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Home , Beryl Sprinkel, Bob Shamansky, George Crile III, James Bovard

25626 EXTENSIONS OF REMARKS October 27, 1981 EXTENSION OF REMARKS HOW FAST WILL GAS PRICES ing climate which has been ignored by many In another politically self-serving judg­ RISE UNDER DECONTROL? studies of this issue. Price increases will ment, Energy Action assumes a jump in take place, but rising prices for natural gas price from $1.80 mcf to $7 .00 per mcf with are likely to have the same impact on gas decontrol, but no increased conservation as HON. WILLIAM E. DANNEMEYER markets that higher oil prices have had on the price rises. Energy Action may believe OF CALIFORNIA oil markets. Higher prices will engender that the use of higher prices to induce con­ IN THE HOUSE OF REPRESENTATIVES conservation, which will force distributors servation is wrong in principle, but it should to drive hard bargains with producers. not ignore that this approach works. Final­ Tuesday, October 27, 1981 And: ly, there is no recognition by opponents of e Mr. DANNEMEYER. Mr. Speaker, Although gas prices will certainly rise decontrol like Energy Action and AGA that the decontrol of natural gas prices with decontrol and even under present law, what is working now in the market for oil through the repeal or reform of the there is good reason to believe that they will will work for gas too, and probably better Natural Gas Policy Act of 1978 rise fail'ly gradually, and in a way which will because there is no organization like OPEC CNGPA) continues to be the most im­ encourage reduced oil imports and a meas­ to put a floor under gas prices when con­ ured acceleration of conservation and alter­ sumer resistance starts to make them erode. portant energy issue facing the 97th native energy investments. Another reason for the oversimplified as­ Congress. It is, in fact, extremely re­ sumption that gas prices will immediately grettable that progress to date has Mr. Speaker, Mr. London's article brings home once more the need for jump to the level of oil is the inability of ex­ been marginal either in Congress or isting energy models to factor in all the bar­ within the policy circles of the admin­ immediate, total decontrol of natural gaining variables. They can not easily cap­ istration. Natural gas decontrol will gas prices as provided for by my bill, ture the intricate bargaining relationships bring order to domestic markets H.R. 2019, the Natural Gas Decontrol in energy markets, which have come into through increased incentives for pro­ Act of 1981. I insert the full text of play with oil recently, and which will also duction and conservation. the article at this point in the RECORD: come into play for gas once it is deregulat­ According to Prof. Glenn Loury of How FAST WILL GAs PRICES RISE UNDER ed. These modeling problems, however, the University of Michigan, decontrol DECONTROL? should not cause us to overlook the change have to decide whether to buy gas or stay equivalence and/or Most-Favored Nation with oil. marketers in the Northeast region of treatment

e This "bullet" symbol identifies statements or insertions which are not spoken by the Member on the floor. October 27, 1981 EXTENSIONS OF REMARKS 25627 HOW WILL THE ACTORS BEHAVE WHEN GAS IS WHAT ABOUT INDUSTRIAL AND OTHER NON­ sistance and conservation will force distribu­ DECONTROLLED? RESIDENTIAL CUSTOMERS? tors and pipelines to make offers to produc­ Producer Behavior: First, it is safe to Current industrial use of oil is about 8.1 ers which will allow the marketers to sell assume that in a decontrolled market gas quads/year or 4 million barrels a day. About the gas~ and producers will have to accept producers (freed of existing contract and half of this is for heat and half for raw ma­ these offers. This means a natural gas price regulatory restraints) will try to get the terial. This is enough potential demand for above the current price but not a price so gas to absorb increased supplies from any high as to create an unmanageable conser­ highest possible prices. The question is vation bulge of unmarketable gas. whether they can get oil equivalent prices source. But why are these oil users not immediately from pipelines, distribution using gas now when it is cheap and avail­ WHAT ABOUT DIFFERENCES AMONG able? What new incentive will they have to DISTRIBUTORS? companies, and ultimately from consumers. switch to gas after decontrol when its price Second, we can safely assume that produc­ is expected to rise? Decontrol will give some distributors and ers will increase production-by how much Clearly, conservation presents a bargain­ pipelines advantages they do not now have we do not know-to take advantage of de­ ing opportunity to distributors. If distribu­ under controls. For example, a distribution control. Under the Natural Gas Policy Act tors agree meekly with producers to pay company close to gas fields will be able to signed by President Carter in 1978, prices equal to those for oil, more conserva­ offer producers a higher price for gas can be expected to reinforce market develop the additional markets needed for forces in preventing gas prices from moving approach those for oil. would ap­ with conservation due to higher gas prices will shut-in gas and produce less, and that companies about the impact of higher prices proach 2 TCF a year (equivalent to 1 million paid to producers on consumption and barrels of oil per day), doubling to 4 TCF in distributors simply will pay the asking price of the producers. This is contrary to basic therefore on fixed pipeline charges. They another few years. Moreover, AGA esti­ will understand that if the local distribution mates on-shore gas supplies could increase economic theory. It assumes that producers who were willing to sell gas for an average company pays too much for gas it will find by .3 to .7 TCF/year. With no significant its system underutilized, and this will have price advantage over oil, however, where do of $1.61 per mcf at the wellhead in Decem­ ber 1980, will shut-in deregulated gas at a the effect of raising costs to customers who customers for this gas come from? higher price rather than accept something remain on the system. PUCs acting to pro­ This leads to the key issue. What would less than the price of oil from distributors tect consumers, therefore, will discourage distribution companies agree to pay for de­ for several years. This would be a possibility inept bargaining by distribution companies. controlled gas knowing from past experi­ if producers and royalty owners could If distribution companies and pipelines do ence that large price increases would lead to decide as a body to prorate production not recognize that they can and should substantial conservation? AGA assumes dis­ amo.ng themselves, each shutting in 20 per drive hard bargains in their dealings with tribution companies are powerless to bar­ cent for example, to prevent conservation producers, an unlikely blindspot, regulatory gain, a fairly good assumption if controls from forcing prices down. But even OPEC is authorities will. continue. With controls there always have unable to make such a cartel arrangement SELLERS OF ALTERNATIVE FUELS been additional residential customers wait­ work when supply is adequate. It will never There is recognition in some studies of de­ ing to buy gas and distributors always have work in the U.S. market where no company control that in some markets, particularly been willing to pay producers almost any produced more than 6.4 per cent of all gas the utility market, gas may have to com­ price because they average in high prices in 1980, and where U.S. oil and gas compa­ plete in price, not with oil, but with lower with still-controlled gas. This explains the nies clearly will prefer to sell U.S. gas which cost coal. It should be noted that in a dereg­ astronomic prices being paid for small they own rather than imported oil, which ulated market gas also will have to compete amounts of decontrolled gas under present they do not own. Moreover, U.S. law forbids in price with conservation investments, insu­ law. No real bargaining is taking place collusion to prorate production in any case. lation, hot water heat pumps, district heat­ under current conditions. But if distributors WILL NOT DISTRIBUTORS BE STUCK WITH ing and cogeneration, coal-mixes, wood pel­ have to charge consumers a delivered price UNMARKETABLE GAS? lets and biomass, solid waste, and perhaps near the price of oil after decontrol, few res­ AGA argues that with immediate decon­ other fuel alternatives. One Department of idential users will be tempted to convert to trol pipelines and distributors will be forced Energy study, for example, estimates that gas and consumption per existing gas house­ to pay producers the oil price because of 300 cogenerating district heating plants hold will drop rapidly. Distributors