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July 22, 1994 EXTENSIONS OF REMARKS 17749 EXTENSIONS OF REMARKS

SAVE THE 800 NUMBER­ ion, where the original call to the 800 number that 250 of those children are coming to the COSPONSOR H.R. 4802 of the dial-a-porn service was made from the State of New Jersey. Under the very capable business' telephone. direction of John and Joan Hughes, area coor­ HON. BART GORDON Another problem has arisen from young dinators, the Clifton Chapter, which is the larg­ OF TENNESSEE people using their parents'-or a friend's par­ est in the State of New Jersey, received 42 IN THE HOUSE OF REPRESENTATIVES ents'-phone to call dial-a-porn numbers. children this year. Many parents have blocked 900 numbers from I would like to extend a warm welcome to all Friday, July 22, 1994 being called from their phones to avoid this of our guests from Northern Ireland, espe­ Mr. GORDON. Mr. Speaker, I have just in­ kind of problem, but calls to an 800 number cially, Emma Murphy, Lisa Toner, Jerrod troduced a bill that will close a regulatory loop­ are much more difficult to block at this time. In Toner, Seadhna Billings, Cailin McKnight, hole that has allowed misuse of 800 telephone addition, other services avoid 900 blocking by Thomas Tracey, John Hoey, Keith Rea, and numbers. moving off shore, to The Netherlands Antilles, Padraig O'Hara. The events of -the past few It may come as a surprise to many of my for example. months have given these children and their colleagues, but 800 numbers are not always One of my constituents who wanted to block friends and family reasons to hope. The free for the caller. In fact, a major national international calls was told it would cost her Downing Street declaration, which was pro­ problem is apparently developing that could $53. posed in December, could be a step in the cause the public to lose faith in 800 numbers I have just introduced a bill, H.R. 4802, that right direction, toward peace in Northern Ire­ and seriously damage the multi-billion-dollar should help stop these problems. This bill sim­ land. For their sake, I certainly hope so. business that has built up around them. ply bans charging for 800 calls on a telephone I would also like to thank the host families Businesses throughout the country depend bill. who have opened their hearts and their homes on 800 numbers to bring them customers over The FCC probably could have taken care of to these children, especially Kevin and Kath­ the telephone lines. If we don't move to make this problem under its broad existing authority leen Drennan, Robert and MaryAnn sure that 800 toll free numbers really are just to regulate the telecommunications industry McAdams, Brian and Lorri McGorty, Richard that-free to the caller-then customers may and to stop misleading practices in this indus­ and Carolyn Malizia, Joseph and Marie grow wary of calling businesses. try, including the pay-per-call industry. In addi­ Masterson, John and Mary Brunn, Thomas Many people may even start blocking 800 tion, AT&T, Bell South and other telephone and Peggy Dreker, and James and Beverly numbers, so that 800 numbers cannot be companies have taken steps to stop charges Aibel. called from their telephones. Obviously, this for calls to 800 numbers. I am sure my colleagues join me in wishing would be an expensive disaster that would But the FCC has not acted to stop this prob­ these children and their families the best in cause major losses to businesses and the lem. Something needs to be done now, and the future. We also commend their host fam i­ telecommunications industry as well as incon­ this bill will do it. lies for their caring and generosity. Further­ venience to consumers. I ask my colleagues for support in trying to more, we hope that in the coming year, they My legislation simply closes a loophole left move this legislation quickly to stop the will no longer have to endure the kind of vio­ in current law by preventing 800 number abuses and save the 800 number. lence they have been living with for so many charges from appearing on a telephone bill. years. Two years ago, after years of hard work es­ pecially by Congressmen MARKEY, SWIFT and IN HONOR OF THE VOLUNTEERS TRIBUTE TO WISCONSIN DINGELL, and myself, Congress passed the AND PARTICIPANTS OF PROJECT Telephone Disclosure and Dispute Resolution CHILDREN FOR PROVIDING COM­ ENTREPRENEURS OF THE YEAR Act, a bill that protected consumers from fraud FORT TO THE CHILDREN OF and misleading practices by marketers of 900 NORTHERN IRELAND HON. TOBY ROTH numbers. The FCC and the FTC issued regu­ OF WISCONSIN lations that put the law into effect this year. HON. ROBERT MENENDFZ IN THE HOUSE OF REPRESENTATIVES One of the goals of the 1992 law was to OF NEW J ERSEY Friday, July 22, 1994 stop scams where people were induced to call IN THE HOUSE OF REPRESENTATIVES Mr. ROTH. Mr. Speaker, I rise today to 800 numbers, only to be switched to a 900- Friday, July 22, 1994 praise two of the most successful and dy­ type pay-per-call number that could cost $1 O namic businessmen I know on the 25th anni­ or more a minute. In order to make sure that Mr. MENENDEZ. Mr. Speaker, I would like versary of a remarkable partnership. legitimate information providers were not shut to take this opportunity to recognize the work It is only fitting that Wally Hilliard and Ron out, we allowed for an exemption where credit of some very special people who have given Weyers were recently honored as Wisconsin cards or presubscription agreements were in so much of themselves and their time to an Entrepreneurs of the Year. place. organization known as Project Children. These Wally and Ron, as they are known by all of But ever creative scam artists have devised people open their homes to children from their employees at American Medical Security, a scheme that allows people to put their ex­ Northern Ireland in order to provide them with first met as rival insurance agents over 25 pensive calls, such as to dial-a-porn lines, on some respite from the fighting which takes years ago. However, they recognized imme­ others' bills. place in their homeland. I also commend the diately that they shared the same vision of A caller calls an 800 number advertised young people from Northern Ireland who have what it takes to make a successful business­ somewhere. The caller says they want to use the courage and strength to endure living in originality, hard work, perseverance, and a the service. The caller is given a numerical such a hostile environment. willingness to take risks. PIN code. But here's the catch. The dial-a­ Project Children was founded in 1975 by They launched Wisconsin Employers Group porn or psychic line or other information pro­ Denis Mulcahy. Since then, the organization in 1970 from the kitchen of Wally's house. In vider will bill all future calls using that PIN has continued to grow and prosper. Thanks to 1988, after selling their company, ;ne entre­ code to the telephone used to make the first the many volunteers and contributors, Project preneurial spirit still burned bright. call, even if the caller is calling from another Children has been able to bring 9,000 children So Wally and Ron founded th eir second telephone number. to the United States. This year, Project Chil­ health insurance company, American Medical The result is that some businesses report dren has flown 840 youngsters from Northern Security, and now serve as its president and receiving large bills for calls made in this fash- Ireland to the United States. I am proud to say vice president, respectively.

