February 17, 1969 EXTENSIONS OF REMARKS 3561
EXTENSIONS OF REMARKS THE RACE TO THE MOON Space experts say that unless we are will ing from one table to another, looking at a ing to maintain a stable, continuing space large book on each of two tables and shaking program in the coming decade we stand in his head. The Keeper looked and saw that his HON. GEORGE P. MILLER danger of squandering the $32 billion already smart monkey was reading Darwin's "Origin OF CALIFORNIA invested in the U.S. space program. of the Species" on one table and the "Holy Werner von Braun, director of the Mar Bible" on the other. The Keeper then asked IN THE HOUSE OF REPRESENTATIVES shall Space Flight Center, recently predicted the monkey why he kept shaking his head. Monday, February 17, 1969 the U.S. budget reductions will permit the The monkey replied: I'm trying to find out Russians "to fly rings around us in space in if I am my brother's keeper or my keeper's Mr. MILLER of California. Mr. Speak a period of five years." He contended it would brother." er, just before the epoch-making fiight take steady spending of $5 billion to $6 bil The moral for the evening is that back of Saturn V around the moon, the Oak lion a year for the U.S. to pull even; pro here in the State of my birth, Iowa's Gov land Tribune published an editorial en grams costing only up to $4 billion "simply ernor's Committee knows that it is both it's titled, "The Race to the Moon: Will It guarantee our falling back." brother's keeper and it's keeper's brother. End There?" which I insert as a part of Our space program has already contributed Iowa also knows that where the employment enormously in such specific areas as im of the handicapped is concerned, it is no these remarks. proved world communications, weather fore monkey business, but serious business in The publisher of the Oakland Tribune casting and reconnaissance. It has also pro deed. Naturally, I am pleased to be with you is the Honorable William F. Knowland, duced vast but perhaps more nebulous con and am even more appreciative in view of former Republican leader in the Senate. tributions to the advancement of scientific the switch from December to January when Perhaps this has given him a more in knowledge in general and to maintaining my schedule got rather complicated. timate picture of the space effort than a higher standard of living. In preparation for my visit, I asked Larry many of his colleagues in the newspaper And, perhaps most importantly in view of Volin what he thought I should talk about the Soviet Union's strong military space since Iowa. is one of the States assigned to field. program, our own efforts have maintained him for staff liaison. Well, I am seldom at a The editorial follows: our national security on one hand whiie in loss for words, but I must admit to having THE RACE TO THE MOON: WILL IT END THERE? creasing chances of world peace on the been overwhelmed by Larry's response. In This coming Saturday-if all goes well other. fact, he gave me a two and one-half page three American astronauts will leave our Because of the awesome capabilities for memo which ranged from the superlative plar.et, therein fulfilling one of mankind's good or evil offered by the control of outer almost to the supernatural in praise of Iowa. oldest and heretofore most impossible space, the former momentum of our space Let me share with you the first four para dreams. program should be restored by the incom graphs of Larry's prose eulogy of Iowa. Here The approaching manned flight of the ing administration in Washington. If the goes: Apollo 8 spacecraft 230,000 miles to the upcoming Apollo 8 flight does no more than "Prepare yourself for a wonderful experi moon-followed by 10 orbits just 70 miles dramatize t h at fact, it will be a success. ence. There is no Governor's Committee that above the moon's surface-represents man's compares with the one in Iowa. Iowa has a most distant and dangerous venture into terrific program. Iowa mixes hustle, initia space. tive, drive and desire in equal parts to achieve And, it also represents a spectacular come WORKING TOGETHER - ADDRESS some interesting results. back from that day in October, 1957, when BY Wn.LIAM P. McCAHILL, EX "For instance, last year the Iowa State Em the Soviet Union opened the space age with ployment Service placed 6,738 handicapped ECUTIVE SECRETARY, PRESI people. Last year the Division of Vocational the launching of Sputnik I. DENT'S COMMITTEE ON EMPLOY Circling the earth every 96.2 minutes, the Rehabilitation prepared 3,139 persons for 184-pound Soviet satellite reminded Ameri MENT OF THE HANDICAPPED employment. This is a good record for this cans for three months that the Communist State since it is almost 50% rural. One of the world had scored the first major technologi keys to the success is the inter-agency co cal triumph in the new frontier of space HON. HAROLD E. HUGHES operation. You will notice an absence of and one the United States could not then OF IOWA criticism of the Employment Service by the match. IN THE SENATE OF THE UNITED STATES DVR and vice versa. They work very well Now, although precise comparisons of the together. relative positions of the two nations to the Monday, February 17, 1969 "In fact, cooperation from employers, or space race are impossible because of Soviet ganized labor, the medical profession, civic Mr. HUGHES. Mr. President, Mr. Wil groups, employer organizations and other secre~y. there is ample evidence the United liam P. McCahill, Executive Secretary of States may have taken the lead, at least in groups is another key to the success. the President's Committee on the Em " As for the Governor's Committee, it is the race to reach the moon. ployment of the Handicapped, spoke If the Apollo 8's crew-Col. Frank Bor employer-oriented and Chaired by an em man, Major William Anders and Capt. James recently at the awards banquet of the ployer, Richard Hopkins, a barrel manufac Lovell-prevail over the perils and uncer Governor's Committee on the Employ turer from Davenport, Iowa. He has anum tainties of the moon flight, the United States ment of the Handicapped, held in Des ber of ideas and gives tremendous leader wlll remain well within reach of achieving Moines. His remarks indicate the intense ship to the program. But his leadership po the 1970 target date set by President Ken interest of the people of my State in the sition does not stop Hopkins from being a nedy in 1961 for a manned landing on the worker for the handicapped. He practices employment of the handicapped, and the what he preaches, he hires the handicapped moon. It could come as early as next spring need for continued progress in this area or summer. in his business." Paradoxically, as the climax of America's throughout the country. I commend his Unfortunately, I don't get reports like that greatest space feat approaches, the nation is thoughts to the attention of Senators and often enough, so it is a joy to be with you, divided over the future of the space program. ask unanimous consent that the speech to chat with you about some of the problems The National Aeronautics and Space Ad be printed in the RECORD. and promises of tomorrow and to pay you a m inistration's budget for the current fiscal There being no objection, the speech very sincere tribute for what you have done year is slightly under $4 billion, the smallest to date. In doing so, I believe it only fair was ordered to be printed in the RECORD, that I again quote Larry Volin; this time a since 1963. The space budget essentially has as follows: been a victim of higher priorities given the sentence from his wrap-up summary guid war in Vietnam and problems in the cities. WORKING TOGETHER ance paper to me. He said, "we cannot forget While the moon program has been gen A bit late, but nonetheless sincerely, I the work of Evelyne Willines, that human erally unaffected by budget cutbacks, other greet you with "Gung Ho Sun Hay," which dynamo, who has staffed the Committee and future projects have already suffered dras is Chinese for "Happy New Year." I use the who has helped spark it so that it has ac tically. Budget cutbacks have reduced em Chinese language not because I understand complished so much in so short a time." ployment among space contractors from any other words than the ones just used, but As an Executive Secretary myself, I am about 420,000 in 1965, the peak year, to an because this New Year in Chinese commu well aware that we are supposed to work with expected 200,000 by July 1969. Some plants nities and in Viet Nam has ushered in the and through people so that what is ac and test centers have curtailed operations. "Year of the Monkey." And, as you might complished is the result of cooperative and Future orders of Saturn V and Saturn 1-B now suspect, I want to tell a. story about a. volunteer efforts. rockets have been discontinued, and work monkey-a story with a moral for our times. However, executive secretaries, whether has been cut back on the nuclear rocket en A Zoo Keeper is a lonely man with time on from Washington, D.C., or from Des Moines, gine by which engineers hope to conquer his hands and so our Zoo Keeper trained his Iowa, are human and we do appreciate some deep space. Plans for a manned flight to smartest monkey to read and to jabber in one taking the time to notice we are around Mars were shelved in favor or an instru English. One day the monkey got out of his and that perhaps we might have had some mented flight in 1973. cage and was found in the zoo library jump- thing to do with what happened. That's only 3562 EXTENSIONS OF REMARKS February 17, 1969 fair, because I can assure you that we sud handicapped in business, industry and on During the discussion which followed pres denly become noticed when nothing happens farms should be surveyed, and business and entation of the report, we agreed that the or when something happens wrong. So, a industry outside the area. should be made staff would carefully study the reports fo:r salute to our gal, Evelyne, whose son once aware of the advantages of locating in your the States assigned to them and that we misnamed her proudly as "a professional community. would try to increase our travel program to cripple." She's certainly a pro, but I have yet At this point in time, it appears that Iowa respond to requests. The idea of rating State to notice that disability slows her down will be taking the lead and setting the way Committees did not particularly appeal to much. The only time I can recall was when for others to follow since it is the first to me or to others, but we are willing to have we had a sudden eight-inch snowfall in name a Rural Areas Subcom.mittee headed them rate themselves against an objective Washington a year ago last November and I by Mr. Keith Dunton. I wish you success standard prepared from a study of the best suddenly became a chau1Ieur for Evelyne and and pledge the President's Committee com State and local programs we could find. In Anne White of Hawaii. Evelyne is quite plete support and assistance in every way the discussion of job descriptions, one State accustomed to snow, but Anne and Washing possible as you work with Mr. Arden H. Chairman strongly recommended a suggested ton weren't, so Harold Russell and I drove Newell who is State Director of the Federal term for the Chairman to provide for the the girls to and from a Statler luncheon while Housing Administration here and Chairman principle of rotation among volunteers. the rest of the Chairmen and Secretaries of Iowa's Technical Action Panel. We had a long discussion about whether rode a chartered bus. To begin with, our Executive Committee or not we should emphasize the physically I'd like to tell you about our recent Execu meeting last month reviewed the current handicapped only during National Employ tive Committee meeting, about the final re transportation situation as it affects the the Physically Handicapped Week. The Com port of the Evaluation Committee on State handicapped. The San Francisco Bay Area mittee rejected the suggestion, but empha Relations and about our plans for a Youth Transport has agreed on a system that will be sized no doorease in service to the physica.lly Committee. But first, let me say a few words designed and built for occupying the needs handicapped while also serving the retarded about our plans for a Rural Areas Committee of the handicapped. The Department of and restored. We also had a suggestion that since it is engaged in three pilot projects and Transportation has a one-year study under we consider naming a blue-ribbon commit one of the States selected is your own tall way to determine the transportation needs tee of former Handicapped Americans of the corn State of Iowa. of the handicapped. Preliminary results in Year to consult with u.s and advise us on The President's Committee, as you may dicate that 20% of the non-working handi the problems of the handicapped as they know, has given the Rural Areas Program a capped interviewed indicated that transport saw them from their very successful profes very high priority for the coming year. Iowa was a factor in their unemployment and sional viewpoints. wlll will help provide guidelines for other half of this group said they would go back to As a part of our semi-annual Executive States to follow. work if the problem could be solved. About Committee meetings, I am now required to AB the Iowa Rural Areas Task Force study 60% need some kind of mechanical aid in give a report of signiflcant developments ing needs of the handicapped points out, the moving distances longer than one block. The that have occurred since the last meeting problems of the rural handicapped are many Department of Transportation has found, not and to point ahead to what might be ex and of long standing. They are isolated in surprisingly, that institutional resistance to pected in the immediate future. I have di most cases and have neither the proper serv change "is as significant a barrier as public rected that copies of this report be shared ices or opportunities for rehabilitation at ignorance or concern with the cost of adapt with State Chairmen and Secretaries on an their disposal. Transportation is a big prob ing the existing systems." information only basis and have supplied lem and job opportunities are few and far We also were reminded that the Federal your Iowa leaders with a copy. between and constantly dwindling. They ar& Aviation Administration has prepared an ad You might be interested 1n a few high the "people left behind." visory circular with seven pages of recom lights. mendations on how to make terminals more The plight of all rural America is one of accessible to the handicapped and is sending Service to State and local committees is national concern and efforts are underway to the circular to all airports. During this dis still Chairman Russell's first priority charge correct the imbalance between the Urban and cussion it was suggested that, like the to the staff. Rural populations. Business and industry are Architectural Barriers problem, transporta We are working on short, medium and being encouraged to look toward the rural tion might best be licked by making it a. long range objectives not only for the Presi areas for relocation thereby opening up new primary responsibility of Governors' Com dent's Committee, but for its major stand and more employment opportunities. mittees and private agencies like Easter Seals. ing committees and will share them with Iowa's Task Force has identified the prob There was no resolution of this question at Governors' Committees. lems of the rural handicapped and offered the meeting, but you here in Iowa might We invited. a dozen top Federal transpor many excellent suggestions on how to over want to take a crack at public transportation tation specialists to meet w'ith us to review come these problems. It won't be easy, but and see what you can come up with in the what is being done with the handicapped in it can be done if people with vision combine way of solutions to the present problem of mind and what more can be done, together. their talents and work together in an at severely disabled. '!'hat meeting was held last week and was tempt to bring a little more happiness to a quite successful. few more homes. We heard a report that the Women's Com mittee was working with the General Federa We invited representatives of the major As our Rural Areas Committee pointed out, national youth groups to form a Youth the very heart of the program is at the tion of Women's Clubs on a new contest, "Fashion Designs for the Handicapped," Committee and kicked off the initial meet county level where all the action will take ing with Senator Muskie as keynoter on place. This is where the handicapped are which will call upon GFWC members to design garments for severely handicapped January 9. You'll be hearing much more and this is where the people are who can from these young people. best act upon the problems. women and children. As you can see, there Almost every rural county is served by is something for everyone at our Executive The Advertising Council campaign aimed the Federal Extension Service, Fanners Committee meetings. Seriously, if a person at motivating the handicapped to take ad Home Administration, National Extension doesn't look right in normal clothes, how vantage of rehabilitation facilities is under Homemakers Council, Soil Conservation can you expect that person to feel right at a way in magazines, newspapers, radio and Service, The Grange, Farm Bureau and other work place? television. agricultural oriented organizations. The last of our six evaluation committees In summary to some of the above, it would These are the people who could determine made its report-on State Relations. Shortly. appear that we are in for a belt tightening if it would be feasible for the handicapped Governors' Committees will be receiving a operation at the very moment the Advertis to become self-employed on their own farms copy since they made the report possible by ing Council program goes into full swing. It or to get set up in an agriculture related cooperating in the completion of question appears that the Vocational Education business such as chicken raising or egg pro naires. The report included four suggestions Amendments of 1968 will receive priority at duction, cattle raising or crop farming, or for utilizing the valuable information con HEW for available funds and that National if they should be given assistance in home tained in the rather comprehensive State Institutes of Health, Office of Education and making or raising their own fruits and Committee reports. These suggestions in Social and Rehabilitation Service will come vegetables. cluded: after Vocational Education in the coming The Vocational Rehabilitation and State 1. Staff study of strengths and weaknesses months. Similarly, in Labor, any preferen Employment Services would also be vital to so that summaries can be used in staff field tial treatment is going to the Manpower Ad the success of the rural program and usually consultation work. ministration and its many outreach pro are within reach of almost any county. Doc 2. Staff field consultation time should be grams. Every effort is being made by this tors, nurses, teachers, and retirees could con increased and improvements made in man Office to insist upon inclusion of the handi tribute invaluable services. As a matter of ner in which visitations are conducted. capped in the various projects or special pro fact, any county resident could be of great 3. Consideration be given to developing ob grams which come to our attention and we assistance in making this program a success, jective criteria for self-evaluation by a State are constantly being given assurance that for it reaches out in many varied areas. or local committee. they will be included in training opportu For instance, educational and training fa 4. Consideration be given to developing job · nities at the community level. cilities probably would be needed, transpor descriptions for the ·executive secretary and Housing and Urban Development and De tation problems would have to be solved, the the voluntary chairman of State and local partment of Transportation are bound to jobs that could be made available for the committees. play a greater role than ever before 1n the February 17, 1969 EXTENSIONS OF REMARKS 3563 environmental lives of the handicapped and I guess this proves that you can take the ted land reform, reestablished industry, as the environment improves, it is reason boy, me, out of the country, Iowa, but you set up transportation facilities, enacted able to expect that employtnent possibilities can't take the country out of the boy. lt'a will move on a parallel course. The Model been good to be back from whence I came. social legislation, and expanded its edu Cities Act will have an increasing priority Thank you and God bless you. cational institutions. No country made on available Federal funds and insofar as greater progress ~sa free and independ plans are made that aid and assist the handi ent nation in so short a time as Lithu capped, so much the better. The Urban M ania did up to World War II. fairs Committee of the Interstate Confer LITHUANIAN INDEPENDENCE I will not repeat the sordid history of ence is another straw i.n the wind which the Soviet duplicity, infiltration, and ag indicates the very close tie-up of jobs with gression which again brought slavery and the Model Cities program. The AFL-CIO has HON. RAY J. MADDEN also established a Department of Urban Af loss of independence. The fight for free fairs for the express purpose of working with OF INDIANA dom in Lithuania continues and will the Human Resources Development Institute IN THE HOUSE OF REPRESENTATIVES continue as long as the Soviet despots financed by a one and one-half million dol Monday, February 17, 1969 inflict their despotism on Lithuania. lar Labor Department grant which will in As long as Lithuania and the peoples volve 50 major cities by next Spring. Mr. MADDEN. Mr. Speaker, on yester of other Soviet captive countries con The results of the deliberations of the day, February 16, the folks of Lithuanian tinue their fight for freedom, self-gov Citizen's Advisory Committee on Vocational ancestry throughout our Nation held ernment will surely be reestablished Rehabilitation chart a blueprint for the next special services commemorating the 51st decade. Employment was included in its within their borders. numerous recommendations, including one anniversary of Lithuanian independ The American Lithuanian Council of recommendation that: ( 1) employers be en ence. Lake County, Ind., on last evening held couraged through government subsidy if Over the years I have personally at its annual banquet under the chairman necessary, to set up on-the-job training pro tended and participated in these observ ship of Albert G. Vinick, of East Chicago, grams within industry so that disabled in ances both in my district and in other and it was attended by Lithuanians and dividuals can demonstrate to industrial per localities, reminding the American pub leaders of other nationalities throughout sonnel at a:: le\'els their ability to meet job lic of the great accomplishments of the the Calumet region. Throughout the requirements; (2) that Federal funds be Lithuanian people during their periods made available to match State funds for the United States and other parts of the important public information work carried back over the centuries when they en world the Lithuanian fight for independ on by the President's Committee on Employ joyed freedom and independent self-gov ence goes on and the Lithuanians have ment of the Handicapped and its State and ernment. The Lithuanian Republic was taken advantage of this anniversary local counterparts. There were 14 recommen established February 16, 1918. commemorating Lithuanian independ dations in all in the area of employment. This valiant nation of freedom-loving ence to remind lovers of liberty that That's a fast overview of how we look at Lithuanians has existed for over eight tyranny and slavery still dominates things today from Washington. As we pre centuries. It has enjoyed self-govern many smaller nations in central Europe pare to work with and for a new Administra ment for long periods of time during its who are enslaved by the international tion, this is the situation of the handicapped as we see it in toto: existence as a nation but unfortunately Communist conspiracy. The United The number of handicapped persons re it has been on too many occasions the States must continue to lead the fight to habilitated and placed into employment rises victim of tyranny and power-hungry restore freedom to these liberty-loving to new heights year after year (more than tyrants ruling in neighboring nations of nations. 200,000 rehabilitations and 300,000 place Europe. ments in fiscal year 1968 alone). Yet thou In the 14th century Lithuania enjoyed sands are not at work because of rejection one of its greatest periods of power and RESOLUTIONS OF GRAGG-SHER and stigma. independence after its great victory at RILL POST NO. 248, THE AMERICAN The mentally retarded are finding jobs in LEGION, CORPUS CHRISTI, TEX. record numbers (in some scattered areas Tannenberg. In the 16th century, Lithu there are more jobs than there are trained ania was compelled to fight a defensive retardates). Yet there is need for more and war to maintain its defenses and free HON. JOHN G. TOWER better training and preparation, so that dom. Again in the 18th century, Lithu greater numbers can be made ready for ania was exposed to outside attack and OF TEXAS jobs awaiting them. brought under Russian domination. Dur IN THE SENATE OF THE UNITED STATES The mentally restored are at work in large ing the 120 years of Russian domination, Monday, February 17, 1969 numbers, thanks to modern drugs and ther apies that hasten their rehabiUtation. Yet the liberty-loving people of Lithuania Mr. TOWER. Mr. President, I have the high rate of joblessness of ex-mental revolted against the tyrants on five dif received from the Gragg-Sherrill Post of patients "is a matter of special concern," ferent occasions. Regardless of the bru the American Legion a resolution con as the Manpower Report of the President talities and treatments infiicted on the cerning the establishment of a national has stated. Lithuanian people during these revolts cemetery in the gulf coast area of Texas. The physically handicapped are at work of the 18th century, Lithuania continued today-but not all of them. Many, with more The proposal certainly deserves careful its drive for freedom and national in consideration. serious disabilities, still face rejection-epi dependence. leptics, those with multiple sclerosis, cer I ask unanimous consent that the ebral palsied, blind, deaf, paraplegics, others. During World War I, the German resolution be printed at this point in the In sum, the voluntary method of promot Armies overran the Lithuanians and re Extensions of Remarks. ing acceptance of the handicapped has mained there until the end of 1918. The There being no objection, the resolu worked remarkably well over the years. Nazis failed to make Lithuania a German tion was ordered to be printed in the It will work equally well in the future, province. Lithuania's official proclama RECORD, as fOllOWS: to meet the job needs of those who still tion of independence was issued on Feb have not shared in the amuence of America. ruary 16, 1918, which was unanimously A RESOLUTION To ESTABLISH A NATIONAL You know best how things look in Iowa. adopted by the Lithuanian Council and CEMETERY FOR THE GULF COAST AREA OF Mindful of Larry Volin's compliments on the established Vilna as its Capital. After the TEXAS job you are doing, I almost hesitate to sug Whereas there is an ever increasing demand gest anythLg else. I have already indicated evacuation of the Germans, Soviet troops for burial plots for the veterans of all recent that you might like to take a crack at trans arrived at the borders of Lithuania. The United States wars, and for the honored dead portation and am aware that you are under Red army occupied Vilna in 1919. Again among our Armed Forces constantly being way on the rural areas study. Perhaps we'd the Lithuanian patriots organized and returned to this area for interment; and best leave it at that. instituted the Lithuanian Army in a bat Whereas there is no national cemetery Naturally, you have our best wishes for tle against the Reds and regained its closer than the one located at Fort Sam success and our firm promise to be of help freedom late in 1919. By a peace treaty, Houston, Texas, from 100 to 250 miles dis wherever we can be and whenever we can the Soviet Government recognized the tant; and be. As an indication of the sincerity of this sovereign rights of Lithuania over its Whereas the aforementioned veterans of promise, I might tell you that I have three our Armed Forces are by law entitled to seals displayed in my omce. One is the people and territory. burial in a national cemetery; and Marine Corps Seal, another is the President's Lithuania was admitted to the League Whereas in many cases lt is not possible Committee and the third is the blue and of Nations on September 22, 1921, and for the survivors of these honored. dead to white square seal of the Iowa Governor's became a full-1ledged nation of interna attend burial services at Fort Sam Houston Committee. tional status. Lithuanian people institu- nor to find consolation by visits to those in- 3564 EXTENSIONS OF REMARKS February 17, 1969 terred a.t the national cemetery there because The American Legion, Department of Texas, tions that has been so aroused over the eco of the travel involved; and in regular meeting assembled at Corpus nomic loss of 13 pla.nes. Whereas to establish a na.tiona.l cemetery Christi, Texas, this 14th day of January, 1969, We deplore the inaction of the govern within a ten mile radius of Corpus Christi, That the CongreSs of the United States of ments of the world which said not one word Texas would serve adequately an a.rea. ex America is hereby petitioned to enact legis when Egyptians slaughtered the Sudanese tending from Laredo and. Brownsville to lation during the current 1969 session which and poison-gassed the Yemenese, these same Victoria and reaching inland from the Texas will provide that retirement pay for the governments that rush to condemn Israel Gulf Coast 100 miles, of approximately 20, Armed Forces of the United States be for defending its right to unmolested air ooo square miles with nineteen counties, a. equalized and computed on the traditional, flight. population approaching 900,000 and an esti logical and fair basis of the current pay scale We deplore the hurried action of the United mated 125,000 veterans o! a.ll United States for military personnel on active duty, of like States carrying the banner to condemn recent or current wars; and grade and length of service; and, further, monetary losses when our government Whereas there are vast uncultivated lands that such equalized retirement pay for all chooses to remain neutral when Israeli lives available for such a national cemetery o:! a.t retirees regardless of the date of retirement, are lost. least one square mile in area in the vicinity include all military personnel now or in the We deplore the actions of our government of Corpus Christi: Now, therefore, be it future retired. which ca.n sit by when four delegations bat Resolved by Gragg-Sherrill Post No. 248, PAUL R. ZIMMERMAN, tle over seats at a peace table, which can The American Legion, in regular meeting as Post Commander. tolerate the loss of only 150 or so lives per sembled this 14th day of January, 1969, in NELS L. SODERHOLM, week in Vietnam, but which can be incensed Corpus Christi, Texas, That the Congress C1f Post Judge Advocate. at the effrontery of Israel's act of monetary the United States is petitioned to enact a. Attest: retaliation, in defense of its life-line to the public law providing for the establishment of LESTER W. WOLFORD, world. a nationa.l cemetery of a minimum 640 acres Post Adjutant. We deplore the "holier than thou" attitude within a ten mile radius of Corpus Christi, shown by the Russian government which so Texas; and be tt further recently showed total disregard of the char Resolved, That copies of this resolution be ter of the United Nations by invading Czech sent the United States Senators and Con STATEMENT OF ATLANTIC COUNTY oslovakia continuing to thumb its nose a.t gressmen from Texas and to the higher eche BOARD OF RABBIS ON NEAR EAST basic human values. lons of The American Legion, Department of CRISIS We deplore the silence of Mr. U Thant who Texas. has not found even the time to express his PAUL R. ZIMMERMAN, sorrow or at lea.st regrets a.t the loss of one Post Commander. HON. CHARLES W. SANDMAN marine-engineer who traveled and worked NELS L. SoDERHOLM, OF NEW MEXICO for the cause of the United Nations. Post Judge Advocate. Furthermore, we deplore the effect of all Attest: IN THE HOUSE OF REPRESENTATIVES this hypocrisy upon the youth of the world, LEsTER W. WOLFORD, Monday, February 17, 1969 already so disillusioned by the distorted Post Adjutant. values displayed by their elders. Do we not Mr. SANDMAN. Mr. Speaker, the justify their revolt by our present reactions? Mr. TOWER. Mr. President, this post Board of Rabbis of Atlantic County has The Board of Rabbis cries to the conscience has also passed a resolution calling for unanimously endorsed the following of the world's peoples to awake and to view a change in the method of computing statement on the Near East crisis issued the world from the perspective of justice. military retirement pay. The resolution by the Board of Rabbis of Greater Phila The world must realize that although it ma.y advocates a retirement program in ac delphia. continue to speak of the beautiful, spiritual cord with the terms of proposed legisla I believe these worthwhile opinions clothing worn by the United Nations, a child tion which I have recently introduced, can see its nakedness and that its spiritual will be of interest to my distinguished coffers are bare. S. 364. I ask unanimous consent that this colleagues. We pra.y to the God of all nations that the resolution, likewise, be printed in the Text of statement follows: world will seek peace in the Middle East, but Extensions of Remarks. STATEMENT ISSUED BY THE BoARD OF RABBIS a peace that is just; a peace that will end There being no objection, the resolu OF GREATER PHILADELPHIA the acts of cowardice that parades in the tion was ordered to be printed in the We are shocked by the hypocrisy shown by guise of patriotic terrorism; a peace in which RECORD, as follows: the nations of the world. Governments in the sanctity of human life w1ll be hallowed above all things; a peace that will bring RESOLUTION: DISPARATE MILITARY RETIRE their nations' capitals and in the United A blessing to all the people that inhabit that MENT PAY Nations, rushed, almost gleefully, to pro nounce in pious pla.titudes their condemna part of the world, Moslem, Christian and Whereas the disparity in the retirement Jew. pay of members of the Armed Forces retired tion of tiny Israel for its so-called "aggres prior to the periodical pay increases author sion". "Too far," they cry. "This time Israel ized for active duty members-on which re has gone too far. They have overreacted." We tirement pay is calculated for those retiring are almost convinced that the world would THE 51ST ANNIVERSARY OF LITHU subsequently to the adoption of such active have understood it if Israel had killed but ANIAN INDEPENDENCE duty pay increase-is cumulative and not one man, any man, wounded 45 people, and compensated for to any appreciable degree destroyed but one plane. This would ha.ve by the so-called "cost-of-living" increases been fair-play. Instead, Israel ha.d the a.udac HON. VANCE HARTKE given retired m111tary personnel; and ity to spill no blood (at extreme danger to OF INDIANA Whereas this inequitable method of re its own men); but destroyed 13 planes. How IN THE SENATE OF THE UNITED STATES tirement pay computation-based on the pay can you equate this great economic loss With scale for active duty personnel in effect on but one little life? Monday, February 17, 1969 the date of retirement-violates a principle The Board of Rabbis points out to our gov Mr. HARTKE. Mr. President, yester recognized for more than 100 years of com ernment and to the world that a spiritual puting the retirement pay of all retirees sickness infects us; it is the total inversion day, February 16, 1969, marked the 51st from the Armed Forces on the current pay of values; it is a return to the days of the anniversary of the independence of a scale ineffective for active duty personnel Tower of Babel when people cried bitterly small but gallant nation, Lithuania. regardless of the date of retirement; and when they dropped a brick from the scaffold Long the subject of Russian domination, Whereas as the buying power of the dollar but were indifferent when a human being the proud and fiercely independent Lith shrinks, the economic status and the living fell to earth a.nd was destroyed. uanian people courageously established standa.rds of retired military personnel de True to Judaism's exaltation of life as the an independent nation on February 16, cline rapidly because of the unjust and in highest and holiest of all values, equitable method now in force for the com We deplore the acts of omission of the 1918, and dedicated their nation in a putation of retirement pay, which admittedly United Nations which, to a great extent, noble commitment to democratic prin widens the living standard gap between caused the six-day war of 1967. ciples and ideals tragically torn asunder groups of retirees with equal years of active We deplore the silence of the United Na by first Russian, then German, and service and of equal rank; and tions when countless atrocities were perpe again Russian tyranny during and after Whereas to continue the current method trated by Fedayeen, trained and equipped World War II. of computing retirement pay inevitably re by Arab nations, who, when caught, shouted Declared, under Russian coercion, a sults in the loss of the services of our :finest boastfully that they acted for their Arab military personnel a.t an early age because countries in killing innocent people, going constituent Communist republic of the they can take up civ111an employment in a.bout their da.ily work. U.S.S.R. on August 3, 1940, Lithuania which retirement rates of compensation are We deplore the indifference of the United gallantly resisted and fought the over vastly greater and are non-discriminatory: Nations which sat by when thousands or whelming numbers of Russian and Nazi Now therefore, be it men, women and children were senselessly invaders. During the first Soviet occu Resolved by G'T'agg-Sherrill Post No. 248, slaughtered in Biafra-this same United Na- pation, at the outbreak of the war, Lith- February 17, 1969 EXTENSIONS OF REMARKS 3565 uania sutiered the loss of about 45,000 NAMS has taken toward the youth of (a) talking God and Country to their stu of its people in its fierce resistance to today. We must not eondemn all youth dents more than ever before; it-1 Russian captors. Some 30,000 mem for the irresponsible and confused atti (b) initiating a program among all schools which will direct sound thinking on the val bers of the Lithuanian intelligentsia tudes of a few, which brings me to the ues of true patriotism; were deported to Siberia on the night of point at hand. (c) initiating a program which will con June 14, 1941, and 5,000 Li~huanian po I would like to include at this point in vince all government officials that our "in litical prisoners were executed when the the RECORD a paper entitled, "Faith in ternal" concern are our most important mat Soviet forces hastily retreated under Our Youth: An Attitude Taken by the ters; German attack. Repeating the history National Association of Military (d) endeavoring to obtain a reversal on the of the First World War, German occu Schools." decision of the supreme court--therein rests the crux of the entire matter as far as educat pation then replaced that of the Soviets, I know that you will find it enlighten ing youth is concerned. If God is left out of ~s a few days after the German attack ing and encouraging, and providing us the picture, there is no foundation upon on the Soviet Union on June 22, 1941, with hope for the future. which to build any nation. Nazi forces overran Lithuania. The material follows: A MAN WITHOUT A COUNTRY OF WHICH H E IS During the tyranny of the German FAITH IN OUR YOUTH: AN ATTITUDE TAKEN BY PROUD HAS NOTHING occupation many loyal Lithuanians were THE NATIONAL ASSOCIATION OF Mn.ITARY Those words should be thought-provoking brutally killed and executed, including SCHOOLS to all serious-minded Americans. Our chal virtually all Lithuanians of Jewish ex A STATEMENT lenge is to bring America back to where it traction. When the tide of war turned Realizing that patriotism, as it was once once was; to let all know that patriotism is against Germany, the beleagured Lith known, stands on a threshold of complete a word to be revered and respected. And we uanian people returned tragically not to deterioration or a reformation, the executive must not be ashamed to demonstrate it! committee of the National Association of independence but once again to Soviet Military Schools appointed a committee to tyranny and domination. But again the review the situation existing in our nation Lithuanian people 1·esisted and fought today as related to the decline in patriotism, DEATH OF EDWARD MARSHALL the hated Russian aggressors. It is a and to formulate some program, if possible, BOEHM tribute to their tenacity and indomi which would permit 'me Association's taking table spirit that Communist victory came part in restoring patriotism, in its true sense, neither easily nor readily. to the status it once held. HON. HARRISON A. WILLIAMS, JR. Now, at a time when Communist op FAITH IN OUR YOUTH OF NEW JERSEY pression still hangs over a proud nation Upon convening, the committee immedi IN THE SENATE OF THE UNITED STATES and a gallant people, it is fitting that all ately declared its faith in our youth of today, Americans join the many Americans of placing the blame of any deterioration of Monday, February 17. 