, are responsive to the will of their constituents, and back within 4 months, because a market was established. they know that the people at home want a continuance of the Private lending agencies readily bought the salary obliga tions when the R. F. C. recognized them. functions of this great Corporation. If it does not function But the power expired and was not renewed. In fact, it ·in the future, it can at least stand by and be helpful, because was specifically provided in the last session-Public, No. 325, those who may need its help will know that it is there to help section 2-when you did authorize loans to school districts in time of need. In the homely language of Chairman Jones, for construction, that none .of that authorization shoUld it is a shotgun in the corner, and it will be serviceable even apply for the purposes in the previous act-Public, No. 417, though it may never be used. It may be that we will not Seventy-third Congress, section 16-which was the payment need some of the activities of this organization again, but the of salaries. mere fact that it still may function will give confidence to the - Some of you may think that buildings constitute schools. business, the commercial, and agricultural interests of _our I do not think so. The thing that makes the school is the people. [Applause.] teacher, and if you are going to penalize the teachers, "you M.r. WOLCOTT. Mr. Chairman, I yield 5 minutes to the will penalize the children, the people for whom the President gentleman from South Dakota [Mr. CASE]. spoke, and for whom, I am sure, every Meniber in this body Mr. CASE of South Dakota. Mr. Chairman, the dis would speak were it called to his attention. tinguished gentleman who just preceded me referred to the We are authorizing the extension of borrowing to speculate extension of the loaning powers of the Reconstruction Fi in the cotton market, we are authorizing the extension of ·nance Corporation for the purpose of serving the people. borrowing to try to develop some trade with Russia through This is wholly in keeping with the spirit of the President's the .Export-Import Bank. If those things can be done in address the other day when he said: the name of helping the common people, why can we not The test of our progress is not whether we add more to the provide that teachers' salary warrants may be refinanced abundance of those ·who have much; it is whether we provide so that these warrants can be paid? This will restore the enough for those who have too little. educational opportunity the President hoped for. It will I rise to bring to your attention an omission in the time insure and reward the training and quality of instruction extension of the loaning powers of the Reconstruction Fi which a fair opportunity demands. - nance Corporation in behalf of "those who have too little", Much has been said here this afternoon in tribute to the and to bring before you a plea that the Reconstruction able Chairman of the Reconstruction Finance Corporation Finance Corporation be permitted again to loan money to Board. I wonder how many of you have read from the school districts for the payment of teachers' salaries. record that remarkable tribute from Mr. Jones to Eugene I come from South Dakota. I am getting reports re Schacher, the pilot to whom he gave credit for saving his peatedly from school boards in my district that they are life. If you have not, I commend it to you. It is the tribute unable to pay their teachers' salaries because their cash of one man to another man. In this tribute Mr. Jones said: funds are depleted and there is no market for their war When the door 1n the pilot room blew open and the flames were rants and they are salable only at exceedingly large dis- reaching into the cabin you came out and closed the door, going back into the furnace. Again the dear flew open, so terrific was counts. · the speed, and again you came out, this time a human torch, In various districts the school board is obliged to adver closed the door and went back into the fiery pit. (Extension of tise for teachers and let the job to the lowest bidder. Then remarks by Senator TOM CONNALLY, of Texas, CONGRESSIONAL the lowest bidder takes the salary warrants and tries to RECORD Appendix, p. 13, Jan~ 8, 1937.) find a market for them. When they are a year and a Then he goes on and explains how Schacher came back half or 2 years or 4 years behind, you can imagine what and warned the passengers against a rough landing and that does. Some of you also know what this does to the opened the door for them when his hands were burned to kind of schooling that is-offered and to the attempt to raise the bone; how he then went back and dragged Hefley from the standards of teacher training. the burning cockpit. . In the President's address he also said~· At the conclusion Mr. Jones reverently said: J937 :coNGRESSIONAL RECORD-Housm 369 I pray God for the knowledge to understand for what purpose to assume full responsibility for the making of this loan, He saved my life by sacrificing yours. would not have approved it. May I, in all humility, suggest that possibly it was to give Mr. Dawes was Chairman of the Reconstruction Finance Mr. Jones and his organization the opportunity to establish Corporation. He was likewise acting in a dual capacity as a better basis for the finances of the common schools of the director of the Central Republic Trust Cq. country and thereby to bring to other boys and girls some He only acted as Chairman of the Reconstruction Finance thing of the courage, devotion to duty, and spirit of sacrifice Corporation for a period of a little over 4 months, and then 'embodied in the life of Eugene Schacher. resigned. Shortly after he resigned, and hardly had he Mr. Chairman, Schacher was the product of South Dakota gotten off the train at Chicago, Ill., when the newspapers ~chools, and so was the other pilot, Ed Hefley. Their fami blazed forth in headlines that the Central Republic Trust lies lived in South Dakota at the time of this tragedy. You Co. of Chicago, ill., had been granted a loan by the Recon may question the making of loans for certain purposes, but struction Finance Corporation of $90,000,000, a substantial to make loans to produce schools which will train boys and portion of which was made immediately available to them. give them that kind of a spirit is as worthy an object as any Are there any of us here today who are so innocent as to object for which you can loan money. [Applause.] believe that General Dawes did not have something to do The CHAIRMAN. The time of the gentleman from South with the manipulations that were going on relative to the Dakota [Mr. CASE] has expired. Central Republic loan at the time he was acting in the Mr. WOLCOTT. Mr. Chairman, I yield 5 minutes to the dual capacity as Chairman of the Reconstruction Finance gentleman from Wisconsin [Mr. WITHROW]. Corporation and as director of the Central Republic Trust Mr. REILLY. Mr. Chairman, I also yield 5 minutes to the Co., of Chicago, Til.? gentleman from Wisconsin. There is no gentleman, in my opinion, who can justify The CHAffiMAN. The gentleman from Wisconsin [Mr. that loan. It is said that if that loan had not been WITHROW] is recognized for 10 minutes. granted the entire financial structure of the Northwest Mr. WITHROW. Mr. Chairman, in the Seventy-second would have crumbled. There is no secrecy surrounding Congress I opposed the enactment of the Reconstruction what happened to my people, the people of the Northwest. Finance Corporation legislation. I did that because the group They were crucified with one bank failure after another. With which I was affiliated attempted to amend the act at Today we have the unholy spactacle of the Government of that time so as to set aside and make it mandatory that 20 the United States suing the stockholders of the Central Re percent of the credit in the original set-up should be extended public Trust Co., of Chicago, ill., to get back a small portion to those borrowing not more than $50,000. The amendment of the moneys involved in this transaction. was defeated. I then voted against the passage of the The gentleman from Michigan very ably stated that the measure. Reconstruction Finance Corporation had shown a profit, a. Today I shall vote for an extension of the Corporation's net profit of $160,000,000. That is very fine, but how much activities. I realize that great good has come to the Nation more of a profit could be shown had the General Dawes by reason of the activities of the Reconstruction Finance debauch not been permitted. How much more credit could Corporation. I also realize that there have been a great have been extended to my people who were in dire need of many abuses of that authority. It is my purpose today to it at that time? How much could the interest rate have been place a safeguard against further abuses of that authority. reduced on loans made to my people? At the proper time I will submit an amendment on page 2, General Dawes was very much of a businessman while he line 10, to strike out the period and insert in lieu thereof a was Chairman of the Reconstruction Finance Corporation. colon