SENATE MAY 1 the PRESIDENT Pro Tempore Ap

4266 CON_GRESSIONAL RECORD-SENATE MAY 1 _ The PRESIDENT pro tempore ap . llshment we want to maintain, then au SENATE pointed Mr. BARKLEY and Mr. BREWSTER thorize its maintenance on a voluntary members of the committee on the part of basis." WEDNESDAY, MAY 1, 1946 Mr. Goss proposes three changes: the Senate. "1. A rate of pa.y which would permit an ..'ECUTIVE PAPERS Mr. Goss makes three proposals for the The Government ceiling under OPA regu A letter from the Archivist of the United maintenance of our armed forces on a lations at $1.4.J and $1.50 per bushel deprived States, transmitting, pursuant to law, a list voluntary basis. I believe his remarks the farmer of receiving a just price for his of papers and documents on the files of sev merit our consideration. commodity and, under the bonus provisions eral departments and agencies cif the Gov There being no objection, the state which they are offering, in my opinion, ap- ernment which are not needed in the con - pears that tpis is a black-market proposi duct of business and have no permanent ment was received and ordered to be tion, since they are offering the 30-cent value or historical interest, and requesting printed in the RECORD, as follows: bonus and the ceiling still remains at $1.50 action looking to their disposition (with ac "What is needed," says Albert S. Goss, per bushel. Certainly, there can be no jus companying papers); to a Joint Select Com · master of the National Grange, in a state tice in the program as proposed unless they m ittee on the Disposition of Papers in the ment to Farm Journal, "is for Congress to are willing to adjust it and pay the same Executive D~p artments. determine the size of the Military Estab- price for all the wheat produced by the 1946 CONGRESSIONAL' RECORD-SENATE· 4267 farmer and marketed for the season of 1945, 3,583, Treasury Department with 2,326, ruary. Excluding a decrease of 25,105 in the as well as what is being marketed now. Interior Department with 1,412, and War Department civtlian personnel overseas, I trust that you will do everything in your Commerce Department with 1,034. of which 24,976 were industrial workers, there power to see that this bill will be passed by would be an increase of 1,047 employees from Congress, to the end that the wheat farmer The War and Navy Departments ef the February figure of 122,314 to the March of this Nation, in this particular case, will fected a reduction of 57,161 within the :figure of 123,361. (See table II.) receive justice from the hands of the Gov continental United States and a net re Inside and outside United States there has ernment, and I assure you that anything duction of 23,786 outside the continental been a total decrease of 48,164 employees in that this department can do in order to help United States. Included in this reduc the executive branch of the Federal Govern we will be more than glad to do. tion are 58,469 industrial employees for ment during the month of March, over-all Again let me, on behalf of the farmers of merly engaged in direct war production. totals decreasing from the February total of North Dakota, compliment you on your stand 2,921,673 to the March total of 2,873,509. in this matter. The remaining war agencies released Excluding the War and Navy Departments, Very sincerely yours, 1,295 employees. · there was an increase of 32,783. (See '!;able MATH DAHL, Yesterday I submitted to the Congress III.) Com.missioner. a postwar Federal personnel report, cov Industrial employment during the month ering the 5-month period following VJ of March decreased 58,920 from the February I might say, Mr. President, that the bill total of 1,175,084 to the March total of 1,116,- which I introduced is somewhat similar day. At that time I pointed out that since VJ-day, exclusive of War and Navy 164. Largest decreases were in the War De to a bill which was introduced by the partment, with a reduction of 35,350, of which Senator from Nebraska [Mr. BuTLER], Departments, the old-line establishments 24,976 were inside the United States, and the which, I believe, also to be an important had increased 86,822. I now wish to call Navy Department, with a reduction of 23,119. measure. your ·attention to the fact that during The term "industrial employees," as used by February these agencies had an increase the committee, refers to unskilled, semi REPORTS OF COMMITTEES of 32,059 and during March 34,078, mak skilled, and supervisory employees paid by The following reports of committees ing a total increase of 152,959. This in the Federal Government who are working on were submitted: crease in personnel substantiates my construction projects, such as airfields and past belief that the trend of offsetting roads, and in munition plants, shipyards, and By Mr. McCARRAN, from the Committee arsenals. It does not include regular main on· the Judiciary: reductions in the war agencies with in tenance and custodial employees. (See 1893. A bill to amend the act entitled s. creases in the old-line establishments table IV.) "An act to incorporate the American Legion," cannot be lightly dismissed. . Public approved September 16, 1919, as amended statements by authorized officials as to TABLE I.-Federal personnel inside continen October 29, 1942, so as to extend membership planned reductions in Federal employ tal United States employed by executive eligibility therein to certain persons; with ment further substantiate the fact that agencies during March 1946, and compm·i amendments (Rept. No. 1268). son with February By Mr. GREEN, from the Committee on the old-line agencies, most of which Privileges and Elections: were geared to the war effort, instead H. R. 1118. A bill to amend the Hatch Act; of releasing such employees, are con 1946 Increase without amendment (Rept. No. 1269); and st.antly increasing their personnel. · H. R. 1497. A bill to amend subsection 9 (a) Though the Federal pay roll may be but Departments or agencies Febru· -- d~-:Je ~~e of the act entitled "An 'act to prevent per a small portion of our annual expendi ary March (-) nicious politica~ activities," approved August ------1------2, 1939, as amended; without amendment tures, its reduction would be an indica tion that a balanced budget is planned EXECUTIVE OFFICE OF THE (Rept. No. 1270). PRESIDENT By Mr. THOMAS of Oklahoma, from the by the President and Congress. Committee on Indian Affairs: Mr. President, I ask unanimous con Bureau of the Budget______757 775 +18 S. 437. A bill for the relief of W. S. Burle sent to have printed in the body of the EXECUTIVE DEPARTMENTS son; without amendment (Rept. No. 1271). RECORD a report on civilian employment Agriculture Department. .. 86,000 84,584 -1,416 CIVILIAN EMPLOYMENT OF EXECUTIVE of the ·executive branch of the Federal Commerce Department._. 31,955 32,989 +1, 034 BRANCH-RE'PORT OF JOINT COMMIT Government by department and agency Interior Department. .•• __ 40,456 41,868 +1,412 Justice Departent.. ------ 25,015 24,694 -321 TEE ON REDUCTION OF NONESSENTIAL for the months of February and March Labor Department ..•...•• 34,081 34,336 +255 FEDERAL EXPENDITURES 1946, showing increases and decreases Post Office Department .•• 462, 150 469,621 +7.471 in number of paid employees. The re State Department ______8,136 8,147 +11 Mr. BYRD. Mr. President, according port was prepared by the Joint Commit Treasury Department ..... 104,885 107. 211 +2. 326 to Federal personnel reports submitted tee on Reduction of Nonessential Federal NATIONAL WAR AGENCIES to the Joint Committee on Reduction of Expenditures. Civi_li!!-n P~oduction Ad- Nonessential Federal Expenditures dur There being no objection, the report mirustratwn ______2, 443 2, 516 +73 ing the month of March, the trend con was ordered to be printed in the RECORD, Committee on Fair Em tinued in which reductions in the war ployment Practices .. --- 35 33 -2 as follows: National Wage Stabiliza agencies were offset by increases in the tion Board. __------ 861 821 -40 FEDERAL PERSONNEL IN THE EXECUTIVE BRANCH, Office of Alien Property old-line establishments. Thus, although Custodian ______total employment, both continental and MARCH 1'946, AND A COMPARISON WITH FEB 598 631 +33 RUARY 1946 Office of Defense Trans- abroad, decreased 48,164 from the Feb portation. ______. 145 131 -14 (AU figures compiled from reports signed by Office of Economic Stabili 'ruary total of 2,921,673 to the March the heads of Federal establishments or their zation_. __ ------ 25 +25 total of 2,873,509, actually if the War and authorized representatives) Office of Inter-American Affairs_ . ____ .. _.. _._.---- 395 396 +I Navy Departments and the national war According to 'monthly personnel reports Office of Price Adminil'tra- agencies were excluded from the total, submitted to the Joint Committee on Reduc tion . .. _. ------31, 911 31, 969 +58 personnel increased 34,078 during the Office of Scientific Re tion of Nonessential Federal Expenditures, search and Development. 791 749 -42 months. Federal personnel within the continental Office of War Mobilization Within the United States this trend United States during March decreased 24,106 and R~conversion ______649 1 6i0 +21 from a total of 2,406,227 in February 1946 to Petroleum Administration is most apparent. Total personnel in for War ______84 66 -18 side the United States decreased 24,106 2,382,121 in March. Excluding the War and Selective Service System .. 15, 739 15, 328 -411 Navy Departments, personnel increased 33,055 War Shipping Administra- from the February figure of 2,406,227 to from the February total of 1,135,674 to the tion ______--.-----.------4, 231 3, 305 -926 the March figure of 2,382,121, but ex March total of 1,168,729. The War Depart clusive of War and Navy Departments ment inside the United States decreased INDEPENDENT AGENCIES and the national war agencies, the re 24,487 from the February figure of 746,184 to American Battle Monu- maining 41 agencies had a net increase the March figure of 721,697. The Navy De ments Commission ______1 1 ------Civil Aeronautics Board __ _ 407 401 -6 of 34,297 during the m{)nth. Within this partment within the United States decreased 4, 330 -246 32,674 from the February figure of 524,369 to Civil Service Commission. 4, 576 group, 24 agencies increased their per Employe~s'. Compensation sonnel during the month and 14 effected the March figure of 491,695. (See table I.) CommiSSIOn·______522 525 +3 Outside the continental United States Fed Export-Import Bank of reductions. Three show no change. Washington.------ 93 !l6 +3 eral personnel decreased 24,058 from the Feb Federal Communications The agencies which had the largest in ruary 1946 total of 515,446 to the March total Commission ______1,199 1, 264 +65 creases were Veterans' Administration of 491,388. Nearly all of these are industrial 1 Includes 481 employees of Surplus Pro l?e ~ty ~d with 18,224, Post Office with 7,471, Re employees. War Department figures are re ministration transferred to War Assets Adru1mstratwn consl.ruction Finance Corporation with ported for the months of January and Feb- as of Mar. 26, 1946. 4268 CONGRESSIONAL RECORD~SENATE MAY 1

TABLE I.-Federal personnel inside contjnen TABLE !I-.-Federal personnel outside conti 'fABLE III.-Consolidated·table of Fed(}raL per tal United States employed by executive nental United States employed by execu sonnel inside and outside continental agencies during March 1946, and compari tive agencies during March 1946, and com United States employed by executive agen son with February-Continued parison with February-Continued cies during March 1946, and comparison with February-Continued

I 1946 1946 Increase Increase 1946 1----,,-----1 ( Increase Departments or agencies ----,..----1 (+)or Departments or agencies +) or decrease decrease <+>or Fobru· Febru- March Departments of agencies ary March (-) ary (-) Febru· decrease ary March (-) ------1 ------INDEPENDF.NT AGEKCJES NATIONAL WAR AGENCIES------1------COntinued continued NATIONAL WAR AGENCIES Feder.al Deposit Insurance Office of Alien Property Civilian Production Ad· Corporation ___ ------___ _ .. ~17 1, 208 - 9 · Custodian·------~----- 39 40 ministration. ______2,447 2, 521 +74 Office of Inter-American +1 Committee on Fair Em- Federal Power Comrr:is- Affairs ______sion ___ ------720 727 +7 224 227 +3 ployment Practices ______35 33 -2 Federal Security Agency __ 30, 947 31, 320 +373 Office of Price Admin is- National Wage Stabiliza- Federal Trade Commis- tration. ------____ 424 408 -16 tion Board ______863 822 -41 sion ______------492 492 ------9ffice of Scientific Re- Office of Alien Property Federal Works Agency ___ _ 21, !?02 22,205 +303 search and Develop- Cuo1todian. ______------637 671 +34 General Accounting Office_ 14,641 14,674 +33 ment ______3 0 -3 Office of Defense Trans- Government Printing Of- Selective Service System._ 328 322 -6 145 131 -14 fice ______. ______·______War Shipping Adminis- olfi~~t~t/o:J? ciiil"Oiiiic- st:iiili:- 7, 322 7, 307 .-I5 lization ______Interstate Commerce Com- tration. ______754 722 -32 0 25 +25 mission ______·_------___ _ Office of Inter-American 2, I67 2, ISS +21 A train;______Maritime Commission ___ _ 7, 762 8,597 +835 INDEPENDENT AGENCIE[ 619 623 +4 National Advisory Com Office of Price Administra- mittee for Aeronautics. __ li, 476 5, 383 -93 American Battle Monu· tion ___ ------32,335 32,377 +42 National Archives ______35R 353 -5 ments Commission .. --~- 37 37 ------Office of Scientific Re· National Capital Housing Civil Aeronautics Board __ 10 9 -1 mentsearch ______and Develop-___ _ Authority------ 267 265 -2 Civil Service Commission. 5 5 ------7!?4 749 -45 National Capital Park and Employees Compensation Office of W.ar Mobiliza-. Planning Comm is;; ion __ _ I6 I5 -1 Commission ______39 41 +2 tion and Reconversion __ _ 649 1670 +21 Natjonal Gallery of Art_ __ _ Export-Import Bank Petroleum Administration 280 279 -1 of for War______National Housing Agency_ I4, 678 I4, 1129 +251 :Washington ______2 -2 84 66 -18 National J,abor Relations Federal Communications Selective Service System ___ 16,067 I5, 650 .-417 · Board ______893 910 +17 Commission ______E3 lA +I War Shipping Adminis- National Mediation Board_ 99 I05 +6 Federal Deposit Insurance tration. ___ ------4, 985 · 4,027 -958 Panama CanaL ______280 258 -22 Corporation ______2 2 ------Railroad Retirement Federal Security Agency __ 461 486 +25 INDEPENDENT AGENCIES Board ______. ______1, 9I4 I, 964 +so Federal Worjrs Agency ____ 282 291 +9 Reconstruction Finance Maritime Commission __ .__ _ 18 18, ______American Battle ·Monu· Corporation ___ ·------35,298 2 38,881 +3,583 National Housing Agency_ 32 31 . -1 ments Commission: ____ _ 38 Civil Aeronautics Board __ _ 38 ------Seouritie~ ~nd Excb11nge NationalBoard ____ Labor______Relations______417 410 -7 Commu;sJOn ______I, 216 1, 209 -7 3 4 +1 Civil Service Commission_ 4, 581 4,335 -246 Smithsonian Institution. __ 416 - 423 +7 Panama CanaL ______28,596 ::8,399 -197 Employees' Compen- Tariff Commission ______256 248 -8 Reconstruction Finance sation Commission______561 566 +5 Tax Court of tbe United Corporation ______235 1 2-35 Export-Import Ban'k of ------Washington ______States. __ ------ 121 121 ------Smithsonian Institution ___ 8 7 -1 95 S6 +I Tennessee Valley Author- Veterans' Administration_ 372 499 +127 Federal Communications Commission ______ity------· 11,529 11,670 +141 I. 252 1,318 +66 Veterans' Administration__ 117,292 135,516 +1~, 224 Total, excluding Federal Deposi ~ Insurance Corporation ______1, 219 1, 210 -9 War and Navy { -484 Federal Power Commis- Total, excluding Departments______53,827 53,555 + sion ______212 720 727 +7 War and Navy {+36 660 Departments ______1, 135,674 1, 168,729 _ ; ---r------Federal Security Agency __ 31,408 31,806 +398 3 605 Net decrease, ex Federal 'l'rade Commis- cluding War and sion. ____ ·------492 492 ------Net increase, exclud Navy Depart· Federal Works Agency ___ _ :<.2, 184 22, 496 +312 ing War and Navy ments. ------·----- ··------272 Generafice ______l Accounting Of· _ Departments ______------+33,055 Navy Department______68,487 69,806 +1,319 14, 641 14, 674 +33 Navy Department. ______524,369 491,695 -32,674 War Department______2 393, 132 • 368,027 -25, 105 Government Printing Of- War Department______746,184 721,697 -24,487 fice. ____ • _____ ------7, 322 7, 307 -15 Total, including ------ Interstate Commerce Commission ______Total, including War and Navy {-25 589 2,167 2,188 +21 Departments ~-- -- - 5I5, 446 491,388 +I; Maritime Commission ____ _ 7, 780 8, 615 +835 War and Navy {-60 766 531 Departments ______2,406, 227 2, 382, 121 + ; National Advisory Com 36 660 mittee for Aeronautics __ _ 5, 476 5, 383 -93 Net decrease, in National Archives ______358 353 -5 Net decrease, includ cluding War and National Capital Housing ing War and Navy Navy Depart· Authority ______: ______267 265 -2 Departments ______------~24, 106 ments ______------24,058 National Capita£ Park and Planning Commission__ _ 16 15 -1 National Gallery of Art.. .• 280 279 -1 14,710 14,960 2 Estimated. Includes 27,426 Reconstruction Finance 1 Estimated. +250 Corporation employees transferred to War Assets ~:~ig~:J i:~~~nfi~!i~~- 2 Figures as of Jan. 31, 1946. Board ______-·------896 914 AdminL~tration as of Mar. 26, I946. a Figures as of Feb. 28. . 1946. +18 National Mediation Board 99 105 +6 Panama CanaL ______TABLE !I.-Federal personnel outside conti 28,876 28,657 -219 TABLE III.-Consolidated table of Federal per Railroad Retirement . nental United States employed by executive sonnel inside and outside continental Board------·- 1, 914 1, 964 +50 agencies during March 1946, and -compari Reconstruction Finance United States employed by executive agen Corporation ______son with February. 35,533 2 39,116 +3, 583 cies during March 1946,· and comparison Securities and Exchange with Feb1·uary Commission ______1, 216 I, 209 -7 Smithsonian Institution __ _ 424 430 +6 Tariff Commission ______1946 Increase 256 248 -8 1---..,:----1 (+) or Tax Court of the United Departments or agencies 1946 Increase States.------__ 121 121 ------Febru decrease Tennessee VaHey Author- March (-) Departments or agencies 1----;-----1 (+)or ary decrease ity------11,529 11,670 +141 Febru Veterans' Administration_ 117,664 136,015 +18, 351 ------1------ary March (-) EXECUTIVE DEPARTMENTS ------Total, excluding War and Navy {+36 804 Agriculture Department. __ 1,323 I,281 -42 EXECUTIVE OFFICE OF Departments ______1, 189, 501 1, 222, 284- _ ; Commerce Department_ __ I, 913 1, 937 +24 THE PRESIDENT 4 021 Interior Department_----- 4, 301 4, 301 ---·----- Justice Department._----- 307 305 -2 · Bureau of the Budget_ __ .- 757 775 +18 Net increase, excl ud~ Labor Department ______147 150 +3 ing War and Navy Post Office Department_ __ I, 478 1,441 -37 EXECUTIVE DEPARTMENTS Departments ______------+32, 783 State Department______11,797 11,654 N!~a D~~~r~entli~~~~ Treasury Department _____ 628 643 ..,--ttl Agriculture Department ___ 87,323 85,865 -1,458 Commerce Department. __ 33,868 34,926 +1,058 States ___ ----·-----··---- 592,856 561,501 -3I, 355 NATIONAL WAR AGENCIES Interior Department. _____ 44,757 46,169 +1,412 1 Includes 481 employees of Surplus Property Adminis Justice Department______. 25,322 24,999 -323 tration transferred to War Assets Administration as of Civilian Production Ad· Labor Department. ______34,228 34,486 +258 Mar. 26, 1946. ministration ______4 li +I Post Office Department_ __ 463,628 4'i'l;062 +7,434 2 Estimated. Includes 27,426 Reconstruction Finance ·National Wage Stabiliza· State Department ______19,933 19,801 -132 Corporation employees transferred to War Assets Ad· tion_. ------2 -1 Treasury Department. •••• 105,513 107,854 +2,341 ministration as of Mar. 26, 1946. 1946 CONGRESSIONAL RECQRD-SEN4 TE 4269