1969 Lithuanian background and origin in patriotism where it rightfully belongs; Mr. WILLIAMS of New Jersey. Mr. namely, upon the shoulders of all those adults this country in commemorating an an who are in any way responsible for the train President, the death of Edward Marshall niversary of a nation and a people who in ing of our youth. Among those responsible Boehm in New Jersey recently has sad the agony of oppression truly know the would be parents, teachers (from the first dened his friends and admirers. Mr. value and meaning of freedom. And grade through college) , ministers of all faiths Boehm has become world famous for his today, as just a year ago when it was my and heads of youth organizations. lifelike porcelain birds. privilege to commemorate the then 50th THE BEGINNING OF DETERIORATION Mr. Boehm, born in 1912, did not at anniversary of Lithuanian independence When Sputnik was fired, our nation within tempt to do any ceramic work until after in an address before the Lithuanian its schools (public, independent and colleges) World War II. Prior to this time he had Council of Chicago, I join the fervent immediately placed all emphasis upon "aca spent a number of years training in ani prayers of free people everywhere in the demics," neglecting to greater degrees the mal husbandry which played a vital role hope that, on this anniversary of her responsibilities previously accepted as related in his handling of the various difficult independence, Lithuania might soon once to the more important factors of love of subject matters which he mastered so again be truly :free. Country and God. skillfully. THE FLAMES FANNED Mr. Boehm opened his first studio in One mother stood alone in the wilderness 1950, in Trenton, N.J. It was in the base FAITH IN OUR YOUTH: AN ATTI and screamed loudly that her son should not ment of a small building where he ex TUDE TAKEN BY THE NATIONAL hear prayer or the Bible read in the public perimented and finally developed the schools. The supreme court heard her screams method of ceramic sculpturing unknown ASSOCIATION OF MILITARY and yielded to them, while all other mothers SCHOOLS of the nation stood idly by. This decision of in America. the supreme court served to fan the fiames Porcelain figures in the 20th century of deterioration. Not only was prayer and the generally tended to be simple in detail. HON. F. EDWARD HEBERT reading of the Bible forbidden, but along This tendency toward uncomplicated OF LOUISIANA with it went the relief of any responsibility subjects started in Copenhagen but IN THE HOUSE OF REPRESENTATIVES of the public school teacher to talk with his, r a pidly spread to the United States. Mr. or her, students about a deep love for God Monday, February 17, 1969 Boehm was one of the first to shy a way and Country. from this popular pattern. He returned Mr. HEBERT. Mr. Speaker, at a time GUIDED DISCIPLINE FOR YOU NG PEOPLE to the painstaking craftsmanship as when violence and unrest are sweeping Young people like and expect a guided piring to a high degree of detail. This our college campuses and ROTC pro discipline. Without it (and little is given would even include an insect in the mi grams are nnder attack, there is one di these days!) , young people become lost in nutest of detail on a leaf as well as insect rection we can look with pride. the whirlwind of maturing. A guided disci pline should originate within the home and holes in the leaf. I speak of the institutions who are extend through college; after all, young Mr. Boehm found abundant inspira members of the National Association of people in college still need guidance--one tion in the world of nature. Birds, flow Military Schools, an organization which does not actually mature until long after ers, and animals have been closely stud represents more than 100 NDCC, Junior college. ied and faithfully rendered. Many of Mr. ROTC, and independent military schools. BELTS MUST BE TIGHTENED Boehm's works reflected his articulate There is no doubt about it. At these Americans, young and old, must take a interest in orinthology and exhibited schools, the administration is still in con serious look at themselves for they consti how beautifully and artistically a bird trol, every student has the opportunity tuted the nation. Our forefathers gave us a. can be · represented in this ceramic to attend class without interference, and nation of which to be proud. They expected named bisque. One is delighted by the the youth are working toward an educa us to cherish our heritage, protect it a.nd realism exhibited in his replica of the pass it on to posterity. This is our challenge mother Common Te1n-seagull. Near tion which will allow them to make a today more than ever before; we must accept valuable contribution to their country. it! her are her three eggs, one of which has hatched and he1· baby is half out of the The National Association of Military OUR YOUTH IS READY-WHAT WILL WE DO ABOUT Schools is doing a fine job in leading its shell. Realistic looking ceramic sea THAT WHICH CONFRONTS US? shells and sand surround Perhaps member schools and in inspiring them to The member schools of The National Asso them. attain the highest level of education, ciation of Military Schools rededicate them my two favorites are the roadrunner leadership, and patriotism in its students. selves to making this nation the nation it chasing a horned toad and the killdear It is refreshing to note the attitude the once was by- father bird extending his wings to pro- 3566 EXTENSIONS OF REMARKS February 17, 1969 teet the mother and babies. On the soil think the Congress bent over backward and the hopes and eagerness of youth is a fragile :flower with threadlike stems in an effort to please the peopb who are at its best underscores the unreasonable where the mother killdear is directing interested in destroying the tobacco in human cost contained in the statistics--- her yonng in the art of acquiring food dustry when they enacted a bill several 30,000 dead Americans. from the earth. years ago compelling the tobacco com I ask unanimous consent that the let Edward Boehm's porcelains are rep panies to place on each package of cig ters be printed in the Extensions of Re resented in collections at the MetroPQli arettes the following words: "Caution: marks. tan Museum of Art, the Academy of Nat Cigarette smoking may be hazardous to There being no objection, the letters ural Science in Philadelphia and art your health." were ordered to be printed in the RECORD , museums in Memphis, Houston, and Los A HOUSE RESOLUTION TO MEMORIALIZE THE as follows: Angeles. His porcelain sculptures have CONGRESS OF THE UNITED STATES To TAKE MARCH 9, 1968. received world recognitior through show NECESSARY ACT:ION To PREVENT THE FEDERAL D EAREST FAM:ILY: Greetings from Cam Ranh ings at Buckingham Palace, the Elysee COMMUNICATIONS COMMISSION OR OTHER Bay. My big news is that I have been diverted from the 1st Cav. I am now headed for Chu Palace, the Royal Ontario Palace, and ADMINISTRATIVE AGENCIES FROM BANNING ADVERTISEMENT OF TOBACCO PRODUCTS ON Lai, H.Q. of the America! Division about the Vatican. TELEVISION AND RADIO eighty miles south of the DMZ. I have no Several Presidents, including 'Presi Whereas, the Federal Communic;...tions real emotion yet regarding the change, main dents Eisenhower, Kennedy, Johnson, Commission has threatened action to prohibit ly because I know almost nothing about the and Nixon have purchased Boehm por the advertisement of tobacco products on America! except that its patch is not as celains. In December 1967, a collection television and radio; and good-looking as the Cav's. I do know that it of 90 Boehm pieces, valued then at $104,- Whereas, the publicly-owned airways is sort of a hybrid division made up of ran 000 was presented to the John F. Ken should be protected from such arbitrary and dom, unassigned brigades. My only disap unnecessary restrictions; and pointment at my change is that from my nedy Center for the Performing Arts. group at Jungle School which traveled here A matter of Mr. Boehm's sensitivity Whereas, the tobacco industry so vital to the economy of South Carolina would be intact I am the only one sent to the Ameri and sense of humor came to me when seriously damaged by this proposed prohibi ca!. We were all originally scheduled for the on Mrs. Humphrey's birthday, Mr. tion. Now, therefore, 1st Cav., but all the rest were sent to the 25th Boehm presented her with a replica of Be it resolved by the House of Representa Inf. in and around Saigon. I do not know the State bird of Minnesota, thought to tives of the State of South Carolina: why I was singled out because I have neither be the loon. He presented an unmatched That the Congress of the United States be special qualifications nor restrictions nor am and hereby is memorialized to take such ac I numerically or alphabetically worthy of in porcelain lifelike bird, the yellow finch, dividual selection. So, who knows? I am par to Mrs. Humphrey at the State Society tion as may be necessary to prevent the Fed eral Communications Commission or any ticularly sad to be separated from Vince of Minnesota gathering. A ripple of con other administrative agency from prohibiting Santurbane who, you know, was one of my cern ran through the crowd when the the use of the public airways to advertise Tacoma roommates. I'm really sorry that bird was displayed-it was not the loon tobacco products on radio and television. we're separating. at all. Researchers rushed to their work Be it further resolved that a copy of this While still quite separate and secure, due to check it out and found that Mr. Resolution be forwarded to the President of to processing, from all the fighting here one Boehm was right--the yellow finch was, the United States Senate, the Speaker of the still knows that there's a war going on. From House of Representatives of the United States our billets we could hear machine gun and indeed, the State bird. mortar fire from the perimeter two or three I share with his bereaved family and and each member of the South Carolina Con gressional Delegation. miles away. We could also see illuminating friends throughout the world, the sad State of South Carolina, in the House of flares in the sky to light up the battlefield. ness which his passing leaves. Mr. Representatives, Columbia, S.C., February 6, Yes, I am scared. But I think it's more of the Boehm has left a legacy which will not 1969. unknown than of bullets. I expect to learn soon be forgotten. a lot during the next year; I'm not sure what I hereby certify that the foregoing is a it'll be, but I'll learn a lot. true and correct copy of a Resolution passed I am now in flight to Chu Lai, which is in the S.C. House of Representatives. about an hour by air from Cam Ranh. I am INEZ WATSON, in a C-130 transport plane sitting on my A HOUSE RESOLUTION TO MEMO Clerk of the House. duffel bag with about thirty others. All are RIALIZE THE CONGRESS OF THE low enlisted men except for a Signal Corps UNITED STATES TO TAKE NEC Major, a chaplain Lt. Col., and me. I hope we ESSARY ACTION TO PREVENT don't crash somewhere out in the boonies THE FEDERAL COMMUNICATIONS LETTERS FROM A DEAD GI because only two men here have weapons and, COMMISSION OR OTHER ADMIN being Infantry, I'll probably have to take ISTRATIVE AGENCY FROM BAN charge and engineer the exfl.ltration. Not the HON. GEORGE McGOVERN best crew for one's first command. Daydream NING ADVERTISEMENT OF TO OF SOUTH DAKOTA ing! BACCO PRODUCTS ON TELEVISION IN THE SENATE OF THE UNITED STATES So long for now. AND RADIO All love to all, Monday, February 17, 1969 MIKE. HON. JOHN L. McMILLAN Mr. McGOVERN. Mr. President, often MARCH 16. OF SOUTH CAROLINA lost in the reams of statistics and cas DEAR MOM AND DAD: A big hello from sunny IN THE HOUSE OF REPRESENTATIVES ualty figures from Vietnam is the dread Chu Lai and the America! Division. I am now ful poignancy of the individual loss; the undergoing a week of final in-country train Monday, February 17, 1969 crushing grief of a bereaved family; the ing prior to being assigned to my unit. Mr. McMILLAN. Mr. Speaker, I am in profound moral agony of the battlefield Chu Lai is situated on the South China victim. Sea about 200 miles south of DMZ with our serting in the CONGRESSIONAL RECORD a camp being right on the beach. I am told that resolution adopted by the South Carolina The January issue of Washingtonian the monsoon season is in its final stages and State House of Representatives in op magazine contains a collection of letters that we'll be moving into the hot dry sea position to the proposed FCC order out written by Mike Ransom, a 23-year-old son. This is good because the rice paddies lawing cigarette advertising. Army lieutenant from Bronxville, N.Y., dry up and we won't have to hump through I think a number of other Congress who was killed in Vietnam last May. In endless swamps. But the temp reportedly men from the tobacco-growing States correspondence with his family and rises as high as 130 degrees at its peak. have protested this proPQsed regulation friends, Mike conveys the constant ten With regard to finances, I sent $400 to my checking account and I set up an allotment of by the Federal Communications Com sion between his feelings of responsibil $250 per month which will become effective mission with all the power and influence ity and involvement in the war as a sol at the end of April. In addition, you will be that we have here in the Congress. We dier and his moral convictions that the receiving a $25 savings bond each month. I know that if the Federal Government war was wrong. His personal anguish re would appreciate it if you would open a sav interferes with this agriculture product flects the confusion and torment we have ings account at FNCB in Mom's and my name hundreds of thousands of people will lose all known in some measure--and the and deposit $150 a month in it out of the $250 their jobs and the Federal Government sacrifice of his life is painful testimony that wm be coming in t.., the checking ac wlll suffer a tax loss of between $3 and count. I have been advised not to make de to the terrible failure of American policy. posits in the 10 percent savinge program for $4 billion annually, in addition to the I urge every American to read the let Gl's here, because it's virtually impossible millions of dollars collected by the in ters of this dead GI. The loss of this to get it out on short notice, such as R&R, dtvidual States and city governments. I young man so filled with the idealism etc. February 17, 1969 EXTENSIONS OF REMARKS 3567 I. am. 1n the same mall. sending a letter beach with his machine gun. But most people to a show of American popular support !or· to Robert Komer, the Hamlltons• friend 1n generate their enthusiasm !or two reasons: the war. Please comment. charge o! the pac11lcation efforts here, 1n the One is self-preservation-if I don't shoot him, Things aren't all bad-I've got a really hopes o! getting a job on his staff. I am really he'll eventually shoot me--and the other is good company commander and a good pla getting quite scared about being a platoon revenge. It's apparently quite something to toon sergeant. In my job these are the most leader and so this is a last-ditch effort to see a good friend blown apart by a VC booby important people in the world to me. Also avoid it. trap and you want to retaliate 1n kind. on the brighter side, I'm getting t he best sun I will say so long for now. I can't wait 'til While I am able to read Stars and Stri pes tan I've ever had. I have a permanent address so I can start and listen to AFVN radio newscasts, I still New pen. receiving mail. I miss you all very much and feel very cut off !rom the world outside of All love, can't wait 'til I'm settled enough to hear VN. I would love it dearly if you would sub from you. scribe to Newsweek for me. Also, what do you MIKE. All love, think of Bobby for President? What about DEAR MOM AND DAD: I just got my first MIKE. Westmoreland's new job? What does every letter from you plus the clippings on John thingmean? son and my pictures. I can't tell you how DEAR BooB: The difference between here in I now have one last editorial comment great it is to be back in touch with you Qui Nhon (pronounced Quinyon) and Chu about the war and then I'll sign off. I am again. Lai is incredible. In Chu Lai, I slept on a extremely impressed by almost every report In Vietnam nearly every GI has a portable bare cot in a field tent in the sand dunes; I've heard about the enemy I am about to radio which he carries to pick up AFVN Ra here I'm in an old French villa in a bed with go and fight. He is a master of guerrilla war dio. rt·s really a terrible station, being de sheets. In Chu Lai, the latrines are just fare and is holding his own rather nicely with signed to offend no one and please the m a outhouses and you can get a cold water what should be the strongest military power jority. It plays the same pap all day long shower only every three days. Here there are in the world. But it is mostly his perseverance in its effort to appeal to the same Midwest private bathrooms wit h hot showers. In Chu that amazes me. He works so hard and has ern anti-Communists you mention in your Lai, the officers• club is a grass shack that been doing so for so long. You've heard of letter. But they do presen t reasonably un serves warm beer. In Qui Nhon, I have a his tunneling capability? A captured VC said censored news every hour. This plu s St ar s choice of t hree permanent clu bs, can get that in coming !rom North Vietnam down to and Stripes, which we get t wice a week, keep anything I want to eat or drink, can see :floor Saigon, he walked over 200 miles completely me pretty well posted, at least as far as shows every night, etc. It's a veritable para underground. Anyone who would dig a 200- headlines go. dise here, compared to Chu Lai. But don't get mile tunnel and who would still do it after I did hear Johnson's speech of deescaiation me wrong. I'd still rather be in Seattle or being at war for some thirty years must be and noncandidacy and thought it the best New York or Boston-it's not that great! I right! of his career, not just the way he said it. also think I may be really spoiling myself All love, It created in me a great sense of hope that for what is ahead in the next few months, MIKE. this foolishness over here will end fairly but wh at t he hell! shortly. There is not a man over here that I can't tell you how great those last three APRIL 3. wants to see this war go on any longer. This is days in Seattle were for me. As I've said be DEAR MOM AND DAD: Well, your eldest is not to say that anybody shrinks from doing fore, the Skubis have become a second fam now a combat leader. So far I haven't even a job. But everyone is as confused as I as ily for me and I feel both honored and ex fired a shot, nor have I been under any sort to exactly what, if anything, we're accom tremely grateful to be so accepted. I've un of fire. Our company is currently involved plishing and wants the war over ASAP. fortunately developed some nostalgic feelings in an operation to prevent the local rice har I lost my first man last week. He was killed for Laurelhurst, the U. District, and most vest from falling into VC hands. Our tactic by accident by another man in the platoon. of all Whidby Island with Fort Casey and is to remain in a company base during the I had sent a squad out on night ambush. Sunlight Beach, so much so that I yearn to day, since it is too hot for any long, arduous They had been set up in position for a few return there as much as home. Having an movement. At night each platoon sends out hours when the :flank man crawled away to other place that I yearn for just adds a little two or three squad-size ambush patrols. take a look or something and as he was more to the pain of leaving and being away. Two days ago we went on a heliborne com crawling back to position another man mis Besides, I miss you the higher the much. bat assault. Our mission was to cordon a vil took him for a dink and shot him. He died All love, lage that was suspected of having a pia toon on the chopper that dusted him off. Of MIKE. of VC hidden in it. It was an extremely well course it really tears me up to lose a man, es P.S. I still really crave your mother, so executed mission. We were air-lifted out of pecially like that, but I must not show any give her a big Hi! our defensive position and then were dropped emotion over it. I've got to press on, keep P.P.S. I got all my hair cut off the day in around the village about fifteen miles doing my job. Even among my men this I arrived in VN so I'll send you some pic south. Once we were in position a group of is universal. They are saddened by the deat h ~es. I'm sure you can't wait to run off Vietnamese Popular Forces moved in through of a buddy, but he is gone. The concern showing the great pix of your boyfriend in our lines searching the village. It was an ali among the team (for that is what we are) the Army. day operation that netted one VC killed, six is how it will affect the man who shot h im . captured, and three weapons captured. It is Will he fall to pieces over this and be un MARCH27. in operations like this that we hurt the VC able to perform his function? This is what DEAR MoM AND DAD: Would you believe I most. As you know, the local VC are terribly we're worried about first and foremost. War am now officially assigned to a unit? It's underequipped. So when we capture two or is Hell! taken so long that it's quite a relief. three weapons we put ten or fifteen enemy You know that joke about how hard it is After I left Qui Nhon last Friday, I went out of commission, at least for a while. At to tell the good guys from the bad guys over back up to Chu Lai to finish up my training, the end of the day we were again helilifted here? Well, it's funny in Bronxville or Dor which ended Sunday. On Monday, I :flew back to our company base. It was basically a set, but it isn't over here. The enemy in our down to Due Pho or LZ (landing zone) Bron simple school problem, but for me, since it area of operations is a farmer by day and VC co, the base camp of the 11th Brigade. From was really the first operation I had been on by night. Every male is required to register there I was assigned down to the 4th of the it was quite exciting. at his provincial capital. He is further re 3rd, "The Old Guard.'' This battalion has its Our primary danger here though is not quired to carry an ID showing his picture, headquarters here at Due Pho. but its AO Charlie himself, but the mines and booby fingerprints, age, etc. But anyone with a (area of operations) is back about five miles tra.ps be sets. The first night I spent in the VC background is supposedly denied an ID. south of Chu Lai. Therefore all logistics are field an ambush patrol from the first platoon Simple, you say? All we have to do is come handled out of Chu Lai. had three men wounded when they set off to a village and police up everyone without I am told that our AO is quite a good one. a booby-trap grenade. This morning, the an ID, right? Well, about three months ago There is almost no contact with Charlie and second platoon took fourteen casualties, in we captured a VC printing plant that manu what lit tle there is rarely turns into much cluding one killed, when they set off two factured ID cards. Every man we pick up of a fight because he runs away. The prin mines while on a road-clearing mission. So says "Me Vietnamese, Numbah 1, VC, Num cipal danger here is from mines and booby far, my platoon, the 3rd, hasn't had any bah 10," so we have to let him go. But more traps, which account for about 75 percent of trouble, but these booby traps are so well than once we have captured or killed peo all casualties. The enemy here is mostly VC hidden that no matter how good you are, ple with weapons whom we recognized as one guerrillas, with a few hardcore VC. To my they'll get you. of those smiling !aces we had picked up and released earlier. It's maddening because we knowledge, there has been no contact at all I heard Johnson's speech on AFVN Radio know damn well that they're dinks, but we with the North Vietnamese. last night and think it to be the best one of can't do anything to them until we catch From the people I've talked to over here his career. I am heartened by this bombing them with a weapon or actually shooting I've come up with some new ideas on the reduction and pray as does everyone else at us. war here. For the most part, nobody is par here that Hanoi will respond. What do you By the way, Number 1 means real good ticularly wild with patriotic feeling for the make of it? Also, how about his not run and Number 10 means real bad in pidgin war. There are of course those who just get ning !or President? I was beginning to Vietnamese-English. Other handy phrases, a real charge out of killing people. One Lieu think that the only way for this war to end just in case you're planning a vacation fn tenant I talked to said what a kick it had been was to have Johnson reelected in November. this tropical paradise are: teetee-very lit tle; to roll a gook one hundred yards down the This I feel would cause Hanoi to back down boo coo (a bastardization of beaucoup)- ·3568 EXTENSIONS OF REMARKS February 17, 1969 very much; boom boom-whore; deede now for the VC and the Vietnamese. Respect be force to take it, so I don't think he'll try. get out of here. What more do you need to cause the enemy knows that he can't stand Basically, being on Sue means a rest and se know? up to us in a fire fight, due to our superior curity, so it's good to be there. Right now, Would you also like to know an interesting training, equipment, and our vast arsenal of though, we are on our three days down in the facet of Vietnamese economy? GI's at the weapons. Yet he is able. Via his mines and field and I have to tell you that ever since large installations can buy cokes or beer for booby traps, he can whittle our ranks down we hit that minefield I am nervous all the two or three dollars a case. They can sell it piecemeal, until we cannot muster an effec time. My platoon is way under strength right on the black market for ten or fifteen dollars. tive fighting force. now and I feel that we are too small a force The black market distributes it around the In the month that I have been with the to be operating as independently as we do. country for lord knows what price. The vil company, we have lost four killed and about My authorized strength is forty-three. I had lage peasants sell it back to GI's in the field thirty wounded. We have not seen a single thirty-six when I first joined the platoon who never see a PX from one month to the verified dink the whole time, nor have we and am now operating with twenty. That next at a dollar per can or twenty-four dol even shot a single round at anything. I've de minefield cost me several people, plus I am lars a case. To the GI in the field a coke or a veloped hate for the Vietnamese because hit with a rash of people on profile and peo beer is such a delicacy that he is all too will they come around selling cokes and beer to ple on R&R at this time. ing to pay the exorbitant price. Oh, well! us and then run back and tell the VC how Last night I split my element into two More soon. many we are, where our positions are, and ambushes. I took one and my platoon ser Love, where the leaders position themselves. In the geant took the other. Sergeant Western's MIKE. place where we got hit, we discovered four patrol was in position about an hour and a other mines, all of them placed in the spots half when some dink sneaked up and threw DEAR MoM AND DAD: Well, I've had my bap where I, my platoon sergeant, and two squad a grenade into their perimeter. Sgt. Western tism by fire and it's changed me, I think. leaders had been sitting. I talked to the mech saw it come in and managed to grab it and Two days ago my platoon was on a mission to platoon leader who is with us and he said threw it back out where it exploded harm clear three suspected minefields. We were that as he left the area to return to his fire lessly. It was, needless to say, an awfully close working with a mechanized platoon with base, the people in the village he went call. I put him in for a Silver Star today for four tracks, and our tactic was to put the through were laughing at him because they his courageous action. tracks on line and just roar through the knew we had been hit. I felt like turning my Sergeant Western is a really good guy and minefields, hoping to blow them. Since the machine guns on the village to kill every I wish we didn't have to maintain a profes majority of the VC mines are anti-personnel, man, woman, and child in it. sional relationship because I'd love for him the tracks could absorb the explosions with Sorry this has been an unpleasant letter, and me to be friends. He is twenty years old no damage done to them or the people inside. but I'm in a rather unpleasant mood. and comes from Larchmont and we are very My platoon rode along just as security in All love, similar in both background and tempera case we were attacked. We spent the whole MIKE. ment. He has been very lucky in achieving day clearing the three fields and came up P.S. Could you check on my bank account rank as fast as he has, but he also has the with a big zero. and tell me its status? competency to merit his rank. He and I have The tracks were then returning us to where jokingly suggested that you and his mother we would stay overnight. When we reached APRIL 29. should get together and talk about your sons our spot we jumped off the tracks and one of DEAR BooB: In case you hadn't noticed, in faraway Vietnam. my men jumped right on a mine. Both his there are at strategic locations throughout I am awfully sorry to hear about the aca feet were blown off, both legs were torn to this letter, a number of funny little pictures demic difficulties being suffered by No. 2 and shreds; his entire groin area was completely of alligators. Why alligators, you ask, and 3 sons. I'm sure though that Larry, as usual, blown away. It was the most horrible sight rightly so. Well, to show you that I'm going will barely pull something out of the bag and I've ever seen. Fortunately he never knew absolutely crazy over here I must tell you squeak through, colors flying. As for Mark, I what hit him. I tried to revive him with about my new fixation on alligators. The don't know what tc think. :.:would certainly mouth-to-mouth resuscitation but it was alligators are "rub-ons,'' the nifty surprise hate to see him stifled in some second-rate hopeless to begin with. that comes in every package of jiffy-pop. So school, but his only alternative, I'm afraid, In addition, the explosion wounded seven I thought I'd rub a few on. is the Army, which would kill him. Maybe other people (four seriously) who were I'm enclosing here a couple of pictures. NYU or BU might be an answer. You can tell dusted off by Medevac, and three others One, needless to say, is a picture of everyone's him that he can get into OCS in the Army, lightly, who were not dusted off. Of the four favorite war hero. The other is one which I if that's the course he chooses or gets stuck seriously wounded, one received a piece of probably shouldn't send, but I thought it in. As for Larry, since I assume he has no shrapnel in the heart and may not survive; would interest you as a part of your educa alternative, I would recommend the Army the other three were almost completely tion. It was just a part of mine as I had never because it's a much shorter tour, but only if riddled with shrapnel and while they will be seen a truly pornographic picture before, and he can get a decent branch guarantee. Other completely all right, it will be a slow and I still do not know who makes them or how wise, I'd say Navy or Air Force. painful recovery. to get them. They just turned up in my Despite losing people and being scared all I was one of the slightly wounded. I got bunker the other day. I had heard about pic the time, I find being an infantry platoon three pieces in my left arm, one in my right tures like this before so I'm not shocked, leader an exhilarating, exciting, and, yes, re knee, and about twenty in both legs. I am merely revolted'to actually see them. I hope warding job. I have ambitions to go higher, completely all right, in fact I thought I had that I don't get arrested for mailing obscene even in my short two years in the Army, but only gotten one in the arm and one in the material in the mail. I also hope that Marge I don't really want to because platoon level is knee. It was not until last night when I took doesn't get all excited about seeing a letter the last at which I still can have close work off my clothes to take a shower that I noticed from me in the mailbox and decide to open ing contact with my men. I think I've devel the other spots where I had been hit. it before you get home from school. Most im oped a pretty good relationship with my peo I came back to Chu Lai yesterday because portant I hope it doesn't offend you. ple, one in which they depend on me for my knee is now quite stiff and swollen and I got a letter from MPS yesterday and what leadership, but they know that I must be will probably be here a couple of days, what a thrill. It was a real pleasure to read a letter able to depend on them too. It's very healthy with X-rays and what not. Believe it or not, I from a Skubi who is sane. I'm puzzled by the and as I say, rewarding. I am doing all the am extremely anxious to get back to platoon. Mrs. Robinson with which she signed it. Am politicking I can to get a staff job, but if I Having been through this, I am now a bona I then Benjamin Braddock? Are you Elaine? do get one, I will hate to leave my men (not fide member of the platoon. They have always Is B111 Evans (Seattle's answer to Duffy) Car? enough to turn it down, though!). followed my orders but I was an outsider. Oh well, please reaffirm my love for her any I got the big Easter-gathering letter and Now I'm a member of the team and it feels way. really enjoyed hearing from everyone. It good. MIKE. must have been quite a party. I have gotten I want to assure you that I am perfectly a few letters from Sally Fairfax, thousands all right. You will probably get some sort of MAY 2. from Ronda, one from JoAnne, and none notification that I was lightly wounded and DEAR MoM AND DAD: I am now sitting in a from Susie. I just don't want you to worry about it at all. little hooch in a village in which we're oper I have a couple of requests which I wonder I will receive a Purple Heart for it. People ating. Company A is still situated on LZ Sue, if you would mind filling. (1) Have you been over here talk about the million dollar securing the artillery battery which supports able to change the address on the Newsweek wound. It is one which is serious enough to our battalion. The way things are working subscription you said you ordered? I live warrant evacuation to the States but which is that two platoons secure the hill, while in quite a vacuum for news over here and will heal entirely. Therefore you might call the third goes off into the villages on patrol. Newsweek seems about the best and easiest mine a half-million dollar wound. My RTO Each platoon stays down for three days and way to pull myself out. (2) Could you check who was on my track, sitting right next to then moves back up to get relieved by an the status of my bank account and send me me, caught a piece of shrapnel in his tail, and other. On Sue it's relatively safe, with large a report? (3) Could you send me half a since he had caught a piece in his arm about strong bunkers, several layers of barbed wire dozen black mechanical grease pencils. I use two months ago, he'll get out of the field with around the outside. these to mark my maps which are covered wounds about as serious as a couple of mos We still have to man the perimeter at with acetate. (4) Could you keep me supplied quito bites. night, which means not much sleep and we're with felt tip pencils (blue) like this one. · I said earlier that the incident changed me. always subject to mortar attacks, but Charlie About two a month should do me fine. As I am now filled with both respect and hate would need a fully equipped battalion-sized you can probably tell, it's a cold day in hell February 17, 1969 EXTENSIONS OF REMARKS 3569 (or Vietnam, for that matter) when I get a sitting down to their own dinner and it seems No free nation has recognized the so-called chance to get to a PX. they had set a place for me. Before I knew it, incorporation. Legally, Lithuania still is an This 1s all "for now (both requests and M.:amasan had grabbed my plate wi-th my existing sovereign state, although occupied deathless prose). More soon. own food and took 1t away while Papasa.n by foreign armed forces. It has its duly rec Love to all, urged me over to take my place on the dirt ognized citizens and functioning diplomatic MIKE. floor around a tray of food. I didn't really and consular representatives in the United P.S. You might tell any friends you have want to give up my food to ea.t theirs, but States, as well as in Europe and South in Washington to get off their fat asses, quit I felt obliged; so I crossed my legs and sat America. quibbling, and start talking about ways to down and was served a bowl of rice, a grungy Bearing in mind the United Nations Char end this foolishness over here. Aside from pair of chopsticks, and was urged to help ter, various treaties and the Soviet demands being opposed to the damn war, it really myself to the variety of dishes on the tray. for withdrawal of Israeli and United States gives me a case that LBJ, who claims to want I don't know what any of it was, but one troops from foreign teiTitories, it is legal and peace and who says he'll go anywhere, any looked like fish, another spinach, tomatoes, logical to demand withdrawal of Soviet time, to talk peace, has taken over a month and noodles. I sampled them all and still troops from Lithuania and from all the other without being able to find an acceptable site. don't know, but each bite tasted the same, Soviet-occupied and exploited. countries. Anywhere, according to his promise, ought super-salty, and each bite made me feel like Lithuanians demand a Soviet withdrawal to be "acceptable." vomiting. I ate as little as I thought polite, and appeal to the free world for assistance. managing to avoid throwing up. As soon as Their cause for freedom and independence, DEAR SuSAN: I realize that I'm a little late, I finished, I got up, bowed to the family, of which they are forcibly deprived by the but I want to wish you a Happy Easter. thanking them profusely for the delicious Soviet Union, is just. As you'll probably know by the time you meal. I left them and as soon as I got around PETRAS P. DAUZVARDIS, get this, I picked up a Purple Heart the other the corner of the house, I blew lunch all over Consul General of Lithuania. day when I got hit with about twenty pieces the place. of .shrapnel from a mine explosion. The mine MIKE. killed one man and wounded ten, including four quite seriously. I was lucky, I suppose, MAY 11. LABOR ECONOMaST SPEAKS OUT to get off quite lightly. DEAR MR. AND MRs. RANSOM: It is With AGAINST IDGH INTEREST RATES You know whair-this mine incident has great di11lculty that I write this letter ex changed me. I'm still as opposed to the war pressing my deepest sympathy over the loss on moral and political grounds as ever. But of your son Roberir-known as Mike to us. HON. WRIGHT PATMAN since I am here, and when I see the gory I have never written a letter like this before, OF TEXAS mess that mine made of my people, I want but then, in my six years of nursing I have IN THE HOUSE OF REPRESENTATIVES revenge. I want to kill every little slant-eyed never met as courageous an individual as your bastard I see. I just wish to hell the VC would son. Monday, February 17, 1969 come out and fight. We never see them, just I was able to care for Mike daily and I their damn mines and booby traps. Do you want you to know that his sense of humor Mr. PATMAN. Mr. Speaker, many o-f know that in the month I've been with this and will to live made my work much easier. the apologists for the Federal Reserve company we've had over thirty people killed Things he could no longer do for himself System and the banks cling to the theory or wounded and we haven't seen a dink or like brushing his teeth-things that surely that high interest rates are a guard fired a single shot. brought him discomfort--like turning him against inflation. It is now two days after I started this and brought only thank-yous, humorous remarks, This is one of the biggest fallacies that I'm back in the field again. I'm in the middle a gleaming smile, or a twinkle from his eyes. is spread about our monetary system. of reading an interesting piece in the March Mike fought hard, terribly hard, to over High interest rates contribute to infla Harper's called "From the Steps of the Penta come his body's wounded condition. But, gon," by Norman Mailer. It's about the events strong as he was, his body could only endure tion; they do not diminish it. which happened before, during, and after the so much. Mike was never afraid and although This point was recently brought out by March for Peace you went on last fall and at I'm sure he realized what was happening, a leading economist, Nat Goldfinger, in which .! 'gather Mailer made quite an ass of he never, never lost his smile or his courage. a nationwide broadcast. Mr. Goldfinger, himself. What else is new? Regardless, it's I guess I really wanted you to know that who is director of the department of re quite well written and I don't know if his Mike did not die alone, with no one caring. search for the AFL-CIO and a highly re views correspond to yours, but I recommend I care, we all cared-we all share your sorrow. spected economist, put the issue squarely: it to your reading pleasure. Be ever so proud of Mike! Needless to say, the life I lead is fairly Most sincerely, We've had interest rate increases for almost miserable. But there are a lot of compensa CONNIE SCHLASSER, the past 12 months now. Those interest rates tions in the "thank heavens for small pleas Captain, ANC, 2nd Surgical Hospital MA. get built into the price structure and are an ures" department. For instance, you can't inflationary factor. Many economists believe believe how great it is to get coke with our that the surtax adopted last year, which resupply each night. The coke is hot and it's FOR FREE LITHUANIA siphons about $11 billion in additional taxes been so shaken up by being thrown on and from consumers and businesses, would grad off of the choppers that you invariably lose ually slow down the economy a bit, and slow half of it when you open it, but it tastes just HON. JOHN C. KLUCZYNSKI down the rate of price increases. If the monetary managers of the Federal fabulous. Another thing is ice cream, which OF ILLINOIS we get about once a week for chow; again Reserve System wanted to act in the mone it is usually melted and warm, but it's ice IN THE HOUSE OF REPRESENTATIVES tary area, they could increase the reserve cream and it's yummy. Probably the greatest Monday, February 17, 1969 requirements on banks without directly in morale builder of all is mail. A word from creasing interest rates the way they have home which can sail you millions of miles Mr. KLUCZYNSKI. Mr. Speaker, under been in the past several months. The increase away from Vietnam. Of course, though, Viet unanimous consent to revise and extend of interest rates not only has a discouraging nam is actually quite a beautiful place. If my remarks in the RECORD and include effect on economic expansion, it gets built in. we weren't at war, this would probably be extraneous matter, I submit the follow Mr. Speaker, these comments were quite a nice assignment. I imagine that when ing: made on Mutual Broadcasting System's this idiocy is finished the truce will allow FOR FREE LITHUANIA program, "Labor News Conference". I for several U.S. bases here. Most of our bases February 16 is the 51st anniversary of the now are right on the South China Sea which place in the RECORD a copy of the trans declaration of the restoration of independ cript of this broadcast. is, like most oceans, beautiful. I think there ence of Lithuania. Free Lithuanians through fore that you'll see lots of people requesting out the world observe this event annually [From Labor News Conference, Mutual tours in Vietnam. with commemorative affairs and with mixed Broadcasting System, Jan. 14, 1968] I had a funny experience last night. I'm emotions of pride and sadness. Subject: Current Economic Trade. sure you're familiar with Orientals and the Lithuanian pride is based on the progress Guest: Nathaniel Goldfinger, director of importance of face. My platoon was holed up made and prosperity enjoyed during the the Department of Research, AFL-CIO. for the day in a village with three or four short-lived period of freedom of Lithuania; Reporters: William Eaton, Washington cor people in a hooch. I babysans. In the late the sadness for the deprivation of that free respondent for the Chicago Daily News, and afternoon we got resupplied with hot chow, dom and Lithuania's present tragic plight. Frank Swoboda, labor correspondent for and I was sitting down on the front porch Lithuania was declared an independent United Press International. with my hamburger, beans, potatoes, and ice state Feb. 16, 1918. Soviet Russia recognized Moderator: Frank Harden. cream, which doesn't sound that great, but it as such by the treaty of peace signed July HARDEN. Labor News Conference. Welcome after eating C rations for the previous two 12, 1920. However, in June, 1940, Russia to another edition of Labor News Conference, meals this was to have been quite a treat. forcibly seized Lithuania and shortly there a public affairs program brought to you by No sooner had I sat down than Papasan comes after incorporated it into the Soviet empire, the AFL-CIO. Labor News Conference brings out of the house and motions for me to come in violation of international law and against together leading AFL-CIO representatives inside, which I did. The family was just the will of the Lithuanian nation. and ranking members of the press. Today's 3570 EXTENSIONS OF REMARKS February 17, 1-969 guest is Nathaniel Goldfinger, director of the be modification or elimination of the sur of prices. In 1968, consumer prices increased AFI..rCIO's Department of Research. charge? about 4.7 percent and, as you say, this was The vigor and direction of the nation's GoLDFINGER. Well, there hasn't been a de ·a faster rise tha.n·tn the past 15 years or so. economy is a vital concern to Americans in cision as yet, as to the continuation of the There are other ways of getting at the all walks of life. Here to question Mr. 9-old surtax, which amounts to about $11 billion problem of price increases, particularly when :finger about the performance of the nation's additional taxes on both individuals and a good share of the price increases are in economy at this time are Frank Swoboda, companies. The surtax is due to go off in the areas such as medical care, hospital care, labor correspondent for United Press Inter middle of the year. The final decision wlll auto and property insurance rates. There are national, and William Eaton, Washington be made by President Richard M. Nixon, after different and better ways of doing it, than correspondent for the Chicago Dally News. he takes omce, by the House Ways and Means slapping on unprecedented peak interest Your moderator, Frank Harden. Committee, and by the Congress itself. That rates, one after the other. And now, Mr. Eaton, I believe you have the issue is still up in the air. Social Security We've had interest rate increases for al first question? payroll taxes have gone up $1 7'2 billion per most the past 12 months now. Those interest EATON. Mr. Goldfinger, this is the tradi year on employees and a similar amount on rates, get built into the price structure and tional time for sizing up the economy, and companies. are an inflationary factor. Many economists this year we have a new Republican Presi But, in any case, Mr. Swoboda, regardless believe that the surtax adopted last year, dent. What is the outlook for prices, interest of what the Administration and the Congress which siphons about $11 billion in additional rates