and the following: Oh, yes; indeed he was. He had two yardsticks. He had Provided further, That hereafter, except with the approval of the a yardstick that was used on the small banks. They came President in each case, the corporation shall not make any loan to to the R. F. C. for loans. What did the Reconstruction any borrower if the aggregate amount of loans by the corporation to such borrower already exceeds $1 ,000,000, or would exceed Finance Corporation require of them? They granted them $1,000,000 if such loan were made. loans, it is true, yes; but what did they have to do to I propose this amendment for three reasons: negotiate the loans? They had to deposit adequate col First. Because I have confidence in any man who has been lateral as security and then pay 5¥2 percent for the privi elevated to the high position of Chief Executive of the United lege of using the money. Neither the R. F. C. nor the Fed States. eral Government has lost money in its dealings with the · Second. Because there is continual changing in the mem small institutions throughout the United States; in fact, bership of the Board of the Reconstruction Finance Cor they have made money, and that is why the R. F. C. can poration, a shifting that can be likened to the shifting of the now show a substantial profit. sands. It is reasonable to assume that inasmuch as· the Recon Third. Because it is the loans of $1,000,000 and over that struction Finance Corporation required adequate collateral c'ome to the attention of the people and are scrutinized. as security on loans made to the small banks that the Therefore we must keep tl!ese loans above reproach if the Central Republic Trust Co. would be required likewise to people are to have confidence in us and the agencies of our supply adequate collateral to secure their loan. Government. That, indeed, was not the case. A substantial portion of I have in mind several abuses. Probably the most fla the collateral securing the Central Republic Trust Co. loan grant among these abuses was the loan granted to the Cen consisted of Insull securities that are today hardly worth tral Republic Trust Co., of Chicago, ill. That loan of $90,- the paper they are written upon. [Applause.] 000,000-$50,000,000 of which it is expected will be lost to [Here the gavel fell.l the Reconstruction Finance Corporation and to the Treasury Mr. \VOLCOTT. Mr. Chairman, I yield myself 1 minute. of the United States- Mr. Chairman, in view of what the gentleman from Wis- Mr. WOLCOTT: Mr. Chairman, will the gentleman yield? consin has said, I think it is interesting to note what Mr. Mr. WITHROW. If the gentleman will please wait until Jones had to say about this so-called Dawes loan. We all I get through with my statement. -· admire Mr. Jones; we admire him because he is intellectually Certainly the circumstances surrounding this loan to the honest. Central Republic Trust Co. are not above suspicion and re Before the Committee on Banking and Currency last year proach. What were the circumstances? This loan was Mr. Jones said that he disclaimed no responsibility for the negotiated shortly after the creation of the Reconstruction Dawes loan, so-called. Although he was not chairman of Finance Corporation. the board when the loan was made, he was a member of In passing, I may say I believe even President Hoover, as the board. -He voted for the loan. He thought it was a good callous as he was to the conditions that existed in the coun loan then; he still thought it was a good loan. try at that time, and as unmindful of the suffering of the Instead of the losses being $50,000,000, he said that they ,people in these United States, even he., had he been forced know definitely the losses will be less than $10,000,000. He LXXXI~ - ~ 37Q CONGRESSIONAL_RECORD- _ HOUSE JANUARY 22 said further that if we were to have lost the whole $90,000,000, b€cause I like Mr. Jones; but I ask if any Member of this it would have been an almighty good investment on the part House having a small business in his district has received a of the Federal Government, because it saved the depositors loan from the R. F. C. to help keep labor working? I know in the Seventh Federal Reserve District millions of dollars. I tried to secure loans from the R. F. C., especially for two [Applause.] manufacturing concerns in my district, one the H. B. South [Here the gavel fell.] wick leather factory, of Peabody, Mass., and the other the Mr. WOLCOTT. Mr. Chairman, I yield the balance of my Sjostrom Lawrence Dye Works Co., but without success. time to the gentleman from Wisconsin [Mr. BoiLEAU]. Both of these industries had gone along for years, paid good Mr. BOILEAU. Mr. Chairman, during the course of the wages, and kept people, among others, over the age of 50 debate it has been charged by Republican Members of the at work, but they could not get a nickel out of the R. F. c. House and by Members of the Committee that the proviso Mr. Sjostrom's concern had every prospect of business suc in the first section of this bill gives the President additional cess, big orders and sound management for this coming year powers and it gives him power to suspend types of loans to and presented a fine case to the R. F. c. Nevertheless, be made by the Reconstruction Finance Corporation. This while other concerns less sound and with dubious prospects charge is made by Republicans, and from what I have been for success were taken care of in Massachusetts by the able to gather from the debate the Democratic Members R. F. C., the Sjostrom and Southwick factories were left by of the Committee on Banking and Currency agree that this the wayside, and as a result their employees will be thrown proviso on the first section does give the President the out of work. power to suspend or to terminate various types of loans Mr. Dawes got his $90,000,000. The railroads got their. made by the Reconstruction Finance Corporation. millions of dollars. Praise has been given the R. F. C. for its Possibly I am unable to read the English language under wonderful work in giving the Missouri Pacific millions of standingly, but I cannot agree with the statements made dollars to pay over to J. Pierpont Morgan. We want to know either by the Republican or the Democratic Members of when the R. F. C. is going to begin to follow out the law that the committee; because, as I read this proviso it does not we enacted last year and take care of the small-business men substantially change existing law. I do not believe there is of the United States- who employ labor who need the work. a member of this committee or a lawyer of the Reconstruc [Applause.] tion Finance Corporation, or anyone else who will claim that Mr. RANKIN. Will the gentleman yield? this proviso gives the President any more power than he Mr. CONNERY. I yield to the gentleman from Mississippi. has now; and I am at a loss to understand why the Repub Mr. RANKIN. I want to say to the gentleman from Mas- lican and Democratic members of the Committee on Bank sachusetts that last spring when we had flood and cyclone ing and Currency seem to agree that this language does give disasters certain loans were made to the people in these the President this additional power. I think the very dis areas, and these loans not only saved the homes of laborers tinguished gentleman from North Carolina [Mr. HANcocK], but furnished work to thousands' and perhaps hundreds of made a statement with which we will all agree, that it has thousands of laboring men. been the policy the Reconstruction Finance Corporation not Mr. CONNERY. That might be true of Mississippi, but it to make loans where private capital was available; and I is not true in Massachusetts. W. P. A. took care of that; believe we will all agree that even though the law did not Mr. Hopkins, not Mr. Jones. We got very little out of Mr. specifically require the Reconstruction Finance Corporation Jones' R. F. C. organization. to desist from making loans under those circumstances, it Mr. KOPPLEMANN. Will the gentleman yield? has, nevertheless, been their policy to deny loans to appli Mr. CONNERY. I yield to the gentleman from Con cants when money was available from private sources. If necticut. that were their policy, certainly they must have been au Mr. KOPPLEMANN. Does the gentleman know that in thorized to deny that type of loan, certainly they must have his district the local committee as well as the agency of the had the.power; and from the very nature of things we must R. F. C. reported favorably upon applications, but when they assume they had the power to deny that type of loan. came to Washington they were turned down? Can any Member point out how this language gives addi Mr. CONNERY. Yes. I am not talking about Mr. Joseph tional power to the President to deal with this type of loan? Carney's office at Boston. Mr. Carney's office understood the The proviso reads substantially that when the President finds conditions and recommended favorably for these concerns. I that credit for any class of borrowers to which the Corpora am talking about Jesse Jones and the R. F. C. in Washington. tion is authorized to lend is sufficiently available from private