'rABLE !H.-Consolidated table of Federal per 1 UNIFICATION OF ARMED FORCEs Hart McMahon Saltonstall sonnel inside and outside continental ADDRESS BY SENATOR IDLL Hatch Magnuson Shipstead United States employf!d by executive agen Hawkes . M.aybank Smith [Mr. HILL asked and obtained leave to Hayden · Mead cies (Juring March 1946, and comparison Stanfill have printed in the RECORD a radio address Hickenlooper Millikin Stewart with ~ebruary-Continued . entitled "Unification of Our Armed Forces,'' Hill Mitchell Taft delivered by him on April 26, 1946, which ap Hoey Moore Taylor 1946 Johnson, Colo. Murdock Thomas, Ok:a. Increase pears in the Appendix.] Johnston, S. C. Murray Tunnell Departments or agencies l----:-----l d~"t~e~e DEFINITION OF A LIBERAL BY SENATOR Kilgore Myers Tydings Febru- March (-) BALL Knowland O'Daniel Wagner ary . La Follette O'Mahoney Walsh ------·1------[Mr. WILEY asked and obtained leave to Langer Pepper Wheeler have •printed in the RECORD an article by Lucas Radcliffe Wherry INDEPENDENT AGENCIES Gould Lincoln, from the Evening Star of McCarran Reed weey continued McClellan Revercomb Willis April 30, 1946, referring to the . ~ddress McFarland Robertson Wilson War Department, inside delivered by Senator BALL at the Syracuse continental United McKel!ar Russell Young StateR. ______-- ·· ------746, 184 721, 697 -24,487 University on the occasion of the degree of War Department, out- doctor of laws being conferred on him, which Mr. HILL. I announce that the Sena sidf' continental United appears in the Appendix.] tor from North Carolina [Mr. BAILEY] Statf'S .. ------393,132 368, O'Zl -25,105 SHORTAGE 0~: OFFICE SPACE IN CALI and the Senator from Virginia [Mr. Total, inc) uding FORNIA FOR RETURNING VETERANS GLASs] are absent because of illness. War and Navy · {-84 968 The Senator from Mississippi [Mr. Departments. __ ___ 2, 921,673 2, 873,509 + 36; 8~ [Mr. KNOWLAND asked and obtained leave to have printed in the RECORD a letter written BILBO], the Senator from Georgia [Mr. Net decrease, mclud- by him to Mr. Harold D. Smith, Director, Bu GE.ORGEJ, the Senator from Idaho [Mr. ingWarandNavy . reau of the Budget, and a reply thereto from GossETT], the Senator from Louisiana Departments ______------48, 164 Mr. W. E. Reynolds, Commissioner of Public [Mr. OVERTON], and the Senator from Buildings, on the subject of the shortage of Utah [Mr. THOMAS] are absent by leave TABLE IV.-Industrial employees 1 of Federal office space for returning servicemen, which of the Senate. Government, inside and outside the conti appear· in the Appendix.] The Senator from Florida [Mr. AN nent.al United States, employed by execu T:AXING FARMER COOPERATIVES DREWS] is necessarily absent. . tive agencies during March 1946, and com [Mr. SHIPSTEAD asked and obtained leave The Senator from New Mexico [Mr. parison with February to have printed in the RECORD an editorial CHAVEz] is detained on public business. IThese employees are included in above tables) from the Fairmont (Minn.) Daily Sentinel, The Senator from Ohio [Mr. HUFF headed "This Will Make Someone Mad," and MAN] is absent because of n. death in his 1946 Increase a letter addressed to him by the Minnesota family. (+)or Small Business and Employees' Committee, Departments o~ agencies The Senator from Texas [Mr. CoN Febru- decrease relating to the taxing of farmer cooperatives, ary March (-) which appear in the Appendix.] NALLY] is absent on official business, at tending the Paris meeting of the Council ------PRESERVATION OF BIRTHPLACE OF of Foreign Ministers as an adviser to the EXECUTIVE DEPARTMENTS PRESIDENT ANDREW JOHNSON AT Secretary of State. Commerce Department ___ 887 0 940 +53 RALEIGH, N. C. Mr. WHERRY. The Senator from Interior Department ______4,182 4,405 +223 State Department______193 218 +2-'i [Mr. HOEY asked and obtained leave to Michigan [Mr. VANDENBERG] is absent on Treasury Department_ ____ 7,178 6,421 -757 have printed in the RECORD Senate Joint official business attending the Paris Resolution 154, introduced by him on April meeting of the Council of Foreign Min INDEPENDENT AGENCIES 18, 1946, to establish the Andrew Johnson. isters as an adviser to the Secretary of National Housing Agency_ 756 752 -4 Memorial Commission to formulate plans for State. · Panama CanaL_------2,969 2, 929 -40 the preservation of President Johnson's T~nn~ssee Valley Author- birthplace at Raleigh, N. C., and an editorial The Senator from New Hampshire 5,073 5,122 +49 [Mr. ToBEY] is absent on official business. 1ty.-. ------from the Raleigh News and Observer en Total, excluding War titled "Belated Recognition," which appear The Senator from Oregon [Mr. MoRsE] and Navy Depart- in the Appendix.] is necessarily absent. 21,238 20,787 { -801 ments. ------+350 PROPOSED LOAN TO GREAT BRITAIN The PRESIDENT pro tempore. ------Eighty-one Senators have answered to Netdecrease,exclud- The Senate resumed consideration of ing War and Navy their names. A quorum i~ present. Departments ______...... -451 the joint resolution (S. J. Res. 138) to · . Mr. BROOKS. Mr. President, I in Navy Department, inside ------implement further the purposes of the and outside United tend to state my position with respect to States._------425,682 402,563 -23,119 Bretton Woods Agreements Act by au the proposed loan to Great Britain, and War Department, inside thorizing the Secretary of the Treasury continental United States 346,642 336,268 -10,374 for the sake of continuity I ask that I War Department, outside to carry out an agreement with the not be interrupted until I shall have con continental United States 2 381,522 3 356,546 -24,976 United Kingdom, and for other purposes. cluded, and then I shall be delighted to --- The PRESIDENT pro tempore. The answer any questions which may be Total, including War question is on agreeing to the amend and Navy Depart- {-59, 'Z"/0 asked. ments. ------1,175, 084 1,116,164 +350 ment offered by the Senator from Ari I am opposed to the loan of $3,750,------zona [Mr. McFARLAND]. Net decrease, includ- 000,000 to _Great Britain for many ingWarandNavy Mr. BROOKS obtained the :floor. reasons. Departments ______------·------58,920 Mr. BUSHFIELD. Mr. President, will It was not ptesented to the British the Senator from Illinois yield? Parliament on its own merits, and it is 1 Industrial employees include unskilled, semiskilled, The PRESIDENT pro tempore. Does skilled and supervisory employees on construction not so presented to the American Con project's. Maintenance and custodial workers are not the Senator from Illinois yield to the gress. inclurled. Senator from South Dakota? . It was presented there and is presented 2 Figures as of Jan. 31, 1946. s Figures as or Feb. 28, 1946. Mr. BROOKS. I yield. now in conjunction wah the agreement Mr. BUSHFIELD. I suggest the ab finally settling all lease-lend accounts BILLS INTRODUCED sence iJf a quorum. between the United States and Great Bills were introduced, read the first The PRESIDENT pro tempore. The Britain whereby we forgive approxi time, and, by unanimous consent, the clerk will call the roll. mately $25,000,000,000 of lease-lend for second time, and referred as follows: The Chief Clerk called the roll, and the practically nothing, and By Mr. MAGNUSON: following Senators answered to their It is presented in conjunction with a S. 2136. A bill for the relief of Charles names: proposed future program of co:rpmercial Drake; to the Committee on Claims. Aiken Buck Downey policy declaration which is full of eva By Mr. BUTLER: Austin Bushfield Eastland sive promises. s. 2137. A bill to amend title II of the Ball Butler Ellender Social Security Act, as amended, to give Bankhead Byrd · Ferguson In short, we forgive approximately credits under the Federal old-age and sur Barkley Capehart Fulbright $25,000,000,000 lend-lease debt and give Brewster Capper Gerry up $3,750,000,000 fresh American dollars vivors insurance provisions of that act for Bridges Carville Green military service, and for other purposes; to Briggs Cordon Outley and get future promises full of escape the Committee on Finance. Brooks Donnell Gurney clauses and loopholes. XCII--270 4270 CONGRESSIONAL RECORD-SENATE MAY 1 When the discussion about this loan protection and the peace of the world in our market and continue these drastic originated last summer, the British the future-because we give all surplus wartime controls at home and to support press and the British negotiators frankly property and all construction and in socialistic systems abroad. and honestly stated they did not want stallations located in the United King I am opposed to any series of world a loan-they could not pay back · a dom, without acquiring any permanent wide gifts or loans that play a part of loan-they wanted a grant-in-aid or rights in air ports built by American the Lord Keynes and the American New another gift or at least an interest-free blood and money throughout the British Deal plan for a world-wide WPA proj loan over a long period of time. Empire to aid our future civilian com ect that will lower our American stand The late Lord Keynes, principal Brit merce as we struggle to pay· the debt ards of living at a time when we are ish negotiator, frankly expressed their caused by our enormous contribution to beset with strikes in which Americans position. He arrived here in September the winning of the war throughout the are demanding an even higher standard 1945, and he said he was here to make world. of living. some kind of an arrangement to settle I am opposed to any loan to any for This gift-loan scheme is an outgrowth lend-lease and find some way to help eign government of billions of dollars at of the spend-and-tax program which England struggle out of her economic 1.62 percent interest as long as we charge Lord Keynes sold to the United States difficulties. But there was one thing he all veterans of our own country, includ back in the middle thirties. wanted to make plain to us. That was ing our badly wounded men, 4 percent on The late Lord Keynes was simply Mr. that Britain could not afford to make a the money we loan them to establish Keynes when he came to this country in commercial loan in· this country. He their homes when they return and give the middle thirties and introduced to our said: them no waiver of interest and no con administration the scientific theory of No doubt an easy course would be for you sultation clauses to adjust the payment mass spending and deficit financing by t o offer, and for us to put our name to a of the principal. the Government. Up to that time, our substantial loan on more or less commercial · I am opposed to it because we are loan Government had been spending money in · t erms, without either party to the transac ing it to the Government of Great Brit a desperate effort to stem the depression t ion troubling to pay too much attention to ain which presently is a Socialistic ex and on the theory that they were "prim t he question of the likelihood of our being able to fulfill the obligations which we were periment in the hands of a party headed ing the pump." It was not, of course, undertaking. However, this may be, we by Harold Laski who blithely denounces working, and in 1937, when President shall not lend ourselves to any such soft our form of government and economy at Roosevelt began to talk about once again and deceptive expedient. We are not in the the very time when we are struggling to balancing the Budget and actually at mood, and we believe and hope that you are sustain our system of private enterprise tempted it, we were treated to what was not in the mood, to repeat the experiences under a truly republican representative called a recession. We had seven or of last time's war debt. We would far rather form of government. eight million people out of work then; do what we can to get on as best we can I am opposed to this gift of $3,750,- the spending was not a success; none of on any other lines which are open to us. 000,000 of the American people's money the fundamental defects in our economic Nevertheless, our negotiators insisted under the guise of a loan that has no system had been corrected; nothing was that England accept a loan of $3,750, collateral, knowing full well that it is keeping the administration a:fioat but the .000,000 at 1.62 percent interest over a only the forerunner of additional huge indiscriminate spending of public money 55-year period, even though·we will have loans to Russia, China, France, the borrowed from the banks; and the Presi to borrow this money from the Ameri Netherlands, and other nations. dent decided that.he had better taper off can people through the sale of additional We have already made a loan to Great the spending, stop 'the borrowing, and bonds. or use money that we have al Britain through the Reconstruction balance the Budget-and down went the ready borrowed from the American peo Finance Corporation. New Deal into its recession. ple, paying at least 2% percent interest. We have committed ourselves to the I am sure that at that moment there The agreement provides that the inter extent of $2,700,000,000 for UNRRA. must have been some troubled hearts est from Britain does not start for 5 We have extended the credit capacity among the statesmen in this Chamber years, and then any time the United of the Export-Import Bank to $3,500,- and at the other end of Pennsylvania Kingdom decides that the exchange con 000,000. Avenue. Just about that time John ditions are not favorable they can re We have committed our country to Maynard Keynes came here and assured quest a waiver and the United States contribute $5,925,000,000 to the Bretton our leading statesmen that the spending must grant it. There is no provision, Woods Fund and Bank. they had been doing was all right, that it however, that the American people will We have autJ:~orized vast changes in was not just a "hit and miss" strategy of not have to pay the 2% percent interest our Export-Import status through the bewUdered politicians, but was actually every year and the principal, too, in the reciprocal trade agreements. a profoundly scientific procedure, and event of a British default. I am opposed to any vast loans or gifts that the only trouble with it was that The British could not pay a $4,000,- to any foreign countries until the admin they were not spending and borrowing 000,000 debt after the last war. They istration tells the people honestly and enough. themselves tell us they cannot pay it exactly how many demands or requests And so was born the new theory of the now. And still our negotiators insisted it has received up to date and presents New Deal which appeared among us in on calling it a loan and demanded that a balance sheet to show the American 1938 of the permanent deficit-the end the British accept it as such. people just what our foreign commit less borrowing upon the theory that a I am opposed to this loan because I ments really are and what additional government debt is not like a private am confident that it will prove to be a burden each gift or so-called loan will debt, that we owe it to ourselves, that we gift, and the ianguage and form of the place on our already heavily strained need never pay it, and that the interest. agreement is subterfuge to deceive the economy. on it is not a burden because we merely American people and to make it easier I am ·opposed to lending billions of take it ·out of the right-hand pocket of for those whose interests are largely con dollars of American citizens' money to the people in the form of taxes and put cerned with foreign trade to secure its the nations of the wo:ld to invite them it back into their left-hand pocket in approval by the American Congress. to come into our already crowded mar the form of interest. The British believe that the $4,000,- ket to compete with our own peo:Ole for When Lord Keynes had negotiated this 000,000 they spent for munitions of war scarce goods at this time. Even our re present fantastic grab, he went home to before we established lend-lease should turned war veterans cannot find shirts, explain his triumph to the House of be paid back to them now in the form of clothes, or homes. Our reconversion Lords. He told them he regretted that a gift. They frankly stated so and asked program is blocked by the bungling .he could not get the entire amount as an for this amount as a gift or a "grant practices of OPA and other Government acknowledged gift. He said: in-aid." bodies clinging with a death grip onto Since our transitory financial dimculties I am opposed to it because it is a part their wartime controls and restrictions. are largely due to the role we played in the of several agreements, one of which Black markets are already :flourishing war and to the costs we incurred before the wipes out our contribution of more than throughout the country, and now the ad United States entered the war, we here in 25,000,000,000 American dollars without ministration seeks to put billions of dol London feel-it is a feeling which I shared securing a single additional island base lars of American money in the hands of and still share to the full-that it might not for our Navy or Air Corps for our own foreign governments to further crowd be asking too much of our American friends 1946 CONGRESSIONAL RECORD-SENATE 4271 that they should agree to see us through the about not paying even the principal. He Do we need more to explain to us that transition by financial aid which approxi told the House of Commons: now they have laid .the ground work for mated to a grant. There is no waiver of the principal. But the day when they will say to us, ''It is But he said: 1f we .feel that any part of the agreement your fault, and you can keep on loaning The American Congress and the American needs hereafter to be modified in the light us and loaning us and loaning us, be people have never accepted any literal prin of events, it is recognized in the text that cause that is the philosophy of your State ciple of equal sacrifice, financial or other the United States Government and His Maj Department and your Treasury, from wise, between all the Allied participants. esty's Government shall consult together. now on." He would have a hard job selling to I add this: "Consult" to them means Finally, he explains what will happen the boys who stormed the Normandy failure to pay the principal. to our standard of living if the Congress beach and raced behind Patton clear Lord Keynes, in urging the House of approves this loan and the principle of across France and into Germany the idea Lords to accept this so-called loan, said: abolishing tariffs and protection of our that America had never accepted the Has any country ever treated another wages and prices, upon which our stand theory of equal sacrifice. country like this, in time of peace, for the ard of living depends. He said: Concerning the matter of paying in purpose of rebuilding the other's strength Fifthly-and perhaps this is the considera and restoring its competitive position? If tion which is least prominent in people's terest, he said: the Americans have tried to meet criticism minds-the United States is rapidly becom On the matter of interest, I shall never so at home by making the terms look a little ing a high-living and a high-cost country. l .:mg as I live cease to regret that this is not less liberal than they really are, so as to pre Their wages are two and a half times ours. an interest-free loan. The charging of in serve .the principle of interest, is it necessary These are the historic, classical methods by terest is out of tune with the underlying for us to be mistaken? The balm and sweet which, in the long run, international equi realit ies. simplicity of no percent is not admitted, librium will be restored. but we are not asked to pay interest except He explained that they had to include in conditions where we can reasonably well In other words, the equilibrium will at least a pretense of paying interest to afford to do so, and the capital installments bring us down, because we are a high appease the Congress. Listen to his are so spread that our minimum obligation cost and high-living and high-standard words on that subject: in the early years is actual,Iy less than it country, and our workmen all over this During the whole time that I was in Wash would be with a loan free of interest repay Nation, and in many instances rightfully ington, there was not a single administration able by equal installments. so, have taken the implements in hand measure of the first importance that Con He explained that in addition to all and have said, "We want a higher stand- . gress did not either reject, remodel, or put ard of living." Where will it go, Mr. on one side. Assuming, however, that the the subterfuge and loopholes, they could principle of charging interest had to be ob take our money and they need not spend President, when we open the markets of served, then, in my judgment, almost every it in the United States but could spend it America to goods produced by people all thing possible has been done to mitigate the anywhere in the world. These are his over the world who have much lower burden and to limit the risk of a future words: standards of living? dangerous embarrassment. We pay no in Mr. President, I think we ought to be terest for 6 years. After that we pay no in All the other loans which are being made are tied loans limited to payments for clear about just what we are getting in terest in any year in which our exports have for. This agreement, if we conclude it, not been restored to a level which may be specific purchases from the United States. estimated at about 60 percent in excess of Our loan, on the other hand, is a loan of is a solemn pledge on our part that we prewar. I repeat that. We pay no interest money without strings, free to be expended will undertake a major operation upon in any yea;: in which our exports have not in any part of the world. our whole tariff. policy. been restored to a level which may be esti I call attention to the fact that since The old arguments about building up mated at about 60 percent in excess of what industries and that sort of thing are no they were prewar. he arrived here in the thirties he has implanted in our State Department and longer relevant. Today our Government Nor was he alone in his explanation. Treasury Department his philosophy of has set out by law to produce in this Mr. Dalton, the Chancelor of the Ex spend and spend and borrow and borrow. country a standard of living very much chequer in the House of Commons, ex Finally he says it is now over. It is their higher than that which existed before pressed the same view. He said: program. I wish to read his words. the depression. The administration has, I have emphasized, in the common cause announced its intention to assume the He continued and explained that this responsibilitY for full employment for of us all, we should receive some form of entire program is the program <>f our grant-in-aid, or, failing that, an interest the security of every man and ~oman free loan. This was the proposal made 'by American negotiators, and when the from the cradle to the grave, and in our representatives in the first stages of the schem.e fails to work and Great Britain order to accomplish this it has formu talks, and the reasons in it.s support were de fails to pay, as· they did after the last lated a program of Government control ployed with great wealth of detail and great war, they can say that it was America's of industry on the most elaborate scale. skill by our spokesmen. But we were told, fault. I quote him: quite definitely- This policy has been in the making for Secondly, all the most responsible people a number of years. We are now impos And this will interest Members of the in the United States, and particularly in the ing enormous taxes for these purposes Senate- State Department and in the Treasury, have upon our producers. We force old-age entirely departed from the high-tariff, ex and unemployment insurance taxes. We that this was not practical politics, and that port-subsidy conception of things, and will the Congress of the United States would do their utmost with, they believe, the sup have compensation insurance and fac never consent to any such arrangement. port of public opinion in the opposite direc tory inspection laws guaranteeing work But he said: tion. That is why this international trade ing conditions matched no place else in I would draw the attention of the House convention presents us with such a tremen the world and costing huge sums. We to the fact that the agreement contains a dous opportunity. For the first time in mod have instituted rules and regulations novel and important provision, not previously ern history the United States is going to exert controlling our banks, our investment included in an arrangement of this sort, for its full powerful influence in the direction institutions, our producing agencies. a waiver of interest. The annual interest of reduction of tariffs, not only of itself but We have imposed the will of the Govern is