and unemployment? do, the surtax-which is now collecting at an taxes from consumers and businesses, would GOLDFINGER. Well, Mr. Eaton, at the mo annual rate of about $11 billion, as I said, gradually slow down the economy a bit, and ment, the central factor, in the economy is from people and companies-is in effect for slow down the rate of price increases. uncertainty about where it's going. the first half of the year-it is on the books If the monetary managers of the Federal Some observers talk of a continuing rapid and going. In addition, the Congress passed Reserve System wanted to act in the mone growth of sales, production and employment, a law last year that puts a very strong lid tary area, they could increase the reserve with prices continuing to rise rather rapidly. on the increase of government expenditures. requirements on banks without directly in Others see a slowing down of economic So, all of these things dampen-down the ex pansion of sales, production and employ creasing interest rates the way they have expansion-at least, in the first half of the been in the past several months. The increase year-with a slowing down of the pace of ment. And, on top of all that, we have this new factor of very high interest rates-un of interest rates not only has a discouraging price increases. effect on economic expansion, it gets built in. Still others see a recession in the months precedented interest rates-and a squeeze on bank credit. Let's take a practical example. ahead. If you go out to buy a house now, Mr. As I look at it, I'm still in the middle SwoBODA. I think that when people talk of prime interest rates and commercial banks, Eaton, and get a 20-year mortgage at the group, expecting a slowing down of the rise very high rate of 7% percent, you are going of sales, production and employment in the there is some confusion. What exactly does it mean to the consumer? to be paying that 7¥2 percent interest rate first half of 1969, and some easing of price month after month after month-for twenty · increase pressures during the course of the GoLDFINGER. Well, the prime interest rate is the rate of that the commercial banks years-unless you are fortunate enough, at year. some later point when interest rates are But the record-high interest rates of the charge their richest and biggest customers the richest and biggest corporations. For in lower, to refinance the house. first half of January-at the very beginning The point I'm getting at, is that once in of this year-and the expectation of a squeeze stance, General Motors and General Electric would pay that seven percent prime rate. terest rates go up the way they are, they of bank credit, spell, it seems to me, a get built into the price structure and into d anger of recession. I'm still not convinced However, a seven percent prime rate for them is an understatement, because on big the structure of the amount of money that of that, but I think that there is the danger people spent month after month on rent, on of that kind of development. loans, the banks also require that 20 percent of the loan remain in the banks as an in mortgage payments, on installment payments For example, the New York Journal of on cars, installment payments on television Commerce of January 8, states that the rise terest-free deposit. So in truth, the effective prime rate now, is not seven percent, but sets and the other things they buy. of the prime interest rate-the rate charged EATON. What federal government action by banks to their richest and best credit seven percent plus that 20 percent deposit. risks-up to an unprecedented seven per That makes the effective actual prime inter might be taken to try to lower interest rates? cent, would tend to accelerate a coming busi est rate now, 8.4 percent. Would balancing the federal budget be one ness recession. Well, if the biggest and richest corpora way of taking the pressure off? As I said, I am still in the middle group, tions in the country are paying, in actuality, GOLDFINGER. Well, Mr. Eaton, the govern expecting a slowing down of the rise of sales, an 8.4 percent interest rate, I don't think it ment has moved in that direction. That was production and employment, and an easing takes much imagination to see what kind of the purpose of the adoption of the surtax of price pressures during the course of the interest rates mediumsized businesses and the additional taxes-the temporary tax in year-hopefully, without the onset of a reces small businesses, and farmers, home buyers crease on consumers and companies. The sion. and consumers will pay. government's budget actually is moving EATON. With interest rates-prime rates Let's just take mortgage rates. Mortgage rapidly toward balance-perhaps, even to going to seven percent, what is ahead for rates have moved very high. At the end of ward surplus at, this point. the average consumer seeking a bank loan on 1968, mortgage rates were already up to about Because of that factor, many economists a car or house, and, how long do you believe 7¥-l to 7% percent, for the country as a believe that gradually, economic expansion this "credit crunch," as it is called, will last? whole-somewhat lower in some places and would begin to slow down, on an orderly GOLDFINGER. Oh, I'm afraid, Mr. Eaton, that higher in other places. basis, over a period of time, and that the thP. way things are going now, the "credit With this new seven percent prime rate, price pressures would ease. crunch" could last two or three months, or the interest rate on mortgages will now go In addition to all of those factors, the longer. up toward eight percent and more, for the very rapid increases of military expenditures For the average consumer buying a car, country as a whole. the past three years now appear to be over, or television set, or anything on installment All of these already high interest rates and military expenditures have leveled off. credit, interest rates are going higher than move up even higher. Loans, for example, for So, there are all kinds of reasons for ex they have been-and they have been in the medium and small businesses, which in re pecting some slowing down of economic ex area of 12 to 18 percent, and more. cent months have been about eight to ten pansion, and some easing of price pressures, They are going up--interest rates are going percent or so, will move even higher. on an orderly basis, without this exception up on everything. Interest rates on installment loans to con ally unprecedented kind of increase of in The sad part of this story is, these high sumers, which have been running around 12 terest rates. int erest rates get built into the price struc and 18 percent, will move a lot higher. And, SwoBODA. Well, Mr. Goldfinger, President ture, so they increase the price of every these increasing high interest rates dis Lyndon B. Johnson recently said-predicted thing you buy. The businessman is paying courage the expansion of sales, production or estimated-that there would be a small higher interest rates; the warehouse fellow and employment, particularly home building, surplus in fiscal '69. He wouldn't say how is paying higher interest rates, and he passes which gets hit hardest and most immediately. much. This is opposed to a summer estimate this on. With the trucking company, the High interest rates also hit the plans of of a five billion dollar deficit. Part of it he transportation company, the retailer-all state and city governments to build hospitals, seemed to attribute to the fact that infla along the line this higher interest rate gets schools, roads, bridges and other kinds of tion was going at such a rate that it was in passed along to the consumer in the price public works. creasing incomes and so on so much, that structure. EATON. Mr. Goldfinger, as you know, prices revenues were coming in much faster. Is this And then the consumer gets smacked in in 1968 went up about 4.7 percent-the fast a cure, or are we just going in a circle? addition, Mr. Eaton, with a higher interest est one-year rise since the Korean War-and GoLDFINGER. No, I don't think that we are rate on installment credit. many businessmen and economists say that going in a circle. I think that the wise SWOBODA. Mr. Goldfinger, you say that you some severe action is needed to break the course is the orderly course. It may be a little are in the middle group--that you think back of inflationary psychology. WoUld the slower, but if you are gollig 80 miles an hour, the~e will be a slowdown early in 1969, or increase in the prime rate be an action that it is awfully dangerous to slap on the brakes. durmg the first part of 1969. Do you think would help to check the rise in prices? It is much wiser, if at all possible, to slow this is dependent upon continuation of the GoLDFINGER. Well, Mr. Eaton, I don't believe down .to 60, to 40, to 30, instead of slapping tax surcharge Or, do you think there could that this is the way to slow down the rise on the brakes, because you can go through Februa/ry 17, 1969 EXTENSIONS OF REMARKS 3571
the windshield. I think that the story of the er and higher profits to the banks, and WILLIAM SwiFT: MAY 22, 1895-FEBRUARY 5, national economy is somewhat parallel. higher and higher costs to their customers. 1969 The national economy has moved forward This builds up these pressures-long-term (By Bill Romwall) very rapidly over the past three years, and pressures, in many cases on consumers, such there have been some pressures in many mar as home buyers paying mortgages. SAN LEANDRO.-Wllliam Swift, 73, Councll kets, as a result of that rapid movement. EATON. If consumers had a choice, should man and a former mayor of San Leandro, Slapping on the brakes all of a sudden is they wait two or three months in hopes of died of an apparent heart attack in a San very dangerous, because there is the pos getting lower interest rates? Leandro hospital Wednesday night. sibility of going through the economic wind GOLDFINGER. I WOUld hope you are right, Swift came to San Leandro from Alabama in 1923, entering the service station business shield. Mr. Eaton. SWOBODA. Well, doesn't it appear that the I don't think that the current money which he conducted until his death. Federal Reserve Board, with its changes squeeze and very high level of interest rates He was appointed to the San Leandro City in the discount rate, is trying to do just can continue much longer than another Council Nov. 11, 1947, to succeed James F. that--slap on the brakes hard? couple or three months, because the present Groves who resigned because of advanced age GOLDFINGER. Well, they are trying to slap seven percent prime rate is utterly unprec and ill health. Groves urged the appointment on the brakes, although I'm sure that they edented. of Swift according to published reports of the would say that they are not slapping on the It's the highest prime rate on record. And time, because of Swift's devotion to the city brakes too hard. those records go back about 40 years. and his demonstrated unselfishness in un On top of that, the commercial banks are EATON. Do you believe that if it continues, official public service. moving up their interest rates, and as they it would lead to a recession? Councilman Helen Lawrence nominated did January 7, jacked up their prime rate to GOLDFINGER. As I Said at the outset, Mr. Swift for the appointment, also emphasizing seven percent. Eaton, I think that there is that danger-a her own knowledge of Swift's ability and deep So, it is partly private actions, partly the danger of a recession. concern for "what is best for the City of San action of the commercial banks, partly the I don't think that we are heading into a Leandro." action of the Federal Reserve System. recession at the moment, but there is much Swift was defeated for the council in the SwoBODA. But, wasn't it anticipated by the uncertainty, because on top of the surtax Seeley-Bellini-Dunnigan sweep of April 1948, Federal Reserve Board that this would hap adopted the middle of last year the tight which retired the incumbents of the day. His pen, once they increased the discount rate? lid that Congress placed on government ex vote was within 50 tallies of Halsey Dunnigan Didn't they almost count on that? penditures, we now have this money squeeze who just nosed him out with 2,205 votes to GOLDFINGER. Well, COinmercial banks in and rising interest rates. Swift's 2,155. creased the prime rate to their richest and HARDEN. Thank you, gentlemen. Today's Swift returned to the political fray in the biggest customers to six and three-quarters guest on Labor News Conference was Na hectic campaign of 195G-this time leading percent only a few weeks back. This is the thaniel Goldfinger, director of the AFL-CIO's all candidates in the heavy vote tally. Swift second increase within a few weeks. Department of Research. Representing the had been supported by all segments of the I think these unprecedented actions could press were William Eaton, Washington community-although he scorned being on a slate offered by the Seeley-Bellini-Dunnigan have some bad effects. correspondent for the Chicago Daily News, and Frank Swoboda, labor cor forces, including homeowner groups of the EATON. Mr. Goldfinger, aren't the banks time. Swift went about with a paint brush, saying that inflationary psychology is so respondent for United Press International. This is your moderator, Frank Harden, in obliterating his name from the posters and strong that they have to pay higher interest sign boards of the homeowner slate. rates in order to obtain money from deposi viting you to listen again next week. Labor tors for lending, and that therefore, they News Conference is a public affairs production However-the group supported him any must charge borrowers the additional in of the AFL-CIO, produced in cooperation way, His big plurality brought him the crease, because people have no faith that with the Mutua.! Radio Network. mayorship in April of 1950-a post he held until his resignation as mayor on May 7, their money will be worth as much if they get less interest on it? 1951. GoLDFINGER. Well, that is one of the reasons WILLIAM SWIFT: A GREAT SAN Swift said his own modest abilities as the they give. I'm not sure how valid that is, LEANDRAN city's chief political officer were secondary to Mr. Eaton. The increase in consumer loans those of other council members, including has begun to slow down, you know-the those of his close friend Thomas 0. Knick. number of loans. And I think there are fairly HON. GEORGE P. MILLER In subsequent campaigns Swift continued clear reasons for that. Look at what's been OF CALD'ORNXA getting wide support of homeowners as well as industrial and commercial interests-al happening to the real purchasing power of IN THE HOUSE OF REPRESENTATIVES worker's wages. There is a slowing down on ways gaining voter endorsement of his poli the consumer side. Monday, February 17, 1969 cies by wide margins. There still is a boom psychology in parts He was named vice-mayor on April 21, 1964, Mr. MILLER of California. Mr. and served in this post until April of 1966. of the business community. This is depend Speaker, on February 5, 1969, the city of ent--unfortunately dependent--on very high Swift was last re-elected April 12, 1966, to profits and high cash-flow. Many companies San Leandro, Calif., which comprises a four year term on the City Council. are just loaded with cash, building up in part of my congressional district, lost In his 21 year stretch of service Swift saw ventories and continuing to increase their one of its most respected citizens by the many political reforxns affect his city-most investments in new plants and equipment, death of Councilman William Swift. of them supported by him. Included were the and in modernization. Now, these are factors "Bill," as he was known to a host of council district plan and the direct election in the whole scene. friends, held one of the longest and most of the mayor, a.long with adequate compen EATON. Well, Mr. Goldfinger, do you feel sation for the office. outstanding records of public service in Swift was a close friend and the political that the Federal Government can take any the history of the city of San Leandro action other than it has by way of Federal mentor of the present San Leandro Mayor Reserve actions-to try to lower interest and of the county of Alameda. He was Jack D. Maltester. rates? For instance by raising the amount for 21 years a member of the city coun It was soon after Swift's own appointment of money banks must have in reserve? Or, cil, serving as mayor during one of his to the City council that Maltester was ap would your position be that the surtax terms. He also servec on numerous other pointed (January of 1948) to the Council to should be continued, to make some moderate official, semiofficial, and community succeed the resigned Helen Lawrence--and slowdowns? boards and commissions, always giving the move was made by Swift. GOLDFINGER. Well, the surtax is in the freely of his time and talent to the wel Maltester said yesterday he had known works, at least until the middle of the year. Swift since he (Me.ltester) was a lad of ten fare of the city he loved. years of age--and considered him "almost Whether or not it should come off depends I am privileged to have known him as on economic trends between now and then. as a father, especially in recent years." The a friend for about 30 years. I found him If the economy goes in to some kind of Mayor said he was "deeply shocked" at Swift's tailspin or into a very sharp slowdown or to be a humane and compassionate man, death, and expresed what seexns the universal recession, obviously, the surtax should go off. always conscious of his public trust and thought among Swift's friends-the great But this would have to be examined later responsive to the needs of the people he sense of obligation Swift felt toward his City in the Spring, for example--to see how the served. of San Leandro and its citizens. trends are going. To his wife, Elizabeth, his children, Gus Gustafson, the City's Community Re The Federal Reserve system could increase others of his family, as well as his many lations Director, and a long time area news paperman prior to his city service, said he reserve requirements on commercial banks, friends, I wish to extend my sincere sym in order to make it tougher to lend money. has known Swift since 1938. "He was one ot You see, the way the banks are going at this pathy. the sweetest guys I ever knew. He had com point, they are lending money, and they At this point in the RECORD, I submit plete integrity." seem-at least to the present time--they an article which appeared in the San Perhaps Swift himself declared his public seem to have rather ample funds. Leandro Morning News, which recites service credo best at the time of his original But when they lend that money at a high some of the accomplishments of "Bill appointment in 1~47: er and higher interest rate, that means high- Swift: A Great San Leandran" : "I came to San Leandro in 1923 without a 3'572 EXTENSIONS OF REMARKS February 17, 1969 nickel. Everything I have I owe to the people "Of America. have yet to come, the President shows of San Leandro, who have been very kind to "And to the Republic---e. state in which evidence of buoyancy and orderliness of mind. me and to my family. Now I want to serve sovereign power is invested in representatives Agree or not, there 1s already testimony them and the City a.s best I can to try to chosen by the people to govern. And govern at hand that President Nixon is amply pre repay them." ment is the people and it's from the people pared for the White House tasks which lie Swift was a quiet, unassuming man-<>ne to the leaders, not from the leaders to the ahead. Service in both the House and the whose voice and manner grew lowest and people. Senate, eight years as Vice President under softest when his dander was highest. "For which it stands. Eisenhower and extensive world travels have And he could get that dander up on oc "One nation-meaning, so blessed by God. given Nixon a wide range of experience. casion--especially when he felt "special in "Indivisible--incapable of being divided. His ability to rise again after two pre terest boys and girls" were trying to "high "With liberty-which is freedom and the sumably disastrous political defeats shows pressure this Council" toward moves against right of power to live one's own life without that he has resiliency and toughness of the broad public weal. threats or fear or some sort of retaliation. spirit. Though President Nixon's judgments Swift is survived by his wife Elizabeth and "And justice--The principle or quality have been and will be challenged, his ability children Mrs. Elizabeth Kruger and Philip L. of dealing fairly with others. and willingness to make them cannot be Swift of Fremont; C. Shuford Swift of San "For all-which means it's as much your questioned. Diego; William Swift Jr., of St. Bernard, country as it is mine." How then, does his performance to date Louisiana and David H. Swift of Sharon, Since I was a small boy, two states have look from here as we peer intently at Key Mass. He was grandfather of 12 and the great been added to our country and two words Biscayne where the President 1s currently grandfather of two and is survived by three have been added to the Pledge of Allegiance- in residence? brothers and two sisters in Alabama. "under God." In a word, excellent. He wa.s a member of the Lion's Club of Wouldn't it be a pity if someone said, As the Detroit Free Press has said, "Richard San Leandro; Eden Lodge No. 113 of Masons; "That's a prayer" and that would be elim Nixon has quite deliberately set out to slow the Royal Arch Masons, Chapter 66; San inated from schools, too? down the frenetic pace of life in the White Leandro Post No. 117, American Legion and House, with an eye toward calming the the Broadmoor Men's Club. country down a bit by his example. But even He was a native of Heflin, Alabama. with the dominant themes of calm and cau Services will be held Saturday, Feb. 8 at tion, he has also indicated that he considers 1:30 p.m. from the Rose Garden Chapel of MR. NIXON HAS MADE AN the way open to some bold new initiatives in the Guerrero & Seramur Mortuary, 407 Estu EXCELLENT START foreign policy." dillo Ave., San Leandro. We have liked, for instance, the decision to re-examine the questionable "thin" anti HON. WILLIAM H. AYRES ballistic missile system favored by Defense oF omo Secretary Melvin Laird. TRffiUTE TO RED SKELTON The deployment of the Sentinel missile IN THE HOUSE OF REPRESENTATIVES sites near our large cities is fraught with Monday, Feb1·uary 17, 1969 danger. As Sen. Edward M. Kennedy has HON. ELIGIO de Ia GARZA warned, an accidental explosion of a nuclear Mr. AYRES. Mr. Speaker, Mr. JohnS. tipped missile would cause "total devastation OF TEXAS Knight, of the Knight newspapers, has in an area of five miles in diameter, and IN THE HOUSE OF REPRESENTATIVES written a very thoughtful editorial note serious destruction over a far greater area." Monday, February 17, 1969 book on our new President, Mr. Nixon. The "thin" anti-missile project is designed The editorial follows: to bring down presently non-existent missiles Mr. DE LA GARZA. Mr. Speaker, these from Red China. The cost may be as high remarks are dedicated to Red Skelton, [From the Akron Beacon Journal, Feb. 9, as $9 .4 billion. A "thick" system to stop mis a great comedian, a great mimic, the 1!:!69] siles from Russia might cost as much as king of pantomime, a great actor, a great Mr. NIXON HAS MADE AN EXCELLENT START $100 billion. And no one can be sure that him (By John S. Knight) either system would be effective. American, a great man. We know We approve the President's belated deter as a clown; he makes us laugh and cry, From my office windows overlooking Bis mination to approve the nuclear non-prolif and cheer and laugh again and cry cayne Bay, there are many wondrous sights eration treaty as a symbol of U.S. willingness again, all in the space of 1 hour. His to behold. On a single day, one may see porpoises to cooperate with the Soviet Union on arms many faces have become a part of the playing in the blue waters or an occasional limitation. American scene, for he is truly America's sea cow, wise old pelicans diving for unsus Mr. Nixon had previously endorsed the own, and we love him and respect him pecting mullet and sea gulls following the treaty last Fall but opposed its immediate because he respects us and our families, yachts and fishing boats in search of a pisca ratification by the Senate because of the but also because he is a great American. torial snack. Soviet invasion of Czechoslovakia. On the Red Skelton Hour of January 14, There, too, are weather helicopters and the We cheer his announced five-nation tour of 1969, the following took place, and we takeoffs and landings of amphibian planes Western Europe which is intended to proudly quote: near the MacArthur causeway, the Goodyear strengthen NATO and to exaxnlne the pros blimp and, at circus time, a parade of ele pects for a later Suxnmit meeting with So [From the Red Skelton Hour, Jan. 14, 1969] phants ambling across the Venetian cause viet leaders. THE PLEDGE OF ALLEGIANCE way to Miami Beach. We applaud the President's announcement I remember this one teacher. To me, he In late afternoon the passenger ships steam that all postmaster and rural letter-carrier was the greatest teacher, a real sage of my through the channel and Government Cut appointments are to be removed from the time. He had such wisdom. We were all to the Bahamas, cargo vessels are in moor political patronage system. Also his state reciting the Pledge of Allegiance, and he age at Miami's new seaport, the sightseeing ment that it is time "to take politics out of walked over. Mr. Lasswell was his name... boats accommodate an endless supply of the Post Office Department" and end moxe He said: curious tourists. than 190 years of congressional and party "I've been listening to you boys and girls Yet since the election of 1968, it 1s not infl.uence on the selection process. recite the Pledge of Allegiance all semester these diverse attractions alone which divert Under the new system, the Civil Service and it seexns as though it is becoming monot our attention from the labors of producing Commission will sponsor competitive exami onous to you. If I may, may I recite it and the South's largest daily newspaper. For the nations for all postmasters and rural carrier try to explain to you the meaning of each naked eye can look to the Southeast and see vacancies. Incumbents will not be affected word: beautiful Key Biscayne where Richard Mil by the ruling. "I-me, an individual, a committee of one. hous Nixon has through the years bathed his We believe the President is showing com "Pledge-dedicate all of my worldly goods political wounds and then rejoiced in the mendable restraint in the Middle East, a to give without self-pity. ultimate triumph for which, perhaps, he was situation he has described as a "powder keg." "Allegiance--my love and my devotion. always destined. Our obligations to Israel must not deter the "To the Flag-<>ur standard, Old Glory, a Key Biscayne is to President Nixon what United States from attempting to achieve a symbol of freedom. Wherever she waves, there Johnson City was to LBJ, a place to relax and better understanding with the Arab world. is respect because your loyalty has given her work, to gather together one's thoughts on No one wishes to jeopardize the security of a dignity that shouts freedom is everybody's the great issues, to consult with the archi Israel, unless the United States can be an job. tects of vital policies in the making. effective force with both sides to this con "Of the United-the means that we have Few men would care to be under the flict, the strong possibility exists that an,. all come together. staggering responsibilities and heavy work other and more tragic war may be in the "States-individual communities that have load which the voters have placed upon the making. united into 48 great states. 48 individual new President No one profits from war, not even the vic communities with pride and dignity and But not Dick Nixon, to whom victory tors. And why cling to the dead-end policies purpose, all divided with imaginary bound last November was the culmination of all of the past which have failed miserably in aries, yet united to a common purpose, and his hopes and ambitions. Though his ad the pursuit of peace? that's love for country. ministration 1s young and the severe tests We commend the President's interest ln February 17, 1969 EXTENSIONS OF REMARKS 35TJ
the plight of the cities and his indicated BUDGE."'!' Is PLAcE To START shoveled into the general fund of the Treas personal involvement in these problems. (By Henry J. Taylor) ury and spent. The cash thus borrowed from Here again there are no easy solutions but President Johnson prepared a $195.3 bll us is spent and is replaced with government the total problem is at least getting a new Uon budget and now President Nixon-and bonds, i.e., IOUs. Meanwhile, the House payroll has gone up look. the taxpayers-are stuck with it. In the We praise the appointment of Dr. James same tiresome words he used in previous 84 per cent in the past seven years. And, even E. Allen Jr., as U.S. Commissioner of Educa years, the outgoing President said there before their last mighty boost, the congress tion. Dr. Allen comes to Washington With would be a surplus. But it never works out men have been steadily raising their own sal a fine record in New York State and Will that way. This so-called budget just grabs aries, voting themselves their own self-pro pursue established school integration guide at our money like a starved man at the tection against the inflation the overspending lines with unmistakable vigor. sound of a steak sizzling in the pan. pumps into our cost of living. We are less enthusiastic over Nixon's ap What happened to President Johnson's A Congress so busy boosting its pay may be pointment of Alaska's Gov. Walter Hickel as famous "under $100 billion" budget? That too busy to tear this latest so-called budget Secretary of the Interior. One colloquy in the was only as long ago as 1965. Here's a $95.3 to pieces. But the 91st Congres~o full of Senate hearings on Gov. Hickel's confirma billion difference in just four years. That's promises during the campaign-should hear tion will explain: ridiculous, on the face of it-and so are the from the taxpaying peasants with an instant Sen. Metcalf: How are public service com deficits. We pay them, and the millions of roar. missions in Alaska selected, Governor? dollars in daily interest on the debts. This Every place I go in the country the people Gov. Hickel: I think they are-gee, I should interest alone costs us more than six times are sick and tired of officeholders who say know that. I think they are appointed, and as much as our people's annual clothing bill. they'll do one thing and do another. This is are they confirmed by the Senate? But the Washington windbag boys prefer put-up-or-shut-up time and the so-called Sen. Metcalf. The Governor appoints them? to be irresponsible-it's easier-and show no budget is the place to start. Gov. Hickel: I think that is right. I think more concern for who foots the bill than there are guidelines, however. How do I do for the tortoises of Aldabra in the Indian that? I can get the information for you, Sen Ocean. ator, but I just don't have it at my fingertips. What has happened to all the promised DRIVE FOR TAX REFORM PICKS UP These hearings were called by one wag "the cutbacks in federal payrollers? The payroll STEAM Wally Hickel nobody knew about-and maybe increased 50,000 in 1965, the administra still doesn't." tion spent $120 billion instead of the $100 But Wally Hickel will get his chance to con billion, and this is the pattern all the way HON. JOEL. EVINS fuse the critics, along with Vice President through. Although tax collections were at OF TENNESSEE Spiro T. Agnew. Moreover, whoever heard of an all-time high the official federal deficit Bowie Kuhn, the new commissioner of base in the past year was $25.4 billion. Even so IN THE HOUSE OF REPRESENTATIVES ball, until last week? the books were juggled by $4 billion to make Monday, February 17, 1969 Secretary Hickel has an opportunity to the red ink look less to us. Mr. EVINS of Tennessee. Mr. Speaker, establish himself as a stand-up conserva MISLEADING tionist if he cracks down on offshore oil the movement for tax reform is gather drilling which has fouled the beaches, de Among other totally misleading abuses be ing momentum. The distinguished chair hind the scenes, the outgoing administra stroyed the sea birds and ruined fishing in tion applied the excess of government trust man of the Committee on Ways and Santa Barbara, California. funds receipts over outlays. This little dust Means, the gentleman from Arkansas A year ago, the Johnson administration in-our-eyes abuses makes the deficit look
1s reduced as the direct interest subsidy be market for local school and sewage faclUty lion; West Virginia., $2.30 million. The sav comes less-but low rates of direct interest bonds. The arbitrage principle, it would seem, ings for the central counties of the big three subsidy do not seem to be politically accept it not exactly new. All we are really sug SMSA's would have been (in 1962) : New able.U~ gesting is th.a.t it be recognized as a.n im York City. $24.82 million; Chicago. $12.28 ADDITIONAL BENEFITS portant instrument of public policy and be million; and Los Angeles, $9.10 m1111on. See The arbitrage proposition put forth herein used on a large enough scale to significantly Compendium oj Government Finances, op. can be expected to yield other benefits. Data reduce the cost of public services at all levels cit., Table 33, and U.S. Bureau of the Census, presented to the Joint Economic Committee of government. · Census of GQvernments: 1962, Volume 5, show that the adjusted interest costs for FOOTNOTES Local Government in Metropolitan Areas medium-sized municipalities were less for 1 David J. Ott and Allan H. Meltzer, Federal (Washington, D.C.: Government Printing every grade and every year from 1961-1965 Tax Treatment of Local Securities (Wash Office, 1964) , Table 12. than those for smaller munlcipalities.u ington, D.C.: The Brookings Institution, 12 This is likely to be a. maximum gain to S1milar findings have been observed 1n 1963), p. 1. Lucille Denlck, "Exemption of the Treasury since some banks might prefer connection with corporate bonds which are Security Interests from Income Taxes in the to hold U.S. Government obligations rather generally assumed to provide the best indi United States," Journal of Business, Vol. 19 than taxable municipals. Substitution of low cation of probable interest rates for munic (October, 1946), Part 1, App., listed 114 res yielding governments would lower the tax re ipals in the absence of tax exemption.u olutions introduced between 1920-1943 to re ceipts from bf.D..ks proportionately more than After ta.k.ing financial leverage and the de duce the subsidy. Cited in Ott and Meltzer. the gain in receipts from corresponding fault records of corporations explicitly into 2 Ott and Meltzer, op. cit., p. 15. changes in the portfolios of persons with account via multiple regression, Fisher 3 National Tax Association, Proceedings lower marginal tax rates. found that corporations with a. larger vol (1941). p. 195. 13 One of the criticisxns of s. 3206 was that ume of debt outstanding were able to borrow ~ Sec. 202 and 204 contain the specific pro a 25 percent interest subsidy-the maximum at significantly lower rates than corporations posal of interest payments by the national permitted under the bill-might not be suf with lesser amount of outstanding debt. He government in lieu of the tax free provision. ficient to fully compensate for the loss of attributes the lower interest rates to in 5 U.S. Congress, Subcommittee on Air and tax exemption. This point was emphasized in creased marketabllity of dEbt issues.1e Water Pollution of the Committee on Public the Hearings of the Water Pollution Control The financial economies associated with Works, United States Senate, Ninetieth Con Act by James Lopp of Eastman Dillion, op. debt issues which are large enough to create gress, Second Session, Hearings on S. 2525 cit., p. 666. an active secondary market are probably one and S. 3206, Part 2, p. 509 and p. 542. 16 State and Local Public FaCility Financ of the more important factors helping to ex 8 Hearings, op. cit., p. 548. ing, op. cit., p. 329. 7 15 plain the conglomerate merger movement.u The cost effectiveness calcula.t!ons assume Moody's • Aaa corporate bonds have These financial economies are a. kind of sav that the Federal Reserve will try to stabilize yielded 25 to 70 basis points more than tax ing which could be channelled a.utoma.tica.lly the U.S. government bond rate at the average able government bonds during the last dec to small communities if the Federal Govern rate for 1964-1967. Part of the savings to the ade. (One hundred basis points equals one ment were to bid on local bond issues. Our Federal Treasury might be lost if arbitrage percentage poin~) arbitrage proposition provides a revenue in led to an increase in the Federal borrowing 10 Lawrence Fisher, "Determinants of Risk centive for Federal Government participa rate; this loss would be partially offset, how Premiums on Corporate Bonds:• The Journal tion and thus a reason to seek these second ever, if persons in high tax brackets sub of Political Economy, 67 (June, 1959), p. ary savings. stituted corporate bonds for municipals. See 217-37. Another benefit might be achieved by re footnote 10. 17 Edward F. Renshaw, "A Note on the structing State-local government debt to take Whether the Fed does strive to stabilize Theory of Financial Leverage and Conglom advantage of an upward sloping yield to the government borrowing rate at some nor erate Mergers," to be published in the next maturity curve. Stable tax revenues and fixed mal level, on the average, is a matter of issue of the California Management Review. flotation costs make it convenient for local conjecture. 18 R. J. Kalish and D. J. Reeb, "Metropoli governments to enter the bond market in Our assumption, in other respects, are tan Resources in a Policy Matrix," Natural frequently and otTer mainly serial bonds. The really quite conservative. Interest rates on Resources Journal, next issue, discusses a. national government with its large volume State and local bonds have risen much more matrix for regional public policy. of outstanding debt is in a better position to rapidly in recent years than the Federal boT 1o Council for the open market committee enter the bond market frequently and re rowing rate. Since the percentage differential has offered an opinion that Title 12, U.S. structure its debt to take advantage of lower has narrowed, the savings to State and local Code, Sec. 355 would have to be amended to yields on short term securities. governments would be substantially greater permit the Federal Reserve to purchase mu The arbitrage device could also become an if we had chosen to use current interest rates nicipal bonds. instrument for public policy implementation. rathc;r than the average rates prevailing over 20 Public Law 345, 84th Cong.• 69 Stat. 642; While this paper a.iSSumed an interest dif the longer, and perhaps more normal period 42 U.S.C. 1941. Political subdivisions having ferential of 40 percent, it could be a range from 1964-67. The saving estimates are also populations up to 150,000 may qualify if lo of differentials, e.g., between 20 and 40 per based on the average rate of S & P's high cated in a redevelopment area designated by cent depending on the degree of social need. grade municipal bonds. If the fiscal author the Public Works and Economic Develop Specific national goals could be furthered ities arbitraged revenue bonds and low grade ment Act of 1965. Population limits do not by making bid prices for local bonds vary by municipals, the savings to State and local apply to communities located near a research local government function or by the unem governments would be very much greater. It and development installation of the National ployment rate and per capita income level of is doubtful, therefore, that a full equilibrium Aeronautics and Space Agency. aregion.u analysis would necessarily mean lower total savings to all levels of government than are IMPLEMENTATION suggested in this paper IMPROVING THE MARKET FOR MUNICIPAL BONDS The calculations in this paper have as 8 Hearings on S. 2525 and S. 3206, op. cit., (By Edward F. Renshaw) sumed that the Federal Reserve might be p. 567. The purpose of this note is to provide given the responsibility to implement a policy • U.S. Congress, Joint Economic Committee, background statistics which indicate a grow of financial arbitrage. It now holds about 50 State and Local Public Facility Financing ing need to broaden the market for munici billion in taxable government obligations (Washington, D.C.: Government Printing Of pal securities. Since most of the alternative which are not needed for open makret opera fice, 1966), Vol. 2, p. 16. ways of attracting new participants into this tions and could be sold to improve the 10 If part of the U.S. Government Bonds are market require either legislation or signifi municipal bond market if section 14B of the sold by the fiscal authorities to people in cant institutional changes, it. would seem Federal Reserve Act were amended.19 A second lower tax brackets and they sell higher yield imperative that public officials at all levels alternative would be to permit the Treasury ing taxable asset.s, such as corporate bonds, of government begin to consider steps that to exceed the statuatory debt limit in imple to those who would otherwise purchase tax might be taken to improve the market for menting a policy of municipal arbitrage. A exempt securities, the tax receipts collected municipal bonds. third alternative would be to create a special by the Treasury would be greater. The sub corporation like that proposed in S. 3170. HISTORIC YIELDS: THE FIRST INDICATION stitution of common stock for tax exempt OF NEED It might be noted, by way of conclusion, bonds could lead to capital gains which that the Housing Act, as amended,:o has would be taxed at a lower effective rate than The yield on S & P's high grade municipal specifically authorized the Department of 40 percent. This sort of substitution would bond index rose to over four and one-half Housing and Urban Development to purchase increase portfolio variance and be incon percent in March, 1968, and is still providing the securities and obligations of, or make sistent with rational management if the a return of more than four and one-quarter loans to, cities, towns, villages, townships, portfolio was efficient before the substitution. percent. This tax free return is quite a. bit and counties with populations under 50 000 Since banks are generally prohibited from larger than the four percent return on ordi if such political subdivisions cannot se~ur~ holding common stocks, this exception is nary time deposits a.t commercial banks. It is credit at "reasonable terms and conditions" rather academic. also higher than the yield to maturity on from private lending organizations. Some 11 If these savings would be shared among U.S. Savings Bonds. states such as california and New York have governmen t.s in proportion to their interest If a consuxning unit receives four percent created special lending and borrowing au expenditures, the following State-local sav interest on savings deposits and is then sub thorities or state corporations to improve the ings (in 1962) would result: California, ject to a marginal income tax of 20 percent, $47.65 million; Florida, $12.59 million; Mis the net after tax return on savings deposits Footnotes a.t end of article. sissippi, $3.69 million; New York, $77.28 mil- will be only 3.2 percent. The average annual February 17, 1969 EXTENSIONS OF REMARKS 3579 tax free yield on S & P's high grade municipal the part of commercial -banks for loans as the end of 1957 to not. more than 80 billion bond index has dipped below this figure in opposed to investments. In his book on Man by the end of 1975. .19 This figure can be com only one year since 1957. That year was 1962 agement Policies for Commercial Banks, pared to projected holdings of 107.5 billion when the average yield amounted to 3.18 per Howard Crosse, Vice-President of the Federal presented in the 1966 compendium on Public cent. It would appear, therefore, that even Reserve Bank of New York, has stated this Facility Financing.u The difference between families and indivl~uals in modest tax preference in the following way: these two estimates is mainly a difference be brackets would have found it more profitable "The policy approach advanced in this tween no growth in the proportion of munici on the average to have invested in high book has stressed the primary obligation of pals included in bank portfolios and a con grade municipal bonds than to have pur a commercial bank to serve the credit needs tinued increase in the share of municipals chased U.S. bonds or acquired ordinary time of the community. It has emphasized, also, at about the same percentage point rate as deposits at a commercial bank. Middle in the need for protective liquidity and has ad was characteristic of the post war period. come families have not been attracted to this vocated the provision of sufficient additional If our stabilization hypothesis is valid and market, however. liquid assets to meet any foreseeable local the debt obligations of state and local gov Spending units with incomes under $15,000 demand for loans. Banks in some areas, how ernments do increase from 110.1 billion at the are estimated to have been holding liquid ever, or at some times, will have provided end of 1967 to a projected total of 198.8 bil assets amounting to over $2,000 in 1962. By adequate liquidity, granted all the sound lion at the end of 1975,12 the proportion of liquid assets we mean demand deposits, time loans they can, and still have excess funds to new municipals absorbed by commercial deposits, savings accounts and U.S. Savings invest. Funds so employed represent the banks will fall from over 70 percent in the Bonds. Their holdings of state and local bank's 'investment portfolio' as distinguished period from 1962-67 to less than 34 percent bonds amounted to only $18 on the average. from its liquidity position and its loan ac in the next eight years. A probable decline Family units with incomes between $15,000 count." 