selling provisions in existing contracts, and then be using waste heat could back out up to 4 mil­ gas at the oil price to residential customers, stuck with gas they can not sell. This as­ lion barrels of imported oil a day, and create therefore, will at best hold on to existing sumes that provisions in existing contracts thousands of U.S. jobs. In many areas these residential customers forces. In spite of will take place, but rising prices for natural Mr. Abrams answered that the Reagan this, the people's spirit for self-deter­ gas are likely to have the same impact on administration would oppose the mination and the refusal to surrender gas markets that higher oil prices have had energy affiliate even if its creation their freedom has not died. on oil markets. Higher prices will engender does not require a new bureaucracy I join with of Czech and conservation, which will force distributors and does not require any additional Slovak descent in the 11th District of to drive hard price bargains with producers. U.S. funding of the World Bank. This Studies which ignore this likely scenario Pennsylvania, which I am privileged to simply overlook market reaction to price in­ came as quite a revelation to those of represent, in honoring and supporting creases. When they ignore conservation im­ us who have been following the the undying spirit and determination pacts they fly in the face of recent experi­ debate. of those in Czechoslovakia to become a ence. If they assume that conservation gas Mr. Speaker, there is much that I free and independent country.e will be marketed to current oil users even at can say about the error of this policy. a high price, they must suggest a reason for The point that I wish to make today, these current oil users to switch to gas and though, is that the administration is REMEMBERING OUR COL- concede that oil imports will drop drastical­ misleading the American people by LEAGUE EARLE CABELL­ ly when switching occurs. If they assume not truthfully debating the merits of FORMER CONGRESSMAN FROM that gas production will drop because THE FIFTH CONGRESSIONAL demand for gas will fall at higher prices, the energy affiliate proposal. they are assuming that higher prices will The administration has been telling DISTRICT, DALLAS, TEX. lead to falling gas production, another hard the public that it opposes this idea be­ case to make. cause, they say, it would create a new HON. J. J. PICKLE Although gas prices will certainly rise international bureaucracy and would OF with decontrol and even under present law, cost us money. Yet in last week's hear­ there is good reason to believe that they will ing it became clear that these points IN THE HOUSE OF REPRESENTATIVES rise fairly gradually, and in a way which will Tuesday, October 27, 1981 encourage reduced oil imports and a meas­ may not be true and that they are not ured acceleration of conservation and alter­ the real basis for our position anyway. •Mr. PICKLE. Mr. Speaker, the late native energy investments.e It is bad enough that this adminis­ Earle Cabell was a wise and good tration has chosen to pursue a solitary friend to many of us in the Congress. course in world affairs that is so clear­ October 27, 1906, was his birth date ENERGY AND THE WORLD BANK ly contrary to our national interests. and I would like to share with you a But to attempt to deceive the Ameri­ tribute given to him by A. C. Greene HON. BERKLEY BEDELL can public as to the facts of the matter on Dallas television channel 13 at the OF IOWA just compounds the error·• time of his death in 1975. This editori­ IN THE HOUSE OF REPRESENTATIVES al was originally brought to our atten­ Tuesday, October 27, 1981 COMMEMORATION OF CZECHO­ tion by another great friend of ours, e Mr. BEDELL. Mr. Speaker, last SLOVAK INDEPENDENCE DAY the late Tiger Teague. week DICK OTTINGER and I cochaired a In Tiger's introduction to the edito­ joint hearing on the U.S. posture HON. JAMES L. NELLIGAN rial he noted that Earle's coming to toward helping developing nations Congress restored dignity and respect OF PENNSYLVANIA to the Fifth District congressional seat meet their energy needs. Included IN THE HOUSE OF REPRESENTATIVES among others on the witness list were he served. Tiger also noted that Elliott Abrams, the Assistant Secre­ Tuesday, October 27, 1981 Dearie, his charming and devoted wife, tary of State for International Organi­ e Mr. NELLIGAN. Mr. Speaker, today was a great asset and assistant in his zations, and Robert S. McNamara, the marks the 63d anniversary of the efforts to represent his district. Earle former president of the World Bank. founding of the Czechoslovak Repub­ and Dearie made many friends in The Reagan administration stands lic on October 28, 1918. Under the Washington and came to mean much alone in the world in its opposition to leadership of Dr. Thomas Masaryk, personally to many of us. establishing an energy affiliate at the the National Council of Czechoslova­ Dearie is still active in her church World Bank to make loans to develop­ kia was recognized by France, Britain, and in Dallas civic and public affairs, ing nations that need financial help in and the as the legiti­ as all of us would expect her to be. solving their energy problems. One of mate representative of the new nation Though this tribute is for Earle, the the explanations offered by our Gov­ during the summer of 1918. Austria, two of them went through public life ernment is that we are opposing the which had dominated Czechoslovakia, hand in hand and Dearie shared as a creation of any new international collapsed on the night of October 27, partner in all of his accomplishments. structures. The State Department wit­ 1918, and independence was declared EDITORIAL BY A. C. GREENE, CHANNEL 13 nesses also cited the possible cost to by the National Council on October NEWSROOM, SEPTEMBER 24, 1975 the U.S. Treasury as a reason for re­ 28. Earle Cabell was Dallas to the core: but sisting the proposal. The Czechoslovak Declaration of In­ Dallas never understood him, even when Fortunately, Mr. McNamara was dependence, which established the pulling the lever on his behalf. He was a loner who did things because he felt like it, present to set the record straight. He First Republic, was signed by Thomas not to get votes-but he had something no stated that creation of the energy af­ Masaryk, who was the first President Dallas politician today has enough of: cha­ filiate at the World Bank would not of the Republic, in Independence Hall risma and conviction. If Cabell had started involve creation of any new organiza­ in Philadelphia. The Constitution of his political career a few years earlier and tion or bureaucracy, and probably the First Republic is also very close in had been a younger man, he might be seri­ would not necessitate the hiring of structure to our own Constitution. ously mentioned for national nomination any additional personnel. The affili­ The people's profound determination because he could have been of that level. ate, he explained, would merely be a for independence and freedom was fi­ Earle Cabell may be the last Dallas politi­ cian who got into politics from family obli­ paper creation. nally realized after two centuries of gation. he took it as his burden. His grand­ He stated further that the proposed struggle and three centuries under father, a Confederate general called 01 Tige energy affiliate need not neccessarily Austrian domination. Cabell, had become mayor of the frontier require any additional U.S. contribu­ But the hard-won freedom was short city almost before he got his bags unpacked tion to the World Bank. In fact, he lived as the Nazis and then the Com- when he moved here in the 70s. Earles October 27, 1981 EXTENSIONS OF REMARKS 25629 father Ben served eight years as county PERSONAL EXPLANATION feel that a strong social security sheriff, then in 1900 became the first Dallas system must be maintained in order to mayor to face such modern municipal prob­ HON. TOM CORCORAN protect the 36 million Americans who lems as paving streets, laying sidewalks, get­ presently receive social security, some ting a safe water supply, and franchising OF IN THE HOUSE OF REPRESENTATIVES as their sole source of income. The re­ the transit system, and gas and electrical spondents are very cautious of any service. Tuesday October 27, 19.81 changes affecting those presently re­ But once into politics, Earle Cabell saw things the others failed to grasp. Beaten by e Mr. CORCORAN. Mr. Speaker, due ceiving benefits or who might be re­ Uncle Bob Thornton the first time he ran to previous commitments in my dis­ ceiving benefits in the near future. For for mayor in 1959, Cabell made a surprising­ trict last Thursday, I was not able to instance, in a question asking whether ly strong race against this legendary name be present and voting on several the retirement age should be raised