to be completely canceled in any year in by all others. ment upon the employer-labor world, which our exports, visible and invisible, are Thirdly, this is a problem of which today insufficient to pay for our prewar level of every economist and publicist in the United and that has resulted in higher wages, imports, adjustments being made for price States is acutely conscious. Books on eco shorter hours, better working conditions, changes--on the understanding, naturally, nomics are scarcely written about anything even the terms and amount of production that our reserves also are insufficient to make else. They would regard it as their fault · which have sent and will continue to good the payment. On this last point we and not ours if they fail to solve it. They send the cost of production in America are the sole judges. would acquit us of blame-quite different to very high levels. I am not now dis from the atmosphere of 10 or 20 years ago. Mr. Dalton explained that in addition They· will consider it their business to find cussing the wisdom of these things. I to the provision permitting them to avoid a way out. • • • It will be the prob merely say they are a fact, and every the payment of interest, they had also lem of the United States and the whole com man in this Chamber knows it. secured a provision whereby they could, mercial and financial arrangement of every . Mr. President, you know, as well as I if they thought it necessary, "consult" other countrr. do, that we cannot impose these cost and 4272 CONGRESSIONAL RECORD-SENATE_ MAY 1 production elements upon a man in Illi Conservative view in the debates in the sia, France, China, and .countless other nois and not impose them upon a man in 'House of Commons on this very loan, the countries. We cannot play favorites, and Virginia. Both are entitled to compete acceptance of which he' asked his fol we simply do not have money enough or upon the same level. We recognize that . . lowers not to support. printing presses to print enough money But does anyone mean to tell me that I now quote Winston Churchill as he to give $100 to every person in all of the we are now going to force both the man spoke in the House of Commons on this countries of the world. in Illinois and the man in Virginia to loan: They will demand it, nevertheless. submit to these extensive controls and Finally, there is one point I must put on When Lord Keynes·first came here, they cost elements and then let some man record about the commercial-policy declara were asking for approximately $5,000,- from India, upon whom we cannot im- · tion. At my first meeting with President 000,000 as a gift, and he told the House of pose these controls, or someone in Britain Roosevelt at Argentia in 1941, I was very Lords about the fabulous demands al or France or any other country whom careful that the terms of the Atlantic Charter ready made upon us. in no way prejudiced our rights to maintain I may say, Mr. President, that for a our laws and regulations cannot reach, the system of imperial preference. Those send his goods in here and compete with were not easy days. The United States were long time we have received from the the men from Illinois and Virginia? neutral. It was very hard to see how ·the war British our first-hand information with Whether it is right or wrong, wise or could be won, but even then I insisted upon reference to what has been taking place unwise, the American people will not that. Similarly when it came to the mutual in our State Department and in our permit that to be done; and if an attempt aid agreement-- Treasury Department. The following is is made to throw down our trade barriers ! digress only to say that reference what Lord Keynes said as he spoke in the in order to open our markets to a flood is made there to the lend-lease agree House of Lordii: of products from these low-income, low ment--:- The total demands for overseas financial standard, low-cost countries, every assistance crowding in on the United States manufacturer in America, every trade I received from President Roosevelt the ex Treasury from all quarters while I was in plicit assurances which have since been pub Washington were estimated to amount to be union in America, every farmer in Amer lished that we were no more committ€d by ica will send representatives to the Capi tween four and five times our own maximum article 7 to abandoning imperial preference proposals. We naturally have only our own tol to protest, and no one will dare com than was the United States to abolish her requirements in view, but the United States ply with such an agreement. tariffs. What we are committed to, and have Treasury cannot overlook the possible reac I know that there are unreasonable been long committed to, in good faith and tion of what they do for us on the expecta trade restrictions which ought to be· in good will, is to discuss both these matters. tions of others. Many Members of Congress done away with, but that is not what Mr. President, I digress from the quo were seriously concerned about the cumula these men are talking about in this tation in order to say that discussions tive consequences of being too easygoing to agreement. They · are talking about ward a world unanimously clamoring for are promised. That is all we will get American aid, and often only with too good what I have described as a major opera from Great Britain. There will be dis reason. tion on those tariff arrangements which cussions, and that is all. In their dark have for years protected the American est hour the British clung to their im Mr. President, I still hold that view. standard of living from the competition perial preferences, and they cling to them Until the administration gives us hon of countries which pay from 15 cents to now. They will continue to cling to them estly and frankly a balance sheet and $1 a day to their labor. I do not wish to if they receive the proposed $3,750,000,- tells Congress and the people exactly discuss the entire tariff issue. I merely 000 of our money. how much has been demanded by each say that when you promise the people of I continue with the quotation: and every courttry, I shall oppose this England that you will undertake to throw At the same time we are bound to take and all other gift-loans of this character'. down to any ·considerable degree these· into consideration t'1e views and wishes of I voted to cooperate with all other na barriers, you are making a promise which the other dominions of the Crown, and all tions. We were told when we extended you cannot fulfill, and which they know has to be discussed at the forthcoming con reciprocal trade agreements and the Ex you cannot fulfill. ference in the light not only of the actions port-Import Bank, when we voted for The difllculty about this agreement is and agreements of the English-l"peaking Bretton Woods, the United Nations, and world, but also with regard to the general UNRRA, that that would meet our obli that this is a promise which is made to attitude of all other countries toward the be carried out after England has gotten removal of trade barriers and trade restric gations. Now we find that we must start our $3,750,000,000. In other words, the tions of all kinds. this new list of gift-loans before .Great first step in this agreement is to be per Therefore, we have unquestionable latitude Britain can even participate in Bretton formed by us-namely, to hand over the and discretion of judgment. Some have said Woods. cash. Then comes the period of repay that the United States might make what Mr. President, when the discussions ment by Britain; but that will be con looks like a substantial diminution· of tariffs with reference to Bretton Woods were ditioned, at least so Britain can say, upon already so high as to be prohibitive, and taking place before the Senate was the that then, although those tariffs still remain our performing the next step in the an effective barrier against our exports to question ever asked, How much will it agreement, namely, meeting her in an America, we should be obliged to abandon cost us to make Britain's contribution to arrangement for the elimination and re or reduce our present preference. I could Bretton Woods? Not once do I remem laxation of tariff barriers; and if we do not agree with that view. On this side o'f ber such a question being asked, or any not perform that condition, Senators will the House we reserve the unlimited right of explanation being.made. Those who sat hear from their English friends when the free judgment upon the issue as it appears, around the table at the Bretton Woods next installment on the loan is due-and when definite, concrete proposals are before Conference sat there with poker faces. us. It is, therefore, in my view, quite un They looked innocent enough. Appar I can already hear in the not distant true to say that we are at this time being future the iteration and reiteration of committed by the Government to any aban ently we are now being asked to con that affectionate term "Uncle Shylock" donment of imperial preference and still less tribute money to enable Great Britain for collecting our just dues. its elimination. to participate in .Bretton Woods, even What about England's share in this though it should not require all the arrangement? The English have a sys It has been argued that the Churchill money which we are now asked to give tem of empire preferences which is a government has been replaced by the so to Great Britain in the form of a loan. system of tariffs designed to maintain cialistic government, but that, to my Why did not the Treasury and State preferential trade within the British mind, is additional reason for not ap Departments tell us all of the facts then? Commonwealth. We have been told in proving this gift-loan. When the So In my judgment, we never will get all the numerous English statements preceding cialists were campaigning for control of facts unless we demand them now before this agreement that the English did not the Government, they made lavish prom we approve this first of a long list of look with favor upon any such condition ises to give the people better houses, similar gifts. for this loan. As a matter . of fact, more food, clothes, and luxuries. ·of If we now approve this loan, which is England has been moving in the direction course, they cannot do it unless we inake based upon a future commercial and of stringent barriers far more than we this gift-loan. To give them $3,750,000,- financial agreements conference, it will have in the last 20 years. 000 of American money means to give result in our entire foreign economic pro During England's darkest hour, they them almost $100·for every person in the gram being entirely taken away from refused to give up-their imperial prefer British Isles. I say to you that once we the Congress and placed in the power of ence. Winston Churchill explained the do that, we will have demands from Rus- Executive agreements between our colin- 1946. CONGRESSIONAL- RECORD-S-ENATE -. 4273 • try and the socialistic government of · made. In the case of air travel) however, _ are not going to give up imperial pref- - Great Britain which we are being asked the same type of deduction from the foreign erences within the Empire. exchange allowance does apply, unless the to finance by this gift. journey is made by British carrier all the When he was questioned further, he I tell you, Mr. President, we are placing way. For exampl·e, for a trip to Paris made said: an unbearable load on the backs of the on a non-British air line, £12 (about $48.35) I am afraid I cannot say it more definitely ·American people to finance and support would be deducted from the £100 of exchange than I have said it already. We agree to a ·socialistic government of Great Britain. allowed. It is obvious that on this basis, any the initiation of a process of bargaining, the That socialistic government has already long-range trip outside the Empire and the ultimate objective of which may be looked taken over the Bank of England. They sterling area on a non-British carrier would upon as the elimination of discriminatory wipe out much or all of the foreign exchange methods of preferences and the reduction have nationalized their coal industry, allowed for travel and business purposes. of tariffs, out we are abEolute masters as to their transportation and communication whether we ever get to that objective or not. system, and, according to Harold Laski, That restriction was put on while the If it is worth our while, we can get there; the head of the Socialist Party, who hates debate was under way on this loan. Does if it is not, we shall not. Therefore, I do and denounces our private enterprise that show they are putting into effect a not really think it matters how one ex system, they ·have inaugurated a social program relieving restrictions? They are presses the objective. security system far beyond even the tightening them every day. I have repeatedly protested the .lend limits ofthe Beveridge plan. Yet, we are · If we approve this glft-loan, we pave ing of billions of American dollars to asked to weaken our system. of govern the way for the financial and commer foreign governments at 2 percent or 1.62 · ment in order to finance and support cial conference in which we will en percent interest while we charge 4 and · their socialist schemes. gage in wholesale Executive agreements 5 percent interest to our American vet Let us see how much they are in favor with the Socialist government of Great erans who twice fought to" save Great of withdrawing · restrictions in foreign Britain that not only will lower our Britain. American veterans having trade. That is the argument which we standard of living but ·launch us on a loans from the United States Veterans' hear made in favor of granting the loan. program of planning and regimentation Administration are at the present pay It is said that we will continue to meet never dreamed of by the people who still ing 5 percent. with restrictions unless the sterling bloc think-they are supporting a representa When I entered the Senate in 1940, is broken. Let us examine the facts. tive government here in America. .the first bill I introduced provided ·for Recently· our State Department, · by Ex This' wm ·mean that we will have the reduction of interest in Government ecutive agreement, entered into the Ber- turned over the right to make agree insurance loans to veterans of. the _First . muda aviation agreement with this So ments by Executive action in· every phase · Wor)d War. .. The bill was reintroduced cialist government. The· result was that of our economic ·and financial life. Un in each session of the ,Congress. No ac although we originate and provide 80 der the Bermuda aviation agreement, 46 tion was taken upon it until the present percent of the trans-ocean air traffic of countries can participate in tapping'and session, when S. 447 was reported favor the world, we ga':'e them equal access to sharing equally with American com ably by the Senate Finance Committee it with the American companies, in ad pani~s in the . 80 percent of world air on June 14, 1945. It provided for the dition to allowing them to fly across our ' traffic originating in the United States. ·reduction of interest ·to 4 percent. It entire country. This was done without The British have told us that they will passed the Senate June 21, 1945, and was an open hearing of any kind. It drew a · not remove their preferences even after referred to the House Committee. on violent protest from the American they get our $3,750,000,000 unless several World War Veterans' Legislation, June steamship lines, the Brotherhood of Lo other countries remove theirs also. Lis 22, 1945. I am informed that no action comotive Engineers and Trainmen, the ten to the words of Sir Stafford Cripps, has been taken on the bill by the House , International· Association of Machinists, the president of the Board of Trade of of Representatives other than to request and several other labor organizations Great Britain, under their present So the opinion of the United States Vet throughout America. It was so detri cialist government. He said in the House erans' Administration as to the advis mental to the interest of American work of Commons in the debate on this gift ability of reducing the interest on vet men and the American people that the loan: erans' loans on their insurance policies. Commerce Committee of the Senate Nobody can compel anybody to reduce a It is hard to get something done for the voted to protest the agreement by a vote prefer-ence; nobody can com~el a~ybod~ to American veteran; but when it is desired of 17 to 1. reduce a tariff. If any one party IS invited to give billions of dollars to foreign YV' hat did this socialistic government by another to reduce a preference he is at liberty to say, "I cannot do it unless you re countries, that is easy apparently, be of Great Britain do to remove restric cause the idea is deep-seated in the mind tions on the traffic of their country while duce your tariffs by 100 percent." The bar gain is entirely in his hands, and if he is not of the State Department aud the Treas they share equally in handling the 80 satisfied with the bargain there is no reason ury Department, and Lord Keynes says percent of the total traffic originating whatever why he should enter into it. the British are ready to say, "If we fail, in the United States? They instituted the Americans will take the blame from new r-ules and restrictions on traffic orig Now, mark this: Even if we should give a tariff advantage they say they now on." inating in Great Britain which amounted The Congress has passed much legis to "fly British or stay home." would not necessarily have to give up a preference. lation favoring veterans, but when it I quote now from the April 5 issue of comes to reducing the rate of interest International Aviation magazine: It is clear that we do not necessarily say that we should give up a preference because on veterans' loans, it seems to doubt· Recent questioning in the House of Lords one country is prepared to give us tariff the advisability of doing it. Even the brought an explanation of a British exchange advantages. The peculiarity about our GI bill of rights provides for an in ruling on travel that seriously limits, and · trade, as the House knows, is that it is a terest rate of 4 percent on loans to ve.t in most cases would probably eliminate, the very widespread and diversified trade. ·We freedom of Britons to choose travel on air erans to purchase homes. do not sell large quantities of goods of If we cannot loan American money lines other than British. The normal rule particular lines to particular countries; we is that nonpriority travelers are allowed sell goods all over the world in what. .might to our American veterans at less than £100 ($403) of foreign exchange for any des be considered comparatively small llnes. 4 percent, I cannot vote to loan Ameri tination outside the sterling ar.ea in any . Therefore, it is not enough for us to get, can money to foreign countries at. 2 per 1-year period, it was stated. In issuing the as against a preference, the · reduction of cent or less, especially where there are foreign exchange, British banks deduct the merely one person's tariff; we might want escape and consultation clauses whereby foreign exchange equiva1ent of any sterling 26 countries to reduce their tariff before we they may avoid payment of both interest spant in Great Britain for the cost of t~avel were prepared to drop a preference. There by any foreign-flag carrier, such as America~, and principal. This is doubly true when fore, the whole matter is completely at large I know that these same American vet Swedish, or French· air line or steamship and no one is bound at all. companies. If the travel is on British ves erans will have to help pay both the in sels or aircraft, the foreign exchange is not Still we are told that they agreed terest and the principal when foreign deducted for the cost of the trip. to abandon or reduce preferences nations default on their loans. There is a minor exception in the case of If travel between England and Paris, Brussels, within the Empire. so, why do they These same· veterans will have to help or Amsterdam. To ease the burden on the say it is still in their hands, and if one pay the interest and the principal of the banks the comparativ.ely short European rail country reduces its tariffs they· want all more than $25,000,000,000 that we sent journey is ignored and no deductions are other countries to do likewise, or they .to Great Britain in lend-lease, for it 4274 CONGRESSIONAL RECORD-SENATE MAY 1 still has to be paid by the American peo NELL answered to their names when upon a determination by the National Hous ple while we relieve the British from any called. ing Administrator, after consultation with The PRESIDING OFFICER. Forty the Commissioners of the District of Co further obligation. lumbia, that such housing is still needed to I realize full well that when I take the one Senators have answered to their provide housing for eligible tenants in the position I do that I will · feel the full names. A quorum is not present. interest of the orderly demobilization of the weight of the organized criticism of the Mr. BARKLEY. I move that the Ser war effort. international-minded clique that will say geant at Arms be directed to request the I am anti-British. I am not anti-Brit attendance of absent Senators. The amendments were agreed to. ish. I am pro-American and I am proud The motion was agreed to. The bill was ordered to be engrossed of it. The PRESIDING OFFICER. The for a third reading, read the third time, In opposing the gift-loan under the Sergeant at Arms will execute the order and passed. present circumstances and terms, I am of the Senate. MESSAGE FROM THE HOUSE in good company. such eminent men After a little delay, Mr. McFARLAND, A message from the House of Repre outside the Congress as Bernard Baruch, Mr. BUTLER, Mr. AIKEN, Mr. KNOWLAND, sentatives, by Mr. Maurer, one of its Jesse Jones, and. Leo Crowley have, in Mr. REVERCOMB, Mr. BUCK, Mr. GURNEY, reading clerks, announced that the various manners, taken the same view. Mr. LANGER, . Mr. SALTONSTALL, Mr. House ·had agreed to the amendments of Jesse Jones, who loaned more money HAWKES, Mr. STEWART, Mr. JOHNSTON of the Senate to the bill (H. R. 3755) . to than any individual in history; Leo South CAROLINA, Mr. TAFT, Mr. DONNELL, establish an Optometry Corps in the Crowley, able Administrator of the Ex Mr. CAPEHART, Mr. STANFILL, Mr. REED, Medical Department of the United States port-Import Bank; and Mr. Baruch, ad- Mr. BYRD, and Mr. BUSHFIELD entered the Army. 'viser to Presidents, are not asked for Chamber and answered to their names. The message also announced that the their advice on this subject now-it has The PRESIDING OFFICER. Sixty House had agreed to the report of the been left to their successors to develop Senators have answered to their names. committee of conference on the disagree this fantastic plan. A quorum is present. ing votes of the two Houses on the I do not blame the British negotiators. UTILITIES FOR VETERANS' HOUSING IN amendment of the Senate to the bill I like the British people and admire them. THE DISTRICT OF COLUMBIA (H. R. 4283) for the relief of the estate I want our country to remain good of Michael J. McDonough, deceased. Mr. HOEY. Mr. President, I ask friends with all countries who were such PROPOSED LOAN TO GREAT BRITAIN good friends and allies in the war. To unanimous consent that the unfinished that end I voted for the extension of the business be temporarily laid aside and The Senate resumed consideration of Export-Import Bank, for Bretton Woods, that the Senate proceed to the consider-· the joint resolution

