1947 CONGRESSIONAL RECORD-SENATE 5773 Mr. O'HARA: Committee on the District By Mr. DIRKSEN: 566. By the SPEAKER: Petition of Russell of Columbia. H. R. 494. A bill to reorganize H. R. 3601. A bill making appropriations E. Pierc~ and others, petitioning considera­ the system of parole of prisoners convicted in for the Department of Agriculture for the tion of their resolution with reference to the District of Columbia; with an amend­ fiscal year ending June 30, 1948, and for other favorable consideration. of S. 265; to the ment (Rept. No. 451). Referred to the Com­ purposes; to the Commitiee on Appropria­ Committee on Interstate and Foreign mittee of the Whole House on the State of tions. Commerce. the Union. By Mr. REED of New York: q67. Also, petition of St. Thomas Council, Mr. O'HARA: Committee on the District H. R. 3602 .. A bill to exempt from admis­ No. 1347, Knights of Columbus, Gary, Ind., of Columbia. H. R. 497. A bill to transfer sions tax general admissions to agricultural petitioning consideration of their resolution the probation system for the District of fairs; to the Committee ori Ways and Means. with reference to request for investigation Columbia to the probation system for United By Mr. BARRETT: . and curtailment of alleglid. subversive ac­ States courts; with an amendment (Rept. H. R. 3603. A bill granting the ·consent of tivities of foreign agents working directly No. 452). Referred to the Committee of the Congress to the States of Idaho and Wyoming or indirectly within ox: without the con­ Whole House on the State of the Union. · · to negotiate and enter into a compact for tinental United States; to the Committee Mr. O'HARA: Committee on the District the division' of the waters of the Snake River on Foreign Affairs. of Columbia. H. R. 3515. A bill to make it and its tributaries originating in either of unlawful in the District of Columbia to cor­ the two States and flowing into the other; ruptly influence participants or oplci~ls in to the Committee on Public La~ds. contests of skill, speed, strength, or endur­ By Mr. BARTLETT: ' ance, and-to provide a penalty therefor; with H. J. Res. 209. Joint resolution to provide SENATE . an amendment (Rept. No. 453). Referred to for the issuance of a special postage stamp the House Calendar. · in commemoration of the eightieth anniver­ MoNDAY, MAY 26, 1947 r-----:-- sary of the purchase of Alaska; to the Com­ REPORTS OF COMMI'ITEES ON PRIVATE mittee on Post Office and Civil Service. (Legislative day of Monday, April 21, BILLS AND- RESOLUTIONS· 1947) Under clause 2 of rule XIII, reports of MEMORIALS The Senate met at 12 o'clock meridian, committees were delivered to the Clerk Under clause 3· of rule XXII, memorials on the expiration of the recess. for printing and reference to the pro:Per were presented and referred as•follows: The Chaplain, Rev. Peter Marshall, calendar, as follows: By the SPEAKER: Memorial of the Legts­ D. D., offered the following prayer:. Mr. FELLOWS: Committee on the. Judi­ lature of the Territory of Hawaii, memoria:I­ We thank Thee, our Father in Heaven, ciary. S. 135. A bill to legalize the admis­ izing the President and the Congress of the· for lthis sacred moment when our hearts. sion into the United States of Frank Schind­ United States to provide, for purposes of ler; without amendment (Rept. No . . 448), taxation of income, that damage caused by may be united in prayer, and when, for.:. Referred to the Committee of the Whole the tidal wave which hit the Hawaiian Islands · getting all else save our need of Thy guid­ House. on April 1, 1946, ~nd the subsequent tidal ance and help, we may reach up to Thee waves or like marine disturbances may be as Thou art reaching down to us. PUBLIC BILLS AND RESOLUTIONS deducted from income in installments over a Let not the beauty of this day, or the period of 5 years; to the Committee on Ways glow of good health, or the present pros:­ Under clause 3 of rule xx!r, public and Means. bills and· resolutions were introduced and perity of our undertakings deceive us into severally referred as follows: a false reliance upon our own streng-th. PRIVATE BILLS AN~ RESOLUTIONS Thou hast given us every good thing. By Mr. SABATH: _ Thou hast given us life itself with-what­ H. R. 3593, A b111 to provide revenue from Under clause 1 of. rule XXII, private the ~hort sales of shares of stock, grains, bills and resolutions were introduced ~md ever talents we possess and the time and cotton, or other allied agricultural commodi­ severally referred as follows ·: the opportunity to use them. May we ties; to· the Committee on Ways and Means. By_ Mr. ALLEN of Californ-ia (by re­ use them wisely, lest they be curtailed or H. R. 3594. A bill to prohibit. communica­ . quest: taken away: tion of false information with respect to se­ H. R. 3604. A bill to authorize the Meth­ Deliver us from the error of asking and curities in certain cases; to the Committee · odist Home oi the District of Columbia to expecting Thy blessing and Thy·guidance on Interstate and Foreign Commerce. make certain changes tn its certificate of in our public lives while closing the aoors By Mr. WOLVERTON: ' incorporation with respect to stated objects; H. R. 3595. A bill to amend the Communi­ to Thee in our private living. Thou to the Committee on the District of Co­ knowest what we are wherever we are. cations Act of 1934, as amended, and for other lumbia. purposes; to the Committee on Interstate Belp us to be the best we can be. and-· Foreigti ·Commerce; · · By Mr. COLE of Kansas: . ' H. R'. 3605. ·A bill' for the relief of Richard' We ask in the name of Jesus Christ our " By Mr. PHILBIN: W. Seagrave's; to the Committee on the Lore. Amen. H. R. 3596. A bill to -amend the act of De­ Judiciary. cember 2, 1942, entitled "An. act to provide THE JOURNAL benefits for the injury, disab11ity, death, or By Mt·. JUDD: enemy detention of employees of contractors H. R. 3606. A bill for the relief of W. A. On request of Mr. WHITE, and by with the United · States, and for other pur­ Chisholm; · to the Committee on. the unanimous consent, the reading of the poses," to clarify the eligibility for benefits Judiciary. · Journal of the proceedings of Friday, of certain employees detained by the enemy H. R. 3607. A bill for the relief of W. A. May 23, 1947, was dispensed with, and in the Phil1pp1ne Islands; to. the Committee Chisholm; to the Committee on the the Journal was approved. _ on the Judiciary. ' Judiciary. By Mr. BATES of Massachusetts: H. R. 3608. A bill for the relief of Cristeta MESSAOES FROM THE PRESIDENT H. R. 3597. A blll to provide revenue for the La-Madrid Angeles; to the Committee on the Message.s in writing from the President. District of Columbia, and for other purposes; Judiciary. to the Committee on the District of Co­ By Mr. PO'ITS: of the United States were eommuni­ lumbia. H. R. 3609. A bill for the relief of Herluf cated to the Senate by Mr. Miller, one of By Mr. ALLEN of California: F. J. Ravn; to the CommltteP on the his secretaries. H. R. 3598. A bill granting the consent and Judiciary. . MESSAGE FROM THE HOUSE approval of Congress to an interstate com­ H. R. 3610. A bill for the relief of Herluf pact relating to the b.etter utilization of the F. J. Ravn; to the Committee on the A message from the House of Repre­ fisheries (marine, shell, and anadromous) of Judiciary. sentatives, by Mr. Maurer, one of its the Pacific coast and creating the Pacific Marine Fisheries Commission; to the Com- , reading clerks, announced that the mittee on Merchant Marine and Fisheries. PETITIONS, ETC. House had passed the bill (S. 814) to By Mrs. ROGERS of Massachusetts (by. Under clause 1 of rule XXII, petitions provide support for wool, and for other request): and papers were laid on the Clerk's desk purposes, with amendments in which it H. R. 3599. A bill to provide medical care requested the concurrence of the Senate. for war widows and medical and dental care and referred as follows: for war orphans, and for other purposes; to 565. By Mr. SMITH of Wisconsin: Resolu­ ENROLLED BILL SIGNED the Committee on Veterans' Affairs. tion adopted by William A. Bancroft Camp, The message also announced that the By Mr. COLE of Kansas: No. 16, of United Spanish War Veterans, H. R. 3600. A bill to· reimburse certain em­ Racine, Wis., endorsing H. R; 969, which Speaker had affixed his signature to the ployees of the Bureau of Prisons of the De­ would increase pensions of Spanish-Ameri­ enrolled bill spring not to seek extension of selective serv­ assumption of the tactical offensive. We search for an optimum balance between ideal ice then. But this remedy.ls directed to the visualize that the first of such operations will requirements and practical capabilities. ·question of maintaining our standing forces and not of training our civilian reserve. UMT be conducted largely by air forces and air­ UMT WILL ALLOW DECISIVE OFFENSIVE TO BE is the only practical solu~ion to tllat problem. and-sea-transported land forces. Such forces ASSUMED MUCH EARLIER require the deployment of great numbers· of Mr. Baldwin's third proposition emphasizes REG~ ARMY SHOULD BE MUCH LAJlGEB WITH- menr on the ground, at air and sea bases, the fact that the offensive has many advan­ OUTUMT launching sites. ports, depots, communica­ tages over the defensive. However, as ap­ A much larger Army will be required with­ tion lines, and elsewhere. It is not conceiv­ plied to the United States, this maxim may out UMT than will be required with UMT to able that personnel employed in these activi­ very well run against us-not for us-in the attain the same degree of security. Uni­ ties could be fully effective in the numbers initial stages of a future war. We have no versal military training increases the peace­ and at the time required, without previous aggressive intent anywhere in the world. We time responsibilities of the Regular Army but basic military training. Certainly. the num­ may be confronted with a long-planned sur­ does not increase its burdens as Mr. Hanson bers involved will be far larger than we will prise offensive. Therefore, we are almost cer­ Baldwin indicates. On the contrary, it light­ be willing or able to maintain in a standing tain to pass through an initial defensiv.e ens the burden.: At the,opening of hostW­ peacetime establishment. ·phase which we should contrive to shorten ties, days and months have been lost while We must distinguish between massed bat­ as far as possible. UMT is the best means of training cadres were set up and fundamentals tle formations and large armies. Massed shortening this phase. It is the best insur­ inculcated in new soldiers. With universal infantry formations on the battlefield have ance that our scientific air-sea-land effort can military training, there will be called into declined since Napoleonic wars. and we may quickly reach its maximum power. . service thousands of men who will not have expect this tendency to continue. America, It is certainly not clear how Mr. Baldwin . to begin from scratch. since colonial and Indians days, has led the could interpret a trained civilian manpower The Regular Army has responsibilities for world away from mass formations and as a Maginot Line, when the whole phi­ the training of the National Guard andRe­ toward wide deployment and open warfare. losophy of UMT is to speed up the time it serves. Trained manpower will facilitate ef­ Atomic ru;1d othe1· scientific developments takes to shift to the aggressive decisive coun­ ficient performance. will, without auestion, further accelerate this terattack. It is pertinent that only last The Regular Army's main job today is oc­ trend. We had no mass a~:my in World War March Prof. Albert Einstein, who is inti­ cupation. Universal military training- will II. We had only 89 divisions scattered over mately familiar with the capabilities of not solve the problem of manpower for our the whole world. Even within these divi­ atomic energy, specifically and publicly forces in Germany ·and Japan except InsOfar sions, the proportion of technical and warned us that we may be treating the atom as it may stimulate Interest in the Army as logistical troops to rifl.emen was high. The bomb (and by implication other scientific a career. The primary and traditional job over-all proportion of ait and service troops means), as a Maginot Line. He state~ that of the Regular Army, however, is training, to ground combat troops was, of course, the bomb secret gives us "security only in and universal military training will give the much higher. This proportion can be ex­ imagination. • • • and to that extent is Army the men in peacetime, before hostilities pected to grow. However, there is no his­ a great danger." begin, who will be invaluable if war comes torical or scientific evidence that armies are We agree with Mr. Baldwin that reserves, and will save time, money, and lives. becoming smaller because of this trend. On no matter how well trained, cannot possibly To rely wholly on a Regular Army, espe­ _the contrary, all the evidence proves that, as eliminate the need for a highly skilled ~­ cially of the size needed in a war of today or weapons and means become more powerful, lar force. But the existence of trained re­ tomorrow, would be far more expensive and armed forces have necessarily become much serves will make whatever standing force we "moreover would be contrary to the American larger. Logistical requirements to support are allowed to retain much more readily traditional attitude toward standing· armies. the more powerful weapons and the neces­ avatlable for immediate action. Our Regu­ The concept of universal preparedness for all sity for wide deployment make more men. lar forces will always be largely committed able-bodied men, however, is as old as the necessary in the battle and communications abroad in insular possessions . . We will never English common law. zones, even though there are fewer infantry­ have enough men, in Regular Army units CIVILIAN COMPONENTS ESSENTIAL 0 NATIONAL men on the firing line. alone, to undertake all the initial tasks of DEFENSE No one can foretell when the methOds, total mobilization. They must be supported weapons, and techniques of the present will Point No. 6 in Mr. Baldwin's article states immediately by the National Guard, ORC, that the program is primarily designed to finally be replaced. Revision and improve­ and other civilian components which must, ment is a continuing process. Our best ad­ strengthen the National Guard and Reserve in turn, be backed up by UMT to provide components, the value of which he impugns vices are that push-button warfare is many the requisite manpower and training. Lack­ years away. as not being immediately ready for combat ing this support they will be depleted at service in this atomic age. Certainly, the We must do everything we can now to the outset to do jobs which trained reserves program is pointed towards strengthening prevent a long war~if war comes. UMT of­ could otherwise do. And when committed the National Guard and Organized Reserve fers a sure saving in time. No reasonable to action they will be subject to suicidal sac- . and practical alternative has been suggested. (among other essential goals). UMT will rifices if they have no early support. make the National Guard more efficient in WORLD WAR II VETERANS MUST BE RELIEVED BY UMT ESSENTIAL TO CYVIL DEFENSE the future than ever before. There is now TRAINED REPLACEMENTS Mr. Baldwin's fourth proposition is that the richest reserve of trained and war-experi­ M'r. Baldwin's second proposition is that UMT does not point to civil defense, now be­ enced National Guard and Reserve leader­ we already have trained and battle-tried coming extremely vital in case of war. This ship in history to train and lead its new or­ troops to meet an immediate emergency. is exactly contrary to the fundamental basis ganizations. The National Guard and Re­ Even with unive1·sal training, it will be more of the whole UMT plan as envisaged by the serve in World War II enriched their tradi­ than 5 years before a substantial new re­ War Depart ment. Training in first aid, basic tion in the service of the Nation. The Na­ serve would be trained. During those 5 years, hygiene, sanitation, organization, discipline, tional Guard and selected units of the Or- 1947 CONGRESSIONAL RECORD-SENATE 5777

ganized Reserve will be able in the future to and '~;hat the only way we can shorten the AUTHORIZATION FOR CERTAIN TRANSFERS AND meet certain vital, early, emergency missions time is to train them before the advent of CONSOLIDATIONS OF APPROPRIATIONS BY FED­ better than ever in the past. The National war. This requires peacetime military train- ERAL SECURITY ADMINISTRATOR Guard will be ready for decisive combat mis­ . ing of civilians in large numbers. For the A letter from the Acting Administrator of sions months earlier, with UMT, than ever foreseeable future, every man in the armed the Federal Security Agency, transmitting a before. It must be realized that all M-day forces, regardless of his branch or how tech­ draft of proposed legislation to authorize missions are not necessarily combat missions nical his ultimate assignment, must have intra-agency transfers and consolidations of on a battlefield. Many such missions require basic training of the type contemplated appropriations by the Federal Security Ad­ troops, which can still be in their training under UMT. That is universal military ministrator, and for other purposes (with an phase, for example, civil defense and.to relieve training by any name you choose to call it. accompanying paper); to the Committee on Regular Army units of their zone of the in­ The value of the trained man as compared Expenditures in the Execut_ive Departments. terior, communications-zone and base-de­ to the untrained man is as undeniable in the fense missions to make . them immediately mllitary field as in the field of medicine, law, PETITIONS AND MEMORIALS available to the mobile striking force. for ac­ · science, or industry. This need of trained Petitions, etc., were laid before the tive combat. The proper performance of such manpower, if the country is to have a strong vital support missions, in the very earliest defense establishment, was as manifest to Senate, or presented, and referred as in­ stages of a future war, may turn a threat ·Of Washington, Jefferson, and Jackson in former dicated: early defeat into eventual victory. They can­ times as to Pershing, Marshall, and Eisen­ By the PRESIDENT pro tempore: not possibly be performed in time without hower in our own times. A concurrent resolution of the Legislature well-trained reserve units. UMT will thus President Washington stated: "It may be of the Territory of Hawaii; ordered to lie on make a major and perhaps decisive contribu­ laid down as a primary position, and the the table: tion in the very first phase of a ,future war. basis of our system that every citizen who "Senate Concurrent Resolution 17 enjoys the protection of a free government, Its value during the later build-up stage, in "Concurrent resolution requesting the Con­ speeding up replacements and supports and _owes not only a portion of his property, but even of his personal services to the defense of gress of the United States to enact the in furnishing the life blood of the civil de­ Wagner-Ellender-Taft bill, S. 866, of the fense structure, will be equally great. it." General Marshall stated: "I think you have Eightieth Congress, first session MILITARY BUDGET MUST BE BA~ANCED AMONG to frankly face two things: Either universal "Whereas the Territory of Hawaii is faced ALL ESSENTIALS military training or the hope--that is all with a housing crisis so far reaching in scope The seventh proposition is tha~ the UMT you can possibly ha~ r e--the hope that you and so serious in nature that the Territory program will be costly and will thus starve will have better than a year for preparation. is unable to cope with it fully if unassisted other activities, such as the State Depart­ Of course, if you decide to repeat the policies by Federal aid; and ment, intelligence, research and develop­ of. the past and rest your security on a hope, "Whereas until the enactment of further ment, service schoo1s, and Industrial mobili­ it means that your lack of readiness would, legislation by the Congress additional Federal zation. All of these.programs are as vitally in my opinion, encourage the very thing you funds will not be available to alleviate the essential as UMT and must be preserved. All wish so earnestly to avoid, namely, the discomfort and suffering of countless resi­ elements of preparedness must be balanced tragedy of another war." dents of the Territory who are now living in within the funds that can reasonably be made Washington's statement of a