from financial history. And Cabell discerned amendments and final passage of the from 65 to 68, 75 percent of the re­ changes which were not, at that time, exact­ farm bill. Had I been present, I would spondents registered their opposition ly blowing in the wind. He sensed popular have voted in the following way on to the proposal, 21 percent were for it dissatisfaction with the ruling establish­ various issues of the day: and 4 percent were undecided. ment, and he became convinced the racial On the motion that the House re­ The second point brought out by barriers would fall-and fall quickly. solve itself into the Committee of the those who responded is that the Too old to march with them as a political Whole House on the State of the system must be preserved for future career-or too old, perhaps, to create the Union for the further consideration of generations of Americans. However, to inner zeal his perceptions called for-he H.R. 3603, the farm bill, "yea." insure this will occur, a clear majority nonetheless presided over the first steps On an amendment offered by Mr. said that social security must once Dallas took toward integration in the WALKER which sought to partially re­ again become strictly a "retirement schools and among businesses-and named store the purchase requirement to the program", the original intent of Presi­ the first Negro George Allen-to a city com­ food stamp program, "aye," (paired mission since Reconstruction. Cabell even dent Franklin D. Roosevelt when he risked his political reputation by pushing for). started the Federal Government's first hard, and unsuccessfully, for public housing On an amendment, as amended by a safety net program. A resounding 79 at a time when federal money in Dallas, for substitute-which I would have voted percent of the respondents agreed anything but business subsidies, had a taint for and was paired for-that excludes with the statement that nonretire­ to it worse than adultery. meat from importation that has been ment programs added to the social se­ Earle Cabell wasn't particularly enlight­ produced using chemicals or drugs curity system over the years should be ened in philosophy: and he was far from banned in the production of domestic taken out of social security and placed being liberal the way his delightful wife meat, and places imported meat under into other categories, 14 percent dis­ Dearie was. But he was fair-not just cau­ the same inspection criteria as domes­ agreed, 7 percent were undecided. This tiously in public-and he was brave in a tic meat, "aye," (paired for). is not to suggest that the respondents social way. And in Dallas, that's the bravest On an amendment offered by Mr. wanted to eliminate nonretirement kind of brave there is: to be something your COLEMAN which sought to limit au­ programs like supplementary security friends and social peers tell you you mustn't thorities in the bill to a 2-year period, income .• ity for disability benefits, had almost this disloyalty, and he bore to his death the equally strong support, with 77 per­ hurt from their response. REVISING SOCIAL SECURITY cent replying they favor tighter stand­ He was, perhaps, a politician before his ards, 19 percent against, and 4 percent time-or a politician who arrived at success undecided. Clearly, respondents are too late to take hold of what success seemed HON. CLEVE BENEDICT demanding a strong and effective willing to grant him. It is ironic that he took OF WEST VIRGINIA social security program-one that is on the two strongest conservative symbols IN THE HOUSE OF REPRESENTATIVES fiscally accountable and at the same in local politics-Thornton and Congress­ man Bruce Alger whom he annihilated-yet Tuesday, October 2 7, 1981 time serves the needs of the recipients. never gained the advantage this opposition e Mr. BENEDICT. Mr. Speaker, social In addition, respondents clearly indi­ should have given him: opponents contin­ security stirs more emotion, more con­ cated that they wanted to remove the ued to call him part of the oligarchy, while flicting opinion, and more controversy limit on outside earnings while collect­ others refused to acknowledge he was dif­ than perhaps any other issue of our ing social security and were also for in­ ferent from Alger. But he was, and those day. Congress seems to be fearful of cluding Federal employees to pay into who knew him and worked with him recog­ the political consequences of revising the Nation's largest safety net pro­ nized that with a few years and a few cir­ the system. The people meanwhile are gram, and exemption that is extreme­ cumstances, Earle Cabell almost certainly genuinely concerned and confused. ly unfair to the non-Federal worker would have been the first 21st century poli­ That is why I put together a question­ who must support those who do not tician of Texas. naire for my most recent newsletter contribute to the program. By the Once in Congress, Cabell seemed to find way, I recently cosponsored H.R. 3657 political life disappointing. Washington asking the opinions of the Second Dis­ trict residents of West Virginia. I am which would require Members of Con­ came too late. His dreams and restless gress to pay into the social security plans-two things that characterized Earle pleased to report that over 1,200 indi­ Cabell the businessman-had been carried viduals from the district have taken system. beyond his reach by time-if not the times. the time to give me their ideas and While a great deal of discussion and Time, and the ancient lesson our bodies remedies for keeping the vital social deliberation remains on this most im­ eventually teach all of us: the end is near­ security system solvent, and I would portant subject, one thing is certain: ing. Rest in peace.e like to share some of the results with The Congress and the American my colleagues. people have to look at new and innova­ As I reviewed the responses, two pre­ tive ways to begin to deal with this vailing messages came through loud problem and have the guts to imple­ and clear. The first is that the people ment creative and alternative systems 25630 EXTENSIONS OF REMARKS October 27, 1981 to save social security. At the same dent Reagan's tax rate cut for working It's a strange world. I would argue that time, we must insure that those who Americans. It would be wrong, eco­ the press is so used to covering liberals and have paid social security taxes and nomically and politically, for the GOP Democrats, who ran this country for fifty years, that they've accidentally made liber­ now rely upon those earned benefits to return to its orthodox ways. Surely als seem the real opposition to Reagan. In for their very survival as well as those we have learned by now that we fact the liberals have enough residual au­ now working, will continue to have a cannot balance the budget by allowing thority to man the cannons, but they're fill­ solvent retirement fund for their taxes on already overtaxed working ing them with non-liberal cannonballs. future security. I would like to thank Americans to rise. Having lost most of their credibility, the lib­ all those people who helped me by an­ A constituent of mine, Frank Gre­ erals and the Democrats have hitched them­ swering this questionnaire. Their gorsky of Douglasville, Ga., has writ­ selves to Wall Street's wagon, and their gen­ input has proved invaluable to me as I ten an article that reviews the political eral notoriety obscures the fact that they're deliberate with my fell ow colleagues history of U.S. economics since Dwight not in the driver's seat. Eisenhower. Regarding the notion The two competing views of the way the the future of the social security American economy works are not liberals v. system.e that ~ongress should delay or rescind Reagan. Instead the contest is between the tax rate cut, Gregorsky points out "supply-side economics" and traditional Re­ that: publican economics. The former, as de­ ROBERT V. DENNEY FEDERAL If we junk the tax cuts and go back to signed by the Reaganites, says: a balanced BUILDING AND COURTHOUSE chasing the will-of-the-wisp of a balanced budget is a goal but not the highest one. Its budget attained by a never-ending increase attainment is merely the reflection of poli­ HON. JAMES J. HOWARD in per capita tax burdens, we will have a cies that promote sound money, economic OF NEW JERSEY sharp recession-which will push us even growth, and rising employment. Aim for further from a balanced budget. these policies via money supply restraint, IN THE HOUSE OF REPRESENTATIVES I commend this article to my col­ spending and red tape cuts and the reduc­ Tuesday, October 27, 1981 leagues and hope they will support the tion of high marginal income tax rates, and e Mr. HOWARD. Mr. Speaker, today the balanced budget will follow. President on this issue. Traditional Republican economics says: I am introducing a bill on behalf of The article follows: Big budget deficits are only defensible in a the leadership of the House Commit­ REPUBLICAN ECONOMICS TIMES Two time of severe economic contraction. Other­ tee on Public Works and Transporta­