1 of this magnitude would indicate a need to and $25,000 had liquid assets amounting to State and local bonds are generally con broaden the market for municipal bonds. almost $9,000. Their holdings of state and sidered to be part of a bank's investment One method which has been advocated by local bonds amounted to $262 per spending portfolio. Professor Donald Reeb and myself, would unit.1 The holdings of state and municipal While the municipal securities of all com be to amend section 14B of the Federal Re bonds by family units with incomes between mercial banks have increased from about 3.2 serve Act to permit that organization to hold $50,000 and $100,000, on the other hand, were percent of all loans and investments in 1945 state and local debt as well as obligations of almost as large ($34,722) as their holdings of to 14 percent in 1967, the increase was not at the U.S. government. The Federal Reserve liquid assets ($37,298). the expense of loans. Commercial bank loans, now holds about 50 billion in government The importance of developing a broader during the same period of time, increased debt which is not needed to manage the market for state and local bonds can best be from 21 percent of total loans and invest money supply and could be sold to improve understood by considering recent trends in ments to over 65 percent. Both of these in the market for municipal bonds. public financing. In the 1966 compendium on creases were at the expense of U.S. govern We have estimated that the interest sav State and Local Public Facility Needs and ment securities which declined from 73 per ings to state and local governments and the Financing, sponsored by the Joint Economic cent of total loans and investments in 1945 added tax revenues to the U.S. Treasury Committee, it was suggested that the net to 17.4 percent in 1967. would eventually amount to more than half supply of state and local government obli Continuation of these trends at the same a blllion dollars per year if the Federal Re gations would increase 8.5 billion in 1966, .average percentage point rate would mean serve Act was amended and if the Board of 10.0 billion in 1971 and reach 11.3 billion in -that banks would be left without any fed Governors of the Federal Reserve adopted a 1975. At that point in history the total supply eral securities before the end of 1975. U.S. policy of broad participation in the market of state-local bonds outstanding was ex government securities are more liquid than for state and local bonds.13 Mobilizing the pected to be 198.8 billion, more than double state and local obligations and for this rea resources of the Federal Reserve to help solve the amount outstanding at the end of 1965.2 son are generally considered essential to meet state and local problems would be in keeping In 1967, state and local governments in a bank's liquidity requirements. with a more general policy of using the re creased their indebtedness by 10.1 billion If we assume that 60 blllion in U.S. gov sources and procurements of the Department dollars, an increase that was not supposed to ernment securities are required for liquidity of Defense and other federal agencies to at have been reached until 1971. The unexpect purposes and that any dip below this figure tack social problems.u edly large increase in public facility financing will eventually be restored,8 the share of U.S. A second approach might take the form of at the present time is perhaps one of the governments in bank portfolios will continue innovations proposed by Sidney Horner in his reasons why the yields on municipal bonds to decline in a modest fashion, but not at paper on, "Factors Determining Municipal have risen to unprecedented highs. A second the dramatic rate which was observed from Bond Yields:" and possibly more important reason for the 1945-67. A more moderate decline in the "High bracket private investors do not absolute and relative 3 rise in municipal bond share of U.S. governments will mean that ordinarily command a large enough new yields might be termed over complacency loans and municipals cannot possibly rise at money flow to play a major role in the $6-$7 about the demand for municipal bonds. the share rates which were characteristic of blllion municipal market, but the army of the poEt war period. If bankers give prefer medium bracket individuals do command In the four year period from 1962-1965 vast and growing sums. Much of it is today commercial banks absorbed 74.9 percent of ence to loans as opposed to municipal in vestments, the share of municipals in total flowing into institutions. Savings accounts the net expansion of municipal debt.4 This are very convenient to such people while was accomplished by increasing the propor loans and investments can be expected to stabilize in the near future and m ay even security purchase programs are mysterious tion of municipals in bank portfolios from and cumbersome and seem risky. New tech 10.5 to mor-e than 12.5 percent of total loans decline. niques, such as tax-exempt common trust and investments. The compendium on Public Some evidence in support of stabilization funds or tax exempt mutual funds (if man Facility Financing assumed that this pro and decline can already be observed in con aged funds were legalized), could ultimately portion would continue to increase and that nection wit h the ten largest banks in the divert a vital $2 billion or more a year into 62 banks would be able to absorb about per United States. These banks h ave often been municipals." 16 cent of the projected incremental demand for the leaders in establishing new trends in One of the main difficulties with Horner's state and local obligations between 1965 and portfolio composition. In the three year pe 5 proposal is the lack of an active secondary 1975. In the two years from 1965 to 1967 riod from the end of 1964 to the close of m arket for state and local securities.16 Many commercial banks did increase municipals to 1967 the ten largest U.S. banks reduced the offerings are held to maturity and never about 14 percent of total loans and invest proportion of "other securities" in their port traded in the open market. An inactive sec ments and in so doing were able to absorb folio by an (unweighted) average of slightly ondary market makes it difficult to clearly nearly 71 percent of the net increase in more than one percentage point.9 (Other define the market value of a portfolio of mu municipal debt. securities are mainly municipal obligations.) nicipal bonds at any point in time. If a way In the first quarter of 1968 state and local This decline in the share of municipals in can be found to place a fair and reasonable governments continued to increase their debt the portfolios of large banks suggests that value on non traded municipals, Horner's obligations at a ten billion annual rate. The smaller banks may have been more sheltered proposals would deserve very serious con absorbtion of municipals by commercial from the credit demands of the war effort sideration. banks, on the other hand, plunged to only and, for this reason, able to purchase a dis A third approach is for state governments 46 percent of the increase. To find a market proportionate share of municipal offerings. to emulate the federal government in setting for the remaining 54 percent, state and local As the growth in bank deposits slows to a up a non profit corporation to issue state governments were forced to pay interest up .more normal rate of perhaps six percent per savings bonds in the same denominations and to 4.5 percent on high grade municipals. For year and as the baby boom begins to return on the same terms-except for somewhat persons with marginal incomes taxed at a from Vietnam and stock up on consumer dur lower interest rates-as Series E Savings twenty percent rate this would have been ables it is only logical to assume that smaller Bonds. The proceeds could be reinvested in equivalent to a return of over 5.5 percent on banks will be forced to emulate larger banks the securities of state agencies and local taxable government bonds or savings ac in stabilizing and perhaps even reducing the governments. The demand for these bonds counts.0 proportion of municipal bonds to meet a could probably be increased by permitting Our main reason for supposing that indi rising demand for business inventory and individual buyers to choose, within limits, viduals will have to absorb an increasing consumer loans. the kinds of securities that would be pur share of municipal offerings is preference on If our analysis is correct, the holdings of chased with the proceeds. state and municipal obligations by com Amounts of state savings bonds up to, say, Footnotes at end of article. mercial banks will grow from 50.1 blllion at $10,000 per person, might be guaranteed by 3580 EXTENSIONS OF REMARKS February 17, 1969 the state or insured through the Federal 18 Roland I. Robinson, Postwar Market functional: the law promotes inefficiencies Deposit Insurance Corporations. Municipal for States and Local Government Securities, and inequities. Rather than limiting the total bonds are not very risky. A search of pri (Princeton, N.J.: Princeton University Press, debt or promoting sound financial and physi mary sources of default records reveals only 1960), Chapter 5, p. 144. cal planning the legal controls on state-local four instances in which cities or counties 17 Public Facility Financing, op. cit., p. debt promotes multi-government use of failed to pay interest when due in the post 244-45. debt, uncoordinated physical development, war period. 11 Most, if not all, of these defaults increased interest costs, and useless subsidies were eventually corrected without loss to THE STATE-LOCAL BOND MARKET: ANOTHER to higher income receivers. bond holders. URBAN PROBLEM AND A SOLUTION The increased costs for state-local bonded FOOTNOTES (By Donald J. Reeb•) debt has occurred despite the federal (and sometimes the state and local) tax exemption 1 These data were compiled from the Fed During September 1968 state and local status of the interest earnings received by eral Reserve survey of financial character long term bond issues axnounted to $1.329 istics of consumers and are reported in U.S. owners of the bonds. In fact, the circumven billions and short term issues were an addi tions used by the governments to avoid the Congress, Joint Economic Committee, State 1 tional $0.427 billions. This brought the cum legal constraints on the use of general ob and Local Public FacHity Needs and Financ ulated twelve months total to $15.314 bil ligation debt issues have aided the increased ing, Vol. 2, p. 446. lions for long term and $8.091 for short term Interest costs. There are solutions to this liJbid, p. 21. bonds. These amounts were, respectively, predominantly urban problems and they are 3 The yield on S & P's municipal bond in $1.026 billions and $0.066 billions greater discussed in the third part of this study. dex was 78 percent of the yield on long term than new issues in 1967. Net state-local in- taxable bonds o! the U.S. Government in debtedness is increasing by about $10 btl- DEBT LIMITATIONS 1965. By August 16, 1968, this figure had lions a year-some $5 billions of the $15 The control of local government finances risen to almost 85 percent. billions long term debt increase are reis- is, for the most part, vested in the respective 'Ibid., p. 16. Subsequent data have been sues--and total state-local debt is in excess state governments, much as the finances of taken from the President's Economic Report of $100 billions. Interest expenditures on the branch plants of a corporation are sub and the tlow of funds published in the this $100 billions are over $3.6 billions yearly ject to the controls of the headquarters es Federal Reserve Bulletin. while local interest expenditures are 70 per tablishment. Unlike the business sector, u This estimate 1s based on the projected cent of this totaJ.2 however, state governments have been un- holdings presented in Table D1, p. 50 of the All of this provides one very definite con- duly restrictive without providing equal or compendium on Public Facility Financing. elusion: state-local debt is important. It cheaper alternative sources <>! debt funds. 8 An even higher return could have been takes on added importance when the For example, only three states permit all obtained in the short run if the bonds were finances of state-local governments are con- of their local governments to issue general sold at a capital gain after interest rates sidered. state and local governments now obligation debt by legislative council action. declined from these historic levels. lack sufficient tax and grant-in-aid revenues Twelve states, on the other end of the spec 1 Howard Grosse, Management Policies tor to provide public services and facilities as truro, require legislative council actions, Commercial Banks (Englewood Cliffs, New they are needed. Debt, especially long term referendum approval, and more than simple Jersey: Prentice Hall, 1962), p. 231. debt, is one way-a very common way in majority to vote in favor of the debt issue s Bank holdings of U.S. governments dipped fact--o! adding to current income and ex- before general obligation bonds can be is below 60 billion during the tight money penditures when present needs exceed reve- sued. With 24 per cent of the states having periods of 1956-57, 1959-60 and 1965-66 and nues. Most consumers and businesses are repressive restrictions and only 6 per cen'b were restored to at least this level during having reasonable controls the simple con subsequent periods of monetary ease. familiar with this use of long term debt. c·usion seems appropriate that state govern- s Six of the ten banks decreased the pro But for state and local governments with ments do In fact impose undue restrictions their interest expenditures of more than $3 portion of other securities to total resources billions the question need be asked: Will on local government general obligation debt while four banks increased the proportion. issues.3 Bank of America, by far the largest bank in increases in debt continue to be a reason- The referendum restriction does not apply the United States, increased the proportion able alternative for financing current ex- equally to all local governments in a state. of other securities, but not to a new post pendltures? There are many exceptions; f<>r example, war high. Only one of the ten largest banks There are two important constraints or Maryland local debt laws are complex to the devoted a record post war proportion of its impediments on state and local governments point where generalization is impossible. A portfolio to other securities in the years since continual use of debt financing. The first reasonably accurate summary of referendum 1965. Most large banks, in other words, seem and most famous is the law. Legal con- restrictions is provided in a. recent Advisory to have stabilized their holdings of other stralnts on state-local debt abound. The con- Commission on Intergovernmental Relations securities at less than historic proportions. stitutlonal and statuatory controls are dys- publication and reproduced below.• This stabilization appears to have occurred in spite of economic ease and extremely TABLE I.-DISTRIBUTION OF SELECTED STATES ACCORDING TO PREDOMINANT METHOD FOR COUNTIES, MUNICIPALITIES, rapid growth in bank deposits during 1967. AND SCHOOL DISTRICTS TO AUTHORIZE FUll FAITH AND CREDIT BONDS Data on security proportions were obtained from Standard and Poor's Corporation School Records. Predominant method of authorizing full faith and credit bonds Counties Municipalities districts 10 This assumes that bank deposits and municipal bond holdings will both increase A. By action of local governing bodY------1 11 4 at about six percent per year. Bank deposits B. By referendum, with all electors eligible to vote: in the first half of 1967 grew at an annual 1. With simple majority in favor______11 11 12 rate that was slightly less than six percent. 2. Requiring special majority on the question (60 percent, 67 percent, 75 percent, etc.) ______------______9 9 8 u Op. cit., p. 50. C. By referendum involving property ownership qualification: UJbid., p. 35. Some uncertainty exists as l :ith ~i.mple m~jority (of proper:fy owning voters) in favor ______1 8 7 to whether the demand for municipal facili . equtrmg spectal type of majonty ______3 3 3 D. By referendum requiring favorable vote by majority of all eligible voters in ties will be large enough to require this jurisdiction ______2 2 much debt. WhUe new debt did increase at E. Varied; not subject to generalization (Maryland>------a rather spectacular rate in 1967, the increase 1 ------was not enough to fully compensate for the Total (for States reported) ___ ------_------40 45 36 lower than expected addition to state and municipal obligations during the tight money State governments restrict their own gen increments usually). This results in state year of 1966. If part of the higher than ex eral obligation borrowing also. Four states, local debt being relatively short-lived in com pected current increase Is due to a catching Florida, Indiana, Louisiana, and West Vir parison with nonserialized debt. That is, a up effect and if the Presidential polls do in ginia, permit no general obligation debt to thirty year serial bond for $1 millions with dicate a trend toward fiscal conservatism, be issued by their state governments. Eight serialized payments provides $1 millions in the problem of finding new markets for states, Connecticut, Maryland, Massachu revenue only in the first year. Or, !actually, municipal bonds may not be quite as great setts, Minnesota, Mississippi, New Hampshire, in 1962 with a total long-term state-local as indicated by our figures. Changes in the Tennessee, and Vermont, have no limits on debt of more than $77 billions, fully fifty amount of public facility financing are not state issues of general obligation debt con three per cent of the debt is scheduled for likely to be as dramatic, however, as changes tained in their constitutions.5 repayment before thirteen years are com in the sources of financing. Referendum approval 1s an impediment t<> pleted.7 This requires the annual repayment 13 Donald Reeb and Edward Renshaw, "A sound financial and physical management, o! more than $3 b11lions. Since 1962-63 fiscal Costless Public Policy: Shared Revenues but it may not be the most important one. year the average annual increase in state From State-Local Bonds," an unpublished About two-thirds of the referendums are ap local revenues from own sources has been research paper that is now being circulated proved by the electors.• about $5.2 billions--leaving only $2.2 bil for review. The various state laws also require that lions. Interest expenditures have been ex 14 See the recent statement by Secretary of serial bonds be issued, i.e., debt which is re panding at the annual average amount of Defense Clark Cillrord as reported in the payable in increments (approximately even $0.2 billions, leaving the residual of $2.0 bil New York Times, September 27, 1968, p. 1. lions for expanded, improved, and new state 111 Public Facility Financing, op. cit.# p. 285. Footnotes at end of article. local self-financed services.• February 17, 1969 EXTENSIONS OF REMARKS 3581 There are, as well, interest rate restric TABLE 2-STATE AND LOCAL LONG TERM DEBT The importance o! revenue bond financing tions-usually set at five or six per cent- varies with the size of the government. Table but these, as yet, are not constricting since [In millions of dollars] 3 indicates that revenue bonds are more than the market rate tends to be under five per 102.5 per cent of general obligation long term cent. The August 22, 1968 rate for municipals Increases from previous years bonded indebtedness for the smallest munic long-term 45.8 was 4.22 for the twenty bond index and 4.15 debts General ipalities and but per cent for the largest per cent for the 11 bond index." Year outstanding obligation Revenue municipalities.I.G The revenue bond carries Finally there are the limits on taxes for with its debt limit avoidance attribute the servicing the debt or limits on property tax characteristics of greater legal complexity and 1956______--- ing power in its entirety, and/or limits on 46,775 2,490 2,013 greater interest costs. The increased complex 1957------50,845 762 3,308 the amount of debt as a percentage of tax 1958 ______55,737 3,267 1,625 ity is quite significant. The smaller govern 1959 ______61,127 3, 419 1, 971 ments tend to have less specialized personnel able property. 1960 ______At present, all except 16 of the 50 state 66,801 2, 387 3, 287 and the governments tend to be at greater 196L ------71,540 3, 014 1, 727 constitutions specify some percentage lim 1962 ______17,543 3,657 2,344 distances from the banking and financial itations on outstanding debt of local govern 19631 ______81,ll0 1, 736 1, 831 centers.1e ments in relation to the property tax base.1o 19641 ______87, 527 3, 209 3,208 The greater complexity of revenue bonds Generally, the restriction applies to only a 1965•------94,204 3,151 3, 525 19661 ______101,000 3,383 3,414 and their use by smaller governments dis few governments in a state and/or a few 19671 ______107,621 2,962 3,659 courages the formation of a secondary market types of debt. For cities and towns, for ex for the bonds-an important element in the ample, the rate limitation applies in twenty Total change. 78,901 40,326 38,575 initial marketability of financial securities. four states with the rate varying from 1.5 In turn, a reasonable expectation is that per cent (Washington) to 18 per cent (Vir a Fiscal year data. revenue bonds are issued at higher interest ginia) with the mOde being 5 per cent (nine Source: Bureau of the Census, Governmental Finances in rates than general obligation bonds, and states). The applicable rate tends to change 1966~7. GF 67, No 3, Washington, DC : Government Printing as the population size, type of government, Office, 1968, table 3; and Bureau of the Census, Census of that, pari passu, smaller governments pay Governments, Historical Statistics on Governmental Finances more in interest rates than larger govern and purpose of debt changes.u and Employment, 1962, Washington, D C : Government Printing These and other restrictions might be Office, 1964, table 12 and errata notice. ments. bearable if they are efficient, i.e., serve a pur pose effectively. But they do not serve a TABLE 3.-STRUCTURE OF LONG-TERM DEBT FOR l't. UNICIPALITIES, 196~7 financial planning purpose for they are not (Dollar amounts are in millions) tied to probable gains in tax revenues. They do not serve a physical planning purpose for (1) (2) (3) (4) physical planning considerations are not con Present shares tained in the permissive legislation. They do Number of General ob- Revenue 2-1 Size of municipalities governments ligations bonds not serve to reduce risk, for there is no effec (1) (2) tive risk.12 Rather, the effects of the legal restrictions Less than 50,000 ______$4. 812 102.5 23.9 38.3 on the use of general obligation bonds by 17,690 $4, 694 9 180 1,645 1, 066 64.8 8.4 8.5 state-local governments to meet their long 68 1, 472 890 60.5 1. 5 7.1 ======92.5 4.0 term capital facility needs have been in 200,000~~b~~~ot~o to 299,999~9~~~occ ..--~== ------=~ - - 19 782 723 5.8 creased use of legal circumventions. In turn, 300,000 to 499,999 ------21 1, 581 891 56. 4 8. 1 7. 1 500,000 to 999,999------17 2, 539 986 38.8 12.9 7. 9 the circumventions have promoted increased 1,000,000 or more ______5 6, 928 3, 176 45.8 35.2 25.3 interest costs, increased subsidies to holders of the bonds, increased tax revenue losses TotaL ______------__ ------18,000 19,641 12, 544 63.9 100.0 100.0 to the state-local and national government treasuries, and increased concern in the Source: Bureau of the Census, City Government Finances in 196~7. GF 67, No.2, Washington, D.C.: Government Printing Office, Congress. I! the state-local governments do 1968, table 3. not find a less costly solution they may find Both of these expectations are compli- per cent marginal tax payer, 0.01 if the the status of their bonds diminished by the mented by the available data. Revenue bonds bond holder is a 50 per cent marginal tax actions of the Congress and the market, and are issued at some 50 to 33% basis points payer, 0.02 if the holder is a 66 per cent their debt problems and costs increased. above the general obligation bond interest marginal tax payer, etc. If the market rate MARKET REACTIONS rate.t7 At the lower figure and given the $6.2 on taxable bonds is 0.05 then the bond buyer State and local governments have reacted billions in revenue bonds issued in the past who pays a 33 per cent marginal rate would to these legal restrictions on issuing general twelve months (by September 1, 1968) the not buy tax exempt bonds if the tax exempt obligation bonds by issuing revenue bonds. yearly excess interest expense is $20 millions; bond interest rate was 0.04. Other examples Revenue bonds-after the courts accepted the cumulated total excess interest expense can be constructed by the reader. the "special fund theory"-have been rela in thirty years will be $600 millions.1s Col- One point of the diagram is that as tax tively unrestricted.1s Nearly any tax or free laborative evidence is that smaller govern- exempt interest rates increase towards and any service which "generates" revenue ments tend to be charged higher interest rates equality with the taxable bond interest rate can be legally pledged towards repayment for their bonds than larger governments-the -as it has been doing since 1945 when the of a complementary capital facility. The usual surcharge being about 10 to 30 basis ratio was 41 per cent while in 1966 it was points.1.9 75 per cent 2L-the importance of the tax revenue need not be directly generated, e.g., With these kinds of market distinctions exemption to state-local governments de revenue construction bonds for the construc among state-local bonds and their resulting creases absolutely and relative to increases tion of a government office building on which increased interest rates, the present solution in the importance of the subsidy to bond the government pays rent to itself for the of revenue bonds as debt instruments is obvi- buyers. Surrey indicates that further in use of the building is permissible. The "spe ou.sly inadequate. The inadequacy of the creases in the ratio can be expected-pos cial fund theory" provides that such debts present bond market is further revealed by sibly to as much as 87 per cent--as the state are outside the constitutional debt limits consideration of its effects on the income tax local bond debt share of total indebtedness imposed on general obligation bond issues, systems of the federal and state-local govern- increases beyond the present 8 percent.22 and thus are restricted by procedural obli ments. The tax exemption of interest earn- The second point of the diagram is inferen gations and the market. Table 2 indicates the ings provides that persons or corporations tial-that the subsidy is inefficient since the rise in use of revenue bonds since 1952. with income may not incur a tax liability savings to the buyers of the bonds is greater Revenue bonds accounted for 48.9 per cent of and, more importantly, the amount of sub- than the savlngs provided to the issuers the sixteen year increase in state-local In sidy for a given taxpayer will tend to increase (state-local government) of the tax exempt debtedness of $78,901 milllons. In 1946 new as the interest rate increases. bonds. This can be empirically demonstrated Graph 1 (not printed in REcoRD) indicates and has been numerous times. The loss to the revenue bonds issued were but 17 per cent of that the amount of the subsidy increases Treasury has usually been estimated to be the more than $1.1 billions in new issues.u for a given tax-bracket when the interest three times the gain to the state-local gov 13 TABLE 2 -STATE AND LOCAL LONG TERM DEBT rate rises on state-local bonds relative to ments. In reference to the above diagram, taxable bonds. Interest rates are on the ver- the subsidy is efficient only on the diagonal [In millions of dollars] tical axis; marginal tax rates are on the line, e.g., point C. All bond buyers other than horizontal axis. The downward slopping lines those who receive a rate equal to the ma:: Increases from previous years are the non-exemption bond interest rates gina! rate (indicated by the diagonal lines) Long-term ------after taxes.:!O If the state-local interest rate are receiving an excess subsidy for holding debts General is 0.04 (4 per cent) in a bond market which the tax exempt bonds. Thus the tax exemp Year outstanding obligation Revenue charges 0.06 for similar taxable bonds there tion provision can only be efficient, under the is a 0.02 subsidy to state-local governments present market conditions, if the holders of 1952 ______1953 ______28,720 ------through the tax exemption provision. Again, tax exempt bonds receive an interest rate 1954 ______32, 004 1, 837 1, 447 assuming similar bonds, the subsidy to the 36,898 2, 719 2,174 1955 ______42, 272 2, 333 3, 042 bond holders is 0.00 if the holder is a 33 Footnotes at end of article. 3.582 EXTENSIONS OF REMARKS February 17, 1969 which varies inversely with their tax bracket, outstanding are $50 billions-but their cost sidles to higher income tax payers for the i.e., higher marginal tax rate payers must re of issuance should be very low also. privilege. ceive lower interest rates on their bonds if Homogeneity of demand is more difficult FOOTNOTES the subsidy is to be efficient. to achieve-it requires congressional action •The author is associate professor, Depart A New Market. Remedies for the dysfunc and state-local governments and others have ment of Economics, State University of New tionaUsms in the state-local bond market been unalterably opposed to the Congress York at Albany, and Regional Economist, Re have been frequently proposed-and just as changing the acquired right of issuing tax gional Economics Division, Office of Business often opposed. Derrick indicates that more exempt bonds.27 Homogeneity of demand Economics, United States Department of than one hundred resolutions to eliminate would be aided if the twelve Federal Re Commerce. Neither organization is impli the tax exemption provision have been intro serve Banks were permitted to buy the state cated in this paper. duced in Congress.!4 The efforts continue local debt agency bond issues and, in turn, t Office of Business Economics, Survey of with a two volume study prepared by the sell the Treasury bonds which they own as Currency Business, October 1968, Washing Joint Economic Committee, introduction of part of their financial assets. Each of the ton, D.C.: Government Printing Omce, p . S- legislation by Patman and Proxmire,:lli and twelve Federal Reserve Banks have a regional 20. Short term debt is defined as ". . . inter a suggestion for a 'Community Development awareness and some, like the Boston FRB has esting bearing debt payable within one year Bank' by the Assistant Secretary of the a long history of concern with regional de from date of issue ... (and) ... obligations Treasury Stanley Surrey in a speech to the velopment. Their staffs are far more com having no fixed maturity date if payable Investment Bankers Association in New Or petent than could be developed for a new from a tax levied for collection in the year leans. The Patman-Proxmire bill did not be bank-like the Surrey proposal-and the of their issuance." Long term debt is the re come the law of the land and the Surrey banks are not Washington located with all of sidual: obligations whose maturities exceed proposal was introduced prior to the Nixon its onus of Federal control and supervision. one year. Bureau of the Census, Compendium election with his emphasis on tax incen The savings that are possible through the of State Government Finances, GF No. 11, tives rather than tax reform. district Federal Reserve Bank purchases de Washington, D.C.: Government Printing Of A solution, rather, must consist of a policy pends upon the ratio of interest rates on fice, 1967, p. 59. which recognizes that the state-local bond taxable and non-taxable bonds before and 2 Bureau of the Census, Governmental Fi market is not homogeneous in either supply after the purchasing, the (average) marginal nances in 1966-67, GF 67, No. 3, Washington, or demand. Revenue bonds are not identical tax rates of potential bond buyers, and the D.C.: Government Office, 1968, Table 5. with general obligation bonds, unrated amount of bonds purchased by the district 3 United States Congress, Committee Gov bonds are not identical with rated bonds, banks. Professor Renshaw and I have cal ernment Operations, Unshackling Local Gov small bond issues are not the same as large culated these in another paper; with reason ernment, April 1968, Washington, D.C.: Gov able assumptions the savings to the state ernment Printing Office, 1968, pp. 70-71. bond issues, a commercial bank buyer bond 28 is not identical with a lower marginal tax local governments would be $400 millions. ~, Advisory Commission on Intergovern bracket buyer, and already issued bonds are The purchase by the district Federal Re mental Relations, State Constitutional and not the same as newly offered bonds. serve Banks would both reduce the supply Statutory Restrictions on Local Government of bonds and the market interest rate on Debt, Washington, D.C.: Government Print Homogeneity of supply in state-local bonds state-local bonds. This double gain should be would be increased if the tax exempt bonds ing Office, 1961, appendix A. Not all states are were for the most part issued by state govern impressive. Moreover, it substitutes a well included because not all states replied to ments. The state could receive certificates of known security which is riskless-Treasury the questionnaire. indebtedness from its authorities and local bonds-for a security which has a more lim 6 United States Congress, Joint Economic governments and reissue these as state ited secondary market. And finally, it brings Committee, State and Local Public Facility bonds. North Carolina in 1931 and Virginia the central banks of the United States di Needs and Financing, Volume 2, Public Facil in 1950 established a procedure of state as rectly to the aid of the sovereign states and ity Financing, Washing,ton, D.C.: Govern sistance for local bond issues. North Carolina their local governments. ment Printing Office, 1966. pp. 153-55. issues all local bonds; Virginia renders advice The third and final adjustment which need 0 Advisory Commission on Intergovern upon request. Either procedure is preferable be considered is that of already issued bonds. mental Relations, State Constitutional and to the present system used in the other 48 The more than $100 billions in bonds out Statutory Restrictions on Local Government states of occasional aid and advice. The standing are not subject to call and reissue Debt, Washington, D.C.: Government Print Advisory Commission on Intergovernmental at least no more than fifteen per cent of ing Office, 1961, p. 33; and, Investment Bank Relations recommended that the Virginia them. Thus any decrease in the interest rate ers Association, Bulletin Number 48, August system be established in each State. It would leaves interest costs on already issued bonds 1968, Table 8. seem that if a state, like North Carolina was unaffected and provides the holder of the 7 United States Congress, Committee on in 1931, had no major urban centers and/or bond with a capital gain if he sells the bond. Ways and Means, Tax Revision Compendium, had a scarcity of bond underwriters in the The Fitch proposal would tend to solve this Volume 1, Washington, D.C.: Government state or proximate to it, the mandatory problem along with the other problems, but Printing Office, 1959, p. 761-2; and, Bureau requirement would be more reasonable.2o . . . ''the Fitch scheme would be administra of the Census, census of Governments, Com This state action independent of the market tively difficult. Establishment of differentials pendium of Government Finances, Volume 4, and/ or federal government action is suffi [for the supramarginal bond holders] at the No. 4, Washington, D.C.; Government Print cient to increase homogeneity of supply. A time of purchase of exempts in order to cal ing Office, 1964, Table 17. reduction in interest costs to local govern culate gain . . . would: be vexatious and s Bureau of the census, Gover nmental Fi ments would tend to occur since the state would, at best, provide rough justice." :!9 Thus nances in 1966-67, GF 67, No. 3, Washington, would be an intermediary guaranteeing the the problem of high interest rates on already D.C.: Government Printing Office, 1968, Table quality of the issue. The secondary market issued bonds seems to be soluble only by 3. for the bonds would be improved since even att rition. o The Weekly Bond Buyer, August 26, 1968, Nevada is better known by bond buyers than CONCLUSION p. 51; and, Advisory Commission on Inter is Utica, New York. The legal documentation Bet ween 1966 and 1975 the amount of out governmental Relations, State Constitutional to the final buyer would be less involved. standing state and local bonds is expected and Statutory Restrictions on Local Govern More bidders could be attracted since the to increase to more than $200 billions-a ment Debt, Washington, D.C. : Government average issue could be greater in size and doubling in ten years. At an average interest Printing Office, 1961, p. 27. more publicized. And, the state-local debt rate of 4.5 per cent state and local govern 10 Advisory Commission on Intergovern agency could restructure the debt issues and ments will be spending $9.5 billions in 1975 mental Relations, State Consti tution al and change their timing to better meet the de on interest. If the interest rate increases 89 Statutory Restrictions on Local Government mands from the market. There could be basis points by 1975--a. rise equal to that be Debt, Washington, D.C. : Government Print some problem at first for the state-local tween 1956-1965-the interest expenditures ing Office, 1961, p . 28. debt agency in buying offered local and state wm be over $11 billions. u United States Congress, Joint Economic bonds at rates below the reissue price but All of this would be unimportant if state Committee, State and Local Public Facility experience and/ or a consignment provision local governments had sufficient revenues and Needs and Financing, Volume 2, Public Faci l should reduce this hurdle to inconsequen the tax exemption provision did not tend to ity Financing, Washington, D.C.: Govern tiality. destroy the progressivity of the tax system. ment Printing Office, 1966, pp. 153-54. The financial certificates issued by the But these problems exist and solutions which 12 With well over 4,000 thousand bond is state-local debt agency can, in part be likened are politically possible are few. Hopefully sues per year since World War II, there have to a state savings bond-sold through pay states will begin to perform their duties prop been but 30 failures, only two of which were roll deduction plans and banks, issued in erly and provide capital funds to their created more than $100 million issues. Neither of the small to large amounts, and a t a fixed in local governments. Possibly the selfish inter larger issues involved loss in the principal terest rate. The supply would be infinit e and ests of subsidy receivers and the reactionary amount, but rather delays in interest pay continuously redeemable without penalty. feelings of state-local officials will not prevent ments for which interest on the delayed in The other part of the supply of debt instru district Federal Reserve Banks from obtain terest is paid. Fourteen of the 28 small ments from the state-local agency would be ing the authority to purchase state-local issues involved some loss in principal. Sev like Treasury issues-large blocks, sealed bonds. For without this or a similar solution eral of the smaller issues probably involved bids, and bidded interest rates from bond state and local and even federal tax payers fraud. United States Congress, Joint Eco underwriters. The savings bond market may Will find that they are paying more for their nomic Committee, State and Local Publi c not be very large-Treasury savings bonds capital facilities and providing larger sub- Facility Needs and Financing, Volume 2, Pub- February 17, 1969 EXTENSIONS OF REMARKS 3583 lie Faciltty Financtng, Washington, D.C.: sian and its constitutional vs. statutory some alternative ways of providing needed Government Printing 01fice, 1966, p. 244. basis see the papers by Kirby, Maxwell, Brax financing for state and local fac111ties. While 1a United States Congress, Joint Econo.mtc er, McGee, and Ely in United States Con few problems ln the history of local finance Co.mm.lttee, State and Local Facility Needs gress, Committee on Ways and Means, Tax have inspired so many imaginative solutions, and Financing, Volume 2, Public Facility Revision Compendium, Compendium of Pa most would require either legislation or sig Financing, Washington, D.C.: Government pers on Broadening the Tax Base, Volume 1, ni.fl.cant institutional changes to yield the Printing Oflice, 1966, p. 153. · Washington. D.C.: Government Printirif; Of amount of financing that will be required to u United States Congress, Joint Economic fice, 1959, pp. 679-'791. The Kirby paper ar rebuild our cities and provide a more whole Committee, State and Local Public Facility gues that the Alabama vs. King and Boozer some environment for the residents of both Needs and Financing, Volume 2, Public Facil case, 314 U.S. 1, with its conclusion that ma rural and urban areas. terials used to perform a government contract ity Financing, Washington, D.C.: Govern THE DEMAND FOR MUNICIPALS ment Printing 01fice, 1966, p. 8. are subject to the tax, latches the last exit 1s Municipalities includes all active city, for those who argue that a withdrawal of the About three quarters of the outstanding village, borough, and town governments in tax exemption provision would be unconsti municipal debt is owned either by individ the United States, with the qualifications tutional. The point remains, though, that uals in high income tax brackets or by com that towns in the six New England States, the impediment is not the constitution but mercial banks. Household demand for mu New York, and Wisconsin (which are like political agreements forged by those who nicipal securities grew at a fairly steady ra..te townships in other States) are excluded from gain from the existence of the exemption. in the early post war period and then reached the municipalities data as are the boroughs 28 Edward F. Renshaw and Donald J. Reeb, a state of near saturation in 1955 when addi in Alaska. Bureau of the Census, Census of "A Costless Public Policy: Shared Revenues tions to total holdings amounted to .more Governments, 1967, Governmental Organiza From State-Local Bonds." The paper also con than three billion dollars. The growth in tion Volume 1, Washington, D.C.: Govern tains estimates of the savings vs. interest household demand has declined in recent ment Printing omce, 1968, p. 2. earnings losses for the Federal Reserve-Treas years to an average increase of less than two billion dollars. u United States Congress, Joint Economic ury. Their net gain would be some $200 Committee, State and Local Public Facility Inillions. These data are but estimates since In 1967, when the total increase in munic Needs and Financing, Volume 2, Public Facil neither the elasticity of the supply of bonds ipal debt amounted to slightly more than ten ity Financing, Washington, D.C.: Govern from the state-local governments nor the blll1on dollars. net household demand .was practically zero. About nine billlon of this ment Printing Oftlce. 1966, pp. 210-12. elasticity of demand for Treasury bonds ·is known. increase was absorbed by commercial banks. 