fundamental inadequate.accommodations; and . available. Such funds as are made availa­ requirement of our democratic system has "Whereas the Wagner-Ellender-Taft bill, ble for ~ecurity, which includes sizable· ap­ now become an urgent necessity to the sur­ S. 866 of the Eightieth Congress, first session, propriatfons for other departments of the vival of that... system. The drastic develop­ entitled 'A bill to establish a national hous­ Government than· War and Navy·, must be ments in the speed and destructive power of ing objective and the policy to be followed in apportiorled among all essential preparedness modern war make unavoidable the choice the attainment thereof; to facilitate sus­ programs without eliminating any one essen­ presented by General Marshall. We can be tained progress in the attainment of such tial. UMT, in terms of eventual dividends, guided by the founder of our democracy objective and to provide for the coordinated is one of the cheapest of all preparedness and insure our system of a reasonable chance execution of such policy through a National measures. Tbe savings in months of war ex­ of survival; or we can be guided · by wishful Housing Commission, and for other pur­ penditures of billions of dollars and hundreds thinking, and stake the survival of our sys­ poses,' presents a well-considered program for of thousands of lives will be incalculable, tem on a reckless gamble. housing which, if enacted, would be of aid to The eighth proposition states that UMT, TRANSACTION OF ROUTINE BUSINESS all the States as well as the Territory in as­ by its very size, may build a shadow of suring adequate housing both through pri­ strengt h and security without substance-­ By unanimous consent, the following vately financed construction and public low­ that air and sea power and guided missiles routine business was transacted: · rent projects: Now, therefore, be it; and new weapons must have priority. Here EXECUTIVE COMMUNICATIONS, ETC. "Resolved by the Senate of the twenty­ Mr. Baldwin reveals a fundamental misun­ fow·th session of the Legislature of the Ter­ derstanding of UMT and of a proper balance The PRESIDENT pro tempore laid.be­ ritory of Hawaii (the house of representa­ of armed forces required to achieve victory fore the Senate the following letters, tives concurring), That the Congress of the should we be forced into a war now, or in which were referred as indicated: United States be, and it is hereby, requested the foreseeable future. UMT is not an end in REINCORPOiiATION OF THE INSTITUTE OF to enact said Wagner-Ellender-Taft bill; and itself. It is not another weapon or another INTER-AMERICAN AFFAIRS be it further armed force to be gaged in comparison with "Resolved, That certified copies of this res­ land, sea, and air power. It is the means of A letter from the Secretary of State, trans­ providing trained manpower to make the mitting a draft of proposed legislation to olution be forwarded to the President of the Navy and Air Force as well as the ground provide for the reincorporation of the Insti­ United States, to the President of the Senate, Army and the civil-defense structure quickly tute of Inter-American Affairs and for other and to the Speaker of the House of Repre­ effect ive in the event of war. It is essential to purposes (with accompanying papers); to sentatives of the Congress, to the Secretary a quick build-up of all of those forces. And . the Committee on Foreign Relations. of the Interior, and to the Delegate to Con­ in a future war speed will be of the essence UTILIZATION OF APPROPRIATIONS IN CONNECTION gress from Hawaii." of victory. Mr. Baldwin's whole article is WITH UNRRA LIQUIDATION A resolution adopted by · the Engineers' based on a basic misapprehension of the im­ A letter from the Secretary of State, trans­ Club, of Minneapolis, Minn., expressing that portance of this fundament al fact. He treats mitting a draft of proposed legislation to club's appreciation and gratification for UMT as essent ially a negation of modern de­ enable the President to utilize the appropria­ changing the name of Boulder Dam to Hoover velopments in air, sea, and land power. tions for United States participation in the Dam; ordered to lie on the table. Whereas, actually, it is the very speed and work of the United Nations Relief and Re­ A resolution adopted by the American Vet­ complexity of modern warfare which makes habilitation Administration for meeting ad­ erans' Committee, Territory of Hawaii, Chap­ UMT, for the first time, an absolute essential ministrative expenses of United States Gov­ ter No. 7, Lower Manoa, Honolulu, T. H., fa­ to our military security. The speed of war ernment agencies in connection with United voring the enactment of the bill (H. R. 857) requires that men be made effective much Nations Relief and Rehabilitation Admin­ to remove the racial restrictions upon nat­ quicker than ever before. The complexity istration Liquidation (with accompanying uralization and to amend the immigration requires that they receive more training than papers); to the Committee on Foreign Rela­ laws, and for other purposes; to the Com­ ever before. Further, UMT is the only ~:~ub­ tions. mittee on the Judiciary. stitute {or the strong Allies who in our last PARTICIPATION IN INTER-AMERICAN CONFERENCE Petitions of the members of the Pensacola two wars bore the brunt of the attack while ON SOCIAL SECURITY Townsend Club, No.1, and sundry citizens of we were building up our fighting forces. A letter from the Under Secretary of State, Boynton' Beach, both in the State of Florida, NQ- PRACTICAL "ALTERNATIVE TO UMT transmitting a draft of proposed legislation praying for the enactment of the so-called Nowhere in his article does Mr. Baidwin providing for participation by the United Townsend plan to provide old-age assistance; f ace t h ese simple facts-that a war of the 'States in the Inter-American Conference on to the Committee on Finance. future will require a more comprehensive and Social Security and its Permanent Commit­ By Mr. LUCAS: . a more rapid mobilization than we have ever tee and authorizing an appropriation there­ A resolution adopted by the House of Rep­ faced b.efore, that this will require us to train for (with accompanying papers); to the resentatives of the General Assembly of the more men in a shorter time than ever before Committee on Foreign Relations. State of. Illinois, favoring location of an 5778 CONGRESSIONAL RECORD-SENATE MAY· 26 atomic-energy laboratory . on Government­ zation now requires laws, in the place of "That man should be forever-free and that owned land near Elwood, Ill.; to the Joint treaties, as instruments to regulate com­ his historic righ~ as ·an Individual and as a Committee on Atomic Energy. merce between peoples. The intricate con­ citizen should ·be protected by all the safe­ (See resolution printed· in full when laid ditions of modern life have rendered treaties guards sanctioned by politica.l wisdom and before the Senate by the President pro tem­ ineffectual and obsolete, and made laws es­ experience. pore on May 23, 1947, p, 5706, CONGRESSIONAL sential and .inevitable. The age of treaties "That governments are essential to the RECORD.) - is dead; the age of laws is here. existence of communities and that the ab­ sence of government is anarchy . . MISSOURI .LEGISLATURE CONCURRENT "Governments, limited in their jurisdic­ tion to local · geographical areas, can no "That there exists an international com­ RESOLUTION APPROVING PRINCIPLE longer satisfy the needs or fulfill the obliga­ munity, encompassing the' ep.tire world, OF WORLD FEDERATION tions of the human race. Just as feudalism which has no government and which is des­ Mr. DONNELL. Mr: President, I ask served its purpose in human history and was tined, eit}ler to be ruthlessly dominated and superseded. by nationalism, so has national­ exploited by totalitarianism or to be feder­ unanimous consent to present for appro­ ism reached its apogee· in this generation ated by democracy upon the principle of priate reference and to have incorpo­ and yielded its hegemony in the body politic freedom for all nations and individuals. r.ated in the body of the RECORD Senate to internationalism. The first duty of gov­ "That all human beings are citizens of this Concurrent Resolution.No. 6, adopted on ernment is to protect life and property, and world community, which requires laws and May 13, 1947, by the Senate, and on May when governments cease to perform this not treaties for its government. 15, 19,47, by the House of Representatives function, they capitulate on the fundamen­ "That world federation is the keystone ir1 of the Missouri Legislature, being a con­ tal principle of their raison d'etre. Nation­ the arch of civilization, humanity's charter of current resolution approving the prin­ alism, moreover, is no longer able to preserve liberty for all peoples, and the signet nuthen­ the political independence or the territorial ticating at last the union of the nations in ciple of world federation .. integrity of nations, as recent history so freedom and peace. There being no objection, the concur­ tragically confirms. Sovereignty is an ide­ "That there are supreme moments in his­ rent resolution was received, referred to ological concept without geographical bar­ tory when nations are summoned, as trustees the Committee on Foreign Relations, riers. It is better for the world to be ruled of civilization, to defend the heritage of the and, under the rule, ordered to be by an international sovereignty of reason, ages and to create institutions essential for printed in the RECORD, as follows: social justice, and peace than by diverse na­ human progres~ _. In the providence of God, tional sovereignties organically incapable of such a crisis is this hour, compelling in duty Senate Concurrent Resolution 6 preventing their own dissolution by con­ and unprecedented in responsibility-a fate- Concurrent resolution approving the quest. Mankind must pool its resources of . ful moment wh~n men meet destiny for the principle of world federation defense if civilization is to endure. fuifillment· of historic tasks;,: Now, therefore, Whereas it is necessary at the present "History· has revealed but one principle be if · - juncture of human affairs to enlarge the by which free peoples, inhabiting extensive Resolved by the senate (the house ot rep­ bases of organized society by establishing a territories, can unite under one government ,·esentatives concurring): government for the community Qf nations, without impairing their local autonomy. SECTION 1. That the General Assembly of in order to preserve civilization and en­ That principle is federation, whose virtue Missouri does hereby solemnly declare that able mankind to live in peace and be free, preserves the whole without destroying its all peoples of the earth should now be united in a world federation, and requests the ·Sen­ the following principles and object~ves are parts and strengthens its parts without hereby enunciated in- jeopardizing the whole. Federation vitalizes ators aJad Members of the Hous~ of Repre­ sentatives in Congress from the State of "THE DECLARATION OF THE FEDERATION OF ·THE all nations by endowing the~ with security and freedom to develop their respective cul­ Missouri to support and vote for a resolution WORLD tures without menace of foreign domination. in the Congress of the United States, approv­ "Man, the source of all-political authority, It regards as sacrosanct man's personality, ing the principle of world iederation and re­ is a manifold political being. He is a citizen his rights as an individual and as a citizen questing the President of the United States of several communities: the . state, the na­ and his role as a partne'r witli all other men to initiate the procedure necessary to-formu­ tion, and the world. To each .of these com­ in the common enterprise of building civili­ late a constitution for the federation of the munities he owes inalienable obligations zation for the benefit of mankind. It sup­ world, which shall be submitted to each na­ and fr.om each he receives enduring benefits. presses the crime of war by reducing to the tJ_on for its ratification. · "Communities may-exist for.. a time with­ ultimate minimum the possibility of· its oc­ Sac. 2. That a copy of this resolution be out being incorporated but, under the stress currence. It renders unnecessary the. furt-her sent to each of the Senators and Members ()f of adversitt, they disintegrate unless legally paralyzing expenditure of wealth for belliger­ the House of Representatives in ·COngress organized. Slowly, but purposefully, through ent activity, and· cancels through the ages from the State of Missouri. the centuries civilization has united the the mortgages of war against the fortunes SEc. 3. That this resolution shall be in full world, integrating its diverse local interests and services of men. It releases the full ener­ force and effect from and after its ratiftcation. and creating ~n international community gies, lnt.eutgence, and assets of society for FARM BUREAU SOIL CONSERVATION AND that now embraces every region and every creative, ameliorative, and redemptive work ' FERTILIZER PROGRAM person on the globe. This community has on behalf of humanity. It recognizes man's no governmen·;;, and communities without morning vision of his destiny as an .authen­ Mr. CAPPER. Mr. President, I have government perish. Either this community tic potentiality. It. apprehends the entire received a· telegram from H. A. Praeger, must succumb to anarchy or submit to the human race as one. family, .human beings president, Kansas Farm Bureau, express­ restraints of law and order: everywhere as brothers and all nations as ing approval of Senate .bill 1251, known "Governments can only · be established component parts of an indivisible com­ through the deliberate e~orts of men. Man as the Farm Bureau soil conservation munity. and fertilizer program. I ask unani­ has struggled from time· immemorial to en­ "There is no alternative to ihe federation dow the individual with certain fundamen­ of all nations except endless war. No sub­ mous consent to present the telegram and tal rights whose very existence is now 1m­ stitute for the federation of the world can request that it be appropriately -referred periled. Among those rights is man's free­ organize the international community on and printed in the ·RECORD. dom to worship, speak, write, assemble, and There being no objection, the telegram vote without arbitrary interference. To the basis of freedom and permanent peace. safeguard these liberties as a heritage for Even if continental, regional or ideological was received, referred to the Committee the human race, governments were insti­ federations were attempted, the govern­ on Agriculture and Forestry, and ordered tuted among men, with constitutional guar­ ments of these federations, in an effort to ·to be printed in the RE.CORD, as follows: anties against the despotic exercise of po­ make impregnable their separate defenses, HOISINGTON, KANS., May 15, 1947. litical authority, such as are provided by would be obliged to maintain stupendously Hon. ARTHUR CAPPER, elected parliaments, trial by jury, habeas competitive armies and navies, thereby con­ Senate Office Bu-ilding, corpus, and due process of law. Man must demning humanity Indefinitely to exhaus­ Washington, D. C.: now either consolidate his historic rights or tive taxation, compulsory military service Thank you for sponsoring S. 1251, the Farm lose them for generations to come. and ultimate carnage, which history reveals Bureau soil conservation and fertilizer "The ceaseless changes wrought in huma11 to be not only criminally futile but posi­ measure. Forty thousand · Kansas farmers society by science, industry, and economics, tively avoidable through judicious foresight who are members of Kansas Farm Bureau are as well as by the spiritual, social, and intel­ in federating all nations. No nation should asking Congress to pass this bill. Appre­ lectual forces which impregnate all cultures, be excluded from membership in the federa­ ciate your influence for an immediate hear­ make political and geographical isolation of tion of the world that is willing to limit its ing in the committee of this proposed legis­ nations hereafter impossible, The organic military, naval, and air forces, retaining· only lation. Your cooperatio~ in getting this bill life "of the human race is at last indissolubly a constabulary sutll.cient to police its terri­ through the Senate appreciated. · unified and can never be severed, but it must tory and to maintain order within its juris­ H. A. PRAEGER, be politically ordained and made subject to diction, provided that the eligible voters ot President, Kansas Farrn Bureau. law. Only a government capable of dis­ that nation are permitted the free expres­ UNIFORM MARRIAGE AND DIVORCE LAW ~Jharging all the functions of sovereignty in sion of their opinions at the polls. the executive, legislative, and judicial "It being our profound and irrevocable Mr. CAPPER. Mr. President, I ask spheres can ac::omplish such a task. Civili- conviction: unanimous consent to have -printed in the 1947 CONGRESSIONAL RECORD-SENATE 5779 body of the RECORI) an editorial published unanimous consent to report favorably, By Mr. AIKEN: recently by the Presbyterian magazine of without amendment, the bill S. i350. A bill to authorize relief of the Philadelphia, endorsing the Capper di­ to amend the act entitled "An act to pro­ Chief Disbursing Officer, Division of . Dis­ vorce bill now before the Senate Judici­ ·bursement, Treasury Department, and for vide that the United States shall aid the other purposes; to the Committee on Ex­ ary Committee. States· in the . construct~on of rural post penditures in the Executive . DepartmentS'. There being no objection, the editorial· roads, and for other purposes/' approved By Mr. McCARRAN: was ordered to be printed in the RECORD, July 11, 1916, as amended and supple­ S. J: Res. 120. Joint resolution authoriz­ as follows: mented, and for other purposes, and I ing the President of the United States of A BILL TO SUPPORT submit a report night the scandalous divorce mills of such By Mr. IVES: GEROUS WEAPONS IN THE DISTRICT OF States as Florida and Nevada. Reno would S. 1336. A bill for the relief of Abbot Low COLUMBIA_:_AMENDMENT sink again to its rightful level as a frontier Moffat; and town-or, rather, it would rise to that decent S. 1337. A bill for the relief of Hou Chung Mr. COOPER submitted an amend­ level. And although the Capper bill does not Chay; to the Committee on the Judiciary. ment in the nature of a substitute in­ conform to the Biblical and Christian stand­ By Mr. GURNEY (by request): tended to be proposed by him to the bill ard, it promises so much in approaching that S. 1338. A bill to amend the Articles for the to amend section 4 of the act ideal that it should receive the hearty sup­ Government of the Navy to improve the ad­ entitled "An act to control the possession, port of all Christian citizens and churches. ministration of naval justice; and sale, transfer, and use of pistols and other Fanatical supporters of· State's rights should S. 1339. A bill to amend the Armed Forces dangerous weapons i:t;1 the District of Co­ keep their hands off; Here is a moral issue Leave Act of 1946, approved August 9, 1946 that concerns the whole Nation. (Public Law 704, 79th Cong., 2d sess., 60 Stat. lumbia," approved July 8, 1932 , which-was REPORTS .OF COMMITTEES mittee on Armed Services. , ordered to lie on the table and to be The foll~win~ reports of cdmmittees s. 1340. A bill to amend the act entitled printed. were submitted: · ''An act to provide additional protection for EXECUTIVJil MESSAGES REFERRED owners of patents of the United States, and By Mr. C.APPER, from. the . Committee -on for .other purposes," approved June 25, 1910, As in executive session, Agriculture and Forestry: as amended, so as to the protect the United The PRESIDENT pro tempore laid be­ H. R. 1237. A bill to regulate the marketing States in certain patent sults;. to the Com­ fore the Senate messages from the Presi­ of economic poisons and devices, and for mittee on the Judiciary. other purposes; without amendment (Rept. dent of the United States submitting No. 199). · By Mr: LUCAS: sundry nominations, which were referred By Mr. ECTON, from the Committee on S. 1341. A ·' bill to provide for the designa­ to the appropriate committees. Public Lands: · · tion of the United States .veterans' Adminis­ tration Hospital at Chicago, Ill., as the Albe1·t ing of certain public lands to, the State ,of Montana or. to the Board· of County Com-· Committee on Labor and·Public Welfare. JOINT COMMITTEE ON GOVERNMENT · missioners of Hill county, Mont., for