79-059 0-85-33 (Pt. 19) 25640 EXTENSIONS OF REMARKS October 27, 1981 it) way. But in this country we insist on in­ news from the wires of the United In a recent exercise, the ground power terpreting evidence that contradicts our as­ Press International and from other production personnel and equipment main­ sumptions about "our" side in a conflict services. tained 100 percent reliability to five loca­ abroad as only further evidence of the Mr. Speaker, I must admit that some tions in addition to two other collocated Air rightness of those assumptions. Thus, the Force and Marine Units. collapse of a beloved ally's armed forces and of the Southtown Economist columns One officer observing the record of the the defeat of his military struggle to save a have generated heated discussions in 263rd stated: "You cannot overlook its doomed political base will be viewed by the my own quarters. However, the paper safety record of personnel. In the past 15 friends of right-wing governments in this has never lost sight of its primary months, the unit has moved personnel and country as proof we didn't send them goal: To provide accurate and unbi­ equipment over 30,000 air miles and logged enough F-16s after all. The collapse will be ased news of interest to its readers. over 18,000 road miles without incident or seen as the indirect handiwork of those who It is fitting that the Economist accident. Receiving the award and honor of were questioning and impeding the arms Newspapers have received a great being the outstanding Air National Guard flow. number of awards and citations for Communications-Electronics Unit two out And what will happen then? When the of three years is unprecedented. A unit peerless general, prince or civilian strong­ community service, news coverage and cannot win the award back-to-back; other­ man gets chased out of his palace, or maybe photography over the years.e wise, the 263rd might have made it three strung up in it, and the forces of "light" out of three." take over and turn out to be vicious, repres­ 263D SQUADRON OF NORTH The presentation was made October 6, sive butchers themselves, what is to be said during the National Guard Association of by their erstwhile champions? Not that CAROLINA NAMED MOST OUT­ the United States Annual General Confer­ they turned out to be a rotten lot, but STANDING ence at Biloxi, Mississippi. Lieutenant Colo­ rather that our earlier support of their op­ nel Frederick R. Keith, Jr., commander of pressors made them that way. HON. W. G. (BILL) HEFNER the 263rd Communications Squadron, re­ We are not there yet in Central America. ceived the award from Major General John We are still at the point where one side is OF NORTH CAROLINA IN THE HOUSE OF REPRESENTATIVES Conaway, director of the Air National saying that the rightist soldiers need more Guard. Colonel Keith expressed pride for support, and the other is saying that those Tuesday, October 27, 1981 the accolades received by the unit from all Cuban-shipped, Russian-made arms don't four services. exist. Even at today's accelerated rates of e Mr. HEFNER. Mr. Speaker, the 263d Combat Communications Squad­ He said the esprit de corps and superior disaster, that gives us some time before the performance by all personnel are justly rec­ former are asking who "lost" Central Amer­ ron of the North Carolina Air Nation­ ognized by the squadron's receipt of the ica and the latter are loftily replying that it al Guard at Badin, N.C., has been outstanding Communications-Electronics is arrogant for us to have thought it was named the most outstanding commu­ trophy.e ours to "lose." nications-electronics unit in the How nice it would be if we could break the United States. The Badin unit ranked pattern before that happens this time.e first among the 278 units in the na­ DON KENDALL OF THE u.s tional competition which was held re­ CHAMBER URGES TAX CUT THE 75TH ANNIVERSARY OF cently in Biloxi, Miss. SPEEDUP THE SOUTHTOWN I would like to bring this outstand­ ECONOMIST NEWSPAPERS ing achievement to the attention of .HON. JACK F. KEMP my colleagues in the House of Repre­ OF NEW YORK HON. JOHN G. FARY sentatives. The following article was IN THE HOUSE OF REPRESENTATIVES printed in the October 16, 1981, edi­ OF ILLINOIS Tuesday, October 27, 1981 IN THE HOUSE OF REPRESENTATIVES tion of the Stanly News and Press: 263RD AGAIN BEST ANG UNIT IN U.S. • Mr. KEMP. Mr. Speaker, Donald Tuesday, October 27, 1981 The 263rd Combat Communications Kendall, the distinguished chairman of • Mr. FARY. Mr. Speaker, I want to Squadron, North Carolina Air National the U.S. Chamber of Commerce is take this opportunity to bring to the Guard, at Badin, has proven it was no acci­ urging that, rather than delaying or attention of my colleagues in the dent they won the Air National Guard Com­ reducing the Reagan cut in tax rates, House of Representatives the 75th an­ munications-Electronics trophy in 1979. Once again, the local Air Guard has been it should be accelerated. In a state­ niversary of the Chicago Southtown named the outstanding Communications­ ment on Wednesday, Kendall observed Economist Newspapers. This tabloid Electronics Unit in the nation for 1981. that this would be more prudent in has been serving the important South­ This award does not come easy as there terms of the budget, because a devel­ west Side of Chicago and the south­ are 278 ANG Units in the competition. oping recession would widen the defi­ west suburbs with more than 252,000 The criteria established for the outstand­ cit far more than a cut in tax rates. households and a population in excess ing Communications Unit includes the This is because the Government loses of 1 million. training accomplishments of each person in revenue and sees its entitlement Founded as the Englewood Econo­ the unit, annual average attendance at training assemblies, and the 15-day Air spending automatically rise whenever mist in the Englewood area of Chicago Force exercise each year. The reenlistment unemployment increases. in 1906, the Economist Publications rate and unit strength play an important I commend Mr. Kendall's advice to have grown in scope and circulation role. The 263rd maintains over 100 percent my colleagues as they deliberate on over the years, to a total of more than strength continuously. Federal economic policy and express 175,000. The Economist, in addition to The Air Force Communications Command my support for his sound advice. printing its own papers, also prints nu­ inspected the unit in February and rated it The article follows: merous other publications, including excellent, stating that unit personnel ex­ ceeded Air Force standards, reflecting out­ CHAMBER CHAIRMAN CALLS FOR the national edition of the New York standing knowledge in unit readiness and CONSIDERATION OF A SPEEDUP IN TAX CUTS Times, which is transmitted from New mission capability. Numerous laudatory re­ WASHINGTON, Oct. 21.-"Congress should York to the Economist plant by satel­ marks were included in the Inspector Gen­ consider speeding up the tax cut, not delay­ lite. eral's summary. Contributing factors to the ing it," Donald Kendall, chairman of the Publisher Bruce Sagan and his staff award was that the unit maintained an ex­ U.S. Chamber of Commerce commented have emphasized the community tremely high reliability rate throughout ex­ today, saying: social, political and economic aspects ercises in Turkey, Germany, and on the east "The third quarter decline in real GNP of their area, providing a strong voice coast of North Carolina. No major problems marks two consecutive quarters of negative were encountered in any of these joint mili­ economic growth, adding further confirma­ on behalf of worthwhile projects and tary exercises. Communication systems tion that the economy is confronted with programs. At the same time they have under their control were over 99 percent re­ the threat of a recession. With business ac­ provided their leaders with Chicago liable. tivity declining, the recent proposals to and area news gathered by a group of The unit maintains the highest possible delay the tax cut are misguided and wholly skilled reporters and full national combat communications readiness rating. inappropriate. Increasing taxes to balance October 27, 1981 EXTENSIONS OF REMARKS 25641 the budget in a recession hasn't worked in scheduled. These materials factually H.R. 4503-FEDERAL WATER POLLUTION the past and won't work now. compare the total amount of spending CONTROL ACT AMENDMENTS OF 1981 "Had Congress enacted the original authorized by these bills with the as­ This bill authorizes the appropriation of Reagan program, which proposed a 10 per­ sumptions for such spending that re­ $2.4 billion for the Environmental