ment implying a further re~uction in tariffs It _is apparent that both of these devices There is an additional consideration which under the Reciprocal Trade Agreements Act. constitute a severe impediment to resump I think we must take into account. Ob "The United Kingdom agrees: tion of free, multilateral trade, as contem viously, Britain, despite her efforts to in "1. To eliminate within 1 year the sterling plated in the Bretton Woods agreements. crease her export trade, will find her foreign area dollar pool restricting the use of dollars Yet it is equally clear that without some exchange resources limited for several decades and oth er currencies received by member assistance in the form of large dollar credits, to come. The dollars she pays to our Gov n ations. Britain would not dare even to begin to relax ernment in the form of interest will not be "2. To abolish immediately any exchange these restrictions, as to do so would strip her available to purchase goods in this country. controls affecting United States products per own economy bare and prevent her orderly In a very real sense, a high interest rate on mitted to be imported into the United King reconversion. the loan would tend tq decrease our export dom or affecting sterling balances of United I think that we drove a hard but fair bar- business in tobacco, cotton, wheat, and States n ationals arising out of current trans ,gain, and one which certainly is as advan manufactured goods with Britain. actions. tageous to us as it is to Britain. England Another argument made by opponents of for many years has been our best customer "3. To elimin ate within 1 year all restric the loan is that British purc!lases with the in international trade, as we have been hers, credit will intensify the curent shortage of tions on payments and transfers for curre~t and at least 25 percent of our trade in peace tran sactions, with specified exceptions. goods in this country, particularly building time is with the countries in the so-called supplies. That is true, but anyone who has "4. To eliminate not later than December sterling area. The removal of trade restric 31, 1946, discrimination against the United seen the destruct ion wrought in British tions in this area, agreed upon by Britain, as cities will realize the desperate need there States in any quantitative import restric well as the elimination of Empire tariff pref tions. for such goods. We are the only source of erence, will be of great value in increasing supply for many of them. Our shortages are · "5. To make agreements with the countries our foreign trade, which may well mean the concerned for an early settlement covering relatively · less and arl( only temporary. margin between prosperity and depression Within a few months, or a year at the most, blocked sterling balances and to m ake avail for us. able for use anywhere such l:alances as the supply problem should be pretty Well Britain's only alternative for survival, if solved here. On the other hand, Britain's are released. she cannot obtain this credit, is to continue shortages will take longer to satisfy, and we "6. To join with the United States and restrictions on trade, exchange controls, and will need her markets once our production other n ations in a program for elimination barter deals with individual nations. If the steps into high gear. It appears to me that or modification of trade barriers, including greatest trading nation in the world is forced a reasonable sharing of essential i·econstruc Empire tariff preferences." to that expec'lient, all chance of free, multi tion supplies is as essential to world peace Britain's need for this credit arises out lateral trade will disappear for many years. and stability as a sharing of food resources of the fact that world trade is her economic All international trade will tend to be han to avert famine. life (in normal times she imports two-thirds dled by governments, in barter deals, and Frankly, complete repayment of the loan of her food .and tremendous quantities of there will be no chance for private .enterprise with interest is questionable. Had we loaned raw m aterials) and during the war she de in this field. It is my conviction that result the British a larger amount, or made the liberately sacrificed her trade to c·oncentrate w.ould be as disastrous for the United States terms less severe, the chance of our receiving on war production. Even under the auster as·it would be for the world and our chance a complete return woul~ have increased ity program adopted by the British . Go~ of world peace and stability. proportionately. Repayment of any foreign. ernment , under which the English diet 1S Besides this compelling economic reason, loan, on whatever terms, is contingent on the reduced to only 2,400 calories a day, it will I am convinced that the continued coopera willingness of this country to buy the goods take her 3 to 5 years to reconvert her indus tion and strength, both military and eco with which a loan must be repaid. If, as we tries and build up her shipping and exports nomic, of the two greatest democracies in the did after the last war, we cut our imports to a normal balance between exports and world is absolutely essential to world peace. to the bone through adoption of a high tariff imports. And in addition to all these reasons of self policy, we canz10t expect repayment. A look Before the war, British imports averaged interest, I believe the whole free world owes at what happened then may be helpful. In $3,500,000,000 a year. Her exports aver_ag~d a debt of gratitude to England for her 1919, foreign governments owed us $7,244,- only $2,000,000,000 annually and Bntam courageous stand alone against aggression in 000,000. In 1921, additional credits had been made up the balance mainly by shipp~ng the dark days of 1940 and 1941. extended and the total reached $11,854,- services ( $423,000,000) , income from foreign Many of the arguments I have heard 000,000. On the other hand, $622,000,000 of investments ($818,000,000), and around against the British loa:.1 agreement stem from the o:::-iginal had been repaid, and by 1928 $175,000,000 in other payments such as in a lack of understanding of the essential dif an additional $1,341,000,000 was repaid. By surance and commissions. After lend-lease ference betWefll international and internal 1932, the year after the adoption of the began, Britain deliberately cut out her ex credits, and from an unawareness of the eco Smoot-Hawley tariff, but before its effect had port trade and her exports in volume dropped nomic problem which Britain faces. really been felt, 665 additional million dol in 1944 to only 30 percent of 1938. War It has been proposed that instead of a lars in payments were made. The payments losses have cut her merchant fleet from 2.2,- Government loan to the British, we float a made between 1932 and 1937, however, when 000,000 tons to 15,900,000 ~ons, and it wi~l private bond issue at commercial interest our high tariff policy was fully effective, be several years before her mcome from thiS rates. This proposal leaves out of considera totaled only $1,200,000. If the same cycle source is back to normal. During the war, tion the vast difference between a commercial is repe'lted, we stand no chance of having Britain not only sold $4,500,000,000 of her transaction and a loan of this type. During the B.Litish loan repaid. So far, however, foreign investments, reducing Iler income the last war, both the British and the French Britain has kept slightly ahead of her export from this source to an estimated $400,000,?00 borrowed large sums of money here in this schedule, and if this trend continues, and annually, but her foreign indebtedness m way. This resulted in a large concentra we honor our commitments to lower trade creased from $2,000,000,000 to about $13,500,- tion and perpetuation of economic power barriers, I see no reason why the British can 000,000. in the hands of a few people, and simpli not pay us back, and I am convinced that The best estimates are that in the next fied the formation of international cartels. they will pay if they possibly can. 3 years, Britain's adverse balaz:ce of inter The present sum proposed is immensely The danger of Britain's using the loan to national payments (excess of Imports over larger, and, even if the issue could be floated finance a completely socialist economy has foreign exchange from exports an~ other in this manner, we would gain none of the been highly exaggerated in this country. sources available to pay for them) Will total trade concessions made under the present The British devotion to freedom, both po at least five or six billion dollars. Canada arrangement. litical and economic, is as great as ours. Al already has negotiated a loan ~o Britain of It is also argued that, if we can lend money though the Labor government took the wheel $1,500.000,000 and it is expected the other to Britain at an interest rate of 2 percent, in August, · few important changes in the dominions will make similar loans, up to the why should we charge our veterans more. British economic pattern have been made as · tot al neces3ary to make up this balance. The Again, the essential difference between the yet. Given a fighting chance, rmd the loan dollars which we loan Britain all will be two transactions has been overlooked. The would do just that, . Britain probably will spent eventually in the United States. interest on the British loan, while only 2 maintain much the same economy she does The blocked sterling balances, which now percent, will amou,nt to $2,217,000,000, over now, with the exception of nationalizing total around $11,000,000,000, and the so 50 years, providing it is all paid, and interest highly concentrated and essential industries called "sterling area dollar pool," are both payments will exceed those on the principal such as transportation and coal. If, on the severe h andicaps to American trade. Britain for the next 20 years. Treasury Secretary other hand, the loan is defeated, Britain used bot h devices to channel all available re Vinson testified before the Senate Banking might have to resort to drastic economic sources into her. war effort. Her purchases and Currency Committee that the loan will regimentation to maintain her living stand of war m aterials in the sterling area were paid cost us, if it is financed in the same manner ards at anything like prewar standards. for in " blocked" sterling, which could only as the rest of our Treasury obligations, about Another argument I have heard against the be u sed t o buy specified goods within the 1.64 percent interest. This compares favor loan is the one dragged out and dusted off st erling area. Similarly, all dollars which ably with the two percent asked of the by both isolationists and apologists for Rus the United States spent in the sterling area British. 0n the other hand, veterans' loans sia every time the British are mentioned. were turned into the dollar pool and could are short-term obligations, and will be paid I refer to the charge of imperialism. A cen be spent only for essential war goods bought up within a few years. Both the purpose and tury ago, this charge might have been justi in this country. the risk are vastly different. fied. But it is perfectly apparent, regardless 4276 CONGRESSIONAL RECORD-SENA. TE MAY)._ of political statements, that for the past _50 treasure in tremendous degree; that now. Of course~ .we ~ have no. assurance that or 75 years the British Empire has been in we are called upon to again ''bail out the Will tbe pr.ocess of voluntary liquidation and any action we shall take now guar transformation into the commonwealth. British Empire"; that the record of the antee peace and progress, but we do have Prime Minister Atlee's recent declaration on British in repayment of their obligations an obligation now to do everything that India is the latest step in this process. The to us is not good; and that we are con we can, even at the risk of making some cited presence of British troops in many tributing $3,750,000,000 without definite temporarily bad bargains so far as our parts of the world indicates, not that the assurances of repayment, and especialiy selfish interests are concerned, to heip British are imperialistic, but they have a with the specific provision that if under orient a confused and devastated world better understanding of the responsibilities certain economic conditions ·they can toward the ways of peace and human of world leadership .than we do. In summary, I think there are three main not pay the interest it will be waived. . comforts. reasons why we should support the British We hear the criticism that there might I say we must do everything we can. loan agreement. come a time when Britain or some other Of course, l neither suggest nor mean First, it is a good business deal for us. country might substantially contribute that we should be foolishly profligate. Britain is our best customer, as we are hers, to our economic stability, and that with Reason and judgment and the prob and the agreed upon elimination of exchange ability of constructive results must controls and empire tariff preference is a the $275,000,000,000 debt which we now concession to us as great in value as is the have we do not have the money to pro govern our opinions and ·our actions and loan, at the terms agreed upon, to Britain. vide this credit or to· finance this agree in my view we should measure our poli Second, if by failure to obtain sufficien.t ment. cies, our contributions, and our coopera credits to tide her over the next five critical There are many other arguments, and tion with other nations by the yardstick years, the world's greatest trading nation is most of the arguments have a factual of whether such actions, policies, or con forced to deliberately adopt a policy of eco tributions have a greater likelihood of nomic warfare to survive, then any chance basis, although the conclusions to be of achieving the free multilateral trade ob drawn may be the subject of much dis advancing the common purposes of a jectives of Bretton Woods are likely to go . agreement. We did fight in World War peaceful and progressive ·civilization in glimmering, and our chances of maintaining I at great cost, without having our own our own country, as well as the world, peace will be.greatly lessened. · shores seriously threatened; thereafter than another course would hav:e of de Finally, extending a helping hand to Eng we did loan money to European coun teriorating world progress. land is small repayment for the debt which tries, including Britain, and most of it There are those who argue, and power all free peoples owe to her for her gallant fully, Mr. P,resident, that there is no com stand alone against the force& of tyranny in was never repaid; and we did bring as those dark months from June of 1940 until · sistance to the British, and later we took pelling reason why we should assume the June of 1941. While our future armies still ove'r the burden of financing and in burdens of the world and, .of course, the trained with broomsticks and our factories great measure fighting and supplying. obligation is proportionately no greater were still tooling up for war production, the war that has just ended.- W-e got no on us to assume the resp~nsibilities of Britain held the line against odds that ap tangible property gains from our ex decency and Christian principles than it peared overwhelming. Dollars alone cannot penditures in World War I; and the so is upon the other nations who :must sin measure the debt which freedom owes to her. cial and humanitarian gains for which cerely join in the effort if tomorrow is to Mr. HICKENLOOPER. Mr._President, we stood, and which were the only re be a better -day. But the fact remains the l3ritish ·loan has been· the cause of wards we sought, did .not materialize. that,. in the devastation that now has great concern; it has . aroused specula We saw, instead, a restless world, with prostrated most of the world, we remain tion and discussion coursing through the nations struggling for preferment, and the most powerful nation, with resources, whole field of economics and poEtics. I not even an armistice or truce in order, industry, and productiv-e capacity intact, am thoroughly convinced that opinions but actually a period in which armed and having a conception of political gov on this proposal are not partisan,. but are conflict was continually going on in vari ernment and human .rights which we based upon the deep convictions of each ous parts of the globe, with the destruc know have laid the basis for the greatest individual as to its benefits or detriments tion and confusion of both moral and civilized progress in history, enabling us to us and to the future prosperity of the economic values . mounting until the to assume leadership in these chaotic world. This concern is ge:r;mine, and world caldron boiled over into World times. · each one desires to approach this prob War II. In my opinion, Mr. President, the im lem from the standpoint of the over-all It is not my intention, Mr. President, plications of this British financial agree benefits or detriments which he himself to try to discuss the economic and social r..:-4ent are deeper .than the extension of may see in it. arguments or the why and wherefore of credit to one nation. Furthermore, I do I think there is a great deal of emo many happenings of the past. Those not consider it a controlling precedent tionalism on each side of this question arguments have been presented in the for any other loan to any other nation; that may becloud the issue on occasion. past · and will be further presented on and in fact, it has been repeatedly stated On either side of this question strong both sides in the course of this debate. by officials in our government and by and compelling arguments can be made. I cannot be certain that I am correct in Members of this body that it is not to be I am fully aware of most of these argu my present conclusions as to what will so considered. ments. As a member of the Banking happen in future years if we do or do not This British loan is not a banker's and Currency Committee, befGre which confirm this loan or if we do or do not loan. A banker's loan is made for an in this proposal was heard, and as a result do many other things. I can only assure terest profit. If it were a banker's loan, of discussions with people of divergent the Senate that I am certain in my con I would say, "Don't make it," for we have views, tog-ether with letters from hun viction that neither we as a nation, no business making, and no money with· dreds of people who look to me as one meaning our system of government and which to make, a loan for the purpose of their representatives in this body, I our conception of political and social of securing a profit by way of. interest. feel that the various arguments have rights, can go forward as we hope, nor Neither is this loan, in my opinion, been fairly presented. Emotionally and can the world survive with progressive an aid solely to Britain, although the practically, it is easy to argue that the freedom of the individual and of nations, United Kingdom will benefit from it. If British have ou.ttraded us repeatedly in if we permit the regeneration, in the I conceived it to be an individual bilateral the past and that they are outtrading us next few years, of the forces of oppres lean solely to the United Kingdom and now; that we supplied the sinews of war sion and destruction that were developed for its sole benefit, I would be' opposed to in 19'1 7-18 that tipped the scales to the prior to the recent war. That is not to it in its present form and in its present advantage of the British Empire and say that I am actually fearful of another amount, and I would say "Don't make it," brought victory from defeat for them; destructive world conflict within the as is now proposed. Neither, Mr. Presi that we thereafter loaned money for immediate future, but it is to say that dent, is it a gift from an affiuent friend their rehabilitation, a substP..ntial part of what we do now and in the immediate to an indigent friend, for again, we have which has never been repaid; t3at again future and the cooperation which we not the surplus funds for largess of this in 1940 we came to their rescue at a must of necessity lead in establishing kind. Let me add that I believe Britain time of dire need and thereafter took among nations will have a vital effect can survive without this loan if it is over the great portion of the burden upon whether tomorrow's generations merely a question of the eventual sur throughout the world of defeating the Jive in peace and human progress or vival or financial collapse of the British Axis Powers and contributed lives and destroy themselves in war and conflict. Empire. 