public­ ' S. 1342. A bill for the relief of Mr. and Mrs. INFORMATION PROGRAMS park purposes; without amendment (Rept. Edward E, Pauls; to the Committee on the No. 202). - Judiciary. · Mr. HATCH. Mr. President, the other By Mr. BUTLER, from · the Committee on By Mr. ECTON: day in commenting upon the program Public Lands: S. 1343. A bill authorizing the Secretary commonly referred to as the Voice of S. 1318. A bill to provide funds for coopera­ of the Interior to issue. a patent in fee to America I made a suggestion that the tion with the school board of the Moclips­ William Elliot Towne; and ' Congress should have additional infor­ Aloha district for the construction and equip­ S. 1344. A bill authorizing the Secretary mation obtained by its own committees. ment of a new school building in the town of the Interior to issue a patent in fee to I made the suggestion in the hope that of Moclips, Grays Harbor County, Wash., to Mrs. Ida Towne Barrett; to the Committee on the members of the majority party would be available to both Indian and non-Indian Public Lands. - children; with an amendment (Rept. No. By Mr. CAIN: submit a resolution. It has not- been 203). S. 1345. A bill to provide revenue for the done to my knowledge. However, I have By Mr. CORDON: District of Columbia, and for other pur­ seen that the House Committee on Ap­ From the Committee on Appropriations: poses; and priations through a subcommittee is H. R. 2436. A bill making appropriations for S. 1346. A bill to fix and regulate the planning to conduct such an investiga­ the Treasury and Post Office Departments for salaries of teachers, school officers, and tion. I realize the importance of this the fiscal year ending June 30, 1948, and for other employees of the Board of Edu.a­ matter to the Appropriations Committee, other purposes; with amendments (Rept. No. tion of the District of Columbia, and for but I believe a question of permanent 201). other purposes; to the Committee on the From the Committee on Public Lands: District of Columbia. policy is involved which ought to have S. 1185. A bill to provide for the- disposal of By Mr. EASTLAND: consideration by the appropriate com­ materials on the public lands of the United S. 1347. A bill for the relief of Burks mittee of the Senate. I have therefore States; without amendmenc (Rept. No. 204); L. Fielder; to the Committee on the drawn such a resolution and am offering and Judiciary. it this morning with the request that it S. 1262. A bill to provide a central author­ By Mr. CORDON: be referred to the Committee on Foreign ity for standardizing geographic names for S. 1348. A bill to provide for the addi­ Relations. the purpose of eliminating duplication in tion of certain revested Oregon and Cali­ I said the other day that there was no standardizing such names among the Federal fornia railroad grant lands to the Silver departments, and for other purposes; without Creek recreational demonstration project, pride of authorship and there is none. I amendment (Rept. No. 205). in the State of Oregon, and for other pur­ ask unanimous consent to submit the concurrent resolution in the hope it will CONSTRUCTION OF RURAL POST ROADs- poses; to the Committee on Public Lands. By Mr. DWORSHAK: • be referred to the Committee on Foreign REPORT OF A COMMIT'TEE S. 1349. A bill for the relief of Kaoru Relations and that the committee will Mr. COOPER. Mr. President, from (or Richard) Nimori; to the Committee on take such action and make such changes the Committee on Public Works, I ask the Judiciary. · as may be appropriate or proper. 5780 CONGRESSIONAL RECORD-SENATE MAY 26 There being no objection, the concur­ Committee on the Judiciary may sit dur­ THE INTER-AMERICAN MILITARY COOP­ rent resoluti-on refore we shall not be able to efiect from Georgia, "Why do we hot wait Government. a saving of three and a half billion dol­ until the lOth of June? That is only 3 All of these things are hanging loose lars by reducing expenditures. Already weeks away. By that· time all the appro­ in the air, and yet this proposal is made we have been over 9 of the 12 depart­ priation bills will have reached the floor before we know anything about the ments of the Government, and we have of the House of Representatives, and we amount of the cuts. We should not reduced their appropriations $1,205,000,- can then see the extent of the proposed anticipate that they will be greater than 000. We have three departments left. cuts suggested by the House Appropria­ we now know they will be. In my judg­ In my judgment we shall not be able to tions Committee. If those cuts are suf­ ment, when many of the bills which have reduce expenditures by $3,200,000,000. ficient to warrant a tax reduction, all been reported to the House or acted upon What de the advocates of ''act now" well and good. If they are not sufficient by the House come before the Senate suggest? They say, "This is a great year. and we act beforehand, we will have re­ there is no question that many of them _ Income is soaring. The pecple are pros­ duced taxes beyond the point of pru­ will have some of the cuts restored to perous. There is a great deal of money dence." He asks only that we have all them. Already the Republican Senator in the country. Corporations ate making the information obtainable before we from Vermont [Mr. AIKEN] has· said that enormous profits. This condition will decide-the·matter; he asks only that we $180,000,000 of the cut in the Agriculture continue for the next 14 months. There· have all the facts before us. If the facts Department bill ought to be restored. will be no substantial dip. There will be are as predicted in some quarters, I shall Already western Senators on both sides no loss in Federal revenue. Profits will be in favor of tax reduction. If, on the of the aisle are saying that the cuts in continue, and therefore tax revenues will other hand, they are not as predicted, the Interior Department bill having to continue." They say that if that situa­ then I should want to modify the pro­ do with reclamation and irrigation tion continues for 14 months longer, we posal of the able Senator from Colorado should be restored. If those things come can expect $4,000,000,000 or $5,000,000,- [Mr. MILLIKIN]. to pass-and we have already made 000 more in revenue in the Federal In reading the newspaper this morn­ many restorations in other appropria­ Treasury than we anticipated we would ing I was astounded to find that the very tion bills in the Senate Committee on have, so great are profits and earnings able and industrious ·senator from. Ohio Appropriations-then the $1,205,000,000 and income-tax payments of both cor­ [Mr. TAFT], in a Nation-wide radio ad­ of the $9,000,000,000 already reported to porations and individuals into the li'ed­ dress, as reported in the press, had made the House will shrink, in all probability, eral Treasury. the statement that he had no fear of a to six hundred or seven hundred or eight Apparently no one else shares that deficit for the year 1948, assuming that hundred millions of dollars. That will view. I do not often read the stock­ the tax-reduction bill becomes a law. In represent all the cuts in all of the bills market page, but in the past 3 or 4 Qther words, the Senator made the pre­ so far reported to or acted upon by the months I have noticed that the prices of diction that for the next 14 months busi­ Senate. stocks have declined, many of them as ness would boom; there would be no re­ Therefore. we have only the Army and. much as 50 percent. Billions of dollars cession sufficient to prevent the raising the Veterans' Bureau to fall back on. In of paper values have disappeared. If the of revenue which would, at all events, my judgment, we are not going to save statements of our friends on the other balance the Federal budget. It seemed $4,ooo,or.o.ooo or $5,ooo,ooo,ooo out of side are accurate, if we are. to have con­ to me that he was taking in a great deal either one of those appropriation bills," tinued high profits for another 14 of territory. I am utterly at a loss to or even both of them put together. The months, why is it that the investors of know why, with billions upon billions of Navy bill. has been reported with a cut the country do not realize it? Based dollars in the banks of the country, with of $377,000,000; and it would be very un­ upon such a supposition, stocks can be billions of dollars in the portfolios of the usual if a considerable amount of that bought on the New York stock exchange insurance companies, with stocks away sum does not find its way back into the today which would yield a return of 8 or down, and with dividends on stocks at bill before it finally passes both branches 10 percent on investment, assuming that present away up, the public is reluctant of the Congress. the present high level of profits will con­ tinue for another 14 months. to invest. Certainly the investors do not The Senator from Texas [Mr: CoN­ When we boil the situation dow.a, what share the optimism of the Senator from NALLY] and I served in the House to­ do we make of it? The proposed tax re­ Ohio. We can examine the big-board gether some years ago. I do not want to duction and debt reduction are predi­ Stock Exchange list and read the divi­ reflect on the House at all, but there was cated upon two things: First, that there dends and then look at the prices at a policy over there then, which still ex­ is to be an ultimate reduction in taxes of which stocks are selling, and, assuming ists, that when they are ready to make a between $4,500,\lOO,OOO and $5,000,000,- that the dividends hold up, we could cut in an appropriation bill they make 000; second, that income coming into the make scores of investments today, based it as much as they think it ought to be, Treasury from large profits will continue on the dividends and the present prices, or perhaps a little beyond, and each for another 14 months. which would yield 8, 10, 12, or, in some Member of the House says "The Senate The latter of those two proposh ions is cases, 15 percent on the investment. Yet has to review it anyhow, and when it gets in the realm of pure speculation. It may no one buys. The great moneyed inter­ over there they will look into it again, happen. It may be that revenues will be ests of the country, which quite often and if the agency or department deserves even greater than we estimate. How­ find themselves in the majority in the the extra money the Senate will put it ever, 14 months in this war-torn and party across the aisle, do not share this back into the bill." sick world is n. long time. As conditions optimism. We are here to chart a course So these :figures which I have read this now exist, looking ahead 14 months is for our Government, which ought to be morning are the maximum amount of like looking ahead 10 ;ears in the early predicated on proof, not on the uncer­ cuts, the maximum suggested even by twenties or in the early 1900's. The whole tainties that may arise at home and the committee. The House must yet act world is in turmoil. We have not settled abroad. In the estimate which I have on them, and then they must run the down from this terrific war, and there- read, to point to some of t):lose uncer- gantlet of the Senate Appropriations XCIII--365 5784 CONGRESSIONAL RECORD-SENATE MAY 26 Committee, the Senate itself, and then of what was promised a few months ago, yond what you promise the people, that a conference of the two Houses. and notwithstanding the fact that the will be all to the .good; but if you fall I repeat, that up to this good hour, proposed tax reductions are predicated far short of what you promise, you will for Labor and Federal Security the re­ on the assumption that good times will be a proper subject of ridicule for not duction has ~een only $103,000,000; for prevail for the next 14 months, I know being able to measure your own prowess the Treasury and Post Office Depart­ that my good friend the Senator from in the field of reduction of Government ments, $56,000,000; for the Interior De­ Ohio is not thinking in terms of politics expenditures." · partment, $134,000,000; State, Justice, and, heaven knows, he is not thinking in But, Mr. President, the pressure was and Commerce, $160,000,000; Navy De­ terms of the next national election, be­ so strong from the other side of the partment, $377,000,000; Department of cause all of us here know that he will Chamber that the Senate set the ceiling Agriculture, $375,000,000; making a total not be a candidate then, even if they at $4,500,000,000 anyhow, just as Sena­ of $1,205,000,000 as to bills . on which draft him and seek to compel him to run, tors on the other side of the aisle are neither the House nor the Senate has and all of us know that there is no poli­ talking now. Mr. President, is there acted and as to which the percentage of tics at all in putting through a tax bill one Member of either branch of Con­ restoration will be considerable. before we have the appropriations bills gress who, from the point of view of the Yet in the face of all that we speak of on which to predicate the tax-reduction actual reduction of expenditures, will reducing taxes by three and one-fourth bill. now rise and say that we shall save, from billions of dollars, and we say we shall Mr. CONNALLY. Mr. President, will a reduction of expenditures, $4,500,000,- pay on the national debt $2 ,600,000,000, the Senator yield? · 000? · The estimates were totally hay­ making approximately $6,000,00li,OOO. Mr. TYDINGS. I yield. wire then; they were totally exaggerated. When asked, "Where are the cuts to jus­ Mr. CONNALLY. The Senator has But, now, Senators are proceeding with tify this action?" the reply is made, "We been speaking of politics, and let me sug­ something which means a great qeal have estimates; we have beliefs; we have gest that he is getting· on somewhat more. The measure previously before suppositions that the income of the Gov:­ touchy ground. · · us was only an idle resolution, whereas ernment will continue high for the next Mr. TYDINGS. I have found that the measure now before us means the 14 months, to the same extent it has ex­ everything here is contagious. Perhaps financial integrity of the United States­ isted in the first part of 1947, and that I have been taking too seriously the posi­ Government. will cause more money to come into the tion of our good friend across the aisle I remember that after World War I, Treasury than we had expected, and thus with respect to Republican tax cuts, the Government bonds went down to 80, we will have enough." That notwith­ which have been only. about 25 percent 81, or 82. So far·they are up; but, as the standing the fact that we have not cut of what was promised. Senator from Georgia pointed out the appropriations sufficiently to make the Mr. President, there is just one course other day, in our present financing on tax reduction to enable us to pay this that the Senate should adopt in this the basis of short-term notes and what­ amount on the national debt. matter, and every Member of the Senate not, in excess of $50,000,000,000 of Gov­ The Senato'r from Ohio-and I am knows in his heart what it is: We should ernment obligations are floating around, sorry he is not in the Chamber at. this do what is best for the welfare of our and they might be dumped on the Treas­ time-said in his radio address last country. Taxes cannot properly be re­ ury without notice. night-and I had one of the best laughs duced now on the basis of future cuts in Now I yield to the Senator from South on my way down in the train, as I read expenditures. There is not a Member of Carolina, but I ask him not to be long, the report of his address, that I have had this body or of the body at the other please. for a long while-that the Democrats end of the Capitol who could do that. Mr. MAYBANK. Mr. President, I wish were playing politics with tax reduction. I make the prophecy with respect· to to commend the Senator from Maryland "The Democrats," said my good friend, the nine appropriation bills which -have for his statements regarding the na­ the industrious and able Senator from already been passed by the House of tional income and his references to the Ohio, "are playing politics with tax re­ Representatives-leaving out the three declines which have occurred in the stock duction." to come-that when they finally pass market. I should like to say to him that My fellow Senators, it is admitted on both Houses of Congress, the total cuts the figures at home and from the Bureau the floor that in 9 of the major 12 will not amount to $1 ,000,000,000. In of Internal Revenue show a continuous appropriation bills, even if every cut making that statement, I leave out of ac­ falling off each month. There have been recommended by the Appropriations count the extra appropriations which marked declines in the commodity mar­ Committee of the House holds fast, the we have made for aid and relief to Gree.ce ket. For instance, cotton sold at 35 or 40 cuts amount to only $1,205,000,000; and and Turkey; I make the capitulation cents last year, but for next year's de­ there is not a Senator on this floor who without taking them into account. I livery is selling at 30 cents; and lumber will not concede that that amount of cut say that the total expenditure cuts will has declined in price, and potatoes have will not hold when it runs the gantlet not be $1,000,000,000. There is not a declined. The commodities in the South of the Senate Appropriations Committee thing to support prudence in this mat­ now are bringing in only the support and the Senate itself. Yet we hear the ter except the expectation, which is a prices, and today the Government is hav­ cry of "politics." I know that the Sen­ very doubtful one, that good times will ing to take in the potato crop. · ator is not a candidate for the Presi­ continue for the next 14 months, and dency, and I know he would be the last that there will be such an avalanche of Mr. TYDINGS. Mr. President, I do one-- revenues into the Treasury that not­ not wish to be a calamity howler, but let The PRESIDING OFFICER ricks to the build­ no less than folly to say that Government a small matter, even though indebted­ ing of a more powerful and stronger expenses can be reduced $6,000,000,000 or ness in lesser amounts has resulted. in America. For that reason, I say, some even $4,500,000,000 at this time without bankrupting nation after nation over the of the Federal savings should be allowed materially reducing the services which face of the globe. to remain in the savings of the people the people of this Nation demand and The cost of the Federal Government to be used for productive purposes and have a right to receive. and the burden tt places upon the people to contribute to an expanding economy Assuming, however, that Government ·of our Nation does not even appear to for the Nation. receipts will total $42,000,000,000 and be of minor con-cern to this group. The And now we come to the group which budget requests are reduced $2 ,500,000,- $37,500,000,000 Presidential budget is believes in both cutting governmental 000 to a total of $35,000,000,000, there accepted by them as fair and reasonable, costs and in effecting tax reduction, but would .be left $7,000,000,000 to apply to in spite of the fact that the highest who argue that we will be in a better new appropriations, such as Federal aid previous peacetime expenditures were position to determine the amount of tax to education, debt reduction, and tax only $9,000,000,000. Prior to 1932 the reduction after June 10. reduction. highest annual peacetime expenditure by I see nothing w be gained by further I believe that an estimate of $7,000,- the Federal Government was only delay. I do not believe that the infor­ 000,000 for these purposes is not exag­ $4,000,000,000. For example, in 1940 the mation we will have then will differ ma­ gerated, but rather a conservative esti­ Department of Commerce spent about terially from what is before us now. mate. Such being the case, it is possible $75,000,000, which was $43,000,000 more What has happened up to now in the to enact a tax reduction bill at this time than was expended by Herbert Hoover in cutting of budget requests provides a without jeopardizing national security. his biggest spending year as Secretary of blueprint of what is to come. We know I do believe the bill should be amended Commerce. Mr. Hoover's expenditure that we shall make good the promises so as to provide a greater amount of this was branded by the late President Roose­ to wring out the water and hack away reduction to those who need it most and velt in the ampaign of 1932 as so high the deadwood. CONGRESSIONAL RECORD-SENATE 5787 Certainly, I find it impossible to be­ captioned "Tax relief needn't await To my colleagues I offer a very old but lieve that any Member of the Senate budget cut" said in part: still sound slogan: "Let us not put oft' doubts for a moment that the present To pave the way for tax. reduction, the until tomorrow what we can do today." Congress is cutting and will continue to House voted to slash $6,000,000,000 from Mr. Mr. MILLIKIN. Mr. President, out of cut deeply into the tangled jungle of Truman's new top-heavy budget. The Sen­ order I send to the desk and ask unani­ bureaucratic spending. ate cut it by four and a half bill1ons. mous consent for immediate considera­ I cannot foresee any appreciable error It ought to have been possible to get to­ tion of a technical amendment to the resulting from acting now. But even if gether long before this on a compromise pending bill. I believe there is no objec­ figure. The protesting Senators, as has been there should be such error, it would be said, are right in opposing further delay. tion to the amendment from the other offset by the great advantage of assur­ But they are wrong in withholding their side. ing the American people that its Con­ support of any tax relief at this session until -Mr. GEORGE. Mr. President, there is gress ·is acting without delay to redeem they are certain just how much the swollen no objection to the proposed amendment. promises of economy and tax reductions Federal budget- is to be reduced, down to The PRESIDING OFFICER forc Amount ol Saved per Percent of personal exemp· spendable $1,000 of spmdahla the debt now, for the debt we now carry policy in America rests upon the solvency income spenclahle income no less than the taxes we have already of United States bonds. You tamper tion saved income saved contributed constitutes payment for the with the solvency of these bonds and you war. tamper with every life insurance policy $1,000 _____ ------0 0 0 that is outstanding. $1.200 _____ ------$11.40 $9.50 .95 Let me return to the advice of Secre­ $1, 500 ____ ------28. 