R. F. C. headquarters at Washington seem to turn down any sources to meet legitimate demands upon fair terms and thing that might help the little fellow. I would like to see rates, the President may authorize the directors to suspend them wake up and take care of the poor people of the United the exercise by the Corporation of any such lending authority. States. Never mind the Union Pacific, the Pennsylvania The language of the pending bill merely states that the Railroad, and other big corporations. They are always well President can, if he finds there is sufficient private capital taken care of. Why not put into effect the intentions of available, authorize the directors-not direct, but authorize Congress and protect the small-business man for a change? the directors-to suspend the making of this type of loan. Mrs. ROGERS of Massachusetts. Will the gentleman They already have the power and have been exercising it. yield? Since the creation of the R. F. C. the board of directors Mr. CONNERY. I yield to the gentlewoman from Massa have · been exercising the power granted to them to deny chusetts. loans when funds are available from private sources. Mrs. ROGERS of Massachusetts. Only 3 days ago I re All this proviso of the pending bill does is to say that the ceived a letter from a small industry thanking the R. F. C. President can authorize them to do a thing they have been and me for a loan that had been made. In that case the d9ing for years. I cannot s~e the sense or necessity for this industry did employ labor, and I may say to the gentleman language, and I respectfully request some member of the a number of the operatives were enabled to keep their homes committee to explain to the House the necessity for placing it as a result. in the bill. It seems to me to be entirely surplusage and Mr. CONNERY. I am glad to hear that. It only proves that it should not be in the bill. what I have contended from the beginning-that, as far as [Here the gavel fell.] loans to small industry are concerned, Mr. Jesse Jones is a Mr. STEAGALL. Mr. Chairman, I yield 3 minutes to the fine Republican and the Members on the Republican side of gentleman from Massachusetts [Mr. CoNNERYl. the House can get somewhere with him, but we Democrats Mr. CONNERY. Mr. Chairman, Jesse Jones, of the cannot get a thing. [Laughter and applause.] R. F. C., has been highly praised by Members on both sides [Here the gavel fell.] of the aisle today as a wonderful executive, a perfect gentle Mr. GIFFORD. Mr. Chairman, in the printed hearings man, an~ a wonderful man. I agree with all this praise, of the testimony taken before the committee I have been 1937 CONGRESSIONAL RECORD-HOUSE 371 given credit for a number of questions that were in fact make the loans", and then turn right around and tell the asked by the gentleman from Connecticut [Mr. KoPPLE President he may nullify your action by telling the Recon MANN J. I ask unanimous consent that the printed hearings struction Finance Corporation that the loans shall not be be corrected accordingly. made? It does seem ·to me, Mr. Chairman, the Members The CHAIRMAN. The gentleman's request is not in order on that side are looking around for an opportunity to in the Committee of the Whole. show the President that they want to give him every pos All time has expired. The Clerk will read the bill for sible power that is at their command to give him. amendment. You have picked out a delightful bill to do this, I am · The Clerk read as follows: sure. This Corporation is in the midst of liquidation and Be it enacted., etc., That notwithstanding any other provision of still you come in here at this late hour and grant the law, until the close of business on June 30, 1939, the Reconstruc President authority to formulate the loan policy of the tion Finance Corporation is hereby authorized to continue to per form all functions which it is authori.zed to perform under law, Reconstruction Finance Corporation. Why did you not do and the liquidation and winding up of the Corporation's affairs as this when it was needed, if it was ever needed, 4 years ago? provided for by section 13 of the Reconstruction Finance Corpora Are you looking for opportunities to delegate your authority?. tion Act, as amended, are hereby postponed during the period that functions of the Corporation are continued pursuant to this act: You are not that lazy-minded. You are men of ability. Provided., That in order to facilitate the withdrawal of the credit You are men with some strength of character and some activities of the Corporation when from time to time during such intellectual honesty. I do not believe you want to delegate period the President finds, upon a report of the Board of Directors this authority or this power to negative your acts to any of the Corporation or otherwise, that credit for any class of bor rowers to which the Corporation is authorized to lend is sufficiently individual, no matter how much faith you may have in available from private sources to meet legitimate demands upon his ability or integrity. fair terms and rates, the President may authorize the directors to The adoption of my amendment will continue the Recon suspend the exercise by the Corporation of any such lending authority for such time or times as he may deem advisable. struction Finance Corporation, in statu quo, just as I think Mr. WOLCO'IT. Mr. Chairman, I offer an amendment, the majority of this House want it continued. which I send to the desk. [Here the gavel fell.J • The Clerk read as follows: Mr. STEAGALL. Mr. Chairman, the position of the gen Amendment offered by Mr. WoLcoTT: On page 1, line 11, after tleman from Michigan comes more or less as a surprise in the word "Act", strike out the remainder of line 11 and all of lines view of the history of this legislation. It will be recalled that 1 to 10 on page 2. the original Reconstruction Finance Corporation Act, sub · Mr. WOLCO'IT. Mr. Chairman, we have seen fit this mitted to the Congress by the Hoover administration, sought afternoon to try to interpret this proviso of section 1 to to afford aid to banks, insurance companies, and railroads, mean we are limiting the power of the Pr.esident over poli the great financial institutions of the country. There were cies of the Reconstruction Finance Corporation. However, certain liberalizing amendments incorporated in the bill at a careful reading of this proviso reveals it does not repeal that time which were proposed by the Baliking and Currency· the existing law which gives the President authority to Committee of the House and adopted by the House. These terminate the Reconstruction Finance Corporation, but, on liberalizing amendments to the bill were adopted by a Demo the contrary, in addition to the power he now has to termi cratic House of Representatives. One provision which was nate the Reconstruction Finance Corporation, he is clothed incorporated by the subcommittee that drafted the bill and with power, according to the interpretation placed upon by the Committee on Banking and currency, which was aJso this proviso by Mr. Alley, general counsel of the Reconstruc adopted by a Democratic House and finally became a part of tion Finance Corporation, to direct the Reconstruction the law, was to make closed banks eligible for loans at the Finance Corporation to suspend any particular activity. R. F. C. for the benefit of depositors in such institutions. I In this connection, may I read from the testimony of wrote this amendment with my own hands, if I may say so, Mr. Alley, who has the responsibility of interpreting this and I fought for it all the way to its passage. The adminis act as it applies to the Board which he represents? The tration at that time opposed the passage of that provision of following appears on page 3 of the hearings: the act and fought it all the way into the conference between Mr. HANcocK. Doesn't the President have that power? the two Houses, and so it was as to every liberalizing amend Mr. ALLEY. He has the power to terminate entirely, but no ment that was adopted at that time. Everything that has power to suspend. The power to terminate is a definite one. But if terminated, there will be no power to start the wheels of been done for the benefit of the people, about whom my good lending again. And, as I understand, one of the purposes of the friend the gentleman from Michigan is so solicitous, has been Reconstruct ion Finance Corporation, if it is extended, is to make put in this legislation under a Democratic administration and it a stand-by agency in case of need, and the President of the under the leadership of the present occupant of the White United St ates, if he finds that the lenders engaged in the mort gage-loan field, that is, the mortgage companies are taking care House, upon whom we are conferring in this bill the power of amply of needful loans, he can direct the Board to discontinue which the gentleman from Michigan deplores. lending in the mortgage field or any commodity field, for instance. This is all there is in the situation. If we want to con That is the interpretation which the man who will have tinue the activities of the Corporation until