1946 CONGRESSIONAL RECORD-SENATE 4277 If it is none of these, Mr. President, astated areas, all completely refute any nothing of her long-range investments then, of course, you may well ask, "What charge that we are isolationist. in those countries, will require those na is it for?" and "Why should we make it?" It is true, Mr. President, that we have tions, at least temporarily, to give prefer In searching for the answer to these not followed a policy of going about the ence to British trade in order to cash questions I have come to the conclusion world with a chip on our shoulder, seek their credits. that our country, our economy, and our ing to get into war and conflict every We may be restless, Mr. President, people will, in the long run, be better time a shot has been fired. It is true when we think that in two wars we have served and better advanced by making that we have sought to live in peace and contributed life and money for victory - the loan, rather than by not making it, to protect and promote our system of a.s an ally of Britain, and that now she and I shall try to tell the Senate why. freedom. It is also true that we have closes the gates on postwar trade to our After World War I many arguments argued and worked against war, and that economy. We may feel that it shows a were made in support of loans which we have tried to avoid physical entangle lack of gratitude and a lack of coopera at that time were made by u-s to other ments in the explosive arsenals of Europe. tion on the part of Britain-, and unless nations. Running through those argu But, Mr. President, whenever the basic the facts are carefully examined, one ments were the statements that inter principles of government, which we be might well reach that conclusion. How nation.al peace and comity among nations lieve to be fundamental, have become ever, the evidence seems -clear that would flow from such policies and that endangered, our Nation has thrown its Britain, and the vast trade empire which world economy would be soundly reestab full strength unselfishly into the balance she dominates, has one of two courses lished. Based upon this hope and a sin for victory for those ideals. open to her if she is to survive. She cere desire on our part to help stabilize Again we face a situation comparable must either build &.S nearly as possible an the then tottering world, we did give a to that of 1919. Values are distorted impregnable defensive wall about .her large amount of aid. International" sta and emotions often control reason. trade territories and areas within which . bility did not result from our efforts, but Again there are those who, with com she has operated, including her do that does not mean that the philosophy plete conscience and sincerity, say that minions and her commercial associate was wrong. Rather do I believe that we should now lick our own wounds and nations, and control it through the obli events subsequent to those loans did not let the other nations lick theirs. I say gations which she owes to them, the re follow the pattern cut by our attitude .and that those people .are conscientious~ and payment of which she can only make our actions. There was a failure by all they are. They feel that we have already through the furnishing of goods and nations to follow through to the end of overtaxed our economy, that if we are services, and through such destructive moral cooperation. All over the world to save it we must retren-ch, and that the· economic devices as currency devalua there was a dropping away from this other nations of the world will have to tion and exclusive bilateral trade agree desire for friendly, prosperous coopera work out their salvations independently ments, or, the United Kingdom must re tion, and there was a gravitation to an and without further help from us. Again ceive sufficient credit from some source isolationism on the part of individual I say, Mr. President, this argument may to ease the tension of these present obli- . foreign nations which, step by step, de be sound, but I do not agree. Again I gations and free the sterling exchange stroyed the possibilities of reaching the say that, of course, we must not be prof from its now rigid controls. If the latter goals of law and order as world policies. ligate, and that our participation in course is followed, many of the nations Mr. President, I think we did many world rehabilitation must not be foolish. that otherwise would be driven to trade things during that period in an earnest But I also say that, in our own interests, exclusively with Britain in order to get effort to further those goals', and perhaps if we are to see a more speedy recovery their debts paid, can, through these we failed to do some things which, in of this world and hence a more speedy credits, be financially freed and enabled retrospect, we should have done. But r' return to comfort and progress in which to translate sterling debts owed them submit, Mr. President, that the charge of we will participate, inevitably, in a into dollars for purchases of products American isolationism, in its broad im greater measure than any other nation, from us and_other countries outside the -· plications, that has been so glibly and we must give certain aids and certain sterling bloc. unwarrantedly tossed about by certain helps which will stimulate the over-all I believe that the sterling-bloc situa coteries of Americans in years past, and basic economic machinery of the world tion can easily be illustrated. Let us that it is being equally as glibly and as in this critical time. assume that two men operate clothing unwarrantedly clamored about now, is This loan tt Britain, as I said before, is stores and let us assume further that one not justified. It amounts, in many in more than a loan 'to an individual nation. of them owes me a sum of money, and stances, to groveling apologies for the I view it as the extension of a credit to that '! am in the market for a suit of most public-spirited nation in the world; a whole system of economic exchange clothes. In order to get my debt liq- and it amounts in other cases to libels including the British Commonwealths uidated I will naturally go to the man upon the good faith and humanitarian and their trade areas I believe that it who owes me. · ism of a nation that has consistently· will go far toward freeing ~estrictive Mr. President, the latter course to participated more in the genuine at ~ Jlocs of trade in the sterling areas, areas which I have referred is the goal which tempts for world progress and the rais that otherwise will be forced, as a matter Britain has announced as a result of ing of human standards, financially and of mutual survival, to band together in , this loan. She must pursue such a socially throughout the world than any economic warfare that will not benefit course if she acts in good faith and honor other nation ever has. us, but, on the contrary, will throw up in accepting the loan. It is the com No; Mr. President, we have not, in barriers over whicG our trade for some merc:al or economic heart of our long fact,-been an isolationist nation. Ameri years to caine will find it almost impos range resulting benefits, and, in fact, can blood in two world conflicts refutes sible to flow. Britain is and has been a of Britain and the world as well. that. American treasure in untold 'bil trader nation. The British Empire has From th_e economic standpoint there lions in two world wars refutes that. been built not upo~1 resources within the are a number of benefits to us that may American renouncement of physical or home islands, but upon the establish be expected as a result of this loan. If material loot or expansion in two world ment and control of sources of raw ma we do not make it, then certainly, for a wars refutes that. Repeated American terials and of outlets for finished goods substantial period of time, bloc trading attempts to outlaw war as a policy among tbroughout the world. Britain has de seems inevitable, and in bloc trading the nations refutes that, and our activities veloped·to a greater degree than has any various trade devices of currency ma today in bringing about the United Na other nation the intricacies of interna nipulation and bilateral trade agree tions Organization, Bretton Woods In tional finance, and over the years she ments become weapons, and not only dis ternational ·Monetary Stabilization, in has tied together through trade rela..: turb the natural flow of commerce but ternational lending authorities, and vigor tions, investments, and sterling debts, a have a disturbing effect on the economies and singleness of purpose with which we world empire of consumers and pro of other nations. as a people are attempting to promote ducers that normally represents at least It is vital to American agriculture that the lead in the ·establishment of har 50 percent of the commerce of the globe. we have outlets for our surpluses and mony in this world, and our contributions If Britain has no other method of pay that such outlets afford every ·possible of food, clothing, and. equipment to dev- ment, the debts which she owes, to say advantage for disposing of them at a 4278 ·coNGRESSIO.NAL RECORD-SENATE MAY 1 fair price. Too often the over-all price posed British loan will create, through Mr. BARKLEY. If by the enactment of our entire domestic production of our being able to deal outside the blocs of the joint resolution approving the agricultural products is set by the price and outside the various and sundry agreement we could not expect anything at which the surplus can be sold. In barter agreements. The Senator knows in the way of trade of the kind looked this field alone it is likely that restrictive the Midwest section so well that I am cer forward to for a year or a year and a bloc trading and bilateral agreements tain that when he speaks for the products quarter, I should like to ask the Senator would foreclose many of the major world of that section his statements are cor from Ohio how long it would take for the markets against our farm commodities. rect, but I should like to call the atten trade to develop if we rejected the loan. It takes but a short period of accu tion of the Senator to something I heard Mr. HICKENLOOPER. Mr. President, mulating surpluses, and the surpluses do this morning. England and her dominions stand with not have to be great but only substan Some time ago the Indian Government, us in the preservation and advancement tially evident, until devastating drops because of lack of good cotton, imposed of individual human sovereignty and in prices on all of our products domes an embargo, and it does not permit ship rights. The British people are the age tically occur. Bloc trading and bilateral ments of any Indian cotton above thir old exponents of individualism, and they, negotiations among nations would at teen-sixteenths staple to any country in with us, believe that the state should be least seriously hamper the sale of those the world. Mr. C. C. Smith, who is in the servant of the people, rather than surpluses and, as has happened in sev charge of the Cotton Division of the Com the people be the slaves of the state. eral instances in the past, could easily modity Credit Corporation, one of the There are other nations who ·believe this open up new producing areas in other most able Government officials ~md cot also, but their voices may not always be parts of the worJd in direct competition ton experts in all the world, told me this loud nor their strength great. I believe with our farmers. When farm prices morning that recently the Department of that the fate of governments and, of sag, our whole economy sags with them. Agriculture, through the Commodity course far more important, the fate of Industrially, we are equipped as no Credit Corporation, had received nu human personal rights, is strongly de other nation, and we must keep the merous requests for shipment of .Arileri pendent upon . the st.rength and vigor wheels of industry turning for jobs and can cotton to India because of the short with which our two nations unswerv steady. and substantial income. It is im age tl;lere of good cotton, and because of ingly maintain and retain in and for a portant that we be able to sell our indus the shortage there of textiles with which troubled world those principles of human trial products of machinery and mechan to clothe the people. individual rights and prerogatives which ical equipment in as wide a market as Mr. Smith further referred to what have made us great and strong. I am not possible. The jobs and the prosperity of the Senator has so ably stated, the in even suggesting alliances of a material American labor may depend on this. ability on the part of the Department of nature, because our hope for the peace It is true that nearly 100 percent of our Agriculture and the Commodity Credit and progress of tomorrow's world must production industrially is for the home Corpol:{ltion to deal with the sterling bloc lie in world-wide amity and cooperation; market. · Over-all, about 110 percent of and the exchange which is now in vogue, I am suggesting rather the strengthening our gross agricultural production is used I might say, in India, but he said that if and advancement of OlJ.r mutual ideal here, which means that we had a net im and when the proposed loan shall be ap isms so far as individuals and govern portation of agricultural products before proved by Congress he believes-and I ment are concerned, and that by such the war of somewhere around 11 percent, certainly concur with him from a cotton common effort the opportunities for self but of certain products we do produce standpoint-that there would be an im determination and self-government of substantial surpluses over and above our mediate. request for surplus cotton we others who may be suppressed will be domestic needs, and these products, such may have in the years to come, or that extended. We are committed to this re as wheat, corn, cotton, and meat and we may have now, for the shipment im sponsibility of advancing human rights. their surplus problems, are vitally impor mediately of more than 100,000 bales of I discuss this political consideration, tant to our economy and to a high degree American cotton to India, to be used to Mr. President, because I feel that in the of prosperity of the whole farm plant. help clothe the people of India. . y~ars to come political unity in thought In agriculture and in industry it is the As the Senator well knows, India is the and ideal among the stronger nations of ability to. dispose of surpluses over and second largest cotton-producing country the world must be an attainable goal and above domestic needs that usually sets in the world. So when it was suggested must be based upon human individual the price and measures our ability to that the loan would adversely affect cot rights. One of the great co:'ltributing maintain a dynamic economy. ton, I said I thought it ·would not, and I causes of World War II was that the If restrictions on world trade are freed, take this opportunity to congratulate and forces of oppression, power politics, and we will have more chance of finding mar commend the distinguished Senator from conquest were permitted to unite them kets for such surpluses as we may not Iowa, who knows the Midwest section, for selves while the nations that really be rieed here than under restrictive bloc the statement he has made. I express lieved in enlarging individual rights and trading programs. the hope that when the loan shall be ap opportunities drifted away from a com Mr. President, there is another con proved, it will mark a new day in the dis mon unity of pur:';lose that might have sideration for the making of the loan or posal of surpluses of the great Grain Belt nipped in the bud or prevented the con the provision of the credit desired that I and the great Cotton and Tobacco Belt of flict. It seems to me that this drifting feel is most important. In fact, if it the South and Southeast. apart of the nations wit:ti ideals similar were not for this consideration and its · Mr. TAFT. Mr. President, will the to ours began with the closing of hostili importance, as I view it, I might not sup Senator from Iowa yield? ties af~er World War I while the union port a loan in the amount proposed and Mr. HICKENLOOPER. I yield. and growth of the aggressor and op under the terms suggested. It is a con Mr. TAFT. I do not desire to disap pressor nations began about that time. sideration that applies almost uniquely point the Senator from South Carolina, It is my hope that the c:i.ose association to the United Kingdom, so far as we are but under the agreement the sterling and the common purpose of the nations concerned, and I think it should be bloc will not have to be dissolved for 12 who allied themselves in this war to de weighed carefuly by all of us, for we in months after the passage of the joint feat the Axis Powers, for the preservation this country know that the sovereignty of resolution. So that it will be at least 15 of the ideals which we are determined to the individual is the basis for human months before the highly desirable re.:. advance, can be carried forward with in freedom. That consideration is broadly suit pictured by the Senator from South creased strength and vigor as the years political. Carolina can be brought about. go on rather than disintegrate, with the Mr. MAYBANK. Mr. President-- Mr. MAYBANK. While I realize that practical certainty that with such disin The PRESIDING OFFICER (Mr. TuN the United States does not need much tegr~tion, opportunitY for a new gather NELL in the chair) . Does the Senator export trade today, that we must furnish ing of the forces of destruction will be from Iowa yield to the Senator from supplies to our own country first, I am possible. The seeds of war are never South Carolina? looking· forward tf' conditions 5 years, 10 ~own just before shooting begins. The Mr. HICKENLOOPER. I yield. years, 20 years hence. shooting is only the harvest of the crop. Mr. MAYBANK. The Senator is mak Mr. BARKLEY. Mr. President, will The seeds are sown in the confusion and ing a most able and excellent argument the Senator from Iowa yield to me? often-in the selfishness of the disruptions in behalf of the export trade the pro- Mr. HICKENLOOPER. I yield. immediately following war. 1946 CONGRESSIONAL RECORD-SENATE 4279 We have just spent more than $300,- manently, in the installations which we mentioned that our Government would 000,000,000, probably nearer four hun · built and paid for in the hour of her dire be called upon to subscribe a single dime dred billion, suffered more than a mil distress, and I feel that these rights more than was provided for in the plans lion casualties, and have disrupted our should still be insisted upon and obtained there perfected. economy to win an armed conflict; as a matter of common equity; but that Under one of the plans provision was therefore, it seeJ;Ils to me, Mr. President, fault perhaps lies more with the short made for the so-called fund which was that we can well afford to hazard 1 per sightedness of our own administrators capitalized at $8,800,000,000·, and Con cent of this huge money expenditure in than with the British. We are faced gress voted that the United States an earnest effort to stabilize a great por however, with the necessity to act, Mr: should subscribe $2,750,000,000 to that tion of the economy of the world which President, and I shall not oppose this proposal. if even partially successful, will advance loan because in some details those who Under another of the Bretton Woods the cause of humanity and its comforts were charged with the stewardship of proposals the International Bank was and will especially bring to us a more American detailed interests were inept. created, and our country was called upon speedy return to the enjoyment of nor I shall support the loan, Mr. President to subscribe, and authority was given mal human comforts. in spite of those criticisms because i for it to subscribe $3,175,000,000, out of In conclusion, Mr. President, there are think it is the thing we must do in an a total subscription of $9,100,000,000. four reasons why I believe this loan attempt to further the establishment of In other word&, Mr. President, we have should be made. They are of varying a normal world and as one contribution obligated ourselves to place in the fund degrees of importance, but I believe that in our efforts toward a hoped-for lasting and the International Bank almost all add up to the one end that we hope peace. $6,000,000,000. Of course we do not need to attain and that is the accomplishment LEAVE OF ABSENCE to call on the fund or the International of long-range peace and the establish Mr. LA FOLLETTE. Mr. President, I Bank for any of that money for our ments of opportunities for human,prog own use. But we have obligated our ress and advancement. These reasons ask unanimous consent that I may be excused from further attendance on the s~l~es to that extent for the purpose of are, first, I believe, this loan is a contri aidmg other nations of the world so they bution toward sowing the seeds of peace Senate today. _The PRESIDING OFFICER xertion will -wear us down. Give done about that. all of it was composed of weapons of us the tools and we will finish the job. Mr. President, when we obtained baux · war. It consisted of every kind of mer ite from British Guiana, South America, chandise, from a darning needle to a I shall never forget his speech at the in order to make aluminum with which locomotive. In many instances the . fall of Singapore, when he lamented to to mg,ke plapes to send to Brtain and civilian goods which were given to Great the British people and to the world the other nations, we had to buy it and pay Britain under lend-lease were sole.: by fall of Singapore. But oh, what a great cash on the barrelhead for it. If we de Britain to her own people, and the money victory he hao accomplished by helping sired to obtain British-controlled oil from which she received from the sab of those to get the United States on the same side northern South America, or Asia, we civilian goods-goods which were given · with the British. At that time the Brit again had tc pay cash for it on the bar Britain under lend-lease by the United ish, through their statEsmen, said, "All relhead. The British had in the United States-was put into the British Treas we need is materials. We have the men." States