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22884 CONGRESSIONAL RECORD- HOUSE September 3, 1965 the encouragement and support of such delivered at the International Develop­ velopment Bank, Washington, D.C., Oc­ an institution is a dramatic step for our ment Conference, Washington, D.C., tober 31, 1964. foreign policy in the Far East. It also May 26, 1965. Johnson, Lyndon Baines: Remarks of marks a constructive and we believe pref­ Black, Eugene R.: Statement on the President at Shriver Hall Auditorium, erable alternative to post-World War II southeast Asia economic and social de­ April 7, 196·5, Johns Hopkins University, American aid. velopment presented to the House of Baltimore, Md. Representatives Banking and Currency Rostow, W. W.: "Economic Develop­ WORKING BIBLIOGRAPHY Committee on July 29, 1965. ment in Asia," the Department of State "Asia Aid Request: Official Transcript Black, Eugene R.: Statement to the bulletin, volume 52, May 31, 1965, pub­ of President Johnson's News Conference meeting of the consultative committee lication No. 7898. at the White House," the Washington of experts on the Asian Development United Nations Economic Commission Post, Wednesday, June 2,1965. Bank, Bangkok, Thailand, June 28, 1965. for Asia and the Far East, report of the Bell, David E.: "Regional Cooperation "Inter-American Development Bank: ministerial conference on Asian eco­ in South and Southeast Asia," a speech Basic Information," Inter-American De- nomic cooperation, January 6, 1964.

H.R. 1820. An act for the relief of Winsome JOHNSON ECONOMIC POLICIES HOUSE OF REPRESENTATIVES Elaine Gordon; H.R. 2678. An act for the relief of Joo Yul PRAISED BY FINANCIAL WRITER FRIDAY, SEPTEMBER 3, 1965 Kim; DISCREDITING FEDERAL RE­ H.R. 2871. An act for .the relief of Dorota SERVE CHAIRMAN MARTIN'S 1929 The House met at 12 o'clock noon. Zytka; The Chaplain, Rev. Bernard Braskamp, H.R. 3292. An act for the relief of Con­ WARNING DD., used this verse of Scripture: Philip­ suela Alvarado de Corpus; Mr. PATMAN. Mr. Speaker, I ask pians 4:6: In everything by prayer and H.R. 5024. An act to amend titles 10 and 14, Code, and the Military Per­ unanimous consent to extend my remarks supplication with thanksgiving let your sonnel and C1v111an Employees' Claims Act of at this point in the RECORD and include requests be made known unto God. 1964, with respect to the settlement of claims a statement by J. A. Livingston. Almighty God, who art everywhere, we against the United States by members of the The SPEAKER. Is ·there objection lift up our hearts to Thee in worship and unifarmed services· and civ111an officers and to the request of the gentleman from employees of the United States for damage Texas? give Thee thanks for this fellowship of to, or loss of, personal property incident to God-fearing men and women with whom their service, and for other purposes; There was no objection. we share Thy mercies and adore Thy H.R. 6719. An act for the relief of Mrs. Mr. PATMAN. Mr. Speaker, financial name. Kazuyo Watanabe Ridgely; and writer J. A. Livingston's column appear­ May we be of one heart with all who H.R. 9570. An act to amend the Federal ing in the Washington Post's September seek Thee, of one communion with all Firearms Act to authorize the Secretary of 1 edition is a refreshing refutation of who love Thee, and of one purpose with the Treasury to relieve applicants from cer­ Federal Reserve Chairman Martin's all who serve Thy holy will in faithful­ tain provisions of the act if he determines famous prediction last June that a 1929 that the granting of relief would not be type economic bust may be just around ness and joy. contrary to the public interest, and that the Teach us that we are one, united with applicant would not be likely to conduct his the comer. Thee and with one another in one na·­ operations in an unlawfUl manner. In contrast, Mr. Livingston accurately ture, one duty, and one destiny, and may emphasizes the important differences be­ we all strive to be messengers of Thy The message also announced that the tween 1929 and 1965, rather.than finding mercy, ministers of Thy truth, and doers Senate had passed, with amendments in all sorts of disquieting similarities. of good to our fellow men in their strug­ which the concurrence of the House is Livingston lays a large part of the blame gles and sorrows. requested, bills and a joint resolution of for depression miseries on President Grant that the day may speedily come the House of the following titles: Hoover's do-nothing policy foisted upon when humanity shall feel the throb of a H.R. 647. An act to amend the act of March him by Benjamin Anderson of the Chase new power and the thrill of a new joy, 3, 1901, to permit the appointment of new Natiomil Bank and others. He denies liberated among men and nations and trustees in deeds of trust in the District of that this would happen under present Columbia by agreement of the parties; day economic policies. causing that change in their inner life, H.R. 3128. An act for t:tie rellef of Angelo which is more brotherly and Christ­ Iannuzzi; and Livingston's explanation is good as far like. H.J. Res. 504. Joint resolution to fa.c111tate as it goes. The one great flaw in his Help us to believe that the good of the admission into the United States of cer­ analysis is, I believe, his omission of the mankind does actually exist, and the in­ tain aliens. fact that the Government between 1929 jury of one is the hurt of all. Inspire us and 1933 intentionally reduced the Na­ more with that down-reaching love The message also announced that the tion's money supply by an unbelievable which gives itself gladly and sacrificially Senate agrees to the amendments of the 25 percent. So the Government, through House to a joint resolution of the Senate the Federal Reserve-contrary to Living­ for the sake of needy and wandering hu­ of the following title: manity. ston-was not merely on the sidelines, Hear us in Christ's name. Ameri. S.J. Res. 53. Joint resolution to establish but was actively pursuing deflationary a tercentenary commission to commemorate policies which resulted in history's . the. advent and history of Father Jacques Marquette in North America, and for other greatest economic catastrophe. THE JOURNAL purposes. President Johnson, in his Economic The Journal of the proceedings of yes­ Report to Congress last January, gave terday was read and approved. The message also announced that the much credit to stable long-term interest Senate had passed bills of the following rates and excess bank reserves for the titles, in which the concurrence of the record-breaking prosperity starting early MESSAGE FROM THE SENATE IIouseisrequested: in the Kennedy-Johnson administration A message from the Senate by Mr. s. 481. An act for the relief of Winnifred in 1961-noting at the same time, how­ Arrington, one of its clerks, announced Evadne Newman; ever, that the general level of interest that the Senate had passed without S. 779. An act for the relief of Henryka rates is now higher than at any period Lyska; since the early 1930's. There is no ques­ amendment bills of the House of the fol­ S. 803. An act for the relief of Ching Zai lowing titles: tion that wise Government policies and Yen and his wife, Faung Hwa Yen; wise private decisions together are re­ H.R. 1402. An act for the relief of Dr. Jorge S. 1168. An act for the relief of Timothy Rosendo Barahona; William O'Kane; and sponsible for our sparkling economic H.R.1443. An act for the relief of Mrs. S. 2393. An act to authorize additional performance. I would hope and pray Olga Bernice Bramson Gilfillan; G8-16, G8-17, and G8-18 positions for use that the costly and tragic mistakes of H.R. 1627. An act tor the relief of Esterina in agencies or functions created or sub­ the past will not be repeated, but with Ricupero; stantially expanded after June 30, 1965. the independence-obsessed Federal Re- September 3, 1965 CONGRESSIONAL RECORD- HOUSE 22885 serve Board moving farther and farther The new economics however, does not 0.25 percent as of January 1, 1967; will away from the official administration satisfy the inborn pessimist, the constitu­ be increased again by 0.25 percent as of tional skeptic. He looks at the long-term policies, on~ just never knows. chart of business and says: "There's always January 1, 1968; and then a final 0.25 Mr. Speaker, the entire Livingston something. If it isn't economic, it's political percent as of January 1, 1969. article follows: " · If it isn't a banking panic it's or These increases will restore the RaJI­ HOOVER, JOHNSON PHILOSOPHIES CONTRASTED an outflow of gold or social disorders. The road Retirement fund to the position of · (By J. A. Livingston) human mind is not big enough to. encom­ actuarial balance in which it stood as of For no reason except that September marks pass, to grasp entire, the all-too-human uni­ January 1 this year. t he 36th anniversary of the end of the Cool­ verse." i<:l.ge-Hoover boom, this column is dedicated The new .economists are not chart-bound. to the twenty-nlners, those New Era hopefuls History is theirs to make, not to be wor­ PEACE THROUGH LAW who sought fortune-and to hell with fame­ shiped as inevitably repetitious. Mr. ARENDS. Mr. Speaker, I ask on margin in Wall Street, even as their fore­ And to try out their philosophy of Gov­ una,nimous consent that the gentleman bears 80 years before, the forty-niners, ernment positivism they have President Johnson. Unlike President Hoover, he is from Illinois [Mr. FINDLEY] may extend reached for .riches in california with pick, his remarks at this point in the RECORD. shovel and grubstake. willing to use national resources to cope The twenty-niners have their 1965 counter­ with social problems. and include extraneous matter. parts-the believers in the new economics, This distinguishes the 1965 aggregate de_. The SPEAKER. Is there objection including President Johnson and Gardner mandists from the 1929 consumptionists. to the request of the gentleman from Ackley, Chairman of the President's Council 'l'hey have Government on their side instead illinois? of Economic Advisers. But there's an essen­ of on the sidelines. There was no objection. tial difference. Mr. FINDLEY. Mr. Speaker, the The economists of the New Era preached AMENDING RAILROAD RETIREMENT World Conference on World Peace t he philosophy of ever-rising consumption: Through World Law to be held in Wash­ Keep up demand and prosperity will take ACT AND RAILROAD RETIREMENT TAX ACT ington September 12 to 18 is a significant care of itself. Installment selllng was just event and deserves thoughtful atten­ becoming respectable. Employment was ex­ Mr. HARRIS. Mr. Speaker, I ask pected to mount year after year. tion. In a world torn by strife and gun­ Therefore, total purchasing power would unanimous consent to address the House fire, it introduces a note of hope and increase. Corporation profits would soar. for 1 minute and to revise and extend promise. Stocks would be split. Stockholders couldn't my remarks. The Conference has several objectives, miss. So Wall Street had its ball. The SPEAKER. Is there objection including the codification of internation­ Then came the crash. A dream went dead. to the request of the gentleman from al law. Its basic objective is to promote The rugged optimist became a confirmed fa­ Arkansas? judicial as opposed to military settle­ talist: "Whatever goes up comes down, it's There was no objection. natural law, look at the long-term chart-­ ment of international problems. t he hills and the valleys; the periodicity. Mr. HARRIS. Mr. Speaker, I am in­ The simple and sad truth is that na­ Depressions are inevitable." troducing today a bill amending the Rail­ tions still operate in what the philoso­ The "new economists" of today also rely on road Retirement Act and the Railroad phers call the state of nature, a state in ever-rising consumption. They call it aggre­ Retirement Tax Act. I am scheduling which self-preservation is the first and gate demand. And 20 years of postwar pros­ hearings on this bill beginning on foremost law. perity, marred only by four short and shallow Wednesday, September 8, and we expect Of course a myriad of judicial settle­ recessions, have given them confidence: Man to proceed expeditiously with the bill. ments have occurred between parties of can master his economic destiny. If men As Members know, a bill-H.R. 3157- cause depressions, surely men ought to be di1Ierent nations, and these settlements able to prevent them. providing benefits for spouses of retired are precedents which are part of what is Society-men and women working to­ railroad employees passed the House known as international law. But nona­ gether-can achieve what individuals and earlier this year, and passed the other tion is obliged to accept these precedents corporations, acting separately and in their body on September 1 with an amendment except where contracts, agreements and own self-interest, cannot accomplish. increasing the base wages subject to tax treaties so stipulate. Even where stipu­ The New Era economists of 1929 were under the Railroad Retirement Tax Act. lations exist, breaches can and do occur. shortchanged by the rugged individualism of There is considerable controversy about the day. When depression engulfed America, When this happens, the nation powerful President Hoover was paralyzed by doctrine. this latter amendment and in the opinion enough to come out on top wins the point IDs heart was with the poor, but his con­ of many, the form in which the amend­ of "law." :viction was with William Graham Sumner, ment is proposed is unconstitutional. Therefore, the conferees gathering in who had taught at Yale at the turn of the I am attempting with this bill which Washingtop September 12 must acknowl­ century, and Benjamin Anderson, the econ­ I have introduced today to provide a edge, inwardly if not outwardly, that so omist for the Chase National Bank.· resolution of the controversies .that exist long as nation-states operate in this Sumner and Anderson preached economic in this area. The bill provides as follows: Darwinism: Depressions root out the weak pri.nrltive state of nature, world law and unfit. The strong survive. The result First. The bill provides exactly the which is meaningful as a means of is progress. Let the Government referee, same benefits for spouses of retired rail­ ~chieving a just world peace is impos­ but not intervene. road employees as was provided in the sible. Yet when production slumped and jobless­ bill as passed by the House and the Sen­ Peace can, of course, be achieved ness mounted, the rugged individuals rug­ ate this year. through law. For example, law enables gedly rushed individually to their respective Second. The ·bill increases the base the people of the United States to live storm cellars. The ever-upward vision wages subject to railroad retirement tax vanished. The New Era economists who at peace with each other. Disputes talked so positively of ever-expanding con­ to $550 a month, e1Iective October 1, this within the United States are settled sumption had no way to implement it. year. Because of some complexities in­ without war, and the same legal pro­ Today the expounders of the new econom­ volved in the medicare legislation, this tections are a1Iorded to the weak as to ics think they have: Theirs is a philosophy will mean that the medicare program for the strong. But this peace is possible of pol1tical participation. If private de­ railroad employees will be administered not because of law alone. The judicial mand is not adequate to buy the goods and by the Railroad Retirement Board, branch alone does not and cannot do the services produced, then the Government-­ rather than by the Social Security Ad­ by increasing its own purchases of goods and job. An executive branch able to en­ services or by reducing taxes-can supply ministration. force the judicial findings is essential, as the missing purchasing power. It w111 not Third. The third provision of the bill is a legislature able to write law. In stand aside and let the weak perish. provides for an immediate reduction in short, government is the force that makes Instead of letting labor go to waste, the the rates of tax paid by employees and possible peaceful relationships-not just new economists would use social resources employers under the Railroad Retire­ law alone. to construct bridges, hospitals, roads, ment Tax Act, so that the tax burden Therefore, the real objective of the schools, or even private homes and washing on employees and employers will remain conferees must be government, not just machines. Work provides wealth. Idleness generates despair, desperation, and riots. the same for the remainder of this year law alone. The individual can't go into debt to pro­ as it would have remained had there Those who seek world peace through vide work for his fellow man, but all of us; been no increase in the base. Then the world ·law must begin by building the collectively, can take the risk and so enrich .tax rate will increase by 0.25 percent as foundations for supranational institu­ each other and the Nation. of January 1, 1966; will increase by tions of government. This cannot be CXI--1443 22886 CONGRESSIONAL RECORD- HOUSE September 3, 1965 done at once. It cannot even be wisely It has already compiled the first of 50 vol­ the Republican Party has struggled more. considered on a worldwide basis at the umes bringing together all of the interna­ consistently and effectively than any tional law existent into a world law code other political party for justice and prog­ present time. Governmental systems for ready use. ress in .human rights~" Consistency has are too diverse. The Gov­ It is developing proposals for expansion of ernment, for example, came to power by the World Court through regional courts for never been noted as a virtue of Demo­ conspiracy, continues in power through easier access and for still lower trial courts cr:~.ts. But effectiveness has. conspiracy and if the past is a guide to to make it easier for nations to turn to law And there may even be some Republi­ the future it will ultimately be over­ to settle many lesser disputes. cans who wquld feel that the leadership thrown by conspiracy. Even attempting It is publishing for the first time a direc­ of Lyndon Johnson, when he was major­ to establish supranational governmental tory of law, judges, and lawyers of the world, ity leader of the Senate, was at least as a long-needed and valuable tool for the legal important as the leadership of President institutions which would include a profession. powerful conspiratorial force like the Lawyers from most of the Iron Curtain Eisenhower in producing the 1957 Civil Soviet Government would be too haz­ countries will be present for the Washington Rights Act. ardous for consideration. conference, which is a meeting of indi­ THE RIGHT TO VOTE But the beginning need not be on a viduals, not of governments. Lawyers from and have not The claim is made that the Republican worldwide scale. The sensible starting responded. Peiping coined a phrase and de­ voting rights proposal "would have re­ point is the group of nations commonly nounced the meeting as an "imperialist plot." sulted in more effective law and broader known as the Atlantic Community. It all began 8 years ago, when the president protection of all voting rights of all citi­ This community embraces peoples ex­ of the American Bar Association, Charles S. zens." perienced at self-government