e This "bullet" symbol identifies statements or insertions which are not spoken by a Member of the Senate on the floor. Matter set in this typeface indicates words inserted or appended, rather than spoken, by a Member of the House on the floor. 17750 EXTENSIONS OF REMARKS July 22, 1994 American Medical Security is a remarkable bottom of the income distribution, and the ity. In fact, Jencks and Mayer's research success story, growing almost 5,000 percent poor, on the whole, have tended to get richer documents that for more than a quarter of a in the last 5 years. over time." In other words, Reaganomics century, America's poorest households have In fact, AMS is the fastest growing em­ worked. This is only a brief summary of the spent far more each year than the total in­ ployee benefits company in the world. Inc. come they have reported receiving, and the valuable information in the article. I strongly gap between consumption and reported in­ magazine, one of the national sponsors of the urge my colleagues to read this article, and I come has grown in recent decades. In '1988-89, Entrepreneur of the Year Award, has listed have inserted it for your perusal. the poorest 10th of all households with chil­ American Medical Security as the 21st fastest [From U.S. News & World Report, July 25, dren reported a mean income of $5,588, but growing company in the U.S. 1994] Jencks and Mayer's analysis of government AMS has also been recognized for its ac­ THE POOR AREN'T POORER data shows that the same group of house­ complishments by the Wall Street Journal, (By David Whitman) holds acknowledged spending an average of $13,558--more than twice their reported in­ Forbes magazine, the Washington Post, and America, land of opportunity, is fast be­ National Public Radio. come. coming America, land of inequality-at least By looking beyond the official poverty sta­ Wally and Ron, through American Medical according to the conventional wisdom now Security and their former companies, have tistics, Jencks and other scholars present a enshrined in news stories, government re­ fuller picture of the poor. Their research an­ created over 5,000 jobs in the Fox Valley ports and campaign speeches. Bill Clinton swers a number of fundamental questions: economy. Their insurance policies are sold in has said that "I believe with all my heart Has the material well-being of poor fami­ 28 States and benefit nearly 1 million people. that I was elected on a commitment to bring lies with children deteriorated in the past The responsibility they feel toward their an end to . . . an economic policy that two decades? No-on the whole. Consumption community is, in my view, their greatest makes the rich richer [and] the poor poorer." and income among low-income households In the past five years, reporters cited the achievement. Ron and Wally have never fal­ went in opposite directions during the 1980s. fear that the rich are getting richer while The mean income of the poorest 10th of tered from their commitment to the people of the poor grow poorer in more than 600 sto­ Green Bay, the people of the State of Wiscon­ households with children fell 4 percent in ries, and a poll in December confirmed 81 real terms, from $4,935 in 1979 to $4,745 in sin, and the health insurance industry of percent of adults share that belief. 1989. But the mean amount consumed by America. As is often the case with the conventional these households during the Reagan-Bush I congratulate both of them on the 25th an­ wisdom, it is half right. Over the past two years rose 13 percent, from $12,022 in 1980 to niversary of their partnership and on being decades, the rich generally have prospered $13,558 in 1988-89. named Entrepreneurs of the Year. But more and the annual incomes reported by Ameri­ The disparity is especially important, says importantly, I salute them for embodying those cans have become more unequal. But re­ Jencks, because consumption and living con­ search by a number of prominent scholars-­ personal characteristics, namely, hard work, ditions of low-income Americans provide a most notably sociologist Christopher Jencks more realistic assessment of the material diligence, honesty, and vision, which have of Northwestern University-suggests that made this country great. well-being of the poor than does income. The much of the accepted wisdom about the poor­ Jencks-Mayer research shows that consump­ est households is wrong. The revisionists, tion among the poorest 10th of households many of whom share Jencks's liberal RESEARCH SAYS THAT POOR DID with children has edged upward a hair since leanings, contend that the tax changes and the early 1970s; their living conditions and NOT GET POORER domestic-program cuts of Ronalshort fore the House of Representatives. This his­ drug rate, which endangers every neighbor­ while. I am sure they are grateful for such a toric agreement represents over 45 years of hood in our Nation. With the combined efforts reprieve. Mr. and Mrs. Hughes have taken on trade negotiations between the United States of law enforcement agencies, citizens, busi­ the responsibility of giving some of these chil­ and other member countries and the adminis­ nesses, neighborhood organizations and local dren a chance to live in peace for a few tration should be highly commended. officials, the National Association of Town weeks. For States such as Texas, the Uruguay Watch has been able to successfully send a round opens important foreign markets to our simple message to criminals: "We are orga­ I know my colleagues will join me today in products. Being the Nation's third largest ex­ nized and fighting to take our streets back." honoring John and Joan Hughes for their de­ porter of merchandise, Texas' economy will be The participating cities celebrated National votion to the children. I am confident that their bolstered by the GATT's creation of significant Night Out with various events such as block efforts will not be in vain. In the meantime, we export and employment opportunities. parties, parades, contests, and public safety hope and pray for peace to be reached in This can only be good for my State's r con­ demonstrations, as well as the traditional dis- Northern Ireland. omy. From 1987 to 1993, Texas merchandisF.J 17756 EXTENSIONS OF REMARKS July 22, 1994 exports almost doubled, rising by 97 percent. industries face: The need for an effective THOMAS SWAIN BARCLAY-A This rise was the second largest among all the means of securing access to the right quantity GREAT TEACHER, A GREAT United States. Texas' leading export industries and quality product in times when domestic FRIEND of industrial machinery, computers, electronic supply is inadequate. equipment and chemical products together ac­ Under my amendment, authority would only HON. STEPHEN HORN apply if a specified product under a dumping counted for 57 percent of our State's exports OF CALIFORNIA in 1993. Texas is uniquely positioned to build order is not available in the domestic market. IN THE HOUSE OF REPRESENTATIVES on past successes to benefit from the Uruguay This means that either a domestic producer round and the opportunities the GA TT will cre­ does not currently produce the merchandise, Friday, July 22, 1994 ate. or a domestic producer cannot fill a request Mr. HORN. Mr. Speaker, recently a memo­ In negotiating the Uruguay round agree­ for the product. rial service was held for a great teacher and ment, the administration was immensely suc­ Let me offer an example to demonstrate the friend who encouraged over three decades of cessful in achieving United States trade objec­ need for this provision: In 1992, Northern Nat­ Stanford students to love American history tives. They successfully reduced trade distor­ ural Gas Co. undertook a large expansion and politics and to serve their community, their tions for agricultural and industrial goods, cre­ project to provide clean burning natural gas to State, and their Nation. ated regulations for new areas, such as serv­ homes from Nebraska to Iowa. Thomas Swain Barclay was a son of Mis­ ices and intellectual rights, and established an The product they need-large diameter souri, a graduate of its State university, who improved process for resolving trade disputes. steel pipe-was in short supply here in the then went east to Columbia to secure his doc­ Under the GATT, tariffs will be reduced on United States. After purchasing all domestic torate in political science. He returned to his manufactured items by an average of one­ supply available, they