two shipbuilding plants which ury, and thus was saved her taxpayers. But it was not long before we were called were built in 1939. We desired to obtain I· do not know what the figures are, but upon to send the :flower of our manhood, possession of those two plants, which a very large percentage of lend-lease too. As I indicated a few moments ago, were built with British capital. Did which went to Britain was composed·of we had five armies on the western front Britain transfer those two plants to us civilian goods which were used by Britain to their one. on account of what she owed us? Oh, in that way. · Mr. President, I am not stating these no, Mr. President. We had to put up Mr. ELLENDER. Mr. President, the facts in derogation of the British or to fourteen or fifteen million dollars in cash statement which the distinguished Sena prove that they did not do their duty, in order to be able to obtain possession of tor from Colorado has made brings to but merely to offset some of the propa those plants. Then they talk about the my mind a letter which I placed in the ganda which has been circulating sacrifices, material and otherwise, which RECORD some time in 1942, as I recall, throughout our country, to the effect that were made by Britain, as compared or when we were asked to provide more the British won the war and saved the contrasted with those which we in the funds for lend-lease . . In that letter I United States, and therefore we ought United States made. I almost over was told by Mr. Stettinius, who then was to vote for the loan and thereby bail looked it. The British charged tolls for the administrator vf lend-lease, that them out of their financial trouble. using the Suez Canal, which she controls, to a considerable extent goods which Mr. President, the line of argument so that we could transport troops, ammu were sent across the sea to Great Britain which the British advanced back in nition, and other supplies so as to recon were used to sustain the civilian popu 1941, was, "Give us the tools. Give us quer some of her possessions in southern lation of Britain. None of us objected to the material and we wi:J. do the ·rest." Asia. that. But how were the goods handled? They are now coming to us, I repeat, and Mr. President, according to the last Mr. President, when food was sent to asking us to bail them out fror..1 an eco report on lend-lease-and please remem Great Britain, after it was delivered at nomic stalemate of their own making. ber that the money spent under lend the docks, a division of the British Gov I, for one, will not vote one dollar to per lease was spent by the United States Gov ernment took control of it, and it was petuate such a situation as that. I ernment in aid of our allies-the total then sold by the British Government to want America to use the instrument of amount was $46,040,054,000. Think of wholesale establi&hments in Great procedure of which I was speaking a. that! Britain. Those. wholesale establish while ago in an effort to render aid. · Of that amount, Great Britain got al ments in turn sold the goods to retail Mr. President, that the British made most 70 percent; the figures sbow that establishments in Great Britain. The great sacrifices no one will deny; but let of that total, she received $30,269,210,000. retail establishments in turn sold the us for a moment take a brief view of In reverse lend-lease we received four goods to the civilians of Great Britain what we did in aiding Great Britain by billion -and -some-odd-million dollars' and sold them at a profit. What did we means of lend-lease. I voted for lend worth, which was mainly in the nature of get from it? We got merely an I 0 U. lease and supported it ardently on the services, such as the cost of transporta An entry was made on the books that fioor of the Senate. Back in March 1941, tion of o"..lr soldiers across the seas, to the United States Government had that when lend-lease came up for discussion, and from this country, and some supplies day shipped several cargoes of beef, I made a speech in which I attempted to such as fresh vegetables, some clothing cheese, bread, and so forth to Britain. give our great President a little advice as and housing. If the shipments amounted to $2,000,000 to how I thought lend-lease should be I cite these things merely to indicate· or $3,000,000 worth, we were given credit handled. I stated to the President, in the sacrifices which we have made, in f-or it on the books in Great Britain; that that speech, that our country contained contrast with those which the British is to say, they acknowledged that they about 6% percent of the land of the have made, and in order more or less to owed that much to us. After that, as I world, as compared to the 28 to 30 per show up some of the propagandists who have said, the goods found their way cent of all the land in the world which is are writing to me and also other Senators, through the regular wholesale and re possessed by Britain. I attempted to stating· that we shoUld be ashamed of tail channels to British civilians. Upon show that the natural resources possessed ourselves for opposing the British loan, those goods profits were realiz2d by the by the British, irreplaceable God-given because of the great sacrifices which the wholesale and retail merchants who natural resources were 3% to 4 times British Nation made in order to win the disposed of them. Ad valorem taxes were more than those which our own country war and save America. Mr. President, paid on the goods. and income taxes as possessed, and at that time I begged of I know of no nation, except possibly Rus- sessed on the profits made from the sales 1946 CONGRESSIONAL RECORD-SENATE 4285 . were paid into the Treasury of Great about 30 percent. Is it the country's business, either one way or the other, Britain. debts? I believe it is, because the record ever since William the Conqueror took Mr. President, what did we finally re shows· that we in the United States to the British Isles in the year 1066. They ceive three or four months ago in repay day owe $278,000,000,000. Mr. President, have always been able to obtain pos ment of the thirty billions we advanced how inuch do you think the British Em session of land in one place, control in less than four billion in reverse lend pire owes? They control 30 percent of another, and then get other nations to lease? A cancellation of the whole the area of the world. They have at least help them to maintain their control and transaction. We gave to the British, I four and perhaps five times more natural what they have had. I am not going to repeat, $30,000,000,000 in lend-lease, and resources than has the United States. vote a red sou to enable Britain to per in the form. of services we received Their entire debt is only $133,000,000,000. petuate methods of that kind, which are $4,000,000,000. I do not have the amount That includes the debt of England, Scot inimical not only to the United States, before me, but I know that quite a quan land, North Ireland, Wales, Australia, but to the world as a whole. It is time to tity of vegetables were produced and sold New Zealand, Canada, and all the other br.eak the log jam. to some of our soldiers while they were British commonwealths and colonies. As I said nere day bef..:>re yesterday, stationed in Great Britain, and that elec In other words, our Nation today owes economic wars usually lead to shooting tric power was furnished to the camps $145,000,000,000 more than does the·Brit wars. Let ·us consider Bretton Woods, there. In addition to what we sent ish Empire. Yet, we are being asked to which I discussed a while ago, the plans through l~nd-lease, we spent millions of lend Britain more money. Why, Sena which were developed by 44 nations, and dollars in the Pacific on possessions of tors, today we owe $68,000,000,000 more which our great President said would Great Britain, Australia, and others. We than the combined debt of all our allies. cure the evils which followed in the wake spent millions of dollars in the British I include the British Empire, Russia, of a cruel war. Let us use those instru Isles. For all I know, it; has reverted to China, and all the other of our allies. Of mentalities and methods by which and them. Yet, Mr. President, some would course, Japan, Germany, and Italy are through which we can reestablish the say that we did not make sacrifices dur excluded from the calculation. We owe economy of most of the nations of the ing the war. Such propaganda does not $68,000,000,000 more than is .owed by all world. Let America be in a position to make me flinch at all. It is pure, un of them together. look Russia in the eye, to look China in adulterated propaganda. If we were to Mr. President, I will go a step further the eye, as well as all the other nations, consider all of the surplus goods which and say that, because of the conditions and say, "You have all been treated we left in the British Isles when the war which now exist in Germany, in Japan, . alike." ended, as well as the goods which were and in Italy, I am satisfied that there Taking that attitude, and doing things in the pipeline that is on the way, we could not be issued valid securities with in that way, we can maintain, we can would find out that they aggregate in a value equal to $68,000,000,000-that improve, world leadership. Today the value between $6,000,000,000 and $7,000,- being what we owe in excess of what is nations of the world are looking to 000,000. Did we receive any of it back? due by all the Allied Nations combined. America for leadership, and let us not I should say not. Those goods were sold For that reason I conclude that today give way in our attempt. at leadership to the British on their I 0 U's. Bztween our Government owes as much money as $6,000,000,000 and $7,000,000,000 worth of is owed by the remainder of the nations by trying to help one nation over ' goods, which were paid for here and sent together, yet the hat is being passed another, or a few nations as against to the British shores, were settled for around every now and then for us to help others. There is nothing that will more by Britain giving to us h.er I 0 U's in the this country or that country which may quickly destroy the effect of the United amount of about $640,000,000. And what be much better off financially than are Nations than for the United States to about cash? Did we receive any? No. we. show preference in helping one nation Only a promise and if and when we are Mr. President, it looks as though our over another. We cannot afford to do paid, we must expend that cash on British great country, for which we fought so such a thing as that. soil. We cannot get it from Great Brit hard in order to preserve it, is to be Today the Russians have little or no ain and spend it in the United States in penalized because it is progressive and confidence in the British. Why that is, helping some of our needy soldiers. We because it is made up of people who are I hesitate to say. Perhaps I could guess. may not use the money to build homes for progressive and who have a burning de If we should attempt to help the British soldiers. Oh, no. We must spend the sire to go forward. I want to see our in preference to the Russians, I am sure cash, when we get it, in the British col country preserved. I do not want it to that whatever enmity may now exist be onies. Yet, it has been said that we be destroyed. I do not want our econ iween us and Russia would be greatly in have not made sacrifices. In further ex omy to be pulled down by the British creased. The breach between us and pressing myself on that point, I shall Empire or by any other nation. We Russia is not great now, but it can be refrain from using the language which must preserve our economy, and I know · widened considerably if we make at comes to my mind. - of no better way to accomplish that than tempts to side with Great Britain, or, in Mr. President, there is another phase by remaining strong-financially and in fact, any other nation. If we aided of the issue which I should like to discuss every other way. Great Britain to the exclusion of other for a few minutes. I refer to our ability Mr. President, whenever the hat is nations, as is now being sought, the Rus to keep on dipping down into our Treas passed around for · the purpose of re sians would think we were doing it from uray in aid of Great Britain and other ceiving aid in a world cause, such as ulterior motives, and that would have a nations. There is a limit beyond which UNRRA and other worthy causes, we tendency to widen the little breach which no nation can go. I contend that we contribute in proportion not to our debt now exists between us. have made sacrifices undreamed of. at all. I do not know how it is figured I want the United Nations to function, During the war our people went all out. out, but of the entire ·fund which was to operate in an orderly manner, and the I should like to have any Senator-there spent for UNRRA in order to help starv nation which will make it go forward will are two or three on the floor at the pres ing people all over the world, we con be the United States of America. Let us ent time-tell me what is the yardstick tributed 70 percent. I do not mind that. not take any steps now or hereafter by which a country is to be judged in its So far as I am concerned, I would vote which will in any wise take away from ability to loan money to another country. for more funds in order to help unfortu us our place of leadership. We can lose What is it, Mr. President? Is it the size nate peoples throughout the world. But it overnight if we show preference for of the country's population? That can in bailing out countries and aiding them one nation over another-forming a bloc not be, because, of the population of the there is a limit beyond which we cannot here and a bloc there. Others would do entire world, we have about 5¥2 percent. ~o. and I am pleading with the Members likewise, and in that situation the United I believe that the British Empire has of the Senate to give consideration to the Nations would not be able to function. four or five times as much. Is it the ex proposed loan in the light of the effect it ne organization would simply die, just tent of the land owned, occupied, or con will have on our economy. as the. League of Nations died last month. trolled by a nation? It cannot be that, Mr. President, the British have brought I do not want that to happen. I voted for because in this country we own only ap about, through their own machinations, the United Nations, and I want to see proximately 6 percent of all the land in the conditions which now confront them. it prosper. I want the organization to. the world, and the British Empire owns They have had similar methods of doing ~erve as the instrumentality through XCII--271 4286 CONGRESSIONAL RECORD-SENATE lvlAY 1 which and by which all nations shall at_ will not try that method or any other also be competitors of Great Britain on tain permanent peace. method. the other side of the world, in the Pa Mr. President, I do not want to stand My challenge is this: Before we do cific, Java, Sumatra, Borneo, and many in the way of helping Britain if ·she needs what is now proposed to be done in the of the Pacific islands. So the British help as it is said she does. I am willing way of a loan, let Great Braitain sell us today are not in the position in which to increase the capital stock of the Ex strategic materials, and we will help her they were in times past. . Great Britain port-Import Bank at· any time so as to in that manner. I believe we could sell cannot say to a colony, "Just a minute. afford more money with which to lend much material to her on credit, and I We do not want you to establish manu- . to Britain and other nations. I am would be willing to advance some of the factories within your bounds. We are willing to increase our share of funds in raw products in this country to the Brit going to do all the manufacturing in the International Monetary Fund and ish in order to help her. But, Mr. Presi England. What we want from you is the International Bank provided for in. dent, I am unwilling to go the route that your raw products and we will sell back the Bretton Woods agreements. I want has been proposed by way of a loan. to you finished goods." She cannot say every nation in the world that needs help, Mr. JOHNSON of Colorado. Mr. that any more. Her shipping is greatly or is entitled to help, under the pro President, will the Senator yield? reduced. Her investments have not been posals, to be treated the same as other Mr. ELLENDER. I yield. totally depleted, but they have been re nations are in obtaining it. I do not Mr. JOHNSON of Colorado. I wanted duced very much during the war. want to give to one nation a chance to to be sure I understood the Senator's So my advice to the British is that, be borrow money for its rehabilitation argument. He said Britain could pay fore it is too late, the Brjtish Isles them through one method and then make a for goods bought by her for sale to us, selves in some measure should be different contract in the case of a pre with her silver. Does the Senator mean depopulated. Let her move some of her ferred nation. that she could pay it out of the assets of industry and her people from the Brit Another suggestion is that we grant the silver area? ish Isles. There should be a plan loans to Great Britain on good security Mr. ELLENDER. Oh, no. worked out whereby a part of the popu as we might wish to do for any other Mr. JOHNSON of Colorado. The lation of Great Britain could be shifted nation. I would have no objection to Senator did not mean that it be done from the British Isles to Canada, Aus that. with silver metal, did he? tralia, New Zealand, and South Africa. I understand that during the war Mr. ELLENDER. I am sure the Brit Furthermore, the industrial development Great Britain borrowed about a billion ish have in their possession sufficient of Great Britain should be curtailed. dollars or more· on securities of cor liquid assets in the nature of their own Many of her industrial plants should be porations which were organized and do currency to buy one-half million tons of moved closer to the raw products. In ing business in the United States. Of rubber in the Malay Peninsula, let us that way I believe she can survive. But that billion or billion and a quarter dol say, pay for it with her own currency my contention is that she cannot expect lars there is still a balance due of $200,- and sell it to us for dollars. to survive as a great manufacturing na 000,000. The stocks referred to are very Mr. JOHNSON of Colorado. The tion, in view of the fact that she is productive in the way of returns. They Senator meant that she could pay for· obliged to import the major part of her pay handsome dividends, and as Mr. Jesse it with sterling? food and the major part of the raw prod Jones pointed out in the editorial which Mr. ELLENDER. Yes; her own cur ucts she uses. appeared in the Houston Chronicle, rency. Mr. President, we have a great task be and already made part of the REcORD, Mr. JOHNSON of Colorado. The Sen fore us in the wake of this cruel war. We Great Britain has in this country today ator used the word "silver." The Sen have lost many fine boys and girls. assets aggregating $3,000,000,000. I ator meant ·"sterling." Many have come back without arms, would be willing to take some of those Mr. ELLENDER. Yes; that is what I without eyes, without legs. Many have assets as security, and I would be will had in mind. come back to find themselves homeless. ing to wager that some of our banks Mr. JOHNSON· of Colorado. That It is up to us to rehabilitate them. In in the United States would cheerfully makes it perfectly clear. this country one-third of our people are lend a few hundred million dollars on Mr. ELLENDER. Mr. President, I living in shabby homes. A large per some of the General Motors stock owned would make another suggestion. Great · centage of our population cannot obtain by Great Britain, and on the stock of Britain had better realize now, before it proper medical care. The States in many some of our other leading corporations. is too late, that she cannot expect to instances are unable to furnish such as throughout the United States. maintain her economy whole. That is sistance. We have the problem of giv Aside from the $3,000,000,000 of assets out of the picture. Great Britain at one ing more and better education to the which the British have in the United time was the greatest manufacturing children of our Nation. The South, States, Mr. Jones sa.id "It has been esti nation in the world. The only natural which produces more children per fam mated that the assets of the British in resources she had on the islands were ily than are born in other parts of the other countries than ours total $8,000,- considerable coal and some iron. She the country, is poor. Let us consider 000,000." Why cannot some of that be was able to import raw products from South Carolina, for instance, a _great used in order to safeguard and secure all parts of the world and in return sell State. The Senator now presiding over these loans? the finished products to the countries the Senate [Mr. JoHNSTON] comes from Mr. President, we could spend, and I from which she imported the raw prod the State of South Carolina. In that would advocate the spending of, as much ucts. In many instances, in the early State the ratio of adults to children is ~:~os $2,000,000,000 for the purpose of pur days, she used the "big stick" on her as follows: For 1,000 persons of age from chasing strategic materials for this coun colonies and forced them to give raw 20 to 65 there are 765 of age from 5 to 17. try. We need rubber. We need tin. We materials to her in return for her finished What do Senators think the ratio is in do not have natural rubber, nor do we product3. New York? The ratio of adults to chil have tin. We are dependent upon those But those days are over, as I stated dren of the same ages as those I gave resources which are in British and Dutch yesterday and the day before. The previously, is 1,000 to 410. In New Jer possessions. We need more oil. We have British Commonwealths have broken the sey it is 1,000 to 365. In California it is much of it, but I should like this country apron strings, as it were. They are out 1,000 to 260. to