1939 CONGRESSIONAL. RECORD-HOUSE 2011 The PRESIDING OFFICER. Without objection, the Pres­ Lonnie A. B. Leslie, Rtisseiivilie. ident will be notified. Vernon V. Goslee, Skidmore. POSTMASTERS NEW MEXICO The Chief Clerk proceeded to read sundry nominations of Enrique V. Garcia, Mesa Rica. postmasters. Rosalie E. Branchr Mora. The PRESIDING OFFICER. Without objection, at the OHIO request of the present occupant of the chair, the nominations William A. Ellsworth, Hudson. of postmasters will be confirmed en bloc~ PENNSYLVANIA IN Tini ARMY John C. Amig, Lewistown. The Chief Cferk proceeded to read sundry nominations in the Army. Mr. SHEPPARD. I ask unanimous consent that the Army HOUSE OF REPRESENTATIVES nominations be confirmed en bloc. The PRESIDING OFFICER. Without objection, the pom­ TUESDAY,. FEBRUAR.Y 28, 1939 inations in the Army are confirmed en bloc. The House met at 12. o'clock noon. That completes the calendar. The Chaplain, Rev. James Shera Montgomery, D. D., offered RECESS the following prayer: Mr. BARKLEY. As in legislative session, I move that the Heavenly Father, Thou art our refuge;' hidden in the Senate take a recess until 12 o'clock noon tomorrow. pavilion of the Most High, Thou wilt never leave or forsake The motion was agreed to; and (at 4 orclock and 47 min­ us. Lest there be confusion and humiliating memories, we utes p.m.) the Senate took a recess until tomorrow, Wednes­ pray Thee to give depth to feelings,. convert opinions into day, March 1, 1939, at 12 o'clock meridian. convictions, sentiments into principles, and let our failures be in the melting shadows of the past. In the bustle of com­ CONFIRMATIONS merce, in the conflict of affairs, and in the heated ways of Executive nominations confirmed by the Senate February 28 public life, grant that our people may fear God and be saved (legislative day ot February 27), 1939 from the blind allegiance to external things. Oh, make the weak strong and keep the strong from pride and dpmination; UNITED STATES CIRCUIT COURT OF APPEALS it is before Thee that the rights oi the lowliest are most Francis Biddle to be a judge of the United States Circuit respected. We pray that Thy name may be honored and Court of Appeals for the Third Circuit. glorified in the marveious strength of our country. Let Thy APPOINTMENTS IN THE NATIONAL GUARD OF THE UNITED STATES fatherly care and protection be with our President, our Edgar Carl Erickson to be brigadier general, Adjutant Gen­ Speaker, and the Congress. Through Jesus Christ our Lord. eral's Department, National Guard of the United States~ Amen. Benjamin Mitchell Smith to be brigadier general, Adjutant The Journal of the proceedings of yesterday was read and General's Department, National Guard of the United States. approved. - APPOINTMENTS IN THE REGULAR ARMY MESSAGE FROM .THE SENATE Claud Dale La Fors to be second lieutenant, Medical Ad­ . A message from the Senate, by Mr. Frazier, its legislative ministrative Corps. clerk, announced that the Senate had passed bills of the Bernard Kern to be second lieutenant, Medical Administra­ following titles, in which the concurrence of the .House is tive Corps. requested: Ennis Dallas Sandberg to be second lieutenant, Medfcal S.10. An act for the relief of the Fred Harvey Transporta- Administrative Corps. tion Department; . James Thomas Richards to be second fieutenant, Medical S.11. An act for the relief of Hubert H. Clark and Dr. Administrative Corps. W. C. Copeland; APPOINTMENTS, BY TRANSFER, IN THE REGULAR ARMY S. 18. An act authorizing payment to ·the San Carlos Maj. Owen Meredith Marshburn to Quartermaster Corps. Apache Indians for the lands ceded by them in the agree­ First Lt. Ferdinand Marion Humphries to Ordnance De­ ment of February 25, 1896, ratified by the act of June 10, partment. 1896, and reopening such lands to mineral entry; First Lt. Jermain Ferdinand Rodenhauser to Ordnance S. 539. An act for the relief of Charles E~ Naghel, special :pepartment. disbursing agent, Department of the Interior, and Kam­ First Lt. James Donald Sams, to Ordnance Department. meyer & Medack, contractors, from disallowance of charges for addtttonal work under a construction contract; PROMOTIONS IN THE REGULAR ARMY S. 643. An act authorizing the payment of necessary ex­ Carlton Culley Starkes to be lieutenant colonel, Medical penses incurred by certain .Indians allotted on the Quinaielt Corps. Reservation, State of Washington; Dean McLaughlin Walker to be major, Medical Corps. S. 754. An act for the relief of J. G. Mayfield; William Congdon Harrison to be captain, Medical Corps. S. 794. An act relating to banking, banks. and trust com­ Joseph Rich to be captain, Medical Corps. panies in the District of Columbia, and for other purposes; Francis Fred Viglione to be captain, Medical Corps. S. 875. An act for the relief of Andrew J. Crockett and George Henry Timke, Jr., to be captain, Dental Corps. Walter Crockett; Clyde Danforth oatman, Jr., to be captain, Dental Corps. S. 876. An act to authorize the purchase of certain lands John Kenneth Allen, to be captain, Veterinary Corps. for the Apache Tribe of the Mescalero Reservation, N.Mex.; Alva Jennings Brasted to be chaplain with the rank of S. 877. An act to add certain public-domain land in Mon­ colonel. tana to the Rocky Boy Indian Reservation; Herbert Adron Rinard to be. chaplain with the rank of S. 884. An act for the relief of disbursing officers and other lieutenant colonel. officers and employees of the United States for disallowances POSTMASTERS and charges on account of airplane travel; INDIANA S. 911. An act for the relief of Roscoe C. Prescott, Howard Blanche L. Anglin, Leesburg. Joslyn, Arthur E. Tuttle, and Robert J. Toulouse; S. 917. An act authorizing the Library of Congress to ac­ MISSOURL quire, by purchase or otherwise, the whole or any part of Hugh M. Price, La Monte. the papers of Charles Cotesworth Pinckney and Thomas Jess H. Easley, Lebanon. Pinckney, including therewith a group of documents relating 2012 CONGRESSIONAL RECORD-HOUSE _FEBRUARY 28 to the Constitutional Convention of 1787, now in the posses­ their endeavors to smuggle narcotics and other illegal im­ sion of Harry Stone, of New York City; portations into the country. s. 981. An act for expenditure of funds for cooperation The authorized force of employees over whom he has juris­ with the public-school board at Wolf Point, Mont., for com­ diction consists of 1,585, which are divided into the following pleting the construction, extension, equipment, and improve­ groups: ment of a public-school building to be available to Indian Station inspectors and inspectors------513 children of the Fort Peck Indian Reservation, Mont.; Staff officers------16 S. 1036. An act to authorize the purchase of certain lands Guards' force------583 Laborers------~------364 adjacent to the Turtle Mountain Indian Agency in the State Supervisory officers, clerks, etc------109 of North Dakota; S.1093. An act for the relief of Mike Chetkovich; With this force under his supervision the surveyor boards S. 1104. An act to provide for conveying to the United and takes custody of all vessels and cargoes from foreign States the land, buildings, and improvements comprising the ports, with certification of manifests, crew lists, consular Choctaw and Chickasaw Sanatorium and General Hospital; certificates, and so forth; the discharge and delivery of all S. 1174. An act for the relief of Alex St. Louis and Dr. cargo from foreign ports or received in bond, with complete J.P. Lake; accounting therefor; the discharge, examination, and delivery S.1253. An act for the relief of John B. Dow; of all passengers' baggage f;rom foreign ports or arriving in · S.1476. An act to autho.rize an appropriation to pay non­ bond; the weighing, gaging, and measuring of imported mer­ Indian claimants whose claims have been extinguished under chandise and goods exported with benefit of drawback, and the act of June 7, 1924, but who have been found entitled to returns therefor which form the basis for final computation awards under said act as supplemented by the act of May of duties; the transfer to general-order warehouse of un­ 31, 1933; claimed merchandise and to seizure room of goods illegally S.1477. An act to repeal section 9 of the act of March 3, imported; the lading of goods shipped in bond or exported 1875 <18 Stat. L. 450), as amended; and with benefit of drawback and certifications of same; the S.1523. An act to authorize the payment of burial ex­ measuring of vessels for ascertainment of tonnage tax on penses and expenses in connection with last illness and death foreign vessels and for registry, enrollment, or license of of native employees who die while serving in offices abroad American vessels; the examination of steerage passengers' of executive departments of the United States Government. quarters under Passenger Act of 1882, as amended; the APPOINTMENT OF MEMBERS TO COMMITTEES searching of vessels for contraband and the sealing of ships' stores; the guard of vessels, piers, and other places to prevent Mr. CULLEN. Mr. Speaker, I offer a privileged resolu­ smuggling; aggressive campaigns to prevent and detect the tion, which I send to the Clerk's desk. illegal importation of merchandise and narcotics; the count­ The Clerk read as follows: ing of passengers on local steamers during the excursion House Resolution 108 season. Resolved, That the following-named Members be, and they are It is therefore quite obvious that with this small army of hereby, elected members of the standing committees of the House of Representatives, as follows: men under his jurisdiction a great deal of personal super­ World war Veterans' Legislation: Wilburn Cartwright, Oklahoma; vision is required of the surveyor. J. Hardin Peterson, Florida. The supervision differs somewhat from that exercised by Civil Service: John M. Coffee, Washington. Claims: Lansdale G. Sasscer, Maryland. the comptroller and appraiser, whose forces and activities Public Buildings and Grounds, Lansdale G. Sasscer, Maryland. are mainly concentrated under one roof, while those under the surveyor are spread over the extensive territory of the The re~olution was agreed to. port of New York. PERMISSION TO ADDRESS THE HOUSE The port of New York has a water frontage of 771 miles in Mr. FITZPATRICK. Mr. Speaker, I ask unanimous con­ length, of which 578 miles are in New York and 193 miles sent to proceed for 1 minute. in New Jersey. It requires 2 full business days, steaming · The SPEAKER. Is there objection to the request of the rapidly about the harbor, merely to view superficially the gentleman from New York? entire water front. It includes an area of 175 square miles. There was no objection. Although 58 percent of the total steamship passenger­ Mr. FITZPATRICK. Mr. Speaker, I ask unanimous con­ foreign-traffic of the United States is via the port of New sent to extend my own remarks and to include therein a York, this port accounts for approximately 94 percent of the statement of the duties of the surveyor of the port of New more difficult and complicated transoceanic passenger traffic. York and a copy of a letter written by Secretary Mor'genthau Officers serving under the supervision of the surveyor have to Mr. Foley. made innumerable seizures of undeclared articles and illegal The SPEAKER. Is there objection to the request of the importations. These cases illustrate the difficulties met by gentleman from New York? officers in the examination of passengers' baggage, supervi­ There was no objection. sion of the unloading of vessels, and the search of such vessels. Mr. FITZPATRICK. Mr. Speaker, I would like the Mem­ A school of instruction is maintained by the surveyor for the bers of the House who voted on my amendment yesterday to proper training of employees under his supervision and direc­ read the letter written by the Secretary of the Treasury, Mr. tion in the intricate duties of their position. M:orgenthau, to Mr. Harry T. Foley, surveyor of the port of The activities of the surveyor are very essential and impor­ New York, congratulating him on the efficient way he han­ tant for the protection of the revenue. Presidential ap­ dled that office, especially the Members on the Democratic pointees to this office are usually men of wide business expe­ side, who criticized the continuance of the office of the rience. It is submitted that such is an eminently wise policy, surveyor of the port of New York. I believe if they had had as the civil-service employee usually lacks such qualifications this letter before them yesterday they may have voted dif­ because of the restricted nature of his training and career. ferently on my amendment. The morale of any large organization depends largely upon The office of the surveyor of customs was established at the the quality of its leadership, and it is submitted that the in­ founding of the Federal Government. creased efficiency of the surveyor's office at New York is in no The duties and functions of the surveyor, as prescribed by small degree due to the time, effort, and example given by its existing customs laws and regulations, are substantially those head. In this connection the following congratulatory letter laid down by the Customs Organization Act of 1789. He is was forwarded to the present surveyor by the Secretary of the correctly designated the outdoor executive officer of the port, Treasury on September 14, 1936: concerned principally with the administration and enforce­ THE SECRETARY OF THE TREASURY, Washington, September 14, 1936. ment of the customs laws. His responsibilities have been DEAR Ma. FoLEY: I have had a report of the work done through greatly increased by the activities of the criminal element in your office on the piers over the week end ot the Labor Day holiday 1939 CONGRESSIONAL RECORD-HOUSE 2013 and I was most happy to know that the customs work went forward A discussion of the provisions of H. R. 3325 may be con­ expeditiously and smoothly during these difficult days. veniently divided into the provisions dealing with the extension I want to congratulate you, and through you the men who worked of the stabilization fund powers (sec. 1 of the bill} and the pro­ under your office at that time, upon the efficient way in which all Visions dealing with the extension of certain powers specified in performed the work assigned to them. paragraph (b) (2) of section 43 of the act of May 12, 1933, which Sincerely, principally involve (a) the power to alter the weight of the gold H. MORGENTHAU, Jr. dollar and (b) the unlimited coinage of silver. If it is agreeable to you and the other members of the committee, Mr. Chairman, I It is further submitted that the great volume of business at propose to take up the provisions of H. R. 3325 in that order. the port of New York, with its increasing problems of_law I. CONTINUATION OF THE STABILIZATION FUND POWERS enforcement, not only justify, but emphasize, the necessity of The stabilization fund of $2,000,000,000 was established by sec­ the subdivision of supervision of the large force by continua­ tion 10 of the Gold Reserve Act of 1934, which was enacted on tion of the office of surveyor. January 30, 1934. The $2,000,000,000 placed in the fund was ob­ tained from the increment accruing to the Treasury from the EXTENSION OF REMARKS decrease in the weight of the gold dollar and consequent increase Mr. MARTIN J. KENNEDY. Mr. Speaker, I ask unani­ in the value of the gold held by the United States. As originally mous consent to extend my own remarks in the .RECORD and provided, the stabilization fund had a life of 2 years, and the President was authorized to extend the period for 1 additional to include therein two short editorials, one from the New York year. This he did on January 10, 1936. In January 1937 Congress, Times and the other from the Washington Post of today. in an act similar to the bill now being considered by the com­ Mr. RICH. Mr. Speaker, reserving the right to object, I mittee, extended the life of the stabilization fund until June 30, 1939. The purpose of the legislation now before your committee am not so much interested in the editorials the gentleman is to extend the fund until January 15, 1941. · is proposing to put in the RECORD, but I want to call tlie During the 3 years immediately preceding the creation of the attention of the majority leader to the fact that newspaper fund more than 30 nations had departed from the gold standard editorials are going in the REcORD without objection of any and had adopted either floating currencies or exchange controls. Confronted with these monetary developments, Congress, fully kind on the part of the majority Members of this House or appreciating the need for a special fund, with ample reserves and those in authority. They permit the RECORD to be filled up adequate power to cope with this new trend in international mon­ with things that do not transpire or happen in the House of etary matters, created the stabilization fund. Representatives. Is the RECORD to be a record of things that Since the establishment of our stabilization fund other coun­ tries have abandoned the pre-1931 gold standard, until now every transpire all over this Nation or are you, Mr. Majority Leader, country except the United States and one other country impor­ going to have it a record of the things that transpire here in tant commercially has a currency which, in effect, is either a float­ Congress? I have tried to stop this in committee, but I am ing currency or is subject to exchange controls. unable to do it: So, if the people of this country want the Whereas before 1931 currencies fixed in terms of gold and stable in terms of exchange rates characterized most of the world mone­ RECORD to contain all newspaper articles and newspaper rec­ tary systeill\S there now prevail currencies with di:ffering nominal, ords, of course, you have the votes over there and can actual, and even bootleg rates, floating currencies, exchange con­ control it. · trols, and exchange clearing agreements. Formerly rigid mint parities and unrestricted gold movements ruled international cur­ Mr. RAYBURN. Reserving the right to object, Mr. rency relationships; now depen.Qence has to be placed chiefly upon Speaker, this is the same old speech that the gentleman from the day-to-day decisions of governments adapted to the contin­ Pennsylvania has made a dozen times in order to get in the ually shifting economic, political, and monetary conditions. · REcoRD, I presume; but I call his attention to the fact that The purpose of the fund is to stabilize the exchange- value of the dollar. . In carrying out this pw·pose the fund undertakes a he is a member of the Comniittee on Printing; and why dcies variety of operations. · he riot function? Sometimes it is called upon to prevent violent fluctuations in -Mr. RICH. I have tried to function, Mr. Majority Leader, exchange rates induced by acute political developments which but I am helpless. With the majority of the members being cause flights of capital from one country to another. Such, for example, was the situation created in the fall of last year, when as Democrats; I cannot do a thing with them. I would, if r a consequence of the Czechoslovakian crisis a large volume of funds could. You could, but you do not. Why not? · sought to leave Europe for the United States. The outflow of funds The SPEAKER. Is there objection to the request of the was so large that the amount of gold which it was necessary to ship from Europe to provide dollar balances was far greater than could gentleman from New York? be taken care of through normal commercial channels. If there There was no objection. had been no stabilization fund to cooperate with the other funds PERMISSION TO ADDRESS THE HOUSE the dollar exchange would have fluctuated so Violently as to dis­ rupt our trade. International monetary chaos might have ensued. Mr. COCHRAN. Mr. Speaker, I ask unanimous consent to The occasions which call for operations of the magnitude under­ proceed for 1 min~te. taken by our fund last fall. are, however, sporadic. Normally the stabilization fund is concerned with hour-to-hour and day-to-day . The SPEAKER. Is there objection to the request of the fluctuations in the dollar exchange rate. When the exchange mar­ gentleman from Missouri? kets are quiet and there are no unusual disturbances it is not There was no objection. necessary for the fund to take an active part in the market. At such times it operates in relatively small amounts and participates STABILIZATION FUND in a relatively small number of transactions each day and may Mr. COCHRAN. Mr. Speaker, the Secretary of the Treas­ even not enter the market at all. When, however, for one reason or another the operations in the ury made a very interesting statement ·before the Committee various exchange markets become speculative or panicky in.charac­ on Coinage, Weights, and Measures this morning, and at ter with abnormal fluctuations, then the stabilization fund steps the same time he released the balance sheet of the exchange into the market and becomes active in buying and selling gold and stabilization fund as of June 30, 1938, and December 31, foreign exchange for the purpose of minimizing fluctuations. During these operations it is frequently necessary for the sta­ 1938. bilization fund to acquire foreign currencies. The fund attempts I ask unanimous consent to place the statement and the to carry out all such transactions with a minimum of risk. In the balance sheet in the RECORD at this point. past we have been successful in a voiding risk of exchange loss The SPEAKER. Is there objection to the request of the through special reciprocal arrangements between cooperating treas­ uries under which foreign exchange is immediately convertible into gentleman from Missouri? gold at a price fixed each day. Incidentally, it should be pointed There was no objection. out that because we wish to avoid the possibility of an exchange The matter referred to follows: loss we frequently forego the possibility of an exchange profit. There are also occasions when the exchange rate between the STATEMENT OF SECRETARY MoRGENTHAU BEFORE THE COMMITTEE ON dollar and the currency of a country with small gold holdings is COINAGE, WEIGHTS, AND MEASURES OF THE HOUSE OF REPRESENTA• subjected to pressure because of unfavorable political or economic TIVES, TuESDAY, FEBRUARY 28, 1939 developments. The fund can be employed, and has occasionally Mr. Chairman, members of the committee, on January 19, ·1939, been employed, in such circumstances to help stabilize the dollar the President wrote to the President of the Senate and the Speaker exchange. · of the House of Representatives recommending the extension of For example, our arrangement with China was just such an oper­ the powers conferred by section· 10 of the Gold Reserve Act of ation. There was strong pressure against the dollar-yuan exchange, 1934 dealing With the stabilization fund and certain powers speci­ and China needed dollars in order to strengthen the dollar-yuan fied in the act of May 12, 1933, relating to fixing the metallic exchange rate, thus avoiding additional obstacles to our trade. To content of the dollar, which would otherwise expire on June 30, eliiil'inate any risk of exchange loss China agreed to repurchase 1939. H. R. 3325, which was introduced on January 26, 1939, by the yuan at the· same rate at which the United States purchased Chairman SoMERS, is in accord with the .recommendations of the them, and China's promise was backed by adequate gold and silver President, and I am appearing before you in support of this bill. collateral, which was kept on deposit with Federal Reserve banks. 2014 CONGRESSIONAL RECORD-HOUSE ~EBRUARY 28 . An arrangement of like character was made with Brazil in 1937, report. Congress evidently recognized that every precaution should but owing to subsequent developments the arrangement was not be taken to prevent anyone from attempting, through knowledge utilized. of its detailed operation, to gain speculative advantage. It was then A similar arrangement was made with Mexico. We purchased known that the British fund was operated with tho utmost secrecy, Mexican pesos and in exchange made dollars available. Again, as and it was realized that a certain amount of secrecy was essential in the case of China, the Mexican Government agreed to repurchase 1f our fund was to serve its purpose most effectively. the pesos at the price we paid for them and deposited adequate So far as there is secrecy in the operation of the stabilization collateral with the Federal Reserve banks. fund of the United States, it relates only to the transactions and There are times when the situation in the foreign exchange and status of the $200,000,000 portion of the fund. This account has gold markets calls for gold operations by the fund in the London never-held more than a relatively unimportant portion of our mone­ market. If, as a consequence of certain international, economic, or tary gold stock. It is with regard to this portion of the fund that trade developments, pressure should develop against the dollar­ ~he exchange speculators interested in following for their own sterling rate, the fund might, in order to protect the dollar's posi­ gain the day-to-day operations of the fund would like to have tion and American commercial and trade interests, engage in gold more detailed information. These speculators cannot now tell operations to relieve that pressure. It might, for example, place an whether the operating portion of the fund at any given time con­ order through its fiscal agent, the Federal Reserve Bank of New sists entirely of gold, or entirely of cash assets, or partly of each. York, for the purchase in London of a specified amount of gold at a They, or any citizen, of course, ·can tell from -the daily Treasury specified price. Upon execution of the order our fund acquires gold statement that the stabilization fund contains at least $1,800,- in London and supplies dollar exchange in payment. This gold 000,000 of gold which has never been touched. is placed on deposit in London and may be disposed of in any of Speculators would be the chief beneficiaries from publication of several ways depending upon market developments. Should, for a current record of the day-to-day operations of the fund. Failing example, pressure against the dollar then occur, the fund could to obtain current information, they would like the detailed data release the gold in London for payment in ~terling and then sell on past operations. The past record would enable them better to sterling for dollars. If, on the other hand, no such pressure de­ trace the current activities of the fund. velops, the gold can be brought to this country to be held in the One of the important ways through which the stabilization fund stabilization fund or to be sold by it to the United States assay helps maintain confidence and stability of exchanges is by its office. psychological effect. The less the speculator knows of the day-to­ There are numerous other technical ways in which the exchange day operations o! the fund, the smaller do those operations have and gold transactions are consummated, depending upon where the to be. preEsure falls, what the reasons for the pressure are, the condition n. ALTERATION IN THE WEIGHT OF THE DOLLAR of the various exchange and gold markets, and even the shipping I now come to the second section of the legislation which the facilities for gold available at the particular time. committee is considering: Extension of the authority to alter the From 1934 to the middle of 1936 the stabilization fund acted in­ gold content of the dollar. This power, when originally given to dependently in the purchase of gold and foreign exchange. When the President in the Thomas amendment passed in May 1933, was in 1936 France was confronted with a monetary crisis, the United Kingdom, France, and the United States realized the necessity of subject to no time limitation. However, it did provide that the taking steps to safeguard their economies against competitive ex­ gold content of the dollar could not be reduced more than 50 per­ change depreciation which in the long run would benefit none and cent. In January 1934, when the President recommended the injure all. Therefore, in pursuance of our policy of promoting enactment of the Gold Reserve Act, he recommended that the stability of the exchange value of the dollar, on September 25, 1936, authority to change the gold content of the dollar be limited to we jointed the Governments of Great Britain and France in the tri­ fixing the dollar at a gold content of between 50 and 60 percent of partite declaration of policy with respect to international monetary its former weight. You may recall that on January 31, 1934, the affairs. Soon thereafter the Governments of Belgium, Switzerland, President exercised the power granted him in this act by fixing the and the Netherlands announced theif adherence to this declaration. gold content of the dollar at 15 ~21 grains of gpld nine-tenths fine, The machinery for collaboration to attain the common objectives which was approximately 59 percent of its former weight. laid down in the tripartite declaration was provided chiefly by the The Gold Reserve Act placed a time limitation on both the stabilization funds of these countries. stabilization fund and on the dollar devaluation powers. On Janu­ The stabilization fund is, under present conditions, a potent ary 23, 1937, the dollar devaluation power was renewed by Congress instrument for the protection of our stake in world trade and of at the same time the stabilization fund was extended. every American producer who competes in the American market It is my conviction that this power should be continued. with foreign producers. The only persons in the United States who The dollar now has identically the same g0ld value it had 5 can possibly be injured by the operations of the stabilization fund years ago when the President proclaimed on January 31, 1934, that are speculators in foreign exchange. Whereas the businessman the gold content of the dollar shall be 15%1 grains of gold nine­ needs stability in exchange, the speculator thrives on exchange tenths fine. The fact that we have kept the gold value of the :fluctuations. Any businessman who has had to deal in foreign cur­ dollar stable through the international mont>tary disturbances and rency knows that the dollar is the most stable and the soundest alarms of the past 5 years should be adequate assurance that there currency in the world today. The $2,000,000,000 stabilization fund is neither desire nor intent on the part of this administration to has been an important and, I believe, essential instrument in main­ alter the gold value of the dollar except under circumstances which taining that stability. clearly demand such action. The occasions when the stabilization fund has been employed This power is a weapon in reserve which is needed for the pro­ for large-scale operations to avoid disruption of the international tection of American interests. In the monetary field it is as im­ monetary market have been few, yet the fund operates regularly portant as a powerful navy in the field of defense against armed to minimize undesirable day-to-day fluctuations in rates. Its very attack. existence constitutes a stabilizing factor in the exchange market. It In the last 5 years, as you know, the currencies of over 50 coun­ is a major force in discouraging speculators from undertakng raids tries have changed their gold value. Unfortunately, the future is on our exchange rates. What is even more important, the presence uncertain; the trend of international economic relationships re­ of a $2,000,000,000 fund set aside to be used for exchange purposes mains subject to constant modification. There is no guaranty that when necessary effectively discourages the initiation of currency other countries in their search for what is in their best interests depreciation wars which would, of course, be disruptive to world will not undertake monetary measures which may operate to the trade. disadvantage of the United States. In this connection, remember One of the responsibilities of the stablization fund is to assume that virtually no foreign country has fixed the actual gold value in times of stress in the foreign exchange market the functions of its currency. normally performed by private operators, who, because of the risk For the United States to surrender any of 1ts instruments for involved, may not be willing to act at the very time when there is dealing adequately and promptly with international economic and the greatest need for exchange facilities. There have, for instance, monetary problems as they arise would tie our hands when im­ been several occasions in the last year when the fund was virtually mediate action might be crucial. The existence of this power to the only source of dollar exchange. devalue the dollar has been a warning to the world that we stand There is still another important function which stabilization ready and able to defend the position of this country in world trade funds throughout the world perform-namely, the protection of the and to protect American goods from intensified competition in the domestic money and credit market from the impact of large gold American market. Thus stability rather than instability is given losses or gains. Because of the large amount of gold held by our to international exchange rates by the existence of the power in stabilization fund it is in an excellent position to protect our credit the United States to deal promptly and effectively with currency base against heavy withdrawals of gold from this country. depreciation abroad. It may be expected that, with the restoration of normal conditions It is my opinion that at this time when the gold content of other abroad, gold may leave the United States in large volume. In such leading currencies is permitted to float, and when the interna­ a situation the gold in the stabilization fund will cushion what tional picture is so uncertain, the United States should not permit might otherwise constitute a severe shock to our economy. the power of its Government to deal quickly and effectively with The emergency in the international economic and monetary field situations that require an alteration in the gold content of the still exists and unfortuna~ely there are no grounds for believing dollar to lapse. that such emergency will end on June 30, 1939. On the contrary, the recurrence of international crises is as probable now as when m. NEWLY MINED DOMESTIC SILVER the stabilization fund was created in 1934. I wish to call attention to the fact that section 2 of H. R. 3325, Regardless of the trend of international developments, the stabi­ in addition to extending the power of the President to alter the lization fund may have even greater usefulness in the future than weight of the gold dollar, also extends the power of the President, 1t has had in the past. conferred by the act of May 12, 1933, as amended, to provide for I turn now to another aspect of the fund. When Congress the unlimited coinage of silver. As you know, pursuant to such estab!ished the fund it provided that an annual audit should be power the President on December 21, 1933, issued a proclamation niade, and that the Secretary of the Treasury should make a report pursuant to which newly mined domestic silver has been received to the President once a year. There was no provision !or any other by the mints for coinage and addition to the monetary stocks at 1939 CONGRESSIONAL RECORD-HOUSE 2015 a return to the miner of an amount considerably above the world B.Al.ANCE SHEET OF THE ExCHANGE STAlJILIZATION FuND AS OF JUNE 30, price of silver. Since December 21, 1933, a number of proclama­ 1988-Continued tions have been issued modifying the original proclamation with INVESTMENTS regard to the amount to be returned to the miner and extending Schedule showing classes of U. S. Treasury bonds held by the the original proclamation. The Treasury is now receiving newly exchange stabilization fund mined domestic silver under such authority at a return to the miner of approximately 64 ¥2 cents per ounce. The original proc­ Average lamation, as modified, expires on June 30 of this year. Under the rat(l at provisions of section 2 of H. R. 3325 the President would have Class Face value Principal cost Accrued which authority to extend such proclamation until January 15, 1941. interest bonds are held BALANCE SHEET OF THE ExCHANGE STABILIZATION FuND AS OF JUNE 30, 1938 2~ percent u. s. Treasury ASSETS bonds of 1955-{l() ______$5,000,000 $5, 026, 562. 