Protec­ cent income tax rate cut in July 1981 it is tion Agency's municipal wastewater treat­ unlikely that we would be in the present sit­ sulted from congressional approval of the first budget resolution for fiscal ment construction grants program for fiscal uation. Congress should now be seriously year 1982. The bill also contains numerous considering alternatives such as moving the year 1982 and the amounts actually in changes in the financing and use of funds full 10 percent tax cut to January 1, 1982, or appropriation bills, where appropriate. for the grants program. The CBO estimate spreading out the 1982 tax cut by giving 5 The committee intends to insert into of outlays resulting from fully funding this percent in January and 5 percent in July. "By moving the full 10 percent cut to Jan­ the CONGRESSIONAL RECORD these staff bill are $20 million in fiscal year 1982, $300 uary 1, 1982, the government would lose $17 analyses, and analyses of all other ap­ million in fiscal year 1983, $660 million in billion in revenue before counting the feed­ propriations, entitlement, or revenue fiscal year 1984, $620 million in fiscal year back from a healthier economy. Spreading bills as .they are scheduled for floor 1985 and $400 million in fiscal year 1986. out the 1982 reduction would cut this loss in action. We hope to provide these early H.R. 4603-TO PROVIDE FLEXIBILITY FOR half. In contrast, the Congressional Budget warnings to interested Members each FEDERAL FINANCIAL SUPERVISORY AGENCIES Office has estimated that each one percent week. I believe that it is essential for This bill is designed to improve the flexi­ increase in the unemployment rate will add the House to have information that bility of the Federal Deposit Insurance Cor­ $27 billion to the deficit. Thus, with either poration . the Federal Savings and change in the tax cut, the effect on the defi­ compares such bills to the budget reso­ Loan Insurance Corporations .. and cit could be smaller than that of a serious lution-achievement of the resolution other financial regulatory agencies to deal recession. Better still, the economy would be spending targets is not likely to occur with federally insured financial institutions growing and workers would be spared the unless the Members are clearly aware experiencing problems. The main changes pain of unemployment. of the budget impact of their votes. would be to allow the insurance agencies to "As a result of the earlier compromise, arrange mergers of problem institutions 1981 will be a year of rising tax burdens for SUMMARY OF AUTHORIZATIONS across State lines or mergers between insti­ the average American worker. The 1.25 per­ H.R. 4734-ITALIAN AMERICAN WAR VETERANS tutions insured separately by the FDIC and cent cut for all of 1981 is too small to offset This is a bill to recognize the organization FSLIC. The bill creates no direct spending; the bracket creep experienced by many. An but if it should be successful in enhancing individual with a taxable income of $20,000 known as the Italian American War Veter­ ans of the United States. The legislation the flexibility of and consequently reducing in 1980 will have to earn $22,000 this year the net costs of the Federal financial super­ just to keep pace with inflation. However, states the organization's purpose, member­ ship criteria, restrictions, responsibilities visory agencies, it could reduce net outlays even with the October cut, the income gain of these agencies. will leave this individual facing a marginal and provides tax exempt status to the cor­ tax rate of 27.65 percent compared to 24 poration. There is no cost associated with H.R. 2330-NUCLEAR REGULATORY COMMISSION percent last year. What's worse, this same this bill. CNRC) AUTHORIZATION individual also experienced an 8.5 percent H.R. 4 7 5 5-FORMER MEMBERS OF CONGRESS This is the bill that authorizes programs social security tax increase last January. So run by the Nuclear Regulatory Commission. much for excessive tax cutting. This bill recognizes the organization The text of H.R. 4255 will be introduced as "With this as background, it is clear that known as "Former Members of Congress." a substitute to H.R. 2330 for floor consider­ any delay or reduction in the 10 percent cut The organization is incorporated as a tax ation. H.R. 4255 includes compromises be­ scheduled for July 1982 will simply contrib­ exempt organization under the Nonprofit tween the House Interior and Energy and ute to a further increase in the personal Corporation Act of the District of Colum­ Commerce Committees which share juris­ income tax burden and make economic re­ bia. It is estimated that no significant cost diction over the NRC. The authorization covery that much more difficult to achieve. to the Government will result from enact­ level totals are within those sought by the "In fact, such an effort is counterproduc­ ment of this bill. administration for NRC appropriations. tive," Kendall added. "It will worsen the re­ H.R. 4766-U.S. SUBMARINE VETERANS OF H.R. 4437-ENERGY CONSERVATION DAYLIGHT cession and create more unemployment. WORLD WAR II This will reduce tax revenues and raise fed­ SAVING ACT eral outlays as incomes decline and the need This is a bill to recognize the organization The bill amends the Uniform Time Act so for social welfare spending increases. known as the United States Submarine Vet­ that daylight savings time is observed for 8 "Our economic research indicates that erans of World War II. The legislation months instead of 6 months-from the first since 1950, this country has experienced six states the organization's purpose, member­ Sunday in March to the last Sunday in Oc­ recessions. In four of them, the government ship criteria, restrictions, responsibilities tober. The Federal Communications would countered with a tax cut either during the and provides tax exempt status to the cor­ be authorized to adjust its hours for broad­ recession or immediately following. In these poration. There is no cost associated with casting stations. The Congressional Budget four cases, the ensuing expansion lasted for the bill. Office has estimated the cost of rulemaking an average of sixty months. In the two H.R. 4769-AMERICAN COUNCIL OF LEARNED and processing of requests for exemptions $70,000. where no tax cut actions were taken, the SOCIETIES to be However, this cost would be subsequent period of expansion averaged completely offset by decreasing utility costs only sixteen months. As this experience This bill would grant a Federal charter to to the Government. amply demonstrates, the time for cutting the American Council of Learned Societies, an organization which was established in H.R. 4814-STATE DEPARTMENT taxes is now."• AUTHORIZATIONS 1919 and is a federation of 43 professional and honorary associations with an aggre­ The House Foreign Affairs Committee is EARLY WARNING gate membership of 250,000 scholars. While seeking a rule which will allow House con­ the legislation would grant the Society a sideration of S. 1193, the Senate-passed Federal charter, the Society would be pro­ State Department Authorization Act for HON. LES ASPIN hibited from claiming congressional approv­ fiscal year 1982. e Mr. ASPIN. Mr. Speaker, today, at result of the enactment of this legislation. The rule would provide that S. 1193 could the request of the Budget Committee, be considered in the House and an amend­ I am inserting this week's early warn­ H.R. 3963-DRUG DEPENDENT FEDERAL ment by the House Foreign Affairs Commit­ ing package into the CONGRESSIONAL OFFENDERS tee would be in order. The Committee This bill amends the Contract Services for amendment would be H.R. 4814, which RECORD. This week the House of Rep­ Drug Dependent Federal Offenders Act of would authorize foreign aid spending levels resentatives is not scheduled to consid- 1978. It would extend the period for which at the levels requested by the President as . er any new spending bills. However, funds are authorized through 1985. Since of September 28. These levels would, of the early warning package does in­ funds are already authorized for fiscal year course, be below the level assumed in the clude brief summaries of the authori­ 1982, this bill would have no budgetary First Budget Resolution or set in the Omni­ zation-nonspending-bills that are impact in fiscal year 1982. bus Reconciliation Act of 1981. 25642 EXTENSIONS OF REMARKS October 27, 1981 According to the staff of the House For­ common sense that our deficit will be larger glected. We cannot forget or ignore the les­ eign Affairs Committee, there is substantial and our government will also have to sons learned from Sputnik in 1957, the year bipartisan support in the Committee and in borrow these funds that in a normal econo­ the University of Hartford was chartered. the House for the procedure which the my would be coming in. NEGLECTING EDUCATION COSTLY Committee plans to follow. Mr. Volcker, I realize that you are strong­ H.R. 3275-CIVIL RIGHTS COMMISSION ly convinced that your ideals will control in­ Obviously, inflation must be controlled. Clearly, there is a need to stretch national This bill amends the Civil Rights Act of flation. Why haven't they in two years? How long have you been in office? Do you dollars and to invest them prudently; t;:.t . 