with long­ Rhyne, followed Winston Churchlll, Chief This could probably be dismissed as standing traditions in law and protec­ Justice Warren, and the Lord Chancellor of pardonable pride of authorship. The so­ tion of individual rights. Most of London to the podium in London's historic called Republican proposal was that put them are presently allied for military Guildhall and proposed that all lawyers join in a common effort to make law strong forth by Congressman WILLIAM M. Mc­ purposes in the North Atlantic Treaty enough to replace force as the controlling CuLLOCH, of Ohio, who is also chairman Organization, but this, of course, is not a factor in the fate of man. of the task force that produced the posi­ government. It is but an alliance, and Rhyne, a Washington lawyer, has been tion paper on human rights. as George washington so wisely warned, working at it ever since. It would have made two principal all alliances are subject to infractions It is safe to assume that things will keep changes in the law that was enacted: and interruptions. on happening. Two reasons are: First. It would have established the The world law conferees could wisely Lawyers constitute the most powerful seg­ number of complaints received by the ment of society in almost every country on consider a first but giant step toward every continent. Attorney General as the criteria for de­ world law. That step would be the When the legal profession of the entire termining voter discrimination, rather transformation of the NATO alliance world mobilizes its influence and talents, as than the existence of a literacy test and a into a supranational government able to it is now doing, a powerful force is in motion. low level of voting participation. write law and enforce judicial rulings This is no miracle, but a solid beginning Second. It would have eliminated the within its constitutional scope for the that points the way in which the nations requirements that States found to prac­ whole of the union. must move if . we are ever to lay hold of a tice voting discrimination obtain th~ ap­ means to make peace equal to our means to I hope some consideration will be make war. proval of a Federal court for changes in given to this idea by the conferees. Re­ The world's legal profession is magnifi­ their voting laws. printed below is an interesting comme~­ cently giving its services to a new client-­ The House of Representatives rejected tary on the approaching conference pub­ civilization itself. this proposal 248 to 171. Twenty-one lished in the Washington Post today and Republicans joined the Democrats in written by the able columnist Roscoe voting against it. Drummond: REAPPORTIONMENT DISCHARGE This section of the position paper also WORLD LAW MEETING--DEFEAT OF THE CYNICS PETITION poses three questions for the President: (By Roscoe Drummond) First. Why Texas was not covered un­ Mr. GROSS. Mr. Speaker, a parlia­ der his initial voting rights bill and is Mark down the World Conference on World mentary inquiry. not effectively covered now? Peace Through Law in Washington, Septem­ The SPEAKER. The gentleman will ber 12-18, as a signal and magnificent de­ Second. Why vote frauds and dishon­ state it. est elections, such as have occurred in feat for the cynics. Mr. GROSS. Would a quorum call be The cynics said it couldn't be done. They Chicago and Texas, were not covered un­ said it was sllly to think it could be done in order, in order to get Members to the der his proposal? and s111ler stlll even to try it. House floor to sign the reapportionment Third. Why should challenged votes be The cynics said that, with hot war in many discharge petition? counted and if found invalid be used pos­ parts of the earth and cold peace every­ The SPEAKER. Of course, the gen­ sibly to determine the outcome of an where, this would be no time to talk about tleman is so well versed in the rules of election, including the election of a peace through law. the House that the gentleman knows the President? But the leaders of the American Bar Asso­ answer to that inquiry. ciation didn't think so at all. Th.ey thought The questions are so misleading they this was the best time to start, because some­ should probably be regarded as rhetori­ thing needed to be done before it is too late. EQUALITY IN AMERICA: A PROMISE cal. But, if one regards them seriously, World law, let alone world peace through UNFULFILLED it is not necessary to tum to the Presi­ law, is not just around the corner. Far from dent to get answers. it. But a tremendous and exciting start has Mr. BOGGS. Mr. Speaker, I ask They are: been made. unanimous consent that the gentleman First. Texas is covered under the As a result, more than 2,500 leading lawyers from Oklahoma [Mr. ALBERT] may ex­ Voting Rights Act exactly the same as and jurists from 110 countries, including 65 tend his remarks at this point in the chief justices, 153 high court justices, and any other State. The purpose of the 59 attorneys general or ministers of justice RECORD and include extraneous matter. question is to imply that the criteria set will gather in Washington to draft plans for The SPEAKER. Is there objection forth in the act for determining the ex­ new international courts, to codify and to the request of the gentleman from istence of voter discrimination-a liter­ strengthen international law, and to build Louisiana? acy test and a low level of voter participa­ acceptance for an alternative to force-for There was no objection. tion-were drawn to exclude Texas. resort to the bench rather than resort to the Mr. ALBERT. Mr. Speaker, there fol­ That would be difficult to prove when battlefield. lows an analysis of the Republican co­ the same criteria have excluded 40 other The first such conference in history was ordinating committee's position paper on States and the District of Columbia. held in Athens in 1963 when the leaders of the legal profession from more than 100 coun­ human rights issued August 30, 19_65. Texas certainly is not the only one of tries formed the World Peace Through Law Most of this is a fine statement of prin­ these without a literacy test. Nor is it Center, which now has· 2,000 dues-paying ciples which could probably be endorsed the one with the lowest level of voter members, a sizable annual budget, and ·a by more Democrats than Republicans. participation. $100,00() gift for a world headquarters bu~ld­ Democrats might question, however, Second. The purpose of the legisla­ ing. the claim that "for. a century and more tion was to deal with voter discrtmina- September 3, 1965 CONGRESSIONAL RECORD -HOUSE 22887 tion, not with vote frauds and dishonest the best possible persons to fill these met to consider it on August 30. And elections. There is other legislation positions. little wonder that the text was not dis­ dealing with those problems. The fact is that the President pro­ tributed until 2 days later. - Third. A challenged vote is counted ceeded with care and deliberation, the only if the challenge has not been filed members of the Commission have been in time to be ruled upon before the elec­ named, its offices are open, and its work NEEDED: A JOINT CONGRESSIONAL tion. The list of registered voters must is now well underway. COMMITTEE ON INTELLIGENCE be published each month, and 10 days is By comparison with the issue made of Mr. BOGGS. Mr. Speaker, I ask allowed to challenge a voter. A hearing the time it has taken to get r. good Equal unanimous consent that the gentleman examiner has 15 days to determine the Employment Opportunities Commission from Wisconsin [Mr. KAsTENMEIER] may validity of the challenge, and an appeal underway, the position paper dismisses extend his remarks at this point in the may be taken to court which must rule the entire poverty program in a single RECORD and include extraneous matter. in 15 days. The last list of registered sentence: The SPEAKER. Is there objection voters must be published 45 days before The antipoverty program, which was orig­ to the request of the gentleman from the election. By law, therefore, every inally aimed at helping the poor including Louisiana? challenge filed up to 40 days before the many members of racial minority groups, has There was no objection. election must be ruled on. And the like­ already deteriorated into a shameful exam­ ple of predatory political patronage for the Mr. KASTENMEIER. Mr. Speaker, I lihood is that even challenges filed after big city machines. am today introducing a House concur­ that time would be ruled on before the rent resolution to create a Joint Con­ election. That is resounding rhetoric. But the gressional Committee on Intelligence. PROTECTING THE SANCTITY OF THE BALLOT conclusion will come as a surprise to the At the same time I want to commend the bosses of the "big city machines" it re­ The position paper contends: gentleman from Wisconsin [Mr. ZA­ fers to. They have been complaining BLOCKI] for his determined efforts to per­ Additional legislation is clearly required about the poverty program almost as to uphold the sanctity of the ballot. suade Congress to take a hard look at loudly as the Republicans-because they the intelligence operations of the Unit.ed But no attempt is made to define the feel it has not provided the patronage States and to establish such a committee. provisions of the legislation that may be they had expected. For it is true that, in the language of needed. PUBLIC ACCOMMODATIONS AND FACILITIES today's Times: If the Republicans feel this need, they The paper charges that the adminis­ Congressional supervision of the Nation's should certainly come forth with con­ tration has not been vigorous enough in intelligence activities is obviously inade­ crete proposals which can be judged on enforcing the section of the Civil Rights quate. A joint committee, similar to that their merits. Act of 1964 prohibiting discrimination at which watches over atmnic energy, has been That would certainly be better than urged by many Members of Congress; it is publicly owned and operated facilities badly needed. indulging in the idle rhetoric of a "posi­ such as parks and libraries. tion paper" or organizing programs of Yet it notes that 18 suits have been We do not need to look far for evidence voter intimidation such as the notorious brought ~y · the Justice Department to of this need. The current disastrous in­ Operation Eagle Eye used in the 1964 enforce this part of the act. And it cident involving attempted bribery of presidential election. passes over, without mention, the large Singapore's Prime Minister Lee Kuan EDUCATION AND EMPLOYMENT number of complaints which have been Yew by a CIA agent strongly supports EDUCATION resolved through mediation. the Times' contention that "the country The paper declares: STATE, PRIVATE, AND LOCAL RESPONSmiLITY can no longer be sure that either the We effectively support a massive campaign The position paper makes the sweeping State Department or the White House against illiteracy in the United States. is exercising the requisite supervision accusation that "the whole trend of Fed­ over an agency about which the public It is unfortunate that more Republi­ eral legislation in the present Congress knows almost nothing at all." cans did not share this sentiment when has been at the expense of State respon­ sibility." The gentleman from Wisconsin has led the poverty program was enacted in 1964 efforts since 1953 to create such a Joint or when ·the administration's education No specifics are alleged. Yet the fact is that no President has Congressional Committee on Intelligence. bills were under consideration this year. I am happy to recognize his interest and As it was, 81 percent of the Republican been as diligent as President Johnson in seeking the views of Governors, involv­ concern in this area and to join him in Members of the House of Representatives the effort to establish such a commit­ voted against the poverty program, and ing them in his deliberations, and pro­ posing legislation to strengthen the abil­ tee. 69 percent voted against the elementary­ The resolution I introduce today secondary education bill. ity of the States to deal with their prob­ lems. would establish a joint committee to be EMPLOYMENT States have a vital role under the pov­ composed of seven Congressmen and sev­ The paper accuses the administration erty program. States are equally en Senators selected by the Speaker of of doing little to implement the provi­ important in highway programs, hous­ the House and the President of the Sen­ sions of the Civil Rights Act of 1964 call­ ing programs, hospital construction pro­ ate on a bipartisan basis. It would make ing for the establishment of an Equal grams, area redevelopment, and virtu­ continuing studies of intelligence activi­ Employment Opportunities Commis­ ally every aspect of Federal activity. ties and problems. Although the com­ sion. And it contends that full imple­ A detailed analysis, in fact, would prob­ mittee would not expect to concern itself mentation of these provisions have been ably show that this Congress had done with the details of day-to-day operations hampered because members of the Com­ more to expand Federal assistance to of the intelligence agencies, the CIA and mission were not appointed until May of State governments to a level greater similar agencies would be expected to this year. than it has ever attained before. keep it currently and adequately in­ formed. This conveniently glosses over the fact CONCLUSION that the act authorizing the Commission The time has definitely come for Con­ did not become law until July 1964, just The Republican position paper finally gress to assert a more formal and ex­ prior to the Republican National Conven­ reaches the conclusion, supported by tensive supervision over the burgeoning tion and the nomination of Senator nothing to be found elsewhere in the intelligence operations of our Govern­ Goldwater as the Republican candidate paper, that "this administration has ment. Such supervision is needed to for President. How quick the Republi­ failed to enforce the law of the land." eliminate waste from individual agency cans would have been to criticize Presi­ How? budgets, to avoid unnecessary duplica­ dent Johnson had he named the members Where? tion of intelligence efforts, t·o assure that of this new and extremely important When? programs operate effectively. Commission in the midst of a presidential It does not say. M·ost importantly, however, such con­ election campaign. And how quick they Little wonder that the members of the gressional supervision is needed· to assure are to complain about the few weeks the Republican coordinating committee were . that the standards of morality honored by Am"e~i~an ~~iety are np~ completely President took after. the- election to find unable. to agree on the pap~f when they 22888 CONGRESSIONAL RECORD -HOUSE September 3, 1965 undermined in the conduct of our in­ justify their hostility to the West and in­ "Of course the worst thing about this doc­ ternational intelligence activities. creasing friendship with Communist . trine is that there are no dividing lines in Similar hostility exists in Burma and cam­ it. If it is valid for a small violation, it ap­ Cause for concern over this moral bodia. It is vital that Washington estaJblish plies equally to a more serious one. Once· breakdown is not limited to the Singa­ the kind of firm supervision of the CIA that you start this approach there is no stop­ pore case, but arises also from the fac­ can prevent such blunders in the future. ping. It is like a roller coaster which nears tual content of recent television pro­ the top of the track. Once you push it over grams which detail the implication of the a little bit, it plunges down all the way. CIA in objectionable practices in Latin EPISCOPAL MINISTER BLAMES RIOT "The amazing thing is that many clergy of America and elsewhere. ON KING this church, including both priests and These incidents clearly discredit and I bishops, have openly and omcially accepted Mr. BOGGS. Mr. Speaker, ask this doctrine. Episcopal clergymen have re­ debase our national prestige in the eyes unanimous consent that the gentleman ceived written expressions of this doctrine of the world. from Louisiana [Mr. WAGGONNER] may for their guidance. And large numbers of . Congress cannot afford to delay assert­ extend his remarks at this point in the clergy of this and other communions have ing its supervision until these activities RECORD and include extraneous matter. been sent, or have gone on their own volition, result in a fiasco of such proportions as The SPEAKER. Is there objection to Southern areas for the sole purpose of ex­ to actually jeopardize our national secu­ to the request of the gentleman from pressing racial concerns by open law defiance rity. Louisiana? pursuant to this new assertion of moral right. I believe that the editorial from today's "Finally, as sorely distressed Christians. There was no objection. we see instance after instance of reluctance New York Times states a compelling case Mr. WAGGONNER. Mr. Speaker, it is on the part of elected omcials to meet law­ for the establishment of the Joint Com­ refreshing indeed to read in David Law­ lessness quickly and firmly lest there be an mittee on Intelligence as proposed in the rence's column in the Washington Star adverse effect upon their personal political House concurrent resolution I have in­ of September 2 that a ranking member careers at the ballot box. Thank God not troduced today. I commend it for your of the clergy has stated from his pulpit all our omcials are of this character, but too serious consideration: that the blame for the trend toward vio­ many are." SUPERVISING THEOlA lent disregard of the law and authority Dr. Watts declared that it ought to be can only be laid at the doorstep of Martin perfectly clear that no person, "however The case of the Singapore bribe attempt exalted he may be or regard himself, has the raises serious questions about the Central Luther King. Further, he acknowledges right to say that what was wrong before Intel11gence Agency and i~ role in American and condemns the suppo·rt of civil diso­ becomes morally right if the acting party foreign policy. bedience to constituted authority being is w1111ng to be punished if caught." He Initially, the State Department flatly de­ lavishly given by many of the clergy. pointed out that clergymen have a duty nied Prime Minister Lee Kuan Yew's disclo­ The remarks delivered by the Rever­ not only to support the Constitution and laws sure that in 1960 a CIA agent had offered him of the land, but to reject the doctrine "of a a bribe to cover up an unsuccessful CIA effort end Dr. Robert B. Watts, of La Jolla, Calif., as contained in Mr. Lawrence's morally justified civil disobedience." He to penetrate Sinpa.gore's intelligence service. urged that there be no compromise with Only after Mr. Lee released a 1961 letter of column, should be must reading for every lawlessness, and he added that Christians apology from Secretary Rusk and threatened Member, and I would like to insert it should "seek by all lawful and proper means to put incriminating tape recordings on radio here in the RECORD for all to see: to help our neighbors to achieve civic equality Singapore, did the State Department's em­ It isn't often that a clergyman has also of treatment and betterment of opportunity barrassed spokesman confirm the incident .. had a successful career as a Government for self-improvement." The spokesman explained that the