50 $41, 700.88 100.5313 Cash: 2~ percent u. s. Treasury Treasurer of the United bontls of 1949-53 ______10,000,000 10, 081, 075. 03 10,245.90 100. 8108 States, gold------·-­ $1,800,000,000.00 ·- Treasurer of the United TotaL------15,000,000 15, 107, 637. 53 52. 042.78 ------States checking ac- ' count------1,643,849.25 ScHEDULE No. 3 Federal Reserve Bank of Administrative expenses of the exchange stabilization fund from Newcount York ______special ac- _ Jan. 31, 1934, to June 30.., 1938 100,765,630.03 Salaries------­ $379, 961. 67 Disbursing officers' bal­ ~avel------Subsistence______31,785. 80 ances and advance ac- 18,509.14 counts------11,829.04 Telephone and telegraph------­ 171,622.29 ------$1, 902, 421, 308. 32 Stationery, etC------11,232.67 Accounts receivable: Due from French Cable co_ 5,007.34 other------58,428.46 Special accounts of Secretary of Treasury-Fed­ ~1 eral Reserve Bank of New Y<>rk: Total------671,540.03 Special account No. 1 (gold), 1,248,862.370 ounces (see schedule No. 1) ------­ 4:3,701,226.28 BALANCE SHEET OF THE ExCHANGE STABILIZATION FuND AS OF DEC. 31, Special accounts Nos. 8 and 4 (sterling 1938 and francs)------100,331.51 Cash: ASSETS Foreign exchange due from foreign banks----se­ Treasurer of the United 000,000cured deposits: yuan______Central Bank of China, 165,- _ States, gold ______$1,800,000,000.00 48,487,500.00 Treasurer of the United Gold of foreign banks held with Federal Re­ States, checking ac- serve Bank of New York as collateral on ex- count______1,620,526.45 change deposits: Gold of Central Bank of China, 1,395,381.168 ounces______Federal Reserve Bank of 48,838,340.89 New York, special ac- Investments-United States Treasury bonds (see . count------77, 599, 972.84 . schedule No.2)------­ 15,107,637. 53 Disbursing officers' bal- Accrued interest receivable (see schedule No. 2)- 52,042.78 Commodity sales contracts ______ances and advance ac- 2, 651.00 counts______16,663.96 ------$1, 879,237, 163. 25 Total assets------2,058,716,045.65 Accounts receivable: Due from French Cable Co ______5,007. 34 Capital account ______LIABILITIES AND CAPITAL _ Due from Treasurer of United States______2,979: 22 2,000,000,000.00 Special accounts of Secretary of Treasury-Fed­ Due to Central Bank of China______605. 78 Commodity sales contracts ______eral Reserve Bank of New York: Special ac- 2, 651.00 count No. 1 (gold) 2,303,965.650 ounces (see Liabllity for gold of foreign banks held as col- schedule No. 1) ------80,410,864.90 lateral: Gold of Central Bank of China______48,838,340.89 Foreign exchange due from foreign banks--;se­ Earnings (see schedule No. 2) __ $10,235,737.45 cured deposits: Central Bank of China 165,- 577,037.24 Deferred credits-add______310, 250. 56 yuan ______48,657,070.27 Gold of foreign banks held with Federal Re­ 10,545,988.01 serve Bank of New York as collateral on ex- General expenses--deduct (see . change deposits: Gold of Central Bank of schedule No.3)------671,540.03 China 1,395,381.168 ounces______48, 838, 340. 89 9,874,447.98 Investment s-United States Treasury bonds (see schedule No. 2) ------5, 026, 562. 50 Total liabiltties and capitaL______2, 058, 716, 045. 65 Accrued interest receivable (see schedule No. 2) _ 42,489.64 ScHEDULE No. !-ATTACHMENT TO EXCHANGE STABILIZATION FuND Other account s-deferred charges______9, 302. 02 BALANCE SHEET Oil' JUNE 30, 1938 Commodity sales contracts------2, 651. 00 SPECIAL ACC<>UNT NO. 1--GOLD Total assets------..,..2-,0-6-2-,-2.,...32-=-.-4-3--,-1-. 0-3 Schedule showing location of gold held by and for account of the exchange stabilization fund, LIABILITIES AND CAPITAL Gold held by­ Ounces Dollars Capital account------­ 2,000,000,000. 00 Bank of England, account A __ 38,941.816 1,854,006.95 Accounts payable: Federal Reserve Bank, New Vouchers payable------­ 8,250.97 Balance due Bank of England~old pur- York------47.~0.817 1,661,128.59 chase ______U. S. Assay Office, New York Deferred credit--net______756,526.76 (held in safekeeping) ______1,162,459.737 40,686,090.74 184,014.56 Liabllity for gold of foreign banks held as col- 43,701,226.28 lateral: Gold of Central Bank of China______$48,838,340.89 ~tal------1,248,862.870 Earnings (see schedule No. 2) __ $13, 229, 951. 08 ScHEDULE No. 2 General expenses-deduct (see Schedule showing total earnings of the exchange stabilization schedule No. 3) ------784, 653. 22 fund from Jan. 31, 1934, to June 30, 1938 12,445,297.86 Source: Profits on French franc transactions______$352, 014. 24 Total liabillties and capitaL______2, 062, 232, 431. 03 Profits on gold bulllon------~------711, 099. 88 SCHEDULE No. !-ATTACHMENT To EXCHANGE STABILIZATION FuND Profits on handling charges on gold------1, 772,273. 12 BALANCE SHEET OF DEC. 31, 1938 FTofits on silver transactions______105,371.27 SPECIAL AOCOUNT NO. 1--GOLD Profits on sale of silver bullion to Treasury Schedule showing location of gold held by and for account of the (nationalized)------­ 3,473,362.29 exchange stabilization fund Profits on investments------­ 491,208.70 Gold Un tr.ansit______Ounces DoUars Int erest on investments------­ 2,866,888.37 199,919.629 6,946,872.02 Miscellaneous profits------410.44 Interest earned on foreign balances ______56,740.83 Gold held by: Interest earned on Chinese yuan_____ .,. ______Bank of England-Account B__ 4:15, 636. 487 14,369,659.31 406,368.31 Federal Reserve Bank, N. y__ 69,678.702 2,438,754.56 10,235,737.45 U.S. Assay Ofilce, N.Y.: Held 1n safekeeping______1, 595, 264. 088 65,834,243.16 I>eferred credits~------~---- 310,250.56 Awaiting final report______23, 466. 744 821,335.85 80,410,864.90 ~tal------~------~ 10,545,988.01 ~tal------· 2,303,96~650 2016 CONGRESSIONAL RECORD-HOUSE ;FEBRUARY 28

BALANCE SHEET OF THE ExCHANGE STABILIZATION FuND AS OF DEC. 31, tion of publicity and Government propaganda. In view of 193Pr-Continued which I rise to read a letter I have just mailed to the At­ SCHEDULE No. 2 torney General of the United States. I now quote the entire Schedule shcnving total earnings of the exchange stabilization fund letter: from inception to Dec. 31, 1938 Source: Han. FRANK MURPHY, Profits on French franc transactions______$335,072. 94 Attorney General of the United States, Profits on gold bullion______1, 294, 301. 21 Washington, D. C. Profits on handling charges on gold------3,497,935.34 MY DEAR MR. MuRPHY: On October 22, 1913, the Congress of the Profits on sale of sterling______90, 141.13 United States enacted into law (38 Stat. Law 212) the provision Profits on silver transactions______105,371.27 that "No n1oney appropriated * • • shall be used for the Profits on sale of silver bullion to Treasury con1pensation of any publicity expert unless specifically appro-· (nationalized)------­ 3,473,362.29 priated for that purpose." Yet it is definitely apparent fron1 the Profits on investD1ents------­ 619,826.17 findings of the Select COD1Inittee of the Senate to Investigate Miscellaneous profits------430.44 Executive Agencies of the Governn1ent, appointed pursuant to Interest earned on foreign balances ______82,032.99 Senate Resolution 212 (74th Cong.), fron1 n1y own personal study, Int erest on 1nvestn1ents______2,957,955. 24 and fron1 the investigation of others, that nun1erous agencies in Interest earned on Chinese yuan______773,522.06 our Federal Governn1ent have not obeyed such n1andate of Congress. · And as Government agencies have no n1ore right to disobey Total------13,229,951.08 Federal statutes than have individuals or private corporations, it would seen1 to n1e that a study and investigation of this question INVESTMENTS by your office is warranted. Will you, therefore, consider such Schedule showing classes of United States Treasury bonds held by action your in1n1ediate responsibility? the exchange stabilization fund I an1 confident that such an investigation by your office will not only show nun1erous fiagrant violations by existing Governn1ent Average agencies of Statute 38, Law 212, but it will also den1onstrate the Accrued rate at extent to which Governn1ent agencies are annually expending Class Face value Principal cost interest which D1illions of dollars of taxpayers' funds to perpetuate themselves in bonds are office on their present enorn1ous scale. It would also show the held degree to which certain agencies are resorting to the dissemination of propaganda to sell the public on the theory of Federal bu­ reaucracy and collectivisD1. 2-% percent U. S. Treasury bonds of 1955-60 ______$5,000, 000 $5, 026, 562. 50 $42,489.64 100.5313 To n1e the current wave of Govermnent propaganda is an ex­ travagant, unfair, and n1alicious civil practice. It is a waste of the taxpayers' n1oney, and an iD1partial portrayal by the Attorney SCHEDULE No.3 General of its usage should lead to its ultin1ate curtailD1ent. Administrative expenses of the exchange stabilization fund from Trusting that you will give n1y suggestion your earnest attention, Jan. 31, 1934, to Dec. 31, 1938 and assuring you of my hearty cooperation, I remain, Sincerely, Salaries------$457,561.06 J. PARNELL THoMAS. Travel------35,296.17 Subsistence------21,766.17 ORDER OF BUSINESS Telephone and telegraph------195, 214. 88 Mr. FADDIS. -Mr. Speaker, I ask unanimous consent to Stationery------~ ------11,443.50 JUl other------63,371.44 proceed for 1 minute to ask the gentleman from Virginia [Mr. WooDRUM] a question. Total------784,653.22 The SPEAKER. Is there objection? INDEPENDENT OFFICES APPROPRIATION BU..L There was no objection. Mr. WOODRUM of Virginia submitted a conference report Mr. FADDIS. I rise to ask the gentleman from Virginia and statement on. the bill

1939. CONGRESSIONAL RECORD-HOUSE 2017: March 30, 1928", and "Repayment of taxes on distilled spirits de· want to get a Budget officer who will try to hold these ex­ stroyed by casualty", $38,000,000: Provided, That a report shall be made to Congress by internal-revenue districts and alphabetically penses down to the income, not what the Members of Con­ arranged of all disbursements hereunder in excess of $500 as gress want, not what the people want when we know it is not required by section 3 of the act of May 29, 1928 (26 U. S. C. 1676), good, sound business for them nor for the country, We ought· including the names of all persons and corporations to whom such to have brains enough, we ought to have ability enough, we payments are made, together with the amount paid to each. ought to have intestinal fortitude enough to say to the people Mr. RICH. Mr. Chairman, I move to strike out the last back home that we cannot run the Government and give word. I call attention to the fact that we are appropriating everybody everything they want, because that is not the thing in this bill $1,050,000,000 for interest on the national debt to do. It is not sound business. When will Congress cut for the next year, an enormous sum of money; also, that down on this ruthless spending of money they do not have to the national debt February 23 was $39,846,000,000. We have spend? gone in the red since the 1st of July last to February 23 Mr. Chairman, where are you going to get the money? over $2,166,000,000. You will note that the balance of cash The CHAIRMAN. The time of the gentleman from Penn• that we carried on February 23 is $3,399,847,220.37. When sylvania has expired. you think that the Secretary of the Treasury, Mr. Morgen­ The Clerk read as follows: thau, carries in the banks of this country $3,399,000,000 and FEDERAL ALCOHOL ADMINISTRATION over, paying the banks interest · on that money; suppose he. Salaries and expenses: For the purpose of administering the pro­ pays on an average of only 2 percent for all money borrowed, visions of the "Federal Alcohol Administration Act," approved considering all of the bonds that are outstanding against August 29, 1935 (27 U. S. C. 201), as amended, including personal anq other services; supplies and materials; equipment; communi­ the Government. I think anyone will conclude that he cation service; stationery; travel and subsistence expenses as au­ should not carry as a daily balance more than half a billion thorized by law; maintenance, repair, and operation of automobiles; dollars. No Treasurer of the United States ever carried more law books, books of reference, magazines, periodicals, and news­ papers; contract stenographic reporting service; the securing of than that amount before Mr. Morgenthau came in. Why evidence of violations of the act; and miscellaneous and contingent does he carry that amount? Only as a bait to the bankers. expenses, $425,000. Three billion dollars at 2 percent means $60,000,000 a year that we pay to the bankers of this country as a tribute: Mr. McCORMACK. Mr. Chairman, I move to strike out Sixty million dollars a year means $5,000,000 a month, and the last word. that means $166,000 a day. So that we are paying $166,000 Mr. Chairman, I notice the subcommittee has reduced the a day for interest on money that is in the banks of the amount recommended by the Bureau of .the Budget in the country, when there is no more use of doing that than there sum of $25,000 for the Federal Alcohol Administration. l is of getting out here and all of the Members going up in a agree with the position taken by the gentleman from Cali­ toy balloon. It seems so unbusinesslike I cannot see why the fornia [Mr. BucK] on yesterday about an amendment not Secretary of the Treasury does it; I cannot think of any­ peing offered at this stage, but if the amount is restored in thing more ridiculous than that, when the country is going the Senate I wish to make a few observations for whatever in the red so fast. Why do we have men in public offic;e. value they may have to the members of the subcommittee who are not working for the best interests of the country who will constitute the committee of conference as far as the and the American taxpayer? I do not accuse Mr. Morgen­ House is concerned. thau of trying to do something illogical or dishonorable, but The Federal Alcohol Administration has done a very fine I say that as a business proposition, when he 'can borrow piece of work. It has a most difficult task. It has the duty money in this country today and all of the money he wants, of issuing permits in accordance with the law relating to he should not permit a balance of $3,399,000,000 of cash in labeling, advertising, and to see that there is proper diStribu­ the Treasury when it is of no more use than the fifth wheel tion of the product made in accordance with the fair-trade in a wagon. Why does Mr. Morgenthau not do for the provisions of existing law. It has a duty to see that the Government as he would do for himself, or as any good busi­ public is properly informed and protected in what they are nessman would do? buying. This particular Administration has issued 15,000 Mr. KNUTSON. Mr. Chairman, will the gentleman Yield? i>ermits to distilleries, rectifiers, wholesalers and importers. Mr. RICH. Yes. . and wineries. It plays a very important part in protecting Mr. KNUTSON. Will the gentleman state for the benefit not only legitimate business but in protecting the general of the House how much this bill carries for interest on the public against a recurrence of the conditions ·which con.. national debt? tributed in part to the passage of the vicious eighteenth Mr. RICH. One billion a :fifty million dollars. amendment. Mr. KNUTSON. Why, that is more than it cost to run the I consider that the :J;i'ederal Alcohol Administration is per­ Government when I came down here. · forming a very important function and is being very ably con­ Mr. RICH. I admit that the gentleman has been here a ducted under the leadership of the present Administrator, good many years. He is right. Our cost of government has Captain Alexander, and his deputy, Mr. Huntington, and the increased by leaps and bounds. It should stop. The cost of others who are associated with them in that Administration. government today so far exceeds our revenues that there is The reduc~ion of $25,000 made by the subcommittee was for a wreck ahead unless you stop it. The chairman of the Com­ traveling expenses. I will agree that ordinarily ·per diem mittee on Appropriations and all the chairmen of the com­ expenses- mittees in the House of Representatives who are responsible Mr. LUDLOW. It is not altogether that. for the operation of this Government should do everything in Mr. McCORMACK. That is true . . The chairman's ob­ every way they can to cut down the governmental expenses. servation is absolutely true, but in the main it affects them The chairman of the Committee on Appropriations ought to in connection with the per diem expenses. This particular be here trying to do everything he can to cut down those department has only 27 inspectors to cover the entire coun­ expenses. Why does he not get up and say that we want to try. The result is they have to send their inspectors on cut down these expenses, and that they should be cut down? rather far-reaching trips, in consequence of which they have Mr. TAYLOR of Colorado. Mr. Chairman, will the gentle­ to resort to the per diem expense more than other depart­ man yield? ments which have sufficient personnel to meet the problems Mr. RICH. Yes. I do graciously Yield to the chairman of that confront them. the Appropriations Committee. I also understand that the Federal Alcohol Administration Mr. TAYLOR of Colorado. Is it not true that every one of recommended to the Bureau of the Budget an amount which our appropriation bills have come onto the floor of the House would enable them to establish regional offices throughout cut under the Budget estimates? various parts of the United States. Certainly I would like to Mr. RICH. Well, we want to get a new Budget officer, or see one in California, for instance, which would prevent one who will only spend up to our income and not one cent businessmen coming all the way East. One should be at more. Why does not the Budget officer consider that? We Chicago, one in the South, one in the Southwest, and one •

2018 CONGRESSIONAL RECORD-HOUSE ~.EBRUARY 28 In the Northeast, at least. The Internal Revenue Bureau were assured they would be given this money, and they felt has recently inaugurated a decentralization system, estab­ so sure about it that they purchased the necessary site for it lishing regional offices so that businessmen and other tax­ last year. It is all ready to go, but, as the admiral writes me, J>ayers will not have to come to Washington in order to have it was finally not included in the amount that was allocated final action upon tax questions before they can go before the to him from relief funds. Board of Tax Appeals with their cases. It is a very com­ I want to read a letter that I received from him on August mendable policy, because it brings not only direct service 31, 1938. but greater satisfaction to those living in sections of the He wrote me the following letter: country·· far removed from Washington. I think a similar TREAsURY DEPARTMENt, plan with reference · to the Federal Alcohol Administration UNITED STATES COAST GUARD, should be devised in the near future, a plan which is de-:. Washington, August 31, 1938. Hen. B. J. GEHRMANN, pendent, however, upon the necessary appropriations being Member of Congress, Mellen, Wis. made. MY DEAR MR. GEHRMANN: Reference is made to your letter of My purpose in making these few remarks was to praise the August 27, 1938, relative to the proposed construction work in con­ Federal Alcohol Administration and the very fine work it is nection with a Coast Guard station at the Apostle Islands, Wis., the establishment of which was authorized by Congress in 1935. doing, and to call to the attention of the subcommittee the This work was included as an item in the projects submitted in importance of· this $25,000 if the Senate should insert that the application of the Coast Guard for allotment of funds from amount in the bill. · I trust the subcommittee constituting the Public Works apportionment of the Works Relief and Public Works Appropriation Act of 1938. However, in making the allot­ the House committee on conference will keep in mind the ment of funds to the Coast Guard consideration was given only to observations made by myself and by my distinguished friend the present active Coast Guard stations, and no funds were made from California [Mr. BucK], who made some observations available for new establishments. on this question yesterday along the same lines. In the circumstances it appears that nothing further can be done in the matter at present. [Here the gavel fell.] The need for a station in this vicinity is realized, and every The pro forma amendment was withdrawn. effort has been made to obtain the necessary funds for its con­ The Clerk read as follows: struction without avail. Very truly yours, For every expenditure requisite for and incident to the author­ ized work of the Coast Guard, including the expense of mainte• R. R. W AESCHE, nance, repair, and operations of vessels forfeited to the United Rear Admiral, United States Coast Guard, Commandant. States and delivered to the Treasury Department under the In the report that was made to the gentleman from Vir­ terms of the 1wt approved March 3, 1925 (27 U. S. C. 41), mainte­ ginia [Mr. BLAND], chairman of the Committee on Merchant nance, repair, exchange, and operation of motor-propelled pas­ senger-carrying vehicles, to be used only for official purposes at Marine and Fisheries, it was stated: headquarters and in the field, motion-picture equipment (not to There is no Coast Guard station on the south shore of Lake exceed $10,000), material for official purposes, and the rental of Superior between Duluth, Minn., and Portage, Mich., a distance of quarters in the District of Columbia, as follows: approximately 167 miles. The territory in this vicinity is generally rugged and very dangerous to navigation. The islands are close Mr. LUDLOW. Mr. Chairman, I offer a committee amend­ to the shipping lanes, and a station in this locality is essential ment. for protection of life and marine property. The Clerk read as follows: The Commander of the Eleventh Coast Guard District, in which district the station would come if it should be established and Committee amendment offered by Mr. LUDLow: On page 27, constructed, after making an examination into the matter, states line 17, strike out the comma at the end of the line and insert that in his opinion it is very important that a Coast Guard station in lieu thereof the word "and." be established in the group of the Apostle Islands for the protec­ · Mr. LUDLOW. This is just an amendment to correct the tion of mariners and fishermen in that vicinity. He also states that the amount of shipping into Ashland, Wis., is approximately language. 3,000,000 tons a year, and that approximately 80 boats are engaged The CHAIRMAN. Without objection, the amendment is in fishing in this locality. This is in addition to the enormous agreed to. amount of east and west bound tratnc which passes a short distance north of these islands clearing and entering Duluth, Minn., and There was no objection, and the amendment was agreed Superior, Wis. :to. The Commander of the Chicago division concurs in the views The Clerk read as follows: expressed by the Commander of the eleventh district. Total, Coast Guard, exclusive of Office of the Commandant, This joint harbor of Duluth, Minn., and Superior, Wis., is $24,607,550: Provided, That not more than a total of $2,200,000 out of the appropriations contained in this act under the caption second only to New York in incoming and outgoing tonnage, "Coast Guard'' except the appropriations "Salaries, Otnce of the and all those vessels have to_....pass that dangerous stretch Commandant" and "Additional airplanes" may be expended for known as the Apostle Islands. A great many lives have been aviation. lost in that area. Fishermen, for instance, are caught out on Mr. GEHRMANN. Mr. Chairman, I move to strike out the ice floes and then help has to be summoned from Duluth or last word. some other station. Oftentimes the help arrives too late. Mr. Chairman, I had intended to offer the following amend­ In the last 2 years they have maintained a detail or part of a ment to construct a Coast Guard station in my district, which Coast Guard detachment from some other station, but the is very badly needed and which has been authorized, and personnel of these stations is so small that they have been :Which the Coast Guard wants the worst way: unable to maintain the number of men necessary. Further­ On page 29, after line 11, add a new paragraph to read as follows: more, they do not have the necessary equipment of a modern "Building of new station: For building and equiping a new Coast Coast Guard station. Guard station to be located on Madeline Island, which is one of the · islands located in Lake Superior, and which group is known as the Certainly the amount of tonnage to be benefited warrants Apostle Islands, and to be erected upon land recently acquired by this additional Coast Guard station and I hope the c·om­ the United States Government for such purposes, $250,000." mittee will listen to Admiral Waesche, who feels that this is The only reason I did not do it now is because some of the one of the most important stations to be built. In fact, members of the committee have spoken to me about it, and there were only three stations on his list recommended last they feel something will be done soon, and it will probably be year and this was No. 1. Instead, however, of offering an better not to offer an amendment, but to call it to their atten­ amendment to the bill at this time I will leave it to the tion so that it will be included in another year. The only committee with the hope that they will insert this item in reason it was not pressed this year is because of the fact that next year's bill. we were given assurance the money necessary would be taken [Here the gavel fell.] out of relief funds appropriated in 1937 for the 1938 relief Mr. GEHRMANN. Mr. Chairman, I ask unanimous con.., appropriation. This Coast Guard station is to be located on sent to revise and extend my remarks and to include some Madeline Island, and, of course, authorization for it was letters from the Commandant that bear on this subject. passed in 1935. Admiral Waesche has tried his best to have The CHAIRMAN. Without objection, it is so ordered. :this inclu~ed in the appropriation. As I said before, they There was no objection. 1939 CONGRESSIONAL RECORD-HOUSE 2019 Mr. WADSWORTH. Mr. Chairman, I rise in opposition to Mr. SMITH of Ohio. Mr. Chairman, I offer an amend­ the pro forma amendment for the purpose of . asking the ment which I send to the Clerk's desk. chairman of the committee a question relative to the proviso The Clerk read as follows: found at the bottom of page 28, reading as follows: Amendment offered by Mr. SMITH of Ohio: Page 41, line 2, after Provided, That no part of this appropriation shall be used for the comma, strike out "$5,000,000" and insert in lieu thereof increased pay at a rate in excess of $1,440 per annum to ~ny "$3,000,000." nonflying commissioned officer or commissioned observer for making aerial flights; which rate shall be the legal maximum rate of such Mr. SMITH of Ohio. Mr. Chairman, the administration increased pay as to any such officer. recommended $3,000,000 for the expenses of the so-called Division of Venereal Diseases. The subcommittee raised the This would appear to be legislation, most definitely, but amount to $5,000,000. Why was this figure raised, and is it I will not raise that point. Perhaps I am not permitted to justified? do so, debate having started on the whole Coast Guard title, I have practiced medicine for 30 years. I was one of the but I wanted to ask the chairman if the insertion of this first physicians in this country to treat syphilis with 606 and proviso will in any way result in destroying the uniformity its allied compounds. I have had a reasonably large experi­ of pay established under the act of 1922 as between the ence in the treatment of both syphilis and gonorrhea. I was Army, the Navy, the Marine Corps, and the Coast Guard? for 3 years chairman of our local board of health. Mr. LUDLOW. I may say to the gentleman from New I do not like the kind of testimony some of the principal York that this is a proviso that has been carried for years. witnesses gave before your committee relating to the con­ We inherited this provision, so to speak. I am under the trol and treatment of venereal diseases. I am sorry to say I impression that it does not have the effect which the gentle­ feel most of it is strongly biased and far from complete. It man has in mind; certainly there have been no repercussions is not the detached and disinterested testimony that should from it because it is law, and I think he may rest assured be had in the consideration of a subject of this kind. It is that it would not result in the disparity he has in mind. anything but that. Above all, the testimony given is very We would certainly have heard something about it if it had. superficial. Mr. WADSWORTH. I assume the committee would have Taking the testimony at its face value, one is led to be­ heard of it did it create an inconsistent element in the lieve all we need to do is appropriate huge sums of money general pay system of the military services. and, "ipsi dipit," syphilis and gonorrhea disappear from our Mr. LUDLOW. I may say to the gentleman from New fair land. York that no intimation has come to us indicating any such Well, it just does not work that way. In the first place, we thing. have found no cure yet for gonorrhea. It is altogether too Mr. WADSWORTH. Does the chairman of the committee early to tell anything definite about the newer remedies. think it is necessary to include this proviso each year, You know when you get gonorrhea, and God knows when "which rate shall be the legal maximum rate"? If we pass you get rid of it. Some of you know this as well as I do. such language once, is it not permanent? Must it be repeated Syphilis is curable in a high percentage of cases. Deliber­ in every appropriation bill dealing with the subject? ately or otherwise, some of the witnesses gave the committee Mr. LUDLOW. I understand it is not permanent because the impression that this disease is greatly on the increase in it does not say "hereafter it is to be effective." · It is therefore this country and that the means for combating it in the repeated in the ·annual appropriation bills. several States are failing. There is no evidence whatever Mr. WADSWORTH. I think the gentleman will agree with that it is on the increase. There is considerable evidence me that if we are to change the pay we would better do it by that it is on the decrease and has been since the discovery amending substantive law rather than from year to year and use of the nontoxic arsenicals. Dr. Parran certainly inserting a provision of this kind in appropriation bills. must know this. He also certainly knows that the means Mr. LUDLOW. I agree with the gentleman in principle; for combating the disease in the States have been extended yes. and improved enormously in the last 30 years. By unanimous consent, the pro forma amendment was No less than half of this appropriation will be wasted. Of withdrawn. course, some good will be accomplished with the remainder. The Clerk read as follows: And we grant you Sweden and other countries have accom­ Commissioned officers, pay, etc.: For pay, allowance, and com­ plished more than we have in controlling venereal diseases. mutation of quarters for not to exceed 445 regular active commis­ But one important comparison the witnesses forgot to make. sioned officers (including the Surgeon General and assistant surgeons general) and for pay of regular commissioned officers on Sweden pays cash for curing her venereal diseases. We waiting orders, $1,959,800: Provided, That the above limitation on charge the cost to our grandchildren. How will they fare the number of regular active commissioned officers may be exceeded if they have to pay for their sexual sins, as well as ours, too? by the number (not in excess of 10) of regular active commissioned Here, also, again is a double invasion of State rights. officers assigned to Federal penal and correctional institutions. Quoting from the hearings: Mr. LUDLOW. Mr. Chairman, I offer a committee Mr. LUDLOW. The great State of Ohio is receiving $100,000 from amendment, which I send to the Clerk's desk. the Federal Government and is raising $79,000 on its own hook. The Clerk read as follows: On whose hook did the Federal Government raise the Committee amendment offered by Mr. LUDLow: Page 35, line 19, $100,000 it gives to the great State of Ohio? In what waters strike out "ten" and insert 1n lieu thereof "twenty." did it fish to get the $100,000? In Ohio waters, of course. The committee amendment was agreed to. The Federal Government fishes $200,000 out of Ohio, and The Clerk read as follows: then gives back to the people of Ohio $100,000, on conditio_Ii Division of Venereal Diseases: For the maintenance and ex­ that the Buckeye state itself fishes out of itself another penses of the Division of Venereal Diseases, established by sections $100,000. 