petitioned Commerce alma mater, the University of Missouri, and in third, mostly by zeroing out tariffs in selected under the steel VRA program-from which our a few years was called to Stanford University product categories. For the United States and amendment is modeled-for short supply. where he joined the faculty in 1927 and most other developed countries, these cat­ They were granted a short supply waiver and served as professor of political science until egories will include steel, construction and ag­ were able to import the steel they needed his compulsory retirement at age 65 in 1957. ricultural machinery, furniture, paper, toys, without having to pay a 55-percent duty. This He died at 101 on December 21, 1993, 5 medical equipment, drugs, as well as beer and exemption allowed them to complete the weeks short of his 102d birthday. distilled spirits. project on time and saved them millions of Five of Professor Barclay's students be­ Industrialized countries will also phase out dollars in potential contract penalties that came U.S. Senators; at least another five their quotas on textiles and clothing in four would have been assessed by the Federal En­ served in the House of Representatives. A stages over a 10-year period. However, for the ergy Regulatory Commission. number of his students became captains of in­ This happy ending could not happen today. first time, developing countries will also elimi­ dustry with a keen understanding of American Instead this company will have lost the right to nate their textile import barriers. politics. Among the latter were Najeeb Halaby, Agriculture goods have been fully imple­ petition for short supply and will be forced to former chief executive officer of Pan American mented into the GATT framework after the pay huge penalties as they wait for up to a Airways; Rudy Munzer, chief executive officer Uruguay round agreements. Subsequently, ag­ year for domestic industry to supply their ricultural tariffs will be reduced approximately needed product. Without my provision,' hun­ of Petrolane, Inc.; and George Egan, an entre­ one-third over 6 years. The effect will be seen dreds of companies like Northern Natural Gas preneur in southern California. in increased U.S. agricultural exports and in­ will see their costs doubled and themselves Because of the legislative schedule, neither creased farm income. placed at a serious competitive disadvantage. Senator MARK 0. HATFIELD nor I could partici­ Important provisions regarding nontariff bar­ Mr. Speaker, I and the cosponsors of this pate in the beautiful memorial service at the riers, trade in services, foreign investment, amendment believe that antidumping and Stanford Memorial Church which was ar­ and protection of intellectual property rights countervailing duty remedies are an appro­ ranged by Messrs. Egan, Halaby, and Munzer. have also been added. The final GATT accord priate response to injury caused by unfair im­ The moderator was Dr. Dennis Bark, whose will modify or establish new world trading or­ port practices in most market situations. How­ father, professor of history William Bark, was ders by creating the World Trade Organization ever, in some circumstances these remedies one of Dr. Barclay's close friends. to facilitate implementation of the agreements can prove excessive and may work to the det­ To provide a perspective on the life of Pro­ as well as strengthen trade dispute proce­ riment of consumers of a product. That is why fessor Barclay, I include the remarks of Dr. dures. The final agreements also include anti­ we have drafted our amendment to model the Dennis Bark, Senator HATFIELD, and myself. dumping procedures and contain subsidies successful steel voluntary restraint program REMARKS OF DR. DENNIS L. BARK, THE HOO- provisions. [VRA], thereby giving the Department of Com­ VER INSTITUTION, IN TRIBUTE TO THOMAS The GATT negotiations have made historic merce broad authority to review petitions. SWAIN BARCLAY strides in reducing tariff barriers. For industrial Under my proposal, the domestic producer Thomas Swain Barclay was left-handed countries, tariff barriers have been lowered holds all the cards. If they can supply the and loved baseball. As my brother and I were from an average of 40 percent in the early growing up, we learned about baseball from needs of the customer, there is no grounds for Uncle Tom; and we learned a lot of other 1950's to an average of less than 4 percent at a temporary suspension of duties. If they can things also, because we first met him when I the completion of the Uruguay round. supply 80 percent of the customers' needs, was five. In particular, I would like to thank the admin­ then the petition may be granted a waiver for He was always, for Jed and me, Uncle Tom; istration for their work to improve regional in­ the remaining 20 percent of the order. and that's what we called him all his life. dustry import concentration provisions within Mr. Speaker, the need for a temporary sus­ We thought one of the remarkable things the Statement of Administrative Action [SAA] . pension of duties arises from the realities of about Uncle Tom was his memory. He re­ In the past, interpretations of antidumping laws today's marketplace. In our increasingly global membered everything! That included facts, have made it difficult for regional industries to marketplace, we must not tie the hands of and stories, and poetry, and good, old-fash­ ioned, straight forward adages-none of prevail in pursuing fair treatment. I commend American companies. We believe that our which would have sounded the same from the administration for recognizing the unique amendment guarantees a balance between anyone else. In the next few minutes I want nature of regional industries and providing re­ the legitimate interests of producers and con­ to recite some of them, because they de­ gional industries with a fair remedy to respond sumers. For the sake of fairness, balance and scribe Uncle Tom the way many of his Stan­ to unfair trade practices. a competitive America we urge the adoption of ford friends knew him. However, while the agreement offers many a short supply provision to the GATT imple­ Often he would begin a conversation- at opportunities, there are still some provisions menting legislation. "The Frenchman's House," at 721 Alvarado that require improvement. That is why I of­ I think this amendment will go a long way Row, at his cottage at Miss Gardner's, at fered an amendment which would grant the toward improving the GATT and strengthening l'Ommies, at the Bohemian Club, at his the competitive advantage of American busi­ home on Mayfield Road, or at Webster Department of Commerce authority to sus­ Street-with, " Here is the batting order." pend dumping duties only in exceptional ness. These landmark opportunities to stimu­ So, here it is. cases. late our economy, promote U.S. exports, and My father and Uncle Tom met in 1927/28. The necessity for this provision is clear, create new, high paying U.S. jobs is a credit Uncle Tom joined the Stanford Faculty in considering the problem many of our domestic to the Clinton administration. 1927, and may father arrived at Stanford as a ~~ ...... ·- ..--- -- ..-- , ..- ~ ---~,.4"'" -

July 22, 1994 EXTENSIONS OF REMARKS 17757 Freshman that same year. That friendship ford's PACE campaign of the early 1960's. And that is one of the reasons why he was continued almost sixty-five years, until De­ When this talk started it was shortly after so fond of l"Omelette," when Andre and cember 21, 1993. Uncle Tom's retirement, and he did not like Pierre Frelier ran it. The first time he took Along the way there were many mile­ the implication. So he inverted the inten­ me there I wrote down his opening line: stones. tion, and told his friends, more than once: "Andre, it's Jack Daniels." It was also at Uncle Tom and my father loved football "Stanford is on the edge of greatness; the l'Ommies that he gave real meaning to one games, and all of us went together. We dis­ question is can it climb back to the top?" In of his favorite phrases, from Henry the cussed the "Old Alma," and listened to Dink more sanguine moments he would say, sol­ Eighth: "Good company, good wine, good Templeton on the radio. emnly: "There isn't anything I can do about welcome, can make good people." When my brother and I were teenagers he it." And if we ventured a comment, espe­ When he had enjoyed good company, good decided my brother had special talents, be­ cially when we were young, he