State lawyer and in private business. Ministers While it is understandable that there Department omcials responsible for the ini­ have rarely had the opportunity to study should be a difference of viewpoint as to tial denial were not fully aware of the back­ the law of the land as was the experience the wisdom of participation by the clergy in ground of the incident. And the CIA, as of the Reverend Dr. Robert B. Watts, pastor public demonstrations, there has been much the Times diplomatic correspondent Max of an Episcopal church in La Jolla, Calif. discussion among the clergymen as to how Frankel reported yestero.ay, "a,pparently re­ A sermon delivered by Dr. Watts since the far such activities should extend. There is layed the den-ial of wrongdoing that it cus­ Los Angeles riots deplores the doctrine that widespread sentiment that clergymen, as in­ tomarily issues to the rest of the Government it is all right to disobey an "unjust" law. dividual citizens, may express themselves when confronted by such charges." The latter idea, enunciated by the Reverend freely on problems of human behavior, but All this is dismally reminiscent of the false Dr. Martin Luther King, Jr., Negro leader, that ministers ought not to take part in State Department denials in the 1960 U-2 has aroused considerable objection not only "sit-ins" or "lie-ins" in any mass protests case that broke up the Paris summit confer­ among clergymen but among laymen as well which can incite violence. ence with . Aftm- the Bay of Pigs dis­ throughout the country. It is apparent that many of the younger aster, President Kennedy ordered new proce­ Dr. Watts graduated from Yale Law School, clergymen are taking the position that, since dures established to assure that the State where he was editor of the Yale Law Journal. the objective is worthy, any method used to Department would be adequately informed He practiced law in Chicago and New York, achieve it is permissible, whereas the clergy­ of CIA activities so that it could exercise pol­ and was chief assistant U.S. attorney in New men of more mature years, irrespective of icy supervision. The Killian watchdog com­ York City for several years and served also their sectarian affiliations, are arguing that mittee, originally appointed by President as Special Assistant to the Attorney General clergymen have the same obligation as do Eisenhower, was revived, given a far more of the United states. He was with the Na­ other citizens to obey the law. vigorous role, and in 1963 placed under the tional Labor Relations Board for 9 years from chairmanship of former White House adviser 1934 to 1943. For 3 of these he was general Olark Clifford. counsel of the Board and argued many of its STEEL AND THE BALANCE OF PAY­ Evidently some or all these safeguards have cases in the Supreme Court of the United now broken down. What· is most d-isturbing States. He served also in business as vice MENTS is not the certain damage done in Singapore, president and general counsel of Consoli­ Mr. BOGGS. Mr. Speaker, I ask but the possibility of more serious delin­ dated Vultee Aircraft Corp. and later with unanimous consent to address the House quencies. The country can no longer be General Dynamics Corp. He was ordained in for 1 minute and to revise and extend my sure that either the State Department or the 1958 in ·the Episcopal diocese of Los Angeles. White House is exercising the requisite su­ Dr. Watts, in his recent sermon, said: remarks. pervision over an agency about which the "There has been advanced by various phil­ The SPEAKER. Is there objection public knows almost nothing at all. osophical followers of the Reverend Martin to the request of the gentleman from The Clifford committee evidently is already Luther King, Jr., one of the most extraor­ Louisiana? looking into the case. A congression-a;Iinves­ dinary suggestions ever made in Anglo­ There was no objection. tigation is also in order. Congressional su­ Saxon or American legal annals. As a mix­ Mr. BOGGS. Mr. Speaker, the entire pervision of the Nation's intelligence activi­ ture of sophistry and soft headedness, brewed ties is obviously inadequate. A joint com­ by nonlegal or corroded legal minds, I assert Nation is watching anxiously as negotia­ mittee, similar to that which watches over that this suggestion has spawned the present tions continue between the major steel atomic energy, has been urged by many wave of destruction now sweeping the coun­ companies and the United Steel Workers. Members of Congress; it is badly needed . . try. Everyone appreciates, I believe, what Serious damage has been done to American "In brief, this proposed doctrine is that if would happen to our prosperity here at relations with many govm-nments by CIA ac­ any individual citizen or group of citizens, home if nearly half a million steelwork­ tivities in the past, particularly in Asia. In after meditation, come to the conclusion that ers were to be idled by a strike, and if Jakarta last spring, President Sukarno and any law is unju~t; and further conclude many members of his cabinet were reading a that if apprehended he or they are w1lling to hundreds of thousands more were to be new American book, "The Invisible Govern­ accept the penalty imposed for violation of laid off in other industries because of a ment," and using its confirmation of CIA the law-then it becomes morally justifiable shortage of steel. But that is not the intervention in the 1958 Sumata'a uprising to to break the law openly and notoriously. only threat which faces us. September 3, 1965 CONGRESSIONAL -: RECORD- HOUSE 22889 The whole country has another stake would continue to rise. A long strike citizens, the following members serVe on in these steel negotiations. That stake would cost this country an additional 3 the ta.sk force: is nothing less than the world strength million tons in our steel trade balance, ~ William H. Av~ry, Governor of of the American dollar. To preserve the loss of about another $400 million. And Kansas. strength of our dollar, we have launched many of the foreign suppliers are now in­ Julian B. Baird, Under Secretary of a successful campaign to achieve a bal­ sisting on long-run contracts as their the Treasury for Monetary Affairs, ance of payments in our trade relations price for taking on new customers. Such 1957-61. with other nations. The success of that contracts would continue even after the ·FRANK T. Bow, Representative from the campaign is now in jeopardy. Steel plays strike were settled. The loss could again 16th Congressional District of Ohio. a large role in tliis Nation's balance· of be permanent, as it was in 1959. The George S. Eccles, president of First payments and, unless a peaceful and re­ costs would be borne by both manage­ Security Corp., Salt Lake. City, Utah. sponsible settlement can be reached ment and labor in steel, and by the whole Mrs. Rosemary Ginn, Republican na--­ without a strike, that role in the months Nation as well. tional committeewoman for Missouri. ahead will be exceedingly destructive. With steel imports already running Cliff Hansen, Governor of Wyoming. Back in the mid-1950's, steel made a · over a million tons a month, filling more Kenneth C. Kellar, Kellar, Kellar & large, positive contribution to our bal­ than 10 percent of all our domestic Driscoll, attorneys, Lead, S.Dak. ance-of-payments situation. America's needs, we can ill afford a further in­ Peter O'Donnell, Jr., chairman of the balance of payments last showed an an­ crease because of a strike. Republican Party of Texas. nual surplus in 1957-a surplus of some We have asked American industry to Clarence B. Randall, Special Assistant $520 million. In ·that year, steel exports conduct its investments abroad in such to the President on Foreign Economic exceeded steel imports by some $825 mil­ a way as to cut foreign exchange costs. Policy, 1956-61. lion-more than our entire· balance-of­ We have asked our banks to limit their Raymond J. Saulnier, Chairman of the payments surplus. Last year, however, loans outside this country. We have President's Council of Economic .A-dvisers, we showed a deficit in our balance of reduced the amount of duty-free souve­ 1957-61. payments of $3.1 billion. And in that nirs that Americans traveling abroad Lewis L. Strauss, Chairman of Atomic year, steel imports exceeded steel exports can bring back into this countrcy. We Energy Commission, 1953-58. by $146 million. The effect of the de­ have asked these sacrifices of the Ameri­ Robert D. Stuart, Jr., national com.. cline of exports and the rise of steel im­ can people and of American industry, and mitteeman for Illinois. por·ts on our balance-of-payments prob­ they have responded magnificently. Sinclair Weeks, Secretary of Com­ lem is, therefore, clear. Of the $3¥2 They are entitled to ask that the steel merce, 1953-58. billion unfavorable shift in our balance negotiators be similarly concerned about. JOHN J. WILLIAMS, U.S. Senator from of payments which has occurred over the defending the dollar as they carry on Delaware. · last 7 years, steel alone has accounted their discussions. The subject matter of this report is one for almost $1 billion, or one-fourth of By continuing operations, by main­ of the most difficult and persistent prob­ the total. taining stable prices, by moving ahead lems which confront the National Gov­ Much of this shift in the competitive with its dynamic modernization plans ernment. As might be expected from position of American steel can be traced which call for investment outlays of $2.3 the caliber of the people who participated to the paralysis caused by the 1959 strike. billion next year, the steel industry can in drafting this report, the document That strike, lasting 116 days, dealt a reverse the trend of the past in world clearly analyzes the basic causes and severe and crippling blow to our balance markets. It can join our other indus­ presents nine specific workable ·recom­ of trade in steel. As domestic supplies tries in demonstrating once more the mendations for coping with them. This of steel became uncertain, and then miracle of American productivity and report should lead to better understand­ dwindled, American companies looked for efficiency which generates the world's ing of the nature and gravity of the prob­ new sources, and they found them. New largest trade surplus. The future of our lem. I hope that it w111 spur the ad­ channels of trade were opened, and trade position in steel is vital to steel­ ministration to a reconsideration of American firms soon discovered that workers, to stockholders and manage­ some of its policies in order to deal good quality steel could be bought abroad. ment, and to the whole Nation. Whether effectively with a situation which could When the strike ended, those channels that position is to improve, or grow stead­ contribute to a breakdown in the inter­ remained open. Steel imports continued ily worse, lies in the hands of the men national monetary system and a depres­ at more than twice their prestrike level. negotiating the steel labor settlement sion of serious proportions. This year, the American payments def­ today. Mr. Speaker, I include at this point icit will be sharply reduced from last the text of the report made by the task force on Federal fiscal and monetary year's $3.1 billion level. The superb vol­ THE BALANCE OF PAYMENTS, THE untary cooperation of our banks and our policy of the Republican coordinating manufacturing companies in their lend­ GOLD DRAIN, AND YOUR DOLLAR committee: ing and investment policies is thus add­ The SPEAKER. Under previous order THE BALANCE OF PAYMENTS, THE GoLD DRAIN, ing mightily to the strength of the dollar. of the House, the gentleman from Wis­ AND YOUR DOLLAR In the second quarter of this·year, our consin [Mr. LAIRD] is recognized for 15 SUMMARY balance of payments achieved its first minutes. I. The U.S. balance-of-payments position quarterly surplus in nearly 8 years, in Mr. LAIRD. Mr. Speaker, on August and loss of gold evidence a critical situation. the amount of $132 million. But we 30, 1965, the Republican coordinating The facts earned that surplus in spite of· a steel committee approved an outstanding re­ The gold supply of the United States b&B trade deficit of $221 million during the port submitted by its task force on dwindled from $23 billlon to under $14 bllllon same quarter. American steel users felt Federal fiscal and monetary polic:;y en­ in the last 8 years. they had to hedge against the threat that In the first 6 months of 1965 the loss of titled, "The Balance of Payments, the gold was $1.2 b1111on, exclusive of a transfer labor and management in steel might Gold Drain, and Your Dollar." to the International Monetary Fund. once again let the indUstry shut down. The task force on Federal fiscal and The country is committed to keep approxi­ The steel deficit makes the overall sur­ monetary policy is composed of distin­ mately $9 billlon in gold to back its currency, plus even more remarkable. But it also guished citizens from public and private leaving less than $5 billion of gold to use in shows the magnitude of the economic life who have expert knowledge of this foreign payments. problems that brinksmanship in steel complex field of policy. The chairman For the last 7 years American dollars have been fl.owtng overseas (for investments, 1m­ negotiations have .created for this coun­ of the task force is Maurice H. Stans, ports, loans, foreign aid, tourism, military try. Even without a strike, the steel who was Director of the Budget Bureau purposes, and other spending) at a rate that trade deficit is likely to be half a billion of the Federal Government during the has exceeded the infl.ow of dollars from other dollars thifi year. ' . Eisenhower administration. The vice c_ountries by an average of about $3 billion a A strike would greatly enlarge that chairman is Mr. George Champion, year. ~ , a result, the country now owes $28 bU­ loss. In the opening· days and weeks of chairman of the board of directors of llon ' in short-term dollar balances held by a strike, orders, placed ·abroad would the Chase Manhattan Bank of New York foreign claimants; for which they can de­ quicken. If the strike continued, Imports City. Along with these distinguished mand payment, directly or indirectly, in gold. 22890 CONGRESSIONAL RECORD- HOUSE September 3, 1965 The margin of our exports over imports expected crisis or unfavorable economic 5. The Republican recommendations. has shrunk alarmingly in recent months, at development. 6. The urgency of achieving a lasting the rate of about $2 billion per year, from 5. Enlarge efforts to build export trade, solution. Evide-nce of the problem earlier levels. 1 including tax, depreciation, and other eco­ In early 1965, the net outflow of dollars was nomic policies, and the encouragement of Existence o! the problem 1s confirmed by stemmed only by the Government's admitted­ technological and productive superiority, the volume o! material appearing in the ly temporary expedient of harshly restrict­ to enhance the competitive position of public press about it, the profusion of ing American direct business investments American business and labor. speeches being given by administration oftl­ abroad and limiting private lending overseas. 6~ Increase promotional efforts to en­ cials telling what they are doing about it, courage foreign tourism in the United States, The significance their claims that their efforts are working, with greater reliance on private agencies. their explanations of failures, and their at­ The United &tates has failed to bring its 7. Redetermine the extent of need, under tempts to answer criticisms of their policies. international balance of payments into even present conditions, for United States mili­ Repeated warnings by monetary organiza­ temporary equiUbrium except by the imposi­ tary forces in the European theater, with the tions, experts, and officials abroad indicate tion of ultimately self-defeating Government objective of reducing our expenditures there. their concern. controls. 8. Confine American m111tary assistance Only this year the administration recom­ The Government's management of the Na­ generally to countries' committee to the side mended, and Congress passed, a bill which tion's monetary and fiscal affairs has shaken of the free world in the struggle against eliminated the requirement for gold as a the confidence of other nations in our abUity . Communist subversion and aggression. backing for the deposit 11ab111ties of our to find lasting solutions to our balance-of­ 9. Reduce the cost of foreign economic Federal Reserve banks, retaining only the payments problem. aid programs, primarily by directing assist­ 25-percent gold requirement against the note The international monetary system, which ance to those countries which maintain a liabilities of the Federal Reserve system. relies heavily on the dollar as the key inter­ hospitable climate for private investment This was an emergency measure to free more national reserve currency, has been impaired capital, and by stimulating private initiative of our gold stock for payment of foreign by the U.S. balance-of-payments deficits to here and abroad to lead in their develop­ claims. The administration had allowed the point where drastic changes in the sys­ ment. itself to be forced into a position where it tem are being ca.lled for. This Republican program calls for the re­ had to change the law or break it. The Unless these conditions are corrected sponsible use of fiscal and monetary poli­ move postponed an eventual reckoning, but promptly, they can lead to loss of value for cies, for realistic reductions of Government contributed nothing to finding a solution the dollar, loss of American strength at home oversea economic and military programs, and for the basic problem or to stopping the and leadership abroad, loss of vigor in our for steps to increase the return flow of dol­ demand for gold. economy, and loss of jobs, welfare, and secu­ lars. It would provide a fundamental and Dramatic, objective evidence is also avail­ rity for individual Americans. lasting solution to our balance-of-payments able in the economic statistics: II. The Democratic administration has not problem. 