3 and 4, chapter XV, of the act approved July 9, 1918 (42 U. S. C. 24, 25) , and for the purpose of carrying out the provisions of the I am sorry there are so many suckers in my great State of act of May 24, 1938 (52 Stat. 439-440), including rent and per­ Ohio. sonnel and other services in the District of Columbia and else­ We here in Congress have come to a remarkable pass. where; items otherwise properly chargeable to the appropriations When ten or fifteen million people are thrown out of work for printing and binding, stationery, and miscellaneous and con­ tingent expenses for the Treasury Department; purchase of re­ we pass a law, and everybody has a job. ports, documents, and other material for publication and of re­ When the farmer's income sinks to the ground, we pass a prints from State, city, and private publications; purchase (not law,. and instanter his income rises to the top. to exceed $1,500), maintenance, repair, and operation of passen­ If ger-carrying automobiles for official use in field work; transporta­ the purchasing power of the people .drops, we pass a law tion; traveling expenses, including attendance at public meetings and up comes the said purchasing power. when directed by the Surgeon General; and the packing, crating, When people indulge too much in the worship at the feet drayage, and transportation of personal effects of commissioned officers, scientific personnel, pharmacists, administrative assist­ of Venus, pass a Federal law, tax the people, mortgage our ants, aides, dietitians, and nurses of the Public Health Service children, and forth comes the abstemious genus Americanus. upon permanent change of station, $5,000,000. Just like tha~ 2020 CONGRESSIONAL RECORD-HOUSE :FEBRUARY 28 Aside entirely from any question of merits or worth of Mr. SCHAFER of Wisconsin. Then the President indicates extending this program, we cannot afford it. The President he wants to curb extravagant, reckless, New Deal expendi­ asked for only $3,000,000. I ask that my amendment pass tures. Why does not the gentleman go along with him? Are and hold the amount to that sum. [Applause.] you going to spend and spend and spend until our money is Mr. LUDLOW. Mr. Chairman, I rise in opposition to the about as valuable as the many billions of inflation German amendment offered by the gentleman from Ohio [Mr. SMITH]. marks and Russian rubles which I hold in my hand? Mr. Chairman, the gentleman from Ohio, whom I respect Mr. LUDLOW. I believe in economy as much as the gen­ very highly, says we cannot afford to spend $5,000,000 a year tleman from Wisconsin or anybody else, but I do not believe to combat this terrible scourge, syphilis. I contend that in practicing economy at the expense of human misery. when we spend $80,000,000 for a battleship without batting Mr. SCHAFER of Wisconsin. But we cannot indefinitely an eye we can afford to spend one-sixteenth part of the cost continue to spend $2 and take in one tax dollar. of a battleship to try to restore human values and to heal The system of spending borrowed money is but te~porary the sick and the distressed in this country. [Applause.] in its nature and must soon explode .. It is a system not only The gentleman from Ohio made the statement that this ruinous while it lasts but one that must soon fail and leave is more than was requested by the Public· Health Service, as us destitute. As an individual who undertakes to live by I understood his statement, but I think he is mistaken. The borrowing soon finds his original means devoured by interest, Public Health Service is very agreeable to accepting this and next no one left to borrow from, so must it be with amount and would like to see it increased over and above Government. $5,000,000. The amount allowed in the pending bill is the · It has been well said by Chief ·Justice Marshall of the Su­ amount of the authorization under the La Follette-Bulwinkle preme Court that "The power to tax involves the power to Act and is not at all an extravagant amount, in view of the destroy; the power to destroy may defeat and render useless magnitude of the evil to be combated and in view of the ar­ the power to create." rangements that have been set up by the States to utilize their It is about time that the Congress and the people of America part of the fund in cooperation with the United States. realize the danger to our institutions if we do not stop the Some of the States construed the law incorrectly, but, wanton, reckless expenditures of public money while the New nevertheless, did construe this authorization as an appropria­ Deal Soviet Frankenstein, continues its mad hostility to tion; and it was brought out in the hearings that many of private industry and dries up sources of taxation while trying these States, most of them, as a matter of fact, have gone to transform our democracy into a collective soviet state, ahead with arrangements to operate on the basis of the full destroy savings, penalize success, discourage thrift, hamper authorization. They have set up their programs and have private business enterprise, destroy sacred rights and liber­ expanded their programs with this purpose in contemplation. ties, and smother vital energies of a free people while shack­ If we do not appropriate the full amount, we will have a ling them in bonds of political and economic slavery. program that will sag at the very time when it ought to We must realize that every dollar spent by government reach its very maximum efficiency. must be raised by taxation, this year or next year, this We had some rather interesting testimony in our hear­ generation or next generation, and must be created through ings on this subject and I wish that everyone here would the labor and toil of someone some time. In the final an­ read the hearings. Representatives from the medical pro­ ruysis all taxes are paid by the average man or woman who fession from all over the United States, as well as repre­ labors. With the Federal Government debt now more than sentatives of public welfare organizations appeared before $40,000,000,000, and many billions more of Government guar­ our committee and told us something about this scourge of anteed obligations, it will not be long before Uncle Sam is syphilis. There are 500,000 new cases of syphilis occurring plunged into bankruptcy, inflation, and resulting chaos, every year in the United States, according to the testimony misery, suffering, and distress such as this generation has brought out before us and perhaps 2,000,000 cases of gon­ not known. orrhea. General Pershing made a statement, which appears The time is at hand to act as well as talk about reducing in the hearings, that there are 7,000,000 people in the United expenditures of public moneys. States affected at this time with syphilis. Let us rise up and cry "Halt!" to the New Deal dreamers, . · Mr. Chairman, it seems to me that in these times when crackpots, and spendthrifts, who use the taxpayers• pocket­ we spend money without limit for national defense and for books as guinea pigs in the experimental laboratory of com­ implements of destruction we ought not begrudge a relatively munistic state socialism. meager appropriation to combat syphilis, and I may say that The President, through his Director of the Budget, asked 'l believe in national defense and I have voted for expanding for· three million, as provided in the pending amendment. I our national defense program. shall stand by the President, even though the members of his At one time we had a terrible scourge of yellow fever. At own party want to spend millions more than the three mil­ that time there were those who said it could not be over­ lion which he asked for. I pledge the President my support come, but science has overcome yellow fever and the testi­ and vote when he tries to reduce the cost of Government. mony of the experts who appeared before our subcommittee The CHAIRMAN. The question is on the amendment was to the effect that in time, with the providing of ample offered by the gentleman from Ohio [Mr. SMITH]. funds, they will overcome or at least reduce to an irreducible The· amendment was rejected. minimum this awful scourge of syphilis. I believe it is a The Clerk read as follows: responsibility that rests upon the House of Representatives National Cancer Institute: For carrying into effect the provisions and upon the Congress to appropriate sufficient funds at this of section 7 {b) of the National Cancer Institute Act, approved time to enable this program to continue with an efficiency August 5, 1937, $440,000. with which it will no doubt continue and with the effective­ Mrs. ROGERS of Massachusetts. Mr. Chairman, I move to ness with which it will continue if we just allow this rela­ strike out the last word. tively small amount of $2,000,000 above the amount provided Mr. Chairman, I ask unanimous consent to insert in the by the amendment · offered by the gentleman from Ohio. RECORD at this point an amendment to the Cancer Institute [Applause.] bill I have introduced. [Here the gavel fell.] The CHAIRMAN. The Chair advises the gentlewoman that Mr. SCHAFER of Wisconsin. Mr. Chairman, I move to she must obtain that permission in the House. strike out the last word in order to ask the chairman of the Mrs. ROGERS of Massachusetts. Mr. Chairman, I wish at subcommittee on appropriations a few questions. this time to congratulate the Members of the House on voting Did the President through his Director of the Budget ask for the Bulwinkle or Cancer Institute bill which passed the for only $3,000,000? House 2 years ago. You all know the provisions of this act. Mr. LUDLOW. The Budget Bureau sent up an estimate for .You all know that Dr. Parran and his assistants, in conjunc­ $3,000,000, I may say to the gentleman. tion with the National Advisory Committee for Cancer Con- 1939 CONGRESSIONAL RECORD-HOUSE 2021 trol, the Women's Field Army, and very many other organiza­ relating to cancer; to establish the National Cancer Institute; and for other purposes,'' be amended by adding, at the end of section 7 tions, are performing very wonderful service. I understand i>f said act, the following: · · the Cancer Institute is nearly completed and will be occupied SEc. 8. (a) For the purpose of enabling the Public Health Service July 1. I believe you all agree with me that Dr. Parran is to assist States, counties, cities, or other political ~ubdivisions of performing a splendid service for the public health of the the States to extend and improve measures through public and people of our country. - - private institutions and organ1zations for the diagnosis, treatment, and control of cancer, including the provision of hospital~ diag­ I wish to call attention to a book, Civilization Against Can­ nostic, clinic, and other facilities for the diagnosis -and· treatment cer, just published, written by Dr. Clarence Cook Little, which of persons suffering from cancer or suspected of suffering from this gives very valuable and up-to-date information concerning disease, there is hereby authorized to be appropriated for the fiscal year ending June 30, 1940, the sum of $2,300,000; and for each fiscal the fight that is being made against cancer. The book tells year thereafter, such sum as may be deemed necessary to carry out of the work being done to eradicate cancer by different Fed­ the P'QrPOses of this sect~on. The sums herein authorized to be eral, State, educational, and other organizations that are co­ ~ppropriated shall be available for the pay, a-llowances, and travel­ operating. Dr. Little points out the progress made in the ing expenses of commissioned officers and other personnel assigned to duty in carrying out the purposes of this section, in the Dis­ fight up to this time, the great need of additional work, and trict of Columbia and elsewhe;re, including the training--of person­ the need of coordination of the work. He stresses also the nel to carry out the provisions of this section; an~ for the printing great importance of diagnosing the disease in time. of reports, documents, and other material relating thereto. My amendment to the Cancer Institute bill--and I shall (b) Prior to the beginning of each fiScal year and at such time or times thereafter as may be necessary, the -Surgeon General of ask very shortly for a hearing on it before the Committee on the Public Health Service shall determine, out of appropriations Interstate and Foreign Commerce-provides that $2,300,000 made pursuant to section 8 (.a), the sum to be granted to the be appropriated in order to further activities to prevent and several States, including the District of Columbia, Hawaii, and cure cancer. It is generally conceded by the cancer experts Alaska. He ' shall then grant such sums "to the several · States, including the District of .Columbia, Hawaii; and Alaska, on the that nearly half the deaths that have taken place could have basis of (1) population, (2) the .death rate tram cancer, (3) exist­ been avoided if the existence of the cancer in these cases had ing facilities fot: the diagnosis and treatment o~ can~er, and (4:) been discovered early and treatment given immediately. My the financial needs of the respective States. Upon making such grants he shall certify the amounts thereof to the Secretary of amendment would give money to various cancer institutes, both the Treasury. The amount of such allotment to any State for public and private, all over the country, for the prevention of any fiscal year remaining unpaJ.d at the end of such fiscal year cancer and the treatment of cancer patients. The Federal shall be available for grant to the States for the succeeding fiscal grants would be matched by equal amounts from the States. year in addition to the amount appropriated and available' for I suppose if you talked with the 435 Members of the House, such fiscal year. (c) Prior to the beginning of each fiscal year, and at such time you would find very few Members have not had some relative or times thereafter as may be necessary, plans for expenditure of in their" own families at some time who have had the dread the grants made in accordance with section 8 (b) shall be sub­ disease of cancer or some related disease. Fortunately, today mitted to the Surgeon General by · the health authority of the respective States, or, with the approval of the State health author­ this disease in many instances is not a dread disease, not an ity, by any other State cancer control agency. After such plans incurable disease, and not a chronic disease. Taken in its have received the approval of the Surgeon General and the National early stages it can be cured. Advisory Cancer Council, the Surgeon General shall determine, Today the mortality rate of cancer is second of all the dis­ prior to the beginning of each quarter of the fiscal year, the amount to be paid to each State, and shall certify the amount so eases of this country. We have done something in the past determined to the_Secretary of the Treasury. Upon receipt of such few years toward the eradication of cancer. We can do very certification, the Secretary of the Treasury shall pay, through the much better, and I believe it is up to the Federal Government Division of Disbursement of the Treasury Department and prior to audit or settlement by the General Accounting Office, in ac­ to do its part. We are not groping in the dark on this prob­ cordance with such certification. lem. Certain kinds of cancer, to be sure, have proved be to Th~ Surgeon General is .hereby authorized to appoint, with the incurable, but by operation, by deep radio therapy, by radium approval of the Secretary of the Treas~y. two additional members treatments and X-ray, cures are secured. Education and of the National Advisory Cancer Council created by section 3 of knowledge are essential in the fight against cancer. With a this act. - . view to the dissemination of information I secured the passage (d) -With the approval of the Secretary of the Treasury, and after consultation with a conference of State and Territorial health of the following document: - · · officers and the National Advisory Cancer Council, the Surgepn [Public Resolution-No. 82-75th Congress] _ General is authorized to prescribe the rules and regulations neces- [Chapter 56---3d session] sary to carry out the purposes of this section. · [H. J. Res. 468] (e) A State plan under the provisions of this section must (1) provide for State or local participation at least equal to the amount Joint resolution to dedicate the month of April in each year to a of Federal funds; (2) provide for the cooperation in the. State plan voluntary national program for the control of cancer of the appropriate professional groups; (3) provid~ for improving Resolved, etc., That· the President of the United States is hereby and extending the facilities necessary for diagnosis and treatment authorized and requested to issue annually a proclamation setting of cancer in which preference will be -given to · the treatment of apart the month of April of each year as Cancer Control Month and needy persons; (4) provide that the State health agency will -make to invite annually the Governors of the several States and Terri­ such reports as the SurgeMichigan. Mr. CRAWFORD. And one should also keep in mind that · Mr. TABER. It prevents the use of any of the funds ap­ we have the Thomas amendment and also the Silver Pur­ propriated in this act for the purpose of such purchase. chase Act and this amendment which the gentleman pro­ Without the expenditures for the personnel involved in such poses would not, under the Thomas amendment of the Silver purchase there can be no purchase. Without the expendi­ Purchase Act, interfere with the purchase of domestically tures for carting and handling the silver to the storage ware­ mined silver. house at West Point there can be no purchase of foreign Mr. TABER. It would not interfere with the purchase of silver. currently and domestically mined and produced silver. Mr. MARTIN of Colorado. If the gentleman will yield Mr. WIDTE of Idaho. Mr. Chairman, will the gentleman further, the gentleman's amendment does not affect the yield? power of the Secretary of the Treasury to make such pur­ Mr. TABER. Yes. chases inasmuch as the Silver Purchase Act confers the power Mr. WHITE of Idaho. Is it not a fact that we are ex­ on him. changing our surplus commodities such as wheat. and cotton · Mr. TABER. My amendment prohibits the expenditure for this foreign silver? of any of the funds for that purpose. Under this proviso Mr. TABER. No; it is not. a limitation, it would be absolutely impossible for the Secri:~~ . Mr. WHITE of Idaho. And is it not a further fact that tary of the Treasury to spend any of the funds appropriated the Government makes a 200-percent profit on taking in this in this act for the purpose of carrying out the purchase of silver? any silver, with the exception of newly mined silver mined · Mr. TABER. That is not the fact. The gentleman does in the United States. not understand the operations of the Silver Act. Mr. CRAWFORD. Mr. Chairman, will the gentleman Mr. WHITE of Idaho. I will demonstrate that when I yield? get the floor in my own time. Mr. TABER. I yield to the gentleman from Michigan. [Here the gavel fell.] Mr. CRAWFORD. I agree with the gentleman from New Mr. LUDLOW. Mr. Chairman, I withdraw my reservation York in his observation. I believe anyone who studies the of a point of order. testimony of the Director of the Mint must necessariln come Mr. MURDOCK of Utah. Mr. Chairman, on the question to the same conclusion. Mrs~ Ross testified fully with ~espect of the point of order-- to the gr_eat responsibility now resting on the personnel and The CHAffiMAN. For what purpose does the gentleman the enormous expense incurred in the transfer of this silver from Utah rise? 1939 CONGRESSIONAL RECORD-HOUSE 2023 Mr. MURDOCK of Utah. On the question of the point morning. He should know that as fast as silver is purchased of order to the amendment of the gentleman from New most of it is placed in circulation as money in the form of York, and may I propound this parliamentary inquiry? silver certificates, and that the Government and the Ameri­ The CHAIRMAN. The gentleman will state it. can people are making a profit of 100 percent on the purchase Mr. MURDOCK of Utah. As I understoOd the gentleman of domestically mined silver and 200 percent on the pur-· from Indiana [Mr. LUDLow], he reserved all points of order chase of foreign silver; but best and most important of all against the amendment offered by the gentleman from New from the gentleman's professed solicitude for business, the York. American people are relieved from the interest charge as the The CHAIRMAN. The gentleman is correct. cost of the issuance and circulation of this money. Mr. MURDOCK of Utah. Then, as I understand the rules, If the eminent Republican from New York and his Re­ the gentleman cannot deprive me, after making that reserva­ publican colleague from Illinois are successful in their cam­ tion, in the event he does not want to make the point of paign to retire the interest-free silver certificates-legal­ order, of making a point of order myself against the amend­ tender currency-and replace them with Federal Reserve ment at this time. notes in the amount now outstanding-$1,614,143,513-he The CHAffiMAN. The gentleman has the right to make will force business to pay the banks an annual interest yield the point of order. of $48,424,305.39, calculated at 3 percent; but we all know Mr. MURDOCK of Utah. Then I make the point of order that current rates of interest are more than 3 percent. If at this time, Mr. Chairman. we calculate the interest at 6 percent, then the Federal Re­ Mr. WHITE o.f Idaho. Mr. Chairman, vorill the gentleman serve notes that would replace the silver certificates now in reserve his point of order until I can be heard on the amend­ circulation would yield the banks $96,848,610.78. ment? Now, what are these eminent gentlemen fighting for? Is Mr. MURDOCK of Utah. Mr. Chairman, I make the it not the interest income to the banks of this country to be point of order that the amendment submitted by the gentle­ laid on the backs of the people by retiring the interest-free man from New York is in violation of the Holman rule and silver certificates now in circulation and replacing this money constitutes legislation on an appropriation bill. with Federal Reserve interest-yielding notes-something for The CHAffiMAN. The Chair is ready to rule. these Republican gentlemen to :fight for-money to come Mr. SCHAFER of Wisconsin. Mr. Chairman, I make the right out of the pockets of everyone every time a purchase point of order that the point of order comes too late. is made from a business firm that has a note-eligible The CHAIRMAN. The gentleman from Utah has made paper-made·to the local bank and rediscounted by the Fed­ the point of order and the Chair is ready to rule. eral Reserve bank, on which interest must be paid if their Mr. SCHAFER of Wisconsin. Mr. Chairman, a parlia­ kind of money is to ·remain in circulation? mentary inquiry. Speaking of economy and Government assistance to busi­ The CHAffiMAN (Mr. BOEHNE). The Chair is ready to ness, these gentlemen move in mysterious ways their miracles rule. to perform. When business fs already carrying an interest Mr. SCHAFER of Wisconsin. The chairman of the sub­ load of $282,463,796.16, computing the interest at 6 percent committee withdrew his reservation of a point of order. on the $4,707,729,936 in Federal Reserve notes, which is the The CHAIRMAN. And the gentleman from Utah [Mr. bulk of our currency that is now in circulation, is not there MURDOCK] immediately made a point of order, and the Chair any limit to the interest load that these eminent gentlemen is about to rule on that point of order. would lay on the backs of the American people, when this The Chair simply desires to call the attention of the Com­ country is already $44,000,000,000 in debt as a result of this mittee to a ruling that has been made in the past on a ques­ faulty and unworkable monetary system with which the Gov­ tion very similar to this one, and the Chair reads from a ernment and the business of this country is struggling? And decision of the Honorable Nelson Dingley, of Maine, Chair­ let me remind the eminent gentlemen that are so solicitous man of the Committee of the Whole, on January 17, 1896, of business that all the silver certificates in circulation would in which he ruled: hardly pay the interest on the national debt for 1 year. If The House tn Committee of the Whole has the right to refuse to there ever was a time in the history of America when the appropriate for any object, either in whole or in part, even though that object may be authorized by law. That principle of limitation people of the United States needed an interest-free currency has been sustained so repeatedly that it may be regarded as a part and a lightening of the interest load, it is now; and I am of the parliamentary law of the Committee of the Whole. glad that the sincerity of these gentlemen, these stalwarts Because of this decision the Chair overrules the point of of the Republican Party, has been put to the test, that the order. people of our country, and particularly those of our Western Mr. WmTE of Idaho. Mr. Chairman, I rise in opposition to States, may know what the Republican Party would do to the amendment. For the 6 years that I have been a Member them if it was ever returned to power in this country. of Congress and attending the sessiOD$ of the House the emi­ Mr. Chairman, I say to the Members of this House that nent congressman from New York [Mr. TABER] has been the best possible piece of money ever invented is American­ preaching economy in season and out of season. He has at the silver dollar-which I hold in my hand. [Applause.] every opportunity insisted that we should lighten the tax load I remind the Members of this House that as fast as silver is on business, and now at last his sincerity is being put to the purchased, both foreign and domestic, it is immediately put test. His amendment would strike down the only monetary into circulation, that is, flows out into the channels of trade program of the ·Treasury on which the Government is making and business, minus interest, and the main object, the main a profit. thing sought to be accomplished here by the amendment is He would stop issuing the only money redeemable in coin. the retirement of interest-free silver certificates, to be re­ He would stop issuing the only interest-free money put out placed by Federal Reserve notes on which business must pay by the Treasury that saves business and the American people an annual interest-interest to the bank. That is the issue almost a hundred million dollars a year in interest. Yes. before the American people; that is the issue that this gen­ interest that would be paid monthly, daily, and hourly as the tleman is so sedulously putting forth here, in trying to retire price of keeping his kind of money in circulation. these interest-free silver certificates. I listened to the vicious attack on silver yesterday by the Mr. HOFFMAN. Mr. Chairman, will the gentleman yield eminent gentleman from Dlinois [Mr. DIRKSEN], which I pro­ for a question? pose to answer later, as only 5 minutes of time could be had Mr. WHITE of Idaho. Yes. by myself in yesterday's debate. Mr. HOFFMAN. The silver itself is up at West Point, is The eminent gentleman from New York should know the it not? facts concerning silver in our monetary system, as every Mr. WHITE of Idaho. Where is the gold? Silver certifi­ Congressman receives a copy of the Treasury statement every cates a.r~ the only money redeemable in coin. and the only 2024 CONGRESSIONAL 'RECORD-HOUSE FEBRUARY 28 use that we· put gold to is to cover the lendings of the Fed­ replaced by silver certificates which go to the Federal Reserve bank and the Government gets credit for them. _eral Reserve bank, and the sooner that fact penetrates the Mr. LUDLOW. Is the silver-purchase program affecting the mind of the gentleman from Michigan, the better' it will be. budgetary estimates adversely? . Mr. HOFFMAN. Why can we not buy wheat at twice its Secretary MORGENTHAU. No. value and issue money ·an that? So much for the purchase_of fp.reign silver. Mr. 'WHITE of Idaho. That is on a par with what we are . The world-wide considerations which lead to the adoption doing with the silver producers. of the foreign silver-purchase policy canpot be gone . into, Mr. SCHAFER of Wisconsin. And why not buy pig iron, cannot even be mentioned, in the few. minutes debate which because you can get it cheaper and you can run the printing will be given the amendment of the gentleman from New presses on that. You can just as well put pig iron in the York. vaults in Kentucky as silver or gold. . Let us t~rn now to domestic silver, for which the Treasury . Mr. WHITE of Idaho. The gentleman misses the point. ~snow paymg 64.64 cents an ounce, while the world market is · The CHAIRMAN. The time of the gentleman from Idaho about 43 cents. This means a subsidy of about 21 cents an has expired. ounce. Domestic production has been running about 60,- Mr. LUDLOW. Mr. Chairman, I ask unanimous consent 000,000 ounces per year and this would amount to a sub­ that all debate on this paragraph and all amendments si~Y. of only twelve to thirteen million dollars per year, a thereto close in 45 minutes. tnfling sum to preserve a basic and indispensable national The CHAIRMAN. Is there objection? industry. . _There was no objection. _· The sugar tax of one-half cent per pound to preserve the Mr. MARTIN of Colorado. Mr. Chairman, I move to domestic sugar industry comes to about $60,000,000 a year. strike out the last two words. I do not very often inject Agriculture for this fiscal year is being subsidized in the politics in my discussions. [Laughter.] And I want there­ sum, in round numbers, of $1,000,000,000. In one form or porter to note the fact that the laughter which just occurred another we have subsidized the railroads, the banks, the was on the Republican side. There is no laughter for them insurance companies, the shipping industry, the farms and about this statement, and that is that if silver is going to homes of the country, and God knows what else. Of them be killed, I w:ant it to be killed by the Republican Party, all, the. mining subsid~ is the smallest· and brings in the because that Issue has wiped out the Republican Party two greatest returns. It has brought free moriey to the extent or three times west ·of· the Missouri River, and I think it is of fifteen hundred million dollars, which, as compared with capable of wiping it out again. They are always talking that amount of money based on Government bonds drawing ~bout subsidizing this little handful of silver miners in the .3-percent interest, amounts to $45,000,000 per year. The _West, as though this thing was merely throwing a sop to a cost of the silver against which these certificates are issued bandful _of silver miners, b~t I say to you that the great ,is paid .for by s~ver certificates and is redeemable only in ~orce in this country that has kept the silver issue alive for silver. . · · · " - th_e last 70 years are the farmers ·of the United states. I . ·A gentleman-has ·held up a dollar silver certificate here ~elieve the farmers of this country are almost unanimously on the fioor and has shouted that' i{ he took it tO the m favor of the remonitization of silver. I ·kriow they are Treasury and got a silver 'dollar for it and melted it 'down favorable t() the -largest possible ·use of silver, because that and went back- to the Treasury with. tl:ie bullion, he. would ~ the onl~ money tl).at they kiiow anything about, and that Is the only money that is in circulation in· the United States. only get 50 cents for his silver. There is enough silver in That is the kind of money that the people have in their .the Treast;tr.Y to .give him a dollar in bullion for his--silver pockets in the United States and in the House of Repre­ .cer-tificate, but, laying aside that fact, his silver certificate is sentatives at this moment. The money in circulation is the only kind of paper currency which he could take 'to the silver certificates or silver dollars. -· . · Treas~ and get any metal in redemption. · Mr. O'CONNOR. Mr. 9hairman, will the gentleman yield? ·. They get up here on th~ fioor . and shout infiation . and Mr. MARTIN of Colorado. I have not the time.· -There debased currency in the face of the fact that the American is -nothing new in the amendment of the gentleman from dollar, no matter-what it is made out of, is the soundest New York except the exemption of domestically mined silver. dollar in the world_. When the gold content of the dollar .was cut 40 percent in 1933, _they said it would destroy the I ~ongratulate the gentleman on the progress that he has made in the last 4 years. I have a suspicion that some value of the dollar not only in this country but in the world. gentlemen on his side have been working him over. I do They said knocking the gold-payment clause out of the not think that he is in favor of the change that he has $100,000,000,000 worth of debts, public and private- .was an put into his amendment this year -exempting domestically ac~ of nationa_l dishonor which would destroy the ~redit of mined silver, but some gentleman has advised him it might th1s country- at home and abroad, .yet the credit of this not ·be healthy far the Republican Party west of the Mis­ cou~try, after 6 years of that policy, is better than any other sissippi River to go on record in the House as in favor of nation of the world, not even excluding England, supposed destroying domestic silver. .to ·be the master of the. world. finance. There is even less Mr. HOFFMAN. Mr. Chairman, will the gentleman yield? foundation for any claim that the issuance of two or three Mr. MARTIN of Colorado. I have not the time. We are billion dollars of cur:rency backed by silver will destroy the familiar with the gentleman from New York and his astro­ money of the -United States. They want to destroy this nomical figures as to what the Domestic Silver Purchase free mon:ey and, tie up. all the money to the chokestring of Act costs, when the fact of the matter is that it does not cost a mortgage bond in the hands of the banks. That is the az:ythinf?. TJ;le little subsidy that is paid to domestically Senegambian in the woodpile. . . mmed Silver 1s only a drop in the bucket compared to the If, the time has come to overhaul the foreign silver-pur­ benefits. It is true that we have acquired a vast lot of for­ chase policy it ought to be done properly. If there is any­ eign silver, ~ lot of it in ex~hange for our exports. but even thing_clear about this situation it is that this is not the this foreign silver has not been a drain on the ~easury of type of legislation, an amendment to an appropriation bill the United States,' and does not affect the Budget. Let me and this is not the way in which to overhaul the Silver Pur~ chase Act and the monetary policy of the United States. quote you what the Direc~or of the Budget and the Secretary of the Treasury said to the Committee on Appropriations Tha~ ought to be-done by duiy considered legislation, after when this identical item was before the committee last year. hearmgs. The Secretary of the Treasury is now before the The gentleman from New York [Mr. TABER] asked the Direc- Committee on Coinage, Weights, and Measures of the House tor of the Budget: · .. - · going into this whole subject, and we shouid wait. w~ ought to-know what we are doing. We do not know the What funds do you use to buy silver? Mr. BELL. We use regular Treasury Department funds to pur­ effect of this amendment. Nobody knows it. It has not chase silver in the first instance, but gradually those funds are been-submitted· to -the Treasury or the mint for an opinion. 