always wel­ wine, and a good welcome, he always wrote a cause he was left handed and played first comed it with: " Well, another county heard thank you note. My mother received many of base. So every time Uncle Tom went home from!" them and so did my wife. In all of them there on Sundays, after dinner at our house, he Whenever he thought of it, he would often was certain to be one particular phrase. I would remind Jed: "Stay on first base." say in this latter context of being unable to want to turn this phrase around, as I con­ Uncle Tom was regularly at our house for do anything about it, " If you can't find clude, and say to Uncle Tom what he wrote dinner. He always brought my mother a one someone in your own country to marry, stay so unfailingly to us: "What answer can I pound box of See's candies, because they where you are." Well, I was fortunate to find make, but 'thanks---and thanks-and ever were the best. He presented the candy to someone in my own country. The result was thanks.'" mother, and said to me and my brother: that France and Uncle Tom became fast "We're in clover; your mother's cooking din­ friends for twenty years. REMARKS OF MARK 0. HATFIELD, U.S. ner." His legendary memory included the ability SENATOR Part of Uncle Tom's life was Stanford, and to recite poetry and verses, which he often In remembering Professor Thomas Bar­ another part was St. Louis, where he went did. They would just sort of roll out, and we clay, I was unsure at first how to refer to every year. We took him to the train after all would listen. Our favorite, and I think, him. Was he a teacher? Was he a mentor? we got our driver's licenses---he never drove his too, was always recited around Thanks­ Was he both? a car-and picked up his mail while he was giving and Christmas, which Uncle Tom Webster's dictionary defines a teacher as away, which included the freshly laundered often spent with us. It comes from " Love's "one whose occupation it is to instruct"-a shirts sent from St. Louis. Labours Lost": I quote: rather bland image. Later, in the 1970's and early 1980's, after I When icicles hang by the wall, The term "mentor," however, is defined as was married and Uncle Tom had moved to And Dick, the shepherd, blows his nail, " a trusted counselor or guide." True, Thom­ Webster Street, our children took him his And Tom bears logs into the hall, as Barclay was my teacher. But he was more. mail every Saturday morning on their bicy­ And milk comes frozen home in pail, He was a trusted advisor and was truly a cles, and always stayed a while to, as Uncle When blood is nipp'd and ways be foul, mentor to me. Tom used to say, " review the situation." He Then nightly sings the staring owl, Tu-who; During my years as a graduate student at kept in touch with Dwight, Matthew, and Tu-whit, tu-who-a merry note. Stanford, I was considering a career in public Samuel, and he knew until December 21 While greasy Joan doth keel the pot. service and was solidifying my Republican where they were in school and what they When all aloud the wind doth blow, roots. Yet there I was studying political par­ were studying. And coughing drowns the parson's saw; ties under the tutelage of a centrist Demo­ When I was a student at Stanford I saw And birds sit brooding in the snow, crat. As a good teacher will, he did not at­ him not only for Sunday dinners, but also for And Marion's nose looks red and raw* * * tempt to impose his opinions on his stu­ lunch at the Old Union, for a drink at the Then nightly sings the staring owl, Tu-who dents. He sought merely to ensure that my cottage, and then later across the street at Tu-whit, tu-who-a merry note. understanding of history was thorough and 619 Mayfield. In 1964, when I was in my senior Following this service there is a reception that my reasoning was solid. year, and Uncle Tom had been retired since at the Hoover Institution. A reception there At times, however, his Democratic 1957, he came back to teach a Senior is especially appropriate, for several reasons. leanings were evident. One such occasion in Colloquium on the 1964 elections---so we Uncle Tom admired the Institution under particular stands out in my mind. could say that he had been both my father's Glenn Campbell's direction, and he appre­ Under his guidance, I was writing my the­ and my teacher. · ciated Glenn's kindnesses to him, of which sis on the subject of the labor policies of Her­ During those years at Stanford, and later there were many. Moreover, the courtyard bert Hoover as they evolved during the years on, I made notes, here and there, of what he where we will toast Uncle Tom following this leading to Hoover's election in 1928. As you said. Not only did I save them, but I use a lot service, is named the "Mark Hatfield Court," know, Hoover defeated Democrat Al Smith, of them myself. in honor of Uncle Tom's former student with the long-time governor of New York, for the One of his favorites was, "Politeness costs whom he remained friends all his life. presidency. nothing and buys everything," often fol­ Apropos the reception later this afternoon, This campaign was the earliest in United lowed by "Never look at the mantle when several additional comments are, as Uncle States history to be influenced significantly you're stoking the fire." I didn't know what Tom would phrase it, "in order." There was by the advent of radio. For the first time, he meant exactly, but I think I figured it out a unique side to Uncle Tom which all of his Americans could hear the voice of each can­ in due course. friends knew and loved, and which we all rec­ didate. I contended that this development Another one, whose value I saw right away, ognized with great affection. He loved to was a significant factor in Hoover's victory. was, " Never write a letter to a woman you talk with people. He was good at it. He re­ His voice was deep and resonant. Al Smith's, couldn't chill beer on." That was one which membered everyone, and everybody knew suffice it to say (remember he was a New particularly annoyed my mother; but it him. And those who didn't, wanted to. One, Yorker), was not. sounded reasonable to me at age 21. of many reasons, was that he always fol­ In my thesis, I had labeled Smith's voice Then, there were some which did make a lowed his own adage: "Leave them laughing " unpleasant." Professor Barclay, however, lot of sense, but which an undergraduate at when you say goodby." crossed out "unpleasant" on my draft and in­ Stanford really had a tough time appreciat­ Uncle Tom loved laughter, held Stanford in serted "unusual." I kept the change, know­ ing until later on. Such as: " She knows the great affection, believed that America was ing a protest was futile. difference between a parlor and a drawing beautiful for good reasons, was dedicated to One of my fondest memories of Professor room." And two more that go together par­ the principles of democracy, considered ethi­ Barclay is the image I have of him sitting at ticularly well: "Just remember, you don't cal standards and moral values of major im­ a table at a favorite restaurant of students have to tell everything you know." If that portance; and was a gentleman. of my time, L'Omlettes, a place we had affec­ wasn't clear enough, he added, "You don't There was, in addition, the value of good tionately dubbed " L'Ommie's". An impec­ have to explain anything you didn't say." bourbon whiskey. cable dresser, Professor Barclay would sit The one I liked best, in some ways, was one Uncle Tom had strong views on this latter calmly at a table, sipping his Park and which I am still not sure I understand com­ subject, and he communicated them to us in Tifford, surrounded by enthusiastic students pletely: "Never change barrels while going no uncertain terms. His advice to me when I pumping him for comments. Warm and kind over Niagara Falls." went away to college was: "Never have your yet commanding respect, he was the image Of course, Stanford was often a topic of picture taken with a drink in your hand." of Edwardian sartorial splendor. Professor conversation, and the only time I think I With this observation firmly and clearly de­ Barclay was a true gentleman, one of the saw Uncle Tom really become annoyed was livei:-ed, he wisely counseled something last of a fading breed. when there was discussion about Stanford's which seemed very obvious to him: "You Thomas Barclay was to the students of being on the edge of greatness. It was a must always drink the wine of the country, Stanford University more than