1. Beginning with 1958, the United States only fa.iled to deal effectively with these con­ Once a program of this character took hold has had a large international payments ditions but has contributed to making them it would be possible to discard the adminis­ deficit every year, which means that more worse: tration's expedients. The recent restrictions dollars have flowed out of the country than It has attempted to reassure the public on duty-free imports by American tourists have come back into it. with unwa.rra.ntedly optimistic statements could be relaxed immediately. The stop­ 2. Gold has been moving overseas to instead of facing the problem with appro­ gap measures to limit private overseas invest­ finance part of these deficits, with the result priate action. ment--the interest equalization tax and the that the country has lost about one-third of It has consistently opposed the use of so-called voluntary restraint program--could its gold stock of 8 years ago. time-proven methods of monetary and fiscal be dismantled at an early date. 3 . The short-term claims of foreign holders restraint. Adoption of this Republican program against the United States are now twice its It has adopted artificial controls over the would serve notice to the world of our de­ gold stock, and if all the holders of these outward flow of capital as an expedient to termination to manage our financial affairs claims were to demand payment in gold we avoid the decisive steps needed for an effec­ constructively, to defend the dollar, to build could not pay half of them. tive long-term solution. our national vigor, and to enhance our In short, there is Widespread agreement Its major actions, which restrict American moral, military and economic power to out­ among authorities, among leaders of both investment in foreign countries, are such as perform and outlast world . political parties, within the Government of to be ultimately self-defeating. _ It would allay concern over the adequacy the United States and among officials of Many of its efforts and proposals have of international liquidity and provide a solid other countries, that the U.S. international been so picayune as to be meaningless, such foundation for world economic stability, de­ finances are in disorder. The statistics show as cutting down the small amount of goods velopment and prosperit y. clearly that this is the case. American tourists can bring back from over­ In addition, it would enable the United seas without payment of duty. States, as the possessor of the world's How the situation developed It has persisted in out-of-date programs strongest economy, to deal from a position of ·For many years prior to World War I, and which involve excessive miUtary spending rebuilt and growing strength in negotiations until the depression of the 1930's, England in . to improve the international monetary was in effect the world's banker. The pound It has a.llowed foreign aid programs to system. sterUng was recognized everywhere as the cause an excessive drain of our dollars. All Americans can proudly and confidently preferred medium for payment of interna­ It has allowed the balance-of-payments support this program and its objectives. tional debts, transfers of capital across na­ tional borders, and for foreign exchange uses diftlculties to grow to a point where proposals THE BALANCE OF PAYMENTS, THE GOLD DRAIN, generally. In the thirties, this international are being made for changes in the interna­ AND YOUR DOLLAR payments system broke down and balances tional monetary system which seem destined The balance-of-payments problem in the to reduce the role of the dollar as the prin­ began to be settled in many different cur­ international accounts of the United States, rencies with continually fluctuating rates­ cipal international reserve currency. and the outflow of gold from the United a condition which in itself hampered inter­ It has followed monetary and-fiscal policies States, are symptoms of a danger affecting national trade and was an obstacle to gen­ which impair the Nation's capability to deal every American's job, and income, the fu­ eral worldwide recovery from the great constructively with economic recessions. ture prosperity of the rest of the world as depression. m. The Republican Party recommends well as the United States, and, in the larger Following World War ll, the United States that the following measures be adopted by picture, the question of whether the free emerged as · the world's strongest economy. the administration and the Congress without world will maintain the economic strength The economic strains or·war were less severe delay: to prosecute and eventually to win the cold on it than on other combatant nations. Its 1. Give top priority to developing a solu­ war. industrial plants were not d-a.m·aged as were tion to our balance-of-payments problem Continued failure to deal adequately and those of other countries. The accumulated which wlll be lasting and constructive for promptly with the problem could contribute demand of the war years resulted in a rapid the rest of the world as well ~s for ourselves. to a breakdown in the international mone­ expansion of our industrial plant and brisk 2. Jointly, with our all1es among the major tary system. with the possib111ty of bringi_ng economic a.ctivity. industrial and trading nations, work ag­ to the United States and other free nations At the same time, the United States as­ gressively to strengthen international mone­ a depression of serious proportions and du­ sumed responsib111ty for helping to repair tary arrangements along noninflationary ration. In such circumstances, everyone the destruction in other countries. The war­ lines. would suffer. time "arsenal ·of democrary" for Western 3. Lend support to a monetary policy This paper analyzes the problem as fol- civ111zation converted itself into the peace­ ·which ·win narrow .interest rate differentials lows: time supplier of goods, services, and capital between the United States and other coun­ 1. Evidence of the problem. to rebuild the ravaged economies of our tries. 2. How the situation developed. friends and enemies alike. In this the ef­ 4. Adopt domestic fiscal policies which 3. 'Ole problem today. forts of private capital were supplemented avoid inflation and which preserve an ample 4. The failure of the Democr.atic adminis­ by Marshall plan grants and by other for­ reservc;>ir of str~nith to deal with anY un- tration's attempted solutions. eign aid programs. September 3, 1965 CONGRESSIONAL RECORD- HOUSE 22891 This employment of n&Ttional strength and This multipronged approach, which was So, the problem resolves itself into four wealth resulted in the establishment of the accepted in the United States and abroad critical aspects: dollar as the world's. principal reserve cur­ as both timely and effective, was inade­ 1. How to manage our economic affairs to rency. It was an accidental benefit. It was quately followed up by the succeeding Demo­ merit and retain a role of world financial unplanned. But it helped the world and cratic administration. It even blithely re­ leadership. it bestowed prestige on the United States versed some of the most effective measures. 2. How to manage the world's key cur­ as the world's financial and economic leader. So now a truly ironic situation has devel­ rency, the dollar, so as to maintain confi­ During much of this postwar period the oped. The revitalized and financially strong­ dence in it. United States ran a deficit in its balance of er European governments have grown 3. How to maintain adequate but not ex­ payments, as dollars :tiowed abroad to help alarmed at our lack of financial discipline cessive international liquidity. rebuild the world. The dollar was in demand and have decided that gold bars may prove 4. How to strengthen present world mone­ everywhere. It was not just "good as gold," a better long-term investment than dollars. tary arrangements. it was better. The United States became This conviction on their part has been af­ The problem of confidence in the manage­ the world's banker, providing its interna­ firmed by their concern about present U.S. ment of the dollar is central. If other coun­ tional currency needs. Its balance-of-pay- . policies of stimulating growth by artificially tries regain confidence in that management, ments deficits, if held within reasonable low interest rates and unduly expanded a balance-of-payments deficit of reasonable limits, would not have been dangerous; they credit. size can be a symptom of strength, not of would, up to a point, have merely offset the Whatever the motivation of other govern­ weakness. Dollars bearing interest wUl surpluses of the war years, while helping ments, the result has been that they have again be in more demand that non-interest­ to meet the world's need for international put pressure on the dollar, exchanging it for bearing gold. And the gold drain w111 either financial liquidity. gold. The consequence, for which our own terminate or reverse itself. But by the late 1950's things were begin­ Government's policies are responsible, has Under these circumstances, the United ning to change. The "dollar gap" had dis­ been an undermining of the dollar's standing States, with its house in order, and its cur­ appeared. We were faced abroad by rebuilt as the world's leading reserve currency. rency the strongest in the world, can take industrial nations competing with the The administration's attitude of nervous the lead in improving international monetary United States for export markets and invest­ disapproval of foreign gold demands, its arrangements to achieve world economic ment opportunities. Deficits continued, meager palliatives and harshly restrictive growth and stability for the years ahead. however, as did foreign military and eco­ efforts to remedy m atters, together with its The failure of the Democratic administra- nomic assistance commitments, the latter continuing barrage of publicity to bolster tions' attempted solutions with emphasis transferred largely to under­ domestic political confidence, have caused The Democratic administrations have had developed and Communist-threatened na­ growing concern. Actually, the administra­ tions. almost 5 years to solve the problem but have tion's attempts to deal with the problem are failed to do so, because they have attempted As the finances of industrial nations im­ compounding it rather than solving it. to deal with symptoms rather than under­ proved, it was only natural that their officials The problem today lying causes. Like treating a patient with a and bankers felt it wise to build their gold fever by putting him into a tank of cold holdings. This, too, would not have been Few people realize frully the extent to which the prosperity of the United States, water, this may alleviate some of the dis­ harmful to the United States if it h ad been comfort, but it is no substitute for a good held within reasonable bounds. Unfortu­ and of all other nations, is dependent on the exceedingly complex arrangements for the antibiotic to k111 the germ responsible for the nately, that has not been the case. Failing ailment. to respond adequately to our gold losses and international flow of money and gold, whether and our balance-of-payments deficits, the as payments for imports and exports, as in­ The Democratic administrations have tin­ Democratic administrations since 1960 have vestment capital, as intergovernmental loans kered with the difficulties by attempting to not applied the measures necessary to main­ and grants or as changes in the reserves adjust some items or inflow and outflow of tain the Nation's gold supply and the future backing an individual country's currency. payments. They have not gotten at the basic strength of the dollar. Nor are they fully aware of how easily and causes, the principal ones of which are their In 1959 and 1960, when the balance-of­ rapidly that whole system, which is based own monetary and fiscal policies. In seeking payment s deficit first became a matter of primarily on confidence, can deteriorate to achieve political objectives by easy money through poor management. · policies, and by entering into large govern­ concern, the Eisenhower administration had mental spending commitments, they have responded promptly, as noted in the January The key to understanding the situation 1961 Economic Report of the President: sown the seeds of future economic weakness. created by the deficit in the U.S. balance of These policies do not inspire confidence at " * • • the effort centered on measures to payments and loss of gold lies in understand­ increase U.S. exports and to reduce the bal­ ing how the world's money supply is pro­ home or abroad. ance-of-payments impact of Government vided and how that supply is used to fuel Most of the direct steps the administration military and economic programs abroad in a the world's economic machinery. has taken have been too little and may also manner consistent with our responsibilities." have been too late. Some have been of so There is not enough gold in the world to little consequence as to have negligible effect. · Specifically, the Eisenhower action included handle all the transactions for which a these steps: (a) · a national export expan­ The measures that have had some effect are medium of exchange is needed. Faced with of a short-run type, sure to be destructive sion program, including improved arrange­ this situation, cre<;litors in international ments for guarantee of short- and intermedi­ in the longer run of our national and inteT­ trade will accept hard currencies in lieu of national interests. ate-term export credits by the Export-Import gold. A hard currency is one that is both in Bank, and active governmental support for good supply and is well-managed by its Here are the principal measures under­ reduction of foreign discriminatory restric­ country of origin, so that people have faith taken by the administration: tions on U.S. goods and services; (b) re­ that it wm remain hard and not deteriorate 1. Reduction of duty-free allowances for orientation of activities of commercial at­ through inflation. American tourists returning from other taches of our embassies abroad and State When the supply of gold to handle world countries. Department policy generally, from one of transactions is inadequate, an additional 2. Export trade promotion and assistance. assisting foreign businessmen in selling to medium of exchange--a hard currency-is 3. Promotion of foreign tourist travel in the United States, to a policy of promoting needed to supply liquidity. The liquidity for the United States. · export sales of· American products; (c) world use today is supplied principally by the 4. An interest equalization tax. measures, as early as October 1959, to tie U.S. dollar. The British pound has been in 5. The President's "voluntary program" to military and economic assistance activities second place as a "key currency." reduce private U.S. investments abroad. of the Department of Defense, International Currencies get into world circulation 6. Partial tying of foreign aid to .exports; Cooperation Administration, and Develop­ through their home country running a bal­ and steps to offset overseas m111ta:ry costs by ment Loan Fund to procurement· in the ance of payments deficit, more dollars (for sales of military material to other countries. United States; (d) an executive order in instance) fiowing out each year than flow­ There have been, other steps, too, but they January 1961 prohibiting U.S. citizens and are miniscule. For example, tours abroad organizations from holding gold abroad; (e) ing in. In the postwaT period, the world looked to by West Point and Annapolis undergraduates meafures ·in 1960 to effect a progressive re­ were canceled; this wm save less than $1 duction in the number of military depend­ the dollar with confidence; the willingness of foreigners to hold the increasing amount of million in a multib1llion dollar problem, ents in Europe; (f) initiation of negotiations at the loss of fami11arizing our future of­ with Germany that eventually resulted in dollars resulting from the recurring annual · deficit in the U.S. balance of payments was a ficers with m111tary installations and terrain that country assuming a major· share of the in countries where th~y may someday be cost of maintaining U.S. military forces sign of the dollar's stable value and accept­ called upon to defend American interests. there; (g) appropriate monetary and fiscal ab111ty as a dependable medium of exchange. An item like this, which reduces the average policies to provide incentives to attract for­ But these accumulated deficits have now annual dollar outflow by about one one­ eign funds and to keep dollars at home, as built up to $28 billion worth of dollar claims hundredth of 1 percent at a cost in future well as to avoid the potential inflationary against the United States with only about m111tary advantage, is a. "little-think" pressures that could have developed in the $14 b1llion in gold stock to pay them (of appro~h. course of financing a large public debt in­ which only $5 blllion is now legally avail­ The widely publicized recent move to re­ crease in 1959. able for such use). duce further th~ duty-free all~wance to 22892 CONGRESSIONAL RECORD- HOUSE September 3, 1965 returning American tourists is an unneces­ such measures, or even indications that sound long-range policies rather than on sary harrassment of the citizenry to give the such action may be considered, have a strong expedients,such as so-called voluntary con­ appearance of action in the hope that time tendency to compound the problem rather trols of capital outflow. wlll make a real effort unnecessary. The than contribute to its solution. The United States should develop its posi­ administration in 1965 proposed the mo­ The Democratic administration concedes tions and its plans for strengthening the mentous step of reducing the allowance from that the restrictions on foreign investments world's monetary relationships. The objec­ $100 to $50. The Congress wisely rejected are intended as temporary measures, not a t!ves should be: this bit of sllliness. permanent solution. It hopes that a per­ 1. The supplying of adequate but not ex­ Promoting export trade is sound policy. manent solution will somehow happen, but cessive world liquidity. At present only 4 or 5 percent of the Ameri­ it has no evident program for causing it to 2. The providing of a means of discipline can gross national product goes into export happen. It has freed some domestic goild to assure adjustments by countries when channels. Much more needs to be done to reserves by getting Congress to withdraw needed to keep their international accounts bulld our export markets. part of the requirement of gold as a backing close to balance. Increasing foreign tourist travel in the to our monetary and banking system, but 3. Maintaining of adequate fac111ties for United States is highly desirable. Reducing this merely bought time--it created no more emergency coping with temporary balance­ our present "tourist gap" (what our tourists ab111ty to pa,y international debts. of-payments deficits of individual countries. spend abroad less what foreign tourists spend The deficits of recent years would have 4. The providing of policies and means to here) of $1.6 billion or more annually could even larger except for the fact that some promote expanding and competitive trade help our balance of payments and stimulate foreign countries have made prepayments on and unrestricted movement of capital. better international understanding in the their postwar debts to the United States. 