50 19.00 1. 90 tary Mellon: Corporations and other associations $1,800 ______------45. 60 25. 36 2. 52 have $23,000,000,000 of Government $2,000 ______------57.00 28.t0 2.85 THE NATIONAL DEBT IS A MORTGAGE ON THE $2,500 ______------57.00 22. 80 2. 28 NATIONAL WEALTH bonds. State and local governments $3,000 _____ ------76.00 25. 33 2. 54 have six and one-half billion dollars of $4,000 ______-- 117. 80 29. 45 2.94 The nation which does not follow a policy $5,000 ______------159. 60 "31. 92 3.19 of paying its debts- Government bonds, and Federal agencies $6,000 ______------209.00 34. 83 3.49 and trust funds have thirty-one and one­ $7.000 ______---- 258.40 36. 91 3.69 ! commend this to the attention of all half billion dollars of Government bonds. $~ ,000 ____ ------318. 40 39. 80 3. 94 Senators- $9,000 _____ ------372.40 41.37 4.14 Let us now leok at the picture with $10,000 ______-- 437. 00 43.70 4.37 The nation which does not follow a policy respect to bank holdings. Commercial $11,000 _------501. 60 45.60 4.56 of paying its debts, but allows them to ac­ $1 2,000 ______----- 573. 80 47.81 4. 78 cumulate, may be compared to an individual banks own seventy and one-half billion $1 3,(100 ______---- 646.00 49.61! 4. 97 dollars of Government bonds. Every $14,000 ____------72i. 70 51.97 1 5.20 who follows a similar course. It is a sign $ 15,000 ____ ------809.40 53.93 1 5. 40 of debility and denotes the absence of es­ person who has any knowledge at all $ 20,000. ------1, 278.70 63. 93 6.40 sential vigor and foresight. The public debt about finance knows that these bonds $'25,000 o,ooo ______------1, 816.00 72.64 7. 27 is a mortgage or lien upon national wealth, $3 2, 394. 00 79. 80 7.98 held by commercial banks are the crea­ $40,000 ____ ------3, 619. 50 90.48 9. 05 and unless the country pursues a policy of tors of money, they are the creators of $50,000 _____. _------4, 959. 00 99.18 9.92 paying off this mortgage, it is bound to be­ $60,000_ : ______-- 6,378. 00 106. 30 10.63 demand, they are the bases of inflation, '70,()()1) ______come more and more burdensome as time $ ,()()() ______7, 854.00 112. 23 11.22 ·goes on. Debt reduction, in fact, is the best and if there is any one thing that the $SO 9, 387. 90 117. 34 11.73 Government should do it is to concen­ $90,000 __ __------10, 608.65 117.87 11.79 method of bringing about tax reduction. $100,000 _____ ------11, 844. 12 118. 44 11.85 Aside from gradually refunding at lower rates trate all its authority and all its efforts $150,000. ____ ------18,182.52 121. 21 12.13 of interest, it is the only method of reducing upon the payment as rapidly as possible $200, 000 ______---- 24,593. 60 122.46 12.29 the peavy annual interest charges. of these bonds held by commercial banks $2 50,000 __ ___ ------31, 075.92 124.30 12.43 $3 00,000. ------37,559.67 125. 19 12.52 and trust companies. Other bonds can 400,000 ______----- 46,791. (l(l 116.97 11.69 Secretary Mellon was alarmed at the $500,000 ______- be more safely carried, but in the in­ $ 55, 891. uo 111.78 11.18 t_hought of interest . charges running $ 750,000 ___ _------78,641.00 104.85 10.49 about $250,000,000 a y"ear. Now, we have terest of reducing the cost of living, the $ 1,000,000. ------101,391.00 101.39 10.14 holdings of .commercial banks should be $2,000,000.------192,391.00 91.19 9.62 interest charges running at the rate of reduced. $5,000,000_ ------450,000.00 90.00 8. 55 $5,000,000,000 a year; which is more than The Federal Reserve banks own the entire cost of Corigress, of the White twenty-two and one-half billion dollars Mr. O'MAHONEY. I wish to call the House, of the Library of Congress, all of Government bonds. attention of Senators who are listening the Federal courts, and most of the civil to this talk that on the first thousand functions of the Government. But, Mr. In other words, there is a total of $93,000,000,000 which is so held that it dollars of income the little people of the President, do we understand that the constitutes a constant threat of infla­ land are given a saving of $9.50. The whole capitalistic system stands now $10,000 income man receives, not a sav­ upon the solvency of the United States tion. Mr. President, if we add together the ing of $9.50 per thousand dollars, but of of America? Unless we preserve the sol­ bonds held by the commercial banks, by $43.50 per thousand dollars. vency of this Government, capitalism will the mutual savings banks, by the Fed-­ The PRESIDING OFFICER. The time perish from the earth. I undertake to eral Reserve banks, and by the insurance of the Senator from Wyoming has ex­ show that all business and industry relies companies, we find that 57% percent of pired. now upon a fiscal policy that will place all the bonds the United States has debt retirement first. Mr. O'MAHONEY. Mr. President, will issued are being held by such institu­ the Senator from Georgia yield me fur­ As to the outstanding debt, the actual tions. Yet here it is lightly said, "Forget figure as of March 31, 1947, according to ther time? the bonds. Let that matter pass. We Mr. GEORGE. I yield 5 minutes more the report which I requested from the will reduce the taxes." office of the Secretary of the Treasury, to the Senator from Wyoming. was $256,000,000,000. Of this amount, TAX BILL FAVORS VERY WEALTHY Mr. O'MAHONEY. If we go to . the $65,000,000,000 was held by individuals, Mr. President, I undertake to say that $15,000· a year income, we find that the including partnerships and personal the tax reduction which is proposed here saving per thousand dollars under the trusts. Of this latter amount some $50,- is a reduction which is designed to lower pending tax bill is upped again to $53.93. 000,000,000 was represented byE, F, and the tax burden on the very wealthy at When we come to $100,000 income per G bonds. Every one of those bonds is the expense of those at the bottom of the year, the saving under the pending bill a "demand payment" upon the Treasury economic scale. I have before me a table is $118.44 per thousand dollars of income. of the United States. Everyone of those based upon the table placed in the REc­ Mr. President, why should we under­ bonds may be presented at any time and ORD the other day by the chairman of take to pass a tax· bill which will save payment must be made at the face value. the Finance Committee in which he $118 per thousand dollars for the income The time will come, as the result of the showed the amount of spendable income recipient in the $100,000 bracket ami policy which the majority is initiating for married persons with no dependents give only $9.50 per thousand to the little here, when ~egislation will be introduced in the various income groups, and I fellow at the bottom of the scale? in the Congress of the United States to have added two columns, one showing I' now turn to page 37 of the report permit those bonds to be sold at a dis­ · the amount of money saved for every filed by the Finance Committee, and find count, and then the veterans of World $1,000 of income, and the other the per­ this very interesting information. The War II will be forced to lose on their in­ centage of spendable income which is total number of taxpayers in the United vestment, as did the veterans of World saved by this bill. I ask unanimous con- States receiving less than $5,000 a fear is 5794 CONGRESSIONAL RECORD-SENATE MAY 26 47,723,103. They constitute 96.08 per­ The late distinguished Senator Lodge Mr. LoDGE. I have no doubt the matter wlll cent of all the taxpayers in the United of Massachusetts said: be arranged as it was in the case of the suf­ frage amendment. · States. Mr. President, I had intended when I called Mr. SMITH of Georgia. I have no doubt any The taxpayers who are receiving over up the treaty this morning to say a word such arrangement will be carried out on this $5 000 a year number 1,948,060. They in regard to pairs. On a question of such side. constitute 3.92 percent of all the taxpay­ great moment as the Treaty of Peace I think Mr. LoDGE. I merely wanted to make the ers. To this 3.92 percent to this mi­ no one can wish that it should turn on any suggestion. loss of votes because of the absence of Sena­ nority, 1,948,060 high-income recipients, tors or because of any juggling of pairs. Mr. SMITH of Georgia. I am sure we will out of a total of 49 ,671,163 taxpayers, th~ be glad to see that the final action represents Finance Committee bill makes a gift of Think of it, Mr. President. In 1920 the thought of the Senate. 36 percent o1 all of the reduction which the United States Senate was discussing Mr. LoDGE. Absolutely. is granted. Less than 4 percent of the the treaty of peace, one of the greatest · Here we have an interesting and cor­ taxpayers get 36 percent of the benefit. issues that had ever been before this dial colloquy between Republicans and Mr. President, if we were· to take the body in the experience of any Senator Democrats, which can well be placed in little group which receives between who was serving at that time. the. category of true statesmanship when $4,000 and $5,000 a year, we find, accord­ Senator Lodge continued: it comes to voting upon questions such ing to the report of the Finance Com­ I think that we should take the same as we have before the Senate today. It mittee, that they constitute 1,909,500 per­ course that was adopted with reference to demonstrates the ou+jstanding character sons, almost the same number as those the suffrage amendment- and bigness of Senators in those days in all the brackets from $5,000 to $1,000,­ Another tremendous issue before the upon a question of human relationships. oor and over a year, those above the United States Senate and the country­ Mr. President, in the early days of my $5,000 line of demarkation. when the Senate, with the traditional experience in the Senate an incident oc­ To the 1,948,000 above $5,000 a year it character for which it was noted, agreed curred which struck me forcibly. I had is proposed that there shall be a tax re­ at that time not to juggle pairs and to been a Member of the Senate for ap­ duction of 36 percent. To the 1,909,000 have an honest expression of Senators proximately 12 months, when a very close receiving between $4,000 and $5,000 a in the event that any Senator should friend of mine passed away in Illinois. · year it is proposed that there shall be a be absent because of personal illness or We were debating the Hatch bill. It will tax reduction of only 6.03 percent. because there was illness in his family. be recalled that at one time we almost Are we speaking of equality of obliga­ I think that we should take the same defeated it, by a vote of 44 to 46. I was tion under the law? Are we speaking of course that was adopted with reference to against the Hatch bill at that time, and equality of benefits? Are we speaking the suffrage amendment, when there was an still am, so far as that is concerned. But of a solvent government when we under­ understanding on both sides that a pair I did not wish to leave, after participat­ take to say, as we shall say if we vote should be arranged for any Senator who was ing actively in the debate, unless I could against the motion of the Senator from absent on account of personal illness or on obtain a live pair. · Georgia, that it is so important to grant account of illness or death in his family. From whom do Senators think I ob­ these reductions of taxes to those who I merely mention this now, because I think the whips on both sides who are entrusted tained that pair? From the late dis­ are receiving more than .$5,000 a year with this matter should see to it that some tinguished, lovable Charles McNary, one that we shall not be willing to wait until such arrangement is made. I think that iS of the greatest leaders ever to serve in the lOth of June to find out how much only fair and proper. the Senate. I went to Senator McNary the Government of the United States will and said, "Senator, a close friend of mine· have to spend to maintain the capitalistic Those words were spoken by the late has suddenly passed a way. I should like system? Senator Lodge, of Massachusetts. to obtain a- live pair. I do not want to I have no hesitation in saying that if I read further from the RECORD of that run out on my colleagues, because I we pass this bill we shall be doing more date: have been very active in this debate." to jeopardize the private economy than Mr. WILLIAMS. Mr. ·President, I wish to ask Senator McNary said to me, "Scott, your anything Hitler and Mussolini ever did the Senator a question. Of course, the Sena- ' place is at the side of your dead friend or Stalin even thought of doing. tor means equal pairs upon the question of in Illinois. You go and attend the fu­ the adoption of reservations and amend­ Mr. LUCAS. Mr. President, will the ments? neral, and I will give you a live pair." Senator from Georgia yield to me for 10 Mr. LoDGE. Certainly, and double pairs Mr. President, that incident endeared minutes? upon the question of ratification. me forever to Charles McNary. It dem­ Mr. GEORGE. I yield 10 minutes to Mr. WILLIAMS. When it comes to the final onstrated character and bigness, so nec­ the Senator from Illinois. question of ratification pairs would be ar­ essary for sound statesmanship. It was Mr. LUCAS. Mr. President, it is my ranged on a basis of 2 to 1. a senatorial courtesy that I shall never understanding that the Senate has never Mr. LoDGE. They would be arranged upon a forget. Such courtesy and chivalry laid down any written rule regarding basis of 2 to 1, of course. That is the should again find a place in the Senate. pairs upon legislation to be voted upon understanding I wish to have. I merely men­ Mr. President, today there are two dis­ in this body. It is and always has been tion it now, because I think it is important tinguished Senators who sit on this side that that should be understood. None of us a personal matter between individual wish to reach a decision of this question by of the aisle who are ill. The Senator Senators. Most of the past records of any accident. from Louisiana [Mr. OVERTON] was com­ the United States Senate clearly indi­ Mr. WILLIAMS. I suggest that the Senator pelled by doctor's orders to go to Arizona cate that the pairing of Senators upon ask unanimous consent to the effect he has for the benefit of his health. Mr. Presi­ important measures has been agreed indicated. dent, the minority are entirely helpless upon through senatorial courtesy which Mr. LoDGE. Pairs are outside the rules, and in getting a pair from some Member on held high the tradition and dignity of I do not think I have any right to ask unan­ the other side of the aisle for that out­ what many of us like to call the greatest imous consent. I think all I can do is to standing man, a man who is sick. We are deliberative. body in the world. In the state the understanding which I hope will told, ''Yes; we will pair with you provid­ old days we found Senators exercising be arrived at. ing the leadership releases us." with charity and tolerance their rights of Mr. KING. Mr. President. I have sent word I went to the able Senator from Ne­ pairing. That was particularly true to the Senator from Michigan (Mr. Hitch­ vada [Mr. MALONE] in connection with when a Senator was ill or when there cock], and I expect him here in a moment. the matter. I knew that he was a close was serious illness in his family. If the Senator cares to present the matter friend of the Senator from Louisiana. again, I suggest that he do so when the Sen­ Let me turn to the CONGRESSIONAL ator from Nebraska returns. [Mr. OVERTON], l said to him, "Will you RECORD of February 16, 1920, and ~n­ Mr. LoDGE. Pairs are wholly outside the pair with the Senator from Louisiana on lighten Members of the present-day Sen­ rules, as I have stated. Pairing is a matter. this motion?" He replied, "I should be ate as t'o what was done at that time in between individual Senators. glad to pair with him, because he is one connection with one of the most impor­ Mr. KING. I appreciate that fact, but I of the finest men in the Senate; but you tant votes that any Senator had cast in should be glad to see some satisfactory ar- will have to see the whip, the Senator this body up to that time. rangement made. • from Nebraska [Mr. WHERRY]. If he will 1947 CONGRESSIONAL RECORD-SENATE 5795 release me, I will pair with t he Senator year beginning the 1st of july and run­ arid extreme depression in order to pre;. from Louisiana." ning until july 1, 1948? vent the realization of the income figures There is another Senator on this side Tile making of a budget is always an which have been placed before the Sen­ . of the aisle who is ill, that great leader uncertain process, because no one can ate. Of course, a budget may always from Tennessee [Mr. McKELLAR], who predict ahead for 18 months. We have to be upset in any year if there is a sudden has served longer in the Senate than any take the best figures we can obtain; we and severe depression. But the admin­ living man. He is now in the hospital, have to take figures from the actuaries; istration certainly does not expect that. stricken only day before yesterday. He we have to make various assumptions. It was testified that they look forward does not want to leave the hospital in his We have always done that, every year. to no depression of any kind. They testi­ present condition. His doctors oppose The Democrats are greatly concerned fied that in their opinion there would his leaving. One would believe that un­ that in some way we are estimating fig­ not even be a recession. Certainly we der such dire circumstances we might get ures which do not exist and, therefore, are justified in making that assumption, a pair for him. the budget which we in effect are pre­ based upon receipts. Even if we fall The PRESIDENT pro tempore. The senting here may possibly not be bal­ short, Mr. President, a billion dollars in time of the Senator has expired. anced. receipts and reach a total of $4,500,000,- Mr. LUCAS. May I have two addi­ Mr. President, for 15 years the Demo­ 000, we still can make this tax reduction tional minutes? crats have failed to balance the budget and have a surplus of over $3,000,000,- Mr. GEORGE. My time is getting a ·in any year. Not only that, but I do not 000 to apply on the public debt. little short. I will yield one additional remember a time when they ever pre­ Those, roughly speaking, are the minute. sented a balanced budget to the Con­ figures. Mr. LUCAS. There is not a chance. ·gress of the United States. I do notre­ Mr. President, it seems to me very clear They will not recognize the fact that this member a time when they ever pro­ that tax reduction is a necessary end in man, ill as he is, is entitled to a pair by vided suffi cient taxes to meet the ex­ itself, to bring about a stable economy all decency and courtesy, so far as the penditures which they contemplated. in the United States and to enable us to unwritten rules of the Senate are con­ Certainly we have not had in 15 years a maintain an economic activity which cerned. bal::=mced budget, and we have alw·ays means employment and full prosperity. Mr. BARKLEY. Will the Senator had some difficulty in estimating, which Think of the burden of taxation. It is yield? we have at the present time and always made up of approximately $40,000,000,- Mr. LUCAS. I yield. will have. We have made estimates, and 000 of taxes by the Federal Government Mr. BARKLEY. Does the Senator re­ the figures are approximately these: and approximately $10,000,000,000 of call any time during the period when we The estimated receipts on which out State and local taxes; a total of approxi­ were in the emergency when any such budget is based are $41,400,000,000. mately $50,000,000,000, bearing down on attitude was taken on this side toward Those estimates were made by the Joint the people of the United States and dis­ requests for a pair on the part of any Committee on Internal Revenue Tax­ couraging and stifling the economy of the Senator on the other side? ation, because the Treasury refuses to United States. It does not particularly Mr. LUCAS. I have never known of it. make any estimate more recent than affect us when things are on the way I made inquiry today on that very point the one of 8 months ago when conditions up; but the moment they start down we in order to ascertain whether we had were very different. Those figures are feel the crushing burden which is im­ taken the same position, but I could find based on conservative estimates. They posed. It is about 30 percent of the na­ no sucti position as that which is now be­ are estimating a national income of tional income. That means that en the ing taken by the majority upon practi­ $6,000,000,000 less than the rate at which average, directly and indirectly, we are cally every major. or minor question we are now operating, so they allow for paying taxes in such an amount that we which arises. Here is a matter of post­ the tapering off of sales and activity. work 3 days out of every 10 for the ponement' of a measure for some 20 days, There may be, perhaps, an extraordinary United States Government and ·7 days and we cannot get a pair in connection condition if we continue going at the for ourselves. I do not know how high with it. But the late Senator Lodge was same rate as today. The budget re­ this tax burden can go and still permit a .willing to give pairs when the Treaty of ceipts represent $42,800,000,000. We will free economy to be maintained such as Versailles was being considered by the assume the amount to be $41,400,000,000. that upon which we rely in the United Senate. The estimate of expenses is $37,500,000,- States. The PRESIDENT pro tempore. The 000, or approximately $4,000,000,000 less Obviously, Mr. President, taxation Senator's time has expired. 