11 Roland I. Robinson, Post-War Market tor 211 See Lyle Fitch, Taxing Municipal Bond This was made possible by a rather unprece State and Local Governmen"t Securities, Income, Berkeley: University of California dented increase in the money supply, includ Princeton: Princeton University Press, 1960. Press, 1950; and James Maxwell, "ExcluSion ing time deposits, amounting to eleven per p. 211; and, Advisory Commission on Inter from Income of Interest on State and Local cent. The average ra.te of growth in this governmental Relations, State Technical As Government Obligations," United States broader definition of the money supply was sistance to Local Debt Management, Wash Congress, Committee on Ways and Means, only 4.27 percent in the 20 year period from ington, D.C.: Government Printing 01fice, Tax Revision Compendium, Compendium of 1947-66. 1965, pp. 6-7. Basis points is a commonly Papers on Broadening the Tax Base, Volume During this period of time commercial used. term in the discussion of bonds; there 1, Washington, D.C.: Government Printing banks absorbed a fraction of net new issues are 100 basis points in each one per cent. Office, 1959, p. 708. of municipal securities which was about 18 Federal Reserve Bulletin, "Financial and equal, on the average, to eight one-hun Business Statistics," October 1968, p. A-43. SOME ALTERNATIVE WAYS To IMPROVE THE dredths of the year to. year percentage growth 18 United States Congress, Joint Economic MARKET FOR MUNICIPAL BONDS in the money supply. If we assume that states Committee, State and Local Public Facility and local governments will continue to in (By Edward F. Renshaw) crease their indebtedness by about ten bil Needs and Financing, Volume 2, Public .Facil In the six year period from 1962--67 com ity Financing, Washington, D.C_: Govern lion dollars per year and then postulate a mercial banks absorbed nearly 73 percent of world in which the money supply is allowed ment Printing Office, 1966, Appendix A, pp. the net increase in municipal securitles.s to grow at about five percent per year, this 262-65. Dominance in this market appears to have would imply a willingness on the part of 20 The formula for computing the points been related to an unusual growth in bank commercial 'banks to absorb only four billion on the diagonal lines is: r=C(l-t) where r deposits. In the preceding :fifteen year period dollars worth of new municipals. is the after tax interest rate, C is market when the money supply, including time de An even more conservative estimate of bank interest rate on taxable securities, and t is posits, was growing at a much slower rate, demand for municipal bonds can be obtained the marginal tax rate. At a t of 0.50 and a commercial banks were willing to absorb only if we examine the composition of bank port C of 0.05 the after tax interest rate is 0.05 27 percent of the increase in municipal debt. folios over long periods of time and assume (1.00-1.50) =0.025 which is point B in Dia That bank demand can be expected to drop that banks will continue to give equal prefer gram 1. The diagram was suggested by Pro significantly as the money supply is per ence to the financial needs of business and fessor A. Dale Tussing, Department of Eco mitted to grow at a less inflationary rate is government. Bank loans and investments nomics, Syracuse University. strongly suggested by recent periods of other than U.S. government securities, which S1 United States Congress, Joint Economic monetary tightness. During the credit are mainly municipal bonds, have increased Committee, State and Local Public Facility crunch of 1966 bank absorption fell from at about the same rate, on the average, since Needs and Financing, Volume 2, Public Fa 82 to only 40 percent of new issues. 1929. In 1929 the ratio of other investments cility Financing, Washington, D.C.: Govern The first quarter of 1968 was also a period to bank loans was .244 to one. The ratio in ment Printing Office, 1966, Appendix B, p. of restrictive monetary policy, though not 1950 was almost exactly the same, .243 to one. 296. nearly as tight as late 1966. Bank absorption It fell somewhat during the mid 1950's when 22 Stanley S. Surrey, "The Financing of during this quarter fell from 89 percent of the money supply was permitted to grow at New Social Programs-and Tax Exemption,'' net new issues to only 4e percent. To find a an abnormally low rate but had recovered to Fifth Municipal Conference, Investment market for the remaining 54 percent, state .234 to one by the end of 1963. It remained Bankers Association, New Orleans, September and local governments were forced to pay at this level through the end of 1966 and 27, 1968, pp. 9-11 and Table 1. In 1946 the interest amounting to more than 4.5 percent then jumped to .270 to one at the end of ratio of total state-local debt to total net on the highest grade municipal bonds. For 1967. This, of course, was a rather unusual debt in the nation was 3.4 per cent. Coun persons with marginal incomes taxed at a year characterized by very high growth in cil of Economic Advisers. Economic Report twenty percent rate, this would have been bank deposits and a comparatively .slack de oj the President, Washington, D.C.: Govern equivalent to a return of over 5.5 percent mand for business and consumer loans. ment Printing Office, 1968, Table B-58. on taxable government bonds or savings If we assume that co.m.mercial banks wlll 23 David J. Ott and Allan H. Meltzer, Federal accounts. continue to maintain a fairly stable balance Tax Treatment oj State and Local Securities. The yields on high grade municipal bonds between loans and municipals, it will not be Washington, D.C.: Brookings Institution, declined somewhat in mid 1968 but have possible for municipal bondholdings to grow 1963, pp. 14-17. since risen to new historic highs. On Janu very much more rapidly than the total money 2, Lucllle Derrick, "Exemption of Security ary 9, 1969 Moody's bond survey reported an supply. Some extra growth, amounting to Interest from Income Taxes in the United average yield to maturity of 4.9 percent on its about one percentage point per year, may be States," Journal of Business, Volume 19, 1946, Aaa bond index. Many revenue bonds are now possible, however, if cash outside banks re Ft. 1. yielding a tax free return of six percent or mains fairly stable and banks continue to 25 A copy of the legislation is printed in more. With the Federal Reserve showing hold U.S. government securities constant at United States Congress, Joint Economic Com every indication of being co.m.mitted to a about 60 billion dollars. If one percent is mittee, Hearings on Financing Municipal Fa policy of permitting the money supply to added to five percent growth in the money cilities, Volume ll, Washington, D.C.: Gov grow at a more normal rate. it seems clear supply and then multiplied by the 56 blllion ernment Printing Oftlce, 1968, pp. 170-88. that ways must be found to broaden and im in municipals that banks are estimated to 26 Advisory Commission on Intergovern prove the market for municipal securities. have held at the end of 1968 we obtain an mental Relations, State Technical Assist In the remainder of this paper we will implied willingness on the part of commer ance to Local Debt Management, Washing present some further statistics on the de cial banks to absorb only 3.4 billion of new ton, D.C.: Government Printing Office, 1965, mand for municipal bonds and then discuss .municipals in 1969. · pp. 55-59. If households can be induced to absorb 27 For discussion of the tax exempt provi- Footnotes at end of article. about two billion of municipals and other in- 35'84 EXTENSIONS OF REMARKS February 17, 1969
stitutions one 'Qlllion this would mean a total factors which helped to sabotage the princi state savings bonds ln the same denomina volume of new municipal financing which ple of direct interest subsidies for pollution tions and on the same terms-except for might be as low as six and one-half billion control programs. That this principle could somewhat lower interest rates-as Series E dollars. States and local governments, in be proposed and then discussed in public Savings Bonds. The proceeds could be re other words, may have to either cut back hearings is an encouraging step forward, invested in securities of state agencies and capital expenditures by about three and one however. A relevant question is whether we local governments. The demand for these half billion dollars from the 10 billion level might not be able to achieve the same ob bonds could, probably be increased by per of 1967 and early 1968 or else find new mar jective without creating formidable opposi mitting individual buyers to choose, within kets for a. rather large volume of municipal tion on the part of state and local govern limits, the kinds of securities that would be securities. ments. purchased with the proceeds. While some cutback in public facility One alternative which has been suggested Amounts of state savings bonds up to, say, financing may be inevitable, considering the by Professor Donald l'teeb and myself, would $10,000 per person, might be guaranteed by recent trend toward fiscal conservatism at all be to amend section 14B of the Federal Re the state or insured through the Federal levels of government, it doesn't seem likely serve Act to permit that organization to hold Deposit Insurance Corporations. Municipal that 6.5 billion of new financing will come state and local debt as well as obligations bonds are not very risky. A search of primary close to meeting existent needs for new facili CJf the U.S. government. The Federal Reserve sources of default records reveals only four ties. In the compendium on State and Local now holds about 50 billion in government instances in which cities or counties failed Public Facility Needs and Financing which debt which is not needed to manage the to pay interest when due in the post war was published by the Joint Economic Com money supply and could be sold to improve period.u Most, if not all, of these defaults mittee in December 1966 it was projected that the market for municipal bonds. were eventually corrected without loss to the supply of net new issues of state and We have estimated that the interest sav bond holders. local government obligations would increase ings to state and local governments and the SUMMARY from about 9.3 billion in 1969-a figure which added tax revenues to the U.S. Treasury The very high interest rates that state and was exceeded by nearly one billion in 1967- would eventually amount to more than half local governments are now forced to pay to and then grow to about 11.3 b1llion by 1975. a billion dollars per year if the Federal Re provide financing for public facilities is The JEC projections are really quite low serve Act was amended and if the Board symptomatic of a marketing mechanism that in comparison to other estimates of public of Governors of the Federal Reserve adopted is now inadequate to meet the needs of so facility needs. In a recent speech before the a policy of broad participation in the market ciety. That improvements can be made in Investment Bankers Association, Stanley for state and local bonds.7 Mobilizing the the market for municipal securities is surrey, Assistant Secretary of the Treasury resources of the Federal Reserve to help solve strongly suggested by the large number of under the Johnson Administration, sug state and local problems would be in keep imaginative proposals which have been gested that: ing with a more general policy of using the advanced to resolve the impending crisis. The "The growth of new programs especially resources and procurements of the Depart interesting question, it seems to me, is not Federally aided ones, the increasing reliance ment of Defense and other federal agencies whether the new administration wm be on debt service grants to shift Federal debt to attack social problems.8 forced to adopt innovations in this area, but to State and local debt, and exploding re A similar but slightly different proposal which alternative will be considered the most placement needs could increase the annual for improving the market for municipal acceptruble way for a Republican Administra net growth in State and local debt from the bonds has been prepared by the Presi tion to maintain an adequate level of private present $9 to $10 billion to as high as $30 dent's Task Force on Suburban Problems. financing for state and local facilities. billion a year in 10 years. This would repre They have recommended that the Federal sent a rwte of growth twice as high as the government create an Urban Development FOOTNOTES rate of growth of the savings supply." 2 Bank with powers to issue up to 25 billion 1 These calculations are based on the fiow Uneasiness about the demand for munic in taxable bonds to be guaranteed by the of funds reported in the Federal Reserve ipal bonds has been manifest both within Federal government.9 The proceeds from the Bulletin. Data for the period from 1946-65 and outside government for several years. bond issues would be used to buy state and have been summarized in U.S. Congress, Some have argued that tax-free bonds are local government obligations at subsidized Joint Economic Committee, State and Local an inefficient subsidy to state and local gov rates. It is assumed that the extra tax reve Public Facility Needs and Financing, Vol. 2, ernments and that tax exemption should be nues received by the Treasury on the taxable p.40. 2 replaced by a more efficient direct subsidy,3 bonds of the "Urbank" would be more than Remarks before the fifth municipal con such as that proposed by Lawrence Seltzer in sufficient to compensate for the direct in ference of the Investment Bankers Associa 1941. terest subsidy to state and local governments. tion, Roosevelt Hotel, New Orleans, Louisi A rather different approach to the prob ana, September 27, 1968. The Seltzer proposal would have the Fed 3 eral government pay state and local govern lem of improving the market for state and If income taxes are progressive and if the ments some fixed proportion of their annual local bonds might take the form of innova volume of bonds is too large to be absorbed interest payments if they issued taxable tions proposed by Sidney Horner in his paper by persons in the highest tax bracket, tax on "Factors Determining Municipal Bond exempt rates must be raised enough to at bonds.~ At least two versions of the Seltzer plan were incorporated into bills presented Yields": tract capital from persons ln lower brackets, to the Second Session of the 90th Congress. High bracket private investors do not ordi giving bond holders with higher incomes a The Proxmire Bill, S. 3170, would create a narily command a large enough new money windfall gain. Most estimates suggest that non-profit corporation to guarantee taxable fiow to play a major role in the $6-$7 billion the interest saving to state and local gov municipal bonds and authorize interest re municipal market, but the army of medium ernments in the postwar period has been duction grants up to one-third the annual bracket individuals do command vast and less than two thirds of the revenue loss to growing sums. Much of it is today fiowing the Federal government. See David Ott and interest charge payable each year on taxable into institutions. Savings accounts are very state and local securities. Allan Meltzer, Federal Tax Treatment oj convenient to such people while security State and Local Securities (Washington: The second bill, S. 3206, was sponsored by purchase programs are mysterious and cum the Administration to meet its commitment The Brookings Institution, 1963), p. 15. bersome and seem risky. New techniques, ~ National Tax Association, Proceedings under the Federal Water Pollution Control such as tax-exempt common trust funds or Act without adding to the budgetary deficit. ( 1941). p. 195. tax exempt mutual funds (if managed funds 6 If states and localities would agree to issue U.S. Congress, Subcommittee on Air and were legalized), could ultimately divert a Water Pollution of the Committee on Public taxable municipal bonds, this bill would have vita1 $2 billion or more a year into munici committed the Federal Government to pay Works, United States Senate, Ninetieth Con pals. 10 gress, Second Session, Hearings on S. 2525 the principal and interest on the Federal One of the main difficulties with Horner's share, provide a guarantee :ror the non-Fed and S. 3206, Part 2, p. 509 and p. 542. proposal is the lack of an active secondary G Ibid., p. 548. eral share and give states and municipali market for state and local securities.u Many ties an interest subsidy so the net effective "Donald Reeb and Edward Renshaw, "A offerings are held to maturity and never Costless Public Policy: Shared Revenues from interest rate would be reasonably compara traded in the open market. An inactive sec ble to rates on tax-exempt bonds. State-Local Bonds," an unpublished research ondary market makes it difficult to clearly paper that is now being circulated for review. Senate blll 3206 was attacked by Gover define the market value of a portfolio of nor Rockefeller of New York and other rep s See the recent statement by Secretary of municipal bonds at any point in time. If the Defense Clark Clifford as reported in the resentatives of state and local governments SEC can be persuaded to accept an econo during the hearings on water pollution fa New York Times, September 27, 1968, p. 1. metric approach to placing a fair and reason 9 This proposal is discussed in the Wash cilities on the grounds that the Treasury able value on non traded municipals, Horn would be the big gainer and that the pro ington Post, Tuesday, December 24, 1968. er's proposals would deserve very serious 10 Public Facility Financing, op. cit., p. 285. gram would be an opening wedge "to abolish consideration. URoland I. Robison, Postwar Market jor the tax-exempt authority of State and lo Another approach for broadening the mar State and Local Government Securities, cal government bonds." o ket for tax exempt state and local govern (Princeton, N.J.: Princeton University Press, While the intent to do away with tax ex ment obligations would be for state govern 1960), Chapter 5, p. 144. emption was vigorously denied by the Ad ments to emulate the federal government in 12 Public Facility Financing, op. eft., pp. ministration,e it was no doubt one of the setting up a non profit corporation to issue 24~. February 17, 1969. EXTENSIONS OF· REMARKS . 3585 ONE CRIME REMEDY: PREVENTIVE The argument that denial of bail would number of those robbers may also have been DETENTION be unconstitutional is based on the Eighth out on bail. Let's take the case of Larry Duke Amendment, which forbids "excessive" bail Perkins. A police study in fiscal 1967 showed or fines, and "cruel and unusual punish that Perkins was arrested four times that HON. CHESTER L. MIZE ments." But as Senator Byrd of West Vir year for robbery or attempted robbery, and ginia pointed out in his excellent statement released each time on bail. When money bail OF KANSAS to the Ervin subcommittee, the very same was required, his mother mortgaged her home IN THE HOUSE OF REPRESENTATIVES Congress which promulgated the Eighth to raise the cash. In October of last year 46 Monday, February 17, 1969 Amendment in 1789 also enacted in that members of two grand juries who h ad heard year a law regulating bail. That law stipu more than 500 cases issued a st rong appeal Mr. MIZE. Mr. Speaker, on February 5, lated that bail "shall" be granted in crim for revision of the 1966 bail act . These grand 1969, I introduced legislation perfecting inal cases "except where the punishment jurors, 36 of whom were black, said t hey the Bail Reform Act of 1966. This leg may be deat h." In a death-penalty case the were "shocked day aft er day" to hear cases islation and similar proposals have been statute reserved t he decision on granting in which dangerous criminals were free on the subject of considerable editolial com b ail to the discretion of a judge. bond. Eddie M. Harrison's case illust rates Senator Byrd went on to point out, how the point. After his fourt h conviction for ment in the national press. ever, that in 1789, when this first bail stat fir·st-degree murder he was released by order While support of preventive detention ute was adopted, "practically all of the more of a panel of the Court of Appeals on per 1n noncapital cases has not been univer serious crimes carried the death penalty." sonal bond, which means no act u al bond, sal, there has been substantial support In this category of crimes, for which there pending his fourth appeal. from responsible commentators on con was no right to bail, were such offenses as One could go on and on-an increase in ditions of clime in the Nation's Capital. murder, robbery, stealing a ship or even robberies for example, of 207 percent in the counterfeiting a United States security. 2Y:z-year period from fiscal 1966 to calendar I contend that preventive detention in Where in all this can one find support if 1968. This appalling increase in crime, much noncapital Federal cases, properly ad for the argument that the Constitution re of it due to heroin addicts walking the streets ministered, will safeguard the public quires that bail be granted? Did the Con when they should be in jail or confined for while guaranteeing due process to those gress of 1789, which promulgated the Eighth treatment, is intolerable. Revision of the accused of selious clime. Amendment and also the Fifth Amendment, bail act to perinit judges to detain suspects Because of the widespread interest in which is sometimes cited, not understand who, on their pa-st records, would be a menace crime control, and because perfection what it was doing when in the same year to the community if released, would not be of the Bail Reform Act of 1966 is crucial it passed the bail statute? It may be worth a cure-all. But it would help-and this city noting that the Supreme Court, in 1952, needs all the help it can get. We hope Con to the full implementation of President said this: "The Eighth Amendment has not gress will act on this matter this year, and Nixon's program for clime control in prevented Congress from defining the classes let the Supreme Court settle the constitu Washington, I insert a recent editolial of cases in which bail shall be allowed in this tional question-If there really is one. from the Washington Sunday Star in country. Thus, in criininal cases bail is not the RECORD at this point: compulsory where the punishment may be death." ONE CRIME REMEDY: PREVENTIVE DETENTION It is true that Congress in 1892, a cen The evidence which has been built up over tury after the first bail act, revised the law A BILL TO AMEND THE TAX LAWS the past several months makes an over to substantially reduce the number of of whelming case for preventive detention-giv fenses for which the death penalty could be ing federal judges discretionary authority to imposed. It is also true that the 1892 Con HON. BOB WILSON keep dangerous criminals off the street. gress, whether from oversight or for whatever OF CALIFORNIA President Nixon called for this in his re reason, did not simultaneously cha.nge the IN THE HOUSE CJ1Il. REPRESENTATIVES cent crime message, pointing out that m any bail act. persons are now being arrested "two, three, But what are the sensible conclusions to Monday, February 17, 1969 even seven times" while free on bond and be drawn from this? If it wanted to do so Mr. BOB Wll..SON. Mr. Speaker, at awaiting trial. Legislation to modify the "bail in order to deny bail, Congress could rein reform" act of 1966 has been offered in the state the death penalty for robbery or coun this time of year we are all acutely aware House and the Senate. Many witnesses ap terfeiting. Surely no one in his right Inind of our financial obligations to Uncle Sam pearing in recent days before Senator Erv would advocate this. And there is no need to and I am today reintroducing legislation in's Subcommittee on Constitutional Rights do so. For it is quite clear, or so it seems to to correct a serious inequity in our tax have stressed the urgent need for prompt us, that this matter of a "right" to bail is structure. My bill would amend the pres and effective action in this area. not a constitutional question, but rather one ent tax laws to extend the "head of This view, of course, is not shared by every of statutory law. Congress has always had household" benefits to all unremarried one. There are some who say it would be and still has the authority to prescribe the widows and widowers and to all individ unconstitutional to deny bail to an accused circumstances under which bail may or may criminal between the time of his arrest or not be granted. If this is not correct, then uals who have attained age 35 and who indictment and his trial. Others complain it is unconstitutional to deny bail in a first have never been married or who have that such a practice would run counter to our degree murder case. Very few people would been separated or divorced for 1 year or traditional presumption of innocence. Their argue that this is so. more. arguments, we think, are flimsy. What about the presumption of innocence? Today the single person bears an un What the controversy really comes down This is fundamental in our system of justice. fair burden of our Nation's tax load. In to is whether law-abiding citizens are en But it is not a constitutional doctrine. It is, reviewing the tax structure I find that titled to the maximum protection against in essence, a rule of evidence which becomes Congress in 1948 legalized "income split crime and criminals which Congress can give operative at the time of trial. To some de them. Of course they are. gree denial of bail may be said to collide ting" for married couples who filed joint No one pretends that preventive deten with this presumption. But the same colli returns and then 3 years later, in 1951, tion is the whole answer to the crime prob sion is there in the denial of bail in murder enacted a "head of household" provision lem. Obviously it is not. But it is part of the cases, for in a murder case the presump which granted tax relief to single, di answer. Nor should anyone suppose that an t ion of innocence also prevails. vorced, or widowed individuals who sup equitable formula for denial of bail in the Is there a need in this Capital City, not to ported one or more dependents. Quite public interest will be easy to devise. The mention other federal jurisdictions, for pre frankly, the present laws affecting single, criteria by which a judge would determine ventive det ention? The need, we think, is widowed, or divorced individuals wit h no whether a particular suspect should be de especially imperative here, where all violent nied bail on the ground that his release crimes are covered by federal law-a situa dependents are quite unrealistic in view would endanger the public will be difficult tion which does not prevail in the states. of the demands and expenses of present to establish. But they can be established. Generally speaking, judges under the 1966 day living requirements. It will also be necessary to fix a time period, bail act can consider but two things in According to a study by Joseph A. perhaps 60 days, in which an accused man deciding whether to grant or refuse bail. Pechman, director of economic studies must be brought to trial or released unless One has to do with the suspect's community for the Brookings Institution, who con excessive delay in trial resulted from dilatory ties. The other is whether he can be expected ducted the first comprehensive study of motions filed in his behalf. Perhaps there to show up for his trial. the tax system since the tax reduction should be provision for an immediate appeal How ha-s this worked in practice? A Star and reform bill of 1964, the income tax from denial of bail. Thought should be giv study of 67 arrests made for robberies of en to granting money compensation to a financial institutions last year showed that 22 law discliminates heavily against single person held without bail and subsequently percent of these suspects were out on bail persons. The present joint return system found not guilty. Other difficulties will sug when captured. But this does not give the for marlied couples assumes, according gest themselves. But the solutions can-and full picture. Many such robberies last year to Mr. Pechman, "that it costs twice as must--be found. did not result in arrests, and an unknown much for two persons to live as it does EXTENSIONS OF REMARKs· February 17, 1969 for one. This is not so-studies of family even impossible, to get the kind or schooling pendent C2lechoslova.k1a. This Russian ag budgets indicate that it costs about needed to get into college. gression is a flagrant violation of the United There are some who say we should lower Nations charter, the terms of the Warsaw three-fourths as much for one person to college admission requirements for such stu Treaty and all accepted standards of inter live as it does for two.'' dents. But even 1f this should beco:me public national behavior. By this act, Russia stands Looking at the problem realistically, policy, nagging questions remain: guilty before the world of a brutal crime not the expenses incurred by the adult person How much should the standards be low only against the Czech and Slovak people but a lone are not too very different from ered? Should they be lowered only for blacks, against all of humanity. those incurred by a family or household or for whites too? (After an, a lot of white The tragic events 1n Czechoslovakia have head with dependents. For example, the students get such poor schooling they can't proved once again that we can never trust single person must also provide housing, meet current college requirements either.) the Russians. Russian historical imperialistic How :many sub-standard students should interests and not social i:mprove:ment of the furniture, home maintenance, food, in a college admit? And how can a college jus human lot are the primary goals of the com surance, et cetera, just as the family tify turning away applicants With higher munist dicators in the Kremlin. Russia does. It costs no less for him to live, yet credentials to make room for less-qualified never abandoned her centuries-old imperial he bears an unfair burden of the tax load. people? istic conquest of other countries and the To be more spedfic, the tax differential These are questions which challenge the idea to rule the world. in income levels between $6,000 and mind and churn the soul. Por they evoke One should be aware that the members of $12,000 for single persons and heads of no quick or easy answers, except among the the U.S.S.R. except for Russia are all sub households ranges from $70 to $290. One misinformed. jugated nations. Those subjugated nations are waging a relentless heroic struggle to free point which emphasizes the need for this GU ARANTEE DIPLOMAS? themselves from Russian Communist op legislation is the fact that of the 18 mil Even if a satisfactory way should be found pression. lion single persons in the United States t o open up all colleges to so-called disadvan Most of the American newsmedia, includ 35 and over, 13 million are women. Main taged students (what-ever their race), a seri ing The Evening Star responded properly to tenance of decent and safe living ac ous question would remain: How many could the act of aggression. We fully agree With the commodations for them is a must. make the grade? position that this Russian Imperialistic ag Special tutoring undoubtedly would help gression should be condemned in the United For these reasons, I am today reintro some. But there's a limit to tutors and the ducing this bill which I feel is timely in Nations forum and in every other conceivable money to pay for them. forum. World public opinion has already view of the fact that our esteemed col Of course, we could simply guarantee a voiced its condemnation of this aggression. league, the chairman of the House Ways diploma to everyone who enters college. Although condemnation of this act of Rus and Means Committee, is opening hear That's what some militants in Baltimore are sian aggression carries With it great moral ings tomorrow on tax reform legislation. demanding-assurance that every black stu weight, it alone provides no solution. The dent admitted to medical school will get his U.S. and all the nations of the Free World MD degree. should pursue a policy of liberation of Czech But this is utter nonsense. Even those oslovakia, Hungary, Ukraine and other cap DON'T WASTE BRAINS promoting such fail-safe foolishness tive nations in Eastern Europe. and other wouldn't want to be treated by legalized parts of the world. The World half-free and quacks masquerading as doctors. half-slave cannot survive. Until the last ves HON. JAMES G. FULTON Let us, by all means, broaden the oppor tige of tyranny is erased from Eastern Europe tunities for higher education in America. and wherever else it may exist there can be Oll" PENNSYLVANIA But let us not transform our colleges from no peace. IN THE HOUSE OP REPRESENTATIVES educational institutions to diploma mills. Sincerely, Monday, February 17, 1969 For then nobody's diploma would be worth VOLODYMYR Y. 1\fAYEWSKY, more than a counterfeit bill. Chairman. Mr. FULTON of Pennsylvania. Mr. Speaker, it is a pleasure to place in the RE:CORD today an excellent editorial en THE ORGANIZATION FOR THE DE VOTING PRIVILEGES FOR 18-YEAR titled "Don't Waste Brains" written by FENSE OF FOUR FREEDOMS FOR OLDS Mr. Jolm Troan, editor.of the Pittsburgh THE UKRAINE, INC. Press newspaper. It is certainly necessary to broaden the HON. DANTE B. FASCELL opportunities for higher education in our HON. JOEL T. BROYHILL OF FLORIDA Nation today, and I believe that this edi Oll" VIRGINIA IN THE HOUSE OF REPRESENTATIVES torial raises many of the discussion IN THE HOUSE OF REPRESENTATIVES J;fonday, February 17, 1969 points relevant to determining our na Monday, February 17, 1969 tional policy of how new changes should Mr. FASCELL. Mr. Speaker, I am to be accomplished: Mr. BROYHll...L of Virginia. Mr. day reintroducing legislation which I DoN'T WASTE BRAINS, BUT DoN'T SAP COLLEGES, Speaker, during the recent campaign I sponsored in the 9oth Congress that EITHER was approached by a constituent, Mr. would extend the right to vote to all citi (By John Troan) Volodymyr Y. Mayewsky, 2111 Jefferson zens 18 years old or older. I join the many No one can deny there is a scarcity of Davis Highway, a constituent of mine, other Members in proposing an amend Negro students in our colleges. with a request that I include a copy of ment to our Constitution which reads: I mean: If you take into account the num a letter he wrote to the editors of 75 No citizen of the United States who is ber of Negroes there are in America, those national newspapers, protesting the ac eighteen years of age or older shall be denied who go on to college are pitifully few. tivities of the Russians in Czechoslovakia. the right to vote by reason of age. This is bad for black people in particular. Mr. Mayewsky is chairman of the Orga And I believe it is bad also for America in Today, more than ever before, our general. nization for the Defense of Four Free youth deserves the right to vote. They are For I am convinced this country is over doms for the Ukraine, Inc. undoubtedly better equipped than before looking a lot of good black brainpower, a lot As I have the fullest sympathy for Mr. to exercise responsibly the voting privi of fine black talent. And in a world where Mayewsky's views and for the determined lege. The average 18-year-old has just the champions of freedom (that includes us, effort his fine organization has made to completed high school studies in Ameri of course) are outnumbered to begin with, publicize the plight o:f the millions living we should exert every effort to make up in can history and civics. In 47 of our 50 quality what we lack in quantity. under Soviet domination. I am pleased to States, courses in American government, The problem is to ferret out this hidden include the full text of his letter to the comparative government, the political t alent in our midst and to cultivate it. But Washington Evening Star at this point process, American history, and related how to accomplish this is the real hang-up. in the RECORD: subjects are required of each high school In the first place, it isn't as simple as ORGANIZATION FOR THE DEFENSE OF graduate. Thus, an 18-year-old, just out some student militants insist to find blacks· who can qualify for college admission. FOUR FREEDOMS FOR UKBAINIANS, of high school, is well informed and eager INc., to join in the political process. He is I'm not saying this is the fault of the Washington, D.C., August 27, 1968. blacks. More likely, it is the fault of the prime for civic responsibility, yet by re The EDITOR, THE EVENING STAR, fusing him the vote, we pull the rug from system. C/ O Mr. NEWBOLD NOYES, Jr., TOUGH QUESTIONS Washington, D.O. beneath his feet and leave him suspended Because they live in substandard neigh DEAR Sm: The Public is aghast at the for 3 years. borhoods, most blacks wind up going to treacherous ag!n"ession of the Russian Com There are several concrete arguments substandard schools. That makes it difficult, munist Empire against sovereign and inde- in favor of extending the voting privilege February 17, 1969 EXTENSIONS OF REMARKS 3587 to 18-year-olds. Besides their outstand The people of Lithuania, who have FROM A MnJ:TARY RETffiEE'S ing scholastic training, many young men throughout their history struggled for POINT OF VIEW are now called on to serve their country these very freedoms, have continually in the Armed Forces at age 18. While suffered from the cruel repression of one opponents of my proposal contend there oppressor after another. HON. THOMAS N. DOWNING is no correlation between the qualities It was on February 16, 1918, that OF VZRG:INXA needed to vote intelligently and those Lithuania declared her independence, a IN THE HOUSE OF REPRESENTATIVES requisite to :fighting, I feel that both as goal for which her people had been striv Monday, February 17, 1969 sume a sense of duty and responsibility. ing throughout long periods of domina In addition, young people are legally tion by both Russians and Germans. Mr. DOWNING. Mr. Speak-er, on Feb able to sign job contracts and are re As an independent nation Lithuania ruary 4, I introduced a bill in behalf of quired to pay property and income taxes flourished. Developments were made in our military retirees which would amend at 18. The ability to assume these legal agriculture and a comprehensive pro title 10 of the United States Code to responsibilities indicates to me the ability gram of land reform was instituted, equalize the retirement pay of members to assume the responsibilities of the shaping Lithuania into a nation of small of the uniformed services of equal rank voting privilege. farmers. During this period industriali and years of service. I have been very Besides these important factors, I feel zation progressed and great strides were interested in rectifying this inequity for there is one very important element made in social legislation. Lithuania be some time and I have been conferring gan to develop a culture of her own sup with several members of the Retired Of which I have not emphasized sufficiently, ficers Association. Comdr. Justus P. and which was brought out to me just ported by great achievements in music, White, Coast Guard, retired, recently this weekend. Yesterday I had the privi opera, and literature. This truly was sent me a copy of his article entitled, lege of speaking at the dedication of a Lithuania's "golden age." "From a Military Retiree's Point of teen center in Key West, Fla. While Sadly, though, independence was View" which will appear in the January there I met many fine young people shortlived as Lithuania fell under the issue of the Coast Guard Academy Alum teenagers keenly interested in my ideas sword of the Russian Army during the ni Bulletin and in the March issue of the and positions regarding some of the Second World War. Declared a con Retired Officer magazine. I am also at toughest issues before us today. Their stituent republic of the Soviet Union on taching the article for insertion in the questions showed amazing insight into August 3, 1940, Lithuania was subjected CONGRESSIONAL RECORD. these critical issues-and their own re to Nazi rule 10 months later. German oc sponses to these problems displayed a cupation augured in a policy of coloni FROM A MILITARY RETIREES POINT OF VIEW Persons who entered the uniformed serv fresh, new approach, and an urgent, en zation and execution. When the tide ices prior to June 1, 1958 have suffered a thusiasm for righting the difficult prob turned against the Germans, Lithuania serious loss of earned retired pay due to the lems which trouble us all so very much. was not to return to independence. Soviet action of Congress in precipitously suspend I have always had a great deal of faith in domination followed as the Russian ing the favorable system existing prior to t hat our young people, but I was again amazed Army again marched West. By the end of time and later substituting a less satisfac at the depth of their concern and their 1944, all of Lithuania had fallen prey tory system. insight. They urgently desire to have to the Soviets. At that time and for almost a hundred years before then the U.S. Code contained the right to participate in our Govern The borders of Lithuania were sub specific provisions entitling uniformed serv ment, and we can no longer deny them sequently sealed and have remained ices personnel to retired pay based upon cur that right. sealed. Those who successfully fled from rent active duty rates. Mr. Speaker, I hope that the concerted their native country to seek freedom in a Although such persons had no signed con efforts of all Members who favor lowering new land report a total absence of free t ract with the U.S. Government promising the voting age together with the hard dom and the imposition of totalitarian them that this system would be continued rule in their mother country. The Lithu after their service was completed, there was work and new ideas of the recently estab certainly a moral obligation on the part of lished Youth Franchise Coalition will ania of today is a product of aggression the Government not to reduce the benefit result in favorable action on this proposal and tyranny wrought upon a small na after it was earned. during the 91st Congress, and call on all tion by a superpower bent on world The more than 500,000 retired career per of our colleagues to work toward that domination. sonnel, both regular and reserve, who had end. The enslavement of these noble people served in two World Wars, Korea, and Viet is a black mark on the history of the nam, believed that the Government would world. Today Lithuanians continue to continue to honor that obligation by preserv ing their entitlement to those rights and LITHUANIAN INDEPENDENCE DAY resist domination and alien rule. ·we benefits earned under existing law during here in the United States reassert the their active service. Faith in that belief was right of these people to govern them strengthened by repeated governmental HON. THOMAS J. MESKILL selves-to again be free and independent. st atements concerning the matter. OF CONNECTICUT The United States has never recognized In 1806, in the case of United States vs. IN THE HOUSE OF REPRESENTATIVES the incorporation of Lithuania into the Heth, (7 US 399, 2L, Ed. 479), the Supreme Soviet Union. Court stated: Monday, February 17, 1969 "While it is true that pay is subject to the As former Secretary of State, Dean will of Congress, the presumption is where a Mr. MESKILL. Mr. Speaker, February Rusk, said in 1967: person performs service under the prospect 16 is the day that commemorates the 51st United States support of the Lithuanian of certain emoluments, it is in the interest anniversary of the independence of people's just aspirations for freedom and of the Government to engender a confidence Lithuania. I ask my colleagues to join independence is reflected clearly in our in the minds of its citizens which leaves no with me in paying tribute to a people refusal to recognize the forcible incorpora room for distrust ..." whose courage in the face of great ad tion of your country into the Soviet Union The Military Retirement System was versity has remained strong and vital and in t he warm sympathy manifested by initiated by Congress during the Civil War. an example for all the peoples of the the American people in the Lithuanian It was at this time that the basic principle cause. of keeping retired pay geared to current act ive world. In continuing to look resolutely toward a duty pay schedules was established. This We in the United States often take free and independent existence, the Lithu basic principle apparently was not seriously our freedom for granted. We forget that anian people both here and abroad have challenged by successive Congresses until not all people throughout the world en established a firm foundation for the hope of passage of the Joint Services Pay Act of 1922, joy the rights and privileges of a free and free men everywhere that the goal of Lithu which denied to those retired prior to the open society. On a day such as this, we anian national self-determination will ulti effective