1939 CONGRESSIONAL RECORD-HOUSE 2025 It is a wholly improper and inadequate way to revise. the is by far the worst. We have spent $7,000,000,000-not. one whole monetary policy of the United States, to have some billion as for silver, but $7,000,000,000 to get gold at twice the Member walk in here and spring an amendment to cut cost of production, 70 percent of which comes from the British $100,000 off of an appropriation for the. mint. For the mint, Empire, to take it out of the ground in South ,Africa and bring mind you, not ~ the Treasury Department, or directly affect­ it over to the United States, and bury it again in the ground i:pg the powers of the Secretary of the Treasury under the in Kentucky, where it draws no interest, feeds nobody, clothes Silver Purchase Act, but cutting it off of the mint; and nobody, builds no homes, and puts nobody to work. [Ap­ then we sit here for· 5 minutes and take his word as to plause.] what the effect of it will be on the monetary policy of the [Here the gavel fell.] United States. Mr. SCRUGHAM. Mr. Chairman, I rise in opposition to I want you Democrats to line up for ·silver. [Applause.] the amendment. [Here the gavel fell.J At the outset, I wish to call attention to the fact that, in Mr. FISH. Mr. Chairman, I do not see why my colleague my opinion, it is highly improper to attempt to profoundly from New York [Mr. TABER] has been taken to task and his change the entire fiscal policy of the Nation by means of a motives questioned, because he has about a 100-percent few lines of wording in an appropriation item for the record for economy. He is certainly trying to economize Mint. by his amendment. It is emphatically not the way to produce sound legisla­ What is my colleague from New York trying to do? He tion for the benefit of the Nation. The arguments in is trying to stop having the Government of the United States favor of the amendment are somewhat as follows, quoting finance other nations. He is trying to stop the Government from the remarks of the gentleman from Illinois [Mr. DIRK­ of the United States giving twice the cost of production for SEN], and the proponent of the amendment, the distingUished silver mined in other nations. That is all the gentleman ranking minority member of the Appropriations Committee, proposes to do by his amendment. Mr. TABER. Mr. WHITE of Idaho. Mr. Chairman, will the gentleman It is alleged that the acquirement of silver constitutes a yield? · tremendous burden on the taxpayers and will reflect greatly Mr. FISH. No; the gentleman has had his say. increased interest costs. This statement is certainly not The gentleman from New York [Mr. TABER] is trying to supported by the facts. The silver policy relieves the bur­ stop us financing other nations to carry on wars, whether den on the taxpayer, makes a profit for the Government, those wars be in China or in Europe or other places in the and stimulates foreign trade. world. This amendment does not affect one iota the price I quote from the statement just made by the gentleman of newly mined silver in the United States. That subsidy from New York [Mr. TABER], "The purchase of foreign silver, stands in this amendment, whether it is right or wrong. in effect, is paying for the operations of the Chinese war." I am willing to support it, but, as a matter of fact, it goes This would be delightful news to the· Japanese Government, to 25 mines producing silver, owned by some of the largest but apparently they do not have available the financia~ in­ corporations in America, employing only three or four thou­ formation just imparted by the gentleman from New York. sand men. That is where this silver subsidy of fifty or They are foolishly taxing their people to the utmost limit and sixty million dollars a year goes. borrowing money from every conceivable source. It is ridic­ Mr. WHITE of Idaho. Will the gentleman yield at that ulous to claim that the Silver Purchase Act is financing the point. Japanese military operations in China, except as silver : Mr. FISH. No. I am willing to support the amendment purchase is incidental to promotion of the general export as it is. I cannot see why those on the other side are oppos­ trade of the United States. ing it, when it does not affect newly mined silver. - The reason for the purchase of foreign silver is to estab­ Now, what is our silver policy? Where did it come from? lish foreign credit purchasing power, primarily for surplus It came from those financial wand wavers, crystal gazers, agricultural products, and incidentally manufactured prod­ and rabbit producers who thought by monkeying around ucts of the United States. We have great excess production with silver and the price of silver ·they would increase the of cotton, wheat, and manufactured products for sale. A prices of agricultural products at home and make the pur­ vote for this amendment is a vote to kill employment for chasing power higher in Mexico and China:· In Mexico and the farmer and workingman. . China the purchasing power has collapsed and farm prices Foreign silver purchase is a credit that promotes the sale have collapsed in America: I do · not question the motives of our surplus products. As proof of this I call your atten­ of the New Deal magicians if by the Silver Purchase Act tion to a quotation from the hearings of the Special Senate they tried to raise farm prices, but everyone must admit Committee on the Investigation of Silver.· -The date of the that they failed completely. I ·only question the wisdom of hearing is February 7, 1939. The following question was it, and the fact that farm prices collapsed is the answer. asked the . Secretary of the Treasury, who, I am sure, is What the· gentleman from New York 'is trying to do is to competent to answer it: econ·omize with the Government's money, to· stop ·using our Would not cessation of silver imports tend to reduce American money to finance other nations by paying twice what it exports of goods; and, if so, would not that tendency be very costs to produce silver in foreign nations. harmful to the country? I only rose because a lot of this silver goes into the ground The answer of Secretary Morgenthau was: at West Point, N. Y., which is my district, right op:Posite Yes, unless there should be a net outfiow of nearly $5,000,000,000 where I live. I am not opposed to a subsidy to encourage in gold. the production of silver in the United States. The gentle­ man from Idaho said we are not losing any money. We I hold in your face the testimony given in this hearing. have already spent about one and one-half billion dollars The actual facts of the effect of silver purchases are clearly to purchase silver very largely from abroad. The testimony and simply stated. shows that if we sold that· silver now we would lose $600,- My basic objection to this amendment is that it is not the 000,000. It is my belief we would lose over a-billion dollars. proper way to initiate or enforce import~nt legislation pro­ I believe that if we tried to· unload that silver ·it probably foundly affecting the fiscal policies of the country. A vote would not be worth more than 10 cents an ounce, and we for this amendment is a vote against foreign trade, against would lose over a billion dollars. One reason that prompted d.isposition of our surplus commodities, and is a vote to me to speak was this: It was not so much the silver ques­ increase our unemployment. Vote the amendment down. tion, because this whole silver .issue is not-a :fiea bite · or a [Applause.] half of a :flea bite or a quarter of a :flea bite compared with [Here the gavel fell.J the gold program. Of all the follies, fallacies, and fan­ The CHAIRMAN. The Chair recognizes the gentleman tastic failures of the New Deal, the ·gold-purchasing program from Michigan [Mr. WoLCOTT] for 4 minutes. LXXXIV--128 2026 CONGRESSIONAL RECORD-HO-USE FEBRUARY 28 Mr. WOLCOTI'. Mr. Chairman, I believe this amendment Mr. Chairman, do we want to make the Appropriations should be adopted. I think the fallacy of the Silver Pur­ Committee of the House an appellate court on the actions chase Act has been definitely proven. When we were con­ of every legislative committee of the House? What differ­ sidering the Silver Purchase Act, one of the outstanding ence does it make, so far as economy is concerned, to strike authorities on silver, Rene Leon, told us it would create from this bill a little item of $100,000 or so? Is not the purchasing power in China and enable our farmers to sell principle involved a bigger one than the mere sum of into the Chinese market, and would enable our industrialists $100,000? to sell into the Chinese market. Rene Leon has been com­ Our distinguished friend from New York is apprehensive pletely repudiated by the facts. about the price we may get for the silver that has accu­ The President himself said that the purpose of the Silver mulated in the Treasury. Mr. Chairman, can anything be Purchase Act was to increase our exports. The President as dangerous or as destructive, so far as the price of silver undoubtedly was following the advice of Rene Leon, and is is concerned, as to haphazardly stymie the Treasury Depart­ not to be criticized too much for that, because many of us ment in carrying out a silver policy which has heretofore liStened very attentively to his testimony before the House · been legislated by the Congress? Committee on Banking and CUrrency in respect of the silver­ There has been a lot of talk about the purchase of silver purchase plan, and many went along with him. adding to the national debt. The way that silver is pur­ What has happened to China and our trade with China chased under the Silver Purchase Act and under the procla­ because of the silver-purchase plan? We so demoralized the mations of the President of the United States is as follows, Chinese currency that banks closed, and factories closed in and I challenge the gentlemen on the Republican side, who China resulting in a situation comparable to our depression are so subtly trying to destroy the silver program, to deny of 1929-32. the fact. The price .of silver was bid up to the point where the When an ounce of silver is offered to the Treasury, whether bank holdings of silver in China were depleted, forcing under the Silver Purchase Act or under a silver-purchasing China off the silver standard. As a consequence, they tied proclamation of the President, this is what happens: If it is to the British pound sterling. China is a frontier country• . newly mined domestically produced silver, under the present It has a vast potential market for American produced goods. proclamation of the President, the offerer of the silver is paid For the first time in its history China has a unique na­ 64.64 cents an ounce, and immediately this silver is monetized tionalism. Instead of being subservient to royal war lords, at its monetary value as fixed by law, which is $1.29 an ounce. Chinese citizens today are responsible only to their central We have, therefore, a transaction which has netted the United government. It has a. nationalism comparable to that which States Government, under present law, a profit of 100 percent. we enjoy in America. .. If the silver offered is foreign silver, the Treasury purchases Mr. Chairman, with this nationalism comes a demand for it, let us say, at 49.8 cents an ounce, which has been the pre­ occidental goods--radios, automobiles, electrical equipment, vailing price during the entire year of 1938 and up to the kitchen utensils, furniture, and machinery. All of the things present time. This silver is immediately monetized at the which we manufacture in the United States could be sold in monetary value of silver, which is $1.29 an ounce. Silver cer­ that market had we not forced them off the silver standard. tificates are issued in payment of silver, whether it is domestic As a consequence, that highly desirable market is placed in or foreign. There is no borrowing of money for the purchase such a position that almost all of the trade between the of silver. ·There is no interest payable to banker~ in the pur­ United States and China must be transacted through the chase of silver. In fact, silver certificates are the only money back door of London, England. in circulation in the United States today which is not created It is not so much a question whether we should subsidize out Qf debt. Silver certificates are the only money in the cir­ our silver miners, because this amendment, as I understand culation in the United States today on which the people are it, definitely protects the domestic silver miners and con­ not paying interest. Silver certificates are the only money tinues to subsidize them. Whether that may be a desirable in circulation redeemable in metal. thing to do is not the question before us, because this par­ Referring again to the purchase of foreign silver at 49.8 ticular amendment exempts domestically mined silver from cents an ounce, the price paid during the entire year of 1938 the operation of the Silver Purchase Act. Our concern is on every ounce purchased by the United states Treasury, the with the question whether it is advisable to continue it be­ United States Government has made a profit of better than cause of the effect it might have on foreign exchange and on 110 percent. Now, under what stretch of the imagination can our foreign markets. We do not know, but we have every the United States Treasury take a loss under this program? reason to believe that the Silver Purchase Act of the United Of course, if this Government is ever foolish enough to delib­ States has made it possible for the Loyalist Government in erately demonetize silver, if it is foolish enough to dump its Spain to continue operations there. We do know that all of entire silver holdings onto the world market for the deliberate the gold holdings of Spain were depleted over 1¥2 years ago. purpose of destroying the silver market, we could take a loss. I hope that during the hearings before the Coinage, Weights, But, certainly, even the gentleman from New York [Mr. and Measures Committee on this matter it. may be brought TABER] and his distinguished colleague on the Appropriations out whether the Silver Purchase Act of the United States has Committee, the gentleman from Illinois [Mr. DIRKsEN], in the been used as the basis for loans to or purchases of armaments event their party ever attains power over the Government of for Loyalist Spain. the United States again-God forbid-even they would not be [Here the gavel fell.] foolish enough to take any such action as this. On the other The CHAIRMAN. The Chair recognizes the gentleman hand, we find silver certificates circulating under the mone­ from Ut~ [Mr. MURDOCK]. tary program o1 the New Deal at parity with all other types Mr. MURDOCK of Utah. Mr. Chairman, in speaking to and classes of United States currency. They circulate on the the Committee this morning may I suggest it is not so much same basis as Federal Reserve notes created out of debt. Not right now a question of the wisdom or unwisdom of the even the Republican opponents of silver would exchange what silver policy adopted in 1934. We have rules of the House they consider obnoxious silver certificates for their much­ under which we are supposed to proceed. coveted Federal Reserve notes at any discount whatever. There is pending in the Senate today and before a House The gentleman from New York [Mr. TABER] asserted last Fri­ committee, legislation which has to do with the silver-pur­ day in his tirade against silver that silver certificates were · chase program in which committees it is being orderly con­ crowding Federal Reserve notes out of circulation. sidered as contemplated by our rUles. Is it not the course I doubt very much whether or not this statement is true, of wisdom to await the action of those legislative committees but what a great boon it would be to the American people if instead of sniping at a program by striking out an appro­ such were actually the case. If we could have silver cer­ priation item? Have we no respect for our rules? Have we tificates coming into circulation as the result of American no respect for our legislative committees on whom devolves miners working at decent wages, producing the silver that the duty of reporting legislation on this question? backs silver certificates--coming into- circulation in the 1939 CONGRESSIONAL RECORD-HOUSE 2027 United States in such volume that they were replacing the questions of imports and exports we find that, notwith­ interest-bearing Federal Reserve notes created out of debt, standing the great wailing of the Republican Members as to and to every one of which attaches an interest payment to the vast amount of foreign silver that has come in under our bankers-what a godsend it would be to the great· mass of program, since 1873 until the present date our exports of American people. I wonder if 'this, ·Mr. Chairman, is not the silver are vastly greater than our imports, indicating again real secret behind the opposition of Republicans to the silver that the balance of trade in this commodity, if we wish to program of the New Deal. I wonder if the fact that silver consider silver as a commodity, is still in favor of the United certificates do not carry interest to the great bankers of the States. United States is not the very reason why we find the gen­ In conclusion, I desire to say that it has been indeed a tleman from New York; the ranking Republican member of pleasure to me to witness the unanimity of the Democratic the Appropriations Committee, opposed to any silver pro­ side in support of the silver program, contrasted with the gram whatever. He has tried to cover his subtle efforts to­ unanimity on the Republican side against it. day to destroy the silver program by trying to make the [Here the gavel fell.] domestic-silver industry believe that he is not aiming at The CHAIRMAN. The Chair recognizes the · gentleman them. But if his amendment should carry, it would so de­ from South Dakota [Mr. CASE]. moralize the silver market of the world that, regardless of Mr. CRAWFORD. Will the gentleman yield? the efforts of the New Deal to aid the domestic industry, it Mr. CASE of South Dakota. For a question. would not recover in a decade. The gentleman from New - Mr. CRAWFORD. Is it the . gentleman's understanding York is doirig exactly what' I prophesied he would do ·during that under the Silver Purchase Act the Treasury of the my last campaign in the State of Utah. The Republicans of United States can issue debt obligations in order to secure Utah are just as dependent on silver as the Democrats of the dollar exchange with which to pay for the silver? Utah. The leaders of the Republican Party always assure Mr. CASE of South Dakota.- I presume that is one way us just prior to election how sympathetic the Republican it can be done. My understanding is that silver certificates Party is to the welfare of the silver industry of the West, but are issued. just as soon as election is over and Congress convenes we Mr. Chairman, I am going to support this amendment find their sympathy expressed fn actions directed to the because I believe it is for the best interests of the silver destruction· of the entire silver program. industry of the country. I am afraid a continuation of the Now, let us consider for just a moment the redemption present policy will throw such a burden of proof upon the feature of silver certificates. All that any holder of a silver silver-mining interests of the West that if we do not take certificate can get therefor from the Treasury of the United the step proposed in this amendment we are go·ing to lose States in the way of redemption is that for each dollar in the entire benefits of the Silver Purchase Act so far as silver certificates when presented to the Treasury he will be domestic producers are concerned. handed one silver dollar. This redemption can be had and Mr. MURDOCK of Utah. Will the gentleman yield? still leave in the Treasury the huge profit ·it has made by Mr. CASE- of South Dakota. Briefly. purchasing silver for less than its monetary value and im­ Mr. MURDOCK of Utah. Does the gentleman believe mediately monetizing it at its statutory monetary value. As this is the· proper procedure to enact legislation, or would stated above, silver certificates circulate at par without any it not be better to hold public hearings and let the mining question as to their parity with all other types of money men of the West come in and appear before the committee and currency issued by the United States. The big round and tell their story? silver dollars that you find circulating in the West constitute Mr. CASE of South Dakota. Of course, I think that would the only hard and sound money in circulation in the United •e preferable. I recognize this is a method of indirection. States today. In answer to a statement made by the dis­ ~t the same time, what we are doing by the purchase of tinguished gentleman from New York [Mr .. TABER] on Friday foreign silver is to seek, by indirection, to help the exporta­ last, I read from a letter received from the Treasury Depart­ tion of cotton, wheat, or whatever the commodity may be. It ment addres~ed to me, dated February 27, 1939, signed by may be a desirable thing to aid the exportation of these commodities from this country, but to do it by the purchase Herbert E. Gaston, assi~tant to the Secretary, as follows: of foreign silver is also doing something by indirection. The procedure which has been followed in the purchase of silver has been to issue silver certificates to the cost of the silver acquired. Even though it may be an indirect method of accomplishing The purchase of silver thus does not reduce Treasury cash balances the result, I am convinced the step proposed by this amend­ nor cause an increase in the public debt. ment is necessary if we are going to protect the present benefit This certainly should be_a sufficient answer to the gentle­ to domestic silver under the present Silver Act. man from New York [Mr. TABER] as to how silver is pur­ GOLD PRICE IS SELF-DEFENSE chased under the present program, and it should assure him I am sorry that the gentleman from New York [Mr. FisH] and every Member of this distinguished body that the pur­ brought into the discussion the question of the gold purchases, chase of silver does not reduce Treasury cash balances nor because tl).at confuses the issue. However, because the gen­ cause any increase in the public debt. tleman has brought it into the discussion I wish to make one The gentleman from New York, and other opponents of the or two references to it. silver program, refer to it as a subsidy to the silver mines of The gentleman from New York and many other Members the West. But instead of a subsidy this program has resulted of the House in discussing the Gold Reserve Act at various in the greatest profits to the Treasury of any monetary pro­ times have assumed that by fiat or by legislation or by some gram ever adopted. For the sake of argument, I care not decree of this country the price of gold was automatically how long a silver certificate remains in existence, I care not raised from $20.67 to $35. As a matter of fact, no act of this how low the price of silver may go, under the present pro­ Congress or no proclamation by any President is funda­ gram the United States Treasury can neve.r take a loss. mentally responsible for the increase in the price of gold. Under the program the Treasury is only obliged to deliver What increased the price of gold above $20.67 per ounce was to the holder of silver certificates a dollar in silver, which is the demand for gold. fixed by statute, for a dollar outstanding in silver certificates. In 1933, before we ever had any purchasing of gold in this The price of silver cannot have any bearing on this obliga­ country at $35, the price of gold on the open market in Lon­ tion; and the Treasury, under the present program, can re­ don was bouncing far above $20.67. It was up to $26 and $29, tire every certificate in existence and still have a vast amount and for some time was between $32 and $34 per ounce. Be­ of silver representing the profits from this program. cause gold was going out of this country we had a proclama­ The use of silver in the arts and sciences since the adoption tion establishing an embargo upon gold in this country to of the silver program of the New Deal has increased more protect this country from losing its supply of gold. Finally, than 120 percent, so the future outlook from this standpoint in self-defense, we passed the Gold Act, which authorized the should dispel any fears of a great fall in the price of silver purchase of gold at $35 an ounce. Prior to that time gold unless this Government willfully contributes to it. On the was selling in London for over $32 an ounce. Since we have , 2028 CONGRESSIONAL RECORD-HOUSE ;FEBRUARY 28 purchased gold at $35, gold has sold on the open market in Mr. SMITH of Ohio. Mr. Chairman, I w~nt to address London at more than $35 an ounce. myself particularly to the majority side of the House. MY 'Tile establishment of the $35 price in America wa.S only in message should be of particular interest to you. self-defense. Various steps were taken. At. one time after I hold in my hand a paper dollar bill. It is a silver cer­ the embargo was first established, when the domestic pro­ tificate. I understand it is redeemable in silver. That iS, I ducers of gold said "it is unfair to force us to sell gold for can redeem it at the United States Treasury for one silver $20.67 at the mint here when if you would let us send it to dollar. Many of us have been wondering about the silver London we could get $29 or $32 an ounce for it," the Govern­ certificates that .are being is~ued. We hear it said there is ment for a time said, "We will pay you the world price of the something wrong with them. Indeed, there is something gold, but you cannot ship it out of this country." wrong with them and it should not be di..ff!.cult. for us to find The Gol~ Act was the result of definite conditions calling out what that is. for self-defense. . Anyone who has studied the history of gold Suppose I should take this dollar bill to the United States ought to realize that gold does have a real value, regardless Treasury and ask them for a silver dollar for it. The clerk of what you say about the price. In the case of a national at the window graciously hands me the silver dollar. Sup­ emergency, in case of war, if you have gold, _you can go to pose I take the silver dollar ho~e and melt it down into a some other country, whether or not it is on th~ gold standard, small silver bar. Suppose then I take this little bar of silver and you can get the war supplies you n~ed. If you have the back to the office of the United States Treasury and ask gold, you can get what you need in the world II).arkets. This them how much they will give me for it. What will be the is why it is important to have a good reserve of gold. reply of the clerk at the window? He will say, "I will give [Applause.] you 50 cents for your bar of silver," and that is all he [Here the gavel fell.] will give me for it. Mr. SCHAFER of Wis.consin. Mr. Chairman, I rise in sup- Suppose, however, I take my bar of silver that I got from port of the amendment. . melting my silver dollar down to the world silver market May I respectfully suggest to the Members from the mining and put it up for sale there. There I will be offered only States that they would render a great service to their cotJntry 32 or 33 cents for it. as well as the silver interests in their own district$ if they The real worth of the silver contained in the bar, there­ would support and vote for this amendment? When the rank fore, is only 32 or 33 cents. The dollar bill I gave the and file of our American people find out what a liberal Santa Treasury for it was only a warehouse receipt for the. silver Claus Uncle Sam has been for foreign people under your contained in the silver dollar. Therefore this . dollar bill New Deal silver and gold programs you will be mighty lucky which I hold in my hand is actually only worth about one­ if you _retain any subsidy for your domestically produced third of its face value. What is the other two-thirds? The silver and gold. other two-thirds is fiat money pure and simple. Who was the daddy of this gold and silver legislation? Two-thirds of it is infiation. This means that the silver Was he a monetary expert? No. He was a college pro­ certificates now in use as money are inflated to the amount fessor, an agricultural college professor-Warren. Professor of two-thirds of their face value, which is 200 percent. The Warren wrote a book and revealed that he was a great in­ President now has the power to double this infiation. ventor. . He admitted that he tried to perfect a device which And still people ask what is the matt~r With America. would. light up the chicken houses and make the chickens It so happens my middle name is Cleveland. I was named think that night was day, so they would lay two eggs a day after Grover Cleyeland. My father was a gold Cleveland instead of one. Professor Warren admitted that his device Democrat. Grov~r Cleveland was one of our greates_t money was imperfect; that it sent the chickens to their death in­ Presidents. If he knew what is being done now to our stead of to the nest to lay an egg at night as well as in the money he would be turning over in his _grave. . day. Cleveland called a s~ci~l session of Congress in 1893 to This New Deal professor, however, did perfect an invention consider the repeal of the Sherm~ Silver Purchase . Act. to light up the home of the blue goose that laid the gold and The country was in a panic at that time. Cleve~d ' blamed silver eggs. The Warren invention was the New Deal silver the distress of the country on the money debasem~nt in­ and gold program under which the blue goose did lay two volved in the Silver Purchase Act. Between 1878 and 1891 silver and two golden eggs instead of one. The record shows, the Treasury spent $308,000,000 in buying 291,000,000 ounces however, that the New Deal let the people in foreign lands of silver at an average price of $1.06 an ounce. The Treas­ have most of the benefit from the Warren invention. Under ury then coined out of the 291,000,000 ounces $378,000,000. the New Deal gold and silver programs foreign gold and It then allocated to itself a "profit" of $70,000,000 as silver producers and owners had most of the blue geese which seigniorage. · · · · laid two silver and two golden eggs instead of one, and Uncle That meant a 20-percent inflation of the silver money. Sam and the American people have been forced to contribute When the Congress was discussing the repeal of the Silver many billions of dollars to feed these geese in foreign lands. Purchase Act they .took the matter very seriously. They Our New Deal administration forced Americans to turn in debated the question on this floor for 15 days and nights. all of their gold to the Government for $20.67 an ounce or The result was the· act was repealed. The repeal of the else go to the jailhouse for 5 years. They then imported Sherman Silver Act immediately brought the country out from foreign lands from 1934 to 1938, inclusive, according of its depression.· to Treasury statistics, $7,676,858,307 worth of gold and paid Now, if a debasement of the silver money at that time $35 an ounce for it. Most of these imports came from Eng­ to the amount of only 18 percent could bring on a depres­ land and France, who owe the American taxpayers' Treasury sion such as was experienced then, is it any wonder our more than $10,000,000,000 which was handed to them by the country is in its present deplorable condition when we have World War Democratic administration. , an inflation of 200 percent, which can be doubled at the What did you do under your New Deal silver legislation? will of the Chief Executive? This is to say nothing about According to these Treasury statistics, we imported the pathologic condition of the other part of our monetary $955,398,319 worth of silver from foreign lands during the problem. years 1934 to 1938, inclusive. A great deal of this silver was . It is important to point out that Grover Cleveland espe­ purchased at more than two times the price of silver before cially understood the importance of a sound and honest the enactment of Professor Warren's New Deal silver legisla­ money system. He knew that the solution of the unemploy­ tion. This amendment does not reduce the subsidy for Ameri­ ment problem depended upon reestablishing confidence in can silver producers. It merely protects America from being money. He pointed this out in one of his messages to Con­ exploited by producers, owners, and importers of foreign sil­ gress. For full employment he said we need "contented ver. Let us pass this amendment and stop Uncle Sam from capital." playing Santa Claus in a big way to these foreign interests. · Mr. FITZPATRICK. Mr. Chairman, will the gentleman [Here the gavel fell.l Jield? 