1957 to authorize appropriations for the neglect of education, particularly at the ele­ Civil Rights Commission. For fiscal year plan to remain? Am I not correct, in saying that you were appointed? Perhaps, you mentary and secondary levels, results in the 1982, $14 million would be authorized with ignorance of our people and that in turn outlays (including those previously obligat­ should be reminded of this. You were not elected to control our country as you are leads to inevitable expenditures for welfare ed) estimated at $14 million. The authoriza­ and prison systems and reformatories. tion is $2 million above the President's re­ doing. quest and the level assumed in the First What does a government deficit have to We are regularly told that we live in the Budget Resolution. The House-passed Com­ do with inflation? When government bor­ richest country in the world, and I'm tempt­ merce-State-Justice appropriation bill in­ rows, do they have to pay these high rates? ed to believe it if for no other reason than cludes $12,318,000 for the Commission.• Do these high rates cause our deficit to be the way we treat our pets. We spend about more when the government has to borrow $5.4 billion a year to acquire them and care to pay these high rates? Why can't you see for them and bury them. INTEREST RATE POLICIES that these policies themselves are inflation­ I've seen reports that a person who buys a ary? Perhaps, more inflationary than any $200 poodle or a parakeet is likely to spend other single item pertaining to our econ­ up to $4,000 before it's all over. HON. CARROLL HUBBARD, JR. omy. It's expensive to put food in the bowl, OF KENTUCKY Mr. Volcker, perhaps you should re-evalu­ food that might well go to people, and a IN THE HOUSE OF REPRESENTATIVES ate your policies. I am afraid that if you collar around the neck and shots and coats Tuesday, October 27, 1981 don't our economy will collapse. Where will and sweaters and dresses and sterling silver your pay check come from then? At present cuddle bones and gold glitter nail polish and e Mr. HUBBARD. Mr. Speaker, I con­ you do not have to worry because it is there pedigree papers and summer camp. tinue to receive hundreds of letters every Friday. Do you deserve it or shouldn't REVIEW PRIORITIES from auto dealers, realtors, home­ you suffer from your policies along with the rest of us?e I don't mean my remarks to be se,en as an builders, businessmen; farmers, and attack on pets. I'm not saying that the many others who, like millions of country is going to the dogs. What I'm call­ people across the Nation, are being AID TO EDUCATION ing for is an explanation of priorities. hurt by the current high interest I can't help but wonder how this land has rates. Mr. David Freeman, a constitu­ HON. ANTHONY TOBY MOFFETT $2 billion to spend on horse-care products ent of mine in Paducah, Ky., has sent and not enough to resolve the embarrassing­ me a copy of a letter that he wrote to OF CONNECTICUT ly low verbal and numerical literacy rate Federal Reserve Board Chairman Paul IN THE HOUSE OF REPRESENTATIVES which we see around us. Volcker asking Mr. Volcker for the Tuesday, October 2 7, 1981 Only a few years ago, the Department of reasons behind the Federal Reserve's Education reported that one of every five e Mr. MOFFETT. Mr. Speaker, I Americans was functionally illiterate. The high interest rate policies. I feel Mr. would like to bring the following state­ crisis of accomplishment in our classrooms Freeman's letter is one which should ment in support of Federal aid to edu­ is widely acknowledged. In the past few be shared with my colleagues and I cation to your attention. Mr. Stephen years, national commission after national wish to do so at this time. His letter Joel Trachtenberg, president of the commission has reported the problems of follows: University of Hartford in Connecticut, America's primary and secondary schools. DEAR MR. VOLCKER: Mr. Volcker, could you made this welcoming address to stu­ There may be disagreement concerning please answer some questions concerning dents coming to the campus for the the causes and solutions to our problems. your reasoning behind your high interest But to all who believe that education is cru­ rate policies? beginning of the 1981 academic year. cial to the survival and future of American Mr. Volcker, are you not aware that you Mr. Trachtenberg has made a number democracy, it's clear that the signal is are destroying the free enterprise system of of observations that merit the close s.o.s. our great country? Many small businessmen consideration of my colleagues on Standardized tests and college board are losing their businesses every day. Re­ both sides of the aisle. I hope that you scores show the decline in students' ability cently, I have had three once successful find the following remarks as insight­ to read, to write, and to figure. Employers business people contact me to sell their busi­ ful as I did. echo those conclusions and voice dismay. nesses. Today's high rates have left them CUT IN FEDERAL AID TO EDUCATION Is People of America believe that the high with enough money to pay their interest SHORTSIGHTED schools have been so downgraded that the but not themselves. They have less money term "high school graduate" now means as financed now than when you put your pow­

PARLIAMENTARY REFERENCE GUIDE TO THE CONGRESSIONAL BUDGET PROCESS (TITLE 111 OF PUBLIC LAW 93-344)

Report Passage Committee of conference

Title Proper vehicle Sent to Conference report agreed to by- Congress completes action House Senate House Senate Conference House' Senate

!...... First Required Concurrent H. Con. Res. (or) 30l(d) .2 •••••••• 30l(d) . 2 ••• ••.•• 10 hr+4 hr 50 hr+ 4 hr debate: 7-dab limit: 5 hr debate: 302~a) , 10 hr debate: 302(a), May 15 deadline: 301 (a) , Resolution on the Budget S. Con. Res. debate: 3 305(b), 305(c) .• 3 5(d). 305(a)(4), rue 305(c), 305(e). 302(a) , 303. (Sec. 301) (H. Rep!. 305(a) .4 XLIX. No.-1 . 1(a) ...... Permissib e Revision of First H. Con. Res. (or) 304 ...... 304 ...... 10 hr debate: 50 hr debate: 7 1 5 hr debate: 3021c), 10 hr debate: 302(c), 302(c) , [302(b)]. Required Concurrent S. Con. Res. 305(a) . 305(b), 305(c). ~~5 l~lt.: 304(a)(4), rue 305(c), 305(e) . Resolution on the Budget XLIX. (Sec. 304) (H. Rep!. No.-). 2...... Second Required Concurrent H. Con. Res. (or) 310(a) . • ...... 310(a) . • ...... 10 hr debate: 15 hr debate: 7-da~ limit: 5 hr debate: 302~c) , 10 hr debate: 302(c), Sept. 15 deadline: 302 W, Resolution on the Budget S. Con. Res. 305(a). 305(b), 305(c) . 3 5(d). 305(a)(4), rue 305(c), 305(e). 310(b), 310(1), 30 b); no (Sec. 310) (H. Rep!. XLIX. adj. until action is No.-1. completed. 2(a) ...... Permissib e Revision of H. Con. Res. (or) 304 ...... 304 ...... 10 hr debate: 50 hr debate: 7 1 5 hr. debate: 302(c) , 10 hr debate: 302(c), 302(c) , [302(b)]. Second Concurrent S. Con. Res. 305(a) . 305(b), 305(c) . ~05 l~l~: 305(a) (4), rule 305(c), 305(e). Resolution on the Budget XLIX. (Sec. 304) (H. Rep!. No.-).

RECONCILIATION PROCESS

2(b) ...... Reconciliation Bill or H. Con. Res. (or) 310(c) ...... 310(c) ...... 20 hr debate: ...... 10 hr debate: Sept. 25 deadline: 3101d), Resolution as Result of S. Con. Res. 310(e), [305(b)]. 310(a)[305(c)]. 310(f); no adj. unti action Directions in the Second is completed. Required Concurrent Resolution on the Budget [Sec. 310(c) (d) (e) {I)].

1 Rule XLIX of the House of Representatives provides that the vote by which the conference report on the concurrent resolution on the budget was agreed to in the House (or by which the concurrent resolution itself was adopted in the House, if there is no conference report) shall be deemed to have been a vote by the House in favor of a joint resolution establishing the amount of the statutory limit on the public debt at the appropriate level set forth in the concurrent resolution on the budget. This rule was added in the 96th Congress by Public Law 96-78 (approved September 29, 1979, 93 Stat. 589). •April 15 deadline. 3 Report available for 10 da~ . 4 The Full Employment and Balanced Growth Act of 1978 (Public Law 95-523, section 303(b)) amended this subsection by adding subparagraphs 305(a) (3) and (4), and making conforming changes, relating to debate and amendments on economic goals and policies during consideration of !he first concurrent resolution on the budget in the House (a similar addition was made in section 305) (b) (3) and (4) relating to Senate procedure) . •May be filed anytime.