buy more and store it. We could buy for themselves. They are more inde Something must be done by our Gov from the British, and give the British pendent. They are fast developing in ernment 'in order to give proper educa dollars for from $1 ,000,000,000 to dustrially, and as a consequence the tion to the children in the poor States, $1,500,000,000 worth of strategic mate commonwealths have t r.ken much of because the children from the poor rials. In other words, the British could British trade away from her. Canada States when they mature become the use their currency with which to buy it, developed industrially immeasurably citizens of the Northern States, where and when the British sold it to us we during the last war, and she is going to people are not so prolific in having chil would pay in dollars. That would solve be one of the chief competitors of Great dren as we are in the South. much of Great Britain's problem. But, Britain in South America. As a result It is essential that something be done no. She has been so used to getting of their industrial development during by the Federal Government. Many bills something for nothing from us that she the war, New Zealand and Australia will on this subject have been proposed dur- 1946 CONGRESSIONAL RECORD-S:mNATE ing my incumbency in the Senate. This Downey Langer Robertson the best financial and commercial brains. Eastland Lucas Russell was one of the first problems which I Ellender McCarran Saltonstall 1n our Government. The various terms attacked in 1937 when I came to this Ferguson McCie'nan Shipstead of the agreement are interrelated. To body. But so far we have not been able Fulbright McFarland Smith adopt any of the proposed amendments Gerry' McKellar Stanfill to do very much. I am hopeful that we Green McMahon Stewart to this agreement would be the same as shall, because it is necessary to solve this Guffey Magnuson Taft to reject the agreement. We should problem. ' Gurney Maybank Taylor approve the agreement or reject it hon Hart Mead Thomas, Okla estly and frankly, but not by delaying it Take the question of hospitalization. Hatch Millikin Tunnell Three or four months ago a bill was Hawkes Mitchell Tydings or amending it to death. passed by the Senate which provided an· Hayden Moore W'agner I can well understand and sympathize Hickenlooper Murdock Walsh authorization of between $300,000,000 Hill Murray Wheeler with any Member of Congress when he and $400,000,000 over a span of 5 or 6 Hoey Myers Wherry is faced with the necessity of making dif years. That is a mere drop in the Johnson, Colo. O'Danlel Wiley' ficult and controversial decisions in an bucket. The situation will require more, Johnston, S. C. O'Mahoney Willis election year. Nevertheless, decisions Kilgore Pepper Wilson and more ought to be appropriated. · Knowland Reed Young must be made and I sincerely hope the So Mr. President, in our own Nation La Follette · Revercomb Senate will make a clear-cut decision in we have many problems which require The PRESIDING OFFICER. Eighty this instance. To put off consideration financing for their solution. Can we Senators having answered to their of this measure or delay it until after the afford to solve them if we must dig into names, a quorum 'is present. election next fall is equivalent to an ab the jeans of our people, who are now solute rejection, but without the honesty much overburdened, and make loans Mr. FULBRIGHT obtained the ftoor. of the latter. such as the one now proposed? No, Mr. Mr. HATCH. Mr. President, will the Mr. President, if the details of this President; we shall never be able to do Senator yield agreement are not as favorable or as wise that. 'The Lord knows that it is neces Mr. FULBRIGHT; I yield. as they ·should be, that is primarily the sary to solve many of these problems. I Mr. HATCH. Many statements have fault of our own representatives who for do not know how much will be ·required been issued concerning the British loan. 3 months struggled over this agreement to rehabilitate the soldiers of World War Yesterday I happened to see an excerpt here in Washington. It is intolerable for I and the soldiers of World War II. from the Washir..gton Letter of the Amer a great nation · like ours, to negotiate After every war we have fought so far ican Federation of Teachers, in which these important agreements and then we have paid pensions. We paid pen. the chairman of the organization's com have them picked to pieces by quibbling sions to Civil War veterans and also vet mittee on international relations, Selma over details. If ·-our technicians and erans who fought in the War with Spain. Borchardt, states the position of that or Cabinet members are stupid or unquali Just as sure as that I am standing here ganization on the loan. Because the fied, they ought to be fired and new ones a move will soon be made to pay pensions statement is so succint and direct, I wish substituted. The real question for us to to veterans of World War I and it might to read it. · decide is not one of detail, it is a question not be improper to vote for a proposal THE BRITISH LOAN of broad policy and that policy should of that kind if it ever comes before the There· is an obvious and essential comity not, and I hope will not, be a matter of Senate. The time will come when we of interests between the British and the compromise and amendment. shall need to help the millions of soldiers United States. There would seem . to be Mr. President, representing the United from World Warn by way of pensions. little need to develop this theme in our States in the negotiations with the British In housing alone we could spend sev group. last year were the Secretary of State, the eral billion dollars in order properly to An enlightened self-interest would prompt our support of the British loan, to assist our Secretary of the Treasury, Secretary of house our own people. So far as I am economic development and theirs as well, Commerce, the Chairman of the Board concerned, I would rether spend. the to make the tie between us material as well of Governors of the Federal Reserve Sys money here than in an effort to ball c;mt as moral. tem, and the Chairman of the Export another country and help her to mam The American Federation of Teachers Import Bank. Tbe experts of these var tain a system of her own creation which executive council has endorsed the proposal ious departments, of course, joined in the has caused the troulle in which she now for the British loan. consideration of the problem. Surely we finds herself. Mr. FULBRiGHT. Mr. President, in can assume that all these men are as Mr. President, I do not know of a following the discussion of the financial interested as we are in promoting the best rr -::.sure which I have ever considered, agreement under consideration in the interests of the United States. I think either in this body or when I was privi committee and here in the Semite, we are it is our function as Senators to decide leged to be a member of the Louisiana likely to become confused over the vast the basic policy of whether we are or are · legislature for 12 years, which has given amount of statistics that are brought in not to play a large role in rehabilitating me more concern than the pending pro to support some minor point as to how the world. In other words, we rightly posal. I have studied it from every angle. much.trade we may expect, or how much determine the broad policy of participa I have tried to resolve whatever doubts I money or· assets the British own. Our tion or nonparticipation, but it seems to had in favor of the British. But I can discussion is likely to bog down over the me that when it becomes a question of • find no reason why we should veer from complexities of international trade, how much should be loaned and the pre the crbit provided for in the several plans blocked sterling, and dollar pools al cise conditions of the loan that question ·which I have been discussing. We must though these details are but the trim is properly one for those whose experience follow the course laid out by us with the mings on the fringe of the main prob and knowledge have qualified them as help of other nations; and I for one am lem. As the Senator from Michigan [Mr. experts in international finance and for willing to help. But let .us treat all na VANDENBERG] so aptly put it, "it seems to eign political relations. tions similarly under similar circum me that there is a tendenc3• in some I believe that we should either with stances. quarters to so concentrate on details in draw into our shell and prepare for all Mr. JOHNSON of Colorado. Mr. respect to this joint resolution that .the out political and economic competition President, I suggest the absence of a larger, total concept is obscured-like with the other nations on a bilateral quorum. basis, or we should try to make Bretton The PRESIDING OFFICER ,000,000; or she paid a pose upon herself a rigid program, an austere about democracy simply from observing total in interest and principal, up td the time program, for years after the· war, that her the indecision and frustration within our o! the moratorium, of $2,000,000,000. people have been willing to accept, and a own system, and even, I might say, from Now, the total principal including the war country that has stabilized her exchange, a observing the practices of the Senate debts was four billion three. That is, the ~ountry that is carrying on her rationing itself and the way our debates on this total amount of money we let the British with success and fairness, a country that has measure are conducted. From the pres have, or goods we let them h:1ve, during the imposed taxes and has done a much better ent confusion, indecision in our own af war as well as the postwar, was $4,300,000,000. job of war financing than we have done, a Up to 1931, when this country granted a country where black markets and tax evasion fairs, it is not easy to see how we shall moratorium, she had actually paid us in dol are almost unheard of, shows a capa'lity for be able to escape with our liberties intact. lars two billion, or nearly half of the total government that is rare in this world. Nevertheless, I do have faith that some amount in dollars. Senator MILLIKIN. It shows basic char how we shall manage to pull ourselves Now, I don't think under the circumstances acter. together, get our bearings, and get back that that is a bad record, and I don't think Mr. EccLEs. It does. It shows a capacity to work. The only real fear that I have that Britain should be called a defaulter be that we should recognize, and we should be for the future concerns our relations with cause of that. I don't think that it should willing to help. We need that kind of peo the rest of the world. We have come to be made to appear that the British didn't in ple in this world. I think that the British a position of power and influence, with tend and didn't desire and didn't want to pay performance as compared with the perform their debt. M granted the moratorium, and ance of the continental countries and other relatively little experience or understand she paid the payments until we did grant the countries throughout the world is magnifi ing of world affairs. While we ardently moratorium. She did not default. We cent. When you take into account the prob hope that reason may prevail in the UNO, granted the moratorium. She might have lem that she had and the stress she was we cannot forget that power is still the defaulted if we had not, I will admit that, but under, this country can do nothing less, in arbiter of those affairs. If we withdraw a we granted the moratorium in this country. my opinion, than to give this financial help second time from that world; if again we I think there has been entirely a misconcep in this way. · disavow the representatives of our Gov tion of the British debts after the last war, Mr. President, another point which has ernment who have negotiated agree and it is something that isn't nearly as bad as the opponents of the British would make been raised-and it is a very important ments for us _with other nations, I think it appear. one-is the question of the debt of the it is inevitable that the world will lose citizens of the United States; in other faith in our responsibility as a great I shall skip a portion, a short exchange words, the internal debt of the United nation. There is no doubt in my mind which was in pursuit of the same sub States, which now is approximately that others will capitalize upon our de ject. I now r~ad the following: $275,000,000,000. I grant that this is a fault. Senator MILLIKIN. But we did not agree very serious matter. It is said that we Mr. President, I should like to men to take goods from Great Britain, and my owe a much greater per capita debt than tion, in passing, two or three miscel point 1s that-if it. is involved at all, and do the people of the United Kingdom; laneous points which have been re I am trying to get the weight- to ascribe. to it-my point is that Great Britain unilater but let me say that the far more signifi ferred to from time to time during the cant figures are for the per capita debt debate. One point is the constant re ally decided to quit paying. Now, does that have any bearing on this in relation to the income of the country. iteration of the default of Great Britain new loan? If we put up tariff walls again, I wish to draw the attention of the Sen on the debts of the First World War. I if Britain does not make the exports she ex ate to two points in the record. First, should like to read to the Senate a short pects to make-if, if, if-and the going be let me refer to page 299, which I am passage from tlie record of the hearings, comes tough, may we not consider that we afraid some Senators may overlook. It in order to call attention to that point. have a precedent in the picture for another gives the information which we should unilateral default? I shall read from page 251. There was have, and I wish to invite attention to an exchange between the Senator from Mr. EccLES. I would think definitely, if we considered it to our internal interest not one or two items to be found on that Colorado [Mr. MILLIKIN] and Mr. Ec page, in connection with the point that cJes, chairman of the Board of Governors to take foreign goods so that foreign coun of the Federal Reserve System. The tries could get dollars, whether we do it by we owe so much money-and it is true quotas or tariff or whatever way-if we would that we do. Senator from Colorado asked: co.qsider it in our own interest that we Mr. President, the table from which I I would like to have your observations on shouldn't take foreign goods, in preference shall read is to be found at page 299 of the weight that we should give to the fact to taking them and having the loan paid, the record of the committee hearings. that the British defaulted their World War I then the loan will default. We will make loan. the choice.· It will be noted that for the United Mr. EccLES. I wouldn't give it any consid States the public debt, in terms of the eration; absolutely none. I think that we Mr. President, another point to which percentage of the national income, was are largely responsible, in a. way, for that I wish to refer is that several Senators. 154 percent. These percentages are default. In the first place, Britain was a. as well as others, in opposition to the _based on 1944 figures, I believe. The 4292 CONGRESSIONAL RECORD-SENATE MAY 1 public debt of the United Kingdom was the Senator has read are not fixed. Very assurances of getting anything in return 290 percent of its national income-al likely they are accurate for 1945 or 1944. except the possibility of this vast loan most three times, whereas we owed a But, as time goes on, and as the national being used for the purposes of unlocking little more than 1% times our national income drops, the indebtedness will not frozen sterling which is now in the banks income. The public debt of Canada was drop. So the percentages which the of England. 166 percent of her income; for Australia, Senator has read are fluctuating per Mr. FULBRIGHT. The point which 223 percent, and for all of the British centage~. the Senator has made has been raised areas mentioned in the table it was 207 Mr. FULBRIGHT. I agree that there before. It was ra~sed during the hear percent. So, Mr. President, our debt is nothing permanent about the situa ings. I cannot lay my finger on it. One was not nearly so large as that of several tion. I once contended, and very few of the witnesses·who participated in the of the other countries mentioned, when agreed with me at the time, that we loan negotiations said that the question we consider the debt in relation to the should not reduce taxes while our in had been discussed. But what the Sena national income per capita. come was on a high level. If we are wise tor has suggested would be accomplished Mr. JOHNSON of Colorado. Mr. Pres we can bring down the size of our debt. by barter. The United Kingdom does ident, wili the Senator yield? How long we can maintain a reasonable not have within its borders any of the The PRESIDING OFFICER (Mr. HOEY prosperity may be a question. I believe materials which we need. Those mate in the chair). Does the Senator from we .should utilize the present period of rials belong, in part, to some of Eng Arkansas yield to the Senator from artificial-if we may call.it that-pros land's possessions, and also to the colo Colorado? perity to reduce our national debt. But nial possessions of Holland and Belgium. Mr. FULBRIGHT. I yield. · similar problems affect other countries. The · largest corper deposits in the Mr. JOHNSON of Colorado. Will the I understood the Senator from Louisiana world are located in the Belgian Congo. Senator tell us upon what years those to say that we owe so much more money Oil and rubbP.r are located in .Java, and calculations are based? than does any other nation that we can tin is located in Malaya. The difficulty Mr. FULBRIGHT. The print of the not afford to make this loan. I do not which the Senator experiences lies in table in the hearings is very fine and is believe that fact to be significant. I will , his assumption that the British have no difficult to read. admit that other facts can be presented. intention of repaying anything on the Mr. ELLENDER. Mr. President, those But the significant fact to me is in the loan. If the Senator accepts that are figures for war years. Our income relation of the debt to our income. Al theory-- was great in those years because during most e:very rich man or large corporation Mr. ELLENDER. I do accept it. that time we manufactured a great deal in this country owes a great deal of Mr. FULBRIGHT. If the Senator ac of material, and many of our manufac money. The poor devil may not own cepts that theory, he could insist, then, turers made large profits. much because he cannot borrow. on treating the loan purely as a gift. Mr. FULBRIGHT. It was my under Mr. JOHNSON of Colorado. The very We disagree on the fundamental integ standing, although I may have been large income was caused by the precipi rity, I should say, of the British. wrong, that Canada was also in the tate increase in thE:: indebtedness. The Mr. ELLENDER. The Senator must war. income would not have been so large if admit that the money wr... ich Great Mr. JOHNSON of Colorado. Canada the indebtedness had not been so large. Britain would receive under the proposed was in the war. In other words, the income is made up al loan would be used by the British to do Mr. FULBRIGHT. The war was one most entirely out of the increased in what? To buy raw materials, or at in which Canada, as well as ourselves, debtedness. least partly so, for tha manufacture of was engaged. Is that not true? goods which she expects to sell to some Mr. FULBRIGHT. There has been an of her possessions. Mr. ELLENDER. Of course, Canada's increase in wealth which has a taxable production was considerably expanded. Mr. FULBRIGHT. In the first few base. Whenever · money fs borrowed a years, yes. But what happens to the Mr. FULBRIGHT. Was not England bond is issued, and someone receives it. dollars? in the war? It represents an asset somewhere. The Mr. ELLENDER. Oh, I admit that Mr. ELLENDER. Yes; but our output real waste which occurred was not in the they will come back to us. of munitions-- debt, but in the consumption of our es Mr. FULBRIGHT. Will they come Mr. FULBRIGHT. The Senator's sential materials such as oil, steel, silver, back as dollars or as material? point is that we wer~ able to make more bauxite, and so forth. That very point Mr. ELLENDER. If the British really profit out of the war than England was was raised yesterday. One of the Mem desired to make what I would call a bar able to make. Am I correct? bers of the Senate said that we had ex gain with us whereby we could obtain Mr. ELLENDER. Yes; because we pro hausted our natural resources. I agree value received, why could not she obtain duced more. · Our output of steel, for that altogether too much of them has dollars from us by going to the Malay example, was 95,000,000 tons in compari been consumed. But the proposed agree Peninsula, which she controls, and to son to Great Britain's 15,000,000 tons. ment would not in any way accentuate Sumatra and Java, where there are lo Therefore, our profits were bound to be the situation. It is very evident that one cated large rubber plantations con greater. · of the ways by which to replenish our raw trolled by British capital, use present Mr. FULBRIGHT. No one is denying materials is through free trade. We British currencies to buy rubber and that this country does make and has would have an opportunity to procure oil other materials and sell them to us for made for many years greater profits than from other countries. I believe that the dollars? We could pile them mountain Great ·Britain has made. But the sig Senator from Wisconsin [Mr. LA FoL high. In that way, we would have at nificance of a person's debt is in rela LETTE] mentioned a great number of met least something of value in return for tion to his income. I venture to say als which exist in other countries. The the money which we would give to Great that most of the millionaires in New loan would be repaid through the availa Britain. That is the position which I York owe, on the average, more money bility of those materials. It is the only have taken. The Senator is arguing than I do. The large corporations of way, in the final analysis, that we can that we should dig down into our Treas this country such, for example, as the balance off the international indebted ury and allow Great Britain to use a vast American Telephone & Telegraph Co., ness. sum of our money for the purpose of owe more money than does my little Mr. ELLENDER. Why would not the trying to undo-- company in Fayetteville. The fact that Senator consent, then, to our acquiring Mr. FULBRIGHT. Mr. President, I we have a large debt has no significance from the British large piles of tin and thought the Senator from Louisiana whatever in the matter. With reference some of their rubber? The British could asked. me a question. However, if he to the proposed loan, if it is out of com go into the markets and, by using their wishes to make another speech, he will parison with our ability to produce, that own currency, purchase those materials have an opportunity to do so. He has is another question. from their own people, and we, in turn, already spoken 4 or 5 days. Mr. JOHNSON of Colorado. I was would give them dollars for it: We cer Mr. ELLENDER. No, no. seeking information. I am sure the Sen tainly would receive value for the ex Mr. FULBRIGHT. I beg the Sena ator will agree that the debt will remain penditure. But the method which is tor's pardon. large, even though our national income proposed here is to let Great Britain have .Mr. ELLENDER. I may have.spoken may drop. So the percentages which our own dollars without receiving any for 4 or 5 hours. 