5. The assuring of arrangements. to reduce process. However, coupling such a program It is doubtful that this can be relied upon the possibility of individual countries dis­ with injunctions to Americans to stay home much longer as a significant source of pay­ is international double talk not conducive to ment inflows, in view of the relatively small rupting the international monetary structure a-chieving either objective. Cultural isola­ remaining amounts that are likely to be through unsound domestic economic policies. tionism is a poor weapon with which to ad­ collected from the countries that have made The International Monetary Fund has met vance the cause of a free society against the such prepayments. these requirements with a laudable degree aims of communism. The United States cannot solve this prob­ of success. Further improvements to main­ Twice the administration has attempted to lem by reducing gold reserves, nor by a tain that record and to augment the capa­ stem the adverse balance-of-payments tide by facade of restrictive, short run, penny wise, bility of the Fund to achieve these objectives major expedients. In 1964, it requested and little-think, isolationist measures. Such are now in order and preferable to radical secured from Congress an interest equaliza­ measures may cover the pro,blem up for a plans for change or to creation of wholly tion tax to reduce American portfolio invest­ short time, but are misleading none of the different experiments through new interna­ ment overseas. When this falled to produce experts at home or abroad. It is their con­ tional systems. all the desired results, it adopted in 1965 a fidence, in this case, that is the key to the Ch!l-nges in the world monetary system "voluntary program" for restriction of pri­ problem. should be evolutionary and gradual, to mini­ vate U.S. investment abroad. These meas­ Neither will the American people be satis­ mize speculation and instabllity. They ures turn back the clock on 30 years of prog­ fied for long with little more than good in­ should progress in orderly fashion. The ress from isolationism and protectionism to­ tentions. They will look for careful analysis, present system, stemming from the Bretton ward progressive reduction of barriers and depth of understanding, discrimination Woods agreement, has bridged the transi­ toward an expanding world movement of between cause and symptom, and purpose­ tion from World War II's ravaged world to capital and trade. They are steps backward, ful and determined actions. , today's vastly expanded international trade and capital development. It can be adapted. inviting retaliation in kind, for which this The Republican recommendations country and the rest of the world wlll suffer. to present world needs without revolutionary Actually, one of the largest continuing and Top priority must be assigned to restor­ change. The United States should point the expanding sources of dollar inflows is the re­ ing and maintaining a reasonable balance in way. turns on investments made in earlier years. the Nation's international payments through 3. Lend support to a monetary policy which A study made by the Brookings Institution genuinely effective, long-range policies. To will narrow interest rate differentials be­ estimated that, on a cumulative basis, the this end, the Republican approach rests on tween the United States and other coun­ dollar outflow initially entailed in new direct the following premises: tries. foreign investment and loans is fully offset in The solutions should be directed at under­ The administration's failure to encourag,e 6 years by the dollar inflow it produces, and lying causes, not merely at symptoms. use of corrective monetary policy is a major · that by the lOth year it has produced inflows They must contribute to both domestic underlying cause of the balance-of-payments more than twice the amount of the initial and international economic stab111ty and problem. Its rigid and uncompromising com­ growth. mitment to easy money as a magic key to outflow. The administration's policy of re­ They must help to provide adequate but stricting foreign investment means that 1n domestic expansion is a poor ohoice of means not excessive international liquidity and as opposed to wise and flexible policies serv­ future years this increasing return flow is world monetary reserves. sacriflced to the expedient of temporary ing all the valid goals of dO.Jlle&tic and inter-:­ relief from tough decisions that ought to be They should make possible the prompt na.tdonal expansion. Our European creditors made 1n other areas. This is penny wise, withdrawal of restrictive government con­ are watching with increasing impatience for pound foolish government. trols over American investments in foreign the United States to exercise the monetary Apart from the potential loss in invest­ countries. discipline which alone can estwblish their ment income, the administration's restric­ They should foster expanding interna­ confidence in the continued soundness of the tionism entails other major fallacies. It ts tional trade, travel, investment and coopera­ dollar. hostile to business, freedom, it m111tates tion among free world nations and people. The administration has consistently against international cooperation, it inhibits They must be aimed at strengthening, and favored a policy of artificdally low interest growth of free markets, it reduces export op­ then maintaining, the U.S. position of inter­ rates, regardless of cost to other national ob­ portunities, it tends to cause balance-of­ national financial leadership. jectives. Low interest rates are appropriate payments problems for other countries, it in­ The Republican Party recommends that in a period of economic slack; they are wholly vites retaliatory protectionism, and impedes the following measures be adopted by the ad­ inappropriate during a period of high eco­ the development of economies in other free ministration and the Congress: nomic ootivity marked by inflationary warn­ world countries by denying to them the cap­ 1. Give top priority to developing a solu-· ings and accompanied by an unsolved bal­ ital to bulld the stability and strength to tion to our balance-of-payments problem ance-of-payments problem. Interest rates withstand Communist enticements. It is which will be lasting and constructive for the which are market determined, rather than contrary to all that America stands for. rest of the world as well as for ourselves. politically determined, will rise in periods of Another serious concern relative to the 2. Jointly, with our allies among the major high demand. In so doing they act as a brake so-called voluntary controls is the sanctions industrial and trading nations, work aggres­ on reckless expansion of credit, curb the available to the Government for enforcing sively to strengthen international monetary tendency to excesses in the business cycle, voluntary compliance and the possib111ty that arrangements along noninflationary lines. apply restraint over the outflow of funds from under the stress of some future temporary The role of the United States should be the country, attract infiows from other na­ emergency such voluntary controls might be to lead in consideration of any changes tions, and moderate inflBitionary tendencies. hardened into compulsory controls. Unde­ in the world monetary system. It cannot This administration's policy of insistence on sirable as controls by Government intrinsi­ permit other countries to usurp its posi­ artificially low interest rates is damaging to cally are under a free enterprise economy, tion as the world's banker or to lead It our national interests both in courting do­ their imposition on international commer­ into unwise compromises. mestic inflation and in contributing directly cial and financial exchanges has the added International meetings are timely from to our balance-of-payments problem. penalty that they are interpreted abroad as the standpoint of the present need for im­ In the past 4 years, the adminlstra.tion's possible signs of a deteriorating econonnc proved world monetary arrangements. easy money policies have expanded credit position. Prospects for the success of such meetings twice as fast as the rise in real production. When so much o! the problem lias to do will be greatly improved, however, when Interest rates are well below those in other with ma.inlta1ning the confidence of the the United States can participate from a industrial countries, and the amount of per­ 1lna.nc1al community at home and abroad position of leadership based on management sonal, private, and government (local and 1n the management of our monetary affairs, of its international payments through Sta.te as well as national) debt in the United. September 3, 1965 CONGRESSIONAL RECORD -liOUSE 22893 States is so high as to be cause for comment The potentials are much greater than we the United States by word of mouth good­ 1! not general concern. have achieved, and our present Government will from satisfied visitors than any amount All or this risks loss of confidence in the activities to induce increased trade coUld be of official Government propaganda. Our bal­ dollar. Foreign holders of dollars know by improved. Our share of total world export ance of payments can be improved in this bitter experience that sooner or later credit trade has not kept pace with the growth of manner while the people, customs and inten­ inflation brings price inflation. They know world exports since formation of the Euro­ tions of our .country are appreciated by more that failure to use monetary and fiscal policy pean Qommon Market. Here again, improved and more friends from other nations. properly has been a major cause of every results can be obtained through coordinatecl 7. Redetermine the extent of need, under devaluation of currencies in history. private and Government action. . present conditions, tor U.S. military forces Further credit inflation in the Ui:uted Independent committees of economlsts, in the European theater, with the objective States could involve the heavy risk or a boom businessmen, labor leaders, export-import of reducing our expenditures there. and bust pattern which would be damaging bankers, and marketing experts, cooperating The time has long since arrived when a at home as well as abroad. Responsible use with the Government, should be encouraged substantial reduction of our military estab­ of credit policy can help avert such develop­ to devise and promote new and imaginative lishment in Western Europe would appear to ments, and contribute to balanced expansion practical means for increasing sales of Amer· be wise if not necessary. Approximately in both domestic and international economic ican products and services abroad. Th1s 700,000 mWtary and associated personnel are sectors. should include stimulating, and removing still being maintained in Europe, at a net 4. Adopt domestic fiscal policies which impediments to, American private invest­ outfiow in the balance of payments of about avoid inflation and which preserve an ample ment in other countries. Such investment $1.5 blllion (approximately half the recent reservoir of strength to deal with any unex· builds markets for American-made goods. annual balance-of-payments deficits). A pected crisis ·or unfavorable economic devel­ Private enterprise needs only tO be un­ force of this size was unquestionably desir­ opment. leashed, and made ·aware of the existence able 15 years ago, as an emergency protec· The administration's fiscal brinkmanship and location of markets, for our exports to tive matter, when our European allies were can lead to disaster. The Vietnam situation, mount under the stimulus of the profit weak and relatively defenseless. But with for instance, will involve many billions of motive. , their economic recovery, the Western Euro­ dollars in increased mil1tary spending, and The Government can help by adopting tax, pean countries should be able to marshall may provide a severe test of whether we have depreciation, and other economic pollciea their own conventional forces against in­ the reserve economic strength to provide that enhance the competitive position of vasion, backed by our continuing firm com· adequate flexibility with which to meet this American business and labor. It can further mitment to assist in their defense. A small heavy increased burden on the budget with- relax depreciation allowances to encourage detachment our our forces can serve as evi­ out pronounced inflation. • plant modernization. It can stimUlate in­ dence of this commitment, backed by our A nation, like an individual, shoUld pre­ dustrial research. It can gradually reduce newly demonstrated ab1llty to airli!t rein­ serve a reserve of strength, because it can the tax burden within responsible fiscal pol­ forcements swiftly to any place in the world never know when emergencies will develop. icy. It can aid in locating potential markets from central bases in the United States, and It is unwise to assume that new economic and. communicating that information to ap­ by our strategic air and missile striking nostrums can repeal the ups and downs of propriate industries. It can help by in­ forces. the business cycle or immunize us from the creased dissemination in diplomatic circles An immediate reappraisal of the extent fiscal demands of military emergencies. The of the truth that freedom of enterprise in and character of our European-based mili­ overstimulation of growth by excessive Gov­ all nations will build an expanding econ­ tary forces and financial commitment in the ernment spending, with deliberate deficits in omy and trade from which every nation will light o! these changes in conditions should times of unprecedented prosperity, are an be the better and stronger, be undertaken both in our country and with invitation to crisis. The administration shoUld particularly ad­ our friends abroad as a matter of urgency. The administration claims cred.it for hav­ dress itself vigorously to negotiating reduced The resUlts should. substantially reduce our ing held the budget deficit to $3% billion barriers t9 trade with European countries. expenditures there. in the last fiscal year; but this is after credit­ It should make a determined effort to fur­ These observations are backed by milltary ing $3 billion of largely nonrecurring re­ ther enhance the status and responsiblllties experts and have been enunciated by both ceipts from Federal Reserve bank surplus, of State Department commercial attaches. Democratic and Republican leaders. They liquidations of Government stockpiles, and Purposeful measures to reorient policies were expressed by the Democratic majority sales of loans and mortgages. A minor re­ and personnel consistent with the changes in in a 1965 report of 'the Joint Economic Com­ cession like that of 1958, with the budget al­ international trade conditions of the past 10 mittee of the Congress: re~¥~y so overburdened, could resUlt in a defi­ years are urgent. The situation is no longer "The committee urges that the review of cit of $20 to $30 billion or more under one of the "dollar gap" and world recovery, Government expenditures abroad focus par-­ the present administration's policies. This but one of brisk competition With other re­ ticularly on the possib1lity of reducing our would not only be infiationary; it would vitalized nations. troop commitments in Europe • • •. Our very likely ignite ·already apprehensive feel­ In recent ·months the margin of exports overseas manpower was not cut back to the ings in world financial circles and could re· over imports has shown an alarming drop. extent which the massive increase in our air­ suit in a run on the dollar that woUld play While some of this can be attributed to tem­ lift capabillty would have permitted • • •. havoc with our whole economy and hopes of porary conditions, it appears likely that the We must reduce our mllltary expenditures in continued progress. The adjustments for favorable 1964 margin of our foreign trade these countries." every person from such a consequence could will not be repeated in the near future unless There is no treason why our European be unbelievably harsh. They would mean more aggressive and effective governmental friends, given a full appreciation of our views vastly higher costs of living, reduced hours of action is applied. should coilltinue to depend on us to carry work, fewer jobs and less income, the wiping 6. Increase promotional efforts to encour­ such large forces on ·their son. Our commit­ out of savings, pensions and insurance, and age foreign tourism in the United States, with ment to the preservation of freedom in West­ the decline of morale and purpose. greater reliance on private agencies. ern Europe will not be reduced by a return This is not a prediction that these things Americans spend billions of dollars tour­ of a considerable portion of these forces to will happen. It is a warning that they can ing in other countries, and this undoubtedly our shores. happen. The safe course is to avoid eco­ contributes in many ways to improved un­ 8. Confine American military assistance nomic fantasies that rigidly deny common derstanding among peoples. Contrary to ad­ generally to countries committed to the side sense and the repeated experience of history. ministration policy, American tourism abroad of the free world in the struggle against Our Government spending policies must not should not be discouraged. Communist subversion and aggression. reject entirely the proven worth of capital Other nations might well benefit, too, if Last year American military assistance was creation through saving, building reserves more of their residents knew the United given to more than 60 countries. In some for emergencies, and maintaining a long run States at first hand. Expenditures by foreign nations American-supplied arms were used balance between income and expenditures. tourists in this country are now around a in local revolutions by forces inimical to 5. Enlarge efforts to build export trade, billion dollars a year, less than 40 percent free world interests. A more discriminating including tax, depreciation, and other eco­ of what American tourists spend abroad. selection of military aid beneficiaries is nec­ nomic policies, and the encouragement of With increased prosperity around the world, essary. technological and productive superiority, to many more foreigners could be attracted to Our military assistance programs should enhance the co_mpetitive position of Ameri­ this country, especially if they could be made be limited generally to countries and ad­ can business and labor. confident as to costs, facillties and attitudes. ministrations which are clearly committed to One of the most favorable factors of in­ The administration's efforts .at improvement the free world and opposed to international flow in our balance of payments equation have been marginally effective. communism. Military aid should consist in recent years has been the excess of our This is a job that can be done best by pri­ almost exclusively of equipment produced in exports over imports. American technology vate action with effective Government sup­ American plants, and should be directed to has outpaced the world and its products are port. Independent committees of travel the free nations surrounding the Commu­ in high demand. agencies, hotel and motel owners, transporta­ nist orbit, who are our first line of defense, Notwithstanding this, American exports tion companies, the press, and others should and nations seriously threatened with Com­ are a very low percentage of our national be encouraged to develop programs for entic­ munist takeover by subversion or revolu­ output and are exceeded in this proportion ing tourists to this country. The effective tion. Any exceptions should be rare and by many European countries and by Japan. operation of such programs will do more for should be required to be clearly justified CXI--1444 22894 CONGRESSIONAL RECORD - ·HOUSE ·. September 3, 1965 in terms of our own overriding national in­ and that more than one-third of mllltary ex­ In publishing this paper, the Republican terests. It is unsound to give weapons to penditures are offset by military exports from Party serves notice to the party in power that nations when we cannot be ·sure that they the United States. · it must be responsible for the consequences wlll be used in our common defense, or to While much of foreign aid is tied to specUic of continuing failure to take prompt and nations from whose hands they may proceed