the end of the to interpret it for the board he represents places upon this fiscal year 1939, we have only to adopt this amendment and provision. Who are we to say otherwise? After all, it is leave the law as it is; but, certainly, it is desirabl~and his interpretation which counts and not our interpretation, I employ the language of. the bill....:.....that as soon as the Presi because the President can with a stroke of the pen negative dent ascertains that sufficient funds from private sources the legislative intent which we spoke about today. Regard are available to meet legitimate demands at fair rates the less of our action here today, he can with a stroke of the activities of the Corporation may be terminated. Surely pen nullify our action. it is the desire of every Member of the House, as well as May I ask you gentlemen who fought so valiantly for the :people of the country, that the Corporation shall not an authorization to loan money to small industry, my be given useless or unnecessary pow~r to operate over an friends who so valiantly fought for loans to irrigation and arbitrary period of time, during which the Corporation drainage districts, to mining companies, what are you going would be besieged With applications for loans which it to do? Are you going to allow the President of the United would not be desirable to employ the necessary personnel States to nullify these activities and your express legisla to handle. I think everybody agrees that as soon as funds tive purpose in granting to the Reconstruction Finance are available for legitimate credit demands -from normal Corporation these authorities? If left within the bill, you sources the Corporation should cease its activities; and we are doing exactly that thing. What are you gentlemen are conferring this power upon the President, and the who favored helping the school districts of the West, the record justifies the statement that the President wm not Midwest, and the East going to do? Are you going to put arbitrarily terminate any of these powers because we are yourselves in the paradoxical position of saying to the Re under obligation to him for many of the· liberalizing pro construction Finance Corporation, "You are authorized to visions of existing law. 372 CONGRESSIONAL RECORD-HOUSE JANUARY 22 Mr. Chairman, I move that all .debate 'on the- pending week and the amendment can go to the Senate. There is amendment do now close. no reason for hurry. It will only hold up loans a day or The motion was agreed to. two if the bill does not get there in time. It does not mean The CHAIRMAN. The question is on the amendment of- that the Reconstruction Finance Corporation is going out fered by the gentleman from Michigan. · of business entirely if the bill is not passed today. I repeat The question was taken; and on a division (demanded by every time I have offered this amendment the gentleman Mr. WoLCOTT) there were-ayes 41, noes 123. · - has made the same objection. I would like the gentleman So the amendment was rejected. · · to tell the House why the hospitals cannot offer security as Mr. COCHRAN. Mr. Chairman, I offer an ame::1dment. good as the railroads or other corporations of this country. The Clerk read as follows: Mr. STEAGALL. Mr. Chairman, I decline to yield fur Amendment offered by Mr. CocHRAN:. Page 2', after line 10, insert ther and I renew my motion that all debate on this amend the following: ment be now closed. "'Ib.e Reconstruction Finance Corporation Act, as amended, 1S hereby amended by inserting after section 5e thereof the following The question was taken, and the motion was agreed to. new section: The CHAIRMAN. The question is ·On the amendment " • SEc. 5f. 'Ib.e Reconstruction Finance Corporation. is authorized offered by the gentleman from Missouri [Mr. CocHRAN]. and empowered to make loans to any public or private hospital The question was taken; and on a division (demanded by organized under the laws of any State upon the same terms and conditions and subject to the same limitations as are applicable Mr. CocHRAN) there were 71 ayes and 88 noes. in the case of loans to financial institutions specified in section 5 Mr. CONNERY. Mr. Chairman, I demand tellers. of this act, as amended.' " The CHAIRMAN. The gentleman from Massachusetts de Mr. COCHRAN. Mr. Chairman. for a number of years I mands tellers. Those in favor _of ordering tellers will rise and have tried to get an amendment to the Reconstruction stand until counted. [After counting.] Nine Members have Finance Corporation Act providing that hospitals shall re risen, not a sufficient number, and tellers are refused. ceive the same recognition that others are receiving. The So the amendment was rejected. hospitals of this country have been in need of as much as Mr. CASE of South Dakota. Mr. Chairman, I offer the sistance during this depression as any other business in the following amendment, which I send to the desk. United States. The Clerk read as follows: When a man or a woman is taken to a hospital, an emer Amendment offered by Mr. CASE of South Dakota: Page 2, after gency case, they are not stopped and asked if they have line 11, insert the following: . "Section 16 of the act approved June 19, 19341 Public, No. 417, money to pay the bill. They are taken in. But in the end Seventy-third Congress, is hereby amended by striking out 'Jan it develops many have not had money to pay. That means uary 31, 1935' and inserting in lieu thereof 'June 30, 1939', and by it is put on the books. Millions of dollars are owed to the striking out 'June 1, 1934' and inserting in lieu thereof 'JUne 30, 1938.' •• hospitals in your district and in my district. I cannot con ceive of a better loan. The CHAIRMAN. The question is on the amendment I know there is not a Member of this House who served in offered by the gentleman from South Dakota. Debate has the two preceding Congresses who did not receive an _appeal been closed on this section and·all amendments thereto. from the hospitals of their district to give them the same Mr. WOLCOTI'. Mr. Chairman, a parliamentary inquiry. privileges in the Reconstruction Finance Corporation as other The CHAIRMAN. The gentleman will state it. corporations receive. They should get it. Have you ever Mr. WOLCOTI'. Do I understand that all debate has been stopped to think what would happen if the hospitals could closed? not carry on and closed? The sick would have no place to The CHAIRMAN. Debate has been closed on this section go in an emergency. The purpose of the amendment is to and all amendments thereto by a vote of the Committee. permit the hospitals to refinance, reduce the interest rates Mr. MICHENER. Mr. Chairman, a parliamentary inquiry. on their oblig'ations, so they can carry on and continue their The CHAIRMAN. The gentleman will state it·. charity work. Mr. MICHENER. I do not think the motion provided "all This amendment clearly states that it is subject to the amendments thereto." The motion made by the ·chairman same limitations as other borrowers are subject to now. In was that all debate on this section be closed. other words, they must post sufficient collateral to secure The CHAIRMAN. The Chair has a very distinct recollec recognition. No one is asking to get a loan that cannot tion of stating the question as to whether or not debate comply with the rules and regulations · of the Corporation. should close on this section and all amendments thereto, and If you continue to close the door to the hospitals they might so put the question, and the motion was adopted. be required to close their doors to the sick and disabled. Mr. MICHENER. I referred to what the motion stated. There is merit to this proposal. Mr. WOLCOTT. Mr. Chairman, I· ask unanimous consent I hope the Committee will pass this amendment and give that the gentleman from South Dakota be allowed to pro the hospitals of the country an opportunity to refinance their ceed for 5 minutes. obligations and reduce the interest rate; that is what they The CHAIRMAN. The gentleman from ·Michigan asks want to do, and it can be done through the Reconstruction unanimous consent that the gentleman from South Dakota Finance Corporation if you agree to the amendment. may proceed for 5 minutes. Is there objection? fApplause.J Mr. RAYBURN. Mr. Chairman, I reserve the right to ob Mr. STEAGALL. Mr. Chairman, this amendment has ject. This is just like going up the hill and coming down been rejected repeatedly during past sessions of Congress. again. I think it undesirable at this late hour, when liquidation of Mr. WOLCOTI'. There was a misunderstanding on our the Corporation is so much desired, and in fact in progress, part, because the gentleman from South Dakota intended to that we should embark on the policy provided for in this offer this amendment· and debate it. · · amendment. · Mr. RAYBURN. I was in the Chamber when the gentle Another reason why it would be undesirable to adopt this man discussed the amendment and I feel constrained to amendmimt at this time is that this legislation must be object. passed expeditiously if we accomplish the purpose that is Mr. CASE of South Dakota. Mr. Chairman, I offer a desired. If this amendment is adopted, it will throw the preferential motion, which I send to the desk. bill into conference and delay its passage. The CHAIRMAN. The Chair would inquire of the gentle Mr. Chairman, I move that an debate on this amendment man from Michigan if this is his motion? now close. Mr. WOLCOTT. Mr. Chairman, the gentleman from Mr. COCHRAN. If the gentleman will yield? The gen South Dakota makes a written motion to strike out the tleman bas made the same argument against this amend enacting clause. ment to the Reconstruction Finance Corporation Act here The CHAIRMAN. The gentleman from South Dakota tofore. This legislation does not have to be passed .until next offers a motion. which the Clerk will report. 