1946 CON_GRESSIONA:L RECORD--SENATE 4293 Mr. FULBRIGHT. I meant hours. I Mr. FULBRIGHT. Within the coun In presenting the agreement to the House did not mean days. That was a slip of try there is no problem. Britain can do of Commons, the Minister of F~nance empha the tongue. anything within the United Kingdom, sized the fact that making such a loan was not charity but good business. Canadian Mr. ELLENDER. I doubt if I spoke 5 but she cannot go to other countries and prosperity is dependent, even more than hours. use pounds. that of the United States, upon a high level Mr. FULBRIGHT. I apologize for Mr. ELLENDER. The point I am of exports. Britain has always been Can saying days. I meant to say hours. making is that the Malayan Peninsula ada's best customer. And so it is vitally im Mr. ELLENDER. Very well. is owned and controlled by Great Britain. portant to Canada that Britain should re Mr. FULBRIGHT. In the first place, She may not be able to go to Russia and sume her place as a great trading nation. the way these so-called blocked sterling get materials; she may not be able to go Because Britain has been for more than balances arose was by Great Britain do to Germany and get them. a century the world's greatest importing ing exactly the thing the Senator has re nation, the trade policies which she adopts Mr. FULBRIGHT. She cannot go to during the next few years wm· have a pro ferred to. They have done about all India and get them. found influence on world economy. If she they could do. They did it in order to Mr. ELLENDER. In her own country is able to get loans on reasonable terms support their armies, for example, in she can do what we are doing. from the United States and Canada, she India. They had armies which they had Mr. FULBRIGHT. Unfortunately, in will be able to afford liberal trade policies to feed and transport and clothe. They the United Kingdom there is no tin, or of the type reflected in the Bretton Woods did that by purchasing the local cur agreement. If she cannot get these loans, rubber, .or other raw materials we need. she will be forced intq bilateral bargaining. rencies, the rupees, and giving them That is why she wants this dollar fund. blocked balances in London. India has "Other allies have suffered enormous Mr. ELLENDER . . But there are such losses in their own countries," said the Min about $5,000,000,000 there, and they materials in the British Empire, and ister, but none has borne the international are getting very tight. Those are equiv England can obtain them from her pos costs that Britain has borne. None is faced alent to loans, as a practical matter. sessions and sell them to us for dollars. with the same tremendous problem of re The British Government has already adjustment in the balance of their inter borrowed from these other countries Mr. FULBRIGHT. Mr. President, national payments. Alone among the practically $14,000,000,000. there is one further point which I wish Allies, Britain has suffered as a result of That is all blocked sterling means. to mention, and that is Canada's con the war a great deterioration in her external Great Britain borrowed the money from tribution. I ask unanimous consent to :financial position. And now, in addition, have printed in the RECORD at this point she must borrow huge new sums in order these other countries, and there it is. to embark in peacetime upon the trade The Senator is only saying, "Go on and as a part of my remarks an article en titled "Canadian Aid; Loan to Britain policies which are so important to us." borrow some more." It is understood that British negotiators Mr. ELLENDER. No; that is what the Passed in Ottawa." The article was written by Janet R. Keith. It is along came to Canada hoping for an interest-free Senator from Arkansas is saying-let loan. But the terms of the Anglo-American England borrow more. What I am try the same lines as the statement in the agreement had set a precedent which Can ing to say is that she could use her own record of the hearings on page 242. ada could not ignore. Had Quebec mem currency and buy from her possessions There being no objection, the artiCle bers decided to vote solidly against an in- raw materials which we, in turn, could ·was ordered to be printed in the RECORD, ' terest-free loan, it might have meant a buy from England for cash-dollars. as follows: split in the ranks of the Liberal Party. CANADIAN Am When terms of the agreement were made Mr. FULBRIGHT. She cannot buy in public they were considered reasonably sat other countries with her currency. The (By Janet R. Keith) isfactory in Britain. British pound is not acceptable even in LOAN TO BRITAIN PASSED IN OTTAWA The new agreement brings the financial India. She has to buy rupees with O'I'TAWA.-Canada's House of Commons has aid given by Canada to Britain during the pounds. She cannot just take a British passed almost unanimously a bill providing war to over $5,000,000,000, a sum consider pound and go anywhere she likes and for a loan to Britain of $1,250,000,000. It ably greater than that of the proposed buy. We will not take them here. is the biggest loan ever made by Canada to United States loan. The amount is made another country. On a basis of national out up of $2,000,000,000 in mutual aid (Cana Mr. ELLENDER. The Malay Penin put, it represents a commitment proportion dian version of lend-lease); an outright gift sula is owned and controlled by the ately seven times as large as the proposed of $1,000,000,000 made during the war; the British. United States loan to Britain. Only four $700,000,000 interest-free loan made in 194.2; Mr. FULBRIGHT. The British Gov Quebec members opposed the measure. the new loan of $1,250,000,000; and cancella ernment does not own it. The terms under which the loan is being tion of the $425,000,000 owed by Britain on Mr. ELLENDER. It is a possession of made are very similar to those contained in the commonwealth air-training agreement. the British. They have control of it. the Anglo-American agreement. The in In addition to the new agreement with The British Government is in charge. terest rate will be 2 percent, with repayment Britain, Canada has made loans to other covering the 50-year period after 1951. countries to help them finance their pur Mr. FULBRIGHT. Great Britain does There is the same provision for waiver of chases in Canada. Under the terms of ex not own the raw materials. I would say interest in any year during which Britain's port cr~dit legislation passed in '1944, sums that if we assumed there was the same exports fall below her prewar level of imports. totaling more than $600,000,000 (at inter kind of government Russia has, if Britatn The main difference between the Canadian est from 2 to 3 percent) have been advanced had the same relation to the properties and American loan agreements is that Can .to Belgium, China, Czechoslovakia, France, in Malaya that Russia has to its re ada makes no demands on Britain regarding the Netherlands, Netherlands East Indies sources, there might be something to the settlement of accumulated wartime sterling Norway, and Russia. Canada considers that Senator's argument, but Britain does not balances. The United States conditions re the loan to Britain, together with these garding exchange controls and import re smaller loans to other countries, forms the have that relationship, and I do not strictions are covered in the Canadian agree cornerstone of her plans for international think she could confiscate property. She ment by a general most-favored-nation trade and reconstruction. By lending did confiscate to some extent shares clause. It is recognized that some clauses abroad now, she hopes to insure a high do which were private shares and which did of the agreement will have to be renegoti mestic level of employment and income in not belong to the British Government. ated if Congress fails to ratify the proposed the future. Mr. McMAHON. Mr. President, will United States loan. the Senator from Arkansas yield? In addition to making available $1,250,- Mr . . FULBRIGHT. In a letter from Mr. FULBRIGHT. I yield. 000,000 of new money, the Canadian agree Secretary of Commerce Wallace there is ment with Britain ·embraces a settlement of a brief condensation of a statement in Mr. McMAHON. I should like · to ask certain outstanding debts. Canada cancels the Senator from Louisiana if he is sug outright an amount of $425,000,000 owed a pamphlet entitled "The Impact of the gesting that England should run ·the by Britain in connection with the Common War on Civilian Consumption in the printing presses and print more pounds, wealth air training plan. By a cash pay United Kingdom, the United States, and and go out and try to buy with them? ment of $150,000,000, Britain will settle all Canada." This was a report by a special Mr. ELLENDER. No; I am not sug claims and counterclaims which have arisen combined committee of the combined between the two countries as a result of the Production and Resources Board, on gesting that. Certainly today there is in war. A loan of $700,000,000 made by Canada the possession of British sufficient cur to Britain in 1942 will continue to be in nonfood consumption levels. Of par rency. They have money, just as we terest-free until 1951; before that time the ticular significance are five brief para have money. How do we get materials? two governments will confer regarding in graphs in the letter from th~ Secretary How does our Government get materials? terest rates and terms of repayment. of Commerce, condensing the significant 4294 CONGRE.SSIONAL RECOR:O-SENATE MAY 1 parts of the report. I wish to read them GOVERNOR OF THE VffiGIN ISLANDS ple of the Virgin Islands who are immensely at this time : The legislative clerk read the nomina Indebted to him. 1. During the 3-year period from 1942 to tion of William H. Hastie to be Governor This is indeed -edifying. For in his 1944, more 'than 50 percent of Britain's na of the Virgin Islands, which nomination own country and among certain few of tional income was· used for the prosecution had previously been passed over. his own people, Governor Harwood has of the war. In the same period, the pro Mr. ELLENDER. .Mr. President, I do ·become the target,· even the victim, of portion in the United States was about 45 those who, moved either by ambition or ·percent. Since Britain was at war 2 years .not wish at this time to say anything before we were, the figures for total war costs .against Judge Hastie except that I think envy, would becloud an indelible record are still more striking. By the end of 1944 the President made a very serious mistake of achievement . . Britain had put into the war effort eco in selecting a colored man to be Gover Notwithstanding this unimpeachable nomic resources equivalent to nearly 2.5 nor of the Virgin Islands, because I be record, it remained for the new Secretary t imes her 1944 national income. ·United lieve it will retard the progress of those .of the Interior, Mr. Krug, but a few days St ates war expenditures at the same dat e islands in their effort to develop a haven old in office, to question the ability and had totaled an amount equal to about 1.3 for tourists. the fortitude of a man whose virtues in times our current national income. these directions made him in the eyes of 2. Between 1938 and 1944, Britain reduced I desire to say a few words in behalf her investments and became subject to of my good friend Governor Harwood. the people he helped emancipate the claims-largely the so-called sterling bal Mr. President, our insular policies have best governor the islands ever had. ances-t o su ch an ext ent as to reduce her often been the subject of criticism by On March 28, 1946, in connection with net foreign assets by £3,916,000,000 ($15,800,- those whom we have sought to· govern. certain testimony before the subcommit 000,000) as a means of p aying for overseas re Exceptions to this critical attitude are tee of the Committee on Territories and ·quirement s without devoting resources, deserving of examination for what light Insular Affairs which was examining the needed in the war effort, to the production fitness of William Hastie to succeed Gov of offset ting exports. The reduction in the .they may shed on future relations with net foreign asset position uf the United our island possessions. .ernor Harwood, Secretary Krug parroted States was $1 ,800,000,000 resulting from the Notable among these exceptions is the an old slander in commenting upon the building up of dollar balances in favor of case of our recent policy in the Virgin ·administration of Governor Harwood. foreign creditors. .Islands. According to the record, a free Mr. Krug, under questioning by me, 3. Through the curtail!llent of replace press, the people of these islands are, at stated that Governor Harwood "did not ments and repairs and t hrough the depletion last, "visualizing a community lifted out spend very much time in the islands, did of inventories the civilian industrial assets of its sixteenth-century existence and not show a very aggressive interest in of Britain were reduced between 1940 and placed on a plane compatible with mod getting its economy on its feet, and that 1944 by £885,000,000 - ($3,600,000,000). Dur is all I know about Governor Harwood." ing the same period the reduction in this ern living." country was five and seven-tenths billions. That quot2tion is from an editorial in When asked where he obtained such in ·These drafts on capital represented 12 per the Virgin Islands magazine of February formation, he stated that it came from cent of t h e British n ational income and 8 2, 1945, on the occasion of a great tribute -the records of the Department of the percent of the Unit ed S ~ ates national in to an American citizen who was hailed Interior. Mr. President, who do you sup come. · , on that day as "the man of the year" and pose built up such a record-the people 4. In addition to the capital items referred the "best Governor the islands ever had." of the Virgin Islands, whom Harwood ·to in 2 and 3 above, Britain suffered bomb has put on the threshold of a new era, damage which has been estimated at £1,200,- I refer to the retiring Governor, Charles 000,000 ($4,800,000,000). Harwood, whose vision; patience, and or the former Secretary of the Interior, 5. During the war the civilian consump persistence lifted that community out of "Honest Harold" Ickes, the same old tion level in Britain, measured at prewar a "sixteenth-century existence." .pious hypocrite who for the past several prices, decreased by about 16 percent. In Those accolades were bestowed on years has been making every effort to ·the United States there was an increase of Governor Harwood slightly more than remove Governor Harwood. about _the same percent age. 1 year ago, when the people of the Virgin Whom are we to believe? There are Mr. President, I conclude by saying -Islands under their Government declared some who are not fooled. One of these that this agreement is a gamble. The -a legal holiday known as Harwood Day. is 'the local Virgin Island press, which risks are great, but I believe that the That celebration honored him for his gave pause to again honor Governor Har risks involved in not making the agree faithful duties over a period of 4 years, wood 1 year after the day when the bands ment are much greater. After careful culminating in the authorization by turned out to play. With keen percep consideration of the risks of the two al Congress of $10,000,000 toward a public tion that press stated: ternatives I have concluded that this works program which now is under way, Whet her Governor Harwood voluntarily re agreement is for the best interests of this and which, according to an editorial in signed as Governor or whether he was dis missed as the end result of his internecine country, and I shall vote for it. the Virgin Island Photo News of Janu feud with Secretary Ickes is indeed a moot . EXECUTIVE SESSION ary 8, 1946, puts the community "on the question. One view is t h at the Secretary of threshold of the greatest era in history." the Interior, who had been gunning for the Mr. BARKLEY. I move that the Sen Sentiments of this nature·, and even Governor's scalp, has met with success after ate proceed to the consideration of ex more fulsome ones, have come from the more than 4 years. ecutive business. people of the islands and their accred The motion was agreed to; and the There is the obvious answer which Mr. ited social, civic, and labor organizations. Krug culled from the so-called records Senate proceeded to the consideration of With complete unanimity these organi executive business. of the Department of the Interior. If zations have attested to his statesman Mr. Krug possessed a real passion for re EXECUTIVE MESSAGES REFERRED ship in improving the lot of the islands' sea:r:ch he could have gone back to a pub The PRESIDING OFFICER

UNITED STATES PUBLIC HEALTH SERVIClll Isaac William Ott, subject to examination . Let the people praise Thee, 0 God; ~et _APPOINTMENTS AND PROMOTIONS IN THE REGULAR required by law. all the people praise Thee. SERVICE Edward Holmes Underhill Trenholm Jones Meyer, subject to exami 0 let the nations be glad and sing tor To be senior assistant scientists, effective nation required by law. 'joy: for Thou shalt iudge the people - date of oath of office William Pryor Sloan, subject to examina- -righteously, and govetn the nations 'Raymond Fagan William J. Bowen tion required by law. upon earth. George A. Hottle Falconer Smith George Frost Kinzie · Let the people praise Thee, 0 God; let Samuel B. Salvin Albert Boyd all the people praise Thee. To be sen ior assistant surgeons, effective James Wayne McCauley Then shall the earth yield her in date indicated· Edward Harrison Alexander Frank Alton Armstrong, Jr. crease; and God, even our owri God, shall Edwin D. Merrill, March 25, 1946. bless us. Vernon G. Guenther, October 8, 1945. William Albert Matheny Manrico A. Troncelliti, February 8, 1946. John Patrick Kenny God shall bless us; and all the ends of Herbert Tabor, January 1, 1946. Reginald Franklin Conroy Vance, subject the earth shall fear Him. ~o examination required by law. To be senior assistant sanitary engineer, William Lecel Lee Let us pray: effective January 30, 1946 Haywood Shepherd Hansell, Jr. Our Father, which art in heaven, Paul Mueller Jacobs Donalg. L .. Snow hallowed be Thy name. Thy kingdom To be temporary medical director Dudley Durward Hale Herbert Leonard Grills come. Thy will be done, in earth as it Franklin J. Halpin Benjamin Scovill Kelsey, subject to exam- is in Heaven. Give us this day our daily To be temporary surgeons ination required by law. bread. And forgive us our trespasses, as Eugene J . Gillespie Robert W. Biach Thomas Lee Mosley we forgive those who trespass against Charles W. Parker Frederick K. Albrecht Raymond Lloyd -Winn us. And lead us not into temptation, Carlton H. Waters Alfred H. Lawton Leonard Franklin Harman, subject to ex- but deliver us from evil. For Thine is John..L. Lincoln Marion B. Richmond amination required by law. Kingston Eric Tibbetts · the kingdom, and the power, and the Clarence B. Mayes Glen E. Ogden r;lo_ry forever. Donald W. McNaughton Richard Henry Lee Robert Wilson Stewart Amen. To be temporary _senior assistant surgeon Lewis R. Parker Robert E. Staff William Maurice Morgan The Journal of the proceedings of yes To be temporary senior dental surgeon Richard Irvine Dugan terday was read and approved. Edwin. Minor Day George A. Nevitt Jack Weston Wood MESSAGE FROM THE SENATE To be temporary dental surgeons James Herbert Wallace A message from the Senate, by Mr. John C. Heckel To be major, Medical Corps Frazier, its legislative clerk, announced Joseph E. Unsworth William Warren Roe, Jr. that the Senate had passed, with amend To be temporary senior assistant dental To be captain, Medical Corps ments in which the concurrence of the surgeon Wayne Peter Beardsley, subject to exam House is requested, a bill of the House Stanley J. Ruzicka ination required by law. of the following title: IN THE ARMY To be colonel, Veterinary Corps H. R. 3755. An act to establish an Optome try Corps in the Medical Department of the APPOINTMENTS, BY TRANSFER, IN THE REGULAR Frank Marion Lee ARMY OF THE UNITED STATES United States Army. To be chaplain (lieutenant colonel), United To Adjutant General's Department · States Army The message also announced that the Maj. Clifton Coleman Carter James Hugh O'Neill, subject to examination Senate agrees to the report of the com Maj. Luther Gordon Causey . required by law. mittee of conference on the disagreeing To Corps of Engineers votes of the two Houses on the amend To be major, United States Army ments of the House to the bill

SENATE MAY 1 the PRESIDENT Pro Tempore Ap­

SENATE MAY 1 the PRESIDENT Pro Tempore Ap