1939 CONGRESSIONAL REC0RD-HOUSE 2029 Mr. SMITH of Ohio. I yield to the gentleman. · The Federal Reserve System uses gold as a basis so far as Mr. FITZPATRICK. What is the purchasing power of any metal is used. I insist that if we confine our basis that dollar today as compared with the dollar in 1928 and for a monetary system to gold alone as we have for many 1929? years past, it puts too great power in the hands of the few Mr. SMITH of Ohio. The purchasing power of this dollar holders of gold. We must use both gold and silver as the can be measured in fairly precise terms. In 1929 the United basis for our monetary system from now on. It seems to me States dollar bought about $6,500,000,000 of brand new cap­ that the amendment proposed by the gentleman from New ital, which gave millions of workmen employment. In the York [Mr. TABER] is sniping at this whole silver policy. Per­ year 1938 our dollar bought about $850,000,000 worth of new haps there ought to be a modification of our dealing in for­ capital and left millions in the bread lines. That is what eign silver, but as the gentleman•from Colorado [Mr. MARTIN] our present dollar is worth as compared with 1929. and the gentleman from Utah [Mr. MURDOCK] pointed out Mr. FITZPATRICK. But what is its purchasing power in this is not the place to do it. Let us go about it in a legis~ clothing and groceries today? It is worth 20 percent more lative fashion, and we may agree to it, but the purpose of today than in 1928 or 1929? this amendment is bad, and I am opposed to it. Mr. SMITH of Ohio. For those who have full employ­ The CHAIRMAN. The time of the gentleman from Ari­ ment, yes; but for the millions who have not any jobs, who zona has expired. have no dollars with which to buy groceries and clothing, Mr. LUDLOW. Mr. Chairman, it is not my purpose to the dollar is not worth a cent. discuss the merits or the demerits of the Silver Purchase Act. That has been done by others. At one time a distinguished Mr. MURDOCK of Arizona. Mr. Chairman, some recent Member of this House, in a moment of conviviality, rose and American political history has just been paraded before us, said, "Where am I at?" I think it may be well for us at and I should like to call your attention to the fact that Grover this juncture to pause and ask ourselves where we are "at" Cleveland was not the only great and distinguished Demo­ in connection with this amendment now pending before the crat we have had on the American scene. Right now I am House. The Secretary of the Treasury, by a specific statute thinking of another Democrat and of his words, and as we is under a mandate to purchase silver. It is a mandate fro~ discuss this measure I see the dividing line as it was in 1896. which he cannot escape until silver attains the position of If they dare to come out in the open and defend the gold stand­ one-fourth of the entire monetary stock of the country, or ard as a good thing, we will fight them to the uttermost, having behind us the agricultural interests and all the toiling masses. until it reaches the price of $1.29 an ounce. The gentleman • • * The big business interests have made too limited their from New York [Mr. TABER] has said his amendment would definition of a businessman. cut off absolutely the purchases of all foreign silver, which This great Democrat thought that farmers, small mer­ amount to more than three-fourths of all the purchases of chants, and miners are businessmen. silver. It seems to me that you will then have the Secretary Today we have the same issue. We on this right side of of the Treasury tied up in a very hard knot. He is under a the central line have behind us. in this stru~gle the laboring mandate to purchase silver, and yet if this amendment should classes, the farming classes, and the multitude of small-busi­ prevail, he could not purchase anything but newly mined ness men, while you on that side of the aisle have behind you domestic silver, and if he purchased that to meet the require­ the banking interests and some big-business men. ments of the statute, it is obvious that he would be piling up What do you want in this simple amendment that you a subsidy to these domestic producers of silver that would be propose in the guise of economy? You are striking deep at out of all reason. The point I make is, without taking issue the fundamental financial policy of our country. You want for that matter with the general objective of the gentleman a money, sound money, you say, but a money for the busi­ from New York, with which I have much sympathy, never­ nessmen, not a Government currency but a bank currency theless this is a matter which certainly should have the atten­ based on an interest-bearing indebtedness, whether it be tion of a legislative committee and should have long and national bank notes or Federal ReEerve notes. It is a money serious and constructive consideration with hearings, and an that is based on a bonded indebtedness or an interest-bear­ opportunity for everyone concerned and every section of the ing debt. As my colleague from Idaho has pointed out to country to be heard. So I plead with the House to defer ~ou, we favor the money of the masses. It is the money of favorable action on the amendment and to allow this matter the laboring people, the farming people. I am not in favor to be considered in a legislative way. of unrestricted fiat money. I certainly am not in favor of The CHAIRMAN. The time of the gentleman from Indi­ rank inflation, such as you hold before us as a scarecrow. ana has expired. All time has expired. The question is on I am not fearing that the United States is going the way of the amendment offered by the gentleman from New York. Germany at the close of the World War, but I am saying The question was taken; and on a division (demanded by to you that that which has been regarded as money since Mr. LUDLOW) there were-ayes 130, noes 128. · the world began, gold and silver, is our money, and I want Mr. LUDLOW. Mr. Chairman, I demand tellers. to assure you that although some silver purchased may be Tellers were ordered, and the Chair appointed Mr. TABER put in a hole at West Point, it is not buried. It furnishes us and Mr. LUDLOW to act as tellers. a representative money which I am very glad to possess. · The Committee again divided; and the tellers reported- Mr. WHITE of Idaho. Mr. Chairman, will the gentleman ayes 135, noes 155. yield? So the amendment was rejected. Mr. MURDOCK of Arizona. Briefly. The Clerk read as follows: Construction of public buildings outside of the District of Co­ Mr. WHITE of Idaho. If the United States Government or lumbia: For continuation of construction of, and acquisition ot the United States could get entirely out of debt and all busi­ sites for, public buildings outside of the District of Columbia, ness go on a cash basis, could any Federal Reserve notes cir­ including the purposes and objects, and subject to the limitations, culate, or could we have any currency under the Federal specified under this head in the Third Deficie:ncy Appropriation Act, fiscal year 1937, and also including those increases in the Reserve System at all? limits of cost of certain authorized projects, 25 in number as Mr. MURDOCK of Arizona. No; in such an event we specified in House Document No. 177, Seventy-sixth Cong~ess, could not have either Federal Reserve bank notes or Federal $30,000,000: Provided, That the provisipns of section 322 of the act of June 30, 1932 ( 47 Stat. 412), shall not apply with respect to the Reserve notl!s. I say this because Federal Reserve bank notes rental of temporary quarters for housing Federal activities during have been based on the Government's obligation, just as the the replacement or remodeling of buildings authorized under this old national bank notes were, and Federal Reserve notes are or previous acts. based upon private obligations arising in the course of busi­ Mr. O'CONNOR. Mr. Chairman, I offer the following ness. Although I can see some logic -in tr.Js latter class of amendment which I send to the desk. notes--Federal Res.erve notes--it does seem a shame that The Clerk read as follows: business must pay an interest rate in order to bring it into Amendment offered by Mr. O'CoNNOR: Page 51, line 8, strike out circulation. . "$30,000,000" and insert "$60,000,000." 2030 CONGRESSIONAL RECORD-HOUSE ;FEBRUARY 28 Mr. TABER. Mr. Chairman, I make the point of order that not put some of those unemployed people to work? The Pro­ it is not authorized by law. curement Division cap. hire them just the same as anybody The CHAIRMAN. Does the gentleman from Montana else. You get more for your money in the construction of a desire to be heard on the point of order? Federal post-office building than you get for your money in Mr. O'CONNOR. I would like to be heard briefly. In the construction of other Government buildings built by re­ the act of 1937, which is the basis for this appropriation, lief labor throughout the United States. There is not a con­ Congress authorized the sum of $70,000,000 for expenditure gressional district in the West or in the East that should not over a period of 3 years. The Chair will note that there have an additional post-office building. Let us put this money was no particular quota of that amount directed by Con­ to work. The authorization was made in 1937 and 1938. Let gress to be used during any particular year. In 1938 Con­ us appropriate this $30,000,000 and give them $60,000,000 to gress again authorized a further appropriation of $60,000,000, work with, and if the Procurement Division does not have making a total of $130,000,000. Of the $130,000,000, sufficient help, let them employ some of the people who are $59,000,000 have been appropriated, and this bill now seeks now upon relief in the United States. to appropriate $30,000,000 more, making a total of $89,- Mrs. ROGERS of Massachusetts. Mr. Chairman, will the 000,000. My paint is tb,js, This bill is subject to amend­ gentleman yield? ment in this respect for the reason that the additional Mr. O'CONNOR. I yield. amount sought to be appropriated by the amendment makes Mrs. ROGERS of Massachusetts. Is it not true also that a total of $119,000,000, or $11,000,000 under the authoriza­ it will be a saving in the end, because it will save rental tion of the acts of 1937-38. Inasmuch as Congress did not expense? · direct any particular amount of the $130,000,000 to be used Mr. O'CONNOR. Exactly. In addition to that, the post or appropriated in any 1 year, my contention is the amend­ offices are needed. In my district there are 17 cities eligible ment is in order so long as we retain part of the $130,000,000 for post ofiices now. None of them is authorized to date. authorized to use for post-ofiice buildings during the third Mr. SCHAFER of Wisconsin. Mr. Chairman, will the gen­ year. tleman yield? The CHAIRMAN ut to him that you do not find on tbe relief rolls men ca­ Mr. RICH. The idea we hear expressed that we are going .l;lable of drawing the plans, specifications, and blueprints to save money by building these post offices certainly is ;necessary for great public buildings. A certain degree of erroneous because in most instances interest on the cost of 'itrchitectural skill and art is required. Furthermore, there the new building is greater than the cost of rental of like is a certain maximum of production possible, and this is pro­ quarters. Yided for by this $30,000,000. We want to sustain that Mr. LUDLOW. I think the gentleman is making a good 'organization in an efficient operating condition. The $30,- argument, but the fact is the Congress has authorized this 000,000 carried in this item represents every cent they c.an program and I think the gentleman's argument comes a use. Why, therefore, do we want to double the appropria­ little too late. tion when they can not use it? [Here the gavel fell.] Mr. O'CONNOR. Mr. Chairman, will the gentleman yield Mr. O'NEAL. Mr. Chairman, I move to strike out the last for a question? word. Mr. LUDLOW. I yield. Mr. Chairman, I do not intend to take 5 minutes but, as Mr. O'CONNOR. Could not that force be increased? Are a member of this subcommittee on appropriations, I want there not other qualified •people who can be added to that to again call the attention of the Members of th~ House, force architects who can draw these plans? and particularly the attention of the Members on this side Mr: LUDLOW. To add another $30,000,000 to this item of the aisle, to the word "economy." The committee worked would not speed the program. The program adopted meets on this bill for a month in an endeavor to try to save the all of the expectations of Congress. The organization han­ taxpayers a little money in the operation of these various dling this work carries it on in an efficient, progressive man­ Departments. [Applause.] ner. Thirty million dollars is all the money they need, is all We went into every individual item and did the best we the money they can use. Such an organization as this cannot could and in spite of all the efforts we put into the work, the be built up overnight; it is not a mushroom proposition; this total involved in the pending bill is $1,780,000,000. I think work has to be done by a skilled organization that has been we have done a very good job in cutting off $27,000,000. We built up over a long period of years. knew there would be complaints. We knew that the people Mr. PIERCE of Oregon. Mr. Chairman, will the gentleman who might be injured a little bit by the cuts would be here yield? demanding that the money be put back. This always hap­ Mr. LUDLOW. I yield. pens and that has been the case here. Mr. PIERCE of Oregon. When is the program to begin in Mr. Chairman, I want to urge the Members of the Com­ the districts, this year or next year? mittee to remember that in voting on this amendment, if Mr. LUDLOW. The original program, as I understood it, you agree to it you will increase by $30,000,000 the total was to cover every congressional district in the United States, amount given you a moment ago, which is $3,000,000 more placing one building in each district. than our months of work was able to effect in the way of Mr. PIERCE of Oregon. But nothing in this year 1939; savings. I do not care what excuse we make as to how much is that right? we would like to see a beautiful building go up in our various Mr. LUDLOW. In some districts; yes. Some of these districts, our country cannot afford it. Of course, it is a buildings are in progress now. I cannot tell the gentleman nice thing to go back home and say that we got another post :when a building will be built in any particular district. This office for our district, or that we got six or seven more. is a 3-year program, as a result of which a public building Mr. Chairman, let us begin to stand pat on the proposition will be built in each district of the United States that can that when a committee has studied a thing for months ·and qualify. A certain number of districts have not so far met the has endeavored to effect every possible saving we will try to qualifications, because the postal receipts have not been support it. Let us endeavor to consider very carefully before sufficient. As I understand, however, reservations have been we do anything to raise the amount that the committee set up for 56 such projects, covering over $4,000,000, which is brings in. There is extravagance enough now and to agree held in reserve pending the time these districts do qualify. to an amendment of this sort at the present time, in my Mr. TABER. Mr. Chairman, will the gentleman yield for a opinion, would be almost criminal waste. I ask the mem­ question? bers of the Committee to vote against the pending amend­ . Mr. LUDLOW. I yield. ment. Mr. TABER. Is it not a fact that this $130,000,000 pro­ [Here the gavel fell.] gram will provide two buildings for each district instead of The CHAIRMAN. The question is on the amendment one? Two building programs were adopted, one for $70,- offered by the gentleman from Montana [Mr. O'CONNOR]. 000,000, the original one, and a second one last year of The amendment was rejected. $60,000,000. Mr. LUDLOW. I stand corrected; the gentleman states The Clerk read as follows: the facts correctly. The $130,000,000 program will furnish OFFICE OF CHIEF INSPECTOR two buildings in every district. Salaries of inspectors: For salaries of 15 inspectors in charge of Mr. O'CONNOR. Mr. Chairman, will the gentleman yield? divisions and 600 inspectors, $2,336,000. Mr. LUDLOW. I yield. Mr. MOSER. Mr. Chairman, I offer an amendment which Mr. O'CONNOR. Is it not a fact that under the I have sent to the Clerk's desk. $130,000,000 program the two post-office buildings per dis­ The Clerk read as follows: trict ought to be built in the 3-year period with the present Amendment offered by Mr. MosER: Page 61, line 3, after "$2,336,- set-up and with this appropriation as . i~ is written in the 000," insert "Provided, That none of the funds appropriated herein pending bill? shall be used to increase the salaries of post-office inspectors.'' Mr. LUDLOW. That is the way the plan will work out, Mr. LUDLOW. Mr. Chairman, I reserve a point of order and this $30,000,000 is the amount needed for this year's on the amendment just offered. work under the program. To make a haphazard appropria­ Mr. MOSER. Mr. Chairman, on yesterday afternoon I tion and throw another $30,000,000 into this activity would addressed the Committee of the Whole and mentioned what disrupt progress and make for confusion. . had occurred with respect to appropriations heretofore made Mr. O'CONNOR. Increase the approprigtion, increase the for increased personnel under the 'chief Post Office Inspector. force. The country needs the post offices. Under the Classification Act of 1935 some comfort was taken Mr. LUDLOW. What is the use of appropriating money by Mr. Mague, superintendent of post-office inspectors in the that cannot be used? Post Office Department, in that appropriations have not been Mr. O'CONNOR. The people need the work. made and a reallocation of funds has been rendered neces­ Mr. RICH. Mr. Chairman, will the gentleman yield? sary in order to meet the requirements of this particular Mr. LUDLOW. I yield. classification act. 2032 ' CONGRESSIONAL .RECORD-HOUSE FEBRUARY 2& As I stated yesterday, it must be really offensive to a per­ The CHAIRMAN. The question is on the amendment son to be under the compulsion of an act that requires an offered by the gentleman from Pennsylvania [Mr. MosER] .. increase of the salaries of the personnel under that particu­ The question was taken; and on a division (demanded by lar individual's direction. In my experience as a post-office Mr. MosER) there were--ayes 56, noes 64. · inspector in the field I know that a field inspector is not So the amendment was rejected. promoted or increased unless his inspector in charge comes The Clerk read as follows: to Washington and goes to bat for him and puts up a battle. Compensation to assistant postmasters: For compensation to' However, the people who are in the chief inspector's office assistant postmasters at first- and second-class post offices, and who have their friends at court are the ones who are $6,950,000. favored; Mr. SWEENEY. Mr. Chairman, I offer an amendment; Since I have been a Member of the Congress I have had The Clerk read as follows: before the chief inspector the name of a constituent who Amendment offered by Mr. SWEENEY: On page 62, after the word· has been desirous of qualifying by taking a competitive "offices" in line 26, strike out "$6,950,000" and insert "$7,000,000." examination for post-office inspector in order to prove his merit and ability to serve in this capacity, and since that Mr. SWEEI:mY. Mr. Chairman, there probably is no time he has not been favored even with an examination. I group of Government employees more appreciative of the have not asked that he be reassigned or that he be ap­ efforts of Congress to better their conditions than the great· pointed, but only that he be permitted to take the same Postal Service. This amendment has merit. Many of you· examination I was permitted to take a good many years ago. will recall that last year the able chairman of the Com-­ A ruling was made by the Chair about an hour and a mittee on Post Offices and Post Roads, now the junior Sena­ half ago in which the Chair made reference to the fact that tor from New York [Mr. MEAD], made a plea on the floor of a previous Chairman of the Committee of the Whole [Mr. the House for a million dollars for clerk hire and a million· Dingley] had stated that the House had a right to appro­ dollars for carrier hire in excess of the Budget estimate, priate or not to appropriate. and that fight was successful. Had it failed. the service Under the act of 1935, which provides for the increase of probably would have been demoralized. In this case the these salaries, there has been no appropriation made, and, Budget has placed the amount at $7,000,000. We are asking as Mr. Mague testified before the committee, it was passed. the Committee to raise the amount carried in the bill only· He meant "passed up." It has not been a popular thing $50,000 to take care of an emergency affecting 2,700 post­ for anybody in the Government service to come forward masters of the first- and second-class throughout the coun­ and ask for appropriations to increase salaries. However, try. Every district in the country will benefit. there has been a great disposition on the part of the Con­ These men were compelled to work in December 1938 for gress and the Government of the United States to find em­ three succesive Saturdays in order to get the mail out during· ployment for people everywhere. the holiday season. They operate, as· all postal employees If there were to be increases in the Post Office inspection do, under the 40-hour week. They were not compelled to force for the very purpose they advocated when they came do this extra work, but it was a service to the Nation for· before the Appropriations Committee, may I say, if they which they ought to be compensated. concluded the investigation of cases uninvestigated and Mr. Donaldson, of the Post Office Department, said while· others to be undertaken, it would exact appointments to the appearing before the committee: personnel of the Inspection Service, which would deplete Mr. DoNALDSON. I might say that in this appropriation item the ranks among the letter carriers, railway postal clerks, estimate this year, we have had to disallow overtime compensation to assistant postmasters for the last three Saturdays in the month and others, and accomplish extra appointments to fill them, of December, which is provided for by law, due to the fact that as contrasted to salary increases for those having jobs. The the annual cost runs to approximately $40,000 a year. We ha.ve' Congress has not appropriated money to incre~e salaries nothing in the appropriation this year for it. Last year our under the Classification Act of 1935, and Mr. Mague, as appropriation was reduced by $50,000 in this committee under tbe Budget estimates. In other words, we got $50,000 less than the superintendent of the Post Office inspection force, has seen Budget approved. fit under the guise of reallocation of funds to take that which was appropriated for an increase in the personnel Quoting Mr. Donaldson further, and I think the Committee· and divert it to increasing salaries, which was not pub­ ought to take notice of this, although they did not in the licized until it came before this committee in the hearings. hearings-- That is a practice I feel every Member of Congress who we can allow for overtime or grant compensatory time. We votes for an appropriation for increase in personnel has a would prefer to allow overtime. We should allow the overtime, because they do not have the time or opportunitv to take the perfect right to resent. compensatory time. • That is my purpose in offering this amendment. I trust the Committee may adopt it, that it may be binding on those In other words, if a carrier or a clerk works on a Satur· who are charged with the administration of this appropri- day he gets compensatory time. If the postmaster works ation. · overtime he can get compensatory time, -but the Depart­ [Here the gavel fell.] ment has said he is too valuable a man and must remain The CHAIRMAN. Does the gentleman from Indiana · there. So I say, you will have to meet this obligation some­ withdraw his reservation of a point of order? time and you might as well meet it now. Mr. LUDLOW. I do, Mr. Chairman. Mr. McGRANERY. Mr. Chairman, will the gentleman Mr. Chairman, I shall not occupy 5 minutes. I am sure yield? tbe House understands the bent of mind of the Subcom­ Mr. SWEENEY. • I yield to the gentleman from Penn­ mittee on Appropriations against unwarranted increases in sylvania. salaries. We have a good deal of sympathy for the philoso­ Mr. McGRANERY. Is it not true that if this committee phy expressed by the gentleman from Pennsylvania in his does not put back in the bill the $50,000 cut by the Appro .. remarks, but just to write into the statute that under no priations Committee it will mean these assistant postmasters circumstances shall there be any increase in the salaries will have been required to work several days without pay? of inspectors no matter what the conditions or the circum­ Mr. SWEENEY. There is no question about that at all. stances may be would seem' to be hamstringing the Office of I ask the Co~ttee to go along with the amendment. Inspectors in an unreasonable way. We do not believe this The amount is small. You have to face this problem some would be conducive to sound administration. I do feel, · day, so why. not do it now? Give the Department a chance however, that these increases should be made only in to meet this obligation. The committee has never shown exceptional ca;ses. a hostile attitude, as I read the hearings. The amount is With these observations I shall conclude. This is a matter very small, and you will be doing a service to the men in entirely fo1· the House to decide. every one of your districts. 1939 CONGRESSIONAL RECORD-HOUSE 2033 Mr. TABER. Mr. Chairman, I rise in opposition to the Mr. LUDLOW. The gentleman is absolutely correct. amendment. Mr. MOSER. Mr. Chairman, I move to strike out the last Mr. Chairman, the amount carried in the bill provides an two words. increase of almost $18,000 over the amount the Department Mr. Chairman, I do not care to impose on the time of the is using now. It is absolutely ridiculous for us in times like Committee, but in line with this discussion I may say to those these to be raising the salaries of the higher salaried em­ of you who have third-class postmasters and in some in­ ployees of the Post Office Department. I hope we will not stances second-class postmasters that have just gotten over provide any more money for the assistant postmasters than the border. The act of Congress provides a stipulated salary the law has allowed. The committee has been exceedingly for that third-class assistant postmaster, but because of a liberal. lack of appropriations, perhaps, a woman in that post office Mr. SWEENEY. Mr. Chairman, will the gentleman yield? with a postmaster who has been sponsored politically and is Mr. TABER. I yield to the gentleman from Ohio. not functioning as such, is carrying the burden and doing the Mr. SWEENEY. Does the gentleman construe this to be work of the office and has been doing it for years and is a salary increase? deprived, perhaps, of a measly $150 a year of compensation Mr. TABER. It must be if more money is appropriated. that is her right by law. This has not anything particularly Mr. SWEENEY. This is to pay for 3 Saturdays these to do with this amendment, but with respect to overtime as men worked during December, outside of their 40-hour week. covered by this amendment, reference has been made here to Mr. TABER. We should not pay overtime to these high­ the high salaries of these people. For the most part, in the salaried employees. It is absolutely ridiculous. case of a high-salaried postmaster or a high-salaried admin­ Mr. SWEENEY. It is not overtime at all. istrative official within a post office, the matter of his com­ Mr. TABER. Paying overtime to people who draw low pensatory time does not concern the available amount of time salaries might be something to talk about, but when you for which he cannot be compensated. He compensates him­ offer overtime to these fellows who draw $3,000 a year self whenever he wills to abandon that post office and go and over you are going pretty far in these days when people away, and the post-office inspector is the one who pretends to are struggling to get enough to eat. see that he stays on the job and attends to business while the Mr. SWEENEY. If. the gentleman will yield further, can inspection is under process of being initiated, conducted, and the gentleman inform the House where it is overtime and consummated. So the people who are being deprived of their how it is overtime? compensation for compensatory overtime are not the ones Mr. TABER. How can it be anything else but overtime who can go away at any time they may desire, and for this if you are going to hand these men money for working on reason I believe the amendment ought to be adopted. Saturdays? Mr. FLANNERY. Mr. Chairman, there is one aspect of Mr. SWEENEY. These men came down there to get the this matter, if I understand the situation correctly, that mail out for the Christmas holidays, to do what they always ought to be called to the attention of the Committee. There do. are approximately 2,000 post offices in this classification which Mr. TABER. That is what they are there for and that is do not have assistant postmasters because of .budgetary de­ what the situation always has been. They are paid high ficiencies. In such cases, in the absence of the postmaster, salaries because they are supervisory employees. We should a clerk acts in the capacity of assistant postmaster. He not increase the salaries of these highly paid employees. I assumes full responsibility for the office and discharges the hope the House will vote down this amendment. duties not only of the assistant but of the postmaster, and [Here the gavel fell.] very often of the clerk himself. In such post offices during Mr. LUDLOW. Mr. Chairman, I move to strike out the the rush period a clerk, in addition to his own duties, is very last word. often performing the duties of an assistant postmaster, work­ In 1938 the actual expenditures under this item were ing overtime and on various occasions working when in the $6,882,000. _The sum we allow in this bill is approximately ordinary course of his employment he V{O.uld not be called $68,000 more than the actual expenditures last year, and it on to perform any task whatsoever. As I understand the should be sufficient to care for promotions in salary of situation, we are asking the clerk who is assuming the assistant postmasters as a result of any pick-up in postal responsibility of the post office, as a gratuity, to w<;>rk for business with a consequent increase in postal receipts. So nothing, and, Mr. Chairman, he has no choice in the matter. far as overtime is concerned, of course, we have that in many He is just a clerk and he is a clerk under a politically ap­ of the different establishments and it is inescapable. I do pointed postmaster and he must, perforce, do as his superior not believe the situation here is any worse than it is in requests in any emergency in the service, and you are com­ many other places and not nearly as acute as it is in some pelling him to work for nothing. instances. • Mr. TABER. Mr. Chairman, will the gentleman yield for After most ample consideration we believe this appropria­ a question? tion is sufficient, and even generous, to meet the purposes, Mr. FLANNERY. I will be pleased to yield. and we ask you to vote down the amendment. Mr. TABER. Does not the gentleman think that the post­ Mr. McGRANERY. Mr. Chairman, will the gentleman master who does nothing should pay the assistant for those yield? things out of his own pocket? Mr. LUDLOW. I yield. Mr. FLANNERY. Unfortunately, that matter is not be­ Mr. McGRANERY. Is it not true that unless this $50,000 fore us at the moment. I would be pleased to discuss that is provided, these assistant postmasters will not be paid for at the proper time and place; but because there is an in­ the extra time they are required to work? justice, perhaps, on the one hand is no reason we should Mr. LUDLOW. I do not know a thing about the situation visit an injustice on a clerk who has no redress. the gentleman is referring to. Of course, temporary em­ Mr. O'mAL. Mr. Chairman, I move to strike out the last ployees were employed all over the United States. two words. I want only a couple of minutes. This question Mr. McGRANERY. My question had reference to the as­ of overtime is present in almost every item we have in this sistant postmasters who will not be paid for the time they bill, as well as in every department we go into. If the were required to put in as extra time. Federal Government is going to assume the matter of pay­ Mr. LUDLOW. I have no information about that. ing every man for a little effort on his part, an extra hour Mr. MAHON. Mr. Chairman, will the gentleman yield? here or an extra hour there, there is no limit to it. The Mr. LUDLOW. I yield. Federal Bureau of Investigation had half a million hours Mr. MAHON. Is not the .purport of the remarks of the overtime work for which they are not getting anything. I gentleman from Indiana simply that we are already appro­ could take almost every hearing we have, in every depart­ priating in this bill a sum of $68,000 more than was spent ment, and show where men who are getting very good sal- under this item last year by the Post Office Department? . aries, who have gone through the depression with security. 2034 CONGRESSIONAL RECORD-HOUSE FEBRUARY 28 who know where their money is coming from, who are sat­ Mr. LUDLOW. That is an erroneous statement. They isfied although they work not only the hours for which had the usual compensation, their salaries, but they did not they are paid, but occasionally, some Saturday or other, over­ receive anything for overtime. time. We cannot possibly establish a rule that gives a Mr. McGRANERY. The Postal Department recommends man pay for overtime for every minute that he spends in the payment of this overtime. That Department is charged his office. I imagine that Congressmen occasionally work with the efficiency and maintenance and good conduct of longer hours than they are expected to. All through the that Department. They certainly must know what they Federal service that is true. I believe most of these men are are doing, and if you want to maintain honesty among glad to have the jobs that they have, with steady monthly your employees, at least be honest with them in return. income, and that they are delighted to retain the positions We have fixed the 40 hours a week as the maximum, and they have, though they are asked to spend an extra hour in when they are required to give more of their time, this their offices once in a while. I think we are doing nobody Government should meet its obligation, the same as in any injustice. I think we are trying to help the situation private industry. Private industry would be dragged into with the cooperation of those men who do a little extra the courts and compelled to comply with the law, and we work, and that that is the solution of the problem. I do have no right, becatise of our position here, to take ad­ not believe this Committee should attempt to compensate all vantage of that position and say to these employees, "We well-paid employees for a little extra time, and I think that know you have worked, we know your employer said you the action of the committee in this respect should be ought to be paid, but we, the members of this Committee, supported in keeping the amount at the figure fixed in the feel it is high time that there should be some saving on bill. the part of the _Government and, therefore, we are going Mr. LUDLOW. Mr. Chairman, I ask unanimous consent to violate our own law, a law that we enacted, and deny that debate upon this paragraph and all amendments thereto that which we said you should have." Mr. Chairman, that close in 5 minutes. · is an anomalous situation and that is the situation in which The CHAIRMAN. Is there objection? this Committee finds itself today. I ask that the Committee There was no objection. of the Whole vote the $50,000 carried in the amendment,·so Mr. McGRANERY. Mr. Chairman, I move to strike out that we may do justice and nothing more to these postal the last four words. I was rather surprised to hear my dis­ employees. tinguished ·colleague the gentleman from Kentucky [Mr. Mr. O'NEAL. Mr. Chairman, will the gentleman yield? O'NEAL] say that overtime should not be a proper charge Mr. McGRANERY. I yield. against the Federal Government. We have said so, and Mr. O'NEAL. Does the gentleman favor_ appropriating enacted it into law. money for every hour of overtime by all employees? For Mr. O'NEAL. Mr. Chairman, will the gentleman yield? instance, the Federal Bureau of Investigation, which has actually spent 500,000 hours overtime? Does the gentleman 1'4r. McGRANERY. Yes. believe we should appropriate for every extra minute of Mr. O'NEAL. In the higher brackets. It is a very dif­ overtime? ferent situation with a man who has a comfortable $3,000 Mr. McGRANERY. I say if that is the law we ought to a year income, who stays and works on Saturday, from the pay it. If it is bad practice, then the law ought to be fellow who is drawing $900 to $1,000 a year. changed by this Congress. Mr. McGRANERY. And I say that the average pay of Mr. KITCHENS. Mr. Chairman, will the gentleman yield? these assistant postmasters is $2,100 a year, so that they do Mr. McGRANERY. I yield. not come within the upper brackets. We have enacted a Mr. KITCHENS. Has the Government any way of de­ law in this Congress which requires industry to meet the termining the undertime? [Laughter.] letter as well as the spirit of the law with respect to hours Mr; McGRANERY. They have the same way of determin­ and overtime. We in this Congress should be the last to ing undertime that they have of determining overtime. violate that law or deny the right to any employee to com­ [Laughter.] pensation for overtime. With respect to the chairman of The CHAIRMAN. The time of the gentleman has expired. the committee, I believe that he did not understand the All time has expired. question propounded to him when it was asked whether The pro forma amendments were withdrawn. these men were paid last year. I read the testimony of The CHAIRMAN. The question is on the amendment of.:. Mr. Donaldson, in which he clearly says that they were not fered by the gentleman from Ohio [Mr. SWEENEY]. paid for three Saturdays they worked in December. The question was taken; and on a division (demanded by Mr. LUDLOW. Mr. Chairman, will the gentleman yield? Mr. SWEENEY) there were-ayes 31 and noes 88. Mr. McGRANERY. Yes. Mr. SWEENEY. Mr. Chairman, I ask for tellers. Mr. LUDLOW. It might be inferred from what the gen­ Tellers were refused. tleman says and from what my friend from Ohio [Mr. So the amendment was rejected. SWEENEY] said that these assistant poStmasters do not re­ The Clerk read as follows: ceive any