simply an in­ phrase intended to raise money for Stan- and the wine of this country is bourbon." structor. He was never one to blindly impart 79--059 0-97 Vol. 140 (Pt. 12) 40 17758 EXTENSIONS OF REMARKS July 22, 1994 his knowledge to an audience of anonymous alumni were coming in two weeks and that a Yet, if this act alone is not enough to thwart faces. Instead, Professor Barclay was a men­ pile of trash in the inner quad should be re­ this notion, how many more corpses will it tor in the richest sense of the word. He en­ moved, or urging that the expenditures on take until Castro's allies are convinced that his gaged each student individually and chal­ the medical school were shortchanging un­ lenged us to evaluate, to be critical, and to dergraduate education, or trying to get the stranglehold on Cuba must end? As freedom form well-reasoned opinions of our own. provost-an engineer- to require more lib­ loving Americans, we. cannot allow these lives It has been said that a teacher affects eter­ eral arts for undergraduate engineering ma­ to have been lost in vain. We must force the nity. With Professor Barclay, this is cer­ jors, he was keeping his lectures up to date world to confront the gross violation of human tainly the case. I feel extremely fortunate to by reading the books in his great personal li­ rights and outright murder in Cuba. have studied under his guidance. His influ­ brary on American politics. ence on me and on every student he taught His students respected him not only be­ was powerful and lasting. He will be sorely cause he was a friend but because he was a TRIBUTE TO DR. LEROY CHIAO missed. professional. He integrated constitutional law, American history, and political science. REMARKS OF STEPHEN HORN, MEMBER OF He took us through the processes and excite­ HON. BILL BAKER CONGRESS ment of a campaign. He actually liked poli­ OF CALIFORNIA " A STUDENT' S PERSPECTIVE ON THOMAS SWAIN tics and had practicing politicians to the IN THE HOUSE OF REPRESENTATIVES class to share their knowledge and discuss BARCLAY' ' Friday, July 22, 1994 There are so many memories of Thomas their problems. He never imposed his politi­ Swain Barclay over four decades of knowing cal views on his students. Mr. BAKER of California. Mr. Speaker, I rise him: first as an undergraduate in political When Professor Barclay retired in 1957, his on the week of the 25th anniversary of the science 1, American Government, fall 1950. retirement celebration was a mock political Apollo 11 Mission, when man first walked on He took an interest in those of us who were convention. He was nominated for the office the moon, to recognize one of my constitu­ of President of the United States by Stan­ in student government and who also cared ents, Dr. Leroy Chiao. For over 2 weeks, Dr. about national issues. His course in political ford president J.E. Wallace Sterling. He was overwhelmingly elected! A Thomas S. Bar­ Chiao has been living out his childhood dream parties coincided with the 1952 Presidential of being an astronaut. campaign. He made the study of politics and clay fund to aid Stanford undergraduates power exciting. No wonder five of his stu­ was established at that time. On July 8, 1994, Dr. Chiao lifted off in the dents became United States Senators and Tom Barclay loved Stanford. He fondly re­ space shuttle Columbia, serving as its mission several became Members of the House of called Missouri. He cherished the Stanford specialist. Columbia is scheduled to touch Representatives. · chapter of Phi Beta Kappa for which he down tomorrow, July 23, 1994, at the Kennedy In 1953, in political science 400, a graduate served as its long-time secretary. But most Space Center. of all he valued his circle of past students seminar on methodology, Professor Barclay's Dr. Chiao and I share the same hometown, historic opening words to the group of ap­ who shared the common bond of devotion and respect for a great teacher and a true Danville, CA. He is a graduate of Monte Vista prentice professionals was: " Grasp life by the High School in Danville and received a S.S. in throat rather than by the tail." friend. He also urged us: "Don't praise or condemn chemical engineering from the University of theories of institutions: understand them." California at Berkeley. He earned his masters We all saw in TSB a friend, a mentor, a CUBA'S BRUTALITY and doctoral degrees in chemical engineering great teacher, and the epitome of a gen­ from the University of California at Santa Bar­ tleman, whether we were political science HON. PETER DEUTSCH bara and now works as a chemical engineer majors, pre-med-or even engineers. He OF FLORIDA at the Lawrence Livermore National Labora­ cared about us and what we did. tory. He cared about relationships and families. IN THE HOUSE OF REPRESENTATIVES As the first full Chinese-American NASA as­ Given his amazing memory for maiden Friday, July 22, 1994 names and who was who when and where, I tronaut, Dr. Chiao is running the shuttle's often thought that he might become a pre­ Mr. DEUTSCH. Mr. Speaker, on July 13, space systems while in flight and is participat­ viously untapped source for the great collec­ 1994, Fidel Castro's henchmen deliberately ing in nearly 80 different biological and mate­ tion on genealogy of the Church of Latter and cruelly sank the tugboat of 72 fleeing refu­ rials-science experiments with other top sci­ Day Saints in Salt Lake City. gees, causing the death and disappearance of entists from around the world. He is also one In between the seriousness of a lecture I approximately 40. Twenty of those sent to of two astronauts on board trained to perform recall him saying: their watery graves were young children. space walks outside the shuttle and will do so 1. " Being a Democrat or a Republican is The episode is one that has become all too the most casual thing in the world." if needed. Dr. Chiao trained for this flight for 2. "Political parties are like football familiar to those who monitor the plight of indi­ 21 months, but has been preparing to be an games- the teams have the same rules, just viduals fleeing Cuba's brutality. The group of astronaut for a lifetime. different colored sweaters." 72 freedom seekers hopped aboard a tugboat I commend Dr. Chiao for his dedication to 3. Recalling that President Eisenhower ap­ with the ambition of reaching freedom and space exploration and the world of science, propriated the " 100% of farm parity issue" safety. Once 7 miles offshore, the refugees and I look forward to meeting with him upon from the Democrats in 1952, TSB summed it were barraged by three Cuban tug boats his return to Earth. up: "You find your opponent in swimming which rammed their ship attempting to sink it. and steal his clothes." His contributions have helped the United 4. " Roosevelt talked 'prettier' about civil Castro's men then turned powerful water States maintain its role as the world's leader rights, but Truman tried 'to do' something hoses on the refugees instantly clearing some in science and technology, and instill a great about them." off the decks. Hoping that the presence of sense of pride in all Americans. His lectures were sprinkled with the wis­ children would deter Castro;s men, the refu­ dom and humor of some of the great political gees pointed to the children on board only to scientists of his era. As a Columbia doctor­ have them knocked from their arms with the THE ALEXIS DE TOCQUEVILLE IN­ ate, he was particularly influenced by the force of the water. STITUTION IS A VALUABLE works of Charles A. Beard, one of that insti­ Nearly as tragic as the massive loss of SOURCE OF INFORMATION ON tution's great teacher-scholars. In his lOOth ENVIRONMENTAL RISK year, I asked TSB to remind me of a Beard human life is the silence that has proceeded quote for a speech. Without a moment's this brutal act. The survivors have spoken out, pause, he rattled it off as he had 40 years be­ but the world has largely ignored them. Sadly, HON. DICK ZIMMER fore. this is only one of many acts that Cubans OF NEW JERSEY I recall his favorite story about Beard have come to expect from the maximum lead­ IN THE HOUSE OF REPRESENTATIVES being a gadfly to Columbia's imperious presi­ er, an inhuman dictator that makes a common dent Nicholas Murray Butler. After one of practice of murder. Friday, July 22, 1994 Beard's many books was published, a faculty Unfortunately, there are those who continue Mr. ZIMMER. Mr. Speaker, I would like to member asked President Butler, " Have you seen Beard's