1937 .CONGRESSIONAL - RECORD-HOUSE. . 373 The Clerk read as follows: The CHAIRMAN. The gentleman will state the point of Mr. CASE of South Dakota moves to strike out the enacting clause. order. The CHAffiMAN. The motion submitted is not in proper Mr. STEAGALL. This debate is not directed to the amend form. ment before the committee. Mr. WITHROW. Mr. Chairman, I offer a preferential mo The CHAIRMAN. Of course, the motion to strike out the tion, which I send to the desk. enacting clause naturally brings into scope the enti.:i'e bill Mr. RAYBURN. Mr. Chairman, did the gentleman from under consideration. South Dakota withdraw his first amendment? The time of the gentleman from Wisconsin has expired. . The CHAIRMAN. That amendment is still pending. Does the gentleman from ·Alabama seek recognition in Mr. CASE of South Dakota. Mr. Chairman, I ask unani opposition to the motion? mous consent to withdraw that amendment so as to offer it Mr. STEAGALL. I do not. at the close of another section. Mr. DIRKSEN. Mr. Chairman, I rise in opposition to the The CHAIRMAN. The gentleman from South Dakota motion. asks unanimous consent to withdraw his amendment. 1s · Mr. Chairman, this has been a rather singular debate this there objection? afternoon, for in the time I have been in the Chamber I There was no objection. have heard the Reconstruction Finance Corporation re The CHAIRMAN. The gentleman from Wisconsin offers proached for being so niggardly in the matter of industrial an amendment, which the Clerk will report. loans, and then I observe the gentleman from Wisconsin The Clerk read as follows: indicating they were too generous in the matter of making loans and that so~e restriction ought to be placed upon their Mr. WITHROW moves that the Committee do now rise and report the bill to the House with the recommendation that the enacting authority. clause be stricken out. I am wondering what .the temper of the House is between The CHAIRMAN. The gentleman from Wisconsin is those two extremes. recognized for 5 minutes. Permit me a word in defense of the Reconstruction· Mr. WITHROW. Mr. Chairman, I moved to strike out· Finance Corporation. I sat on the Co~ttee on Banking the enacting clause for the purpose of addressing the House and Currency with the gentleman from Alabama [Mr. relative to an amendment that I have on the Clerk's desk. STEAGALL] and a great many others when we were seeking I think it is very unfair that debate upon this important to fashion language under which the Reconstruction Finance question was shut off so quickly. My amendment would Corporation could operate in connection with so-called in provide that all loans of over $1,000,000 would have to have dustrial loans. We talked about the need for supplying ade the approval of the President-of the United States. quate collateral before an industrial loan would be granted. I want to address my remarks for a moment to the state We talked about such language as "reasonable security." ment of the gentleman from Michigan, who read a letter Members of the committee will bear out the time spent in from Mr. Jesse Jones, now Chairman of the Reconstruction seeking to fashion the right kind of language that would Finance Corporation, who was a member of the Reconstruc operate for the guidance of the Reconstruction Finance tion Finance Corporation, under Chairman Charles Dawes, Corporation, and you· can readily believe that it is difficult when the loan to the Central Republic Trust Co. wa.S ap to find language to cover all cases coming before the R. F. c. proved. The letter states that instead of the Central Repub Nobody had more cause for being aggrieved about their lic transaction being a $50,000,000 "racket" it was only a industrial loan procedure than I, for I prevailed upon some $10,000,000 "steal." My colleagues, the original loan of of the industries in my district to spend $2,000 for an audit, $90,000,000 had been reduced by a transfer of assets to the and then went to the regional office of the Reconstruction R. F. C. by the bank to approximately $55,000,000 at the time Finance Corporation, only to find that the loan could not be the case went to trial, January 23, 1936. Mr. Chairman, if made. But we learned exactly what the gentleman from Jesse Jones, as Chairman of the Reconstruction Finance Massachusetts has doubtless found before, and that is that Corporation, is able to wheedle out of the assets of the Cen too often the money was to be used to pay taxes; too often it tral Republic Trust Co., of Chicago, Ill., enough cash so was to be used to liquidate old debts; too often it was to be that he can cut down the loss to $10,000,000, then I say to used to retire some delinquency that showed up in the report you that he is in reality performing a feat of magic. He is of the corporation; and too often the money was not to be pulling the rabbit out of the hat. I sincerely hope this used for the purpose of stimulating employment. Very amendment will be .adopted, so as to put an end to this type properly, therefore, under the language of the law, the Re of "racketeering within the law." construction Finance Corporation turned them down. Mr. CONNERY. Mr. Chairman, will the gentleman yield? They have done a pretty fair job here, I should say. I Mr. WITHROW. Yes, indeed. fancy if you will examine most of these applications for Mr. CONNERY. As I understand the purpose of the gen industrial loans you will find there was probably good reason tleman's amendment, it is that the President himself must for turning them down. I will say to the membership of approve all loans over $1,000,000, so that the R. F. C. can look this House if you want to dip into the Federal Tre~ury and after the little fellow for a change and forget the forty-mil you want to broadcast the taxpayers' money into all corners lion -dollar boy. of the 48 sovereign States, then there is only one thing you Mr. WITHROW. That would be the result. I thank the have to do, and it is within your power. Strike out the word gentleman. "loan" in all Reconstruction Finance Corporation authoriza Mr. THOMAS of New Jersey. Mr. Chairman, will the tions and supply the word "give", and then you have done it. gentleman yield? That is all that is necessary. Mr. WITHROW. I am pleased to yield. We were trying somehow to define the line between "loan" Mr. THOMAS of New Jersey. The gentleman from Wis and "gift", make them generous and at the same time have consin really refers to this loan to the Central Republic Bank proper regard for the Nation's purse. I say to you that it in terms which would make us believe it was the only bad cannot be done, but if you want to spend this money like loan ever made by the Reconstruction Finance Corporation. drunken sailors, then you use the word "give" instead of I would like to know whether the gentleman knows of any "loan", and the job is done. bad loans that were made in the State of Wisconsin. It is no easy matter to administer a corporation of 2,600 Mr. WITHROW. Maybe there have been bad loans made people, making mining loans, fishing loans, catastrophe in Wisconsin. I will say this to the gentleman, that the loan loans, closed-bank loans, and a half a hundred other kinds in question here represents the most flagrant violation of the of loans. To .the huge task of the Reconstruction Finance authority and confidence placed in an agency by the Con Corporation must be brought a rare degree of discernment gress that I know of. in order to discharge the responsibilities that go with that Mr. STEAGALL. Mr. Chairman, a point of order. Corporation. 374 CONGRESSIONAL .RECORD-: HOUSE JANUARY 22. Whtm Mr. Jones comes before the ·committee and . says be (c) To provide funds for Federal housing.