compensation. That is quite erroneous. They do Foreign air-mail transportation: For transportation of foreign not receive any compensation for overtime, but they were mails by aircraft, as authorized by law, $10,200,000. · paid their usual salaries. Mr. SCHAFER of Wisconsin. Mr. Chairman, I offer an Mr. McGRANERY. Mr. Donaldson said: amendment. I might say 1n this appropriation estimate this year we have The Clerk read as follows: had to disallow overtime compensation to assistant postmasters for the last 3 Saturdays 1n the month of December, which is Amendment offered by Mr. 8cHAFEa of Wisconsin: Page 64, line 14, provided for by law. after the period, insert: "PrCYVided, That no part of the funds herein appropriated shall be paid to any corporation which shall directly We are the ones who fixed the 40-hour week for post­ or indirectly purchase insurance from any o11lcial or employee of the masters, and if they are required to work overtime 3 U:nited States or any member of their immediate family." Saturdays, then we have an obligation to either pay them, Mr. LUDLOW. Mr. Chairman, a point of order. or adjust the law so as to have it comply with their salaries. The CHAIRMAN. The gentleman will state it. Mr. LUDLOW. But they are not di:fferentiated from any Mr. LUDLOW. I make the point of order, Mr. Chairman, other postal employee. Many other postal employees have that it is legislation on an appropriation bill. not been paid for overtime, and· all through the Government The CHAIRMAN. Does the gentleman wish to be heard? that is so. Mr. SCHAFER of Wisconsin. I wish to be heard briefly, Mr. Mr. McGRANERY. The point is that these men were re­ Chairman. quired to work 3 days in December for the Federal Govern­ This is a limitation. My amendment applies to a paragraph ment without compensation. of the bill which makes an appropriation of $10,200,000 as a 1939 CONGRESSIONAL RECORD-HOUSE 2035 subsidy to aviation corporations which are engaged in the r Mr. HOOK. Can the gentleman tell me why the Silver I transportation of foreign air mail. In view of the fact that Shirts did not do anything about it? administrative branches of the Government determine what Mr. SCHAFER of Wisconsin. I do not know anything : corporations are to receive these large subsidies, it is neces­ about the Silver Shirts. The gentleman may · know. The : sary to include the language of the amendment in order that gentleman may know something about the Silver Shirts and · private personal interests of Government officials and em­ the Red Shirts. I only know about the red, white, and blue 1 ployees and their families might not contlict with the public shirts that I wore for 22 months overseas in the World War; ; interest with a resulting increasfd cost to the taxpayers' and I do not yield further to the spokesman for the so-called : Treasury. This amendment is a limitation with a purpose of liberal bloc of which our red-shirt Communist brethren and . reducing the cost of government, and I submit it is in order. their various fronts are a part. [Applause.] · . The CHAIRMAN. Does the gentleman from Indiana wish The CHAIRMAN. The question is on the amendment to be heard? offered by the gentleman from Wisconsin. Mr. LUDLOW. I do not wish to be heard, Mr. ·Chairinan. The amendment was rejected. The CHAffiMAN (Mr. BOEHNE) . The Chair is ready to The Clerk read as follows: rule. The Chair is of the opinion that this is definitely a Star-route service, Alaska: For inland transportation by star limitation and, therefore, the point of order is overruled. routes in Alaska, $125,000. The gentleman from Wisconsin [Mr. ScHAFER] is recog­ Mr. LUDLOW. Mr. Chairman, I offer a committee amend­ nized for 5 minutes. ment. · Mr. SCHAFER of Wisconsin. Mr. Chairman, ~or several The Clerk read as follows: years New Deal leaders denounced air-mail subsidies and Committee amendment offered by :Mr. LUDLOW: On page 64, line charged fraud and corruption. Apparently these violent de­ 20, strike out "$125,000" and insert in lieu thereof "$140,000." nunciations were only demagogic political propaganda, be­ Mr. DIMOND. Mr. Chairman, I move to strike out the last cause the New Deal has been in complete control of the word. Federal Government for 6 years and has not even brought Mr. Chairman, the committee amendment provides for an an indictment, ,let alone a conviction, of any person for fraud increase of $25,000 in this item, to a total of $140,000 for star­ o·r corruption with relation to air-mail contracts. At that route service in Alaska. The similar item carried in last time you dei,lounced Mr. McCracken, a Republican, and sent year's bill was $206,000. The Bureau of the Budget sent up an him to jail for giving Mr. Britten some files that the Senate estimate for this item of $150,000. The committee brought investigating committee wanted, although the record shows in the bill reducing the Budget estimate to $125,000. We find that a New Deal "brain truster," Mr. Lee, Mr. McCracken's the reason for it in the committee report. The following partner, admitted that he gave those files to Mr. Britten. statement is there made: By reason of this assistance in helping to spread New Deal STAR-ROUTE SERVICE TO ALASKA political propaganda, Mr. Lee received a lucrative appoint­ A reduction of $25,000 has been made in the Budget estimate for ment in the Federal Alcohol Administration. this item, it being recommended that an appropriation of $125,000 be approved by Congress for this service. Existing star-route serv­ The pending bill carries many million more dollars for ice in Alaska, on the basis of actual expenditures for the first 6 , air-mail subsidies than the appropriation bills passed under months of this fiscal year, is being operated at an annual cost of Republican administrations. Page 39 of the committee re­ approximately $110,000. Therefore, the amount approved by the committee should grant a margin of $15,000 for enlargement of i port indicates that this bill carries $10,200,000 for foreign existing operations or institution of new service. mail transportation subsidies, $996,000 as a s11bsidy for trans­ Atlantic service estimated on the basis of 7 months' operation Unfortunately the committee was misled, Mr. Chairman, . of six aircraft, three of which have already been delivered and by the fact that the cost of this service is comparatively light . three of which will be delivered in the near future. These six during the first 6 months of the fiscal year, but is com­ trans-Atlantic aircraft will be operated by the Pan American paratively heavy. during the last 6 months. The committee Airways, which will receive the subsidy. I do not believe any evidently desired to leave a margin of $15,000 for emergency member of the immediate family of an official, particularly an service. In doing this the committee undoubtedly had in · administrative officer of the Federal Government who deter­ mind the act of August 25, 1935, authorizing the Postmaster mines how much of this subsidy is to go to a private corpora­ General to give emergency service in Alaska at a cost of not tion and to what corporation it is to go, should be writing in­ to exceed $25,000 in any fiscal year. I fear, however, that surance for the corporation which reqeives the subsidy. The the estimate of the committee is still too low. I am not firm of Roosevelt & Sargent, of which the First Lady is a positive it is too low-otherwise I would offer an amendment member, having taken the place of the star insurance sales­ to the amendment to bring the amount back to the Budget man, James Roosevelt, wrote 50 percent of the insurance on estimate of $150,000. the six Pan American trans-Atlantic planes. This informa­ The existing contracts and orders, based upon last year's tion was released by John A. Sargent, president of the firm, operations, call for a minimum expenditure during the next upon his return from Europe, according to an Associated fiscal year of $132,400. Instead, then, of having a margin Press article appearing in the January 26 issue of the Wash­ of $15,000 for emergency, as the committee planned, we shall ington Evening Star and the Boston Evening Transcript. have a margin of $7,600 for emergencies, and this may not 'rbis Associated Press article also indicated that Mr. Sargent be sufficient. stated that the insurance covered total liabilities of slightly Mr. Chairman, my principal object in speaking at this more than $500,000 on each plane. time is to say that it is my understanding-and I think it is the understanding of the committee-that in accepting this Here we have the Roosevelt administration handing out figure, $140,000, we do not promise, or tell the House, that $996,000 of the taxpayers' money as a subsidy to the Pan this amount will be sufficient to give the same service we American Airways for the operation of six trans-Atlantic have had over all of the years in the past. I am afraid n planes. According to the ·press, the First Lady will christen will not be sufficient. It is my understanding at least, and I one of these planes in Washington in the near future and think the committee so understands it too, that if the De­ according to the statement of the president of her insurance partment comes here either before the expiration of the firm, said f...rm will underwrite more than $3,000,000 worth of present session of Congress or at the beginning of the next insurance on the planes. This kind of a hook-up is not in session and asks for an emergency appropriation in order to the public interest. You Democrats should support this bring the amount up to the Budget estimate, namely, amendment in the interest of your political party as well as $150,000, the Committee on Appropriations will receive the Y9Ur country. officials of the Department with sympathetic consideration. Mr. HOOK. Mr. Chairman, will the gentleman yield? The $140,000 may be sufficient, but I am apprehensive that it Mr. SCHAFER of Wisconsin. I yield. will not be; and in this connection I invite the attention of the 2036 CONGRESSIONAL RECORD-HOUSE ~EBRUARY 28 membership to the fact that the cost of this service has been Alaska for many years, and during an of that time I have lowered every period of 4 years for the last 3 periods, or 12 never known the Post Office Department to waste ·or squan­ years. Last year the appropriation was $206,000. Under the der a dent. amendment proposed by the committee it will be $140,000 · I should say, from my observation of the operations of the this year; and I hope this will be sufficient. We are getting Post Office Department in Alaska, reiliforced to some· extent better and cheaper service as the years pass. There is no by my experience in Washington, that the Post Office De .. need of any extraordinary haste in the-reduction of expend­ partment i.s not only the most efficient but the most economi .. itures with respect to star-route service in Alaska, for we cal and thrtfty DepartmEtlt of the ·Government. I have are making constant progress in that direction. never known a single instance of waste in that Department. May I refer once more to the lack of balance of expendi­ Sometimes I think that the saving thrift of the Department tures in the two halves of the fiscal year. In testifying be­ almost amounts to a vice. So I do not understand the re .. fore the subcommittee, Mr. Cole, the Acting Second Assistant luctance of the committee to appropriate for star-route serv- · Postmaster General, as shown on page 193 of the printed ice in Alas~a in thJ.s bill the sum set up .by the Budget, hearings, testified as follows: $150,000, instead of the· amount now offered as a committee You gentlemen should not be misled by the cost for the first 4 amendment, namely, $140,000. But it is possible that '$140,- months of the current fiscal year, because the costs in the Winter 000 will be s11fficient, and so I do not oppose it. We shall try months are a great deal more than they are in the summer months. to make it do, and if not sufficient, we shall come back and The costs for the fust 4 months of the fiscal year 1938 were only 10.3 percent of the cost for the entire year, although the first 4 ask for more. months were one-third of the year. - · Mr. Chairman, I know the committee is not trying to re­ The star-route service in Alaska, as will be seen from pages duce or curtail the mail service we have had in Alaska in the 192 and 193 of the hearings, embraces 8 routes served by past. I am keenly sensible of the fact that the committee dog teams, 13 routes served by motor vehicles, and 33 routes had approved an item in the bill of $213,000 for air-mail served by airplanes. The principal and greater part of the service between Seattle, Wash., and Juneau, Alaska. That service is given by airplanes. In former days practically all service, I am confident, will be set up soon. We must then of the winter service was given by dog teams, but at the have summer air-mail service along the lower Yukon Valley present time dog-team service i.s all but nonexistent. We to Nome, and along the Kuskokwim to Bethel. And I look have come to depend more and more upon the airplane for forward confidently to the time, and that soon, when the air all types of transport service in Alaska, because we are so mail to Alaska will be routed along the coast of the Terri-. sadly lacking in other ordinary facilities of transportation tory and not across foreign soil. There is not the slightest rea­ such as motor roads and railroads. son in the world why our air mail should not-fiy over inter­ The development of air transport in Alaska is more ade­ national waters from Seattle to Ketchikan, thence to Juneau, quately shown by the following table: and from there to Cordova, Valdez, Seward, Anchorage, Fair­ Qank.s, Nome, Bethel, and other important points in Alaska. Trend of air travel and air traffic in Alaska [Here the gavel fell.] Mr. LUDLOW. Mr. Chairman, the able Delegate from Planes Number Number of Number of Mail and Alaska has correctly stated the facts with respect to this item. Year in J)8SSellgers plane- passenger- freight car- service carried miles miles ried At the time we decided on the amount of $125,000 the evi­ (pound~) dence before us was inconclusive. Since then we .have come into possession of the complete evidence. In addition to the 1929------8 2,171 33,591 272,999 118,951 fact stated to the House by the distinguished Delegate from 1930 __ ------24 3,6M 338,422 684,361 120,733 1931.------26 7,947 381,234 947,695 161,718 Alaska we are informed by the Acting Second Assistant Post­ 1932.------31 6,637 742,854 942, 176 496,680 master General that it will require $132,000 to cover the. con­ 1933.1934 ______------(2 7, 743 1, 059, 155 1, 222,510 785,586 M 10,194 1, 126,610 1, 533,311 99~. 370 tractual obligations of this service in Alaska. So we have 1935.------:_ 75 13,318 1,685, G54 2,148, 692 1, 722,757 . 1936.------79 16,982 2,130, 929 3, 035,018 . 2,41R,616 allowed $132,000, and to it have added $8,000 for emergency 1937------102 20,958 2, 209,206 4,021, i98 3, 211,927 service. We believe this will be sufficient and that it corrects 1938.------155 26,885 2, 829,258 5,634,461 3, 758,4.95 the situation. ·We ask the Committee to adopt the amendment. In the more thickly settled portions of the Nation, where The CHAIRMAN. The question is on the committee ample facilities 'for an types of transportation are available, amendment. practically· an of the mail service can be given under long­ The committee amendment was agreed to. term contract. In Alaska, which is still largely a frontier The Clerk read as follows: country, the situation is different. There it i.s much better and cheaper for the Government to depend to a much OFFICE OP' THE FOURTH ASSISTANT POSTMASTEK GENERAL Post-omce stationery, equipment, and supplies: For stationery for greater extent on emergency service as the need for service the Postal service, including the money-order and registry system; may be shown. Congress has recognized this by the legis­ and also for the purchase of supplies for the Postal Saving System, lation to which I have referred, and which provides that- including rubber stamps, canceling devices, certificates, envelopes, and stamps for use 1n evidencing deposits, ·and free penalty en­ The Postmaster General may provide difficult or emergency mail velopes; and for the reimbursement of the secretary of the Treasury service in Alaska, at a total ·annual· cost of not exceeding $25,000 for expenses incident to the preparation, issue, and registration of • • • the bonds authorized by the act of June 25, 1910 (39 U. s. c. 760); An instance of that type of service came to my attention for miscellaneous equipment and supplies, including the purchase and repair of furniture, package boxes,- posts, trucks, baskets, recently. St. Lawrence Island is situated in Bering Sea, satchels, straps, letter-box paint, baling machines, perforating ma­ approximately 150 miles from Nome, Alaska. At this season chines, duplicating machines, printing presses, directories, clean­ of the year, that part of Bering Sea is a mass of floating ice. ing supplies, and the manufacture, repair, and exchange of equip­ And yet, the inhabitants of this island, about 500 in number, ment, the erection and painting of letter-box equipment, and for the purchase and repair of presses and dies for use in the manu­ who had not received any mail since last September or early facture of letter boxes; for postmarking, rating, money-order stamps, October, and who probably will not receive any more until and electrotype plates and repairs to same; metal, rubber, and com­ next June at the earliest, were furnished mail at very mod­ bination type, dates and figures, type holders, ink pads for canceling and stamping purposes, and for the purchase, exchange, and repair est expense by the :flight of an airplane from Nome, through of typewr_iting machines, envelope-opening machines, and comput­ the power to give emergency mail service conferred upon ing machines, numbering machines, time r~orders, letter balances, the Postmaster General. The service is meager enough in scales (exclusive of dormant or built-in platform scales in Federal buildings) , test weights, and miscellaneous articles purchased and any event. I do not wish to see the present meager service furnished directly to the Postal Service, including complete equip­ curtailed by lack of sufficient appropriation. ment and furniture for post offices in leased and rented quarters; It would be as well, Mr. Chairman, to appropriate $150,000 for the purchase, repair, and replacement of arms and miscellaneous a.s to appropriate $140,000. The larger appropriation would items necessary for the protection of the mails; for miscellaneous expenses in the preparation and publication of post-route maps and not result in the expenditure of a single additional dollar rural delivery maps or blue prints, including tracing for photo­ unless such expenditure were justified. I have lived in lilthographic reproduction; for other expenditures necessary and 1939 _CONGRESSIONAL RECORD-HOUSE 2037 inciden tal to post offices of the first, second, and third classes, and Appropriations objects to it and if so what the objection is? offic-es of the fourth class having or to have rural delivery service, I would like to have that brought out. and for letter boxes; for the purchase of atlases and geog~aphical and technical works not to exceed $1,500; for wrapping twme and Mr. BURCH. Mr. Chairman, the Fourth Assistant Post­ tying devices· for expenses incident to the shipment of supplies, master General, Mr. Purdum, makes the statement to me, including ha~dware , boxing, packing, and not exceeding $62,300 for and he has made the same statement to others, that" if this the pay of employees in connection therewith in the District of Co­ lumbia; for rental, purchase, exchange, and repair of canceliD:g provision is stricken from the bill and a similar provision is machines and motors, mechanical mail-handling apparatus, acCI­ not included hereafter, within the course of the next 2 or 3 dent prevention and other labor-saving devices, including cost of years, not to exceed 3 years, they will be able to furnish power in rented buildings and miscellaneous expenses of installa­ tion and operation of same, including not to exceed $35,000 for equipment and boxes to every third-cla.ss post office in the salaries of 13 traveling mechanicians, and for traveling expenses, country. $3,000,000: Provided, That the Postmaster General may authorize [Here the gavel fell.] the sale to the public of post-route maps and rural-delivery maps Mr. O'NEAL. Mr. Chairman, I rise in opposition to the or blue prints at the cost of printing and 10 percent thereof added: Provided further, That no part of this appropriation shall ~e used amendment. to provide post-office lock boxes, furniture, or screen-line equipment Mr. Chairman, this proposition, and the principles relat­ to post offices of the third class, except in those cases where the ing to it, has been discussed for some time. It is a question Department makes a lease for a period of 5 years or longer and the expenditure from this appropriation to provide post-office lock boxes, of both dollars and cents, and of policy. The committee furnit ure, or screen-line equipment shall not exceed the amount has written this provision in the bill primarHy as a matter of allocated for this purpose during the fiscal yea~ 1939. policy. For many years these lockboxes have been furnished Mr. BURCH. Mr. Chairman, I offer an amendment, which by private industry. For how many years I do not know, I send to the Clerk's desk. but a great many. They have been furnished at a reason­ The Clerk read as follows: able cost. There has been no criticism of the boxes or the service. Page 70, line 12, after the word "added;'' strike out the colon, insert a period, and strike out the remamder of the paragraph The Committee has learned that the Government has its through line 20. own equipment shop and if allowed to proceed as it wishes, Mr. BURCH. Mr. Chairman, my amendment strikes out this would mean direct competition with private industry which has been in existence for many years. It would mean the provision which prohibits the Post Office from furnish­ the total elimination of old sound businesses which have been ing lockboxes, furniture, and equipment to third-class post­ in existence for years and which have a right to continue to masters that has been taken from abandoned buildings. exist. Mr. LUDLOW. Will the gentleman yield? The question of cost also enters into this matter. There Mr. BURCH. I yield to the gentleman from Indiana. may be some conflicting opinion, but on page 302 of the hear­ Mr. LUDLOW. I am sure the gentleman does not want ings the statement is made that the excess cost of second­ to make an incorrect statement. It limits them to the hand boxes over new boxes is 65 cents. In other words, amount they used this year, which is $195,000. private industry can do the job, according to these figures, for Mr. BURCH. It goes a little further than that, if I 65 cents per unit less than the Government. This may or understand it correctly. may not be true. Here is the language which my amendment would strike: The testimony is very clear that if this provision is stricken Provided further, That no part of this appropriation shall. be and the Government should pursue this course, it will put used to provide post-office lockboxes, furniture, or screen-line equipment to post offices of the third class, except in those cases people out of business. We allowed a certain sum of money, where the Department makes a lease for a period of 5 years or which will allow the Government to go ahead on the basis longer and the expenditure from this appropriation to provide it has been going ahead previously; but we do not want them post-office lockboxes, furniture, or screen-line eql_lipment shall not to put American business out of business, and incidentally exceed the amount allocated for this purpose durmg the fiscal year these firms are scattered all over the country. There are 1939. nine different companies located in Wisconsin, Connecticut, Mr. Chairman, if that provision is left in the bill the Post Pennsylvania, Michigan, and other States. Office Department will be unable to furnish lockboxes and Mr. Chairman, I feel very strongly about this matter per­ equipment to third-class post offices which have not been sonally. As a committee we should not permit the Federal leased for 5 years or more. There are only 2,100 offices in Government to get into activities which will drive private the United States on which the leases extend for that period business to the wall as long as private business is furnishing of time. I am informed by Mr. Purdum, Fourth Assistant satisfactory service. [Applause.] Postmaster General, it is to·the adv~ntage of the Post Office Mr. SOUTH. Will the gentleman yield? Department and more satisfactory not to make long leases. Mr. O'NEAL. I yield to the gentleman from Texas. In the past year the Fourth Assistant Postmaster General Mr. SOUTH. The gentleman does not consider the welfare has furnished second-hand boxes that have been recondi­ of private business of more importance than the convenience tioned, and boxes that have come out of old post offices which of the public, does he? Does not the gentleman know that have been abandoned to the number of 30,536 boxes. Some these third-class postmasters are poorly paid, and if the of these boxes were reconditioned and some were not. The Government does not provide equipment the postmaster has average cost of the boxes that have been furnished the third­ to do the best he or she can to furnish the service, with the class postmasters is 38% cents. Where the boxes have peen result that the postmaster does not furnish adequate or suffi­ reconditioned the cost has been 62 to 63 cents. You will cient equipment? find this in the testimony given by Mr. Purdum. Mr. O'NEAL. Does the gentleman understand it costs 65 Mr. Chairman, the rental of boxes in third-class post cents more to have the box reconditioned than it does to buy offices from third-class postmasters amounts to over $2,000,- a new one for the little post office? 000 annually. They get none of this rental. That has in­ Mr. SOUTH. I do not believe that. Where did the gentle­ creased very materially since 1936, from $1,968,000 in 1936 man get these figures? to over $2,000,000 in 1938. Mr. O'NEAL. This is the testimony that came to us. I If my amendment is agreed to, the Government will sal­ may say there was a conflict of testimony, but if a little post vage property now owned by it, but if the present provision office, such as the gentleman mentions, wants to have its remains in the bill the lockboxes and furniture that comes boxes reconditioned, and the Government does the work, out of these abandoned buildings cannot and will not be there is testimony in the hearing that it costs 65 cents more used. I understand from Mr. Purdum they now have some­ per box than it would to buy from the concerns who have thing like 70,000 or 80,000 boxes on hand. been making these boxes. I cannot say that the figures are Mr. SOUTH. Will the gentl€man yield? exactly correct. Mr. BURCH. I yield to the gentleman from Texas. Mr. BURCH. Did more than one man make that state­ Mr. SOUTH. I cannot see any objection to the gentle- . . ment? Mr. Baxter made that statement, and he is an oper­ man's amendment and I wonder if the Subcommittee on ator of a manufacturing plant. That was in your hearings. 2038 CONGRESSIONAL RECORD-HOUSE Ji'EBRUARY 28 . Mr. O'NEAL. For 3" years we have had witnesses on both private institutions. n has never been satisfactorily ex­ sides. We have gone into the question of cost. Some say it plained to any of us. costs more and some say it costs less, but I think I am safe I say with all respect that this matter has been threshed in saying-and if the committee members disagree with me out very exhaustively, a hundred times more exhaustively they can say so-that in the opinion of the committee the than the gentleman from Virginia could possibly have con­ cost is greater to the little post office to have a box repaired sidered it, before our subcommittee. We have gone into it by the Federal Government than to purchase it outright from in the utmost detail. We have heard witnesses. Our sub­ private industry. committee is absolutely unanimous, Democratic and Republi­ Ml:. Chairman, I hope the amendment will be rejected. can Members alike, on what ought to be done and what Mr. LUDLOW. Mr. Chairman, I rise in opposition to the ought not to be done. The entire membership, 100 percent, · amendment. is back of the limitation we have written into the bill. If Mr. Chairman, I ask unanimous consent to proceed for 5 the House of Representatives has any confidence in its sub­ additional minutes. conunittee and its diligence, its industry, its conscientious­ The CHAIRMAN. Is there objection to the request of the ness, and its desire to get at the facts and protect everybody gentleman from Indiana? who should be protected, then we ask you to stand by the There was no objection. committee and vote down this amendment. [Applause.] Mr. LUDLOW. Mr. Chairman, I am sure the distin­ Mr. ROMJUE. Mr. Chairman, I move to strike out the guished gentleman from Virginia does not want the Federal last word. Government to come into his district and drive out of busi­ Mr. Chairman, this amendment should be adopted. Of ness old-established and honest private institutions of busi­ course, I am not going to quarrel with the gentleman from ness and put their employees on the relief rolls. Indiana [Mr. LUDLOW] because he has one of these factories Mr. SOUTH. Mr. Chairman, will the gentleman yield? in his home town. Mr. LUDLOW. I cannot yield now. The second thing I want to make clear is that there is Mr. SOUTH. The gentleman has 10 minutes. I should no competition with private business involved in this matter. like a moment to ask a question. Mr. O'NEAL. Mr. Chairman, will the gentieman yield? Mr. LUDLOW." I should like to make a consecutive state­ Mr. ROMJUE. Not now. ment before I yield. There is no competition with private business, because the That is exactly what this means, unless we put on this Government does not manufacture these boxes. limitation. I may state that the gentleman's opening asser­ Mr. LUDLOW. The gentleman does not­ tion, that the Post Office Department cannot go ahead with Mr. ROMJUE. I do not yield for the present. the reconditioning of these boxes under this bill, is entirely The Government does not manufacture these boxes. We erroneous, because in the present year the allocation for are tearing down some old buildings over the country and these boxes and for furniture is $192,800 and we provide in this limitation that they may go ahead and do exactly what building new post-office buildings and, of course, the policy they did this year, but that they shall not go wild, they shall of the Government is that when we build new post-office not run amok and spend any more than that. buildings we put new fixtures in them. We do not want to Mr. BURCH. Mr. Chairman, w111 the gentleman yield? put second-hand fixtures in such new post-office buildings Mr. LUDLOW. Not at the present time. and therefore we have the old equipment left over. These There are nine factories making these boxes and they are left-over fixtures, have to be disposed of in some way. They located in Wisconsin, Connecticut, Pennsylvania, Michigan, are the property of the Government. The Government has Tennessee, California, West Virginia, and Indiana. They paid for them, having bought them from private industry. are all suffering and they are all threatened by this Gov­ Now, the statement that you can make new lockboxes ernment competition. cheaper than you can move these old boxes is all poppycock As the gentleman from Kentucky has said, the evidence and, of course, there is no truth in that. You cannot manu­ that was brought out before our committee is that it costs facture the new article cheaper than you can take the old the Government very considerably more to build these boxes article out of a post office; and, in many cases, groups of for presentation to the postmasters, by the time overhead is these boxes can be taken out of a post-office building and counted in and all the factory costs are evaluated, than it just shipped out and placed in another post-office building costs to buy the boxes directly from the manufacturers. without even dissecting the boxes. Sometimes they polish This is a very ill-advised sort of proceeding. The Govern­ them up, perhaps. ment gains nothing by it. Even if the Government cost of I now want to tell you what Mr. Purdum satd in his testi­ manufacture were less than the boxes cost when new, what mony. Of course, the statement quoted a little while ago in the world would be gained by a little saving at this end of by some speaker against this amendment is what the private the line if it meant throwing employees out of work in manufacturer himself sa.id, but here is what Mr. Purdum, Indiana, Wisconsin, Connecticut, Pennsylvania, and the Fourth Assistant Postmaster General, said when asked this other States, and putting them in the relief lines? question: This matter has been before Congress many years. It first Does it cost more to rehab111tate them than it would to buy new came to my attention when our late beloved Speaker, Mr. boxes? · Byrns, of Tennessee, was the chairman of the subcommittee Mr. Purdum said: occupying the position I now have the honor to occupy. He No, sir; many of those boxes are reinstalled in Presidential thought this was one of the most ill-advised ventures the offices just as they are taken from the vacated Federal buildings. Government had ever entered. Time after time he spoke And he says further: against it and brought in reports in opposition to it. Our figures show that we can install these used boxes at much If you want to embark on a wild and unbridled program less cost than buying the new boxes. of throwing the Government into competition with business, this is your chance. Now, 4 ·years ago. the gentleman from Indiana [Mr. Mr. SOUTH. Mr. Chairman, will the gentleman yield? LUDLOW], on January 28, 1935, complimented Mr. Purdum Mr. LUDLOW. No; I cannot yield. I am sorry; I do not in this language, and this is Mr. LUDLow's statement: have the time. To Smith Purdum, the Fourth Assistant Postmaster General, I doff my hat in unqua.litl.ed admiration. He bas more wide­ This proposal does not stop the Government from recon­ spread knowledge of the Post omce Service than his associates ditioning the boxes. It simply puts a reasonable limitation in Mr. Farley's "kitchen cabinet," because he has been long in on the Government's efforts and is a compromise that the the service, he is the soul of conscientiousness and a symbol of Government in all sense and reason ought to have accepted; devotion to the public interest. but there is a violent prejudice for some reason or other in Mr. LUDLOW. Will the gentleman say just what that has certain quarters of the Post Office Department against these to do wlth this matter? 