last book?" To which President to embrace the Castro regime while conven­ bring to the attention of my colleagues the out­ Butler replied, "I hope so!" as he walked on. iently overlooking these ruthless acts. They standing policy research efforts by the Alexis When TSB was not writing notes to Stan­ perpetuate this romantic notion of a char­ de Tocqueville Institution in building intellec­ ford presidents reminding them that the ismatic leader who descended from the hills. tual support for enhanced cost-benefit analysis July 22, 1994 EXTENSIONS OF REMARKS 17759 and risk assessment for environmental deci­ D-Kan., have introduced the Environmental activity B. If the costs or political realities sions. All too often, billions of dollars are wast­ Risk Reduction Act. This bill would ensure dictate that we should control B before A ed on environmental problems that are not that the billions spent by the American peo­ then great. really dangerous, leaving little for others that ple for environmental protection is better Today, the Clinton administration and targeted at reducing the most serious and many environmentalists have vehemently pose far more serious human and ecological probable risks. opposed measures to expand the use of cost­ risks. The Alexis de Tocqueville Institution has The Moynihan-Zimmer bill is designed to benefit tests and risk assessments for envi­ undertaken an aggressive public information sharpen the public debate over risk assess­ ronmental regulations and programs; they campaign to build support for cost-benefit and ments and require the Environmental Pro­ argue that such requirements are " unreason­ risk analysis initiatives that would focus envi­ tection agency to set risk reduction prior­ able" and would add unnecessary costs for ronmental regulation on the most serious i ties based on sound scientific analyses. the EPA. But what about the " unnecessary" risks. Specifically, the bill would create two ex­ and " unreasonable" costs imposed by envi­ The Environmental Risk Reduction Act, pert commissions that would provide the ronmental regulatory agencies on state and EPA with advice on ranking relative risks local governments, small business entre­ which I have introduced with Representative and on estimating the quantitative costs and preneurs, consumers, landowners? JIM SLATTERY in the House and which Senator benefits of reducing risks to human health The issue of risk assessment and cost bene­ DANIEL PATRICK MOYNIHAN has introduced in and natural resources. The bill also creates a fit analysis has built up a tremendous head the Senate, would ensure that policymakers Risk Reduction Research Program that of political steam on Capital Hill. Last April, and the public are aware of the true dangers would improve the data, methodology and an amendment proposed by Senator J. Ben­ posed by health and environmental risks, and accuracy of the government's risk assess­ nett Johnston, D-La., implementing risk as­ the costs and benefits of reducing such risks. ments. sessment and cost-benefit analysis into the policy-making process at EPA passed 9&-3 in Only in this way can we rationalize environ­ Every two years, the EPA administrator would be required to submit a report to Con­ the Senate when it was offered to the EPA mental decisions and reduce the burden of en­ gress-based on the new research findings cabinet bill. Sen. Johnston plans to offer his vironmental regulations on businesses, State and recommendations of the risk assessment amendment again during the forthcoming and local governments and individual citizens. advisory panels-that would prioritize U.S. Senate debate over legislation to reau­ Clearly there has been a dramatic shift in health, safety and ecological risks, estimate thorize the Safe Drinking Water Act. In ad­ the congressional debate over environmental the costs and benefits of reducing these risks dition, Sens. Moynihan, Joe Lieberman, D­ questions toward requiring more stringent and identify the public awareness of likeli­ Conn. , and Harry Reid, D-Nev., Plan to ad­ cost-benefit analysis and risk assessments. hood, seriousness, magnitude and vance a version of Sen. Moynihan's Environ­ mental Risk Reduction bill. The Senate has twice passed Senator J. BEN­ irreversibility of each risk. Ensuring that the general public is aware Politicians on both sides of the aisle are NETT JOHNSTON'S cost-benefit amendment by of the relative risks they face is crucial to responding to the public's desire to rational­ large bipartisan majorities. The Senate's ver­ setting environmental priorities. The 1990 ize the government's environmental deci­ sion of the Safe Drinking Water Act would re­ Reducing Risk report by the EPA 's science sions. The Environmental Risk Reduction quire more comprehensive risk assessments advisory board states the " relative risk data Act is a workable, bipartisan approach that before new regulatory requirements are im­ and risk assessment techniques should in­ would help both the environment and society posed on State and local governments. Here form (the public) judgment as much as pos­ by setting priorities for environmental prob­ sible." lems and lessening excessive environmental in the House, there has been a similar up­ regulatory burdens. surge of support for risk assessment and cost­ For example, if the public knew that an av­ erage-sized plate of shrimp contains trace ar­ benefit analysis. In my view, the de senic levels of 30 parts per billion, would the Tocqueville Institution's writings have played a people choose to continue paying for a costly TRIBUTE TO ALVIN UNGERLEIDER major role in educating Members, the press EPA water quality rule limiting arsenic to and the general public about the need to ra­ no more than two to three parts per billion? HON. TOM I.ANTOS tionalize environmental policy and reduce ex­ Similarly, would the public agree with some OF CALIFORNIA environmentalist's hope of banning the com­ cessive regulatory costs. IN THE HOUSE OF REPRESENTATIVES I would ask that an article by Cesar V. mercial use of all pesticides (thereby raising Conda, executive director of the Alexis de prices of fruits and vegetables) if they knew Friday, July 22, 1994 that there are more known carcinogens Tocqueville Institution concerning the Moy­ consumed by drinking one cup of coffee than Mr. LANTOS. Mr. Speaker, this year marks nihan-Zimmer-Slattery Environmental Risk Re­ the amount of potentially carcinogenic pes­ the 50th anniversary of the greatest undertak­ duction Act be entered into the RECORD for re­ ticide residues consumed by the average per­ ing in the history of war: the D-day landing on view by my colleagues. son in a year? the beaches of Normandy. I rise today to [From the Journal of Commerce, May 5, 1994) All too often, EPA selectively uses risk as­ honor one of the soldiers of democracy who TIME TO RATIONALI ZE EPA RULES sessments to dictate environmental policy to went ashore at Omaha Beach on the morning the public instead of to inform them of their (By Cesar V. Conda) of June 6, 1944. choices. For example, the EPA's recent find­ Alvin Ungerleider was a second lieutenant, The cost of complying with environmental ing that " environmental tobacco smoke"-or just 22 years old, when he led a platoon of 50 regulation has exploded- currently $150 bil­ second-hand smoke-is dangerous to human lion and projected to rise to $185 billion by health is based on a threshold of risk assess­ men onto Omaha Beach and up the gully the the year 2000. Now more than ever, the ment two times lower than what the agency Allies had named E-1 . When their assault was science behind environmental decisions is normally uses for other substances. All too slowed by German mines, Lieutenant being questioned. often, politics get in the way of sound Ungerleider led his men of Company L, 3d The New York Times summed it up best: science. Battalion of the 11 Sth Regiment, 29th Division, " In the last 15 years, environmental policy Upgrading the scientific methods behind through the minefields to join the battle to free has too often evolved largely in reaction to EPA 's risk assessments and explaining to the town of St. Laurent-sur-Mer. popular panics, not in response to sound sci­ the public the health risks of certain sub­ For his valor at Normandy, Lieutenant entific analysis of which environmental haz­ stances or activities relative to the risks Ungerleider was awarded the Bronze Star. ards present the greatest risks. As a result, they normally face in their everyday