exports, in many cases such aid releases dol­ sUitable action to solve this vital problem. into the possession of enemy forces. lars ~ which otherwise would be spent in the More realistic overseas military assistance United States, to be spent instead in Western programs wm reduce the burden they impose EUrope. Some experts maintain that this WEEK 1965 AND on our balance-of-payments problem. occurs to such a degree that our economic 9. Reduce the cost of foreign economic ald foreign aid is effectively tied to net exports THE NEED .FOR A SPECIAL COM­ programs, primarily by directing assistance to the extent of only 50 to 60 percent. A MITI'EE ON THE CAPTIVE NA­ to tl:iose countries which maintain a hospi­ more reallstic policy would concentrate our TIONS table climate for private investment capital, efforts in countries where help can be used and by stimulating private initiative here soundly and stop the flow of dollars to areas The SPEAKER. Under previous order and abroad to lead in their development. and for purposes which merely support pur­ of the House, the gentleman from Ohio There is Uttle doubt of the basic des1ra­ chases from other nations. Such a policy [Mr. FEIGHAN], is recognized for 10 b111ty of· our foreign economic aid objectives. need not damage our economic development minutes. In their 17 years many of these programs efforts. Mr. FEIGHAN. Mr. Speaker, for sev­ has served effectively in building the free As part of foreign aid reforms, the num­ world and promoting the development of ber of beneficiary nations should be reduced. eral years the Russian imperialists have emerging nations. But this does not neces­ Commitment by recipients to free enterprise vehemently denounced our annual Cap­ sarily warrant their continuance at present principles should be a precondition to eco­ tive Nations Week observance. This levels. nomic aid wherever possible. year's observance was preceded by a vio­ In fiscal 1965, loans, grants, and other as­ Finally, the various aid expenditures-for lent attack from none other than Russia's sistance of various kinds were made to an grants, loans, international loan funds, agri­ chief ideologist, Mikhail Suslov, who is approximate total of 100 countries. There is cultural products, Peace Corps. United Na­ also a member of the Central Commit­ little doubt that close examination wm show tions multilateral programs, refugee relief, tee's Presidium and Secretary of the Cen­ incredible inefficiency, waste, mismanage­ and others--should be brought together into ment and misdirected effort in many of these a single appropriation request for considera­ tral Committee of the Russian Commu­ programs. Some loans are made in dollars tion by the Congress each year, so the Ameri­ nist Party. Here is· the core of his mes­ on terms which clearly indicate that neither can public is fully informed as to the total sage: the principal nor interest is ever going to re­ involved. Especially disgusting is ·the villainous turn to this country. Some grants merely These measures would reduce the drain of demagogy of the imperialistic chieftains of help to support local political objectives or our ·dollars and make the entire program more the United States. Each year they organize to pay running expenses o~ insolvent govern­ effective as an instrument of foreign policy, the so-called , hypo­ ments. Some programs support foreign gov­ as a contribution to world progress, and as critically pretending to be 1defenders of na­ ernment-owned projects which ought to be an aid to 1ndividua1s and nations in learning tions that have escaped from their yoke. done by private agencies under appropriate that solid lasting growth is best attained by local incentives and encouragement. Many responsibility, planning and work •nder the . There have been often equally sharp are of doubtful value to the country in­ incentive of private ownership and competi­ denunciations. What is significant in all tended to be beneficial. Many should be tion. of these cases is the morbid fear with ended. A realistic evaluation of -these facts An analysis of the derivation of balance-of­ which the Russians have consistently would result in a significant reduction in for- payments deficits shows clearly that the in­ viewed the Captive Nations Week res­ eign aid costs. · ternational transactions of the pdvate sector The growth of industry and capital in the in this country are regularly in balance. The olution and the annual observance. developing • nations would be achieved more Government's outlays for military and eco­ This alone should warrant a thorough efficiently and more effectively under the dis­ nomic aid programs overseas exceed its re­ and systematic investigation by us-to cipline of the profit system than under any ceipts of dollars from foreign countries, and find out why, how we can profit from other form. This is the secret of our un­ in that sense account for the entire balance­ it, what new legislation is required to paralleled American material progress and of-payments deficits of recent years. bolster the bastions of freedom. it should be exported with confidence and It is ironic that, under these conditions, All this points up again the pressing conviction. the administration's major actions to deal Private initiative, both from the United with the problem have been restrictive meas­ need for a Special House Committee on States and within the underdeveloped na­ ures directed at the private sector. Clearly, the, Captive ,Nations. Such a committee tions should be recognized and encouraged a major review of Government spending over­ would make this necessary, thorough and as the key to sustained growth and develop­ seas is in order, and recommendations 6, 7, systematic investigation, and very likely ment. Private capital can perform far more and 8 are directed at that objective. would produce solid contributions sim­ effectively than government socialism. Our to aid ought to be directed to nations that ac­ The urgency of achieving a lasting solution ilar those of preceding congressional cept this philosophy. Apprehension about the future of the in­ committees that concerned themselves Furthermore, other industrial nations of ternational monetary situation is increasing. with the Katyn Forest massacre and the free world should be induced to shoulder The United Kingdom is facing a severe mon­ Communist takeovers. It was my priv­ a larger share of the burden of assistance to etary crisis. France is converting more and ilege to serve on the Select Committee developing countries, both directly and more of its liquid holdings to gold. These To Investigate Communist Aggression. through United Nations multilateral pro­ events have raised storm signals for coun­ This was over 10 years ago. The Con­ grams. Their efforts in this respect should tries all over the world. The result could gress can well take pride in the historic be commensurate with their capabilities. be a serious contraction of world liquidity Assistance to other nations by the U.S. and economic activity. This must not contributions of that committee. But Government should be limited largely to our happen. the work begun in the fifties must be ex­ foodstuffs, fibers and goods--and only to the Whether the problem is an immediate one tended by us in this decade, especially in extent needed by them in excess of their of impending economic dislocation, or the view of this mysterious fear on the part abil1ty to pay. The United States should longer range one of strengthening the inter­ of the Russian Communist leaders. Who and can also provide technical assistance in national monetary system, in both cases can say that the causes of this behavior solving problems of agriculture, industry, management of the dollar and maintenance are not worth looking into? commerce and government in accordance of confidence in it are central to achieving with the proven procedures evolved in our successful solutions since it is the world's Mr. Speaker, many of our distin­ own country. principal medium of exchange. guished Members have commented on Such measures would benefit other nations The Republican Party would be derelict if the 1965 Captive Nations Week and have more in the long run because we would be it did not raise its voice to call attention to furnished selected examples of the week's showing them the solid way to development an extremely serious situation in time for tremendous success. I wish to join them and growth, within the potentials of their effective action. own resources and capabilities, rather than The dollar is still the world's strongest cur­ in paying tribute to the National Captive stimulating the illusion that largesse from rency. The United States is still the. leader Nations Committee and its associated the American taxpayers will bring "instant of the free world. There is yet probably organizations for the conduct of the week progress." enough time for prompt action successfully and also in having the following, addi­ The administration position appears to be to correct the present deteriorating situation tional examples of the week's observance that all such expenditures are absolutely and maintain our position as the leader in necessary, and that every effort is being building a world society where every man can which I will include in my remarks: made to minimize their balance-of-payments share in the material benefits that are a pre­ First, in the State of Ohio, the Gov­ impact. It argues that 80 to 85 percent of condition to individual freedom, dignity, ernor's proclamation and that of the economic aid purchases are tied to exports and opportunity to lead the good llfe. mayor of Dayton, along with several September 3, 1965 CONGRESSIONAL RECORD- HOUSE 22895 items of Dayton's observance; second, selves to the support of the just aspirations in Moscow: "With every passing year Capti'Ve of the people of these captive nations. Nations Week becomes a nuisance." .It failed news items on the week in Svoboda of ' FRANK R. SOMERS, to indicate specifically for whom. July 17; third,. an interesting UPI story Mayor of the City of Dayton, Ohio. Professor Dobriansky concludes, "During on the Gerald Brooke show trial; fourth, Captive Nations Week we can begin to con­ the Buffalo observance program and a [From tbe Dayton (Ohio) Kettering­ centrate on the freedom aspirations of 17 declaration from nearby Canada; and Oakwood ~imes, July 29, 1965) million North Vietnamese, and, from there, fifth, a proclamation, programs, news re­ CEREMONY HELD FOR CAPTIVE NATIONS WEEK on those of all other captive nations." ports, and addresses during Pittsburgh's Last week's local observance of Captive Finally, we recall your attention to the observance of the week: Nations Week was climaxed Sunday with a expression of late President Kennedy, in full view of the Berlin wall: "For those who think STA.TE OF OHIO, special program at the Captive Nations Shrine in Dayton, where Brother Peter Lin­ there is no difference between freedom and EXECUTIVE DEPARTMENT, slavery, let them come to Berlin." OFFICE OF THE GOVERNOR, denmann of Chaminade High School was Columbus. the guest speaker. The shrine is located near Holy Cross [From the Dayton (Ohio) Dally News, PROCLAMATION: CAPTIVE NATIONS WEEK, Church, 1920 Leo Street, where a large part of July 22, 1965] JULY 18-24, 1965 the congregation is of Lithuanian descent. CAPTIVE NATIONS WEEK GIVES BOTH PROMISE Whereas the harmonious unification of Captive Nations Week has been established AND WARNING the diverse elements of our free society has in accordance with joint congressional reso­ "Give me liberty or give me death!" These led the people of the United States to possess lution and Presidential proclamation and is famous words of Patrick Henry in 1775 should a warm understanding and sympathy for the Public Law 86-90. strike a warm note in the hearts of all loyal aspirations of peoples everywhere and to The purpose of the National Captive Na­ Americans yet today-and especially this recognize the natural interdependency of the tions Committee, according to Executive Di­ week, Captive Nations Week. peoples and nations of the world; and rector Donald Miller, of Washington, D.C., Today we who live in a free society often Whereas the enslavement of a substantial is to keep people of the free world aware of take for granted and forget the meaning ot part of the world's population by CommUnist the fact that many freedom-seeking men, freedom handed to us as our birthright. We itnperialism makes a mockery of the idea of women, and children are st111 behind the forget that this costly birthright was bought peacefUl coexistence between nations and Iron Curtain. with the blood of our fathers and forefathers. constitutes a detriment to the natural bonds "It is also important for us to remember We forget the reason why our boys· are fight­ of understanding between the people of the that many people living in our own area still ing and dying for freedom in Vietnam. We United States and other peoples; and have ties behind the Iron Curtain," said forget that we must fight· for freedom if we Whereas since 1918 the imperialistic and Dorothy McNab, local representative for the are to keep it. aggressive policies of Russian communism organization. But there are those who cannot forget. have resulted in the creation of a vast empire There are those who cannot forget the de­ which poses a dire threat to the security of (From the Dayton (Ohio) Journal Herald, spicable brutality and tyranny of the Com­ the United States and of all the free peoples July 24, 1965] munists who now fearlessly dictate to the of the world; and" CAPTIVE NATIONS RITES SCHEDULED countries behind the Iron Curtain. There Whereas the imperialistic policies of Com­ Captive Nations Week will be commemo­ are those who cannot forget the frightful munist Russia have led, through direct and rated in Dayton tomorrow at 11 a.m., at the fact that more and more nations are being indirect aggression, to the subjugation of monument of three crosses at the Holy Cross subdued to the same plunder by the continu­ the national independence of Poland,, Hun­ Church, Leo and Regis Streets. ous Communist aggression. There are those gary, Lithuania, , , The special week was set aside in Con­ who cannot and wm not forget the liberty Latvia, Estonia, White Ruthenia, Rumania, gress in 1959 to make Americans aware of and independence now deprived them. , Bulgaria, mainland China, the plight of those behind the Iron Curtain. Captive Nations. Week, set aside by Con­ Armenia, Azerbaijan, Georgia, North Korea, Brother Peter Lindenmann, of Chaminade gress as the third week in July, therefore, Albania, Idel-Ural, Tibet, Cossackia, Turke­ High School, will be the speaker with bene­ serves a dual purpose. First, it extends hope stan, North Vietnam, and others; and diction by Rev. Titas Narbutas, pastor of the for the future to millions of captive people­ Whereas it is vital to the national security Holy cross Church. Several nationalities that someday they may be emancipated and of the United States that the desire for will be represented at the program. once more enjoy the freedom of their own liberty and independence on the part of the homeland. Second, it is a warning to all peoples of these conquered nations should be JULY 23, 1965. Americans-what happened to once-free peo­ steadfastly kept alive: Now, therefore, A w AVI EDITORIAL ple could happen to us. I, James A. Rhodes, Governor of the State SILVIA D. ERIKSON. of Ohio, do hereby designate the week of (By Gregg Wallace) KETTERING. July 18-24, 1965, as Captive Nations Week A listener has said, "But what can I do and urge that all citizens support this an­ about the captive nations?" [From Svoboda, July 17, 1965] nual recognition of the plight of the op­ A good question not easily answered. pressed peoples of Eastern Europe. LOCAL CAPTIVE NATIONS COMMITTEES URGED AT Today, there are more than 25 nations in WOMEN'S CONVENTION JAMES A. RHODES, the world under direct or indirect control Governor. and domination of the horrendous Commu­ UKRAINIAN DELEGATES ATTEND GATHERING nist leaders. These people-literally mil­ NEW ORLEANS, LA.-A call for the creation PROCLAMATION lions-are no different than you and I, except of local Captive Nations Committees in in one area: Too many have either given up Ame·rican communities was made at the 74th Whereas many nations throughout the annual convention of the Gen&al Federa­ world have been enslaved by the imperialistic in utter futility or others have known noth­ ing other than captivity. tion of Women's Clubs by Mr. Mary Dush­ and aggressive policies of Commun1st Rus­ nyck, delegate and secretary of Women for sia; and As individuals we can do little, but as a collective society, made up of masses of in­ Freedom, Inc., an anti-Communist organi­ Whereas the peoples of these captive na­ zation. Held at the Jung Hotel in New tions have been deprived of their national dividuals-with strong political backing­ we can, as suggested by Prof. Lev E. Dobrian­ Orleans, La., from June 7-11, the conven­ independence and their individua-l Uberties; tion was attended by over 2,000 delegates. and sky, of Georgetown University, "begin to fo­ cus the spotlight of world attention and Mrs. Wm. H. Hasebroock of Nebraska is Whereas the citizens of the United States opinion on the total breadth of Sino-Soviet the president of the GFWC which has 11 of America are linked by bonds of principle million members, comprised of 15,500 clubs and family to those who love freedom and imperio-colonialism.'' In other words, it is incumbent upon the in 49 States and the District of Columbia, justice on every continent; and and 150 international clubs in 53 countries. Whereas it is fitting and proper to mani­ entire free world, to raise in one united voice in decrying the menace of communism. Included in the latter are the Ukrainian fest cleru-ly to the peoples of these conquetred National \Vomen's League of America nations the moral and ideological support of We can't do it with vacillation, with com­ promise, with weak spines or with what con­ (" Ukrainok") and Women for Free­ the Government and the people of the United tinually amazes me: The unrealistic, dream­ dom. Mrs. Anastasia Volker, a UNWLA vice States of America for their just aspirations world attitude of the peaceniks, that is, ig­ president and public relations chairman, for freedom, self-determination, and na­ noring completely the inhuman atrocities represented the UNWLA at the convention. tional independence: Now, therefore, committed by the world's Red leaders while WARNS OF RED THREAT I, Frank R. Somers, mayoc of the city of condemning any attempt made by the United In her report, delivered at the interna­ Dayton, Ohio, do hereby proclaim the week States to halt this infringement on human tional luncheon on June 9, Mrs. Dushnyck, beginning July 18, 1965, as Captive Nations dignity and freedom. who is an organization chairman of the Week, and do invite the people of the city of The more blase might say this is over­ UNWLA, warned of the constant threat of Dayton to observe this week with appropri­ simplification, or even a bit corny. communism in our midst, especially Com­ ate ceremonies and activities, and do urge Well, if one gets that impression we mere­ munis•t activity on our college campuses them to study the plight of the Communist­ ly call your attention to the reaction printed and attempts to infiltrate the civil rights dominated nations and to recommit them- last