'ro whom do than the estimated receipts, without any cannot amount to 100 percent of the the Senators in charge of the floor yield? budget cuts whatsoever. If we cut the national income, or we shall have no free Mr. MILLIKIN. Mr. President, I yield budget $4,500,000,000, as Senators say economy left. One hundred percent to the distinguished Senator from Ohio they wish to do, we will have a total ex­ taxation means the complete socializa­ [Mr. TAFT] for 30 minutes. pense of $33,000,000 ,000 and will have a tion of all the activities of the Nation. The PRESIDENT pro tempore. The surplus of $8,500,000,000. There is a point at which taxation be­ Senator from Ohio is recognized for 30 What does the bill propose to do? It comes so high that we can no longer pre­ minutes. proposes to take $3,200,000,000 of that vent it from destroying our present eco­ Mr. TAFT. Mr. President, regarding sum and ·apply it to the reduction of nomic system. A burden of taxation as the question of pairs, I have been here taxes. It proposes, under those circum­ heavy as 30 percent of the national in­ for a good many years and I have· never stances, that we leave more than $5,000,- come discourages every person and seen any acknowledged plan or rule re­ 000,000 for contingencies and for appli-· every industry, and, sooner or later, in­ garding pairs. I should say that today cation to the public debt. dustries are unable to do what they are if a sufficient number of Republicans It is suggested that those figures may supposed to do, and so the Government to change the situation were too ill to not be correct; that we may not get $41,- has to take them over. We almost attend the Senate, we could not get a 400,000,000. I have already stated that reached that point in the case of the rail­ pair from the Democrats for love or .we have allowed for a considerable re­ roads during the war ·and during the money. They have never given us pairs cession. Much of the revenue is already depression. under those ci:r:cumstances, and they on the books. The corporation taxes for Mr. President, once the Government never will. The Senator goes back tO this year and a large part of the corpora­ takes over industries, it has to distribute 1920 in order to find an instance in which tion tax.es for next year, reflecting the the burden among the people. The very the question has ever before been raised. income for the previous year, are already tax burden itself is a discouragement to There is before the Senate a question set and cannot be reduced. Even if we the continuation of the free-enterprise which is essentially and in effect a ques­ should have a depression, there is usu­ system, and a heavy tax burden gradu­ tion of budgeting revenue. It is a ques­ ally a very slow recession; and in order ally forces the Government into a greater tion Gf degree. The actual question, so to make any substantial difference in the and greater degree of socialization, until far as we·can determine it is, What will figures the national income would have finally complete socialization is reached. be the receipts of the Government and to go down to approximately $150,000,- If I wanted to socialize the United States, what will be its expenditures in the fiscal 000,000. We would have to have a sudden I think the easiest way to do it would be 5796 CONGRESSIONAL RECORD-SENATE MAY 26 gradually to increase Government activi­ in addition, during the remainder of the Mr. President, I ask unanimous con­ ties and taxation until the Government year, is largely taken by the Govern­ sent to have inserted at this point in the itself was operating all the industries ment in the form of income taxes. The RECORD a table which shows that the and all the affairs of the Nation. But if result is that they are not interested in taxes which are collected for the unem­ that process were followed indefinitely, doing any more work and in making any ployment trust fund and for the Federal with a constant increase in taxation, more income in that year because the old-age and survivors' insurance fund, finally the Government itself could not Government will take anywhere from 60 the veterans' life insurance funds, and survive. I do not know where that point percent to 85 percent of whatever else the other funds of that nature now · is. Perhaps it is when taxation reaches they may earrl. amount to $5 ,587,298,291 altogether, 50 percent of the national income. But An additional result is that people re­ whereas the expenditures from those I say that when taxation reaches 30 per­ fuse to invest money in risk enterprises; funds amount to only $2 ,780 ,473,038, cent of the national income, we are for when income taxes are so high in­ leaving net accumulations of $2 ,806,825,- reaching a dangerous point, and we vestors take the position that it is much 253 in the trust accounts. The result should be sincerely and seriously con­ better for them to receive from 1 per­ is that even when the budget is balanced, cerned with the reduction of the taxes cent to 1% percent on tax-exempt mu­ approximately $2,800,000 ,000 is taken paid by the people of the United States, nicipal bonds, rather than to invest their from the people's savings and is put who now have a tax burden of $40 ,000,- money in new enterprises in which their away, not returned to them, and thus 000,000 a year as apparently a perma­ chances of receiving an income may be their purchasing power is reduced to nent burden on the economy we are try­ only 50-f>O. So they are not willing to that extent. ing to maintain. invest their funds in such enterprises, There being no objection, the table Furthermore, Mr. President, such a tax because they know that if they gain as a result of investing their money in risk was ordered to be printed in the REcoRD, burden is a crushing load on the individ­ as follows: uals in the lower-income groups. As enterprises the Government will take the Senator from Wyoming [Mr. the greater proportion of what they Trust account receipts and expenditures O'MAHONEY] pointed- out, there are ap­ gain, but if they lose they will lose their RECEiPTS own money. So they find that it is bet­ proximately 1,000,000 persons in the Unemployment trust fund: 1948 United States who have an income of ter for them to accept a low income from Deposits by St"ates ____ _ $1,124,000,000 less than $1,000 a year. Nevertheless, municipal bonds or similar securities, Deposits by Railroad Re­ the tax burdens are heavy on· those who rather than to attempt to make moriey tirement Board-----­ 280,300,000 have small incomes. For example, a. by investing in new enterprises. How­ Transfers from general school teacher who receives $1,000· a year ever, all of us realize that the establish­ and special accounts_ 9,373,778 must pay an income tax of $90. It cer­ ment of new enterprises is necessary to Federal old-age and survi:­ tainly is difiicult enough to live on $1,000 the maintenance of our economy; it is v<>rs' insurance: necessary if we are to maintain full em­ Net appropriation from a year under present circumstances in general accounts ____ _ 1,987.~00,000 the United States, even without having ployment in view ·of the constantly im­ Interest on investments_ 190,300,000 to pay any tax. A married couple with proved techniques and labor-saving Veterans' life-insurance an income of $1,500 must pay $90 in in­ devices. Under present-day . standards funds : come taxes. A.single woman with an in­ and techniques it is essential that new Premiumsceipts ______and other re~ _ come of $1,500 must pay an income tax enterprises, with their additional hun­ 639,520,000 dreds of thousands of employees, be con­ Transfers from general of $190. A married couple with two chil­ :fund ______53,302,000 dren, and having an income of $3,000, tinually established. Obviously it is necessary that the investment of money Federal employees• retire­ must pay an income tax of $190. A mar­ ment funds: ried couple with no dependents, and hav­ in them be encouraged. Of course, it Deductions from sala- ing a gross income of $5,000, must pay is easy enough to persuade Jnvestors to ries, etc ______289,891, 351 invest their money in bonds; but it is Transfers from general almost $800 in income taxes. Certainly accounts ______taxation at those rates constitutes a tre­ essential that investors be persuaded to 246,445,000 mendously severe burden on the people invest their money in risk enterprises. Railroad retirement account: However, under the present tax system, Interest on investments_ 37,000,000 at the bottom of the income seal~. Transfers from general that is not done. So,· Mr. President, I accounts ______Moreover, Mr. President, to a certain say that the reduction of taxes is a de­ 481,219,000 extent the taxpayers bear the burden, sirable end in itself and is essential if Other trust accounts: and to a certain extent they do not bear Transfersaccounts from______general _ it. To a certain extent, employers, see­ we are to maintain the prosperity of the 8,775,000 United States and the full employment Miscellaneous receipts __ 240,072,162 ing how extremely difficult it is for per­ in which we are interested. No one sons in the lower income groups to live Total receipts, trust could be more concerned about that account s ______on their net incomes, proceed to increase than I am. 5, 587,298, 291 wages and salaries, in order to take care I am somewhat amused to hear the of that problem, and the result is an Democrats protest about the necessity of EXPENDITURES increase in the costs of manufacturing reducing the national debt. The na­ Unemployment trust fund __ 749,000, 000 and other enterprises. Such increased tional debt was $22,000,000,000 when the Federal old-age and survi­ costs bring about increased prices, and Democrats came into office, and now that vors' fuald------~ -­ 543,000, 000 increased prices lead to inflation. In they have been in office it is $260,000,- Veterans' life-insurance other words, we pay, by inflation, for the funds------358,950, 088 000,000. The Democr~ts have never be­ increases in wages and salaries which Federal employees' retire- fore shown any concern about the size ment funds ______167,610,349 sooner or later result from increased of the national debt or about increasing Railroad retirement account_ 270,000,000 taxes. High taxes are all very well for the national debt, but now they are Other -trust accounts ______410,812,601 a while, but soon inflation comes, for in­ greatly concerned about decreasing the Special deposit accounts: flation has always been the escape from national debt this year. I myself think Governmenttions ______~orpora- _ overdrast:c taxation. So, in effect, we I would accept a $2,000,000,000-a-year Other ______247,000,000 are merely inflating the economy and reduction in the national debt, and I 250,000,000 collecting taxes from inftated incomes. would be willing to have in the budget Sales and redemptions of In the second place, Mr. President, in obligations of Government an item for debt reduction in that corporations in the mar- such circumstances the burden on the amount. Nevertheless, we must realize 1 215, 900, 000 middle-income groups is so great that in that when $2,000,000,000 is taken from ket ------the case of individual businessmen or the people's incomes and is used to re­ 2,780,473,038 corporation executives, or even writers duce the national debt, the purchasing and creative artists, their income· after power of the people is reduced to that Net accumulations 1n · they have worked the first 6 months of extent. In that way we are already re­ trust accounts______2, 806, 825, 253 a tax year is about all the income they ducing the purchasing power by a con­ 1 Excess of redemptions; deduct. are interested in, for whateve1: they earn, siderable sum. Source: Budget, table 4, p. A7. 1947- CONGRESSIONAL RECORD-SENATE 5797 Mr. TAFT. So, Mr. President, when counted purchase of mortgages as an All we can say now and all we can say we reduce the national debt $2,000,000,- expenditure. I do not know why they 3 weeks from now is that if a complete 000, we reduce the actual purchasing are in this budget. _There is no doubt force of actuaries were to figure this mat­ power of the people a corresponding some reason, some statutory require­ ter out they would differ by a billion dol­ amount. I think we should reduce the ment. But there is $440,000,000 of pos­ lars. I will venture to say that when we debt; but if we reduce it by too large a sible savings which can be taken out, and leave here they will differ by a billion sum at one time, we shall reduce the pur­ the arguments as to what the expendi­ dollars as to what the expenditures of the chasing power of the people to such an tures of the Government are going to be _Federal Government will be in the next extent as to actually damage the econ­ will go on for months after the Congress 12 months. omy and actually cut down the ability adjourns. We will not know any more After all, the President in December of the people to purchase. about them 30 days from now than we overestimated the expenditures by some­ Mr. President, the President said in his know now. We can tell the trend, and thing like a billion and a half dollars for economic report: that is all. So far as we can tell from the 6 months of the current year, and Maximum production and employment this the trend, and figuring the appropria­ underestimated the receipts. year would yield a substantial increase in tion bills which have passed and are now Mr. TYDINGS. Mr. President, will the the available supply of consumers' goods and pending in the Congress, we are accom­ Senator from Ohio yield? services, especially in the area of durable plishing the goal of keeping expendi­ Mr. TAFT. I yield to the Senator from goods. This reqUires higher real purchasing tures four -and a half billion below the Maryland. power to take the goods off the market. If budget estimates. Mr. TYDINGS. I hope the Senator price and wage adjustments are not made, will put his tables in the RECORD, be­ and made soon enough, there is danger that There are various executive figures in consuming buying will falter. the carry-over. I can find no one who cause I should like to examine them. I can give any definite answer as to what ask the Senator, however, if the actual Certainly, Mr. President, if we are go­ those figures are. · cuts made in the nine bills which have ing to apply to the national debt a sur­ The total figure of $37,500,000,000 is already been acted on, excluding the plus of $8,000,000,000, we shall cut down not all a question of appropriations. $800,000,000 tax refund provision, and purchasing power to a tremendous ex­ Only about thirty-two and a half billion excluding the Co:r;nmodity Credit provi­ tent. At the moment, purchasing power _is concerned with appropriations. Five sion of $641,000,000, do not total, as is perhaps still on the increase, but it billion is from last year's appropriations. acted on by the House of Representa- shows signs of having reached a peak. Those are also bein~ worked on. tives, $1,205,000,000. . If we take that much purchasing power So far as I can judge, the proposed cut J,\.1r. TAFT. Probably the Senator is away from the people during the next from the Army and Navy is about what correct. I do not think that includes 12 months, we may easily contribute to I estimated, about 10 percent of the total the Army. · turning the present situation into a re­ :figure. -The total bill for the armed Mr. TYDINGs·: It does not. cession and a depression. It is obvious services . was about $11,200,000,000, and Mr. TAFT. Le_t us take the Com­ that we cannot safely reduce the na­ with the rescissions, and cuts in appro­ modity Credit Corporation. I felt when tional debt too rapidly. priations, I estimate we will save about I . first saw the figures for that Agency The actual existence of a national debt $1,200,000,000, just about 10 percent of that, to the extent of those figures, the is riot necessarily a threat to the people the total amount that was requested. budget_was padded. This figure was in­ of the United States. The present debt Mr. TYDINGS. Mr. President, will cluded in expenditures for the fiscal year involves an interest charge of approxi­ the Senator from Ohio yield? 1948, whereas I knew the money was to mately $5,000,000,000 a year. If we pay Mr. TAFT. I yield to the Senator reimburse the cost of subsidies paid 2 off $10,000,000,000 of the debt, we reduce from Maryland. years ago. the expenditures for interest on the debt Mr. TYDINGS. The Senator has made Of course we have not saved the by approximately $200,000,0i0, on the quite a study of the budget in connection money, aut nevertheless, when the Presi­ basis of a 2 percent interest charge. Of with the tax bill, and I wonder if he would dent presented his $37,500,000,000 budg­ cow·se, it is important to keep reducing mind relating to the Senate the items et, be made it $800,000,000 higher than the national debt, so that Government which make up $4,500,000,000 reduction I believe it should have been. It seems credit may be good and there may be in e1..'J)enditures. to me we have a right to say that that a constant movemen.t toward a lower Mr: TAFT. I have four pages of the amount was padded in 1948, because it total interest charge on the national items which I made at the beginning of either belonged in 1946 or in the current debt. But the very existence of the na­ this session, and which I should be glad year 1947, and does not belong in 1948. tional debt does not threaten the. secu­ to show the Senator, but I can hardly go There is no reason why we should be rity of the United States, and I do not into them all in detail at this time. At levying taxes in 1!;48 to pay for current think anyone in the United States really that time I reached a total of about $5,- expenditures of 1946. thinks so today. Of course, we want to 800,000,000, and after deducting items Mr. TYDINGS. I think there is a reduce the debt, but if at the moment I which I think will not be realized, I great deal in what the Senator says, had my choice between the two, I would brought my figure down to about $4,800,- but the fact remains·, whether we pay prefer tax reduction to debt reduction. 