lives billions of dollars are wasted each year in would result in more rational-and perhaps Later that summer, he would receive his sec­ battling problems that are no longer consid­ less costly-environmental decisions. For in­ ond Bronze Star while fighting to liberate the ered especially dangerous, leaving little stance, the public might decide that the mil­ French city of Brest. money for others that cause far more harm." lions spent by local governments to monitor Al Ungerleider was wounded twice during As Sen. Daniel P . Moynihan, Democrat of trace levels of drinking water contaminants the first month of the Allied invasion; yet he New York, put it, "Truth be told, I suspect that pose no serious health risk would be fought on through France and Germany. when that environmental decisions have been better spent on building new roads, improv­ the German Army fell, he brought freedom to based more on feelings than on facts." ing local schools or hiring more police. the inmates of a Nazi death camp he liberated In response to the explosion in the cost of Right now, however, the people aren't environmental regulation, and the govern­ aware that they have such a choice. "Rel­ near Nordhausen. ment's practice of spending enormous ative risk ranking and cost benefit analyses Al Ungerleider had been raised in the bitter amounts of money to reduce small risks in­ are tools," said Sen. Moynihan. " Crude tools realities of the Depression, then was drafted stead of big risks, Sen. Moynihan, Rep. Rich­ today, yes, but perhaps sufficient in some from his hometown of Carbondale, PA. At first ard Zimmer, R-N.J., and Rep. Jim Slattery, cases to rank activity A as more risky than a citizen soldier, Al Ungerleider then stayed on 17760 EXTENSIONS OF REMARKS July 22, 1994 in the Army for 36 years. He served first as an REDEEM US WITH A CROSS OF GOLD U.S. high-powered money, and fuel the kind Infantry officer, later in Armor. (By Lewis Lehrman and John Mueller) of growth the chart reflects. He fought again in both Korea and Vietnam. Gold itself stabilizes. Under an inter­ Fifty years ago this month, the Allied na­ national gold standard, the supply of gold In Vietnam, while commanding the Bien Hoa tions met at Bretton Woods, N.H., to create coins or bullion responds to the level of Tactical Unit, he spent his free time working the postwar monetary system. Bretton prices generally. For an individual country, with a Vietnamese orphanage. Woods re-established international convert­ a rise or fall in prices relative to other gold­ Throughout his military career, he served ibility of the major currencies into gold or standard countries leads to an outflow or in­ not only his country, but his religion. In 1955, gold-convertible dollars. The system lasted flow of gold money. A world-wide rise in until Aug. 15, 1971, when President Nixon wages and prices discouraged gold produc­ while stationed at Monterey, CA, he started its suspended gold payments to foreign govern­ first Sunday School for Jewish children. During tion (it raised mining costs), while a fall in ments. prices stimulated gold production. So, absent his military career, he was dedicated to Jewish Measured against the period since 1971 , sharp expansions or contractions of credit, life wherever he lived. Bretton Woods seems almost a golden age. the price level varied within narrow limits. He rose to the rank of colonel and retired in Consumer prices more than doubled between Gold convertibility also regulates the sup­ 1978 after commanding the Aberdeen Proving 1944 and 1971, an average annual rise of 3.2%; ply of paper money. But swings in credit per­ Grounds in Maryland. During his military serv­ but after the Korean War the average rise mit sharper price fluctuations than would ice, he was the recipient of three Legions of was 2.3%. By contrast, since 1971 prices have otherwise have been possible. Without con­ multiplied 3.5 times, an average annual rise Merit. vertibility, this constraint is removed alto­ of6%. gether. A detailed analysis shows that all At Aberdeen, he received awards from both In broader historical perspective, however, major inflations and deflations, under every the Secretary of the Army and the NAACP for Bretton Woods is a distant second best. The U.S. monetary standard, have involved cred­ establishing Equal Opportunity programs. record of price stability under the classical it. They have been driven by variation in the On June 6, 1994, Al Ungerleider was se­ gold standard, from 1834 to 1862 and 1879 to " fiduciary" part of the World Dollar Base, lected from among the thousands of D-day 1913, is without parallel. U.S. consumer the part based on credit rather than precious veterans to escort President Clinton at the prices varied in a 26% range in those 62 metals. American Cemetery at Colleville. Colonel years, and stood at almost exactly the same In fact, the Bretton Woods system con­ level at the beginning and end of both peri­ tained in the seeds of its own destruction. Ungerleider walked alongside the President on ods. Average inflation was zero, while the av­ Like the interwar gold-exchange standard, the 50th anniversary of D-day. They laid a erage annual variation of prices in either di­ Bretton Woods differed from the gold stand­ wreath to honor all who fought and died in the rection was 2.2%. From 1879 to 1913, when the ard in one essential respect: the use of for­ battle to liberate Europe. As President Clinton U.S. and most other major nations shared eign exchange along with gold as inter­ said that day, "When they were young, these the gold standard, U.S. consumer prices national reserves. And this turned out to be men saved the world." ranged only 17 % in 34 years. Average infla­ its fatal flaw. Steady expansion of dollar re­ A leader of the 29th Division Association, tion was again zero, and the average annual serves contributed to rising prices, and ris­ Alvin Ungerleider believes that it is his respon­ variation of prices, up or down, was 1.3%. ing prices steadily diminished the supply of This stands in sharp contrast to the average new gold. In 1960, Jacques Rueff and Robert sibility to teach us all the lessons of D-day, price gyrations during and after the Civil Triffin, economist-statesmen, predicted the that nothing worth having is given freely. He War (6.2%), the period from World War I to eventual run on the dollar. This would lead hopes his generation, and particularly those Bretton Woods (5.6%) and the period since to either deflation or suspension of gold pay­ who fought to liberate France and the world, Bretton Woods (6%). ments and continued inflation. has taught young Americans that when the AFTER THE BREAKDOWN The world had stumbled into deflation under similar circumstances in the 1930s, choice is between fighting for freedom or What accounts for the difference? The level abandoning freedom, we must fight. with foreign exchange playing a key role. of consumer prices has always mirrored a From negligible levels in 1913, official ster­ measure we have named the World Dollar ling and dollar reserves mushroomed to more Base-the sum of "high-powered money" in­ BRETTON WOODS REMEMBERED than 60% of the value of world gold reserves cluding U.S. currency, bank reserves and for­ in 1928. From 1929 to 1932, during runs first eign official dollar reserves. In our chart, the on sterling and then on the dollar, almost all HON. PHILIP M. CRANE World Dollar Base is shown relative to these foreign-exchange reserves were liq­ growth (for our calculations we used an an­ OF ILLINOIS uidated, sucking prices down toward their nual trend of 1.9% growth per capita, the av­ prewar levels. A surge of gold money, which IN THE HOUSE OF REPRESENTATIVES erage growth rate of real income as far back accelerated to a flood after the dollar's de­ Friday, July 22, 1994 as we have records). The supply of dollars ex­ valuation in 1934, was what stopped the de­ ploded after the breakdown of Bretton flation. Mr. CRANE. Mr. Speaker, 50 years ago this Woods. Yet in 1971, the U.S. chose to suspend dol­ past month, a very important agreement was Let's take a moment to review the reasons lar-gold convertibility, and the world moved made at Bratton Woods that stabilized the for this change. The fluctuations in the onto today's loose " dollar standard." This U.S. economy for decades. This agreement chart reflect changes in the standards by was not merely throwing the baby out with was the convertibility of most major currencies which money is issued. High-powered