year in Isvestia, the Communist voice groups. She commended the GFWC for its 22896 ·CONGRESSIONAL RECORD--- HOUSE September 3,-- 196_5 re!BOJu~n ~n the "M~~ of CoiJlllluWm" observances and to make appropriate state­ national independence and human freedom! and urged its implement~t~Qn · by !Jl9!llbers ments on tl:).e floor of tbe Congress. Now, the;efore, · · joining local Qa.ptive Nations Comm.tt;.tees "We earnestly ~k your participation in "I, Lyndon B. Johnson, President of the · or form.tn:s new -ones by yn'ltJ.pg w the Na­ tl}e week's observance in Congress, giving United States of America, do hereby desig­ _tion,& O&ptlve ::NaJtions CQmmi.ttee, 1028 Oon­ recognition to the fact that over two dozen .nate the week beginning July 18, 1965, as ~ecticu;t; Avenue NW., Washlngtqp., D.O. captive nSJtions wit}l ~ population close to Captive Nations Week. · She al~ outlined the pw-J>O$es of WFF an9 a billion people represent a powerful deter­ ''I invite the people of the United States especially the contriputions of its president, rent against overt Soviet :a,ussia and Re(l .of America to observe this week with a_ppro­ Mrs. Ge~.a,lcllne Fitch,- a known column1Sit. Chinese aggression and thus a formidable priate ceremonies and activities, and I urge · Mrs. Vollter, in :Qer detatled repor·t, ()Ut­ force for world peace with freedom and jus­ them to gtve renewed" devotion to the just lined the ~1ms, activities, ~nd oonrtrl'bYJtions tice," Dr. Dobriansky stated in his message to aspirations of all people for national inde­ of ~e UNWLA to the culture, ed-qcation, ang Government representatives. pendence and human liberty. welfare of the Ukrainian an<;l 4m~1c~n In all major cities throughout the oountry "In witness whereof, I have hereunto set oommunttfes. . Ukrainian .groups, especially branches and my hand and caused the Seal of the United member organizSJtions of the Ukrainian Con­ States of America to be-affixed. BILIN~UAJ,IsM URGED gress Committee of America, are staging Cap­ "Done at the city of Washington this sec­ Under the theme of "Service for Freedom tive Nations Week observances. ond day of July Jn the year of our Lord 1965, and Growth," the GFWC convention held and of the Independence of the United States several stimulating panel discussions on di-. f1EREMONIES IN GREATER NEW YORK of America the 198th. · verse subjects, such·as: "Morals at Stake on The Seventh Captive Nations Week op­ "By the President: the Newsstands," "Volunteer Groups, ·Key set;vance in Greater New York is sponsored "LYNDON B. JOHNSON. to Community Betterment," "Approaching jointly by the Conference of Americans of "DEAN RUSK, . Problems of Alcohollsm," "The Communist Central and Eastern European Descent "Secretary of State." Danger," and others. A panel on education (CACEED), the Assembly of Captive Euro­ urged b111ngualism from early chi·ldhood. pean Nations (ACEN) and American Friends [Firom Svoboda, July 17, 1965] of the Captive Nations (AFCN). Reports were .given on GFWC contributions C~VE NATIONS WEEK 1965 to such worthy projects as the Congressional On Sunday, July 18 at 10 a.m., a solemn mass at St. Patrick's Cathedral wm be held, In 1959, the Congress of the United States Medal of Honor Grove, Hope, rural schools in adopted unanimously what has · become Mexico, Radio Free Europe, programs in Af­ with the Right Reverend Monsignor John Balkunas, presiding and the Right Reverend known as the Captive Nations Week resolu­ rica and the Near East, CARE, helping for­ tion, in the form of Public Law 86-90, provid­ eign students immigrants to the United Monsignor Timothy J. Flynn giving the sermon and extending the welcome of His ing for the designation of the third week of States, and Korea.n widows, etc. Some of the July as Captive Nations Week. In addition, addresses included "Our American ·Legacy in Eminence Francis Cardinal Spellman. On Sunday, July 18, at 11 a.m., morning the law authorizes the President of the the 20th Century," "The Evolution of France United States to issue a proclamation on the in a Changing World," and "Our Changing prayer and Holy Communion at the Cathedral of St. John the Divine. week each year untU such time as freedom Environment-Good or Bad?" Among the and independence shaJl have been achieved speakers were Chariton Heston, the screen National groups, with flags, are requested to assembly at 9:40 on Sunday, July 18 on for all the captive nations of the world. actor, Benson Ford, of Ford Motor, the Hon­ In keeping with the spirit of the law, the orable Alex A. Masas, Greek Ambassador to west side of Fifth Avenue, opposite St, Pat­ rick's Cathedral. Nati

Michael Komichak, secretary of the Pitts­ need diplomacy. We have our aoadem~es tators. The Russian people have never burgh captive Nations Committee. ~ at Annapolis and West Point, and these are known a representative government. All the The committee was formed to promote as­ fine, But what America needs today, and Russian rulers have had one common aim­ ~Ustance for Eastern and Central European I've been advocating tJ;lis for years, is a good, to maintain and . expand th~ir empire. As nations now under Communl&t domination. solid academy for diploxna.ts to be trained every student of Russian history knows, the by the best known talents in the United rulers of Russia sitting within the Kremlin ADDRESS BY HON. BLAIR 'F. GUNTHER, ALLE- States, so that our diplomats can stand up walls in Moscow have for hundreds of years GHENY COUNTY COMMISSIONER, BEFORE THE to the Communists at the U.N. and other directed their armies to conquer the neigh­ CAPI'IVE NATtONS LUNCHEON, HOTEL RooSE­ meeting places in defense of freedom. This boring people and then to go on beyond. VELT, JULY 21, 1965 might appropriately be called a Freedom. Their goal, always ideologically camouflaged, In 1959, the Congress of the United States Academy. Unless we do that, arms alone will was to force access to the Baltic Sea, Arctic adopted unanimously what has become not win peace or friends for us in the world. Ocean, Pacific Ocean, Indian Ocean, Caspian known as the Captive Nations Week resolu­ Now as for the Communist threat here in Sea, Black Sea, and the Mediterranean. And, tion, in the form of Public Law 86-90, pro­ America. The real and very great danger indeed, they have been very successful in viding for the designation of the third week to which America is subjected by the Com­ forming their vast colonial empire by anni­ of July as Captive Nations Week. In addi­ munist movement throughout the world is hilation, expulsion, and subjection of the tion, the law authorizes the President of the not due to the number of actual and avowed people standing in their way. United States to issue a proclamation on the Communists in America, as J. Edgar Hoover, Latvia, Estonia, and Lithuania are standing week "each year until such time as freedom Director of the FBI, said in one of his New in their way to the Baltic. Sea. This was and independence shall have been achieved York speeches, it is, instead, due to the vast­ very simply admitted by Stalin: "Czar Peter for all the captive nation,s of the world." ly greater number of Americans who, while the Great wanted to secure harbors on the It was altogether fitting and proper that they associate freely with Communist en­ Baltic Sea. We want to have the same." At the President of the United States issued a terprises, do not affiliate with the Commu­ the end of the First World War, the Baltic 1965 captive nations proclamation on July 3 nist Party. Mr. Hoover states that there States gained their independence. The Com­ so that it would appear in the Nation's press are more than a half million Communist munist rulers wanted to recapture these on July 4. The purpose was to symbolize collaborators in this category, while the total countries for their Russian empire and Lenin the unbreakable relationship reached be­ avowed Communists does not exceed 55,000. ordered his armies to attack. But the Es­ tween American freedom and the inde­ This is of vital importance because there tonian, Latvian, and Lithuanian soldiers de­ pendence of all captive peoples. has been a great show in indignation by the feated the invading Russian Communist This year's Captive Nations Week is of liberals of the country against the "guilt armies and the Soviet Union signed non­ special significance as Communist onslaughts by association" tactics of ,current investiga­ aggression treaties with the Baltic States. on the free world's outposts, dramatized by tions into the Communist conspiracy. The The 22 years of independence which fol­ the war in Vietnam, continue to cause grave Communists are encouraging opposition in lowed saw a great surge forward in all spheres concern to all freedom-loving peoples the United States toward strong policies of life in the Baltic countries. They were throughout the world. Today, our country against Communist aggression in Vietnam prosperous countries and factors of peace is in the thick of another war whose issues and the Dominican Republican. and stability in Europe. The Baltic States will determine the fate of freedom in Asia. I am asked at various public meetings as gained diplomatic recognition, were admit­ History is repeating itself and once more our to what we here in America can do to help ted to the League of Nations and the Foreign young men, thousands of miles from their preserve the freedom of our people. We can Minister of Latvia had the honor of being homeland, are fighting and dying so that for do several things: elected the President of the governing body millions under Far East skies the bell of free­ 1. We can teach more American history of this international peace organization. dom may ring again. But even if we spring in our American schools. How do we expect This did not suit the plans of Stalin and to the aid of brave peoples whose freedom to have our younger generation respect Hitler, however. In 1939 their Soviet Social­ is in jeopardy, it is the height of shameful America if they know nothing about her? ist and National Socialist governments, re­ inconsistency to disregard the pitiful plight 2. Dismiss all teachers in all schools who spectively, concluded the so-called nonaggres­ of once free people. It is a falsely pious are Communist sympathizers. sion pact, according to which they secretly policy to advocate that it is now necessary, 3. Anyone who obtained his American cit­ agreed that Estonia, Latvia, Lithuania, east­ in the interests of world peace, to accept izenship by deceit, by swearing to uphold the ern Poland and Bessarabia in Rumania be­ the "status quo," including the permanent American form of government and now wants long to the Russian sphere of influence. At captivity of once proud people. Have we not to overthrow it, should have citizenship the time when the Russian Communist learned a lesson from the futile "peace in our papers revoked and be shipped back to the armies were invading Finland and jointly time" of Chamberlain when he faced the country of his origin, or to any country he with National Socialist forces of Germany d~mands of Hitler with an umbrella and no considers a better place than the good old were dividing Poland, the Russians were also sword? We have followed the Chamberlain United States of America. exerting an ever-increasing pressure and pattern when we did nothing to help in the 4. Union men should do everything pos­ threats toward the Baltic countries. Finally, fight for freedom during the Cuban, Polish, sible to throw the "Commies" out of office the opportune time for attack arrived in June and Hungarian uprisings. I believe we have and of their unions. They are creators of 1940 after France had collapsed under the now reached the end of the line and the chaos in the labor world. They owe no alle­ German attack'. Stalin gave his 300,000 men battle for freedom all over the world is on. giance to labor; only allegiance to the Com­ big armies and mechanized forces, which We have two tasks before all of us who munist conspiracy. were concentrated on our borders, the order want to see the eventual freedom of the 5. Let us place upon the Communists and to invade the Baltic States. Military occu­ captive nations. One is to strengthen popu­ Communist sympathizers the "X-ray of pation, jailing of our governments and sub­ lar support for the Government's policy in truth" in every walk of life. sequent annexation and incorporation by Vietnam and the Dominican Republic. The devious means into the Soviet Union fol­ second is to encourage day-by-day demands A SPEECH MADE BY THE REPRESENTATIVE OF lowed in quick succession. for more freedom for the captive peoples THE AMERICAN LATVIAN AsSOCIATION, PITTS­ Then came terror, torture, executions, and within the Communist empire. The freedom BURGH CHAPTER, DR. I. J. SPILNERS, OVER deportations to the slave labor camps in aspions alone cratic and imperialistic czars and no1V are others, mostly ·Russians. There are constant' are not enough. We need other things. ; We ruled by communistic and imperlaUstlc dlc- threats and' pressure on the young Baltic 22900 CONGRESSIONAL RECORD- HOUSE September 3, 1965 people to go to work in far-removed regions ple," a term conceived by extremist national­ ADJOURNMENT of the Soviet Union. Thus, the world is wit­ ists who favor russiflcation and destruction nessing one of the most flagrant cases of of all other nationalities. There are many Mr. BOGGS. Mr. Speaker, I move physical and cultural genocide, perpetrated peoples living in the Soviet Union, but there that the House do now adjourn. on the Baltic people by the rulers of the are no "Soviet people." The motion was agreed to; accordingly communistic Russian Empire. It is also Above all, let us try to maintain our per­ , the most flagrant case of colonialism, in­ sonal contacrts with the captive peoples so under its previous order, the House ad­ stituted, and exercised in an age when every that they know that their own kin in the free journed until Tuesday, September '1, year the addition of new independent na­ world have not forgotten them and are active tions to the United Nations is celebrated as on their behalf, so that they know what op­ 1965, at 12 o'clock noon. realization of the prized principle of self· portunities for mind and welfare a free so­ determination. ciety and their own freely elected government What can be done to correct it? Impor­ would offer. MOTION TO DISCHARGE tant allies of the Baltic people are those If we succeed in reaching the minds of the COMMITTEE nations which do not recognize annexation captive people, especially the young people, of the three Baltic Republics by the Soviet with these ideas, the dissolution of the com­ AUGUST 24, 1965. Union. Here, I would single out the United munistic Russian empire will follow soon. To the CLERK OF THE HOUSE OF REPRE­ States who have refused to recognize the a.D.­ SENTATIVES: nexation of the Baltic States for the past 2·5 Pursuant to clause 4 of rule XXVll, I, years. Our Government continues its full SPECIAL ORDER GRANTED ABRAHAM J. MULTER, move to discharge recognition of the diplomatic representa/tives . By unanimous consent, permission to in Washington of the once free BaLtic Repub­ the Committee on Rules from the con­ lics, according them all rights and privileges address the House, following the legisla­ sideration of the resolution (H. Res. 515) which are due diplomatic missions represent­ tive program and any special orders entitled "A resolution· providing for the ing sovereign countries. heretofore entered, was granted to Mr. consideration of the bill H.R. 4644 to On June 14 of this year, both the House FEIGHAN, for 10 minutes, today; and to provide an elected Mayor, City Councll, of Representatives and the Senate of the revise and extend his remarks and to in­ and nonvoting Delegate to the House of u:.s. Congress dedicated their sessions to clude extraneous matter. Representatives for the District of Co­ commemorating the loss of independence by lumbia, and for other purposes," which the Baltic nations 25 years ago. was referred to said committee August On June 21, this year, in an unprecedented EXTENSIOt-l OF REMARKS move, the House of Representatives passed a 11, 1965, in support of which motion the resolution by 298 yeas and no nays urging By unanimous consent, permission to · undersigned Members of the House of the President of the United States " (a) to extend remarks in the CONGRESSIONAL Representatives affix their signatures, direct the attention of world opinion at the RECORD, or to revise and extend remarks to wit: United Nations and at other appropriate in­ was granted to: 1. Abraham J. Multer. ternational forums and by such means as he (The following Member

EXTENSIONS OF REMARKS Washington Report funds going to be spent on legitimate proj­ Here are some !.acts on spending during ects which will bring lasting benefits to our the laat 4 years of Democrat administration: people? How much of the money is going 1961, spend1ng $99.5 btllion or $2.3 blllion EXTENSION OF REMARKS to States which do not have critical prob­ more than was received; 1962, spending OF lems?" $107.7 ·billion or $5.8 billion more than was To find answers to these questions I intend received; 1963, spending $113.8 bllllon or HON. JAMES D. MARTIN to thoroughly study the bill, take part in its $4.1 btllion more than was received; 1964, OF ALABAMA consideration before my committee where I $120.3 billion or $4.8 blllion more than was will have an opportunity to question its received. The outlook for fiscal 1965 1s for IN THE HOUSE OF REPRESENTATIVES sponsors and those who will administer it. spending $121.3 b1llion or $4 blllion more Friday, September 3, 1965 Only after such thorough consideration wlll than will be taken in, and the forecast for I make up my mind on how I wlll vote. 1966 is spending amounting to $127.4 bil­ Mr. MARTIN of Alabama. Mr. Speak­ Of one thing you may be sure, I wm not lion with an additional $4 billion deficit. er, under permission to extend my re­ use the pover.ty of some of our people for Yet we a.re being told this is a frugal admin­ marks in the RECORD I include my re­ political purposes. I will vote my honest istration. port to my constituents of February 11, convictions in what I believe to be the best I am happy to report that my wife, P·at, is interest of the people I represent. I shall enjoying an active part in the potillcal life 1965: of Washington. She was elected as treas­ PuBLic WORKS CoMMITTEE CoNSIDERs repor.t my vote and the reasons for Lt to you so that the people will be the final urer of th~ 89th Oongress Club, an organi­ APPALACHIA BILL judges of my action. zation of the wives of Members who were (Washington Report From Congressman newly elected in November. ALABAMA DEFENDED JIM MARTIN) The Committee on Public Works, of which I was proud to be a member of tne Ala­ l: am member, is considering the Appalachia bama delegation in the HoU.se last Thurs­ bill at the present time. This is one of those day when we presented a united front in Survivorship Benefits for Servicemen-11 pieces of legislation upon which a Member defense of the people of Selma and other of Congress must search the deepest recesses communities in our State. For days we had of his conscience to find the answer as to been reading distorted stories of happenings EXTENSION OF REMARKS how he should vote. One thing 1s certain, in Selma. We were able to put into the OF when a bill comes before the House a Mem­ RECORD facts which the people in other sec­ ber must vote either "Yes" or "No." It is tions of the Nation had not had the chance HON. OLIN E. TEAGUE not possible to say, "Yes, but • • • ." There to read. We showed that the people of Selma were making a conscientious effort to obey OF TEXAS is no argument with the objectives of the Ap­ IN THE HOUSE OF REPRESENTATIVES palachia bill. All of us are concerned with the law and that racial tensions and hrutreds were being stirred up by imported a.gl.tators Friday, September 3, 1965 the poverty of some of our people. I am whose main purpose is continuing racial deeply aware that there are those in the 7th District who. are victims of poverty through tens1ons re.ther than helping to find proper · ·Mr. TEAGUE of Texas. Mr. Speaker, no fault of their own. We should and must solutions to trying problems. following my earlier remarks on survivor­ find a way to help them. BRIEFS OF THE WEEK ship benefits, I include as a part of my The problem arises in considering what A startling exposure of Soviet piracy was remarks a table showing the benefits the present proposal wlll do. Congress is be­ made this week by Prof. John Isaacs, direc­ available to a private first class who suf­ ing asked to vote billions of dollars of your tor of the Scripps marine life research pro­ fers a service-connected death and who money to help better the economic condi­ gram. He disclosed that a Navy radar picket leaves a widow and one child: tion of a part of our country. Some of this ship chased a Russian fishing trawler away money will be spent in our area, in the coun­ from an anchored buoy 150 miles off the SURVIVORSHIP BENEFITS FOR SERVICEMEN DYING ties of the 7th District. Here are some of coast of San Diego. The Russians had FROM SERVICE-CONNECTED CAUSES the questions in connection with the bill de­ stripped the buoy of instruments. This was ASSUMPTIONS manding an answer: not the first case of such piracy. The Rus­ Private first class, U.S. · Army; age 20 at "How much of· the total money will be sians know we are ahead of them in leazon­ death, death was service-connected, 2 years spent in Alabama? Will the funds be used ing the secrets of the sea, and;a shortcut to service at death, 2 ·years in grade at death, to help those 1n need or will they be used catching up is to frisk our researdh . buoys assumed average monthly pay was $160, base instead as a political slush fund? Are the and s•teal our equipment. pay at death was $148.50 a month; left September ,3, 1965 CONGRESSIONAL RECORD- SENATE 22903