000,000. - it next year or this year, it is not a re­ As a matter of fact, we are in the for­ The largest item was the Army appro­ duction of expenditures, it is· only a pay­ tunate situation that we can have both priation, to which I referred. My esti­ ment of a debt this year instead of next during the coming year. mate for the agricultural appropriation year, and that does not represent a cut Mr. President, it is said that we have wa~ $150,000,000, less saving than in the in the expenditures of the Government. not yet cut expenses, that we do not bill which bas just been proposed in the Mr. TAFT. I quite agree, but, after know what the expenses will be. I House, andl imagine we will have to put all, if the _budget is lower, I do not care would only say, in reply, that tbe Budget back some of. that. whether it is paid by recalculating of the of the United States is an extremely The estimate in the case of Federal Se­ budget or is paid by saving money. I complicated document, made up not curity was of a saving of about $50;000,- think the Senator will recognize that only of the department appropriations, 000 less than I estimated. the House has done a good job in cut­ about which we know, but it is made up As to the Navy, we estimated four hun­ ting, but the Senator thinks probably of all sorts of Government corporation dred and fifty-one million. The proposed they have done too much. accounts and cross accounts, with a net cut is three hundre'd and seventy-eight Mr. TYDINGS. No, I do not. figure between the expenditures and re­ million, but that does not include the re­ Mr. TAFT. I am glad to have the ceipts, but it is a figure which has many scissions from carry-over last year, so the Senator's support. tricks in it. estimate will be approximately reached. Mr. TYDINGS. I hope they will keep Let us take, for instance, the Govern­ For the Labor Department I figured on with their cutting, and as one mem­ ment corporation figures, $440,000,000 savings of only $5,000,000. There has ber of the Committee on Appropriations, for RFC, purchase of mortgages on vet­ been been proposed $24,000,000. I pretty generally supported their cuts erans' homes, as an expenditure of the For the State Department the figure is in the Committee on Appropriations of budget. The mortgages are perfectly $61,000,000, which is a great deal more the Senate; indeed, I not only supported good mortgages. The RFC never has than I had estimated. them, Mr. Presi~ent, but I shall claim 5798 CONGRESSIONAL RECORD-SENATE MAY 26 eventually a large part of the credit for Mr. TAFT. Yes; in my opinion it ineffectual as a reliable date for informa­ the savings made. would; because the deductions of 20 per­ -tion when he pointed out that last year Mr. TAFT. I should be very glad to c&!nt begin on the 1st of January, and · the Department of Agriculture appropri­ give the Senator that credit. there will be an overcollection for 6 ation bill did not become law until June Mr. TYDINGS. Going back to the months from 44,000,000 taxpayers. 22; the District of Columbia appropria­ $641,000,000 of the Commodity Credit Sooner or later checks will have to be tion bill, until July 9; the Interior De­ Corporation, it has the effect of cutting written and mailed to them, presumably partment appropriation bill, until July 1; down the surplus for this year and add­ as soon. as it is possible to draw the the Labor and Federal Security appro­ ing to the surplus for next year, but it checks. That is a very considerable priation bill, until July 26; the legisla­ does not represent-and this is my point, thing. It would affect every taxpayer. tive appropriation bill, until July 1; the with which the Senator has been fair There is a certain number of adjustments War Department appropriation bill, un­ enough to agree-a reduction in expen­ at the present time, but that particular til July 16; the Navy Department appro­ ditures. pay-roll deduction is not 'nearly so diffi­ priation bill, until July 8; and the State, Mr. TAFT. The Senator is correct. cult as it would have been under the Justice, Commerce appropriation bill, Mr. President, I desire to conclude by House bill. until July 5. saying that in connection witn the ques­ Mr. LUCAS. The only point I make Now, even if we knew to the last dollar· tion of delay, we are going to have to is; the House apparently did not con­ the totals of our appropriation bills this base the tax bill on the facts of the mo­ sider the Senator's argument as a valid year, we would continue to be in the ment, which wm be approximately the one, because they overwhelmingly passed field of estimate as to the expenditures same as the facts 3 weeks from now. If a bill which made tax redtlction retro­ for fiscal 1948. This comes about we put off action on the bill, :;: doubt very active as of January 1. through the fact that money a-ppropri­ much whether we can possibly get the Mr. TAFT. I do not always agree ated does not necessarily measure the deductions into effect on the 1st of July. with the House. They seemed· to feel amount of money expended during · a The Treasury has quite a task in getting that they had to do it. I always op­ given fiscal year. out the new deduction tables and getting posed it, as the Senator knows, and I · For example, last August, after all of them to the employers. The employers think it would have been a great mistake the appropriation bills had become law, have to have them in order to set up their to make a retroactive tax cut. the expenditure estimate then made for calculating machines for figuring the The PRESIDENT pro tempore. The the then fiscal year 1947 by the Bureau of dedu~tions in wages. We have always Senator's time has expired. To whom the Budget was forty-one billion five been told we must give the Treasury 30 does the Senator from Colorado yield? hundred million. In January 1947, de­ days in order that they may get the with­ Mr. MILLIKIN. Mr. President, what spite the fact that the Bureau of the holding tables out and have them made · is the remaining time? Budget knew to the last penny the effective. The PRESIDENT pro tempore. The amount of prior appropriations, it re­ As to the retroactive feature, the House Senator from Colorado has 19 minutes vised its expenditure estimate for fiscal reduced taxes from the 1st of January to his credit. 1947 to $42 ,500,000,000, an increase of for the whole year. The result was that Mr. MILLIKIN. I shall yield that to $1 ,000,000,000 over its estimate of August the new deductions would be put into myself. 1947. More recently, on April 19, 1947, effect the 1st of July, and it would have Mr. President, we are asked to post­ the Bureau of the Budget again revised been necessary for the Government to pone consideration of this bill until June its expenditure estimate for fiscal 1947 give back a check to reimburse for the 10. The reasons advanced are that by -to $41,250,000,000, a reduction of one bil­ extra taxes that have been collected dur­ June 10, the House Appropriations Com­ lion two hundred and fifty million from· ing the first 6 months. mittee will have reported all of the maj-or its previous January estimate. We felt that was unwise. We felt it appropriation bills; that from these re­ How does this come about? would be purely inflationary for people ports we would be in better position to Revision~! that kind result from the to receive checks they did not expect to estimate the amount of expenditure re­ effects of rescissions, from the fact that get. We have been concerned that the ductions in fiscal 1948; that this would appropriations are not always completely tax reduction should begin on the first put us into improved position to judge spent during any particular fiscal year, day of July, that on that day every citi­ the merits of the bil1 before us. from control of the rate of expenditure, zen should receive either a 30-percent or It is respectfully suggested that the from administrativ-e economies, and so a 20-percent cut in the deductions previ­ proposal is unsound for many reasons. forth. ously macte, that his checks may then be To start with, we have no way of know­ Running along with changes in esti­ increased as of that day, so that we do ing how many appropriation bills will mates of expenditures caused by the op­ not have to give him a refund check to have been reported by the House Appro­ eration of factors such as those men­ take care of money which we have over­ priations Committee by June 10. We tioned are changes in estimated revenues. deducted. Of course, it is not so essential have no way of knowing what the House, In a word, there is never a static point for people who pay. in quarterly install­ the Senate, and the conferees wiil do to from which the whole picture can be seen ments, because their first cut, of either bills which have not progressed beyond without the benefit of estimate. On june 20 percent, 10 percent, or 30 percent, will the reporting stage in the House of Rep­ 10 some things might be clearer and come on the 15th o! September. But if resentatives. · Indeed, we have no way others more obscure. This explains why, it is desired to get these deductions into of knowing what the two Houses might as W'3.S developed during the debate by the effect-and this affects, I think, some­ do to the reports of the conferees. able junior Senator from Maine, that we thing over 30,000,000 taxpayers-the bill If it is sound to argue for such a delay have passed revenue bills at all different should be promptly passed .. It ·should be in order to secure a little more incom­ stages )f congressional sessions which, of passed in order that there may be no plete information which could serve no doubt whatever that those cuts begin purpose except to stimulate additional necessity had to be based upon future es- . with the wages which begin on the 1st conjecture and difference of opinion, it timates and conditions. I believe that day of July. I think that is what the would be sound on June 10 and thereafter this is probably the first time that time people expect. It makes it very compli­ to ask for successive delays for the same itself has been asked to stand still so cated to do it any other way, or to begin reason until the House, the Senate, the that the hazards of estimating might be it at a later period; and I think that conferences, and finally both Houses had minimized. alone is a reason not to delay the partic­ disposed of all of the bills. We all know that under the L€gisla­ ular action which is proposed at this Let no one be naive enough to believe tive Reorganization Act, we should finish time. that these possibilities have escaped at­ this session by July 31. ·Therefore, our Mr. LUCAS. Mr. President, will the tention and would not be fully exploited work will be greatly intensified by June Senator yield? by those who follow the administration's 10. The appropriation bills will start Mr. TAFT. I yield. policy of no-income-tax-reduction bill coming in June and we know without any ­ Mr. LUCAS. Would it be more com­ this year. doubt, that many of their items will be plicated to follow House bill 1, which The junior Senator from California subject to heated and protracted debate. makes the tax reduction retroactive to [Mr. KNOWLANDJ, during the debate the We will be in the middle· of a floo d of January 1? other day, demonstrated that June 10 is other legislation that will :pour out of the 1947· .. CONGRESSIONAL RECORD-SENATE 5799 committees onto -the calendar for atten­ onstrate the wide margins ' of safety lion as the income-payment rate for the tion before adjournment. within which we marked up this bill. fiscal year 1948. We preferred to base To inject this income-tax reduction bill The Senator,.s .figures fall short of the ourselves on an estimate which would into that situation will bottleneck the Senate's goal of expenditure reduction by take into account an orderly downward whole legislative program, will kill the $1,714,000,000, and yet there is room for adjustment, some recession, a recession of bill, or delay its passage so long that it meeting the Senate's debt reduction goal such magnitude as to increase unemploy. could not possibly become effective, as and for a sizable contingency fund. ment from the present level of about two planned, on July 1. We shaped this bill with the definite and five-tenths million to about four Do I depart from seemly innocence purpose that our margins should be million. We are not predicting such a when I suggest that there may be many ample to meet even more conservative recession. We estimated it in the inter­ Senators who would gleefully join in views than our own, to allow for sub­ ests of proper caution. bringing that about? stantial errors or contingencies. One hundred and seventy billion dol­ Many new forms must go to the tax­ We tried to arrive at a sound position lars of national-income payments for the payer and employer well ahead of July 1. between the estimates of no rescession fiscal year 1948 coincides with a drop in There will be new rules and regulations. and those of complete disaster. the present physical volume of indus­ There will be no time for their prepara­ The House bill as it came to us would trial production from its present index tion and distribution and for the neces­ have cost the revenues four and nine­ number of around 190 down to an aver­ sary adjustments of the taxpayer and tenths billions on. the basis of national age of 171 for the fiscal year 1948. It employer if this bill is to malinger its way income payments of $170,000,000,000. would represent a drop in commodity through June. The House bi.ll was fully retroactive to prices from the. present price line of We believe that our 49,000,000 income January 1, 1947. about 149 to an average for fiscal year taxpayers are entitled to the benefits of Allowing for the cost of the House bill, 1948 of 136. this bill without delay. We are not un­ and assuming the Senate's expenditure This will illustrate to the Senate the mindful of the predictions of recession. reduction goal, there would have been a basis of the statement that in adopting We know that no better buttress against surplus for debt retirement and con-: the income-payment estimate of one recession can be found than income-tax tingencies of $3,500,000,0000. This hundred and seventy billion for the reduction. We are also aware that it would have taken care of the Sen·ate's fiscal year 1948, we were acting con­ takes about 1 year for the full effects of . program of debt reduction of $2,600,000,- servatively. In adopting the· Senate's income-tax reduction to be felt. Our 000 with $900,000,000 left over for con­ version of expenditure reduction of gloomiest recessionists thus have their tingencies as contrasted with the Ad­ $4,500,000,000, we also adopted the con­ own special reason .for losing no time in ministration's contingency allowance in servative course as between the House getting this measure into operation. the budget for 1948 of $25,000,000 and and the Senate. Had we adopted the It is our plan to make this bill effec­ debt reduction of $1,400,000,000. House version of $6,000,000,000 expendi­ tive July 1, and this has important rela­ But out of an abundance of caution, ture reduction, our estimated surplus tion and sequence to the fact that there with the object of conforming our bill would have been six and seven-tenths will be presented to the Congress early so that there would be generous allow­ billions instead of $5,200,000,000. the next session a general revision bill to ance for contingencies and speculations But I believe it has been demonstrated correct other injustices and inequities in' of the type which we have heard here, that the five and two-tenths' billions is our tax structure which have. been accu-· the Senate Committee on Finance de­ abundantly ample for our planned debt mulating a long time. The House Ways cided to eliminate the retroactive fea­ reduction, for reasonable discounts and Means Committee has already com­ tures of H. R. 1. which anyone wishes to apply to our esti­ menced its preparations and hearings. This increased our estimated surplus, mates, and for contingencies. The Treasury is cooperating. after giving effect to the cost of H. R. 1, Let me again remind the Senate that The distinguished senior Senator from as so amended, to $5,200,000,000, enough reduction of taxes does not necessarily Georgia, while not vouching for it and to take care of the Senate's debt reduc­ mean reduction of tax revenues. This maintaining what I thought was some tion goal of $2,600,000,000 with an equal was shown by our tax-reduction experi­ skeptical reserve, predicted that expen­ amount left over for further debt reduc­ ·ences-in the 1920's. It is a well-known diture reductions reflecting true savings tion or contingencies. fact that restoring to the people their might reach as much as $2,786,000,000. We have had much discussion as to freedom to spend their own money is in In arriving at this figure, the Senator the expenditure side of the budget. We aid of a dynamic economy. The circula­ excluded the $BOO ,OOO,OOO reduction by have shown, I believe, that our safety tion of money in the hands of the peo­ the House in the $2,000 ,000,000 item in margins are ample to protect against ple has rapid velocity. It gives direct the executive budget for refund of re­ sizable failure, if that unfortunately support to the consumer-goods market. ceipts in the fiscal year 1948. should occur, in meeting our Senate goal The national income is increased and Passing for the present the questions of expenditure reduction. that increases revenue receipts. raisAd as to this item, and for discus­ Now let nie discuss how we reached This experience is not confined to the sion's sake accepting as achievable the our estimate of revenue receipts and of Federal Government. New York State expenditure reduction figure of $2 ,786,- national-income payments of $170,000,- reduced its tax on individual incomes by 000,000, the estimated expenditures in 000,000 for the fiscal year 1948. a fiat 25 percent for the years 1941 to fiscal 1948 would be thirty-four and Remember, please, j;hat $17-0,000,000,- 1944, inclusive, and by a fiat 50 percent seven-tenths billions. Estimating in­ 000 of national-income payments trans­ for 1945. Another 50-percent cut has come payments for fiscal 1948 at one lates into our estimate of tax revenues been recommended for the fiscal year hundred and seventy billions, the exist­ for the fis~l year 1948 of $41,400,000,000. ing tax system will produce revenues in National-income payments are a stand­ 1946. Nevertheless, revenues have in­ that year of $41 ,400,000,000. ard reference point used by the Treasury creased from four hundred and sixty­ Deducting expenditures of thirty._ and by the technical staff of the Joint five million in 1940 to six hundred and four and seven-tenths bililon, there is Committee on Internal Revenue Tax­ eighty-two million in 1946, and a deficit a surplus of six and seven-tenths billion ation, and by all other authorities known of 1940 has given place to an unbroken · for debt retirement, tax reduction, and to me, for the calculation of tax revenues. series of surpluses, the largest of which contingencies. Subtracting $3,209,000,- We examined the annual rate of na­ occurred in 1946. In spite of-the 50-per­ 000, the cost of the bill before us, we have tional-income payments for the first cent cut, a surplus of $60,700,000 is esti­ three and five-tenths billion for debt re­ quarter of the present calendar year. It mated for the fiscal year 1947. tirement and contingencies. Deducting is $176,000,000,000. Had we accepted Since the end of World War II, Aus­ the Senate's goal of two and six-tenths that rate for the fiscal year 1948, our tralia has twice reduced its income tax. billion for debt retirement, we have surplus, after paying the costs of this The tax program which included the first $900,000 ,000 for additional debt reduc­ bill, would have been six and 'five-tenths of these reductions was estimated at the tion or for contingencies. billion. ti:ne to cost between two and three mil­ I have shown the effects of the ex­ On the Treasury's theory of no reces­ lion pounds. Instead th~ tax reductions penditure reduction figure of the Senator sion, we would have been justified in ac­ were followed by an increase in