money the bathwater-it was a case of throwing out around the world into a gold standard. Unfor­ is simply the standard (gold or paper) money the baby and keeping the bathwater. Gold tunately in 1971, President Richard Nixon sus­ in circulation, plus any official monies con­ was always the element of price stability and vertible into standard money. Before 1914, pended gold payments to foreign governments foreign-exchange reserves the element of in­ high-powered money meant metal and paper stability in the international monetary sys­ ending an era of economic stability. currency held by banks and the public. In tem. We kept foreign-exchange reserves and From 1944 through 1971, consumer prices 1914, the Federal Reserve system added a new got rid of gold. only increased an average annual rate of 3.2 form of high-powered money-bank deposits A stable system could have been re-estab­ percent, the lowest since World War I. Since at the Fed, which substitute for vault cash. lished-and still could be-if the major coun­ the destruction of the gold standard by Presi­ Then, after World War I, foreign central tries restored a gold standard without for­ dent Nixon, the average annual consumer banks created a third category of U.S. high­ eign-exchange reserves. This would be, basi­ price increase has been 6 percent. This un­ powered money when they began to accept cally, Bretton Woods minus dollar reserves. foreign exchange- chiefly dollar or sterling reasonable rate has slowed domestic produc­ Of course, the gold value of convertible cur­ assets-in lieu of gold. rencies must be properly chosen to avoid any tion and international trade. Returning to the This " gold-exchange standard" was formal­ deflation. The proposal was in fact made in gold standard will create new international ized in the Bretton Woods agreement. Since the 1920s and 1960s but rejected. The experts trade ventures with the former Soviet Union 1971, official reserves have mostly been in had other ideas. Yet over the years, all the and South Africa. foreign exchange. It might seem that this arguments against returning to gold have I urge my fellow Members of Congress to would not affect the high-powered money of withered and dropped like leaves in autumn. read the following article. I would like to sub­ a reserve-currency country like the U.S. For­ It used to be claimed that inflation is nec­ mit the following article written by Lewis eign central banks typically .convert their essary to keep unemployment down, but dollar holdings in U.S. Treasury securities. we've learned from bitter experience that Lehrman and John Mueller. I believe to sta­ But this is the whole point-just like bank this simply isn't true. It was said that the bilize our country's economy once again, the deposits at the Federal Reserve, these dollar gold standard caused deflation, but as we dollar must again be associated with the gold reserves substitute for official payment in have seen, all the major inflations and defla­ standard. standard money. They behave as a form of tions were due to paper, not gold. It was said

-.L ' • - • - .__ • - • • \. ·~ • • --.-" July 22, 1994 EXTENSIONS OF REMARKS 17761 that adjustments under floating exchange of 4% to 5% by mid-1996. The rise of inflation physics and advanced math, gives the stu­ rates would be smooth and gradual, but this should be associated with a slowdown of real dents a comprehensive mathematical and hasn't happened either. economic growth, from almost 4% over the technical foundation for exploring their own in­ There are also the celebrated predictions past year to near zero in 1996. This may not, dividual interests in electronics. that if gold were delinked from money, its by itself, do in Mr. Clinton, but it will make price would plunge to $6 an ounce from $35--­ the 1996 election interesting. Both of these teachers have corr.mitted proving that paper money " supported" gold. Perhaps one day even politicians, who themselves to professional advancement pro­ Yet the dollar now trades for less than a made the wrong choice in 1971, will get fed grams. Ms. Fournier proposes to get her cer­ tenth of its former gold value. Finally, it up. They will reject the " cross of paper" and tification in advanced placement calculus and was argued that a return to gold was un­ return us to the only money that has spend 5 days at the Space Academy for Edu­ thinkable because it would benefit the So­ worked: gold. viet Union and South Africa; today, of cators. Mr. Veith will participate in NASA's course, we want to integrate both countries Capital Area Space Orientation Program as into the world trading system. It has been HONORING TEACHERS well as take four graduate courses at Barry said- including on this page- that we could University to begin work on a master's degree manage the current system just fine by HON. PETER DEUTSCH in computer science. targeting the money supply or commodity The grant received, worth $12,000, comes prices. But the quantity of foreign-dollar re­ OF FLORIDA pool of $6.5 million funded entirely by serves cannot be targeted and commodity IN THE HOUSE OF REPRESENTATIVES from a prices respond after a good two years-too Friday, July 22, 1994 GTE. The money is to be spent on the pro­ posal submitted, $5,000 for the professional late. There is no argument left against gold Mr. DEUTSCH. Mr. Speaker, it is my privi­ except " you can't turn back the clock." improvement of the teachers, and $7 ,000 for Credit has continued to be the problem lege to rise today in order to congratulate two student enrichment programs. members of my constituency for their efforts here. Since the Civil War, nearly all of the Claudia Fournier has a bachelor of science credit behind the World Dollar Base has gone toward improving the quality of education in to the U.S. Treasury. The nontechnical an­ America. In our ongoing quest to lower the degree in math from the University of Alaska. swer as to why prices have risen nearly four­ level of illiteracy, eliminate violence and drugs Recently she has completed an M.Ed. in edu­ fold since 1971 is that the (mutated) financial from the lives of our youth, and increase the cational leadership. She has taught at schools system has absorbed (monetized) over $2 tril­ number of teens graduating from high school, in Ohio, Virginia, and Florida before coming to lion in Treasury debt since then. This is excellence in education is essential. The ef­ Chaminade-Madonna in 1992. Outside of what has permitted ever larger federal defi­ teaching, she was worked for the Army Corps forts of teachers both inside and outside the cits. of Engineers and B.F. Goodrich. classroom are in intricate part of these efforts. POLITICAL DANGERS For these reasons it is my distinguished pleas­ Herman Veith has a bachelor of science Some think this arrangement is just fine­ ure to commend the teaching team of Claudia and 30 graduate credits in electrical engineer­ financial and commodity speculators say so ing. He registered as a professional engineer all the time. To judge by President Clinton's A. Fournier and Herman E. Veith, Jr. from first appointments to the Fed, he, too, is par­ Chaminade-Madonna College Preparatory in in Pennsylvania, with extensive industrial ex­ tial to inflation. Yet, like President Bush, Hollywood, FL, which was recently awarded perience before beginning his teaching career. Mr. Clinton is about to learn the political one of 60 GTE Growth Initiatives for Teachers He has been at Chaminade-Madonna for the dangers of monetary instability. (GIFT) grants for their combined efforts in de­ past 4 years. Back in 1988, we correctly predicted that veloping a proposal involving the subjects of The support of educational advancement U.S. consumer price inflation, then 4%, mathematics and science for both the enrich­ programs such as this is essential in creating would peak between 6% and 7% in mid-1990, followed by a mild recession. That combina­ ment of their students and professional ad­ a strong and secure future for American edu­ tion was enough to cost Mr. Bush re-elec­ vancement of the teachers. cation. The efforts of both the recipients and tion. Based on a similar analysis, we now The student enrichment portion of the pro­ GTE should to be applauded, and their exam­ predict a rise in consumer price inflation posal developed by Ms. Fournier and Mr. ple followed in order to improve our edu­ from 2.3% over the past 12 months to a peak Veith, which will include 150 students studying cational standards.