date of the Act the right to recom realize that only a minority of the mately be realized. pute their retired pay on the basis of the new schedules. The 69th Congress, in pass world's population lives under the rule of It is this eternal hope and courage of a ing Public Law 204 in 1926, corrected this governments that permit freedom of people dedicated to the pursuit of free injustice and the Senate report, 8-364, 69th thought, speech, and expression. dom that we pay tribute to today. Congress, contained this st atement: 3588 EXTENSIONS OF REMARKS February 17, 1969 "The 1922 legislation deprives all officers bers of the House of Representatives and tradition of computing compensation for retired prior to that date of said benefits, thirty-one Senators introduced bills designed military retirees. By this time there was a thereby violating the basic law under which to correct this tragic mistake; dozens of news general awareness of the existence and con these officers gained their retirement rights. papers and magazines :from coast to coast tents of Section 1401 and Congress, in pass There is no justice in two pay schedules :for carried editorials calling upon the Congress ing PL. 88-132, specifically repealed that equal merit and equal service." to meet its moral obligations. On May 12, Section. In lieu of the law under which these In January 1931, a Joint Congressional 1960, the House of Representatives without military retirees had earned their retirement Committee, after reviewing the overall Mili a dissenting vote, passed H .R. 11318, which rights, this new Act provided that all re tary Compensation System, stated in Senate would have restored the historic principles tirees would have their retired pay adjusted Document 259, 71st Congress, 3rd session: prescribed 1n Title 10 USC 1401. However, in in the :future in accordance with a fonnula "The pay of any person on the retired list spite of this overwhelming expression of pub based on the illusive Consumer Price Index. should be based on the pay of persons of like lic opinion, the Senate Armed Services Com A determined group, ably led by the Honor grade on "the active list." mittee refused to hold hearings on the House able L. Mendel Rivers, finally convinced Con On June 16, 1942, the 77th Congress, in passed bill and permitted it to die upon ad gress that a gross injustice had been visited passing Public Law 607, recognized the pro journment of the 86th Congress without upon those persons who had retired prior visions of existing law relative to comput giving the Senate an opportunity to debate to June 1, 1958, and had been denied an in ing retired pa y when it stated in Section 15 the bill. crease based upon the pay scales authorized thereof: It is interesting to :note that when the by P .L. 85-422. Belatedly, they were author "On and after the effective date of this Act, Pay Act of 1958 was enacted, no reference ized the raise that they should have received retired officers • • • shall have their retired was made t o Section 1401, although that is in 1958. pay • • • computed as now authorized by the Section which provided the statutory One of the most tragic consequences of law on the basis of pay provided in this Act." authority to compute retired pay on active the new system is that merit and length of In 1946, in passing Public Law 474, the duty rates. Further, in the hearing before service are no longer primary factors in de Congress again adhered to the existing law the Senate Armed Services Committee on termining the compensation a retiree will by permitting those already retired to par June 7, 1962, Senator Smith of Maine ques receive during the inactive phase of his ca ticipate in the new pay schedules. tioned Secretary McNamara relative to the reer. On the contrary, it has now become a Career members of the uniformed services, provisions of existing law as it applied to matter of when the individual was born and regular and reserve, active and retired, had computing retired pay and the Secretary how successful he was in manipulating a their faith in the dependability of their replied: favorable retirement date. During the brief earned retirement rights further strengthened "I don't recall that the law stated that span of time since June 1, 1958 seven differ in 1949 when the Advisory Commission on retired pay would remain a constant, or ent categories of retirees of equal merit and Service Pay (The Hook Commission) recom would continue to have a constant relation equal service have been developed. For exam mended that the Congress continue to up- ship to active duty pay as active duty pay ple, an 0-6. (Captain or Colonel) with over 30 • hold the basic principle of keeping retired changed subsequent to retirement. I under years of service retiring on September 1, 1968 pay geared to current active duty pay sched stood that was a practice rather than an ac receives $198.84 more per month than his ules. The recommendations of this Commis tion required by law." brother officer of the same rank and length sion were accepted by the Congress when it Senator Smith requested that this point of service who retired prior to June 1, 1958. enacted Public Law 351 in October 1949. Sec be checked and the Committee be provided Millions of words, both spoken and writ tion 511 of this law reads in part: with an appropriate statement. The informa ten, have been addressed to this subject dur "Retired pay shall be computed on the tion subsequently submitted by Secretary ing the past ten years in an effort to justify monthly basic pay • * • which such mem McNamara to the Committee established em the abrogation by the Government of its ber would be entitled to receive if serving phatically that authority for recomputation moral responsibility. And yet, the hard core on active duty in such grade." of pay by retired officers in the past had been fact remains that those members of the Uni In 1952 and again in 1955, Congress en based on clear provisions o:f law rather than formed Services who entered upon their ca acted legislation increasing the pay of the on mere practice. reers prior to June 1, 1958 performed their active services and, in each of these laws, The distressing point of this exchange is service under a legally guaranteed formula continued the time-honored principle of that it occurred four years after passage of whereby their retired pay would be deter equating retired pay to current active duty Public Law 85-422, which denied the benefits mined as a percentage of current active duty pay. of Section 1401 to retirees, and the evidence pay and the actions of Congress in passing In 1957, the Cordiner Committee, which, is clear that the Secretary of Defense did not Public Laws 85-422 and 88-132 reduced the like the Hook Commission, had been formed know what it provided. Also, one cannot help guaranteed benefits after they had been fully to study the military compensation system wondering how many of the seventeen Sena or partly earned. The fact that such rights concluded: tors on this important Committee were fully are not legally enforceable cannot 1n any "* * * that the incentive value of the aware of this important and vital Section of way mltigatte the moral responsibility of the existing military retirement system depends Title 10. Government to provide compensation to re to a major degree upon its integral relation On October 2, 1963,· Congress took the tirees in accordance with the laws in effect ship with active duty compensation and the final step 1n destroying the century old when the compensation was earned. confidence which has been built up in the military body that no breach of faith or MILITARY RETIRED PAY-AMOUNTS OF RETIRED PAY DRAWN BY RETIREES WITH 24 YEARS OF SERVICE, AS AFFECTED BY breach of retirement contract has ever been DATE OF RETIREMENT permitted by Congress and the American people." "The uniformity of compensation thus Retired between- achieved is considered appropriate and the Retired June 1, 1958, Apr.l,1~~d Sept. 1, 1964, Sept 1, 1965, July 1, 1~~~ Retired inclusion of retired personnel within the before and and and after new compensation system is considered by June 1, 1958 Mar. 3.1, 1963 Aug. 3.1, 1964 Aug. 30, 1965 June 30 1966 June 30, 1968 July 1, 1968 the Committee to be a mandatory and essen Major_. ______• • tial feature, fully in consonance with the $433 $446 $500 $512 $520 $536 $562 long-established principle that retired com E- 7------·---- 240 248 270 276 294 303 318 pensation must always remain closely related to current active duty pay." The differential in dollars and percentage a nwnber of inequities which force our Obviously, the recommendations of the in each grade between the oldest and young Cordiner Committee fell on deaf ears when est group is: lower- and middle-income families to the Congress, in enacting Public Law 85-422 Major, $129 or 29.7 percent. carry a disproportionate share of the tax on May 20, 1958, chose to ignore these rec Sergeant (pay grade E-7) $78 or 32..5 per burden. Therefore, I am glad to note that ommendations by denying to those already cent. the distinguished chairman of the Ways retired, the right to have their retired pay and Means Committee, the Honorable recomputed on the basis of the active duty WILB.UR MILLS, has announced early pay scales authorized by that law. Such ac Bn...LINTRODUCED BY MR. DELANEY tion was taken notwithstanding the fact that hearings on tax reform, with the eventual TO INCREASE INDIVIDUAL TAX hope of revising the entire tax structure. existing law (10 USC 1401) clearly provided EXEMPTION TO $1,200 that "retired pay would be computed at rates Certainly one of the most unrealistic applicable on date of retirement and ad aspects of this situation is the $600 per justed to reflect later changes in applicable HON. JAMES J. DELANEY sonal exemption which was adopted in permanent rates." 1948, and today I am o:ffering a bill to The reaction was immediate and the na OF NEW YORK IN THE HOUSE OF REPRESENTATIVES increase the individual exemption to tional conscience was thoroughly aroused. $1,200. Hopes ran high, and with good reason, that Monday, Februarv 17, 1969 this injustice would be corrected forthwith. At the time the present exemption was Fifteen State Legislative bodies passed mem Mr. DELANEY. Mr. Speaker, many of adopted the median family income, ac orializing Resolutions urging Congress to us have long been urging a comprehen cording to the Bureau of Census, was $3,- enact remedial legislation; over forty mem- sive review of our tax structure to remove 031. Under these circwnstances. each February 17, 1969 EXTENSIONS OF REMARKS 3589 $600 deduction represented 20 percent of surveys. But only five years ago, there was a have again this session introduced a res a family's yearly income. However, today strong vein of opposition to lowering the olution 1·equesting the President of the the most recent census statistics place voting age. That trend of opposition went United States to instruct our Ambassa the median family income at $8,017, back 20 years. dor to the United Nations to place the which means the current $600 exemption The comparison: Baltic States question on the U.N. amounts to only 7.5 percent of the aver {In percent) agenda and to have the United Nations age family income. request the Soviets to withdraw their While it is true that today's family has May February October Current troops and controls from Lithuania, Lat greater income than it did in 1948, much 1964 1967 1968 survey via, and Estonia. This resolution would of this difference has been the result of also call upon the U.N. to conduct and Favor voting age the devastating forces of inflation which at 18 years _____ 43 59 56 58 supervise free elections in these three have increased the cost of living by Oppose ______56 38 41 40 Baltic nations so that the historic prin nearly 40 percent in the last 20 years. NoncommittaL ___ 1 3 3 2 ciple of self-determination of peoples While there are differing views on the TotaL ______100 100 100 100 would be legitimately applied there. I purpose of a tax exemption, a common urge that this resolution be acted upon belief is that the deduction should allow Gov. Harold LeVander has endorsed bills during this session. the taxpayer sufficient tax-free money which have been introduced in both houses We must take practical steps, Mr. to care for the basic needs of his family. of the Minnesota Legislature calling for a Speaker, on behalf of the oppressed peo This point is emphasized in a 1947 Treas constitutional amendment to lower the vot ple of Lithuania. Neither the Voice of ury Department report relative to the ing age from 21 to 18. America nor Radio Free Europe is doing If the measure passed at this session of an effective job of broadcasting behind purpose of tax exemptions, which states: the Legislature, Minnesotans would consider It is to be regarded as essential to exempt the amendment at the polls in 1970 and, if the Iron Curtain. With the evidence be amounts required to maintain the individ approved, the change would take effect for fore us in Czechoslovakia of the deter ual and his family in health and efficiency. the 1972 general election. mination of the tyrants in Moscow not This is the question asked of state resi to permit freedom to develop behind the Based on this policy, the present $600 dents: Iron Curtain, we should recognize the exemption does not come near covering "Do you think Minnesota should or should futility of a coexistence with intel·na the modest essential needs of our fam not allow persons 18, 19 and 20 years-old to tional communism. The brave people of ilies today. The Department of Labor vote?" Lithuania recognize that they must con informs me that the most recent statis Young persons and older state residents tinue to maintain their unique historic tics, which cover the year 1966, show that differ markedly on the issue, independent voters are more inclined to support the cultural background despte the efforts of the money needed for a family of four to the Soviet regime to Russify the people live in modest comfort is $9,283 per year. change than are either Democratic-Farmer Labori tes or Republicans: of the Baltic States. In this connection, it should be noted that By commemorating the independence in 1939 the exemption for a single person Iln percent! of Lithuania, we demonstrate our con was $1,000, and $2,500 for a married tinuing efforts for the ultimate restora couple without children. Favor 18 year Noncom- tion of freedom to their land and to the The realities of the above statistics voting Oppose mittal other captives of communism. clearly demonstrate that a more realistic tax deduction is needed to reduce the All State residents ______58 40 2 awesome tax burden borne by our low 21 to 29 years old ______68 31 1 and middle-income families. 60 years and older------44 53 3 Dfl'ers ___ ------55 43 2 HUNGER IN AMERICA Republicans ______54 43 3 Independents ___ ------__ 67 30 3 HON. ROBERT 0. TIERNAN EIGHTEEN-YEAR-OLD VOTE Not all of those who opposed 18-year-old OF RHODE ISLAND voting are against lowering the voting age. "It seems to me that 18 is a bit yoUDg IN THE HOUSE OF REPRESENTATIVES HON. DONALD M. FRASER but 20 years would be all right,'' a retired Monday, February 17, 1969 OF MINNESOTA Minneapolis janitor said. Mr. TIERNAN. Mr. Speaker, I know IN THE HOUSE OF REPRESENTATIVES that many of my colleagues share my Monday, February 17, 1969 concern over the problem of hunger Mr. FRASER. Mr. Speaker, support THE 51ST ANNIVERSARY OF THE throughout the world. I feel too, however continues to grow for proposals to lower DECLARATION OF INDEPENDENCE that many of us have been lulled into a the voting age to 18. This is one of the OF LITHUANIA false sense of complacency with regard to issues being considered by the Minne the proportions of this problem right sota State Legislature. As the following here in America. Minnesota poll, published in a recent HON. EDWARD J. DERWINSKI That this Nation, the wealthiest and Minneapolis Tribune, indicates, a ma OJ' ILLINOIS most powerful the world has ever known, jority of Minnesotans-nearly six out of IN THE HOUSE OF REPRESENTATIVES should have hundreds, indeed thousands, 10--favorstheidea: Monday, February 17, 1969 of its citizens living at or near the star vation level in 1969 is truly unacceptable. FIFTY-EIGHT PERCENT FAVOR VOTE AT AGE 18 Mr. DERWINSKI. Mr. Speaker, yester Yesterday the New York Times began Minnesotans continue to support lowering day we commemorated the 51st anniver a most penetrating investigation of this the voting age to 18. sary of the Declaration of Independence In the latest statewide sampling of opinion crucial problem. Entitled "Hunger in by The Minneapolis Tribune's Minnesota of Lithuania, that brave nation which America", the Times and its veteran cor poll, nearly 6 out of 10 adults state residents has suffered under Russian control for respondent Homer Bigart have taken the (58 per cent) said voting should begin at age so many years but whose people have wraps off of a situation that many 18, instead of 21. never ceased to strive for freedom. Americans will find to be incredulous. I "Young people know as much at age 18 as On February 16, 1918, after 123 years urge all of my colleagues to read the first they do at 21," a Marshall County housewife of occupation by czarist Russian forces, two installments of this series and I will commented. the Lithuaniain people declared their in insert the subsequent articles as they Of the balanced cross section of 598 men dependence and instituted a democratic appear. and women interviewed earlier this month, republic which flourished for 22 years HUNGER IN AMERICA: STARK DEPRIVATION 40 per cent were opposed to giving 18, 19 and before they were again cruelly oppressed 20-year-old.s the right to vote in Minnesota. HAUNTS A LAND OF PLENTY-I "When I think of the way kids are acting by the Communists and Lithuania was (By Homer Bigart) on campuses these days, I certainly don't made part of the Soviet Union. BLUFFTON, S.C.-Bunger is a noun that think they should have the vote," a 86-year Mr. Speaker, we in the Congress should means, among other things, a compelling de old Grant county woman said. take positive action to show the cour sire for food, a nagging emptiness of stom Findings in the current survey are con ageous people of Lithuania that we sup ach and guts. Persons old enough to re sistent with other recent Minnesota Poll port their longing for independence. I member the Great Depression may recall go- CXV--227-Part 3 3590 EXTENSIONS OF REMARKS February 17, 1969 lng hungry, but today it 1s a sensation gen kwashiorkor and scurvy. He remarked how ladies, Dr. Gatch suspected, had been eating erally reserved for those mired in poverty. the baby's hair had thinned, how the hair little more than rice and grits. Chronic hunger seems so remote in this line had receded about an inch, and how the Now they were on Medicare and presum bounteous land that reports of extreme mal hair color had changed from black to dirty ably getting a better diet. The old store was nutrition among Negroes in the rural South, gray. These were the stigmata of kwashior spotlessly clean, neater than most nursing among migrant farm workers, among Mexi kor, he said. homes. can-Americans and reservation Indians have He took the infant girl from the mother's Dr. Gatch was asked if he had encountered been down as exaggerations and lies, the ob arms and placed her on a sofa. The baby kept pellagra, one of the more dreaded of the servers frequently assailed as charlatans or her matchstick legs drawn up and raised her dietary difficiency diseases. This disease, do-gooders who would sap the initiative of arms until the tiny hands were bent close to caused mainly by a deficiency of niacin, but the hungry poor of expanding "giveaway" her head. Then she stopped crying. also of thiamine, riboflavin, folic acid and Federal food programs or even conspiring for "As long as the baby is completely still, other essential nutrients, is marked in its adoption of a guaranteed minimum wage. she's comfortable," Dr. Gatch said, "but pick late stages by the classical four D's: derma Here 1n Beaufort County, Donald E. Gatch, her up and she'll start crying again." titis, diarrhea, dementia and death. an intense youthful-looking country doctor, He noted the extreme dryness of the skin, Dr. Gatch said it was not even rare. He had been shunned by the white community the absence of subcutaneous tissue. He said produced an old man of about 70 who, he by Insisting that hunger is a dally fact of the baby's diet was so deficient in iron that said, had pellagrin symptoms including hy life among the black families of this mossy her hemoglobin count was "half of what it perpigmentation of elbows and knees. There tidewater. should be." the flesh had thickened and roughened un He began losing his white patients two The baby's mother had been out of work til it felt like sandpaper. years ago after he charged publicly that he since December. Dr. Gatch said the infant How many pellagra victims had he seen? had seen children dying of starvation, that was now getting some baby formula food. It "I would guess 150 to 200 cases," Dr. most black children of his area were In would probably live, he said, but he feared Gatch replied. fested with worms, and that families were it had suffered irreversible damage through Deaths by starvation, deaths by any of living in hovels worse than the pigsties of growth retardation of bones and brain cells. the diseases of malnutrition, were never his native Nebraska. As he left, Dr. Gatch noticed a 3-year-old counted, he said. Too many death certificates The Beaufort Gazette accused him of girl sitting on the stoop, staring vacantly at simply read "natural causes," Dr. Gatch said, "running his mouth." Every other doctor in the brown fields. Her legs and face were and he intended t.o campaign for postmor the country signed a statement deploring bloated by edematose swellings, the result tems in those cases. his "unsubstantiated allegations," contend probably of Vitamin A deficiency, the physi Over the years Dr. Gatch became con ing that the "rare cases of infant malnutri cian said, the same deficiency was impairing vinced that there was close correlation be tion" that came to their attention were her vision. tween malnutrition and intestinal parasites. Invariably due to "parential inexperience, in "There's just no excuse for rickets in this Most of the undernourished children he ex di1ference or gross neglect." And the County country," complained Dr. Gatch as he drove amined were wormy. Many Negro shacks, he Health Office, Dr. H. Parker Jones, said he to another shack, hunting this time a whole observed, had no privies; people relieved had "never seen a case of starvation or ex family that he claimed was rachitic, a mother themselves in the fields and woods. Children treme malnutrition." and five children. treated for worms quickly became reinfested Ostracized by the staff of Beaufort Coun Rickets is a disease of infancy and child by stepping on feces that contained the eggs ty Memorial Hospital, annoyed by threaten hood resulting from a deficiency of Vitamin of parasites. ing telephones calls, boycotted by white pa D and characterized by soft, deformed bones. "If you have 100 or 200 of these foot-long tients, Dr. Gatch closed his Beaufort office, The rachitic family was not at home, but roundworms in your belly they're going to sold his home and moved with his British Dr. Gatch found them on the stoop of a take a lot of food," he said. "They migrate born wife and two young sons back to Bluff neighboring house. to the stomach and actually get the food be fore the child does." ton (pop. 356), where he had started his ALL H.\VE MISSHAPEN LEGS practice 10 years ago. Some notion of the extent of infestation One chilly, overcast day at the tag end of The victims had gotten some relief and in the Negro children of Beaufort County January Dr. Gatch consented to take a visi were now on a proper diet, Dr. Gatch said. was given a few days later. A study of 178 tor on a tour of Negro shanties near Bluffton. All had misshapen legs. The mother, who Negro preschool children showed that nearly seemed stout and cheerful, was very bow three of every four had intestinal parasites LIKE A MISSIONARY OUTPOST legged; her chlldren were either bowlegged either ascaris (roundworm) or trichuris The doctor, who sometimes appears dis or knock-kneed. Dr. Gatch commented that (whipworm) or both. consolate and withdrawn, peered glumly at the legs of the three older children seemed "Fantastic," said Dr. James P. Carter, nu the scene through horn-rimmed spectacles to have straightened somewhat, but the tritionist of the Vanderbilt University School that kept sliding down his nose. From the twisted spindly legs of the two youngest re of Medicine, who participated in the survey. clay road the weathered shanties, woodsmoke mained badly deformed. "Parasitism in Beaufort County ranks with curling from the chimneys, looked quite Milk is the main source of Vitamin D, Dr. some Central American countries and with charming. But Dr. Gatch, in his low tired Gatch noted, and the family might never Egypt." voice, spoke only of the overcrowding, the have been blighted with rickets if fortified In Nashville, Dr. Carter said the nutri filth and the smell of poverty within. milk had been available to them. tional status of the 178 children was "in The Gatches had taken over a group of But the Government's food donation pro most cases inadequate and in all instances summer cottages on the bank of a tidal grams for the domestic poor did not provide minimal." He said that by minimal he meant creek, living in one, using another for fre fortified dry milk until the end of 1968. Dr. thr.t the children had a low margin of safety, quent guests (nutritionists and sociologists Gatch might have been angrier had he particularly from pneumonia and diarrhea. from all over are coming to see him) and known that since 1965, at the insistence of The survey, financed by the Field Foun hoping to convert a third into a clinic. (The the United States Public Health Service, the dation, was conducted by researchers from doctor maintains a large, well-equipped office Department of Agriculture had been ship the University of South Carolina, the Me in the center of the village.) ping dry milk enriched by Vitamins A and D harry Medical College, in Nashvllle, and Van The Gatch compound, shaded by live oaks to American aid programs overseas. derbilt University. decked in Spanish moss, had the quiet, The three-year gap during which fortified The results were considered so shocking mournful isolation of a missionary outpost milk was sent overseas while being denied that some even suggested that the data be in central Africa. The African connection wa~ to the poor at home came to light last withheld from general publication. Many further strengthened when Dr. Gatch re month in testimony before the Senate Select white Southerners feel that poverty condi marked that he had treated several children Committee on Nutrition and Human Needs. tions among the rural blacks have been ex for kwashiorkor, a disease generally thought Dr. Gatch stopped at an abandoned coun ploited by civil rights zealots. to exist only in underdeveloped countries. try store. Inside, two bedridden old ladies Dr. E. John Lease, nutritionist of the Uni Kwashiorkor is a Ghanaian word meaning had found terminal shelter. One of them, versity of South Carolina, was among those literally "the disease that takes the child crippled by rheumatoid arthritis, had been who feared that the report, if given wide after it leaves the mother's breast." It is a rescued from a mouldering shack where the publicity, would anger the white Establish disease of extreme protein deficiency, a star bedding stank of urine and feces. The other ment and perhaps wreck the chances of co vation often brought on by a mother's in was a.fllicted by Wernicke Syndrome, which operation on remedial projects. ability to breast-feed an infant. Dr. Gatch said was characterized by loss of Dr. Lease wrote to his collaborators sug Down a dirt road Dr. Gatch paused at the memory and confabulation (filling in a gesting that the distribution of data be re decaying stoop of a family named Kinnard. memory gap by falsifications that the pa stricted and that "none of the work coming Silent children with skinny legs sat listlessly tient a.ccepts as correct). from the University of South Carolina should on :floors and beds. Fifteen people lived in the be published or mentioned on radio or tele DIET OF RICE AND GRITS vision as the results of the university or any shack, Dr. Gatch said, and there was no Dr. Gatch said he believed Wernicke Syn privy. of its staff members." drome could have been induced by lack of Later, Dr. Lease apparently han a change COMFORTABLE WHILE STILL thiamine, which is essential for growth, nor of heart, for the material was released to the He went directly to a young woman who mal function of the nervous s:vstem and press in Columbia, S.C. was holding a crying, seven-month-old baby normal metabolism. Thiamine is found in There were other indications that the es girl. He had examined the baby before. he liver. lean meat, eggs, whole grain or en tablishment now wanted the situation ex said, and had detected symptoms of both riched cereal and cereal products. The old posed. On Jan. 31, to the astonishment and February 17, 1969 EXTENSIONS OF REMARKS 3591 gratification of·Dr. Gatch, Senator Ernest F. "We've got to pay $10 a week for these which, for one reason or another, were not Hollings, the former Governor, turned up in huts," she said. "Last week the water was participating. But Collier County was not Bluffton and made the hunger tour. up so high we had to wade to the door. I poor enough to qualify; the median annual FEDERAL DELAYS CHARGED never would've left Carolina, but they told family income, thanks to the wealthy Gulf us the rent was free." The Senator saw a near-starving baby, a Coast resorts, was $4,673 a year. Someone had skinned a possum in front "Ive seen hunger in Immokalee as bad as reputed pellagrin, a rachitic child and an of one of the shacks, then left the meat for ot her child said to be recovering .from scurvy. in Latin America," said Mr. Dow, a graduate the flies. The cadaver of another skinned of Yale and Columbia, "yet the Collier Deeply impressed, Senator Hollings said he animal floated in the slough. would der-_and an end to "Federal roadblocks County commissioners always say the prob and redtape," which, he said were frustrat A man who introduced himself as "Hobo lem doesn't exist, that the county always Bob" reeled out of the canteen and proudly looks after its own 'worthy poor'." ing local efforts to help the poor. produced an old photo that showed him The local state Senator, J ames M. Waddell, Observers noted that the rural admonition, also blamed the "Feds." He charged that the with a wine bottle in one hand and a pistol "root hog, or die," seemed to express the Office of Economic Opportunity had refused in the other, a cigarette dangling from his commission's attitude toward migrants. They lips creased in a grin. He said he was sending recalled that at a hearing last August Vice to fund a project that included privies for the the photo to a cousin in South Carolina, to poor. Chairman A. C. Hancock warned: "There are shown the relative what a happy life migrants those sitting with their hands out waiting "We can send a man to the moon," he cried could lead. on the floor of the South Carolina Senate, to be fed, and that's a situation we won't "That's Hobo Bob," he laughed, patting go for." "but we can't build an outhouse." the photo. Senator Holling;:; plans to testify next week Other officials expressed the fear that if before the Senate Select Committee on Nu Retrieving a cardboard box from his shack, migrants were given foOd they would not trition and Human Needs. Hobo Bob offered visitors some cold grits work. Others thought that free food would The committee, headed by Senator George mixed with beans and fatback. drive the corner grocery Into bankruptcy. McGovern, Democrat of South Dakota, and Smith's Camp is one of 60 or 70 accom Immokalee, which calls itself the "water dominated by liberals, had been planning modations for migrants around Immokalee. melon capital of America," is a flat, sprawl field trips to suspected areas of hunger in a Other camp·s seem less appalling in physical ing, dusty town where people of different dozen states. appearance but hold a greater potential for colors, black, brown, red and white, live in However last week the Senate Rules Com human degradation and misery because they strict residential segregation. Smith's Camp, mittee, dominated by conservatives, slashed swarm with children. out in the swamp, is all black, but there are the select committee's $250,000 budget re UNEMPLOYMENT HEAVY several other Negro camps inside the town. quest by $100,000. Senator Jacob K. Javits of Albert Lee, an energetic young Negro who These are in "The Quarters," an area that New York, minority leader of the select com heads the local antipoverty project, the Com contains not only the Negroes but "Utopian," mittee, said he intenC:ed to carry the fight munity Civic Workers, said it was a bad of concrete-block huts occupied by Mexi for the full appropriation to the Senate floor. season for migrants, with heavy unemploy can-Americans. Outside "The Quarters," But if the cut remains, the committee will ment. scattered around the rest of the town, are have to curtail its travel plans, visiting per Immokalee, a town of 3,000 near the north camps for white migrants. A few score haps only five or six states. ern edge of the Everglades, normally has a Seminole Indians live in grass huts on the It means that the committee members will midwinter population of 12,000 migrants, eastern edge of the community. not see Beaufort County. he said, but now there were only about 10,- RENT OF $10 TO $20 A WEEK They still plan to visit the camps of mi 000. Many who normally wintered in Im grant farm workers, like those in Immoka mokalee had gone to Texas instead. Most of the camps are clusters of wooden lee, Fla., where life seems even more degrad Immokalee is in Collier County. Many shanties, concrete huts, trailers. Rents range ing than in the shacks of Beaufort County. well-to-do retired people live in Naples, the from $10 to $20 a week, plus ut111ties. Flush county's biggest community, and this ele toilets are a rarity, most camps providing a HUNGER IN AMERICA: POVERTY LEAVES ment, plus the big farm owners, have in communal latrine. Regardless of the color of MIGRANTS PREY TO DISEASE-II sured a highly conservative county govern the occupants, the camps appear universally (By Homer Bigart) ment. mean and squalid. IMMOKALEE, FLA.-Ten Iniles southwest of The county has a long history of snub Mrs. Angela Spencer, 38, and two small pal here, strung out like garbage along the edge bing Federal aid, even during the Depression lid children occupied a trailer in one of the of a cypress swamp, is Smith's Camp, a era, and in recent years the county com white camps. gathering place for some of the migrant farm missioners have stoutly rejected the food "I was lucky enough to get three days work workers who flock here in winter to pick the distribution programs of the Department of this week," she said. vegetable crops. Agriculture. She said she had been averaging two and It consists of a dozen or more windowless Today Collier County offers neither direct one-half days of work a week, earning $25, plywood shacks, all without toilets or running food distribution nor the food stamp pro out of which she had to pay a baby sitter $3. water, all painted a dull green and all facing gram. MigTants who run out of money here The rent was $15. That left $7 for food and a dark slough choked with bottles and trash. are out of luck. all other expenses. She owed $19 in back rent, Some distance away there are three smaller How do they keep alive Mr. Lee was asked. she said, and $100 in doctor's bills. shacks, two of them privies, the third a cold He said he had received on Christmas Eve There was a piatter of green beans and water shower. None shows signs of recent use. $500 from the Office of Economic Oppor hominy on the stove. Clouds of flies wheeled Few migrants are hardy enough to take cold tunity. The instructions were that the about. The refrigerator was empty except for showers out of doors in the dead of winter, money could be distributed only for emer three sticks of margarine, a partly empty bot even in Florida, and the latrines are un gency food. tle of milk and a box of powdered milk. speakably filthy, seats and floors smeared PINCHING AND PINCHING She had been helped from Albert Lee's with dried defecation. So the people use the meager allotment of cash, as had Mrs. Car woods. "Now I've got a few dollars left," he said, oline Conner, an attractive blonde who lived A spigot planted in the ground provides "but I've been pinching and pinching and in another white camp and was 10 days out water for the shacks. But the 20 or 30 pinching." of the hospital after delivering a baby girl. migrants who live here say the water is foul He explained how he made the money last. Her husband had abandoned her. smelling and foul tasting. The only appar He was doling out $1 a day per person to the "We were real desperate," Mrs. Conner said ent amenity is the naked electric light bulb most desperately hungry, then cutting them of herself and the baby. "If it weren't for hanging from the ceiling of each shack. off after 14 days. my friends, I wouldn't have been able to Such a place is Smith's Camp, its condition "That's it," he said. "A.fter 14 days if they make it." of poverty far removed from the show atnu can't get handouts from the neighbors they LIKES MICHIGAN BEST ence of nearby Gulf Coast resorts and its don't eat. Two young lawyers from the O.E.O.-fi Mrs. Conner said she had been migrating people, during frequent periods of unem from Florida to the Great Lakes and back for ployment, vulnerable targets for hunger and nanced South Florida Migrant Legal Services Program, T. Michael Foster and William F. the last four years, following the spring disease. A Senate committee investigating strawberry crop to northern Florida, then hunger will be in the area March 10. Dow 3d, said that their organization had been trying for years to get Federal food sent Arkansas, Illinois and Michigan; picking GATHERED IN CANTEEN into Collier County. Michigan's blueberries, peaches and grapes during late summer and early fall, then going On a recent Saturday, a visitor found most Last summer Mr. Foster wrote to the then of the camp's adult population assembled in back to Immokalee for winter tomatoes, pep Secretary of Agriculture, Orville L. Freeman, pers and "cukes," or cucumbers. the canteen. The migrants had just been telling of hunger and malnutrition in the paid, apparently, and several men and labor camps, reporting the refusal of Collier She liked Michigan best, she said, because women were finding release from the sur County to participate, like most Florida migrants got free quarters there. In Immo rounding squalor by getting themselves counties, in making food surpluses available kalee her rent was $20 a week, and she had bOddenly drunk. to the poor, and pleading for lntervention. just about run out of the money she had re One woman, still sober enough to talk, said ceived from Albert Lee. that in good times she made as much as $60 ATTITUDE OF COUNTY AIDES "Whether she feels well or not, she's gotta for six days work in the fields, picking beans Washington did nothing. Congress had go to work," Mr. Lee said. and peppers, but now work was slack because authorized the O.E.O. to take over the dis "I got to do something," Mrs. Conner cold weather had retarded the crops. tribution of food in the poorest counties, agreed. 3592 EXTENSIONS OF REMARKS February 17, 1969 Down in The Quarters, an elderly black CRIME IN THE 13TH CONGRES During these 8 months, our district was named James Kelley and his yellow dog, SIONAL DISTRICT, BROOKLYN, victimized by 5,078 burglaries, 4,993 lar Lady, found a way to beat the rent. A toler• N.Y. cenies of $50 and over, and by 3,937 ant crew leader had let them take over an motor vehicle thefts. The cwnulative old abandoned bus. Mr. Kelley, a diabetic whose fingers were total of crimes in the district shows that gnarled and disfigured, was wearing two HON. BERTRAM L. PODELL our people are exposed to more than 60 pairs of pants against the cold. An unvented OF NEW YORK major crimes every day. oll heater had been installed near the front IN THE HOUSE OF REPRESENTATIVES The Crime Index trend for August and of the bus, and he had to keep a window for the first 8 months of 1968 shows: open to avoid suffocation from the fumes. Monday, February 17, 1969 He and Lady slept on piles of rags near the 1st 8 rear, where there was a little cookstove. The Mr. PODELL. Mr. Speaker, during the August months only food visible was a pan of fatback and first 8 months of 1968 the people in the 1968 1968 some pieces of fish heavily salted for preser 13th Congressional District, Brooklyn, vation. Mr. Kelley said he had not worked in were the victims of a total of 15,213 Crimes against the person: Murder and nonnegligent man- eight months, but he seemed happy. He had major crimes in the categories used by slaughter ______just received $7 from Mr. Lee. 1 15 the FBI Crime Index. Forcible rape ____ ------______10 32 TEN CHILDREN IN HUT Robbery ______---- ____ ------_ 56 504 The following table sets forth the Assault______------______._ 101 654 In a black camp near Mr. Kelley's bus, monthly incidence of crime in this dis Mrs. Pauline Milton and 10 children were Total, crimes against the person __ 168 1, 205 crammed into a two-bedroom-and-kitchen trict: Crimes against property: hut. January ------ 1,775 Burglary ______596 5, 078 "Me and two of the little ones sleep in this February ------1,630 Larceny, $50 and over ______744 4, 993 bed,'' said Mrs. Milton, "and there are two March ------ 1,797 Motor vehicle thefts ______477 3, 937 beds in the other room and one in the 1,901 April ------ Total, crimes against property ____ 1, 817 14, 008 kitchen for the rest." May ------ 1,960 She had worked two days that week, earn June ------2,115 ing $11.05 each day, and paying $2 a day for The following tables show the crim July ------ 2,050 baby sitters. August ------1,985 inal statistics for the 13th Congressional "I couldn't afford to give them breakfast," District for August and for the first 8 she said, surveying the hungry brood, "but Total ------15,213 months of 1968: we had boiled beans, rice and potatoes for lunch, and I'll give them the same for AUGUST 1968 STATISTICS supper." Mrs. Milton is one of the comparatively Murder, few migrants eligible for county welfare, for non- she has lived in Immokalee for seven years. negligent Larceny, Motor She said she had applied, but had been told man- Forcible $50 and vehicle that her application would take 30 to 45 days Precinct slaughter rape Robbery Assault Burglary over thefts Total to process. 60 ______Of all the ethnic groups, the Mexican 1 18 42 131 118 53 363 Americans probably suffered most during 61 _____ ------2 9 12 138 290 194 646 times of hunger, Mr. Dow said, as he drove 66 ____ ------1 4 24 113 83 54 279 67------3 12 11 97 112 50 285 past "Utopian Homes." Some of the Mexicans 70 ______3 13 12 117 141 226 412 had tried to alleviate the bleakness by plant ing flowers around the huts. Tota'-- --·---- 10 56 101 596 744 477 1, 985 "Mexicans are proud," Mr. Dow explained, "and feel they are violating cultural mores if CUMULATIVE STATISTICS, JANUARY TO AUGUST 1968 they ask for help." Mr. Foster said that the Florida State Board of Health had denied the existence of Murder, non widespread malnutrition in Collier County. negligent Larceny, Motor PARASITIC INFECTION CITED man Forcible $50 and vehicle Precinct slaughter rape Robbery Assault Burglary over thefts Total "People are hungry, no one can quibble about that," he insisted. "And there is a tremendously high incidence of parasitic 60 ______------12 146 317 1, 020 802 455 2, 757 6L ______------5 99 102 1, 319 1, 798 1, 523 4, 850 infection." 