revenue from Georgia of $2,786,000,000 tc;> dem­ cepting one hundred and seventy-six bil- of £17,000,000. I interject to say that XCIII--366 5800 CONGRESSIONAL RECORD-SENATE MAY 26 Canada is passing an income-tax-reduc­ I am one of those who, even before the propriations Committee. I had assumed tion bill, the percentages ot reduction 1n war had ended, hoped for and predicted before this brief conference was held that which are much the same as our own, a drastic reduction in governmental ex­ the majority members of the joint com­ and it, too, will go into e:t!ect on July 1. penditures and in taxes. Nearly 2 years mittee had agreed upon some figure be­ The distinguished senior Senator ago, before the war ended, I expressed the tween four and one-half and six billion from Georgia during the debate on our hope and belief that when the war should dollars, and that the conference would be tax-reduction bill of 1945 put it this end and we should have discharged a sort of ratification meeting to act upon way-CONGRESSIONAL RECORD, VOlUme 91, whatever temporary obligations by way the figure previously agreed upon by the part 8, page 9948: of expenditures the aftermath of war re­ majority. We were not even permitted The rate of tax does not determine what quired, we could stabilize our national to discuss the figures while they were un­ comes into the Treasury. The bill, so far as ' expenditures at somewhere between der discussion in the majority. It was it affects corporations, is properly a tax-rate­ twenty-two and twenty-five billions of obvious from the beginning that minority reducing bill. It wlll not necessarily reduce dollars. Members w~re not to be taken into the the amount of revenue coming in. Indeed, When I expressed that hope and belief, · confidence of the majority in the matter if it has the effect, which it is hoped it wlll I was deeply in earnest in the entertain­ of determining the size of the budget. have, it will so stimulate the expansion of ment of both the hope and belief, but the But it soon developed in this first and busine~ as to bring in a greater total reve­ extension of the war and the necessary nue. I think if one will look back to World only meeting, which was held more than War I he will understand precisely what I assumption of international obligations 2' months ago, that the House conferees am now trying to say. beyond what we then contemplated have would not yield by so much as $1, and Mr. President, while it is somewhat aside, made it impossible to achieve this goal the conference was adjourned subject to I shall pause in the presentation of my pre­ up to the present time, though I am not the call of the Chair. This call has never pared statement to emphasize this fact: The ready to give up the hope that we may been issued, and the conferees are help­ Revenue Act of 1918 was approved February yet reduce our governmental expendi­ less to do anything except wait in con­ 24, 1919, some months after the actual cessa­ tures to somewhere near the figure fusion and futility It is now obvious to tion of hostilities. In a sense, that act was which I have indicated. both a war-tax act and an immediate post­ any thinking man that a $4,500,000,000 war tax-rate-reduction act, since it provided When the President submitted his or a $6,000,000,000 reduction will not be one schedule of rates for 1918 and a some­ budget of $37,500,000,000, which repre­ achieved when the total appropriations what lower schedule for 1919, 1920, and 1921 sents a scaling down by him of more than have been enacted into law. The act of November 23, 1921, made more $5,000,000,000 from the requirements and We all supported the Congressional substantial reductions in rates. The recov­ recommendations of the various depart­ Reorganization Act in good faith. We ery of the country from a state of depression ments, I was frankly surprised and deem it one of the wisest provisions in in 1920 and 1921 was rapid. The Revenue somewhat disappointed that a smaller Acts of 1924 and 1926 made still further tax .., that act that Congress should in advance reductions, but the income from tax revenues total sum had not been recommended, make an intelligent estimate of revenues of the Government increased through all of but after going over the budget recom­ and expenditures for the fiscal year with that period. mendations in detail and after one or ~ provision for the reduction of the huge two sessions of the Joint Committee on public debt by whatever could be saved Mr. President, I affirm that this bill is the Budget, provided for by the Congres­ by a reduction of estimated appropria­ on a sound budgetary basis, and I hope sional Reorganization Act of 1946, I was tions and expenditures. that the motion to delay its considera­ convinced that the President had done The failure to call a meeting ·of the tion will be defeated. his best to reduce the expenses to the conferees under section 138 of the act is The PRESIDENT pro tempore. The lowest figure which he thought possible a gross disregard of congressional obliga..: time of the Senator has expired. or practicable in view of our domestic tion and a gross disregard of the financial Mr. GEORGE. Mr. President, i yield and international obligations. Notwith­ interests of the Government of the the remaining time to the senior Senator standing this I still entertain the hope United States from every possible stand­ from Kentucky [Mr. BARKLEY]. that we may reduce the amount some­ point. If we judge the immediate future Mr. BARKLEY. Mr. President, I shall what below the budget recommendations. by the immediate past we may assume occupy the attention of the Senate for In an effort to perform our duties un­ that no further e:t!ort will be made to ar­ the remaining moments available for det the Reorganization Act, and particu­ rive at a figure which both Houses might this debate, in support of the motion of larly with reference to section 138 of that adopt and no further e:t!ort would be· the Senator from Georgia [Mr. GEORGE], act, a Joint Committee on the Budget was made to assemble the conferees for that to postpone consideration of the pending appointed by the two Houses of Congress, purpose. legislation until the lOth of June. and after some discussions and contro­ It is not without just foundation to as­ I realize that on that date we may not versies the House of Representatives sume that those who are responsible for have all the information that would be passed a concurrent resolution by which the conduct of the public business in the desirable to enable us to act intelligently it reduced the President's budget by two Houses of Congress and those who with regard to any tax reductions at this $6,000,000,000. When the concurrent start out brashly to reduce the Presi­ time or at this session; but as has already resolution came before the Senate an ef­ dent's budget by anywhere from $4,500,- been so forcibly said by the Senator from fort was made by Members on.both sides 000,000 to $6,000,000,000, now realize the Georgia [Mr. GEORGE] by the date fixed of the political fence to deal realistically impossibility of this task under the pro­ in his motion we shall certainly have a with the question of the President's gram which they have thus far accom­ clearer picture of the probable appro­ budget and any possible reductions be­ plished by way of appropriations and are priations of this session of Congress than low it. We recognized that it would be lacking in the frankness to tell the Con­ we have now. practically impossible to cut $6,000,- gress and the American people of. their We cannot take into consideration the 000,000 from the budget estimateJ how­ failure. possibility that all appropriations may ever desirable this result might be. The But without the guidance of the con­ not be expended, or that there may be an Senate finally amended the concurrent gressional budget, which was contem­ excess of expenditure, calling for de­ resolution to provide for a reduction of plated in the Reorganization Act, cer­ ficiency bills between now and the end of $4,500,000,000 below the President's esti­ tainly by the lOth of June and more cer­ this session. Certainly we do not now mates and the concurrent resolution was tainly by the time the tax bill ·is con­ have anything approaching a clear indi­ sent to a conference between the two sidered, if postponed ...tntil that date, we cation of the total appropriations which Houses for the purpose of ironing out would have some knowledge by which we will be enacted by this session of Congress the di:t!erences and finally enacting the could estimate the ultimate sum total of and to that extent we shall be ·walking up concurrent resolution in some form and appropriations that may be made by this a blind alley. We shall be groping in a some definite figure. session of Congress. field where there is not sufficient light at The concurrent resolution was adopted. I am not sure, hQwever, Mr. President, this time to enable us to plant our feet by the Senate March 4 last, nearly 3 that in the minds of the majority this is · upon solid ground in the matter of Gov­ months ago, and immediately sent to a matter of any consequence, because ernment income and Government ex­ conference. Soon thereafter a brief con­ House billl, which we are now consider­ penses, although I concede that even on ference was called by the chairman of ing and which received its number be­ that date we may not have all the infor­ the joint committee, Representative JoHN cause it was the first bill introduced in mation that we might wish. TABER, who is chairman of the House Ap- the House of Representatives in this ses- 1947 CONGRESSIONAL RECORD-SENATE 5801 sion, was introduced in the House on the since the second year of the Hoover 000,000. For every $10,000,000,000 in in­ first day of the session before the Re­ administration. come payments above this level receipts organization Act had taken effect, before The Senator from Ohio [Mr. TAFT] a are likely to increase by two or two the committees had yet been organized moment ago referred to the fact that and one-half billion. Thus, if income or appointed, before the President had the budget had been unbalanced for the . payments remain at theii current level even submitted his budget to the Con­ past 15 years. If he had desired to be at about $177,000,000,000 during the en­ gress, and before either House had had completely accurate, he would have said tire fiscal year of 1948, Treasury receipts · an opportunity to discuss or to consider 17 years, because the budget has been will probably be about $41,500,000,000 what our total probable expenses would unbalanced ever since 1930, the second under the present revenue laws. At this be in regard to the payment of our debt year of the Hoover administration. In level of income payments the enactment and the support of our obligations in th_is that administration the public debt was of the Senate Finance Committee tax bill session of the Congress. increased from $16,000,000,000 to more would reduce receipts by approximately This estimate of expenditures is sub­ than $22,000,000,000, in a period of pro­ three and one-half to four billion dollars, ject to the contingency that even after found peace, not only in the United or a total of about thirty-seven and one­ regular appropriation bills have· been States but in the world. half or thirty-eight billion dollars per enacted there will be deficiency appro­ If I wanted to be partisan,. which I do annum. It seems clear, therefore, that priation bills which will include items not want to be, I would say that that unless the President's budget of $37,500,- eliminated from the regular bills, which administration plunged us into the 000,000 is reduced substantially there will undoubtedly increase the total greatest depression that the world had would be little or no debt retirement in amount for the fiscal year beginning July eve.r seen, experienced, or imagined. Out the fiscal year of 1948, even under these 1. There has been much said about the of it this increase of $6,500,000,000 in the favorable assumptions regarding the resistance of departments and agencies public debt emerged. level of income payments. against the reductions of their respective Now that they have assumed the re­ The reductions in appropriations al­ appropriations. We may concede this. sponsibility of financial legislation in ready made in bills passed by the House This habit is not peculiar to any particu­ both branches of the Congress, they seem do not bear out the contention that the lar bureau or department, nor to any willing to take the chances that events President's budget can be reduced to $33,- political party, nor any administration. _will repudiate their previous protesta­ 000,000,000, the amount assumed in the It has been true from time immemorial. tion of sound financial policies. report by Senate Finance Committee on But if we are to have any accurate infor­ Let us take the situation as it appears House bill 1. That matter has already mation concerning the possibility of a from the record. As the Se-cretary of been so amply explained by the Senator balanced budget, the possibility of sub­ the· Treasury said before the Senate from Georgia [Mr. GEORGE]: the Senator stantial debt reduction and the possi­ Committee on Finance, the Treasury es­ from Wyoming [Mr. . O'MAHONEY], and bility of an accurate estimate of Treas­ timates are neither optimistic nor pessi­ the Senator from Maryland [Mr. TYD­ ·ury expenditures, we must have a clearer mistic with respect to revenues and e~­ INGS] that I shall not undertake to discuss picture of the appropriations that will penditures. There is uncertainty in the it at this point'. These reductions now comt! out of this session of Congress b~­ · economic outlook and it would be de­ aggregate about $1,500,000,000, of which yond what we possess at this time. I do cidedly unwise to plan the national $800,000,000 is for tax refunds which will not desire to embark upon any dis~us­ finances over tbe next fiscal year on the have to be appropriated for during the sion of partisan politics in connection basis of the most optimistic assump­ next session of Congress, even if it is not with this important matter, but it is tions which we might entertain. This appropriated now. The real savings, somewhat strange that those who now is not to be construed as a forecast of a therefore, under the President's budget constitute a majority, in both Houses of depression, l21,rge or small, but it is rather are thus only about $850,000,000. The Congress have apparently abandoned an effort to lean in the direction of a loan to Greece and Turkey will offset a their historical role as pro~onents of safe· figure for prospects of financial substantial portion of this amount. To sound governmental financial policy and planning. There are no hazards in such bring the estimate down to $33,000,000,- a balanced budget. House bill 1, a tax­ a course, for even if there is no decline 000, Congress would have to cut the re­ reduction bill, without the slightest in­ in the level of income payments for the maining appropriatioRs by about $4,000,- formation, took on importance far be­ remainder of 1947, the surplus for the 000,000. yond that of other obligations and duties fiscal year 1948 will still be only ap­ The reduction of some $4,000,000,000 of the Government of the United States. proximately $4,000,000,000. in the remaining appropriation would I think the American people would like Enactment of the Senate Finance have to be obtained mainly from the War to see a balanced budget, and I think they Committee tax bill would, under favor­ and Agriculture Departments and the · would like to see our governmental able assumption that present levels of Veterans' Administration. I do not know finances stabilized upon a permanent income payments will be maintained, yet what will happen to the appropria­ basis, and not merely for a year or: two, still leave less than $1,0(' 0,000,000 for tion bills for the War Department and with the constant fear that our finances debt retirement. We get an excessive the Veterans' Administration. We do might revert to deficit spending and a surplus only by assuming that the $37,- know what has happened in the House further increase in our national debt. 500,000 ,000 of expenditures estimated in of Representatives regarding the appro­ It seems to me that nothing could be the President's budget will actually be more discouraging to the American peo­ cut by several billion dollars. priation bill for the Department of Agri­ ple and the economy of the American A while ago the Senator from Ohio culture, and the action of the .House in people than to vote for a temporary expe­ conceded, very fairly, I think, in a col­ regard to that bill has brought forth dient in order to reduce taxes in a single loquy with the Senator from Maryland sharp protests from many persons in all year, with no assurance that future [Mr. TYDINGS] that when we eliminate sections of the United States, not ex­ exigencies growing out of governmental $800,000,000 it is a phony reduction, cluding a prominent gentleman on the obligations would not require an early because it has to be paid some day, and other side of the aisle in this Chamber, increase in taxes, or an early increase in the longer it is postponed the more it will who has a genuine interest in the wel­ the public debt, instead of its gradual amount to, because it will draw 6 percent fare of agriculture in the United States. decrease, under any sound financial interest from the time the obligation is However, a reduction of such magni­ policy. incurred, el5timated, or ascertained, until tude in these key appropriation bills is From time immemorial the Republican it is paid. The bookkeeping saving rep­ obviously unlikely. The Navy Depart­ Party, now in charge of both Houses, resents only a transfer from one ledger ment appropriation recently passed by has boasted it was the party of sound to another, or a bookkeeping arrange­ the House saves $378,000,000 out of a economic policy and practices, that it ment between the Treasury and the Com­ total request of $3,800,000,0QO, or about favored a balanced budget, that it modity Credit Corporation. We can see 10 percent. The same percentage saving favored the protection of the national now only a reduction of $1,200,000,000 in in the remaining items ca;nnot be credit. ' Although our friends on . the the estimated ~ expenses of the Govern- achieved, because they contain many other side have consistently complained merit. · · · fixed commitments. However, even if since 1933 of an unbalanced budget, they The Treasury estimates of receipts for this optimistic assumption is made, an rarely, if ever, refer to the fact that the the fiscal year of 1948, based on $168,- additional saving of only about $2,000,- national budget has not been balanced 000,000,000 national income, is $38,000,- 000,000 · would be obtained. Thus, the 5802 CONGRESSIONAL RECORD.:__SENATE MAY 26 total budget reduction based on this opti­ lt is agreed that tax reduction is de­ These new enterprises are often started mistic assumption, without allowing any sirable to help combat a prospective by persons of modest means who, by com­ offsetting increase for new foreign loans, recession. The important question is bining their small capital and personal would be about $2,850,000,000. to determine when the tax reduction effort, build great enterprises from small By way of summary, an optimistic esti­ would be most effective. Under present beginnings. It is well-known that the mate of receipts in the fiscal year of 1948 conditions, it is hazardous to reduce ownership of stock in American corpora­ is-$41,500,000,000, and an optimistic esti­ taxes in anticipation of a recession. tions is widely distributed among all in­ mate of the size of the budget is $35,000,- Business is operating at capacity. and' come brackets. Statistics of income 000,000, leaving a surplus of $6,500,000,- inflationary pressures still persist in the show that nearly. 