widow, ag~ 20, and a child, age 1; widow child receives maximum number of payments, they feel about this bill before it is taken up lives out her expectation of life (55.6 years), widow does not remarry. again next year. Among those leading the fight against repeal is Senator DIRKSEN. Benefits .. Payee Paying Type of payment Payment period Payment Total agency rate payments Washington Report

t. Widow ------HEW_____ Social security __ _--- -- 204 months t ______$60. 30 $12,301.20 Child ______.do ______. do ______252 months 2 ______• 60.30 15,195.60 EXTENSION OF REMARKS Widow------VA. ______Social security (38 163 months a______66.30 10, 806.90 OF U.S.C. 412(a)). Do . • ------.do____ _ DIC __ ------667 months______138.00 92,046.00 Ohlld ______.do_ ____ WOEA. _------36 months ______110.00 3, 960.00 HON. JAMES D. MARTIN OF ALABAMA TotaL ______------134, 309.70 ,. IN THE HOUSE OF REPRESENTATIVES

t Until child reaches age 18. Friday, September 3, 1965 2 204 months to age 18 plus 48 months in full-time training. a Beginning at age 62. Mr. MARTIN of Alabama. . Mr. Speaker, under permission to extend my remarks in the RECORD I include my re­ Washington Report lions in idleness or to improve the economic condition for those who do not care enough port to the people of the Seventh District to try to help themselves, just to perfect the of Alabama for February 18, 1965: EXTENSION OF REMARKS Johnson political machine. WASHINGTON REPORT-SELMA DEFENDED BY OF MORE ON RENT SUBSIDIES CONGRESSMAN JIM ¥ARTIN HON. JAMES D. MARTIN For the further enlightenment of the TWo of my Republican colleagues from junior Senator from Alabama and those edi­ Alabama, JOHN BUCHANAN and GLENN AN­ OF ALABAMA torial writers who are still insisting that his DREWS, joined me last week in taking the IN 'l'HE HOUSE OF REPRESENTATIVES House :floor to give the facts on the situation housing bill with its rent subsidy provision in Selma. The day before the liberal Demo­ Friday, September 3, 1965 cannot be used to force integrated neighbor­ crats who had gone to Selma spent several hoods, I call attention to several items from hours painting a sordid picture of Selma and Mr. MARTIN of Alabama. Mr. Speak­ the September 6 issue of U.S. News & World castigating the law enforcement officers er, under permission to extend my re­ Report: there. In our presentation we Alabamians marks in the RECORD, I include my Wash­ "NEWSGRAM, TOMORROW .-Qhange is occur­ pointed out that the rights of all people ington Report to my constituents for ring in goals of this country's Negro 'revolu­ may be secured only through the process of tion.' Equal rights no longer are the goal. law and order. Violence in the streets, de­ September 6,1965: Rights are guaranteed by law. Equal oppor­ POLITICS AND POVERTY fiance of duly constituted law enforcement tunity is outmoded, too. It's recognized in officers and mob rule results only in anarchy (Washington Report from Congressman JIM law. Equal results now are the goal the Gov­ and threatens freedom for all the people of a MARTIN) · ernment itself is outlining. It's not quite community and the Nation. clear what 'equal results' will involve. Rent One of the hit songs of the ~usical show It would be interesting to see how tolerant subsidy to help Negroes move from slums to of some years back, "Fiorello," was "Politics many of the northern liberals would be if and Poker." Today under Lyndon Johnson, suburbs is one phase of the new program to their communities were subjected to the mob the theme song of his administration is fast get results. Income 'supplements' to bring rule such as Selma has experienced. I won­ becoming "Politics and Poverty." Nothing all incomes up to $3,000 is another. More are der how forgiving they would be if their is being overlooked by the President in using being thought up. In the new goal is at courts were disrupted, their business ground every facet of Government to sew up even least the suggestion of similarity to the dic­ to a standstill, their young people drawn a single vote. Poverty is the key word to tum of Karl Marx: 'From each according to from their classes by some promise of utopia initiate Federal programs, control schools, his ab111ties, to each according to his needs.' or some threat of impending doom. Of supervise business and industry, reduce the Costs to reach the new goal can be very course, the liberals wm not answer these power of the pollee and local law enforce­ high.'' questions. Too many of them do not want a ment agencies, and constantly build a larger WASHINGTON WHISPERS reasonable discussion of social problems. and larger image of L.B.J. as the sole power Some liberal Democrats in Congress are pic­ They are more concerned with votes than to deal with and solve all human problems. tured as showing some alarm about the po­ they are with the welfare of individuals. Many Members of Congress are becoming litical reaction that may come from use of COMMITTEE APPROVES APPALACHIA BILL very much concerned with the handling of rent subsidies to move Negro families from the poverty program which is being openly city slums into better-class suburban neigh­ My Committee on Public Works approved and arrogantly used by the Democrats to borhoods. In Washington, D.C., a proposal the Appalachia b111 after a long and heated strengthen their political machines and to is being advanced which calls for some 6,000 meeting. While the objectives of this legis­ control future elections. Whether enough poverty-stricken Negro families to be moved lation are laudable, the bill is poorly written Congressmen will be sufficiently concerned from the city to the Capital's suburbs in and in m any cases, discriminatory. Every Maryland and Virginia. attempt by the Republicans on the commit­ to reassert the legislative powers of Congress tee to improve the b111 was beaten down by remains to be seen. DANGER FACING BIG CITIES the Democrat majority. It is evident the HOME RULE BILL A TEST (From an article) liberal m ajority is going to ~s whatever Some of this concern m ay have been the "The idea of subsidized incomes has been legislation demanded by t he administration reason t he President h as had such difficulty suggested with Federal payments to families without change and regardless of t h e cost to in securing the needed 218 signatures to the with incomes below a fixed level. Rent sub­ the people. discharge petition for home rule for the Dis­ sidies, authorized by a new Federal Housing In order to correct at least part of the trict of Columbia. Even though L.B.J. and Act, are seen as one way t o help break up inequit y of the b111, I tried to have Lamar Martin Luther King injected the idea of riots Negro ghett os and scatter Negroes through County included in the bill. I came within and violence in Washington if Congress white neighborhoods. In Washington, D.C., one vote of succeeding, even some of my failed to meet their demands on home rule, officials are seeking to move 6,000 Negro Democrat colleagues giving me support. An­ some Congressmen were reluctant to sign families to t he suburbs through this plan.'' other attempt wm be made to include Lamar when the bill is before the House. If the Ap­ under that kind of threat. Responsible Con­ REPORT ON REPEAL OF SECTION 14 (b) gressmen, who take seriously their obligation p alachia bill is really supposed to help poorer to represent the people, resent pressure by The fight to keep section 14(b) of the areas, Lamar is far more entitled to be in­ the President or self-styled leaders of mi­ Taft-Hartley Act which protects the rights of cluded than many sections named in the nority groups. Passing legislation under the States to h ave or not to have right­ measure. threat of violence and demonstrations is con­ to-work laws is not over. Although the lib­ BRIEFS OF THE WEEK trary to the American way, and most Con­ erals passed the bill in the House, the Senate is stiffening opposition against repeal. At A move to correct some of the abuses which gressmen put honor, love of country and re­ have developed in the financing of the Rural sponsibi11ty to the people above party poll­ the present time about 26 Senators have Electrification Adminlstra.tion, has been un­ tics. It is time the pioneer spirit is re­ agreed to take part in extended debate on dertaken by some Republican Members of vived among our people. The President repeal after all other Senate business has the House. Since its inception in the 1930's, should be informed, in no uncertain terms, been concluded. This could mean action to REA has cost the people of the United States that his use of poverty, race and other vote­ repeal right-to-work laws will not be taken in some $1.1 billion as the dtlference between getting gimmicks is not good politics. The this session and this will give the people the 2-percent .1Illterest ra,te the agency pays country simply cannot afford to support ·mn- more time to let their Sena,tors know how .. ' • ..,\ J to. borr_ow ~oney fr~m ~~e Gov~rn~ent an,~ 22904 CONGRESSIONAL RECORD- SENATE September 7, 1965 the 4.25-percent rate the Government has to newsletter to the people of the Seventh must be kept competitive and free to open.te pay to borrow the money it lends to REA. District of Alabama for February 25, without this stlfUng influence of Federal REA has gone far beyond its original purpose 1965: doininatlon. If we will do these things, then, of bringing electricity to isolated rural areas. and only then, will we be able to achieve a It is now a giant subsidized monopoly which WASHINGTON REPORT--FisCAL RESPONSmiLITT great society that is something more tba.n threatens the operation of private power A MUST Now political hokum. companies. Legislation introduced would (By Congressman JIM MARTIN) BRIEFS OJ' THE WEEK make interest rates to REA more realistic. As many people contemplate the expected Befcxre the President tries to discourage The value of the dollar is now down to 44.8 rewards in the dreams created by the glow­ travel abroad by American citizens by impos­ cents in spite of the fact the adminlstration ing proinises of the Great Society, too many ing a $100 tax in occler to ease the drain on insists there is no infiation. There has been overlook the growing crisis which threatens our gold supply, perhaps he should look into a steady decline since the advent of the New the whole structure of our economy. Reck- the millions we are making in illegal pay­ Frontier and the Great Society. The dollar . less Federal spending and totally irrespon­ ments abroad. About $200 Inillion a year 1s was worth 46.9 cents in 1960, 46.4 in 1961, sible fiscal policies are constantly reducing flowing abroad to veterans and beneficiaries 45.9 in 1962, 45.4 in 1963, and 44.8 in 1964. the value of the dollar, causing a continued of social security who are not citizens of the Evidently the Great Society will be achieved drain on our gold supply, and could result in United States. Some $75 million worth of when the dollar is worth nothing and all of chaos. VA checks go to foreign countries. About the people are poverty stricken. I am not trying to be an alarinist, but I did 150,000 beneficiaries of social security pay­ What are our young people being taught att mpt to arouse interest in a return to ments live abroad, of which 60 percent are in high school and college? National surveys fiscal sanity in remarks I put into the not U.S. citizens. We are paying social secu­ of high school and college juniors reveal: CONGRESSIONAL RECORD. In the 4 years Since rity to 3,096 noncitizens in West Germany, 71 percent would deny an accused person the the inauguration of a Democrat adininistra­ 7,094 noncitizens in Greece, 1,19'1 noncitizens right to confront his accuser, 40 percent be­ tion we have traversed the "New Frontier'' in Ireland, 215 noncitizens in Israel, 20,093 lieved certain groups should be denied the and embarked upon the "Great Society"-a noncitizens in Italy, 3,695 noncitizens in right of peaceful assembly, 41 percent be­ promisory golden age of Pericles-with deficit Japan, and 314 in the Netherlands. We are lieved that we should cancel freedom of the spending, mounting debt, dwindling gold and even sending payments behind the Iron Cur­ press, 34 percent favored denying free speech persistent unemployment marking every tain to Yugoslavia. In addition people a.re to certain people, 26 percent would allow step of the way. Central authoritarian gov­ receiving U.S. payments who live in Austria, search and seizure without consent, 53 per­ ernment has made sure that Federal con­ Bolivia, Brazil, Ohile, the Congo, Costa Rica, cent voted for Government ownership of tainination has insidiously or ruthlessly in­ Ecuador, the Ivory Coast, Luxembourg, Mon­ banks, railroads, and steel companies; 56 truded into our State and local governments, aco, Panama, the Phillppines, '.I'W'key, the percent voted for close Government regula­ our businesses, our homes, our daily lives. United Kingdom, and Upper Volta. tion of all business, 62 percent said that the We have tried to spend ourselves rich, smart By a vote of 288 to 92 the House passed Government has the responsibiUty to provide and secure, but all we have really done is H.R. 45 to authorize the United States to jobs, 62 percent thought a worker should not underinine our basic structure of govern­ participate in an increase -in the resources of produce all he can, 61 percent rejected the ment, weaken our free enterprise system and the Fund for Special Operation of the Inter­ profit incentive as necessary to the survival impair our citizenship vis-a-vis the Federal national American Development Bank. The of a free enterprise system, 84 percent denied bureaucracy. bill carried an authorization of $750 mtlllon. that patriotism is vital and plays an impor­ Since January 1961 the Federal spending I voted against the measure because lt was tant part in our lives. These surveys were level has increased by 25 percent from $80 to brought out in debate it will further jeopa.rc:l­ conducted by Northwestern University, Pur­ $100 billion;. we have sizable deficits in each ize our balance of payments problem. due University, and U.S. News & World Re­ intervening year---our last balanced budget The House voted 302 to 63 to extend the port. The results emphasize the real educa­ was in 1960; we have added $30 blllion to the life of the Disarmament Control Agency for tional challenge we face in America. public debt ~ we have had a deficit every year 3 years with appropriations of $40 m1111on. in our balance-of-payments position; our I voted against the extension. At a time gold supply has been reduced to its lowest when our enemies are arming to the teeth, level in decades. We are cutting our defense American boys are dying in Vietnam and our Washington Report spending in the face of an alarining deteri­ world position is deteriorating, it borders on oration in world political conditions while stupidity to spend Inill1ons of dollars on dis­ we spend more for so-called welfare purposes. armament programs. We can do much bet­ EXTENSION OF REMARKS Now is the time for perceptive, forthright ter by enunciating a strong foreign policy OF action to put our fiscal house in mder. It is which will convince the Communists they foolhardy and irresponsdble to think that cannot achieve their goal of world domina­ HON. JAMES D. MARTIN this impending crisis will disappear if we ig­ tion. When we convince them that we are OF ALABAMA nore it; it wlll be rutnous if we think that not weak and will do whatever is necessary we can sweep it under the rug and go on our to protect our Nation and the free world, that IN THE HOUSE OF REPRESENTATIVES merry spending way. We must immediately wlll be the time to talk about disarmament. Friday, September 3, 1965 adopt d!lsciplined monetary policies that Those interested in obtaining reprints clearly demonstrate our firm resolve to pro­ from the CONGRESSIONAL RECORD of my speech Mr. MARTIN of Alabama. Mr. tect the purchasing power of the doll&'. Our in the House of Representatives on Selma, Speaker, under permission to extend my flscaJl. policies must again reflect a determina­ please write me at 1515 Longworth Building, remarks in the RECORD I include my tion to live within our means. Our economy Washington, D.C.

We pray that Thou wilt lead our lead­ September 2, 1965, and Friday, Septem­ SENATE ers, and teach our· teachers, and ber 3, 1965, was dispensed with. strengthen our people, for all the trying TUESDAY, SEPTEMBER 7, 1965 tests that are upon us. Make strong The Senate met at 12 o'clock meridian, the arm of our might-material and MESSAGE FROM THE HOUSE and was called to order by the President moral-to beat down, even at staggering costs, the cruel iniquity that today tor­ A message from the House of Repre­ pro tempore. sentatives, by Mr. Hackney, one of its The Chaplain, Rev. Frederick Brown tures those who ask for but freedom, and which twists truth by crooked sophist­ reading clerks, announced that the House Harris, D.D., offered the following had passed the bill