1939 CONGRESSIONAL RECORD-HOUSE 2039 Mr. ROMJUE. I am just proving what the gentleman the mail of the patrons safe. What happens under the said about Mr. PUrdum, with which I am in accord. terms of the pending amendment? The Post Office Depart­ Here is what he said about Mr. Purdum on the floor of ment furnishes this equipment, and in some cases it had this House on January 28, 1935, at page 1128, on this very not been reconditioned at all, and therefore, it was of no subject: additional expense to the Government. The result being Mr. Purdum ordered surveys made of large quantities of Gov­ that the third-class postmaster was able to render better ernment-owned second-hand furniture and he found with small service to his patrons, and better protection to the mail. · I repairs, much of this furniture which· is really of excellent quality do not think we need to get excited about a few little con­ could be reconditioned and made serviceable fur postal needs. Result, another large saving- cerns making this equipment. They will make it whether the Government buys it or the individual buys it. The only Says Mr. LUDLOW. Now, Mr. Chairman, I hope no one gets difference is that under the plan as defended by the chair­ confused about competition with private business, because man of this committee, you will have serviceable equipment all these boxes are made by private factories and bought by piled up in Government warehouses and not being used. the Government and installed in third-class offices. I submit that the amendment is a sensible amendment; In the last 2 years box rentals have increased over that it is in the interest of the public service and that $110,000. This is revenue coming in. many people will benefit as a result of its adoption. I think Of course, you have a limitation in this bill, and that is the Committee ought to adopt it. [Appl_ause.l what we want to strike out. We have 10,079 third-class post Mr. SWEENEY. Mr. Chairman, with all respect to the offices in this country. Only 2,194 of them are under leases committee, I wish to say I have an affection for the distin­ for any particular length of time. The Government chooses guished chairman of the committee, Mr. LUDLOW, as all of to carry these third-class post-office buildings along under us have, because he is one of the most conscientious workers short-term leases and this provision would prevent the Gov­ in the Congress, yet I think the greatest effort to provide ernment from taidng its own property and installing it in any economy comes from those who present this amendment. of those offices where the Government does not have a lease This fight was fought in the last Congress. The distin­ for 5 years or more. Therefore this amendment should be guished gentleman from Virginia [Mr. BuRcH] gave factual adopted striking out this restrictive feature now appearing in information to this House, and he was so persuasive that the the bill. By adopting this amendment it will permit the Congress passed the bill, and while our distinguished friend Government to use its own property which has already been from Indiana has, as you might say, a duty to protect an bought from private industries through the process of install­ industry in his own district, we should take a wider perspec­ ing in such third-class offices as may require the use of these tive and look at the matter as it affects the Nation as a whole. lockboxes and furniture. The public absorbs these boxes by . Mr. LUDLOW. Mr. Chairman, will the gentleman yield? applying for the use, and this furnishes an increase in reve­ Mr. SWEENEY. I cannot yield now. I have only a few nue to the Government, which the public is glad to pay for minutes. the use of the lockboxes; and if this amendm·ent is not Mr. LUDLOW. But the gentleman does not mean to infer adopted and legislation is enacted in its present form, the that I would do something that t ought not to do. . legislation would not only deprive the public of the use in Mr. SWEENEY. Oh, no; I certainly do not want to leave inany instances of lockboxes unless the Government went that impression at all. But I can recognize the fact that it is out and bought new boxes, and would also deprive the Gov­ everyone's desire to aid industries in his own district. We ernment of considerable revenue. There is nothing sound in have from 70,000 to 90,000 lockboxes stored in warehouses in the argument that the Government can buy new equipment Chicago, Philadelphia, Boston, Denver, Washington, and they cheaper than it can install the present lockboxes into another ought to be in these third-class post offices, where the third­ office. class postmasters are now paying rent for such equipment. . Mr. SOUTH. Mr. Chairman, I move to strike out the last Let me give you an illustration. Take the town of Oldham, two words. Mr. LUDLOW. Mr. Chairman, I wonder if we cannot S. Dak. There the postmaster rented equipment from the reach an agreement on a limitation of time. I ask unanimous Keyless Lock Co. at $165 a year for 7 years. The Department consent, Mr. Chairman, that debate on this paragraph and all bought new equipment from the Morgan Lumber & Manu­ facturing Co. for $822.76. Then in Cumberland, Ky., screen­ amendments thereto conclude in 15 minutes. line only was rented from the Keyless Lock Co. for several Mr-. PACE. Mr. Chairman, I shall be compelled to object years at $273 per annum, and the Department purchased to that, as I have an amendment to offer. new equipment from the Keyless Lock Co. for $1,311.33. This Mr. LUDLOW. Then, Mr. Chairman, I ask unanimous equipment ought to be distributed to the third-class post­ consent that debat.e on this amendment close in 15 minutes. masters. Men getting small salaries have to pay $165 to $180 The CHAIRMAN. Is there objection to the request of the per year for these boxes, which yield no return. It is unfair. gentleman from Indiana? I think this committee is derelict in its duty in this respect. There was no objection. To say that we are putting the Government in business is no Mr. SOUTH. Mr. Chairman, I do not have any great deal answer. The Government has been in business. It has a uni­ of interest in this amendment and I have not given it a form manufacturing plant in Philadelphia; they have muni­ great deal of thought. I am a little surprised at the chair­ tion plants in New Haven, Conn., and it is no defense to say man and other members of the committee taking the posi­ now that this is putting the Government in business. It is tion which they do that it would be economy to prevent the already in business, and with the tremendous amount of third-class post offices from using discarded fixtures that equipment we have on hand I think this Congress owes itself have been taken out of first-class offices. Much is said about the duty of passing this amendment. the manufacturer of this equipment. Who is entitled to the Mr. SOUTH. Mr. Chairman, will the gentleman yield? most consideration, the public or the manufacturer? Who paid for the equipment in the first place? The public. And Mr. SWEENEY. Yes. who will be benefited by the amendment offered by the Mr. SOUTH. Is it not a fact that aside from the matter of gentleman from Virginia, that is, by. a more liberal use of who furnishes the equipment, the public will get better service this discarded equipment? The public. The only serious if this amendment is adopted and this equipment put into the argument that has been made here is that certain equipment various third-class post offices? companies will suffer. I submit that, after all, the patrons Mr. SWEENEY. I think the gentleman is correct. of the third-class offices, situated in all of our districts, are Mr. MURDOCK of Utah. Is it true that some of the boxes of more importance than a few manufacturing concerns. that have been taken out of first-class post offices are used The actual application of the proposition is this. In my without reconditioning? own district I have had some three or four third-class post­ Mr. SWEENEY. That is true. masters on salaries of some $1,200 a year, who have not been Mr. O'NEAL. Mr. Chairman, will the gentleman yield? able to buy or otherwise provide sufficient equipment to make Mr. SWEENEY. Yes. 2040 CONGRESSIONAL RECORD-HOUSE :FEBRUARY 28 Mr. O'NEAL. I rise to make a comment about the gentle:· $325,000. For the last 18 years your man and mine, trans­ man from Indiana [Mr. LUDLow]. There is no man on the ported by your Post Office Department, has been wrapped in· committee who does not know that Mr. LUDLow would vote jute, a commodity produced thousands of miles from Ameri­ against his district at any time when it was a matter of can shores. right, and I say further that every member of the committee I make no attempt in my amendment, for none is neces­ knows that Mr. LUDLOW is in favor of economy, and would sary, to increase the appropriation. I do not ask, as I not do anything that would in any way reflect upon his honor. should, that the twine used by your Post Office Depar-t­ Mr. SWEENEY. I appreciate the contribution the gentle­ ment should be made of American products entirely. I man has made. I again reaffirm my faith in the gentleman simply ask that you at least, or the postal authorities, at from Indiana [Mr. LUDLow]. He is one of the most dis­ least give the American commodities a 50-50 chance. My tinguished Members of this House, but in view of the fact amendment provides that not more than one-half of this that the Fourth Assistant Postmaster General has appeared money shall be expended for twine manufactured from ma­ before the committee time and time again recommending terials grown outside the United States. Is it unreasonable this amendment, I believe his recommendation should be that I should object, with 15,000,000 bales of cotton lying supported. [Applause.] in the warehouses, with your own Government holding [Here the gavel fell.] 11,200,000 bales under loans of approximately $600,000,000, Mr. TABER. Mr. Chairman, I rise in opposition to the that I should ask that you at least in part give the Ameri­ amendment. can farmer the American market? [Applause.] · This is an item that was originally carried in the bill, as The Appropriations Committee, I understand, states that we are carrying it now, written by the late Joseph W. Byrns, it wants more time, after 18 years of investigating this ques­ former Speaker of the House, when he was chairman of the tion. I ask you to turn to page 14 of this bill and see how Committee on Appropriations. It was designed to prevent, much time they gave in helping the paper manufacturers of as far as it might, the wasteful procedure in the equipment this Nation. On page 14 you see an appropriation of $851,000 shops in the city of Washington, whereby the outfit there for fancy paper, approximately three times as much as that spends more money to rehabilitate these boxes than it for twine, and listen to the provision which the Appropria­ would cost to buy new boxes. There is no attempt on the tions Committee has inserted for the benefit of the paper part of the committee to prevent money being spent to pro­ manufacturers. The committee insists that the jute manu­ vide boxes to third-class offices, because with this provision facturer has submitted the lowest bid on twine, and, there­ carried as it is $192,000 may be spent. But the committee fore, they must have all the twine business, regardless of would require the item to be kept within reason, and would the condition of the cotton farmers of the South, but when require a situation where some funds would have to be spent the Secretary of the Treasury wants to get some fancy paper to buy boxes, which can be bought for $1.25. on which to print more Government bonds the committee: I tried to find out from Mr. Purdum what he thought it authorizes him to disregard the requirement with respect to. was costing for the rehabilitation of these boxes. I received accepting the low bid. Here is the provision they have writ­ a statement, on page 308 of the hearings, which left out ten in at page 14: about two-thirds of the items of cost, and, where it did give That in order to foster competition in the manufacture of dis-· the items of cost, they were more than the private manu­ tinctive paper for the United States securities the Secretary of facturers claimed it was costing the Government. With the Treasury is authorized in his discretion to split the award for such paper for the fiscal year 1940 between the two bidders whose that picture so clear that it is a~ extravagance to put the prices per pound are the lowest received. Government into the business of rehabilitation of boxes fur­ ther than it should go, and it is costing it more to rehabili­ · Understand me~ I do not want to mislead you. Year be­ tate the boxes than it is to buy new boxes, I think this House fore last there was no bidder on cotton twine. I will tell should sustain the position of the committee and refuse to you why. You know we are happy in the security, I think, adopt this amendment. that we have a competitive bidding system in our Govern-· [Here the gavel fell.] ment, but have·you ever stopped to think that you leave it The CHAIRMAN. All time has expired. The question is to the head of the department to draw the specifications? on the amendment offered by the gentleman from Virginia Just this week I was given an illustration by the head of a [Mr. BURCH]. . department. They moved the headquarters from one place' The question was taken; and on a division (demanded by to another; had to rent new quarters. They were supposed Mr. BuRCH) there were ayes 69 and noes 47. to have done it by competitive bidding, and they did, but. Mr. LUDLOW. Mr. Chairman, I ask for tellers. they did not advertise that they wanted 5,000 feet of office Tellers were refused. space. Do you know what they did? They went to the city So the amendment was agreed to. they _were to move to, picked. out the offices they wanted, and Mr. PACE. Mr. Chairman, I offer an amendment. then drew the specifications and issued the advertisement: The Clerk read as follows: There was, of course, exactly one bidder in the United States that could bid on it. Amendment offered by Mr. PACE: On page 69, line 24, after the word "devices", add the following in parentheses: "(not more than Let us tum to the hearings of last year. The committee one-half of the funds herein appropriated for the purchase of twine asked us why we did not come before them. I did not come shall be expended in the purchase of twine manufactured from befo.re ·the committee because the hearings were held on the materials or commodities produced outside the United States)." 16th day of last December, when I was a long, long way from Mr. PACE. Mr. Chairman, I ask unanimous consent that the city -of Washington. But let us look at the hearings on I may proceed for an additional 5 minutes. the 1939 bill; let us see what we find. It is given on page 303: The CHAffiMAN. Is there objection to the request of the Mr. Trexler, who, I presume, is the purchasing officer for gentleman from Georgia? the Department, said: There was no objection. The last time a representative of the jute-manufacturing indus-· Mr. LUDLOW. Mr. Chairman. I wonder if we can reach try was in my office he said that the next time we advertised for jute twine the price was going to be even higher. When the last an agreement on time? I ask unanimous consent that all proposals were called for, there were no bids on cotton twine. This debate on this amendment may close in 20 minutes. year there was a bidder on cotton twine. The bid on jute was The CHAIRMAN. Is there objection? 11.25 cents a pound. The lowest bid on cotton was 14.50 cents a There was no objection. pound. Mr. PACE. Mr. Chairman, it is somewhat embarrassing Under that figure, they say, it is going to cost a little more for an American citizen to have to come before an American to use cotton and other American commodities. Suppose it Congress to insist that one of the great departments of the does, you have a buy-American law that authorizes a differ­ American Government use American commodities. · ential of 25 percent; but I submit to you if you will give This bill carries $325,000 for the purchase of twine. The cotton a chance, if you will tell that Department down there item last year was $292,000. In this bill .it is increased to . they must write their specifications so as to be fair to cotton, _193~ PONGRESSIONAL RECORD-HOUSE 2041 they can arrange those· specifications ·so they will give the and will tend to increase cotton production in foreign cotton manufacturers an equal chance of making a suitable countries. twine to compete with the jute twine. I do not want to beg you to do anything, but I do hope Today we are paying a subsidy on wheat of 27 cents a you can understand the position we are in and that the bushel for sale in foreign countries. That is a subsidy of 50 Appropriations Committee, which is in charge of this bill, percent. Do you realize that? It is a 50-percent subsidy. will not fight my amendment. When I questioned the chair­ I am not complaining of what our Government has done to man of that committee concerning this matter during gen­ help the farmer of the South who produces cotton; you have eral debate last Friday be said that the· committee and the done a great deal. At this hour you are spending millions of Post Office Department wanted to investigate the matter dollars to find new uses for cotton, yet here is a use right further. It seems to me that 18 years is long enough and under your nose that I will guarantee under this amendment -the time has come to act. will not cost the American Government over $1,000 or $2,000 May I repeat-the American farmer is entitled to the additional. American market; he is entitled to sell his own products to Is it unreasonable that the people in the South, who are his own Government. My amendment gives you an oppor­ trying to stay in the· cotton business, who do not want to go tunity to see that he gets it. at least in part. I hope you into the wheat business, to set up new farm practices unless will adopt the amendment. it becomes absolutely necessary-:-is it unreasonable to ask The CHAIRMAN. The Chair recognizes the gentleman an American Congress to give the American cotton pro­ from Massachusetts [Mr. CLASoN] for 3 minutes. ducer under existing conditions at least at 50-50 chance at Mr. CLASON. Mr. Chairman, the gentleman from the business of the American Government? Georgia says he wishes to be fair to the American public Mr. SCHAFER of Wisconsin. Mr. Chairman, will the in regard to his amendment. I certainly want to be fair gentleman yield? also. He has already told us that for 18 years the Post Mr. PACE. I yield. Office Department has been using jute twine. This twine Mr. SCHAFER of Wisconsin. Why not give them a 100- is not made abroad. The raw material, the jute, comes in l:>ercent chance? Why limit it to 50-50 when you have such here and is fabricated into twine in the United States. If a deplorable situation? the amendment offered by the gentleman were adopted, an Mr. PACE. I will tell the gentleman why. They contend additional subsidy beyond the 25-percent allowance already given to cotton goods would be given to the cotton industry. they want to investigate it more, that it costs a little more The result might be to throw out of work for 6 months for cotton twine; and I am willing to make a start after 18 300 people in Massachusetts and 300 people in Pennsylvania long years to. make it merely 50-50 and let cotton and jute who have bee!l accustomed to employment in this work for get on the line, and then I am willing to accept the conse­ the· last 18 years. quences. That is the reason. I admit to the gentleman I ask, Is it fair to start up a new industry which will, in that it is embarrassing now to me to come here and ask the first place throw out of work 600 citizens who have for only half when we are entitled to all, but I am doing it in been accustomed to this type of work and make idle the view of the conditions; I am doing it because above all machinery that makes this product-to do this in order things on earth I want to be fair, I want to be fair to every further to subsidize a product which already has the ad­ commodity and to every section, and I want no more than vantage of the buy-American plan; in other words, has a 25- I can prove I am entitled to. I have never asked for more percent advantage on price because it is cotton? For 18 than my fair ~hare, and I shall never be satisfied with less. · years the Pest Office Department has got along with jute My amendment will not require any increase in the ap­ twine. There is no question about its being satisfactory. It propriation. If it should develop that the cotton twine answers the needs and requirements of the Postal Service. should cost a little more than the jute twine, I am sure a Why at this late date do the cotton interests come in and little economy in the use of twine will more than save the say: 'We are not making cotton twine for this particular difference. kind of job. We have got to bid more than 25 percent The cotton farmer of the South is facing a critical situa­ more than the Post Office is able to obtain jute . twine for, tion and his future is very uncertain. The present surplus of and yet we insist on having this business." I feel this way cotton is the greatest in history, with 15,000,000 bales in this about it: For 18 years we have allowed this industry to be country and an equal quantity in foreign countries. built up by a company with mills in Ludlow, Mass.; Allen­ On top of that our exports or foreign sales have dropped town, Pa.; and Savannah, Ga. down to what they were in 1880, or 60 years ago. It is We have allowed these employees to carry on their work, doubtful that we will export as much as 4,000,000 bales this build their homes, and raise their families. We have allowed year. the cotton people a 25-percent advantage over us so far In addition, the use of cotton in this country is becoming as price is concerned. Think of these 600 people and their less and less, due to the rapid increase of substitutes for families and do not wipe them out arbitrarily. cotton and the failure of business to expand in a n~rmal Mr. Chairman, this Committee has heard all the evidence. way. It has heard this evidence year after year and this amend­ At this time it seems that our principal hope lies in in­ ment has been offered year after year. The Committee creasing the consumption of cotton by finding new uses for has decided, in fairness to the Post Office Department, to the it. My amendment provides one new use by substituting taxpayers, and to the people engaged in this jute industry, cotton twine for jute twine in the Post Office Department. that it is sufficient to give the cotton people a 25-percent I propose to later suggest the same change in the hundreds advantage in price on every bid of this character. of other departments and agencies of the Federal Govern­ [Here the gavel fell.] ment, and in all it will bring about a substantial increase in Mr. O'NEAL. Mr. Chairman, I rise in opposition to the the use of cotton. amendment offered by the gentleman from Georgia [Mr. The cotton farmer is not receiving cost of production. He PACE]. would not be receiving even 8 cents per pound were it not Mr. Chairman, a great many things could be brought into for the Government loan. Under the loan program the Gov­ the debate. We could mention patriotism, as did the gentle­ ernment has already accumulated 11,200,000 bales of cotton, man from Georgia. We could mention helping the cotton and we all realize that this cannot go on forever; we know farmers. We could mention a great many things. But I loans in excess of world prices camnot continue very long think the Committee should reason this proposition out,

on a commodity which is dependent on world trade for at 1 having all the facts before it, then decide what is right least half of its market. We must soon begin paying export and what is wrong. subsidies, as you are now doing for wheat, or you must in­ What is right and what is wrong? It is perfectly clear crease the uses of cotton. If we reduce cotton acreage much that all of us want to buy American-made goods. We have more it will throw millions of southern people out of work a provision in the law which encourages the purchase of LXXXIV--129 2042 CONGRESSIONAL RECORD-HOUSE FEBRUARY 28 American-made goods.. However, we do not say in that law rial necessary for same, and for incidental expenses pertaining thereto; material, machinery, and tools necessary for the manu­ that no foreign goods should ever be used. With reference facture and repair of such other equipment for the Postal Service to the twine used in the Post Office Department, although as may be deemed expedient; accident prevention; for the expenses the Department states it could use cotton twine, it is a of maintenance and repair of the mail bag equipment shops build­ matter of common knowledge that cotton stretches more ing and equipment, including fuel, light, power, and miscellaneous supplies and services; maintenance of grounds; for compensation than jute. to labor employed in the equipment shops and in the operation, Mr. Chairman, the cotton people have never bid on the care, maintenance, and protection of the equipment shops build­ total needs of the Post Office Department, with the excep­ ing, grounds, and equipment, $1,200,000, of which not to exceed tion of this year, when they did bid on the total needs of $635,000 may be expended for personal services in the District of Columbia: Provided, That out or' this appropriation the Postmaster the Post Office Department and they were 3 Y4 cents higher General is authorized to use as much of the sum, not exceeding than the jute people. They had an advantage, and if they $15,000, as may be deemed necessary for the purchase of material had bid one-fourth of a cent less they would have gotten the and the manufacture in the equipment shops of such small quan­ tities of distinctive equipments as may be required by other execu­ entire business on the buy American plan; however, as I tive departments; and for service in Alaska, Puerto Rico, Philippine stated, their price was 3Y4 cents higher than the jute. Islands, Hawaii, or other island possessions. Speaking about patriotism, may I say that the factories could have bought cotton at 5 cents a pound. In buying this Mr. O'CONNOR. Mr. Chairman, I move to strike out the cotton at 5 cents a pound and in the processing of the twine, last word. in my judgment, they could have made a price certainly less Now that the Committee has decided they do not want to change the plan adopted in 1937 with reference to the con­ than 14% cents, probably very close to llY<~ cents. So·when we begin talking about helping the cotton farmer, let us struction of post-office buildings throughout the various con­ reflect that it is the man who buys the cotton and processes it gressional districts in the United States, by rejecting my who makes the bid and who is trying to get the contract, just amendment, I wish to ask the gentleman from Kentucky the same as the man who processes the jute. Incidentally, [Mr. O'NEAL], a member of the committee, what is the pur­ since the price of cotton is that much higher, it seems to me pose of publishing the list on the extreme right of House his remedy is not to come in here and make a patriotic ap­ Document 177, which intimates to the public they are going peal and plead with us not to make him conform to strict to get new post-o~ce buildings in their towns when they business· standards, and to ask us to ·force the Post Office are not? We Congressmen, and particularly I in my own Department to give him half the business. The-cotton people district; are constantly being asked the question, "When do instead should tell us, "You are buying at a price that is fair we get our p~t-office building for which provision already enough. I want you to have every opportunity to let the has been made?". - - contract on a business competitive basis." Mr. TABER. Mr. Chairman, will the gentleman yield? This whole thing only involves 5,000 bales of cotton. The Mr. O'CONNOR. No; I do not have time to yield. Post Office Department has not been unkind to the cotton In other words, the GOvernment of the United States people. Back in 1938 it bought 2,416,000 yards of cotton duck through some agency lets the people believe by these publi­ and paid the cotton manufacturers $630,500. In 1939 it cations that they are going to get post-office buildings when bought 3,023,000 yards of cotton duck and paid the cotton they are not. On one side of this document is a list of manufacturers $551,000. authorized post-office buildings, and next to it is another iist. Mr. Chairman, when the jute is manufactured only 10 per­ It took the expert interpretation the other day of the gentle­ cent of the cost is the original purchase price. Ninety per­ man from New York [Mr. TABER] to tell the House just cent goes to American labor and American manufacturers. what that document meant. I should like to ask what is the May I say in conclusion, I do not believe we ought to say purpose of putting out such information as that because it to the manufacturers of cotton goods, "We are not only is at least misleading if not deceiving. The publici think they going to give you a 25-percent differential over the other fel­ are going to get something when they are not. low but we are going to make the Post Office Department Mr. O'NEAL. I may say to the gentleman this is the ap­ give you half of the business." That is un-American. It proved list of the Post O:tnce Department that states which does not conform to the standards of American fair play and towns can qualify for public buildings. The remedy of the American business. gentleman is to go before the Public Buildings Committee and Mr. Chairman, I ask that the pending amendment be urge the passage of a bill to have the thing done the way he voted down. wants it done. · Mr. PACE . . Will the gentleman yield? Mr. O'CONNOR. What is the purpose of declaring these Mr. O'NEAL. I yield to the gentleman from Georgia. cities eligible for po~t offices when under the present system Mr. PACE. Does the gentleman realize that we could get and under the plan adopted in 1937 it would take 51 years in a little better degree of fairness due to the fact there is more my own district to carry out the program and give the people yardage in a pound of cotton twine than there is in a pound the post offices in the cities that have been declared by the of jute twine, yet the Department insists on buying on a Government to have been eligible? poundage basis and not on a yardage basis? . Mr. O'NEAL. The receipts have been sufficient to justify Mr. O'NEAL. If the gentleman has an advantage of that these towns being placed on the list known as the approved sort, it would help him that much more in bidding and if list. he would put in his bid based on, the question of price he Mr. O'CONNOR. But why publish that list and give the would get the business. people the idea they are going to get these post-office build­ [Here the gavel fell.] ings when they are not? The CHAffiMAN. The question is on the amendment of..: Mr. TABER. Mr. Chairman, if the gentleman will yield I fered by the gentleman from Georgia [Mr. PAcEJ. will tell him. The question was taken; and on a division (demanded by Mr. O'CONNOR. I yield to the gentleman from New York. Mr. PAcE) there were-ayes 66, noes 84. Mr. TABER. The list in the last column is placed in the Mr. PACE. Mr. Chairman, I do not want to take up the communication from the Procurement Division as propa­ time of the Committee unnecessarily, but I ask for tellers. ganda to create agitation for post offices in those places. Tellers were ordered, and the Chair appointed Mr. O'NEAL Mr. RICH. Mr. Chairman, will the gentleman yield? and Mr. PACE to act as tellers. Mr. O'CONNOR. I yield to the gentleman from Pennsyl­ The Committee again divided; and the tellers reported vania. there were-ayes 74, noes 103. Mr. RICH. I may say to the gentleman there is included So the amendment was rejected. in that list a $75,000 pest office for my little town of Wool­ The Clerk read as follows: rich, Pa. Let me say I am for saving the Government money Equipment shops, Washington, D. C.: For the purchase manu­ and if the Post Office Department builds that post office 1~ facture, and repair of mail bags and other ma.n contai~ers and Woolric~h, I will think the whole Congress is crazY. We have attachments, mail locks, keys, chains, tools, machtilery, a.nd mate- to stop building these post offices. To build every one of 193.9 ()ONGRESSIONAL RECORD-- HOUS.;m 2043 these post offices wm increase ·the cost of government from Holmes Lord Risk Talle Hope Luce Robsion, Ky. Taylor, Tenn. 200 to 500 percent. Horton McLeod Rockefeller Thill Mr. O'CONNOR. If we are not going to build these post Hull Mapes · Rodgers, Pa. Thomas, N.J. offices, we should quit kidding .the pubic about the matter. Jenkins, Ohio Marshall Rogers, Mass. Thorkelson Jensen Martin, Iowa Routzahn . Tibbott Mr. POAGE. Mr. Chairman, will the gentleman ·yield? Johns Martin, Mass. Rutherford Tinkham Mr. O'CONNOR. I yield to the gentleman from Texas. Johnson, Til. Michener Sandager Treadway Johnson, Ind. Miller Schafer, Wis. Van ·Zandt Mr. POAGE. Does the gentleman know that not only the Jones, Ohio Monkiewicz Schifiler Vorys, Ohio buildings to be built for the next 51 years are fisted but those Kean Mundt Seccombe Wadsworth that have been built 'in the last 5 or 6 years as well? My Keefe Murray Shafer, Mich. Wheat Kennedy, Martin O'Brien Short White, Ohio home-town newspaper, published last week, stated that the Kinzer Oliver Simpson Wigglesworth postmaster was at a loss to -know why Waco was going to get Knutson Pierce, N.Y. Smith, Maine Williams, Del. Kunkel Pittenger Smith, Ohio Wolcott a po·st-office building, because he opened a new post office 2 Lambertson Powers South Wolfenden, Pa. years ago, and he could not figure out why we should have a Landis Reed,lll. Springer Wolverton, N.J. new one unless they were going to -build a basement or an LeCompte Reed, N.Y. Stefan Woodruff, Mich. Lemke Rees,Kans. Sumner,ru. Youngdahl addition to that post office. Lewis, Ohio Rich Taber Mr. O'CONNOR. We should get busy in the right depart­ NAY8-197 ment and see that such misinformation is no longer published. Allen, La. Dempsey Kerr Polk [Applause.] Allen, Pa. Dickstein Kilday Ramspeck Anderson, Mo. Doxey Kirwan Randolph The Clerk concluded the reading of the bill. Arnold Drewry Kitchens Rankin Mr. LUDLOW. Mr. Chairman, I move that the Commit­ Ashbrook Duncan Kleberg Rayburn Barden Dunn Kramer Richards tee do now rise and report the bill back to the· House with Barry Durham Lanham Robertson 'Sundry amendments, :with the recommendations that the Bates, Ky. Dworshak Larrabee Robinson, Utah amendments be agreed to and that the bill as amended ·do Beckworth Eberharter Lea Rogers, Ol~la~ Bell Edmiston Leavy Romjue pass. Bland Evans Lesinski Ryan The motion was agreed to. Bloom Faddis L-ewis, Colo. Sacks Accordingly the Committee ·Fose; and the Speaker having Boehne Ferguson Ludlow Satterfield Boland Fitzpatrick McArdle Schaefer, lll. resumed the chair, Mr. BoEHNE, Chairman of the Committee Boren Flaherty McCormack Schulte of the 'Whole House on the -state· of the Union, reported that Bradley, Pa. Flannagan McGehee Scrugham Brooks Flannery McGranery Secrest that Committee, having had under consideration the bill Brown, Ga. Folger .McLaughlin Shanley (H. R. 4492) making appropriations for the Treasury and Bryson Ford, Miss. McMillan, JohnL.Sheppard Pest Office Deparlments f0r the fiscal ·year ending Jun-e 30, Buck Ford, Thomas F. Maciejewski Sirovich Buckler, Minn.