66 _____ ------3 60 79 797 593 598 2,134 Last March the state health board issued 67 ------4 101 81 795 764 501 2,246 98 a report saying that a team of doctors had 70 ______------8 75 1,147 1,036 860 3,226 "closely observed" some migrant children at TotaL ______15 32 504 654 5,078 4,993 3, 937 15,213 play or in schools and clinics and that "none had gross signs of malnutrition." The report said that pellagra, a severe die CONSUMER AFFAIRS SUBCOMMIT most important issues to face the Amer tary deficiency disease, had been noted but TEE TO OPEN HEARINGS ON UNI ican consumer in 1969. Through this only in "known chronic alcoholics." FORM CONSUMER CODE uniform code, attempts are being made In riposte, friends of the migrants released to wipe out the hard-earned advances next day the results of clinical examinations made for the consumer in the Consumer of 23 migrant farm children of Immokalee by HON. WRIGHT PATMAN Credit Protection Act-truth-in-lending. the Variety Children's Hospital of Miami. OF TEXAS Among other things, this code, which The sampling uncovered 38 clinical dis IN THE HOUSE OF REPRESENTATIVES eases in the 23 children, ranging from is being pushed in 48 of the 50 State leg pneumonia to worms. Monday, February 17, 1969 islatures this year, would raise interest The hospital's executive director, Gerald rates on small loans and installment W. Frawley, described the findings as "rather Mr. PATMAN. Mr. Speaker, tomor purchases to 36 percent. At the same incredible ... a most extraordinary morbidity row-February 18-the Consumer Af time it would allow interest charges of rate" and concluded: "The migrant popula fairs Subcommittee of the House Bank 24 percent on revolving credit, which is tion must be about the most underprivileged ing and Currency Committee opens most commonly used by the large de in the nation, at least in terms of medical hearings on the so-called Uniform Con attention." sumer Credit Code and its effect on the partment stores. In a few weeks Collier County will feel the Federal Consumer Credit Protection Act Mr. Speaker, consumer groups all over spotlight of national publicity. The Senate passed in the last Congress. the Nation are opposing this Uniform Select Committee on Nutrition and Human Consumer Credit Code. I place in the Needs is making this county its first stop on These hearings have been called by our distinguished colleague from Mis RECORD a news release recently issued by a tour of suspected hunger areas. the Consumer Federation of America, The committee is seeking information on souri, Mrs. LEONOR K. SULLIVAN, as the failure of the Federal food programs to chairman of the subcommittee. detailing that organization's opposition reach millions of poor Americans. Mr. Speaker, this wlll be one of the to the code: February 17, 1969 EXTENSIONS OF REMARKS 3593 CONSUMER FEDERATION OF AMERICA which carefully meets all the Federal dis on to acid, and so forth. It includes the WASHINGTON D.O.-In messages to gover closure standards, while at the same time setting outrageously high interest rates, and statement: nors and legislative leaders in all 50 states, It's their life and their chcice. Consumex: Federation of America today de worse, removing a host of restrictions and clared its "unalterable" opposition to the responsib1llties now imposed on the finance Here again, as with the nonnegotiable Uni!orm Consumer Credit Code. industry by law. The Code, in the guise of demands of the student demonstrators at The national Board of OFA voted its un protecting the public from disreputable prac San Francisco State and elsewhere, is a qualified opposition last Friday night (Jan tices, is couched in language so obtuse, so uary 31). Their resolution, a speech of Judge unreadable, as to tax the skill of the keenest baldfaced untruth if society itself is George Brunn of the Berkeley (Calif.) munic lawyer. established pro bono publico. The use of ipal court, and documents prepared for CFA Some of the language in the proposed Cali LSD or the equivalent is not a matter of by a special task force of lawyers were for fornia Code, and like it the codes in the ma personal free choice. It is against the warded to state leaders today. Previously, jority of the states, was unraveled into lay law. It is even against the law to have it CFA members only urged delay until con men's terms by Judge George Brunn of in possession much less manufacture it. sumers could study the Code's impact on Berkeley in an address before the Consumer The use of LSD makes a person danger consumers. Assembly here last month: CFA is a federation of 136 consumer Under present law, Judge Brunn said, small ous to himself and dangerous to society oriented organizations in 37 states and the loan companies are scrupulously regulated both in the use and in the risk of reac District of Columbia. Robert J. McEwen, S.J., and subject to suspension or revocation of tivation at the most unpredictable times is CFA president and a member of the Presi their licenses for infractions of the law. The in the future, to say nothing of probable dent's Consumer Advisory Council. Code, however, says that such action can be brain damage and certain genetic defects Judge Brunn spoke at Consumer Assem taken only after "repeated and willful that can be transmitted to the as yet un bly '69 here last week with members of violations." born or unconceived. CFA's legal task force, chaired by Benny "Present law forbids the taking of realty Kass, serving as a resource panel. CFA at as security," Judge Brunn pointed out, but No society that calls itself civilized can torneys who analyzed the Code are Edward the Code allows it in loans over $1000. The afford to give to its citizens the individual Berlin and Anthony Rolsman of the firm m eaning of this, of course, is that failure to right of choice as to the use of such sub of Berlin, Rosiman, and Kessler in Wash repay a loan can result in the loss of one's stances. There is not nor should there ington. home, an occurrence not uncommon to fam be any such freedom of choice except in ilies in urban ghettos. the sense that if an individual wishes to THE NATIONAL BOARD OF CONSU MER FEDERA A partial list of other "protections" to the commit suicide and can find the means TION OF AMERICA RESOLUTION, JANUARY 31, consumer reads as follows: Present law forbids charges in addition to he has his decision. 1969 Those adults who are party to this con The Consumer Federation of America interest other than official fees and insurance. Board is unalterably opposed to the Uniform The Code would allow a host of other charges, tinued line of garbage with our young Consumer Credit Code. We believe that the including delinquency charges, deferral ought to be removed from any connec credit industry has used the formulation of charges, and a vaguely worded loophole al tion with the educational processes. This a Uniform Consumer Credit Code to under lowing "charges for other benefits . . . con is a mission for local school boards across mine the Federal Truth-In-Lending bill. ferred on the debtor." America. If I ever saw a cause that ought Consumer fought for eight years to get a The present law provides for bonding; the to become a crash program, this is it. meaningful Truth-in-Lending bill through Code does not. The Union-Leader editorial follows: Congress. We do not intend to see the bene Unlike present law, the Code does not pro fits of Truth-in-Lending taken away by a hibit the loan company from transacting MARIHUANA BACKED AT MONADNOCK state-by-state enactment of an anti-consum business under a different name. Parents are not specifically accountable to mer Uniform Consumer Credit Code. Unlike present law, there i:> no require the public for the quality of instruction The Board instructs the Executive Direc ment to give the borrower a receipt for each they give their children. tor and the officers to give all possible assist payment. However, the citizens of New Hampshire ance to the constituent state bodies in op Unlike present law, there is no prohibition do have some say about the kind of guidance posing the Code. against the use of incomplete instruments the young receive from the public servants (blank contracts filled in after they are (teachers) who take over this responsibility Mr. Speaker, I also place in the RECORD signed). during most of the waking hours, 180 days a copy of an editorial which appeared in And so on and so forth. The catalogue of a year. We wonder, sometimes, if the public the February 10 issue of the Washington horrors is equally as long and as disreputable is getting the wise supervision it is paying Post, entitled: "A Code To Legalize for credit sales. The worst feature of this for. Usury": sleazy attempt to subvert laws, of course, is Take, for example, the "Copper Moth," a that it wlll be the poor, upon whom the high school publication of the Monadnock A CODE To LEGALIZE USURY financiers can most easily prey, who will regional school. The teacher supervisor is Sometime before July, 48 of the 50 state suffer the consequences. listed as a Mrs. Sherman. legislatures will consider bills devised to This is an issue, therefore, which goes to Literary wing-stretching is a good thing. write into law maximum interest rates of the very heart of the cycle of poverty gripping No doubt about it. A certain amount of lati as much as 36 per cent for small loans and inner city ghettos throughout the Nation, and tude is obviously indicated, else the teacher installment purchases and as high as 24 per the reaction of the states and the Congress will find herself writing the whole thing. cent for revolving charge accounts. The pro to it will surely indicate whether those in Yet, there are, or ought to be, boundaries. posals are the object of heavy lobbying by authority intend to attack the problems of What appears in print, therefore, is not only bankers and small loan companies. But they the cities with something other than rhetoric. youthful expression but also a reflection of are also beginning to raise eyebrows on Capi Consumer protection laws are, if anything, the taste and good judgment of the "ad tol Hill. Most recently, Rep. Wright Patman in need of strengthening. If the Code pro visor." denounced them on the floor of the House posed by the financiers is adopted in any of It was on this last count that we were as proposals to "legalize usury" and warned the states, however, the poor, and with them particularly interested in an unsigned edi that if adopted they will codify "some of the interests of the public, will have suffered torial printed in the "Moth." It starts out the highest interest rates ever imposed on a major defeat. rather importantly: "There is a growing the American consumer." phobia in this area about the use of mari Mr. Patman is dead right. For what the huana. Most people feel that it is a danger financiers have done is to move quietly but ous, habit-forming drug that can only lead effectively to subvert not only the int ent of IT'S NOT JUST THEffi LIFE to worse things. For this reason, I chose to the truth-in-lending act passed last year by defend the drug." Congress, but to undermine many of the OTHERS ARE INVOLVED In a later paragraph we read: "As far as consumer protection statutes already on the marihuana leading to something else is con books in most of the states. To do this, they cerned, it's all up to the individual. If he have devised a neat legal gimmick called the HON. LOUIS C. WYMAN wants to go on to acid, S.T.P., or heroine, Uniform Credit Code, which uses to their OF NEW HAMPSHIRE it's up to him; marihuana will not form the own advantage provisions in the truth-in IN THE HOUSE OF REPRESENTATIVES stepping stone. Most kids I speak to are con lending act itself. tent with grass and are afraid of anything Their gimmick is this: the new Federal Monday, February 17, 1969 stronger . . . But it's their life and their law allows state law to supersede it in cases Mr. WYMAN. Mr. Speaker, a student choice." where the state law is at least as strong on publication in a New Hampshire school, It's possible that the fledging author truth in lending as the Federal act. The Fed doesn't know that police records show most eral law requires, among other things, that as reported editorially in the Manchester, hard narcotics addicts do start with mari lenders and creditors disclose interest rates N.H., Union-Leader on Wednesday, Feb huana. He may not know, also, that a grow on credit. It does not, however, set ceilings ruary 12, 1969, contends that the use of ing body of evidence points to the use of on those rates. The monied interests have marihuana is up to the individual, as is marihuana, hashish (a refined form of mari drafted language in their Code, therefore, the question of whether he wants to go huana, barbiturates and narcotics among 3594 EXTENSIONS OF REMARKS February 17, 1969 teenagers as an important cause o! youthful these days when skepticism and even agnos events of the past year in Czechoslovakia vandalism and violence. In a town in Cali ticism seems to be on the upturn, over hal! demonstrate that the Russians are still fornia, sixth graders were so hooked they of all the letters that have come into our blind to the fundamental rights of men, were arranging robberies in each other's om.ce have indicated that people of all faiths homes to get money !or the stutr. and of all nations in a very simple way are and will not hesitate to employ authori It's possible the writer didn't know these saying: tarian repression whenever the spirit of things but Mrs. Sherman ought to have "'We are praying for you Mr. President. We freedom stirs. known it. are praying for this country. We are praying The Soviet Union continues its illegal To go on with the student editor's com for the leadership that this nation may be occupation of the Lithuanian nation in ments: Adults drink, he said, "because lt able to provide for this world.' direct violation of existing treaties and gives them a good feeling. Grass is much the "As I read those letters, I realized how same, only it's much more defined. A tre great was my responsiblllty and how great international law, and against the free mendous feeling of detachment. like you're was your responsibility, those who share with will of the people. They have not been not really there; after you say something, me these days in government. I realize that content to stop with this, but have en you wonder it you really said it. Is this bad? .. people whom we will never meet have this gaged in an intensive program of russifi Evidently teacher Sherman didn't think it deep religious faith which has run through cation designed to destroy the rich and was "bad" enough to supervise out of the the destiny of this land from the begin centuries-old culture of the Lithuanian script--or, that since what was being de ning.... people. fended with curious enthusiasm is actually "I am proud to stand here today in the The free world must not rest until the against federal law, the whole piece had no presence of those who, by your being here, place in a student publication. indicate that you have not lost faith in this Soviets withdraw their army, police. and We doubt that even a raise in teachers nation. You have not lost faith in the reli ruling apparatus from Lithuania, so the salaries would improve this kind of supervi gious background that has sustained us. people of Lithuania may freelY elect a sion and Judgment. "As a matter of fact, we are entering a government of their own choosing. period when, sustained by that faith, we will On this historic occasion, the most fit be able to meet the challenge which is ours- ting commemoration we can offer to the a challenge which comes to very few people in brave citizens of Lithuania, the heroes OFFICIAL PRAYERS THRILLING the history of man. It is America's now. Whether we succeed or we fail will depend or who have died in quest of Lithuanian OCCASION determine whether peace and freedom sur liberty, and the countless relatives and vive on this world. friends of Lithuania in the United States, HON. ALBERT H. QUIE "We will meet the challenge . . . because is the reaffirmation that the cause of we will be sustained and inspired by the Lithuanian freedom has not been for OF MINNESOTA prayers of millions of people across this gotten and the struggle for it will con IN THE HOUSE OF REPRESENTATIVES world." tinue until won. Monday, February 17, 1969 Vice President Agnew read a passage from the Bible. There were greetings from the Sen Mr. QUIE. Mr. Speaker, the presi ate prayer breakfast group by Sen. John dential and congressional prayer break Stennis of Mississippi, and from the House fasts this year were very inspirational prayer breakfast group by Rep. Graham Pur THE YOUTH REVOLUTION and set the proper tone for the coming cell of Texas, as well as prayers by Sen. Ed A POSITIVE RESPONSE mund Muskie of Maine and Sen. Mark Hat year. They continued the practice set 1n field of Oregon. President Nixon's Inauguration with its Dr. Billy Graham, the evangelist, delivered HON. WILLIAM H. AYRES emphasis on prayer for guidance in lead a special message in which he emphasized OF OHIO ing the Nation through these very diffi that, while there is a tendency to be pessl cult days. mistic about the future, America has dealt IN THE HOUSE OF REPRESENTATIVES David Lawrence wrote a column con with difficult times before. He said: Monday, February 17, 1969 "I think it is time that we take our eyes taining some of the pertinent statements Mr. AYRES. Mr. Speaker, I know that from these two services which appeared off our shortcomings, and off our failures and off our selves, and put them on the Christ every Member of the U.S. Congress' in the Washington Evening Star on Jan who said, 'You must be born again.' " greatest concern is with the future wel uary 31, 1969. I i;.1sert it in the REcoRD at Dr. Graham called for a new birth of fare of our youth. Never in the history this point: spirit, a new birth of the heart, and a reli of any nation has there been a greater OFFICIAL PRAYERS THRILLING OCCASION gious awakening throughout America. effort made to improve the education and (By David Lawrence) It was a thrilling occasion. Not only were portions of the event televised in this coun training of young people. For more than two hours yesterday morn try, but it was broadcast overseas to the The House Education and Labor Com ing, most of the persons who head up the Armed Forces of the United States in Viet mittee, of which I am privileged to be government of the United States engaged in nam and elswhere. This emphasis on prayer the ranking Republican member has sat prayer. First there was a congressional is characteristic of the feeling of dedication in practically continuous session to bring prayer breakfast, at which members of both that prevails in government nowadays, as the houses and their friends from different an ever-improving educational system. challenges of the era confront members of The Federal participation in funds for parts of the country were present. Then both parties with a responsibility of unprec came the annual presidential prayer break edented proportions. this laudatory purpose has increased fast, attended by the Cabinet and members manifold in the last few years. Even this of Congress as well as the governors of sev early in the session, Chairman PERKINS eral states. has been calling a great number of school President and Mrs. Nixon and Vice Presi dent and Mrs. Agnew were guests at both LITHUANIAN INDEPENDENCE superintendents before us so that we gatherings. Altogether, nearly 2,000 men might learn the results of this legisla and women attended the two functions. U tion and seek improving amendments. was the largest number to participate in an HON. WILLIAM L. ST. ONGE Despite our dedication to an all-out annual presidential prayer breakfast, which OF CONNECTICUT effort to make our education an avenue now have been held for 17 years. IN THE HOUSE OF REPRESENTATIVES by which our youth might have a total Nixon, in his talk, said that recently he chance of equality of opportunity, we had studied the Inaugural Addresses of all Monday, February 17, 1969 preceding presidents, and he pointed out have strife and riotous discord in many that one theme was common to every one of Mr. ST. ONGE. Mr. Speaker, Febru of our schools. them. Each President, he declared, "recog ary 16 marked the 51st anniversary of While it is undoubtedly true that some nized the spiritual heritage of this nation the declaration of independence of Lith of this is caused by those enemies of our and asked for the blessing of God on this uania. It is with sadness that we observe Nation who are working on the principle country-in not only its affairs at home, but this occasion while the valiant people that "a house divided must fall," I do its affairs abroad." of the Lithuanian nation are still op believe that much of it has been effected Nixon said he also found one theme run pressed by the yoke of Russian imperio by a lack of communication. Some peo ning through the majority of the letters he colonialism. had been able to read among the thousands ple have seen the term "generation gap" which have come to the White House from all It is hoped that the Soviet Union will so often that both our young people and over the country since Inauguration day. come to realize that no nation can be those of our generation have come to He commented: denied its sovereignty, and no people will accept it. "In these days in which religion is not sup long tolerate the rejection of their right I believe that we must challenge the posed to be fashionable in many quarters, 1i1 to self-determination. However, the charge of this so-called "generation gap" February 17, 1969 EXTENSIONS OF REMARKS 3595 and open up the channels of communica There is of course a great deal of familial makes sense and is good. I found this to be tions between us. We must know their strife in the Family of Man. One of the even more true than I had thought. strengths of this Society is a healthy sense At the same time I do not ignore the dis viewpoints and they must understand of realism in its concern for complex human turbing elements of the youth revolution. our views and purposes. I am confident problems. There 1s recognition that merely There are the far-left extremists who say that if this rapport should be established uttering lofty ideals is not enough; one must that present society must be destroyed. Their that we would gradually see an end to confront the problems directly. challenge must be met. There are the truly the dominance of those who would teach In this spirit, I would like to explore with alienated, the loners and drop-outs. They violence as the only method of change. you a problem that has special relevance to must be helped. There is the use of danger Today there are over 7 million college the concept of the Family of Man. For lack ous drugs. This must be stopped. Too of of a better term, it has been called the youth ten, while fighting for their beliefs, young students. In some schools, a minute revolution. For some months past, I have people disregard the basic human values and group, by raising their strident voices been embarked on the adventure of trying rights which they are espousing. They fre to a great volume, has led us to believe to understand the world of the young. My quently lack compassion. They are often con that they are the voice of all youth. In trip was not fueled by LSD, but it had its temptuous of those who do not fully agree many cases, they have disenfranchised psychedelic moments. I even attended a per with them. While crying out to be heard, the great majority of the student body formance of "Hair"-and I enjoyed it, espe they wlll shout down a speaker. and damaged the reputation of their uni cially the music. In my encounters with Yes, there is much to irritate and dis student activists, I found that I have a turb the older generation. But I submit that versities to the extent that industry has chronological problem, being somewhat past we have let ourselves be distracted by the lost confidence in its graduates. the age of 30. And for some reason, they also colorful fringes to the point where we miss I am of the belief that a presidential tend to see me as a member of the Establish the central meaning of today's youthful pro youth agency could best solve this prob ment. test. I am convinced that not only is there lem. It should have a dual function to Although I am sure the students went tremendous vitality here, but there is also bring to us the suggested programs of away thinking of me as more square than great potential for good if we can only un the constructive-thinking students and groovy, I did feel that we communicated well. derstand and respond positively. I believe keeping them informed of the strides When you are really interested in them, this becomes evident if we examine how the young people will not only talk-they will youth revolution is manifested in three of that we are making to assist them. also listen. Similarly, I met with a number the basic institutions of our society. I do know that President Nixon has a of older persons and found the discussions There is, first of all, the legal framework great concern for our youth. When he with them equally productive. of society and its attendant issues of vio was a Member of this body, he devoted a When I started on my trip, I assumed that lence, social protest, justice, and respect for great share of his energies to service on I would end up by directing my remarks to the law. A major factor distinguishing the the Education and Labor Committee. the young. And I worried about this because current revolt from the past is the skill of During the past campaign, he created I did not want to seem paternalistic or to young people in the tactics of social pro preach. I need not have worried because I test. They act in ways that would have been a student coalition. At that time, he said: quickly came to the conclusion that my hard to imagine for the rebels of my genera The next President of the United States thoughts on this subject would be best ad tion. They have learned well from the civil must create new machinery, new ways for dressed to that large minority group of per rights movement of the 1950s and the Viet these young people to participate in the sons over the age of 40, my fellow members nam protest of the 1960s. major questions of the day. I believe that of the older generation. Yet, for the most part young people at my Student Coalition could be helpful in Today's youth revolution puzzles many of tempt to work within normal channels to this area. us. We wonder if it is really new and dis present their grievances and establish a di Many times during that campaign and tinctively different. After all, there is nothing alogue. They have tried to work through the new about youthful idealism and youthful political system, with their support of Sen since taking office, President Nixon has protest. Every generation has had its gap. ator McCarthy as the best example. It is they mentioned the attention that his admin But it seems to me unmistakably clear that who have made the Peace Corps, VISTA and istration will pay to the "legitimate de we are experiencing something much more the Teachers Corps more than slogans. Many mands of the young people of America." than the age-old rebelliousness of youth. The young people are preparing for long-term ef There are few people who have devoted ferment of today is deep and intense. Al forts to change society. For example, the law more of their time and energies to this though the activists are a minority of young students of today are concerned less about people, it is a larger and more vocal minority trusts and estates and corporate law and problem than John D. Rockefeller 3d. than ever before. The youth revolt is a world more about how just the laws are, how poor Mter graduating from college, he began wide phenomenon, occurring not only in the people and black people can get a better working for an agency for homeless boys. United States, but in a dozen other countries break before the law. Later he served as chairman of a com such as France, Mexico, Japan and IJzecho But even as the majority of young people mittee devoted to salvaging juvenile de slovakia. There is a tenacity that was lacking work constructively for change, it remains a linquents. In recent years, he has spent in the past. Young people do not seem to be fact that severe provocation and even vio much time in communication with our merely getting something out of their sys lence have increased as forms of social youth and is proof that the generation tems. Perhaps it is too early to tell, but I do protest. The protestors are fired by their sense not believe they will slip easily into the com of moral righteousness. They feel they have gap can be closed. I know that we could forts of suburbia and the career, leaving be learned from experience that it is necessary count on his valuable assistance in the hind their idealism and impulse for change. to be loud and demonstrative to get results. establishment of a presidential youth How do we explain this pl>enomenon as It is this behavior that compels attention and agency. it is occurring in the United States? There strikes fear for the very stability of American Recently Mr. Rockefeller, while accept are many theories and no entirely satisfac society. tory answers. The young people of today The nature of our response is crucial, for ing the annual award of the Society of it has everything to do with whether there Man, made a very comprehensive speech were born after the depression and under a nuclear shadow. In an age of atnuence and will continue to be violence and whether vio about his findings on the subject. He only potential Armageddon, they are less con lence will pay. did this after months of preparation, cerned about material security and more We must understand that social protest has traveling to various areas, and discussion concerned about basic human values. They an honorable history and has a rightful place with our young people. feel that time is running out on the great in any enlightened society. We have only to These statements later appeared in the problems-war, racial injustice, poverty. remember that it was social protest that Saturday Review-a copy of which fol They dislike the impersonalism of large or brought this nation into being. ganizations and of rapid technological At the same time we must recognize that lows. I believe that my colleagues will respect for law and the maintenance of order derive a new knowledge of the subject change. Because of the influence of the mass media and the freedoms of our society young are essential for the protection of everyone from the words of this great public in our society. Young people-anyone-who service dedicated American. The material people today learn faster and mature earlier. break the law as a form of protest must be follows: They become quickly aware-and deeply re prepared to pay the penalty and hope for sentful-of the dlft'erences between what ultimate vindication. THE YOUTHFUL REVOLUTION: A POSITIVE older people say and what they do. But if we stop here we will have failed. The RESPONSE In short, the very accomplishments of our concept of law and order is meaningless with (By John D. Rockefeller 3d) generation-in technology, communications, out justice. We must be ready to re-examine I am very much aware of the purposes and atnuence-have served to focus the atten our assumptions-and our laws. To do so, ideals of the Society for the Family of Man. tion of the young on what we have failed to we must open channels of communication. And I am also very much aware of the most accomplish. We must have dialogue. If we do not-if distinguished persons who have received I want to confess frankly that when I we think the only answer is to suppress dis your award in the past. For these reasons, I started my inquiry, I was biased. My instincts sent-then the responsibility for violence am deeply and humbly grateful for this told me that very much of what young peo hangs as heavily on us as it does on those honor. ple are doing and saying today basically who protest. 3596 EXTENSIONS OF REMARKS February 17, 1969. Many persons feel today that another o! By and large, we are much more conserva lems of our cities, of our environment, of our fundamental institutions-the family tive as elders of the church than we are as racial injustice, of irrelevant and outmoded is in trouble. Much has been written and said parents. The minister who would remain a teachings, of overpopulation, of poverty, of about the permissive nature of the American minister all too often must please a conserva war. family, which allegedly is responsible for tive laity, those who support the church fi To achieve such action we of the older gen many of the ills of today's youth. Yet criti nancially. The result is that the church loses eration must re-examine our attitudes, our cism of American parents' "overpermissive some of the finest members of the younger a...c:sumptions and our goals. We must take as ness" has been part of our society since the generation. seriously as do the young the great Judeo 17th century Puritans. In his penetrating If we have made this situation, we can also Christlan values of our heritage. We must be study of our country early in the 19th cen change it. Any dramatic reversal seems im as dedicated as they in fighting injustices tury, De Tocqueville comments about the probable. But the young people will come and improving our laws. We must have a domination of youth b.Ild their lack of respect back gradually if the church becomes a place sense of responsibility individually and col for their elders. Even the authoritarian Vic for searching inquiry, for social action, if lectively for resolving the massive problems torian age was beset with youthful rebellion. more of the clergy become involved in today's of our society. The family provides a framework and a set problems and if the laity support them-and And secondly, we must revitalize our ex of guidelines for a child's growth and de become involved too. isting institutions whether they be in edu velopment toward adulthood. It is the par There are common threads that run cation, government, religion, business or poli ents' responsibility to give the child love, through all of these basic institutions of our tics. They must be made more relevant to freely and warmly shared, and discipline, society. The problem is not in our legal sys today's problems, have a greater sense of fairly but firmly administered, which in turn tem, or the family, or the church. The prob mission. At the same time, in support of means time, attention and interest devoted lem lies in ourselves as people. The crucial the initiative of the young, new programs to the child. In this way, family life plays a issue is not the revolt of youth but the na and institutions must be developed which major role in determining the stability of the ture of our response to it. can be effective in areas of pressing social child, and the depth and solidarity of his Broadly speaking, it seems to me that there need. Fresh approaches to meeting today's values. are three possible responses. One is backlash problems are essential. I cannot stress too strongly my belief that and suppression. We caught frightening A unique opportunity is before us to bring children learn much more from what their glimpses of what this would be like in Chi together our age and experience and money parents do than from what they say. Many cago and Mexico City. If we choose this route, and organization with the energy and ideal young people state that while their parents the only victors will be the small fringe of ism and social consciousness of the young. talk about love, integrity, freedom, and fair extremists who want to see our society de Working together, almost anything is possi play, their actions are heavily oriented to stroyed. They are playing one of the oldest o! ble. ward ma.terialistic security, comfort and political games, that of the provocateur. If we follow this course each of us will be status. They repeatedly point out that they They want a backlash because they know involved personally and positively in the great are not rejecting their parents themselves, that repression starts a vicious circle that in drama of our times rather than feeling our but rather what they see as the hypocrisy of evitably leads to greater and greater explo selves to be weary and impotent victims of their parents' double-standard approach to sions. If we are foolish enough to fall into imponderable forces. The antidote to despair important social values. this trap, then we will deserve what happens is to be involved, to be imbued with the same Again, it seems to me that the nature of to us. spirit that fires the imagination and the ef our response is crucial. If I am right that the A much more likely response is apathy or forts of the young. There is a VISTA slogan ferment o! youth is potentially of enormous muted hostility. We are resentful over the which captures this spirit: "If you're not benefit to society, then we might ask: Would ingratitude and brashness of the young. We part of the solution, you're part of the we really rather have apathetic and obedient think if we cover our eyes and stop our ears problem." copies of ourselves? More importantly, we their noise and fervor will go away. They might take the criticisms of young people don't understand how really complex every serlously and re-examine some of our basic thing is, we say. Being older, we believe assumptions. This of course is not easy. We we are wiser. We know idealism is tempered BETI'ER GOVERNMENT are used to our children listening to us, not by time and that realism sets in. Soon the our listening to them. Everyone likes to young activists will pass the magic age of think that he has done reasonably well in 30 and eventually they will be stepping into life so that it comes as a shock to find our our vacant shoes. We secretly enjoy thinking HON. F. BRADFORD MORSE children believing differently. Change can be about what a tough time they will have ex OF MASSACHUSETTS very difficult and threatening, especially plaining to their children why they did not IN THE HOUSE OF REPRESENTATIVES when the pressure comes from the young. solve all the problems of the world. Monday, Febru.ary 17, 1969 The temptation is to tune them out; it takes This response, or lack of response, basically much more courage to listen. avoids the issue or yields grudgingly in a Mr. MORSE. Mr. Speaker, the proper When we turn to the third of our basic kind of tokenism. It is not working very functioning of our Government accord institutions--the church-we encounter a well, and if I am right that the youth revolt ing to the system of checks and balances deep irony. Young people today are com of today is something much more than the mitted to values of love, human dignity, in normal rebelliousness of the young, then it set down in the Constitution by our dividual rights, and trust in one's fellow will not work at all in the long run. We Founding Fathers is the concern of every man. These are precisely the values of our will find ourselves constantly pushed toward responsible citizen who seeks to strength Judeo-Christian heritage. The church has the brink of backlash. en and improve the mechanisms which been their proponent for centuries. And yet The greater tragedy will be the opportu insure our democratic way of life. no institution in our society is today suffer nity we will have lost. For we know all too Such a citizen is Mr. Karl Haartz, of ing more from the sheer indifference of the well that time is running out on the great Andover, Mass., a constituent of the Fifth young. By and large, they have dismissed problems the world faces. It seems to me the church as archaic, ineffective, and even that we have a choice. By suppression or Congressional District of Massachusetts. irrelevant. apathy, we can make the youth revolution He has written to Governor Sargent, of One young man told me: "There's a genu into yet another problem-in which case the Massachusetts, and the New York Times ine religious revival going on, but the church burden will become crushing. Or we can re with his recommendation to encourage is missing out on it." Another said: "The spond in positive ways so that the energy better government by strengthening its church could fill a great need in our society, and idealism of youth can be a constructive structure, and thus its substance. It is my if it would focus less on the divine and more force in helping to solve the world's great pleasure to honor his request and share on how to apply Christian teaching to today's problems. the contents of these letters with my world." This is the third possible response. It is The problem again is that the young people simply to be responsive-to trust our young colleagues in the House: perceive hypocrisy. They know the values the people, to listen to them, to understand ANDOVER, MAss., church upholds, but they see too little in them, to let them know that we eare deeply February 6, 1969. the way of action and results. Religion to about them. HIS EXCELLENCY FRANCIS W. SARGENT, many of them is Sunday morning tedium in Instead of worrying about how to suppress Governor, Commonwealth of Massachusetts, stead of a guiding force and an inspiration. the youth revolution we of the older gen Boston, Mass. Once again, we must examine our own eration should be worrying about how to Sm: Massachusetts' progressive contribu behavior, we of the older generation. The sustain it. The student activists are in many tion to the design of governments, limited church is not some impersonal edifice, al ways the elite of our young people. They and responsible to the governed, is that of though all too often it seems that way. The perform a service in shaking us out of our separate and independent parts. However, church is what we have made it. Its dilemma complacency. We badly need their ability and there remains to be incorporated into its is that while its mission should be the right fervor in these troubled and difficult times. structure a correction that shall secure the ing of wrongs and the active pursuit of the In my judgment, the key to sustaining the substance as well as the form of such gov great Judeo-Christlan values, we have instead energy and idealism of youth is more direct ernment. made it for the most part a force for the and effective action on the problems about It is elementary that " .