- turned into the Federal Treasury $190,000,000 in interest~ C. Amount not to exceed $50,000,000 to purchase preferred stock and notes of insurance companies. and made $225,000 in profits out of the bonds that he took D. The sum of $500,000,000 to enable the Federal Relief Admin~ from the Chicago school district, when he shows a splendid istration to make grants to States and Territories for relief work: record of earnings, and a proper regard for the administra E. For $300,000,000 to be allocated to the Federal Land Bank Commissioner for loans to joint-stock land banks and to farmers. tion of public funds, I doubt whether we are on good ground F. Not to exceed $200,000,000 to allocate funds to Secretary of. when we seek to reproach the operations and administra the Treasury to make payments for subscriptions to capital stock tion of the Reconstruction Finance Corporation. But if you of the Home Owners' Loan Corporation. want them to be generous, if ·you want them to throw the G. Not exceeding $250,000,000 to purchase at par value of deben tures and other obligations of the Federal Deposit Insurance Cor money everywhere, if you want them to disregard the tax poration. payers of the country, all you have to do is to substitute H. Not exceeding $250,000,000 to purchase marketable securities the word "give" for the word "loan", and you have done acquired by the Federal Emergency Administration of Public the job. That, however, is our responsibility and not his. Works. It will thus be seen that the purposes and provisions of this act [Applause.] were far-reaching and extended into every phase of relief, and [Here the gavel fell.J therefore should have always remained nonpartisan and in the The CHAIRMAN. The question is on the motion of the hands of the people. No one could possibly conceive that this great institution was to be prostituted to the private banking and gentleman from Wisconsin [Mr. WITHROW] to strike out business interests of the Northwest to be used and operated by the enacting clause. their agents and representatives for their own interests and not The motion was rejected. for the people. No one dreamed that the two bank organizations of the Twin Cities, namely, the Northwest Bancorporation and Mr. ENGEL. Mr. Chairman, I offer an amendment. its twin sister, the First Bank Stock Corporation, were soon to The Clerk read as follows: fasten their tentacles around the throat of this great public enter~ Amendment offered by Mr. ENGEL: On page 2, line 10, after the prise. Yet in the Northwest such was the fate of this Government word "advisable", strike out the period and insert the following: corporation. "Provided further, That no loan shall be made to any individual When the office was set up in the city of Minneapolis we find or corporation for the purpose of engaging in any business not in control, and with minor changes they still control the destinies heretofore engaged in". of this great public benefactor in the Northwest: Joseph Chapman, of the Northwest National Bank of Minne~ The CHAIRMAN. The question is on the amendment apolis and the Northwest Bank Corporation. Was the first manager offered by the gentleman from Michigan [Mr. ENGEL]. and served to September 30, 1934. Republican. Ben Maynard, acting manager. Formerly with the First National The amendment was rejected. Bank of Minneapolis, the originator of the bogus holding com~ Mr. WITHROW. Mr. Chairman, I offer an amendment, pany known as the First Bank Stock Corporation. Republican. which is at the Clerk's desk. T. F. Wallace, advisory committee; director, First National Bank of Minneapolis, and member, First Bank Stock Corporation. Re The Clerk read as follows: publican. Amendment offered by Mr. WITHRow: On page 2, line 10, strike Elmer E. Adams, president, First National Bank of Fergus Falls, out the period, insert in lieu thereof a colon and the following: member of First Bank Stock Corporation. Republican. "Provided further, That hereafter, except with the approval of E. S. Bice, banker, Michigan. Republican. the President in each case, the corporatiqn shall not make any E. W. Decker, president of the Northwest Bank Corporation. loan to any borrower if the aggregate amount of the loans by Republican. the corporation to such borrower already exceeds $1,000,000 or C. T. Jaffray, advisory committee, former chairman, board of would exceed $1,000,000 if such loan were made." directors of First National Bank, Minneapolis; president of Soo Line Railroad Co.; one of the 0rganizers of the First Bank Stock. The CHAIRMAN. The question is on the amendment Corporation. President of the Minneapolis Trust Joint Stock offered by the gentleman from Wisconsin. Land Bank. Republican. The amendment was rejected. John Oace, vice president of the First National of St. Paul; director of the First Bank Stock Corporation. Republican. The Clerk read as follows: Here we have the direct proof of the fact that representatives SEc. 2. (a) Section 7 of the act approved January 31, 1935 of these two bank-holding companies gained and still have control (Public, No. 1, 74th Cong.), is hereby amended . by striking from of the Government's Finance Corporation. ~ the first sentence thereof "April 1, 1937" and inserting in lieu Through the control of this organization they could serve the thereof "the close of business on June 30, 1939"; section 1 of the following institutions: act approved March 31, 1936 (Public, No. 484, 74th Cong.), is First. Buy bank stock and obligations. hereby amended by striking from the first sentence thereof "Feb~ Second. Direct grants for relief. ruary 1, 1937" and inserting in lieu thereof "the close of business Third. Grant loans to Land Bank Commissioner. on June 30, 1939"; section 9 of the act approved January 31, 1935 Fourth. Allocate funds for purchase of stock in Home Owners' (Public, No. 1, 74th Cong.), is hereby amended by striking from Loan banks. the first sentence thereof "June 16, 1937" and inserting in lieu Fifth. Allocate fund for Federal Deposit Insurance. thereof "the close of business on June 30, 1939". Sixth. Purchase securities acquired by the Public Works Ad {b) The agencies referred to in the acts referred to in subdi~ ministration. vision (a) of this section, and the Reconstruction Finance Con~ No greater power over the people could have ever been usurped struction Mortgage Co., shall be deemed to be _established by or by this designing band of financial racketeers. pursuant to law within the meaning. of section 7 (a) of the First Deficiency Appropriation Act, fiscal year 1936. While these chief officials of the Reconstruction Finance Corporation in Minneapolis were acting as officers of this in Mr. BURDICK. Mr. Chairman, I move to strike out the stitution, they were, at the same time, organizing a chain last word. bank monopoly in the Northwest through the instrumentality The CHAffiMAN. The gentleman from North Dakota is of the Northwest Bancorporation and the First Bank Stock recognized. Corporation. They traded stock of these two corporations to Mr. BURDICK. Mr. Chairman, the people of the North bank stockholders in the Northwest for control of these west are very much concerned about putting some supervi banks; and while they disposed of their stock for 60 and sion over the Reconstruction Finance Corporation. You 90 cents on the dollar, that stock has been practically will recall that in 1932, when this Corporation was organized worthless for the last 4 years. Being in ·a position to extend to serve the Northwest, there was established a.t Minneapolis, financial relief to the Northwest through their connection Minn., a branch bank of that institution. · with the Reconstruction Finance Corporation, they practi- Mr. Chairman, on March 19, 1935, I gave the whole his cally forced 90 percent of the best banks of the Northwest to . tory of this Government finance set-up in the Northwest in submit to their manipulated control. the following statement: These men gained their position through appointments Mr. BURDICK. Mr. Speaker, the Reconstruction Finance Corpora~ during the Hoover administration, and nearly every one of tion was organized February 2, 1932. Capital stock, $500,000,000 them was a reactionary, hard-boiled, and stand-pat Re paid by the Treasurer of the United States. Limit of indebted ness, $3,750,000,000 plus the following : publican, and it has been a difficult job to dislodge them. A. One hundred and twenty-five million dollars available for Many of them are still in control. stock in Home Owners' Loan Corporation. Are the people of the Northwest willing to let institutions B. Such amounts necessary for: (a) To purchase preferred stock in banks or to make loans on of this character determine the loaning policy of the Gov such stock. ernment? Do you not think we should exercise some con (b) To make loans to Secretary of Agriculture on cotton. trol of these institutions and give and delegate to the Presi- 1937 CONGRESSIONAL RECORD-HOUSE 375 dent the power to determine from the facts when the terms end of Public Act No. 325, of the Seventy-fourth Congress. and rates of loans are just? Under the provisions of this section: It would be a most dangerous thing for this Congress to No loan shall be made by the Corporation under this act where take the position that an appointive board, such as the Re any part of the proceeds of such loan are to be used for purposes construction Finance Corporation, should determine the authorized by section 16 of the act approved June 19, 1934, Public, policy of that Government agency. This Congress can con No. 417, of the Seventy-third Congress. · stitutionally give this Corporation directions and authorize it In other words, the last section put a particular construe.. to carry out the purposes of the act, but to say that this tion on the act. The money could be used to pay the salaries appointive board shall have power 3 months from now or 9 of