­ Fries Mahon . Smith, Conn, 1940, and for other purposes, had directed him to report Bulwinkle Fulmer Mansfield Smith, Va. the same back to the 'House with sundry amendments, with Burch -Garrett Marcantonio ·smith, Wash. to Burgin Gathings Martin, Colo. Smith, W.Va. the recommendation that the amendments be agreed and Byrne, N . .Y. -Gavagfm. Martin, Til. Snyder that -the bill, as amended, clo .pass. Byrns, Tenn. Geyer, Cali!, Massingale Somers, N.Y. Mr. LUDLOW. Mr. Speaker, I move the previous ques­ Caldwell Gore May Sparkman Cannon, Mo. Gossett Merritt Spence tion on the bill and all amendments thereto to final passage. Cartwright Grant, Ala. Mills, La. Starnes, Ala. The previous question was ordered. · Celler Green Monroney Steagall The SPEAKER. Is a separate vote demanded on any Chandler Gregory Moser Tarver Clark Hare -Mouton Tenerowicz amendment? If not, the Chair will put them en gross. Claypool Harrington Murdock, Ariz. Terry The amendments were agreed to. Cochran Hart Murdock, Utah Thomas, Tex. Coffee, Nebr. Harter, Ohio Myers Thomason The bill was ordered to be engrossed and read a third time, Coffee, Wash. Hill Nelson Tolan and was read the third time. Cole,Md. Hobbs Nichols Turner Mr. TABER. Mr. Speaker, I offer a motion to recommit. Collins Hook Norrell Voorhis, Cali!. Colmer Houston O'Connor Wallgren The SPEAKER. ·Is the gentleman opposed to the bill? Connery Hunter O'Day Walter Mr. TABER. I am, Mr. Speaker. Cooley Izac O'Neal Warren Cooper Jarman Owen Weaver The SPEAKER. The Clerk will Tepor-t the motion to re­ Costello Johnson,L-utherA.Parsons West commit of the gentleman from New York. Cox Johnson, Okla. Patman White, Idaho Crosser Johnson, W.Va. "Patton Whittington The Clerk read as follows: Crowe J"ones, Tex. Pearson Williams, Mo. Mr. TABER moves to recommit the bill to the Committee on Cullen Kee Peterson, Fla. Zimmerman Appropriations with instructions to report the bill back forth­ Cummings Keller Peterson, Ga. with with the following amendment: On page 45, line 5, after the D'Alesandro Kennedy, Md. Pierce, Oreg. comma, strike out "$2,016,000" and insert "$1,916,000" and the Delaney Keogh Poage following: "Provided, That none of the funds appropriated Jn this NOT"VOTING-93 bill shall be used for carrying out the purchase of any silver except Andrews Douglas Kocis.lkowski Sabath newly mined silver mined in the United States." Barnes Eaton, Cali!. McAndrews Sasscer Bates, Mass. Elliott McDowell Schuetz The SPEAKER. The question is on the motion of the Beam Ellis McKeough Schwert Bender Fay McLean Seger gentleman from New York [Mr. TABERJ. Bolton Fernandez McMillan, Thos. S.Shannon The question was taken; and on a division (demanded by Boykin Ford, Leland M. McReynolds Smith, lll. Mr. TABER) there were-ayes 102, noes 137. Buckley, N.Y. Gibbs Maas Stearns, N.H. Byron Goldsborough Magnuson Sullivan Mr. TABER. Mr. Speaker, I demand the yeas and nays. cannon, Fla. Grimth Maloney Sumners, Tex. The yeas and nays were ordered . . Carter Hall Mason Sutphin The question was taken; and there were-yeas 143, nays Casey, Mass. Hartley 'Mills, Ark. Sweeney Chapman Havenner Mitchell Taylor, Colo. 197, 11ot voting 93, -as follows: Cole, N.Y. Healey Matt Vincent, Ky. [Roll No. 20] Corb-ett HendriCks No.rton Vinson, Ga. Creal Hennings O'Leary Vreeland YEA8-143 Curley Hess Osmers Welch Alexander "Burdick · Dondero Gillie Daly Jacobsen O'Toole Whelchel Allen, Ill. Carlson Dowell Graham Darden Jarrett Pace Winter Andersen, H. Carl Case, S. Dak. Eaton, N.J. Grant, Ind. DeRouen Jeffries Patrick Wood Anderson, Calif. Chiperfield Elston Griswold Dies Jenks, N.H. Pfeifer Woodrum, Va. Andresen, A. H. Church Engel Gross Dingell Johnson, Lyndon Plumley Angell Clason Englebright Guyer, Kans. Disney- •Kelly - Rabaut Arends Clevenger Fenton Gwynne Doughton Xennedy, Michael Reece, Tenn. Austin Cluett Fish Halleck Ball Crawford Gamble Hancock So the motion to recommit was rejected. Barton Crowther Gartner Harness The Clerk announced the following pairs,: Blackney Culkin Gearhart Harter, N.Y. Bolles Curtis Gehrmann Hawks On this vote: Bradley, Mich. Darrow Getla-ch Heinke Mr. Jarrett (for) with Mr. Barnes (against) •. Brewster Dirksen Gifford Hinshaw Mr. Andrews (for) with Mr. Darden (against)_, Brown, Ohio Ditter Gilchrist 'Hoffman Mr. Bolton (for). with Mr. Havenner (against). 2044 ~ONGRESSIONAL RECORD-HOUSE ~EBRUARY 28 Mr. Corbett (for) wlth Mr. Healey (against). Mr. SHAFER of Michigan. Mr. Speaker, I ask unani­ Mr. Bender (for) with Mr. Fay (against). Mr. Hall (for) · with Mr. Daly (against). mous consent to extend my remarks in the RECORD and to Mr. Hartley (for) with Mr. Hennings (against). include therein a memorial from the Michigan State Senate. Mr. Plumley (for) with Mr. Fernandez (against). The SPEAKER. Is there objection? Mr. Hess (for) with Mr. Daughton (against). Mr. Mason (for) with Mr. Rabaut (against) . There was no objection. Mr. McLean (for) with Mr. Kelly (against). Mr. O'CONNOR. Mr. Speaker, I ask unanimous consent Mr. Winter (for) with Mr. McAndrews (against). Mr. McDowell (for) with Mr. Schwert (against). to extend my remarks in the RECORD and to include therein Mr. Eaton of California (for) with Mr. Pfeifer (against). House Document 177. Mr. Douglas (for) with Mr. O'Leary (against). The SPEAKER. Is there objection? Mr. Reece of Tennessee (for) with Mr. O'Toole (against) • Mr. Seger (for) with Mr. Taylor of Colorado (against). There was no objection. M!· Cole of New York (for) with . Mr. Woodrum of Virginia Mr. STARNES of Alabama. Mr. Speaker, I ask unani­ (against) . mous consent to extend my remarks in the RECORD upon Mr. Osmers (for) with Mr. Maloney (against). the subject of the Public Works Administration bill (H. R. General pairs: 4576) which I introduced today and also upon the subject of Mr. McReynolds with Mr. Carter. navigation. Mr. Vinson of Georgia with Mr. Jefferies. Mr. Sullivan with Mr. Mott. The SPEAKER. Is there objection? Mr. Beam with Mr. Stearns. There was no objection. Mr. DeRouen with Mr. Maas. Mr. McGRANERY. Mr. Speaker, I ask unanimous consent Mr. Dies with Mr. Jenks of New Hampshire. Mr. Boykin with Mr. Leland M. Ford. to extend my own remarks. Mr. McKeough with Mr. Vreeland. The SPEAKER. Without objection it is so ordered. Mr. Griffi';h with Mr. Bates. Mr. Sabath with Mr. Welch. There was no objection. Mr. Gibbs with Mr. Jacobsen. Mr. BROWN of Ohio. Mr. Speaker, I ask unanimous con­ Mr. Smith of IDinois with Mr. Byron. sent to extend my own remarks and include excerpts from Mr. Sutphin with Mr. Cannon of Florida. Mr. Buckley of New York with Mr. Lyndon B. Johnson. an address delivered by the Honorable RoBERT A. TAFT, of Mr. Michael J . Kennedy with 1.41'. Sweeney. Ohio, on the farm problem. Mr. Casey with Mr. Wood. Mr. Kocialkowski with Mr. Vincent of Kentucky. The SPEAKER. Is there objection? Mr: Whelchel with Mr. Chapman. There was no objection. Mr. Thomas S. McMillan with Mr. Curley. Mr. CRAWFORD. Mr. Speaker, I ask unanimous consent Mr. Creal with Mr. Magnuson. Mr. Dingell with Mr. Schuetz. to extend my own remarks on the bill under co"nsideration Mr. Mills of Arkansas with Mr. Elliott. this afternoon and to include a few excerpts from the annual Mrs. Norton with Mr. Shannon. Mr. Patrick with Mr. Disney. report of the Director of the Mint and the Secretary of the Mr. Pace with Mr. Sasscer, Treasury. The result of the vote was announced as above recorded. The SPEAKER. Is there objection? The SPEAKER. The question is on the passage of the There was no objection. bill. Mr. CELLER. Mr. Speaker, I ask unanimous consent to The question was taken, and the bill was passed; and a extend my own remarks. motipn to recqnsider the vote by which the bill was passed The SPEAKER. Without objection, it is so ordered. was laid on the table. There was no objection; EXTENSION OF REMARKS Mr. GEYER of California. Mr. Speaker, I ask unanimous consent to extend my own remarks and include a letter I Mr. HARTER of Ohio. Mr. Speaker, I ask unanimous have written to Walter Winchell. consent to extend my remarks in the RECORD and to include The SPEAKER. Is there objection? therein an address made by Col. Stephen A. Park, president There was no objection. of the National Reserve Officers' Association of the United Mr. RANDOLPH. Mr. Speaker, I ask unanimous consent States. to extend my own remarks in the RECORD on the subject The SPEAKER. Is there objection? of National Aviation Day, and to include therewith a state­ There was no objection. ment by Col. J. E. Myers, a retired officer, in favor of such Mr. MARTIN of Colorado. Mr. Speaker, I ask unanimous celebration. consent to extend my remarks in the RECORD on the bill The SPEAKER . . Is there objection? passed this afternoon and to include a short paragraph from There was no objection. the RECORD of a prior debate upon this bill. By unanimous consent, Mr. FENTON and Mr. SPRINGER were The SPEAKER. Is there objection? - gl'anted permission to extend their own remarks. There was no objection. Mr. COFFEE of Washington. Mr. Speaker, I ask unani­ Mr. ANDERSON of Missouri. Mr. Speaker, I ask unani­ mous consent to extend my own remarks on two different mous consent to extend my remarks in the RECORD and to subject matters and include a letter respectively relating to include therein an address delivered by David A. McMullen. each. The SPEAKER. Is there objection? Mr. SPEAKER. Is there objection? There was no objection. There was no objection. · Mr. TURNER. Mr. Speaker, I ask unanimous consent to extend my remarks in the RECORD and to include therein Mr. TENEROWICZ. Mr. Speaker, I ask unanimous con­ Senate Joint Resolution 14, passed by the General Assembly sent to extend my own remarks commemorating the one of the State of Tennessee. hundred and ninety-second anniversary of the birth of The SPEAKER. Is there objection? General Casimir Pulaski. There was no objection. The SPEAKER. Without objection, it is so ordered. Mr. CARTWRIGHT. Mr. Speaker, I ask unanimous con­ There was no objection. sent to extend my own remarks in the RECORD and to in­ Mr. SIROVICH. Mr. Speaker, I ask unanimous consent clude therein an address delivered by former Senator Robert to extend my own remarks by printing a speech I delivered L. Owen. on the floor of the House. The SPEAKER. Is there objection? The SPEAKER. Is there objection? There was no objection. There was no objection. Mrs. ROGERS of Massachusetts. Mr. Speaker, I ask Mr. DIMOND. Mr. Speaker, I ask unanimous consent to unanimous consent to extend my remarks in the RECORD revise and extend the remarks I made today in Committee and to include therein a copy of an amendment to the Na­ of the Whole House on the state of the Union, and to in­ tional Cancer Institute bill which I introduced this after­ clude therein some brief excerpts from the hearings on the noon. bill under consideration, and a short table. The SPEAKER. Is there objection? The SPEAKER. Is- there objection? There was no objections. There was no objection. 1939 CONGRESSIONAL RECOR_D-HOUSE 2045 LEAVE OF ABSENCE S.1253. An act for the relief of John B. Dow; to the Com- By unanimous consent, leave of absence was granted as mittee on Claims. · follows: S. 1476. An act to authorize an appropriation to pay non­ To Mr. PETERSON of Georgia, for the remainder of the week, Indian claimants whose claims have been extinguished under on account of official business. the act of June 7, 1924, but who have been fourid entitled to To Mr. YoUNGDAHL (at the request of Mr. AUGUST H. AN­ awards under said act as supplemented by the act of May 31, DRESEN) on account of serious illness in his family. 1933; to the Committee on Indian Afiairs. To Mr. PATRICK, for today, on account of important busi­ S.1477. An act to repeal section 9 of the act of March 3, ness. 1875 <18 Stat. L. 450), as amended; to the Committee on To Mr. MILLs of Arkansas

COMMITTEE ON COINAGE, WEIGHTS, AND MEASURES amendment (Rept. No. 104). Referred to the Committee of The Committee on Coinage, Weights, and Measures will the Whole House on the state of the Union. meet on Friday, March 3, 1939, at 9:30 a. m., in room 115, Mr. ROMJUE: Committee on the Post Office and Post House Office Building. Roads. H. R. 3812. A bill granting postal employees credit for Saturday in annual and sick leave law, thereby conform­ COMMITTEE ON MERCHANT MARINE AND FISHERIES ing to the 40-hour workweek or 5-day-week law; with The Committee on Merchant Marine and Fisheries will hold amendment (Rept. No. 111). Referred to the Committee of public hearings in room 219, House Office Building, Wash­ the Whole House on the state of the Union. ington, D. C., at 10 a. m. Tuesday, March 7, 1939, on the bill , to create a commission to of the Whole House. study and report on the feasibility of constructing the Mexi­ Mr. KEOGH: Committee on Claims. H. R. 2073. A bill can Canal, was inadvertently omitted from the notice. to allow credit in the accounts of certain former disbursing This is to advise all interested parties that House Joint officers of the Veterans' Administration, and for other pur­ Resolution 112 will be considered at that time with the fol­ poses; without amendment United States Army, mittee on Invalid Pensions. . dated August 16, 1938, submitting a report, . together with ·A bill (H. R. 4518) for the relief of Francine Marie Dwight; accompanying papers and illustrations, on reexamination of Committee on Pensions discharged, and referred to the Com­ Hoosic River, N. Y., Vt., and Mass., and Roaring Branch at mittee on Invalid Pensions. Bennington, Vt., requested by resolutions of the Committee on Flood Control, House of Representatives, adopted February 3, 1937, and the Committee on Commerce, United States Senate, PUBLIC BILLS AND RESOLUTIONS .adopted July 29, 1937 (H. Doc. No. 182); to the Committee on Under clause 3 of rule XXII, public bills and resolutions . Flood Control and ordered to be printed, with two illustra­ were introduced and severally referred as follows: tions. By Mr. McCORMACK: 471. A letter from the Secretary of War, .transmitting a H. R. 4575. A bill to protect producers, manufacturers, and letter from the Chief of Engineers, United States Army, consumers from the unrevealed presence of sub•titutes and dated July 26, 1938, submitting a repo_rt, together with ac- mixtures in. woven or knitted fabrics and in garments or . companying papers and illustrations, on reexamination of articles of apparel made .therefrom, and for other purposes-; Schuylkill River, Pa., with a view to control of pollution from to the Committee on Interstate and Foreign Commerce. mining operations, requested by resolution of the Committee By Mr. STARNES of Alabama: on Rivers_ a~d Harbors, House of Representatives, . adopted H. R. 4576. A bill making appropriations for public-works April 8, 1935 (H. Doc. No. 183); to the Committee on Rivers projects, and authorizing the carrying out of such projects; and Harbors and ordered to be printed, with eight illustra­ to the Committee on Appropriations. tions. By Mr; BOEHNE: 472. A letter from the Acting Secretary of the Navy, trans­ H. R. 4577. A bill making it an offense against the United mitting the draft of a proposed bill to· make better provision States for any person to move in interstate or foreign com­ for the government of the Army and the Navy of the United merce with intent to avoid his obligation to support his chil­ States by the suppression of attempts to incite the members dren; to the Committee on the Judiciary. thereof to disobedience; to the Committee on Military Affairs. By Mr. BUCKLER of Minnesota: H. R. 4578. A bill to provide for the liquidation of the trust REPORTS OF COMMITI'EES ON PUBLIC BILLS AND funds on deposit to the credit of the Chippewa Indians of RESOLUTIONS Minnesota; to the Committee on Indian Affairs. Under clause 2 of rule XITI, By Mr. COSTELLO: Mr. KENNEDY of Maryland: Committee on Claims. H. R. H. R. 4579. A bill relating to the retirement of certain com­ 1961. A bill for the relief of disbursing officers and other missioned and warrant officers of the Army, NavY, Marine officers and employees of the United States from disallow­ Corps, and Coast Guard; to the Committee on Military ances and charges on account of airplane travel; without Affairs. 1939 CONGRESSIONAL RECORD-· HOUSE 2047 By Mr. FLANNAGAN: By Mr. JONES of Texas: H. R. 4580. A bill to provide for a preliminary flood-control H. J. Res.188. Joint resolution authorizing the delegation examination and survey of the North Fork of the Clinch of certain authority within the Department of Agriculture; to River, Va.; to t.he Committee on Flood Control. the Committee on Agriculture. By Mr. GUYER of Kansas: H. J. Res.189. Joint resolution to define the status of the H. R. 4581 (by request) . A bill to provide for the general Under Secretary of Agriculture, and for other purposes; to welfare by establishing a system of Federal old-age benefits the Committee on Agriculture. and to make more adequate provision for aged persons, · By Mr. CELLER: widowed, and disabled, and to establish an unemployment H. J. Res. 190. Joint resolution to make available to the base and a General Welfare Board, to raise revenue, and for Federal Government the facilities of the council of State other purposes; to the Committee on Ways and Means. governments, and for other purposes-; to the Committee on By Mr. KENNEDY of Maryland: the Judiciary. H. R. 4582. A bill to provide for the acquisition of certain property for public use in the District of Columbia; to the MEMORIALS Committee on Public Buildings and Grounds. Under clause 3 of rule XXII, memorials were presented By Mr. JOHN L. McMTILAN: and referred as follows: H. R. 4583. A bill granting a pension to widows and depend­ By the SPEAKER: Memorial of the Legislature of the ent children of World War veterans; to the Committee on State of Wyoming, memorializing the President and the Con­ World W~r Veterans' Legislation. gress of the United States to consider their Joint Memorial H. R. 4584. A bill granting pensions and increases of pen­ No. 4, with reference to Federal taxation; to the Committee sions to needy war veterans; to the Committee on World on the Judiciary. War. Veterans• Legislation. _Also, memorial _of t.h~ LegislatUre of the State of Maine, By Mrs. ROGERS of Massachusetts: memorializing the President and the Congress of the United H. R. 4585. A bill to amend the act approved August 5, States to consider their resolution with reference to present 1937, entitled "An act to provide for, foster, and aid in tariff rates; to the Committee on Ways and Means. coordinating research relating to cancer; to establish the Also, memorial of the Legislature of the State of Oregon, National Cancer Institute, and for other purposes; to the memorializing the· President and the Congress of the United Committee on Interstate and Foreign Commerce. States to consider their House Joint Memorial No. 5, with reference to the harbo~ at Tillamook Bay, Oreg.; to _the By Mr. SMITH of Washington: Committee on Rivers and Harbors. H. R. 4586. A bill to provide for the construction of a post­ Also, memorial of the Legislature of the State· of Wyoming, office building at Castle Rock, Wash.; to the Committee on memorializing the President and the Congress of the United Public Buildings and Grounds. States to consider their· Joint Memorial No.3, with reference By Mr. SUMNERS of Texas: to the livestock industry; to the Committee on Ways and H. R. 4587. A bill to give the Supreme Court of the United Means. States authority to prescribe rules of pleading, practice, and Also, memorial of the Legislature of the State of Colorado, procedure with respect to proceedings in criminal cases prior memorializing the President and the Congress of the United to and including verdict, or finding or plea of guilty; to the States to consider their Senate _Joint Memorial No. 9, with Committee on the Judiciary. reference to House bills 2662 and 2663 concerning the Fed­ By Mr. SWEENEY: eral Oil and Gas Leasing Act; to the Committee on the H. R. 4588. A bill to adjust the salaries of rural letter car­ Public Lands. riers, and for other purposes; to the Committee on the Post Also, memorial of the Legislature of the State of Rhode Office and Post Roads. Island, memorializing the President and the Congress of the By Mr. JONES of Texas: . United States to consider their resolution to eliminate the H. R. 4589. A bill to authorize the encouragement of engi­ taxation of gasoline and lubricating oil by the Federal Gov­ neering research at experiment stations; to the Committee ernment; to the Committee on Ways and Means. on Agriculture. By Mr. KILDAY: PRIVATE BILLS AND RESOLUTION$ H. R . 4590. A bill to amend the ·social Security Act; to the Under clause 1 of rule XXII, private bills and resolutions Committee on Ways and Means. were introduced and severally referred as follows: H. R. 4591. -A bill to amend the Social Security Act; to the By Mr. BARDEN: Committee on Ways a:nd Means. - H. R. 4597. A bill for the relief of Thomas P. Waters; to By Mr. O'LEARY: the. Committee on Military Affairs. H. R. 4592. A bill to amend section 4339 of the Revised By Mr. BARRY: Statutes of the United States; to the Committee on Merchant H. R. 4598. A bill for the relief of Orvie Matthew Ean; . to Marine and Fisheries. the Committee on Naval Affairs. H. R. 4593. A bill to amend· section 4132 of the Revised H. R. 4599. A bill granting a pension to Catherine O'Hare; Statutes of the United States; to the Committee on Merchant to the Committee on Pensions. Marine and· Fisheries. By Mr. BROWN of Ohio: By Mr. WEST: H. R. 4600. A bill for the relief of W. H. Backenstoe; to the H. R. 4594. A bill to amend the National Labor Relations Committee· on Claims. · Act Terminal 1412. By Mr. COFFEE of Washington: Resolution of 300 Railroad Co., of Toledo, Ohio; to the Committee on Claims. persons at mass meeting at Bremerton, Wash., assembled By Mr. IZAC: under the sponsorship of the Bremerton Sun, stating that H. R. 4607.. A bill for the relief of Elmira Margaret Van­ Federal social-security law, while a step in the right direc­ atta; to the Committee on Claims. tion, has proved inadequate and unsatisfactory; pointing By Mr. JOHNSON of Oklahoma: out that it has been too costly and discriminatory in its H. R. 4608. A bill for the relief of Lettie Leverett; to the operation; and therefore urging Congress to give serious Committee on Claims. consideration to the principles embodied in House bills 2 H. R. 4609. A bill for the relief of Charles Enslow; to the and i1, now pending before the Congress, to the end that Committee on Claims. a genuine retirement and recovery plan be enacted in keep­ :ay Mr. KILDAY: . ing with the American standard of living; to the Committee H. R. 4610. A bill for the relief of William G. Schmid; on Ways and Means.· to the Committee on Claims. 1413. Also, resolution of the PlYWood, veneer, and box H. R. 4611. A bill for the relief of Mark R. Larkin; to the shook council of the International Woodworkers of America, Committee on Claims. pointing out that the Pacific Northwest possesses the only By Mr. KITCHENS: appreciable stands of old growth Douglas fir timber suitable H. R. 4612. A bill for the relief of John B. Aldridge; to the for peeler logs; asserting that such resources are a natural Committee on Claims. heritage which should be conserved; asserting that exporta­ H. R. 4613. A bill for the relief of Mrs. F. A. N. Yeager; to tion of such logs has undermined Northwest industries, and the Committee on Claims. urging that the Congress pass House bill 3579, introduced H. R. 4614. A bill for the relief of James Martin Wells; by Mr. CoFFEE of Washington, or identical legislation to pro­ to the Committee on Claims. hibit the exportation of such logs; to the Committee on Ways By Mr. KUNKEL: and Means. H. R. 4615. A bill for the relief of Sallie Barr; to the 1414. Also, resolution of the Chamber of Commerce of Committee on Claims. Tacoma, Wash., Thad Stevenson, secretary-manager, point­ By Mr. LEMKE: ing out that lumber industries are the means of employ­ H. R. 4616. A bill to pay to M. F. Gubrud, of Ambrose, ment of thousands of workers in the Tacoma, Wash., area; N. Dak., $261.75, money erroneously collected under protest, that these industries are dependent on the virgin softwood as duty on frozen wheat imported from Canada as feed for resources of the Pacific Northwest for their existence; assert­ livestock, under the Tariff Act; to the Committee on Claims. ing that export trade of finished lumber during recent years By Mr. MANSFIELD: has been curtailed because foreign countries have imported H. R. 4617. A bill for the relief of Capt. Robert E. Cough­ Douglas fir logs to the exclusion of American finished prod­ lin; to the Committee on Claims. ucts, constituting a serious drain on the great natural re­ By Mr. MARTIN of Massachusetts: sources of the Pacific Northwest; insisting that the H. R. 4618. A bill for the relief of Herbert Frederick exportation of the raw material instead of finished product Field, deceased; to the Committee on Naval Affairs. deprives the Pacific Northwest of more than $4000,000 By Mr. MYERS: annual pay roll, and therefore emphatically urging that H. R. 4619. A bill for the relief of Stephen Joseph Ketran; the Congress forthwith consider and pass House bill 3579, to the Committee on Military Affairs. introduced by Mr. CoFFEE of Washington (and similar bills of By Mr. O'LEARY: the same purport and tenor providing for the prohibition H. R. 4620. A bill for the relief of the :firm of Cotonificio of export of such logs) ; to the Committee on Ways and Bustese, S. A.; to the Committee on Claims. Means. By Mr. TERRY: 1415. Also, resolution of mass meeting of 5,000 persons H. R. 4621. A bill for the relief of C. A. Blackburn; to the held under the auspices of the Seattle Star, Seattle, Wash., Committee on Claims. comprising representatives of all pension groups within the H. R. 4622. A bill granting an increase of pension to Ken­ State of Washington, asserting that the present social secu­ neth Morford; to the Committee on Pensions. rity law, though commendable in objective, has proved to H. R. 4623. A bill granting a pension to Ada Epperson; to be inadequate, unsatisfactory, and discriminatory; and there­ the Committee on Invalid Pensions. · fore urging the present Congress to give serious considera­ H. R. 4624. A bill granting a pension to Rosetta McKay tion to the various recovery and retirement plans now pend­ Adams; to the Committee on Pensions. ing and enact forthwith a recovery and retirement plan By Mr. VANZANDT: embodying the general principles of House bills 2. and 11, so H. R. 4625. A bill for the relief of Adelaide Damiano; to that the country will be benefited by a genuine retirement the Committee on Claims. a.nd recovery plan consonant with the American standard H. R. 4626. A bill granting an increase of pension to of living; to the Committee on Ways and Means. Williantina H. Young; to the Committee on Invalid Pensions. 1416. By Mr. GRAHAM: Petition of the Catholic Daugh­ H. R. 4627. A bill for the relief of Mildred C. Resig; to the ters of America Court, No. 663, Rochester, Pa., urging the Committee on Claims. retention on the statute books the act of May 1, 1937, and the extension of the original act to include civil as well as By Mr. WEAVER: international conflicts; to the Committee on Foreign Affairs. H. R. 4628. A bill for the relief of John C. Gibbs; to the Committee on War Claims. 1417. By Mr. GUYER of Kansas: Petition of the State of By Mr. YOUNGDAHL: Kansas, as expressed in Senate Concurrent Resolution No. 6, H. R. 4629. A bill for the relief · of Arthur 0. Anderson; passed by the Senate and the House of the State of Kansas, to the Committee on War Claims. now in session at Topeka, Kans., asking that Congress make available to the States all funds collected under the tax im­ posed on sporting arms and ammunition by the Pittman­ PETITIONS, ETC. Robertson Act; to the Committee on Appropriations. Under clause 1 of rule XXII, petitions and papers were 1418. By Mr. HALLECK: Petition of the Woman's Christian laid on the Clerk's desk and referred as follows: Temperance Union of Bourbon, Ind., favoring the enactment 1411. By Mr. COCHRAN: Memorial of the Central Trades of legislation for the control of the motion-picture industry; and Labor Union, submitted by the secretary, W. M. Brandt. to the Committee on Interstate and Foreign Commerce. 1939, CONGRESSIONA:t RECORD-SENATE 2049.

1419. ·By Mr. HOUSTON~ Concurrent Resolution No. 6 of 1435. Also, memorial of the Rhode ·Island · Agricultural the Kansas Senate, memorializing the Congress of the United Conference, opposing placing a tax of 3 cents per gallon on States to appropriate all of the funds collected under the fuel oil; to the Committee on Ways and Means. terms of the Pittman-Robertson Act for Federal aid to the 1436. Also, memorial of the State of Rhode Island, urging States in wildlife restoration; to the Committee on Agri­ that in the construction of the new post office in Westerly, culture. R.I., the entire exterior be of Westerly granite; to the Com­ 1420. By Mr. LUTHER A. JOHNSON: Petition of Charles mittee on the Post Office and Post Roads. A. Teeple, of Corsicana, Tex., opposing House bill 101, sec­ 1437. By Mr. SCHAEFER of illinois: Petition of Local tion 210 (b) (7), amendnient to the Social Security Act; to 243, Hotel and Restaurant Employees and Beverage Dis­ the Committee on Ways and Means. pensers, Byrl Donelson, secretary, Alton, m., favoring adop-­ 1421. Also, petition of A. M. Aycock, owner of Ben Hur tion by Congress of amendments to the Wagner Labor Rela­ Telephone Co., route 2, Mart, Tex., favoring House bill 2842, tions Act as recommended by the American Federation of which has to do with telephone exchanges having 1,000 or Labor; to the Committee ·on Labor. · · less subscribers, and modifies the wage-and-hour law so as 1438. Also, petition of the Ladies' Auxiliary, National As­ to make it possible for these small exchanges to continue to sociation of Letter Carriers, Lodge No. 97; Viola I. Palis, employ telephone operators as they have in the past; to the recording secretary, East St. Louis, ill., urging enactment of Committee on Labor. certain legislation for improvement 1n working conditions 1422. By Mr. MARTIN J. KENNEDY: Petition of the for postal employees; to the Committee on the Post Office Transport Workers Union of Greater New York, comprising and Post Roads. 50,000 members, urging vote for the appropriation of the 1439. Also, petition of the Senate and House of Represent­ additional sum of $150,000,000 cut from President Roosevelt's atives, General Assembly, State of Illinois, appealing to the original recommendation on Works Progress Administration; President, Secretary of War, Secretary of the Navy, and to the Committee on Appropriations. commanding officers and athletic directors of the service 1423. Also, resolution of the New York Board of Trade, academies to direct that the annual football game for 1939 Inc., New York City, opposing the enactment of Senate bill between Army and Navy be held in the city of Chicago; to 158, known as the Hill bill; to the Committee on Interstate the Committee on Military A1fairs. and Foreign Commerce. 1440. By Mr. SCHIFFLER: Petition of Katie B. Knox, 1424. Also, letter from Rev. Dr. Paul Austin Wolfe, of the secretary, Townsend Club, No. 3, Fairmont, W. Va., urging Brick Presbyterian Church, New York City, expressing op­ early action on the Townsend bill (H; R. 2); to the Com-· position to the proposal to include churches and ministers mittee on Ways and Means. un9,er the extended provisions of the Social Security Act; 1441. By Mr. SMITH of West Virginia: Reso:mtion passed to the Committee on Ways and Means. by the House of Delegates of the State of West Virginia in 1425. Also, letter from the board of national missions of which the Representatives in Congress from that State are the Presbyterian Church in the United States of America, requested to oppose the enactment of House bill 188 and New York City, opposing the proposal to include churches Senate bills 126, 138, and 158~ which pertain to the estab­ and ministers under the extended provisions of the Social lishment of freight rates; to the Committee on Interstate Security Act; to the Committee on Ways and Means. and Foreign Commerce. 14Z6. By Mr. KEOGH: Petition of Vincent A. Roy, super­ 1442. Also, resolution adopted by the members of Local visor, teacher-training department, Pratt Institute, Brook­ Union No. 7252, United Mine Workers of America, -Royal, lyn, N.Y., concerning House bill 2319; to the Committee on W. Va., opposing any and all amendments to the National Education. Labor Relations Act; to the Committee on Labor. 1427. Also, petition of the Queens County committee, the 1443. By Mr. TENEROWICZ: Resolution of the Senate of American Legion, Department of New York, concerning the State of Michigan, urging Members of Congress not to House bill 3760; to the Committee on World War Veterans' take favorable action on House bill 188 and Senate bills Legislation. · 126, 137, and 158; to the Committee on Interstate and 1428. Also, petition of the Transport Workers Union of Foreign Commerce. Greater New York, concerning the President's recommenda­ 1444. By Mr. THOMAS of New Jersey: Concurrent resolu­ tion for additional appropriation of $150,000,000 for Works tion introduced and adopted by the One Hundred and Sixty­ Progress Administration; to the Committee on Appropria­ third Legislature of the State of New Jersey, February 6, tions. 1939, commending the House of Representatives of the Na­ tional Congress on their recent action in continuing the 1429. Also, petition of the rehabilitation committee, United activities of the Dies committee to investigate un-American States Marine Hospital, Fort Stanton, N. Mex., concerning practices; to the Committee on Rules. seamen coming under the Social Security Act; to the Com­ 1445. By Mr. WEAVER: Petition of certain citizens of mittee on Ways and Means. Waynesville, N. C.; to the Committee on Foreign Affairs. 1430. Also, petition of Gane & Ingram, Inc., manufacturing 1446. By the SPEAKER: Petition of Jose Castro Novoa, of chemists, New York City, concerning House bill 3536; to the Hatillo, P. R., and others, petitioning consideration of their ' Committee on Ways and Means. resolution with reference to veterans of the World War; to 1431. By Mr. PFEIFER: Petition of Gane & Ingram, Inc.~ the Committee on Ways and Means. manufacturing chemists, New York City, urging support of 1447. Also, petition of the Meridian Teachers' Association, House bill 3536,. to tax imported menthol; to the Committee of Meridian, Miss., petitioning consideration of their resolu­ on Ways a:Qd Means. tion with reference to Senate bill 1305, Federal aid to educa.• . 1432. Also, petition of the National League of District tion; to the Committee on Education. Postmasters of the United States, Washington, D. C., urging support of amendment by Representative BuRcH, of Virginia, increasing appropriation -for third-class post offices; to the SENATE Committee on Appropriations. 1433. Also, petition of the Transport Workers' Union of WEDNESDAY, MARCH 1, 1939 Greater New York, urging additional appropriation of $150,- (Legislative day of Monday, F~bruary 27, 1939) 000,000 for Works Progress Administration; to the Commit­ tee on Appropriations. The Senate met at 12 o'clock meridian on the expiration 1434. By Mr. SANDAGER: Memorial of the officers and of the recess. members of the board of directors of the General Welfare The Chaplain, Rev. Z~Barney T. Phillips, D. D., offered the Association of Rhode Island, Inc., of Providence, R. I., to following prayer: speedily enact the General Welfare Act (H. R. 11) into law; 0 giver of life and light, who hast brought us in safety to the Committee on Ways and Means. to the beginning of this another day, look down in infinite ' ' .