How To UsE THIS CHART point the related sections of title III of the tions: The first and are ours as a people. overseas is growing. Statistics show 2>. The second mitted for the RECORD a report pre­ One slice of the pie will go to affluent inves­ "That line's too long, too," I told the pared by the Congressional Research tors who have never bothered to take ad­ cabbie for the fourth time. "Keep circling vantage of tax-exempt municipal bonds. until you come to a savings and loan with a Service outlining how all-savers certifi­ The rest will go to banks and savings-and­ cates actually provide very little tax shorter line." loans that will not have to pay market rates "That's up to you, Mac," the cabbie said. relief to the vast majority of American of interest to depositors. Just how much "But I can tell you I've been all over town taxpayers. I have also inserted into this indirect tax subsidy will amount to is this morning, and there aren't any shorter the RECORD an excellent column from not known. The Treasury puts the figure at lines. What the hell's going on anyway? Forbes which concluded that our trou­ $5.2 billion. But if sales of All Savers are There a run on the banks or something?" bled savings and loan associations and brisk-as now seems likely-the subsidy "Surely you know about the new All savings banks-which were supposed could be twice that. And if the thrifts per­ Savers certificates," I told him. "They've fi­ to be the institutions aided by the sale suade Congress to extend All Savers beyond nally gone on sale, and I'm not going to miss 1982, the loss of tax revenue would be even out on a good thing." of all-savers certificates-will actually larger. be unlikely to get even half of the This is not the first time an interest group "Can't say as I blame you," the cabbie said. "If I make enough driving you all over money which will be deposited in has masked a grab for Federal subsidies the place looking for short lines, maybe I'll these savings certificates. behind the cloak of high principle. But All invest a few thou myself," he chuckled. "Se­ As part of an ongoing effort to Savers is particularly galling at a time when riously, though, I have to tell you, the inform my colleagues about this all­ every revenue dollar is needed to finance whole thing makes no sense to me." savers fiasco, I am submitting for the social spending. Congress has, in effect, de­ prived the people who benefit from food "How can it not make sense to earn a RECORD at this time three editorials: stamps, free school lunches and Medicaid to couple thousand dollars tax free?" I de­ One from the New York Times, an­ ease the lot of the banking industry. manded. other from the Washington Post, and "That's not what I'm talking about," he a third by columnist William Raspber­ [From the Washington Post, Oct. 3, 1981] said. "The part that makes no sense to me is ry, printed in the Washington Post. what good it will do for the economy. That's ALL SAVERS FIASCO what it's supposed to be about, isn't it? How These three have joined the ever­ The so-called All Savers certificate seems, does it work anyway?" louder chorus of voices denouncing in its first two days on sale, to be a huge I explained it to him. The certificates, I this irresponsible raid on the Treas­ success. Customers stood anxiously in long told him, are one-year instruments that pay ury. lines to buy them, and at least one savings 70 percent of the yield on one-year Treasury The editorials follow: and loan association kept its offices open bills. until midnight Friday to handle the flow. [From the New York Times, Oct. 6, 1981] But it's useful to recall the price at which "So why don't I just drive you over to the ALL SAVERS-AND ALL PAYERS this triumph is being purchased, and at Treasury Department. That way you can "Join the great tax revolution .... Make whose expense. get the full 100 percent instead of only 70. us your tax savings headquarters in your Congress created the All Savers certifi­ And besides, there's no line at all over war against income tax." So urge the cham­ cates to bail out the savings and loan indus­ there." pions of free enterprise at one big savings try, much as it earlier bailed out the Chrys­ I explained that 70 percent was a good and loan association. "Ours is five ways ler Corporation. The difference is that in deal because I would have to pay taxes on better," exclaims a competitor, borrowing the Chrysler case, Congress used only guar­ the earnings from a T-bill, while the earn­ imagery from an old bread commercial. anteed loans. With the All Savers certifi­ ings on an All Savers certificate are tax free, What they are shouting about is All cate, the government is paying actual tax up to $2,000 for a married couple. Savers, the tax-free savings certificates Con­ subsidies to upper-bracket taxpayers-it "That's enough to offset the 30 percent gress created at the behest of a "thrift" in­ benefits only people in a 30 percent bracket differential?" he asked incredulously. dustry trapped between low earnings on old or higher-on the condition that they pass "It is if you're earning 30 thou or more a loans and the high cost of attracting new some of that subsidy on to an S&L associa­ year," I told him. deposits. Promoters argue that the All tion or a bank. What's the cost in tax losses? "I should have known," he said. "This is Savers will channel money into the housing It's not yet possible to know. But it will cer­ just another one of those damn loopholes market while also giving a much-needed tax tainly be larger than the congressional esti­ for the rich. The little man pays taxes on break to the middle class. The truth is less mate of $3.3 billion over three years. every dime he earns, while you fat cats get a attractive: All Savers is a subsidy for banks The losers in this deal, along with the free ride. I guess you've already had your and savings-and-loans that will cost the Treasury, are the municipal borrowers. For expense-account lunch." 25662 EXTENSIONS OF REMARKS October 27, 1981 I assured him that it takes a lot more Watt demonstrating their support for Meanwhile, though, we probably should than $30,000 a year to qualify as a fat cat him. Seems by the time they got the all be concerned about "media events" - and, besides, the All Savers certificates were presentation organized, the media had about the editors, reporters, columnists and a good deal for his "little man," too. photographers who let themselves be ex­ "It can't be good for me if I don't have the drifted away. So Interior officials re­ staged the event the next morning at ploited that way. money to put up, No. 1; and No. 2, you've All I know about that is what I see and just explained to me that even if I did, I a special press conference. hear, so I will just report what I saw and don't make enough to get in on your rich It is OK by me if Mr. Watt wants to heard at the Idaho meeting where Jim Watt man's gravy train." stage a presentation in the bowels of a delivered the Speech. I hate teaching elementary economics, but coal mine, on top of Mount McKinley As Watt finished talking late that I did have some time to kill. "Look," I told or waist deep in the Everglades. But ev~J?-ing, after everybody's deadline, the tel­ him. "All that money the people in these please hold the yelps about environ­ evISion cameramen turned off their lights. lines are investing will then become avail­ mentalist media events. The reporters put away their pencils and able for mortgage loans, which means that notebooks. people. like you-the 'little man,' as you For more details, read Charles Roos in the October 26, 1981, Rocky Moun­ "Wait a minute," someone on the plat­ say-will be able to buy homes. It works out form called to the departing TV crews. "We for everybody." tain News, "The Watt Political are about to make a presentation to Secre­ "There's got to be a catch somewhere " he Speech." tary Watt. Tum those lights on." insisted. "Where did the people in the iines THE WATT POLITICAL SPEECH The media-perhaps suspecting an get the money to start with? It seems to me described such an in­ Tuesday, October 27, 1981 decade. This would have the very im­ strument as "purchasing-power bonds" portant result of relieving pressure on e Mr. JAMES K. COYNE. Mr. Speak­ in a recent Newsweek article where he public programs such as social securi­ er, today I have introduced the "Long­ states the view, which I endorse, that ty. Term Savings Incentive Act". This issuance of such a bond would be the Also, by relieving the "crowding out" proposal is designed to: Restore long­ best way to make administration phenomenon-by removing some $60- term savings incentives for the Ameri­ words and actions match. Inflationary $80 billion of Federal credit require­ can public and protect the ability of expectations play a most important ments from the short-term credit the average American to save for his part in our economy, and we cannot market-short-term interest rates will own future by guaranteeing the pur­ possibly hope to succeed in dampening fall dramatically, and business will chasing power of his savings; signifi­ those expectations of continued infla­ once again have access to the credit cantly reduce interest rates-by retur­ tion when the Treasury issues, as it needed to finance its investments. En­ ing to the concept of real interest did a few weeks ago, 20-year bonds on actment of this proposal will also pro­ versus the currently inflated nominal terms that would yield a lender 15.78 vide time for the benefits of the Presi­ rates, and; stop the senseless practice percent a year for the next 20 years. dent's investment