janitors or for construction, but its use for the payment of months from now to determine absolutely the policy of the teachers' salaries was denied. administration of the act would not only be wrong in prin The purpose of my amendment is to restore the original ciple but it would also, I believe, be unconstitutional. authorization for the R. F. C. to lend money to pay teachers' This Congress does not always sit-it adjourns-and hence salaries. It does this simply by putting in new dates, the it is necessary to have the supervisory power of these cor same way these other powers are extended. I do not think porations always active. This power can be exercised by anyone in this Chamber will want to debate it. The only the executive department of the Government, which, under opposition I have heard is that perhaps it might delay the the Constitution, is charged with the duty of carrying out bill and throw it into conference. The answer to that, how the laws passed by Congress. The President is that Executive ever, is found in the President's inaugui-al address when, officer. Under the Constitution he is responsible for the after speaking of the denial of opportunities for education, · execution of the laws. He is responsible to the people of after having painted that picture, he said: the whole country. He is the people's agent as well as the If I know aught of the spirit and purpose of our Nation, we will agent of Congress, and the only agent authorized by the not listen to comfort, opportunism, and timidity. We will carry on. Constitution to carry out the laws passed by the people. I submit, Mr. Chairman, that I for one am unwilling that In this bill we ·are giving the President the power to this Congress shall go on record as saying, "We will continue examine the facts for us and determine when a condition loans for ·speculating in cotton, we will continue loans to has arisen when the private interests of the country are able reorganize banks, to reorganize insurance companies that and willing to advance credit that shall be just in terms and are on the verge of insolvency, but we will deny aid to the rates. The Reconstruction Finance Corporation, under this school districts of the country." authority given the President, will proceed to loan when the At the proper time I shall offer my amendment without conditions require it and will suspend when private loans debate, and I hope it will be supported. are available under just conditions. It is a power over private Mr. MARTIN of Massachusetts. Mr. Chairman, I offer an . credit that should have long ago been exercised by this amendment which I send to the Clerk's desk . Government. The Clerk read as follows: This act extends the life of the Reconstruction Finance Amendment offered by Mr. MARTIN of ·Massachusetts: On page 2, Corporation until June 30, 1939. The provisions of the act line 19, strike out "Section 9" and all of lines 20, 21, 22, 23, and 24. may or may not be exercised during this period, depending Mr. MARTIN of Massachusetts: Mr. Chairman, the on the ability and willingness of private business to extend amendillent I have offered is very simple and would deny the credit on terms that are just as to time and rates. If private extension at this •time of any powers to the Export and business can perform the service, then it may be free to do Import Bank. I offer this amendment solely upon informa so; if it fails, this Government agency will step in to perform tion which was given to the committee by Mr. Jesse Jones, that service. I do not see how a single Member of Congress who has been proclaimed here today as an expert on Govern can find any possible excuse for not supporting this feature ment matters. of the act. Mr. Jones said all this agency had ever done could be put I am, therefore, in favor of the act and trust that the pro in your vest pocket. He further stated it was not being used tests offered by the disciples of the private banking oligarchy at the present time and he did not know of any use it might of the country will not prevail. be put to in the immediate future. He wanted the continu Mr. Chairman, I ask unanimous consent . to revise and ance so he might have the power if he desired to use it. extend my remarks in the RECORD and to include what I said Mr. Chairman, in the meantime we have three high upon this subject a year ago. salaried officials, a good many clerks, and other help who are The CHAIRMAN. Is there objection to the request of the drawing pay. gentleman from North Dakota? I can see there can be no expectancy of any abolition of There was no objection. commissions and bureaus if this one is continued under the Mr. CASE of South Dakota. Mr. Chairman, I rise in evidence presented. If we are going to have any economies, opposition to the motion. let us begin with an agency Mr. Jones says is not doing Mr. Chairman, I shall not need the 5 minutes allowed me anything. Let us make a start. under the rules, for I only want to read the original section Mr. Chairman, I hope my amendment will be adopted. about loans for school districts and the payment of teachers' Mr. FISH. Will the gentleman yield? salaries in the earlier set-up for the Reconstruction Finance Mr. MARTIN of Massachusetts. I yield to the gentleman Corporation, and to explain how the amendment which I from New York. shall then offer without debate will restore it to life. Mr. FISH. Is it not a fact that the President states the Section 16 of the act, Public, No. 417, that was passed by depression is over and there is no need for these emergency the Seventy-third Congress, provided as follows:· powers? Is it not time we recall these emergency powers, The Reconstruction Finance Corporation is hereby authorized particularly when they are not being used? and empowered to make loans at any time prior to January 31, · Mr. MARTIN of Massachusetts. I find the emergency is 1935, out of the funds of the Corporation upon full and adequate over when you are making a speech, but· when you want leg security, to public school districts or other similar. public school authorities organized pursuant to law, for the purpose of the islation it still exists . . I have noticed that frequently of late. payment of teachers' salaries due prior to June 1, 1934: Provided, Mr. FORD of California. Will the gentleman yield? That the aggregate amount of such loans at any time outstand Mr. MARTIN of Massachusetts. I yield to the gentleman ing shall not exceed $75,000,000. from California. That was the law passed by the Seventy-third Congress. Mr. FORD of California. -Does the gentleman recall that In the Seventy-fourth Congress an act was passed to au Jesse Jones said he was going to use this as a shotgun in the thorize loans up to $10,000,000 to school districts, but that comer? was restricted to construction, operation, and maintenance. Mr. MARTIN of Massachusetts. I do not know anything Maintenance might seem to provide for the payment of about the California-Texas language in this respect. teachers' salaries, but a special section was added at the [Here the gavel fell.] 376 CONGRESSIONAL _RECORD-HOUSE .JANUARY 22 . Mr._ STEAGALL. Mr. Chairman, I rise in OJlPOSition to The CHAIRMAN. The question is on the amendment· the amendment. offered by the gentleman from South Dakota [Mr. CASEJ. Mr. Chairman, the gentleman from Massachusetts has The question was taken; and on a division (demanded quoted Mr. Jones, but he does not properly present Mr. by Mr. CAsE of South Dakota> there were-ayes 39, noes 92. Jones' attitude in reference to this matter. Therefore I So the amendment was rejected. want to call to the attention of the Members of the House The CHAIRMAN. Under the rule, the Committee rises. certain statements made by Mr. Jones in the hearings. Accordingly the Committee rose; and the Speaker having The volume of business conducted by the Export-Import resumed the chair, Mr. CooPER, Chairman of the Committee Bank, as compared to the enormous V'olume of business done of the Whole House on the state of the Union, reported by the Reconstruction Finance Corporation, is trivial; but that the Committee, having had under consideration the Mr. Jones urged the continuance of the Export-Import bill (S. 415) to continue the functions of the Reconstruction Bank and pledged the support of the Reconstruction Finance Finance Corporation, and for other purposes, pursuant to Corporation to the Export-Import Bank as an important House Resolution 79, he reported the same back to the House. part of this machinery to promote recovery to the business The SPEAKER. Under the rule, the previous question is interests of the country. ordered. Mr. FORD of California. Will the gentleman yield? The bill was ordered to be read a third time, and was read Mr. STEAGALL. I yield to the gentleman from Cali· the third time. fornia. Mr. COCHRAN. Mr. Speaker, I offer a motion to re· Mr. FORD of California. Did not Mr. Pearson, president commit. of the bank, . state in your presence this morning that in The SPEAKER. Is the gentleman from Missouri opposed the last 8 months its profits were $399,000? · · to the bill? Mr. STEAGALL. Oh, yes; it has operated at a