•. to lay a due status quo. which young people are concerned-the prob- foundation for that separate and distinct February 17, 1969 EXTENSIONS OF REMARKS 3597 exerC'ise of the di1ferent pa.rts of government This overdue correction would cut deep so dear, and on which our country was • • • the members of each should have as into government by institutionism, cronyisJn, founded, should be the rights of all men. little agency as possible in the appointment political nepotism, political debt paying. All I feel very strongly about the right of of the members of the others." In achieving these are evidence of a government with the en arrangement that would accomplish this, form but not the substance. The corrective sovereignty of all nations. The right to Massachusetts has an opportunity to improve would also discourage new programs and the direct their government's course without upon the original and so give another Na expansion of present programs without outside interference. As we commemorate tional example for better government. merit. the brief period during which Lithuania The efficacious corrective is a Constitu With every good wish, enjoyed that sovereignty and those free tional requirement that no elected or ap KARL IlAARTZ. doms, we would do well to reaffirm our pointed member of the legislative branch faith in those ideals. may be appointed, or serve in the executive The memory of the struggles endured or judicial branch of government until a by the Lithuanian people; their courage period of 14 years had passed since last LITHUANIAN INDEPENDENCE DAY serving in the legislative. and continued hope for freedom, should This step, forward, would secure for us the inspire us all. We salute them today, and substance as well as the form of a govern RON. JAMES J. HOWARD join in their hope for a future in which ment of separate and independent parts be OP NEW JERSEY all men will be free to direct their own cause, as it is now, each time an interbranch lives. We must rededicate ourselves to appointment is made it cuts asunder the full IN THE HOUSE OF REPRESENTATIVES the realization of these hopes. fabric of the Constitution's purpose. In most Monday, February 17, 1969 respects it is contrary to the substance of the Constitution: state and Federal. Mr. HOWARD. Mr. Speaker, yesterday This overdue corrective would cut deep February 16, was a day of celebration into government by institutionalism, crony and sorrow. It was the 51st anniversary MINI-AMNESTIES AND MAXI ism, political nepotism and political debt of Lithuanian independence. It is well PURGES IN GREECE paying. All of these are evidence of a govern ment of form but without the substance of that we should remember that day as separateness and independence of its parts. recognition of all the now captive nations HON. DONALD M. FRASER This correction would also discourage new which enjoyed the freedoms that we feel programs and the expansion of those pro are essential to the basic rights of all OF MINNESOTA grams that are mostly without merit. mankind, for such a brief moment in IN THE HOUSE OF REPRESENTATIVES It is suggested that you consider placing history. Monday, February 17, 1969 this matter before the General Court as a The declaration of Lithuanian inde step toward removing some of the cause of pendence on February 16, 1918, was the Mr. FRASER. Mr. Speaker, an article unsatisfaction with our Commonwealth's culmination of many years of struggle in the February 14 issue of Commonweal government. It would also be a step toward and planning, hope and frustration. magazine traces developments in Greece placing Massachusetts in the forefront of set during 1968, a year during which the ting a good example for State governments The Lithuanian people had been domi throughout the Nation as well as for the nated by larger powers from all sides, colonels who staged the coup of Ap1il Federal government. the Polish, the Germans, and the Rus 1967 were, for the first time, totally in Turning now to the proposed Constitu sians, continually since the Middle Ages. charge. The International Year of Hu tional Convention for our State, it is sug A union with Poland began in 1386. In man Rights turned out to be, in Greece, gested that you consider asking, should that 1795, Lithuania was annexed by Russia, "a year of the consistent denial of those Convention materialize, that it must remove during the third partition of Poland. rights," the article concludes. at least 18,000 words from the present Con One of the more disturbing features stitution and add not more than 1200 words. Bravely, the Lithuanian people tried to Faithfully yours, throw off the Tsarist rule, but were un of the year was the friendly attitude of KARL HAARTZ. successful. The Russian domination came the United States-in contrast to our to an end in 1915, when Lithuania was other European allies-toward the junta. overrun by German armies. During The article states: ANDOVER, MAss., In Washington, developments in Greece February 6, 1969. the First World war, Lithuania was overrun by both German and Russian were followed with a benevolent eye. At 'the The EDITOR, beginning of the year the United States has The New York T i mes, armies, which seized or destroyed every tened to give the regime full diplomatic rec New York, N.Y. thing of any value. ognition in spite of the flight of the King DEAR Sm: Massachusetts' progressive con At the end of this time, however, con whose presence had theretofore been the tribution to the ~esign of governments, ditions were looking more favorable for State Department's official excuse for accept limited and responsible to the governed, is Lithuanian independence. The defeat of ing the junta as a legitimate government. that of three parts separate and independent Germany, coupled with the internal Toward the end it almost stealthily renewed of each other. However, there remains to be full military aid, on the pretext that the incorporated into its structure a correction revolution in Russia, indicated that the time bad now come for the Lithuanians adoption of the new constitution represented that shall secure the substance as well as the progress toward the restoration of democracy. form of such governments. to become the free and independent It is elementary that " ... to lay a due people they had so long dreamed of being. The complete article follows: foundation for that separate and distinct On February 16, 1918, an independent THE JUNTA'S YEAR exercise of the different parts of govern Lithuanian state was proclaimed, based ment ... the members of each should have (By Maurice J. Goldbloom) as little agency as possible in the appoint on democratic principles. Althou gh the military junta ruling Greece ment of the members of the others." In Although their troubles were not yet seized power on April 21, 1967, it had to share achieving an arrangement that would accom over, the time bad come, and the begin some part of its power with the King almost plish that, Massachusetts, any other State, ning was made. After settling differences until the end of that year. Only since the or the Federal government has an oppor with Soviet Russia and Germany, the failure of the King's attempted counter tunity to improve upon the original and so Lithuanian people adopted a permanent coup have the colonels been totally in charge. give another National example for better constitution on August 1, 1922, accord 1968 was their year of power. And what was government. ing to all the people the freedoms of supposed to be the "International Year of The efficacious corrective is a Constitu Human Rights" was in Greece a year of the tional requirement that no elected or ap speech, assembly, religion, and communi consistent denial of those rights. pointed member of the legislative branch cation. Their period of independence, It was a year of mini-amnesties and maxi may be appointed, or serve in the executive during which time the country progressed purges, of political trials following one an or judicial branch of government until a in all areas-agriculture, industry, arts, other in quick succession while the regime period of 14 years has passed since last serv and social legislation-was to last only itself faced trial before an international ing in the legislative. 22 years. With the coming of World War court, of a new constitution imposed through This step, forward, would secure for us II, the Lithuanians were again overrun a classic totalitarian plebiscite--and of an the substance as well as the form of a gov by the German and Russian armies. other unscheduled plebiscite, less to the re ernment of separate and independent parts gime's liking, when 300,000 Athenians turned because, as it is now, each time an inter Finally, in 1940, Lithuania was declared out for the funeral of the spokesman of branch appointment is made it cuts asunder _a constituent republic of the U.S.S.R., by Greek democracy, George Papandreou. It was the full fabric of the Constitution's pur the Supreme Soviet in Moscow. also a year in which Washington's social hes pose. In most respects it is contrary to the It has always been the policy of our itations .in regard to the junta-but not substance of the Constitution. great Nation that those freedoms we hold those of this country's European allies-- 3598 EXTENSIONS OF REMARKS February 17, 1969 wet:e gradually eroded in the name of Real The plebiscite showed the expected over th&t he is being subjected to continuing politik. whelming "yes" vote; each voter received two torture. Much of the regime's verbal activity dur ballots, one "yes" and one "no." In the rural The junta continued to maintain itself ing the year was concerned with the new areas the fact that the local gendarme might with almost no support outside the armed constitution. A committee of jurists ap ask to see which ballot the voter had not de forces; with the exception of Panayotis pointed for this purpose brought in its draft posited in the box was enough to assure Pipinellis, who had accepted the Foreign at the end of December 1967; the junta was unanimity. In the Athens-Piraeus area, how Ministry at the time of the Cyprus crisis of so little pleased that it postponed publica ever, there were foreign observers at many 1967, not one major political figure had pub tion of the proposals until March 15. Not polling places; as a result only 77.3 percent of licly cast his lot with the colonels. But the that the junta objected to the many un the voters in the area were officially recorded underground opposition also failed to achieve democratic features of the committee draft. as voting for the constitution. Even more active mass support; Greeks on the whole But the proposals, drawn up before the significant, 22.3 percent of the voters in the opposed the regime but were effectively iso King's unsucessful counter-coup, left more country as a whole falled to go to the polls lated by its repressive techniques. power to the monarch than the junta was in spite of the fact that voting was compul However, the death of George Papandreou willing to give him. sory and the government had threatened served as a catalyst to mass opposition. Then the junta announced that there severe sanctions against non-voters. (Greeks Papandreaou had, at the age of eighty, main would be a period of absolutely free debate knew that this was not an empty threat; the tained his intransigent opposition to the on the constitution, after which the junta junta had removed people from their jobs junta in spite of repeated periods of house would revise it in the light of the discussion. for having jailed to vote in the elections oj arrest which his friends believe significantly A number of the leading polticial figures of 1946.) All those who failed to vote have now hastened his death. More than any other the country, headed by former Premiers been ordered to submit written explanations; man he symbolized the desire of the Greek George Papandreou and Panayotis Kanello if these are not satisfactory they will be sub people for the return of democracy and free poulos, took advantage of the opportunity jected to such civil sanctions as loss of auto dom, and in death he rallied them to that to express their disapproval of the draft mobile permits and driving licenses, and will cause even more eloquently than in life. and the procedure which the government also be liable to criminal prosecution and im Some fifty thousand Athenians crowded the proposed to use in adopting the new charter. prisonment. cathedral and the square in front of it for Their comments were not published, or ap Andreas Papandreou, freed at the end of his funeral services; at least a quarter mil peared only in distorted form, and they December 1967, left Greece shortly there lion more lined the route of the funeral were imprisoned or placed under house ar after and soon took a leading role in the cortege to the cemetery. In the cathedral rest. In contrast, a State Department spokes opposition to the junta outside Greece and itself political leaders of all groups came to man "welcomed" the draft and added, "We to some extent inside the country as well. In pay their respects or if they-like Mikos are further pleased to note that comments February he announced the formation of Theodorakis, who was under house arrest, from the Greek people and the press on the the Pan-Hellenic Liberation Movement and the self-exiled Constantine Karamanlis draft of the constitution are being en (PAK) to unite all opponents of the junta were absent, they sent wreaths. couraged." This was one contribution to the within Greece and abroad. PAK later made Papandreou's old friend and opponent discussion the junta was glad to publish. an agreement for cooperation with the Patri Panayotis Kanellopoulos told the mourners Although the junta's own draft was prom otic Front, an organization which was closely "I bow before George Papandreou in the ised for the end of June, it actually ap related to the pre-coup Union of the Demo name of our past conflicts, all of which took peared in mid-July. It differed from the com cratic Left (EDA). Nevertheless a number of place within the arena of democracy." And mittee version principally in giving no power underground organizations continued to from the throng in the square and along at all to the King, increasing the authority work more or less independently on one an the route there were cries of "Democracy" of the government at the expense of Parlia other, although in most cases their relations and "You will always be our leader." Others ment, and giving the armed forces a major were friendly. There was, however, one ex shouted "Today is the day we vote no!" And role in the government while making them ception: the Greek Communist movement at the grave some cried out "Papandreou, largely autonomous. Its provisions for the split, and a large majority of Communists now you are free!" while several hundred protection of human rights and civil liberties and Communist sympathizers both in Greece young people took up the shout, "The giant were not only hedged about with all sorts of and in exile broke with the Moscow-backed is fallen; he leaves an heir, Andreas! Liberty! restrictions; all civic rights and legal pro leadership of Koastas Koliyannis. (Neither Liberty!" Now people knew that they were tections could be taken away from anyone Koliyannis nor any member of his Politburo not alone in their opposition to the junta; who "abused" them. The "completely free had been in Greece, since 1948.) EDA and the there seemed little doubt that far more of discussion" of the constitution which the Patriotic Front, through which the Com them would henceforth be ready to give junta had promised continued on the same munists had worked, also rejected the Mos that opposition an organizational form, in bi\SiS as before; anyone was free to say or cow leadership. The Koliyannis group at spite of the ever-present danger of imprison write anything he wished about the draft, so tempted, with rather little success, to claim ment and torture. long as it was favorable. The government also the name of the Patriotic Front for a rival WASHINGTON AND STRASBOURG repeatedly promised that all the imprisoned underground group it established under its In Washington, developments in Greece political leaders would be released in time to own control; it had little following in the were followed with a benevolent eye. At the participate in the discussion and to oppose country. The split originated in differences beginning of the year the United States the constitution "if they dared." over policy in Greece, and especially in the hastened to give the regime full diplomatic On September 16 the junta published the demand of those within the country for con recognition in spite of the flight of the King revised version of its draft on which the peo trol over their own organizations and pol whose presence had theretofore been the ple were to vote on September 29. It included icies. But it soon extended to other issues; State Department's official excuse for accept one major change from the July draft. In EDA, the Patriotic Front, and a number of ing the junta as a legitimate government. July the junta had retained the power to de the leading Communists imprisoned in Toward the end it almost stealthily renewed cide when the new constitution would go into Greece vigorously protested against the So full military aid, on the pretext that the force, but now it decreed that this would oc viet invasion of Czechoslovakia. adoption of the new constitution represented cur immediately after its adoption in the Some small groups worked in isolation progress toward the restoration of democracy. plebiscite--except that the provisions for the fro. , the major political blocs. One such In Strasbourg, however, the Council of Eu protection of civil liberties, the establishment group seems to have been responsible for the rope and the European Commission on Hu of political parties, elections, and parliamen unsuccessful attempt of Alexander Panagou man Rights took a different point of view. tary rule were to be indefinitely suspended. lis to assassinate Premier Papadopoulos. The Assembly of the Council of Europe de The new draft also eliminated a provision in The Premier explained the failure of the at clared on September 26 "that the draft con the earlier one banning anyone who had ever tempt on theological grounds. "You may be stitution drawn up by the Greek Government been a citizen of any other country from par certain," he said, "that as long as God, who does not conform to democratic principles; ticipating in Greek civic life. This provision is a philhellene, links my life with the inter that the conditions in the months preceding had been aimed at Andreas Papandreou, a ests of Greece, I will be safe. God has always the referendum on the draft constitution former American citizen, but Archbishop been a philhallene and it is proved that he have made a free and democratic campaign Iakovos of the Greek Orthodox diocese of continues to be so, to the embarrassment of impossible . . . and that it cannot therefore North America protested that the Greek gov th~ enemies of Greece." be considered as a free expression of the ernment must not treat Greek-Americans as Panagoulis took the stand at his trial to popular will." It condemned "the continued foreigners, and the provision was eliminated. assert that he had acted entirely alone, and refusal of the Greek Government to restab On September 23 the promised amnesty for to ask that the death sentence be imposed lish human rights and fundamental freedoms political leaders took place: seven were re on him. He also described the extreme tor and to ensure the rapid return to a demo leased, including former Premiers Papan tures to which he had been subjected and cratic parliamentary regime." Expressing dreou and Kanellopoulos. Six days might asked that they be verified by medical ex "solidarity with the Greek people in its pres seem a short time for the freed leaders to amination. Although he was sentenced to ent plight and especially with those who are participate in the constitutional "debate" death-not, ostensibly, for the assassination the victims of repressive measures," it placed but the government made clear that they attempt in which nobody was injured but for the question of possible suspension of Greece were not to use the time in that way. desertion from the armed forces and plotting from membership in the Council of Europe Premier Papadapoulos declared, "I hope they to overthrow the government--worldwide on its agenda for January 1969. will not make another false step and force pressure led to a commutation of his sen Meanwhile the Commission on Human me to put them away again." tence to life imprisonment. There are reports Rights took up the charges which had been February 17, 1969 EXTENSIONS OF REMARKS 3599 brought against the Greek regime in 1967 by effect by the Common Market, the tax thunderclaps. The orange cloud of smoke, the Scandinavian countries; consideration of would seriously endanger U.S. soybean hugging the ground, drifted out to sea from them had been delayed by the junta's unsuc markets. Launching Pad 39. Apollo 8 was out of sight cessful challenge to the Commission's Juris and on its way to man's first voyage around diction. During December the Commission On February 3, while I was in Bonn, the moon. heard numerous witnesses describe the tor Germany, I had lunch with Franz Jo Walking away from the press site at Cape tures and other violations of human rights seph Strauss, the German Finance Min Kennedy, Dr. Wernher von Braun, the rocket which had taken place In Greece under the Ister. During the course of our discus pioneer, smiled broadly, brushed back his junta, while others contradicted the colonels' sions he pledged his opposition to the graying blond hair and recalled something assertion that their overthrow of Greek proposed tax. He authorized me to state, Jules Verne once said. "Anything one man democracy and suppression of human rights publicly, his opposition. Because of the can imagine," said Verne, who a century had been justified by a danger of Communist ago wrote of man flying around the moon, insurrection. The Commission planned. to interest in this matter by soybean farm "other men can make real." hold further hearings In January. ers, I submit the text of my statement Apollo 8 made real the fantasies of Verne Internally, the junta Is likely to face in announcing the German opposition for and other men. Future Apollo flights in 1969 creasing d11liculties in the coming months. inclusion in the RECORD at this point: are expected to take men to the surfece of The Greek economy has seriously deterior During a luncheon discussion in Bonn, the moon. Such experiences should not only ated since the coup; not only has there been Germany today, February 3, I received as open the moon to on-the-scene exploration, a sharp drop in the economy's growth rate, surances of the German Minister of Finance but also expand as never before man's vision but serious balance of payments difficulties Franz Joseph Strauss that he will use his of his future. have developed. and there has been a rise of influence to oppose the new high excise tax For if man can fly to the moon, what more than a third in currency in circulation on soybean oil and meal proposed by the can't he do? and a quarter in bank credit. Only the de European Communities' Commission for TRAIL TO THE PLANETS pressed state of the economy has prevented Agriculture. If put into effect by the Common this inflation of the money supply from being In the exuberance that followed Apollo 8, Market, of which Germany is a part, the tax Dr. Thomas 0. Paine acting admlnlstrator reflected. In higher prices. would seriously endanger U.S. soybean mar Meanwhile a major part of the country's of the National Aeronautics and Space Ad kets. Last year, the U.S. sold about $450 mil ministration, declared.: financial reserves have been dissipated.; the lion in soybeans, soybean oil, and meal to junta has ooncealed this by the transfer of "We're looking forward to the day there will the Common Market and $130 million to be manned space stations in the sky, con funds from the secret gold sovereign. internal Germany. I pointed out to the finance min stabilization fund to the official reserves, by ducting lunar explorations, and in the dis ister that the U.S. outcry is already so for tant future beyond that, blaZing a new trail pawning sop:1e $70,000,000 worth of the gold midable as to raise the probability of retali reserve and including both the gold and the on out to the planets." ation if the tax is imposed.. The retaliation Space engineers and scientists are con money borrowed. against it, and by oounting would likely involve higher U.S. tariffs on in Its reserves about $50,000,000 more bor vinced that in the next 25 years communica cars and other items produced in Europe and tions and weather satellites will ring the rowed. abroad on terms requiring that it be would also tend to strengthen U.S. demands left on deposit with the lenders. earth, men will be ferrying to and !rom mam for a sharp reduction in American troops in moth hotel-like orbiting spaceships, semi At the same time, the demonstration at Europe. Mr. Strauss told me he favors lower, the Papandreou funeral has paved the way permanent manned scientific outposts will not higher, barriers to trade between the be established on the moon, instrument for the development of a resistance move United States and Germany and authorized ment which will be able to organize the dis laden spacecraft will be skirting Jupiter, me to announce his opposition to the pro Saturn, Uranus and Neptune, and robots content which the junta's economic malfea posed tax. Because of Mr. Strauss's position, sance seems likely to produce. The junta has and perhaps even men will be landing to I consider his promise to be a big help in explore Mars. been rather desperately trying to escape from keeping the proposed tax on the shelf where its economic predicament with the aid of Astronomers may be studying the stars it belongs. U.S. Minister to Germany Russell from telescopes on the airless moon. Geolo foreign capital. So far its efforts in this direc Fessenden was also present at the luncheon. tion have been notably unfruitful: the Lit gists should be speeding across the lunar ton contract, which was ballyhooed as prom surface in special roving vehicles, picking at ising an investment of $850,000,000, has pro rocks, digging into craters in search of clues duced less than 1 percent of that amount in to the origin of the solar system. its first twenty months. The new Onassis AFTER MOON FLIGHT SPATIAL WORKSHOPS agreement appears to provide for approxi Although space may never replace Pitts mately forty million dollars a year invest HO . OLIN E. TEAGUE burgh, industry may be producing ball bear ment--but even this relatively small sum is ings, telescope lenses and steel foams in or not promised by Mr. Onassis, but is mostly OF TEXAS biting workshops. to be raised by him from others. And there IN THE HOUSE OF REPRESENTATIVES Weightless, a phenomenon regarded. with is no guarantee that he will be any more suc Monday, February 17, 1969 apprehension before the space age, offers such cessful in luring foreign investors than Lit intriguing manufacturing possibilities. Liq ton has been. Mr. TEAGUE of Texas. Mr. Speaker, uid, floating in a weightless environment, Under the circumstances, we may soon see takes the shape of a perfect sphere. the junta trying to parlay its political ties an article in the New York Times of January 6, 1969, by John Noble Wilford, Thus it is conceivable that the most nearly with Washington into loans and grants. One perfect metal ball bearings could be cast in cannot, of course, tell what Washington's describes his own reactions immediately space, says Dr. George E. Mueller, NASA's response will be; certainly there will · be fullowing the highly successful launch of associate administrator for manned. flight. strong pressures from some State Depart Apollo 8 and outline8 the opportunities Similar techniques could also be developed ment and Pentagon circles in favor of play for space during the next decade. Mr. to produce steel foams as Ugh t as balsa wood ing Santa Claus to the colonels. But one Wilford in his article points to the pos but with the strength of solid steel or com may doubt if the fiscal atmosphere will be sibility for utilitarian application in posite materials made of steel and glass. oongenial to that sort of generosity. The This could be economical on a limited colonels may even find themselves driven to space as well as the unbounded frontier scale, according to Dr. Mueller, with the in make concessions to their people. of exploration that has been opened. He troduction of reusable spa.cecraft for shuttle summarizes well not only the achieve service between earth and orbiting labora ments of the first decade in space but tories. They could be in service by 1980, de the possible returns from our space pro livering payloads in orbit at a cost of about WEST GERMANS TO OPPOSE EEC IM gram in the future and its potential $5 a pound, compared with the several hun PORT TAX ON SOYBEANS benefit to all mankind. Mr. Wilford in dred thousands of dollars a pound today. Large workshops in orbit are the next big his article probes the practical dreams step, predicts Dr. von Braun, who is director of such outstanding men as Dr. Wernher of NASA's Marshall Space Flight Center in HON. PAUL FINDLEY von Braun, Dr. Thomas 0. Paine, Dr. OF ILLINOIS Huntsville, Ala. George E. Mueller, and Dr. William H. They could be used for surveying earth IN THE HOUSE OF REPRESENTATIVES Pickering and their views of the chal resources, using current technology in re Monday, February 17 1969 lenge in our national space effort. The mote sensing and photography to detect crop article fDllows: and forest diseases, track schools of fish, fore Mr. FINDLEY. Mr. Speaker, American cast weather weeks in advance, remap the soybean farmers are worried and con [From the New York Times, Jan. 6, 1969] world or spot likely sources of petroleum and cerned about the prospects of the Euro AFTER MOON FLIGHT minerals. pean Economic Community-Common (By John Noble Wilford) In the next few decades man will be busy Market--imposing a new high excise The earth no longer shook. The air was reconnoitering the vast reaches of the solar tax on soybean oil and meal. If put into still, no longer the conveyor of staccato system beyond the moon. 3600 EXTENSIONS OF REMARKS February 17, 1969 Dr. William H . Pickering, director of the Toward this end, I have drafted a let SOYBEANS MAY- BE HEADING T0.. Jet Propulsion Laboratory in Pasadena., Calif., ter appealing to the world community to WARD COTTON-LIKE DISASTER predicts: use all appropriate channels at its com "We will be ranging all over the solar sys mand to prevent this threatened genocide tem observing the other planets with un of the Jews in Iraq. This letter signed HON. PAUL FINDLEY manned spacecraft. We will be flying to the OF n.LINOIS m oons of Jupiter and through the rings of by 64 Members of the House has been Saturn. We will be landing unmanned probes forwarded to the United Nations, heads IN THE HOUSE OF REPRESENTATIVES on some of the planets, certainly Mars and of states, and the chief officials of the Monday, February 17, 1969 Venus and probably on one of the moons of international humanitarian organiza Jupiter." tions. Mr. FINDLEY. Mr. Speaker, Mr. Clif One of the most ambitious unmanned The text of the letter and the list of ford Hardin, the Secretary of Agriculture, voyages could be the "grand tour" of the signers follow: faces a crucial decision early in his term outer planets. Launched in 1978, a spacecraft of office. He must determine the price co-..lld be aimed to fly by Jupiter and on to We the undersigned Members of the House support levels for soybeans. On February Saturn, Neptune and Uranus, all of whose of Representatives of the United States of orbits would be in proper position. America, appeal to the world community, 6, I wired the new Secretary to urge him Using nuclear rocketry, it should be possi through all appropriate international agen to lower the support price so that the ble to land men on Mars bafore the century cies and diplomatic channels, to prevent the marketplace system may be allowed to is out, Dr. Pickering said. And on the moon threatened genocide of the Jewish commu operate once more to bring production he envisioned large bases to which scientists nity of Iraq. of soybeans in line with demand, and so shuttle from time to time much as they visit Objective reports from the Middle East that Government price guarantees will outposts on Antarctica. make it clear the primary crime of nine no longer serve to stimulate overplanting. Iraqi citizens hung as spies was Jewishness. EXPLORING THE OCEANS The promise of Baghdad radio to continue On February 14, I followed up my tele The sophistication of space technology is finding scapegoats for domestic problems is gram with a letter comparing the plight beginning to pervade the fields of medicine, frighteningly reminiscent of the start of of soybean production with that of cot metallurgy and communications, Microelec Hitler's "final solution" to the "Jewish prob ton and calling attention to omnious par t ronic devices used to monitor astronauts' lem." allels in the two crops. health in space are being applied experi In the name of humanity, the slaughter Mr. Speaker, under unanimous con mentally to keep watch over hospital pa of innocent people because of their religion sent I include the text of my wire and tients. Other space "spin-offs" include the or race must be stopped immediately and letter to the Secretary as part of my re synthesis of diamonds, improved welding not permitted to resume. techniques and a refined rocket fuel used in Joseph P. Addabbo, of New York; John marks at this point: treating tuberculosis and mental illness. B. Anderson, of lllinois; Thomas L. CONGRESS OF THE UNITED STATES, Space technology is also spurring explorers Ashley, of Ohio; Alphonzo Bell, of Cal HOUSE OF REPRESENTATIVES, to challenge the last remaining frontier on ifornia; John A. Blatnik, of Minne Washington, D.C., February 6, 1969. earth-the oceans. Aerospace engineers are sota; Glenn M. Anderson, of Califor DEAR MR. SECRETARY: Your forthcoming de leading the way in building new research nia; Frank Annunzio, of lllinois; Wil cision in regard to price supports for soy submarines, deep-diving equipment and un liam A. Barrett, of Pennsylvania; beans for the coming year is one of crucial dersea laboratories for exploration of the Mario Biaggi, of New York; Edward P. importance for American agriculture. By this untapped resources on the sea floors. Boland, of Massachusetts. wire I wish to encourage you, as Former Not least of the effects of spaceflight on Frank J. Brasco, of New York; William President Johnson might have said, to "bite mankind oould be spiritual. From far out in s. Broomfield, of Michigan; Phillip the bullet" by announcing supports at the space, as the Apollo 8 astronauts observert, Burton, of California; Jeffery Cohelan, level of $2.05 a bushel, or thereabouts. the earth is a blue cloud-streaked ball-an of California; Charles C. Diggs, Jr., Farmers and grain merchants with whom other planet, beautiful but not particularly of Michigan; George H. Fallon, of I have communicated tell me this figure large. And when they were flying back from Maryland; Dante B. Fascell, of Florida; would be low enough to permit the market the moon, they spoke of returning to the Thomas S. Foley, of Washington; place to function to the longterm advantage "good earth," not to the United States. James G. Fulton, of Pennsylvania; of farmers. It would reverse the trend of the Thus space offers a new perspective of Martha W. Griffiths, of Michigan; Sey past two years during which this wondercrop earth. As Arthur C. Clarke observes in his re mour Halpern, of New York; Chet of yesterday has found itself in a surplus cent book, "The ?romise of Space," "The Holifield, of California. problem for the first time. crossing of space--even though only a hand W . E. Brock, of Tennessee; J. Herbert As a six-year member of the House Agri ful of men take part in it-may do much to Burke, of Florida; Tim Lee Carter, of culture Committee, I know this is a tough reduce the tensions of our age by turning Kentucky; Emilio Q. Daddario, of Con decision politically. I am confident, however, men's minds outward and away from their necticut; Harold D. Donohue of Mas that action to cause farmers to produce once tribal conflicts. It may well be that only by sachusetts; Leonard Farbstein, of New more for the marketplace, instead of gov acquiring this new sense of boundless fron York; 0. C. Fisher, of Texas; Samuel ernment bins, will not only pay early divi tiers will the earth break free from the N. Friedel, of Maryland; Robert N. dends to the soybean farmer but will give ancient cycle of war and peace." Giaimo, of Connecticut; Gilbert Gude, your administration the best possible send of Maryland; Henry Helstoski, of New off. Even those who criticize-and, believe Jersey; Craig Hosmer, of California. me, these will be vocal-will respect you for James J. Howard, of New Jersey; Allard the decision. PROTEST AGAINST EXECUTION OF K. Lowenstein, of New York; Robert The alternatives-keeping the support at JEWS IN ffiAQ McClory, of lllinois; Robert N. C. Nix, $2.50, or dropping it an amount insufficient of Pennsylvania; Richard L. Ottinger, to influence planting decisions-will com of New York; Bertram L. Podell, of pound today's problems: surplus stocks will HON. JAMES H. SCHEUER New York; Melvin Price, of Illinois; likely increase; program costs will increase; Henry S. Reuss, of Wisconsin; Fred the interests wishing to protect the status OJ' NEW YORK B. Rooney, of Pennsylvania; Edward quo will have had a year to dig in; and con IN THE HOUSE OF REPRESENTATIVES R. Roybal, of California; James H. sequently, a year from now a decision to re duce price supports will be far more difficult Monday, February 17, 1969 Scheuer, of New York. Edward I. Koch, of New York; Donald E. than today. Mr. SCHEUER. Mr. Speaker, the tragic Lukens, of Ohio; John M. Murphy, of During the past week I have talked with execution of nine Iraqi Jews is an act New York; Thomas P. O'Neill, Jr., of farmers about this problem, and one of them, which must be deplored by all who strive Massachusetts; Claude Pepper, of Flor Harry Pick, Chenoa, llllnois, stopped at my for peace and understanding in this cha ida; Howard W. Pollock, of Alaska; office to urge me to speak out for price sup Roman C. Pucinski, of Illinois; Peter port reduction to $2.05. Mr. Pick was na otic world. There is no doubt that this W. Rodino, Jr., of New Jersey; Benja tional soybean champion in 1966, and said he repugnant action is the beginning of a min S. Rosenthal, of New York; had attended several farmer meetings recent cycle of massive persecution and retalia Charles W. Sandman, Jr., of New ly in Illinois. Judging by informal surveys, he tion against the Jewish community in Jersey; Garner E. Shriver, of Kansas. believes most soybean producers will support Iraq. Louis Stokes, of Ohio; Lionel Van Deer the move. Many of them, he said, are out However, deploring this latest case of lin, of California; Jerome R. Waldie, of spoken in calling for lower supports. They genocide against the Jews is not enough. California; Lawrence G. Williams, of are convinced, he said, that continued sur Pennsylvania; Frank Thompson, Jr., of pluses like those of the past two years mean We, as one of the leading legislative New Jersey; Joseph P. Vigorito, of serious trouble in the future. bodies of the free peoples of the world. Pennsylvania; Charles W. Whalen, Jr., Illinois was the top producer of soybeans must register in most forceful terms our of Ohlo; Charles H. Wilson, of Cali last year, and the district I represent is one mortification at this act of butchery. fornia.. of the foremost producers in the state. February 17, 196·9 EXTENSIONS OF REMARKS 3601 Failure to drop supports substantially at recall I have recommended that it go to States Government for its continued firm this time may lead to a surplus problem so about $2.05---wlll bring an outcry from those refusal to recognize the consequence of So serious in a few years as to involve manda who are unaware of cotton's grim fate. viet aggression. However, this stand in itself tory acreage controls. Others who are determined to restore soy is not sufficient to bring about the liberation PAUL FINDLEY, beans to a sound economic base will be of presently-subjugated nations. Member of Congress. grateful. It is our firm conviction that strong and Thanks for lunch and for listening. steady pressure must be exerted upon the CONGRESS OF THE UNITED STATES, Sincerely yours, rulers of Soviet Union by the governments HOUSE OF REPRESENTATIVES, PAUL FINDLEY, and peoples of the free world to effect the Washington, D.C., February 14,1969. Representative in Congress. liberation of Soviet-captive nations. We de DEAR MR. SECRETARY: In the most Welcome mand, and ask the free world to join us in luncheon conversation Monday with you and demanding, that the Soviets withdraw their Undersecretary Phil Campbell, we discussed army, police and ruling apparatus from Lith the surplus problem now confronting soy uania, so the people of Lithuania could bean growers and its relationship to govern LITHUANIAN INDEPENDENCE freely elect a government of their own choos ment price supports. I take this opportunity ing, in accord with the Atlantic and United to explain my concern over the soybean out Nations Charters and the principle of self look and why I feel a substantial reduction HON. ROMAN C. PUCINSKI determination which the Soviets cemand for in the price support for the 1969 crop is re OF ILLINOIS the peoples of Asia, Africa and Latin Ameri qUired. IN THE HOUSE OF REPRESENTATIVES can countr1es. The blame for soybeans' plight may prop Monday, February 17, 1969 As citizens of the tTnited States, we Ameri erly be laid squarely at the door of your cans of Lithuanian descent appeal to you predecessor, former Secretary Orville L. Free Mr. PUCINSK.I. Mr. Speaker, yester to urge the United States Government to man, who launched in 1966 an unfortunate take all possible peaceable means to restore drive to increase by government -action the day marked the 51st anniversary of the Declaration of Independence of Lithu the freedom and independence of Lithuania, production of soybeans. He permitted soy Latvia, Estonia, and all other captive nations. bean planting on acres diverted under the ania. Throughout America and the en cotton and feed grains program, asked pub tire world people of Lithuanian descent licly for higher soybean production, and paused to re:fiect on the determination opened the gate to serious trouble by raising of this country to attain freedom, which APOLLO STATUS SUMMARY price supports to $2.50 a bushel. today remains the fervent hope of those At the time I warned that these actions would get soybeans into trouble, and trouble in Lithuania now under suppression by is here. I call it cotton-like trouble because the Soviet Union. HON. JAMES G. FULTON it has the same cha-racteristics as the govern It is unfortunate to think that at a OF PENNSYLVANIA ment-induced problems which have plagued time when freedom is a living reality in IN THE HOUSE OF REPRESENTATIVES the land of cotton in recent years. these United States, the people presently Let me illustrate. Cotton supports were in confined to the borders of Lithuania it Monday, February 17, 1969 creased. This hurt markets at home and self must hold freedom only as a desire. Mr. FULTON of Pennsylvania. Mr. abroad. The artificial pricing served as an umbrella under which synthetic fibers made We, as citizens of the free world can Speaker, under leave to extend my l'e rapid progress in taking cotton markets at not overlook or silently tolerate the bold marks in the RECORD, I include the fol home and in stimulating competitive pro and continued advances of the Soviet lowing report on the progress of the duction abroad. Soon government bins over Union to overtake the tiny countries of Apollo manned space :flight program: fiowed with cotton. Program costs sky this world which remain easy prey to APOLLO STATUS SUMMARY rocketed. In 1967. the program cost exceeded Communist clutches. With the launch of the Apollo 9 ·mission 11 the market value of the entire crop. Mr. Speaker, in commemoration of the Note the grim similarities with soybeans. days off, the Apollo 9 countdown demonstra The high price supports Mr. Freeman 51st anniversary of Lithuania's inde tion test reaches the first of two simulated started in 1967 have contributed to a shock pendence, I am pleased to insert the text blast otis on Tuesday 18 February. The test ing carryover. To illustrate the magnitude of of a pro memoria on Lithuania's inde began on Wednesday February 12, and it in the problem as it has already developed, the pendence, prepared by the Lithuanian cludes the entire countdown operation. The astronauts do not participate in the Commodity Credit Corporation on January 1 American Council, Inc., in the RECORD showed soybeans in government inventory today, as follows: fueling exercises which constitute the first and under loan at $961 million, exceeding part of the countdown demonstration test. com-unbelievably-by $20 million on that PRO MEMORIA ON LITHUANIA'S INDEPENDENCE Once the fueling test is completed, the astro date. BY THE LITHUANIAN AMERICAN COUNCIL, nauts actually board the spacecraft and the Spurred by the guaranteed $2.50 price, INC. countdown is repeated, simulating the fuel speculators in the south cleared and planted Soviet Russia's invasion and occupation of ing operations. to soybeans thousands and thousands of Czechoslovakia in 1968 was a dramatic re These practice runs are essential to the acres. minder to the free world of the identical So success of the precision countdown which At the same time that government bins viet invasion and occupation of Lithuania climaxes on February 28, Friday, at 11 :OO a.m. were filling up, the competitive position of and the other two Baltic States in 1940. In Eastern Standard Time, in the ignition of soybeans was deteriorating at home and both instances the Soviet aggression was un the boosters to launch the three Apollo 9 abroad. provoked, in flagrant violation of existing astronauts into earth orbit. Last year, the sale of urea, a synthetic treaties and international law, and against For the Apollo 9 mission, the astronauts compet.itive with soybeans, reached the the free will of the people. are: Colonel James M. McDivitt, U.S. Air equivalent of 150 million bushels of beans. The United States Government sternly Force; Colonel David R. Scott, U.S. Air Force Abroad, the Soviet Union expanded substan denounced this wanton Soviet aggression in and Russell L. Schweickart. They Win orbit tially the production of sunflower seeds while July 1940 and has steadfastly refused to rec the earth in a mission lasting 9 days and 22 Europe expanded rapeseed-another compet ognize the illegal annexation of Lithuania hours. The mission is designed to test and itor to soybeans. Peruvian fishmeal output by the Soviet communists. This just and hon evaluate the lunar excursion module which increased sharply. orable position, a basic tenet of United will transfer two astronauts from lunar orbit Unquestionably, artificial pricing of U.S. States policy, has been maintained by all down onto the lunar surface and return them soybeans contributed substantially to these succeeding administrations. safely to the mother capsule. competitive developments. Despite the condemnations of the occupa The Apollo 10 space vehicle is undergoing If high price supports are continued for tion by the free world, the Soviet Union still fluid systems tests at the Kennedy Space soybeans it will be cotton all over again, forces Lithuania and its people to suffer op Center's Vehicle Assembly building this week. with the prospect in the immediate future of pression and exploitation under despotic The space vehicle has been mated to the cotton-like restrictions on planting. As the communist rule. Lithuanian national cul launch vehicle and is being prepared for the story of cotton amply attests, planting re ture is gradually being destroyed and russi Apollo 10 mission in May of 1969. strictions solve no problems. They just create fication of the country and its people is being The Apollo 11 booster is also under con new ones. brought about. Yet, even though their coun struction at Cape Kennedy. The second stage While I regret that you face the discom try has been converted into a colony of the of the Apollo 11 launch vehicle is undergoing fort of undoing the mistakes of Mr. Freeman, Soviet empire, the people of Lithuania-and receiving inspection at the Vehicle Assembly you alone have the means this year to halt the patriotic Americans of Lithuanian de Building. Other components and stages of the soybeans' plunge to a cotton-like disaster. scent--demand freedom and independence Apollo 11, 12 and 13 boosters are arriving Action to drop the support price and to for Lithuania! dally at Cape Kennedy, by air and by barge permit the market to function-as you will We are sincerely grateful to the United and by truck.