incentives to be of taxing nominal-unreal-gain-by In this case, actions simply belie the felt.e limiting tax liability to real interest words. only. The provisions of my bill are as fol­ The pool of long-term savings is lows: A MESSAGE FOR CANCUN almost nonexistent in this country for The Treasury is authorized to issue one main reason. That reason is the eight 20-year long-term "Constant HON. DON BONKER lack of confidence on the part of po­ Dollar Debt Instruments" as a means OF WASHINGTON tential savers that their capital will be of financing up to 50 percent of the IN THE HOUSE OF REPRESENTATIVES preserved. Fixed interest rates, howev­ national debt; federally insured finan­ er high, still place the burden of risk cial institutions are authorized to issue Tuesday, October 27, 1981 about future economic conditions, eight 20-year long-term certificates de­ •Mr. BONKER. Mr. Speaker, I would about future inflation rates, on the nominated in constant-dollar like to bring to the attention of my saver. I believe strongly that, if we amounts-with such liabilities shel­ distinguished colleagues, a recent op­ eliminate this risk for the saverI tered by corresponding constant-dollar ed article by our esteemed colleague, lender, we will once again see a demon­ assets; money market mutual funds ToM EVANS of Delaware, on the sub­ stration by the American people of are authorized to include constant­ ject of U.S. participation in the Inter­ their desire to save for their own dollar long-term Treasury and bank national Development Banks. In the future. It is, quite simply, the irre­ securities in amounts up to 25 percent article entitled "A Message for sponsible fiscal policies pursued by of their total portfolios, and the Inter- Cancun," ToM EVANS discusses the in- ·October 27, 1981 EXTENSIONS OF REMARKS 25665 creasing need for international coop­ ly cost-effective means of supporting devel­ and the regional development banks to the eration in the area of food production opment, when compared to bilateral foreign countries of both the South and the North. and hunger prevention, promotion of assistance. In today's political atmosphere, there is economic development, and promoting President Reagan gave the World Bank less support for this type of assistance than and its sister institutions a rhetorical pat on at any time since World War II. And yet, stability in the Third World. As rank­ the back at last month's World Bank-IMP there have been few times in our history ing Republican on the International meeting, but it was clear from his statement when it has been more important. President Financial Institutions Subcommittee that the central thrust of this administra­ Reagan has a marvelous opportunity for of the House Banking Committee, tion's strategy for development is reliance leadership on this issue. We should all hope ToM EVANS is very familiar with the on the private sector. he takes that opportunity.e role that the International Develop­ I agree with President Reagan on the im­ ment Banks play in these and other portance of private sector development and important issues for the developing on the need for free and open markets. But, THE ADMINISTRATION'S AP- world. practically speaking, that will not occur in PROACH TO HANDICAPPED AC­ most Third World countries without public CESSIBILITY IS ILL ADVISED It is my hope that the Reagan ad­ sector involvement. ministration will give their full sup­ The missing ingredient is the existence of port to active U.S. participation in and a sound economic and physical infrastruc­ HON. BARNEY FRANK support for the international financial ture. Without water and sewers, a country OF MASSACHUSETTS institutions. As Representative EVANS like Haiti cannot hope to develop a tourist IN THE HOUSE OF REPRESENTATIVES writes: industry. Without a functioning railway from Port Sudan to Khartoum, the Sudan Tuesday, October 27, 1981 In today's political atmosphere, there is cannot effectively develop its vast agricul­ less support for this type of assistance than •Mr. FRANK. Mr. Speaker, over the tural potential. past several weeks I have become in­ at any time since World War II. And yet, The private sector has traditionally left there have been few times in our history the construction of roads, dams, sewers, creasingly disturbed about the admin­ when it has been more important. President port facilities and the like to the public istration's policies regarding the mini­ Reagan has a marvelous opportunity for sector. Similarly, investments in human cap­ mum guidelines on handicapped acces­ leadership on this issue. We should all hope ital such as disease eradication, vocational sibility issued by the Architectural he takes that opportunity. education and training have typically been and Transportation Barriers Compli­ The article follows: accomplished at least in partnership with ance Board. It is the administration's [From the Philadelphia Inquirer, Oct. 22, the public sector. desire, enunicated by the Vice Presi­ 19811 Government participation in these efforts dent's Counsel, C. Boyden Gray, that in the Third World is even more critical. In A MESSAGE FOR CANCUN most poverty stricken Third World coun­ these guidelines be rescinded al­ to the public. October 27, 1981 EXTENSIONS OF REMARKS 25667 I ask, therefore, that the Administration dresses of all gun owners in the Atlan­ sick society, etc. In view of their belief that reassess its position with respect to the min­ ta area. The slayings of the black chil­ man is the passive product of his environ­ imum guidelines. I will await your reply. dren in Atlanta was used as the ment, this is a logical statement. After all, if BARNEY FRANK. excuse, despite the fact that only 1 of a man is the product of his environment and 28 deaths being attributed to the use he did an evil deed, there must have been THE COMMONWEALTH OF something rotten about the environment MASSACHUSETTS, of a firearm. Article by Morgan N orval that caused him to act as he did. This HOUSE OF REPRESENTATIVES, follows: defect, then, must be rectified to prevent Boston, October 15, 1981. [From the Political Gun News, July 17, future evil acts. CHARLES GOLDMAN, 1981) The massive flaw in this reasoning is the General Counsel, A & TBCB, THE CULT OF NONSENSE fact that not all those who share the same Washington, D. C. Liberal antigun advocates-and most anti­ environment commit evil deeds. In fact, DEAR MR. GOLDMAN: I am writing to urge gunners are unabashed liberals-base their only a tiny portion of them do. your abandonment of the proposed revoca­ support of gun control in the form of gun For example, less than 1 gun owner in tion of the minimum guidelines and require­ bans on the premise that violent crime 3,000 ever commits murder. Of those who do ments for standards for accessibility and would be reduced if guns were outlawed. murder, over two-thirds have prior arrest usability of federal and federally funded fa­ Yet when pressed on this assertion, the records for major felonies. Since many of cilities and buildings. Accessibility and mo­ honest liberal will relunctantly admit that these prior felonies were directed against bility continue to be insurmountable prob­ gun control would not prevent the deter­ relatives and friends, the high two-thirds lems for millions of Americans. All of our mined crook from getting a firearm. Why. percentage is probably understated, as citizens have a fundamental right of access then, do they persist in attacking the gun, friends and relatives are less likely to press to their governmental institutions. However, as they recently did in passing a handgun charges. Also, police often dismiss these in­ this right means little to those citizens who ban in Morton Grove, Ill.? Why aren't they cidents as "family disputes." It is intriguing are unable to enter public buildings because directing their energies towards combating to note that in close to 90 percent of domes­ of their inability to surmount architectural the individual brain controlling the trigger tic homicides, the police had been to the barriers. Revocation of these minimum finger that sets of the gun? home at least once before to stop violent as­ standards would be disastrous to thousands The rationale behind the liberal antigun­ saults. In half of these cases, the police had of disabled citizens in Massachusetts and ner's thinking is his adherence to an ideolo­ been there at least five times. One can rea­ throughout the country. gy that is, in the final analysis, nothing sonably conclude that murderers are clearly Your reconsideration of this most impor­ more than a cult of nonsense. violent people with violent pasts. tant matter is greatly appreciated. This cult, in simple terms, rejects the con­ Now, if the antigunner's theory were cor­ Sincerely, cept of individual free will. Man, according rect, something would have to be wrong A. JOSEPH DEN UCCI, to the cult, is a passive product of his envi­ with the 2,999 out of 3,000 American gun Chairman, Committees on Human Serv­ ronment and not a rational thinking animal. owners who don't use their guns to murder ices and Elderly Affairs.• External forces and pressures shape his des­ people. Are these nonmurdering gun owners tiny. therefore psychotic? You would think so if, Viewed in this light, it is easy to see why and only if, you accept the theoretical basis BANNING HANDGUNS-THE CULT liberals attack the gun and not the person of the antigunner's rationale: The dominant OF NONSENSE using the gun. Because it is the external influence of environmental factors on a per­ stimulus of the environment that causes be­ son's behavior. HON. LARRY McDONALD havior