profit, Mr. COCHRAN. Yes, Mr. Speaker; in its present form. and the business is increasing. I simply wanted to correct The SPEAKER. The Clerk will report the motion to the impression in reference to Mr. Jones. recommit. Mr. SPENCE. Will the gentleman yield? The Clerk read as follows: Mr. STEAGALL. I yield to the gentleman from Ken Mr. CocHRAN moves to recommit the bill to the Committee on Banking and Currency with instructions to that committee to tucky. report the same back forthwith with the following amendment: Mr. SPENCE. Mr. Jones stated in answer to a question by On page 2, line 10, insert the following: the gentleman from Michigan LMr. WoLCOTT]: "SEc. 2. The Reconstruction Finance Corporation Act, as amended, is hereby amended by inserting, after section 5 (e) thereof, the It is a good piece of machinery to have if we ever get to where following new section: . we can move some of our commodities over there. "'SEc. 5 (f). The Reconstruction Finance Corporation is author ized and empowered to make loans to any public or private hos- · Mr. STEAGALL. I thank the gentleman. pital organized under the laws of any State upon the same terms The CHAIRMAN. The question is on the amendment and conditions and subject to the same limitations as are applicable offered by the gentleman from Massachusetts. in the case of loans to financial institutions specified in section 5 of this act, as amended.' " The amendment was rejected. Mr. CRAWFORD. Mr. Chairman, I move to strike out On motion of Mr. STEAGALL, the previous question was the last two words. ordered on the motion to recommit. Mr. Chairman, I offer this pro-forma amendment for the The SPEAKER. The question is on the motion to purpose of asking the chairman of the Banking and Currency recommit. Committee a question. There is some concern among cer The question was taken; and on a division (demanded by tain banks of the country as to the preferred stock held by Mr. CocHRAN) there were-ayes 9, noes 176. the R. F. C. and with reference to what disposition the R. F. C. Mr. COCHRAN. Mr. Speaker, I object to the vote on the will probably make of those stocks. Can the chairman give ground there is not a quorum present. us any information with reference to that matter? I refer The SPEAKER. The Chair will count. [After counting.] to preferred stock held by the R. F. C. in State banks, the Two hundred and forty-one Members present, a quorum. cost of which is being amortized, but which may be disposed So the motion to recommit was rejected. of by the R. F. C. along with the mortgages, bonds, and de The SPEAKER. The question is on the passage of the bentures that are being sold. Is there any information on bill. that subject which the chairman could furnish us? The question was taken, and the bill was passed. Mr. STEAGALL. I think I am justified in assuring the On motion of Mr. STEAGALL, a motion to reconsider the gentleman it is the policy of the R. F. C. now, and it has vote by which the bill was passed was laid on the table. obtained up to the present time, to have those loans worked EXTENSION OF REMARitS out constructively and in cooperation with the banks as far Mr. HANCOCK of North Carolina, Mr. SPENCE, Mr. CONNERY, as possible, with the State banking authorities in the case of State banks, and along with the Federal Deposit Insurance Mr. ENGEL, Mr. MARTIN Of Massachusetts, Mr. DONDERO, Mr. Corporation. I think we are justified in saying the services COCHRAN, Mr. FisH, Mr. CASE of South Dakota, and Mr. WITH of the Corporation in this cqnnection have been of great value ROW asked and were given permission to revise and extend to the country, and we certainly have no reason to believe their remarks in the RECORD. that its policies will not be as wise and as · helpful in the Mr. RANKIN. Mr. Speaker, I ask unanimous consent to future. extend my remarks in the REcoRD and to include a resolution Mr. CRAWFORD. Does the chairman feel there is any adopted by a group of Congressmen this morning on the chance whatsoever of the R. F. C. disposing of these stocks subject of public power. to parties who may attempt to dominate in an adverse man The SPEAKER. Is there objection to the request of the ner the State banks involved? gentleman from Mississippi? Mr. STEAGALL. I think I can assure the gentleman that There was no objection. no such policy is in contemplation. · FOREIGN SERVICE RETIREMENT AND DISABU..ITY SYSTEM (H. DOC. The pro-forma amendment was withdrawn. NO. 135) Mr. CASE of South Dakota. Mr. Chairman, I offer an The SPEAKER laid before the House the following com amendment, which I send to the desk. munication from the President of the United States, which The Clerk read as follows: was read and referred to the Committee on Foreign Affairs Amendment offered by Mr. CAsE of South Dakota: On page 2, and ordered printed: line 24, strike out the period and insert in lieu thereof a semi colon and the following: "section 16 of the act approved June 19, To the Congress of the United States: 1934 (Public, No. 417, 73d Cong.), is hereby amended by striking I transmit herewith a report by the Secretary of State out 'January 31, 1935' and inserting in lieu ther.eof 'June. 30, 1939', by striking out 'June 1, 1934' and inserting in lieu thereof showing all receipts · and· disbursements on account of re· · 'June 30, 1938'.'' funds, allowances, and annuities for the fiscal year ended 1937 CONGRESSIONAL RECORD-HOUSE 377 June 30, 1935, in connection with the Foreign Service retire in the previous Congress, the committee desires to make ment and disability system as required by section 26 (a) of an this hearing as brief as possible. act for the grading and classification of clerks in the Foreign Service of the United States of America, and providing com pensation therefor, approved February 23, 1931. EXECUTIVE COMMUNICATIONS, ETC. FRANKLIN D. ROOSEVELT. Under clause 2 of rule XXIV, executive communications THE WHITE HOUSE, January 22, 1937. were taken from the Speaker's table and referred as follows: 276. A letter from the Secretary of War, transmitting a Mr. SNELL. Mr. Speaker, I ask unanimous consent to dl:aft of a bill to place accountability for disbursement of proceed for 1 minute. public moneys or disposal of public property upon com The SPEAKER. Is there objection? manding officers directing such disbursement or disposal, There was no objection. which the War Department presents for the consideration Mr. SNELL. Mr. Speaker, on yesterday when my friend of the Congress with a view to its enactment into law; to and colleague from New York [Mr. BoYLAN] asked for per the Committee on Expenditures in the Executive Depart mission to extend his remarks in the RECORD and print a ments. speech of George Henry Payne, a member of the Radio Com 277. A letter from the Secretary of War, transmitting a mission, I asked him if it was not a fact that we had a speech letter from the Chief of Engineers, United States Army, a few days ago printed in the RECORD, and he said that was dated January 18, 1937, submitting a report, together with the first time this session. I thought I was right then, but, accompanying papers, on a preliminary examination of of course, I might have been wrong. I find that I was right. channel between Travers Island and Glen Island, N. Y., The gentleman from New York [Mr. MEAD] a .week ago asked authorized by the River and Harbor Act approved August unanimous consent to extend his remarks in the REcoRD by 30, 1935; to the Committee on Rivers and Harbors. printing a speech of Mr. Payne's. 278. A letter from the Secretary of War, transmitting a I simply wanted to show that I was right when I reserved letter from the Chief of Engineers, United States Army, the objection to the request of the gentleman from New dated January 18, 1937, submitting a report, together with York [Mr. BOYLAN]. accompanying papers, on a preliminary examination of s. 415 Wicomico River, Md., from Chaptico Wharf to Budd's Land · Mr. RAYBURN. Mr. Speaker, I ask unanimous consent ing, authorized by the River and Harbor Act approved that the Speaker may be authorized to sign the bill S. 415, August 30, 1935; to the Committee on· Rivers and Harbors. notwithstanding -the House is not in session. 279. A letter from the Secretary of War, transmitting a The SPEAKER. Is there objection to the request of the letter from the Chief of Engineers, United States Army, gentleman from Texas? dated January 18, 1937, submitting a report, together with There was no objection. accompanying papers, on a ·preliminary examination and LEAVE OF ABSENCE survey of Stonington Harbor, Maine, authorized by the River By unanimous consent, leave of absence was granted as and Harbor Act approved August 30, 1935; to the Committee : follows: on Rivers and Harbors. To Mr. RoBERTSON, for today By Mr. SffiOVICH: Joint resolution (H. J. Res. 143) to Also, a bill (H. R. 3525) granting an Increase of p~nsion repeal section 3 of Public Law No. 808, Seventy-fourth Con to Delilah Coffman; to the Committee on Invalid Pensions. gress; to the Committee on Merchant Marine and Fisheries. Also, a bill granting a pension to Josie Lewis
SENATE 333 to Proclaim October 11 of Each Year General Pulaski's by Mr