50 percent of the divi­ 000. But it would be unwise to proceed economy. Tax reduction now would dends received by' individuals . are re­ on the assumption that such a surplus contribute further to the maintenance ceived by persons with incomes of less will be available for debt retirement and of inflationary prices. By contributing than $5,000 per annum. tax reduction, since it leaves no room for to further inflation at the present time, -On page 14 of the committee's report, error either in the receipts or expendi­ we might increase the severity of any we find the following statement: tures figures. With income payments of recession in business which might occur Special relief is warranted at this time for $177,000,000,000, the Senate Finance in the coming fiscal year. Tax reduc­ persons who have attained the age of 65. Committee tax-reduction bill would re­ tion for bolstering mass purchasing At the hearings on this bill the Secretary o:r duce this surplus by $3,500,000,000. If re­ power and incentives will be appropriate the Treasury did not oppo: e the giving of ceipts fall below the most optimistic esti­ only after the inflationary trend has been special relief to persons aged 65 or over but argued that the appropriate method of doing mate or if expenditures are not cut to the arrested and the necessary price adjust­ so would be action undei the Social Security indicated $35,000,000,000, the margin for ments have been made. The best con­ Act. It is worth noting that the coverage of debt retirement would be less than tribution that we can make to economic the social-security .Iegislatio..: is by no means $3 ,000,000,000. Under present·conditions, stability at the present time is to bal­ universal. Relief under it would not extend sound management of our financial af­ ance the budget and to obtain a suffi­ to a great number of the people over 65 who fairs warrants action on tax reduction ciently large surplus to permit a proper now find themselves in an unusually only after we are.reasonably certain that payment on the national debt. straitened condition. there is sufficient surplus for a substan­ On page 10 of the Senate Finance Com­ · All families with low fixed .incomes tia] installment on debt retirement. mittee report on this bill, we find the have suffered as a result of the increase We all know we cannot pass on to following statement: in the cost of living. Persons urrder 65 future generations this stupendous pub­ It is desirable to concentrate any reduc­ with low fixed incomes have as urgent lic debt of $257,000,000,000. We all know tion which C'ln be made at this time in the a claim as those over 65. This provision that the time for debt payments is in the individual income tax. Only through the of the bill would remove one and one-half midst of high income and prosperity. individual income tax is it possible to give relief to all persons bearing heavy tax bur­ million from the tax rolls, but it would We all know that if by any chance there dens. still leave on the tax rolls more than should be a decline of income for 10,- 46,000,000 people, many of whom pay in 000,000 people, the result would be a There is no sound reason for confining taxes less than the costs of ·collection. reduction of three billion in the income tax revision to any one tax. All major Personally, I do not object to a general of the Treasury, which would wipe out taxes have important effects on incen­ provision granting $500 .additional ex­ all possibility of debt reduction under tives and the equity of the tax structure. emption to those over 65 years of age. this pending tax bill. We should revise not only the individual Such an exemption necessarily must ap­ On page 7 of the Senate Finance Com­ income tax·but also the corporation in­ ply to all persons over 65, regardless of mittee report there is the following come tax, the excise taxes, and the estate their income, because it would be ad­ statement: and gift taxes. In this connection, at­ ministratively difficult, if not impossible, The economy is not as fully employed as tention must be given to the problems of to draw a line between those above 65 the Secretary (of the Treasury) seems to double taxation of dividend income and who should get such relief and those who believe. Unemployment as reported by the of different forms of business enterprise, do not need it. The truth is that, re­ Department of Commerce is running now at the carry-over of net operating losses, the gardless of age, there ought to be an in­ about 2,400,0CO persons. This compares with tax treatment of family income, and 650,000 persons during the autumn of 1944, crease in the amount of exemptfon al­ when it can reasonably be said that the econ­ other features of the tax structure. Wise lowed under the tax laws so as to remove omy was fully employed in a fairly absolute and careful attention will be required to between four and five million persons sense. determine the changes which would ben­ who actually do not pay enough in in­ efit our -economy most. Since many of Unemployment · of 2,400,000 persons come taxes to justify the collection ex­ these adjustments will lose revenue, a pense; and any permanent tax b'i.ll en­ out of a total labor force of almost 60,- premature tax reduction at an annual acted now or hereafter must take into 000,000 does not constitute proof that rate of $4,000,000,000 may prejudge these consideration the wisdom and justice of the economy is operating at less than important questions and prejudice the increasing the personal exemptions be­ capacity. At what is usually called full development of a sound postwar tax yond those allowed by the present law. employment, some frictional and sea­ system. Those of us who support the motion sonal unemployment may be expected. On page 13 of the committee report, to postpone the consideration of this bill The unemployment level of 650,000 dur­ we find the following statement: to June 10, or to any other date, do not ,ing the autumn of 1944 indicated such a The decisions of the executives who re­ take this position because of any senti­ severe shortage of labor that Government ceive relatively large salaries are of greatest mental objection to tax reductions. We controls were necessary for the proper importance with reference to the develop­ recognize the necessity of appropriate, allocation of the short supply. During ment of industrial production. The savings well-considered, tax reductions· at an peacetime, an unemployment figure of of the middle and upper bracket income re­ appropriate time. We .emphatically as­ 2,400,000 is very close to the minimum cipients are the principal sources of the ven­ ture capital for business expansion. sume the position that existing wartime in a free economy in which wage earners taxes cannot be continued permanently, freely shift from job to job. Production Under present tax rates, national in­ or for a very long period in the future. is already at a record peacetime high, come is at a record peacetime high. The We were responsible for tax reduction and additional output is limited by limitations on investment and produc­ last year aggregating more than $-6,000,- shortages in supplies of raw material, tion are not the result of lack of invest­ 000,000, in which we included a reduc­ machinery, equipment, and labor, and ment and managerial incentives. As al­ tion across the board for all individual by maladjustments in the price struc­ ready noted, new investment and addi­ taxpayers. But we believe th_at n<' tax ture, rather than by the incomplete use tional production is limited by shortages reduction that is based upon political of available production resources. in the supply of raw material, machinery, expediency .can be sound. · On page 9 of the Senate Finance Com­ equipment, and labor, and by high prices. Mr. President, another matter to which - mittee report we find the following state­ No one group has a . monopoly on sup­ I think we should give consideration to­ ment: plying capital and establishing new bus­ day in regard to this tax bill is its-timing. A tax reduction w1ll be a hedge against inesses. The American economy has al­ All of us are. supposed to be concerned recession and accumulated deflation and ways depencied, and must always depend, about the credit of. our country, about its should be enacted now. on a healthy group of new small business. solvency, about its ability to pay its debts, 1947 CONGRESSIONAL RECORD-SENATE 5803 and about the confidence of the Ameri­ an orderly tax .reduction and an orderly Robertson, Va. Taylor Wagner Robertson, Wyo. Thomas, Okla.. Watkins can people in that solvency. we· believe _ debt reduction and a balanced budget Russell Thomas, Utah Wherry that is important because we believe that for the benefit of our Government and Saltonstall Thye White the millions of holders of United States our people. Smith Tobey Wiley Sparkman Tydings Let u~. therefore, approach this vital Williams bonds, which they have purchased in the Stewart Umstead Wilson stress of war emergencies, both for patri­ and important subject with caution and Taft Vandenberg Young otic reasons and reasons of investments in the light of the facts. Let us see a and savings, are entitled to feel a su­ little further into the future before we The PRESIDENT pro tempore. Nine­ preme confidence in the solvency of their commit ourselves to a policy which we ty-three Senators having answered to Government. We believe that if the may not be able to reverse, even though their names, a quorum is present. American people holding more than $50,- a necessity for a reversal should arrive. The question is on agreeing to the mo­ 000,000,000 of E, F, and G bonds, and For these reasons, I support the motion tion submitted by the senior Senator American banks holding $92,000,000,000 to postpone the consideration of this tax from Georgia [Mr. GEORGE] to postpone worth of Government securities-making bill until June 10, and for the same rea­ to June 10, 1947, the further considera­ a total of $142,000,000,000 out of our sons I shall support the amendment to tion of the bill from the House of Repre­ The following-named officers for appoint­ himself with what has been said by the ment in the United States Navy in the corps, sentatives, which was read, as follows: distinguished junior Senator from grades, and ranks hereinafter stated. IN THE HOUSE OF RERESENTATIVES, U. B., Michigan regarding the death of Repre­ The following-named officers to the ranks May 26, 1947. sentative FRED BRADLEY, of Michigan. indicated in the line of the Navy: Resolved That the House has heard with No more earnest, faithful, devoted pub­ ( •Ind-icates officers to be designated for EDO profound sorrow of the death of Hon. FRED lic servant ever served the public wel­ and SDO subsequent .to acceptance of ap- BRADLEY, a Representative from. the State of pointment) · · Michigan. fare. No finer citizen, no more patriotic Resolved, That a committee of four Mem­ American ever gave-himself to our con­ LIEUTENAN':' bers of the House with such Members of the· gressional labors. He has dedicated 10 •cutter, Freeman Senate as may be joined be appointed to at­ years of his life. to his district, to his LIEUTENANT (JUNIOR GRADE) tend the funeral. . State, and to his Nation in the burden­ Davis, Edwin C. Resolved, That the Sergeant at Arms of some activities of his public work. the House be authorized and directed to take Literally he died in the congressional ENSIGNS such steps as may be necessary for carrying Anderson, Richard B. Kern, William A. out the provision of these resolutions and harness. Michigan and America will Barr. Robert M., Jr. Matson, George L. that the necessary expenses in connection miss him in his fine public integrity. Berglund, Eugene N., Murray, Harrison C. therewith be paid out of the contingent fund His countless friends and his family will Jr. Natke, Ernest of the House. miss him and his great loyalties. He Berude, John B. Oellrich, Ernest H. Resolved, That the Clerk communicate was a rugged character in the best tradi­ Berwanger, George E. Owens, John D. these resolutions to the Senate and transmit tion of stalwart citizenship. It is with Bowers, Richard L. Pearson. Jack B. a copy to the. family of the deceased. deepest sorrow that we greet the sad Coggins, Carl R. Pressel!, Harry W. Resolved, That as a further mark of respect news of his untimely passing. , Cole. Floyd C. Root, William F. the House do now adjourn. Coughlan, Robert E., Schwartz, Israel L. Mr. FERGUSON. Mr. President, I Jr Senkow, Joseph Mr. FERGUSON. Mr. President, the otier a resolution and ask unanimous Dickey, Robert M. Stone, Warren I. tragic death of Representative FRED consent for its immediate consideration. •Forshee, Francis L. ·Taylor, David J. BRADLEY is a shock to the Nation and The PRESIDENT pro tempore. The Jefferson, James E. Timidaiski, James T. particularly to the State of Michigan resolution submitted by the junior Sen­ Johnson. Paul Trekell, William V. which he served so faithfully. He had ator from Michigan will be read. Karsten, Robert H. Williams, David, Jr. entered upon his fifth term in the House The resolution was read, The following-named officer to the grade of Representatives and, g,t the time of considered by unanimous consent, and and rank indicated in the Medical Corps of his death, was chairman of the Commit­ unanimously agreed to, as _follows: the Navy: tee on Merchant Marine and Fisheries. Resolved, That the Senate has heard with ASSISTANT SURGEON WITH THE RANK OF Because of the fact that he attended profound sorrow the announcement of the LIEUTENANT (JUNIOR GRADE) school ln Rogers City, Mich., and had death of Han. FRED BRADLEY, late a Repre­ Abelson, Sol M. lived in Michigan for many years, he sentative from the State of Michigan. was fully cognizant of the problems of Resolved, That a committee of two Sen­ The following-named officers to the grade ators be appointed by the President protem­ and rank indicated in the Supply Corps of our State. He was honorable and loyal the Navy: and always had the interests of the peo­ pore of the Senate to join the committee appointed on the part of the House of Repre­ ASSISTANT PAYMASTERS WITH THE RANK OF ple of Michigan and of the Nation at ENSIGN heart. He .fought to make the world a sentatives to attend the funeral of the deceased Representative. Anderson, Allan N. Jones, Joseph R. better place in which- to live, and his Resolved, That the Secretary communicate Bruening, Paul M. Kiraly, Joseph L. life was an inspiration and examPle to these resolutions to the House of Represent­ Buchner, Keith "C" Knipple, John D. all those who came in contact with him. atives and transmit a copy thereof to the Calcagno, Peter Kuhlman, Norman H. Congress is confronted with many family of the deceased. Chupalio, Anthony F. C. very serious problems at the present time Clepp, Joseph M. McKeown, Thomas P. and the loss of one with Fred's ability The PRESIDENT pro tempore. Under Darrow, Edward E. Murison, Richard K. will be keenly felt. He died in the serv­ the second resolving clause the Chair Dixon, Grover C. Nash, William T. ice of his country at his post of duty. appoints as the committee to attend the Fisher, Albert B., Jr.. Peck, LaVern E. funeral of the deceased Representative Fox, Gilbert J. Petro, John G. It was my great privilege and an in­ the senior and junior Senators from Goldstein, Gerald H. Selekman, Milton H. spiration to know FRED BRADLEY person­ Michigan [Mr. VANDENBERG and Mr. Goodfellow, James P. Smith, James H. ally, and I join with those who have FERGUSON]. Greene, James R. Thompson, Charles E. reason to cherish his memory in this Hamel, Carlton E. Thompson, William A., brief tribute to the character of a man RECESS Hamill, William T.-. Jr. Jr. who rendered valuable service to his Mr. FERGUSON. Mr. President, as a Hanson, Frank L. Urban, Donald A. district, the State, and the country as a further mark of respect to the memory Howard, Joseph E. Whitchurch, Frank H. whole. of the deceased Representative, I move The following-named officers to the grades We shall indeed be grateful that it that the Senate take a recess until 11 and rank indicated in the Civil Engineer was our privilege to serve Congress with o'clock a.m. tomorrow. Corps: FRED BRADLEY, a great American, and The motion was unanimously agreed ASSISTANT CIVIL ENGINEER WITH THE RANK OF we should find courage in the fact that to; and

ASSISTANT Civn.. ENGINEER IN THE NAVY WITH until midnight tonight to file a resolu­ pressed me more favorably than his. I THE RANK OF ENSIGN tion

The Clerk read as fol1ows: Mr. JONES of Washington~ Committee on By Mr. KNUTSON~ Post Office and Civil Service. / S. 125. An House Resolution 217 H. R. 3614. A bill to provlde for the estab­ act to .amend the Civil' Service Retirement lishment of the Brainerd War Dead National Resolved., That the House bas heard with Act of May 29, 1930, as amended, so as to Memorial; to the Committee on Public Lands. profound sorrow of the death of Hon. FRED extend the benefits of such act to the official By Mr. PRICE of Florida: BRADLEY, a Representative from the·state of reporters of debates in the Senate and per­ H. R. 3615. A bill to amend the act of May Michigan. sons employed by them fn connection with 21. 1946. entitled "An act to provide addi­ Resolved.,. Tha.t a. committee of four Mem­ the performance of their duties as such re­ tional compensation for postmasters, and em­ bers of the House with such Members of porters; without amendment (Bept. No. 456). ployees of the postal service"; to the Com­ the Senate as may be joined be appointed Referred to the Committee of the Whole mittee on Post Office and Civil Service. to attend the fUneral. House on the Sta.te of the Union. By Mr. RIVERS: Resol?Jecl, That the Sergeant at Arms of Mr. GEARHART: Committee on ways and H. R. 3616. A bill to provide more efficient the House be authorized and directed to take Means. H. R. 1945. A bill to amend sections dental care for the personnel or the United such steps as may be necessary far carrying 2801 (e) (4), a04S (a), and !3045 of the Inter­ States Army; to the Committee on Armed out the proVision of these resolutions, and nal Revenue Code; without amendment Services. "that the necessary expenses In connection (Rept. No. 457). .Referred to the Committee By Mr. SIKES: therewith be paid out of the con-tingent fund of the Whole House on the State of the H. R. 3617. A bill to authorize and direct of the House. · Union. the S~cretary of War to donate and convey Reso!vetl, That the Clerk communicate Mr. GEARHART: Committee on Ways and to Okaloosa County, State of Florida, all the these resolutions to the Senate and trans­ Means. H. R. 1946. A bill to amend sec­ right, title, and interest of the United States mit a copy thereof to the family of the tion 28.01 (e) of the Internal Revenue Code; in and to a portion of Santa Rosa Island, deceased. without amendment (Rept. No. 458). Re­ F'la., extending 1 mile east from Brooks The resolution was agreed to. ferred t& the Committee of the Whole Bouse Bridge on United States Highway 98 near the The SPEAKER pro tempore. The on the state of the Union. town of Port Walton, Fla .• and 2 miles west Mr. GEARHART: Committee on Ways and from said brldge; to the Committee on . Chair appoints as members of , the Anned Services. · HorFKAN, Means. H. a~ · 1947. A bill to amend se&­ funeral committee Messrs. tion 2800 (d) of the Internal Rennue Code; By 1\lrs.IX>UGLAS: SmnR, GRANT of Indiana. and DINGELL. without amendment (Rept. 'No. 459) . Re­ H. R. 3618. A bilJ to declare certain rights The Clerk wiD report tbe remainder ferred to the Committee of'the Whole House of citizens of the United States, and for the of the resolution. on the State of the Union. better a.ssura»ee of the protection of such The CJerk read as follows: Mr. BENNE"'T of Michigan: Committee on cltlzens and other persons within the several Resolvecl. That as a further mark of re­ Interstate and Foreign Commerce. S. 640. States ftom mob violence and lynching. and spect, the House do now adjourn. An act. to authorize the Secretary of Com­ tor other purposes; to the Committee on the merce to sell certain property occupied bJ .Judiciary. The re.Solution was agreed to. the Weather Bureau at East Lansing, Mich., By Mr. ENGEL of Michigan: H. R. 3619. A bill relating to the sale of the ADJOURNMENT and to obtain other quarters for the said Bureau fn the state of Michigan; without Mission Point Lighthouse Reservation. Grand Accordingly the House, under its previous the Committee of the Whole House on the Merchant Marine and Fisheries. order. adjourned until tomorrow, Tues­ State of the Union. By Mr. MAcKINNON: H. R. 3620. A blll to provide for the admis­ day, May 27, 1947, at 11 o'clock a. m. Mr. YOUNGBLOOD: Committee on Post Office and Civil Service. H. R. 3511. A bill sion to the United States. of certain persons to extend the provisions of section 1 (e) o1 who served In the Polish Army, and for other EXECUTIVE COMMUNICATIONS. ETC. the Civil Service Retirement Act of May 29, purposes; to the Committee on the Judiciary. Under clause 2 of rule XXIV, executive 1930, as· amended, until June 30, 1948; with­ communications were taken from the out amendment (:Rept. No. ol61). Referred MEMORIALS Speaker's table referred as fonows; to the Committee of the Whole House on and tbe State of the Union. Under clause 3 of rule xxn. memo­ 710. A letter from the Acting Secretary of Mr. ALLEN of Illinois: Committee on rials were presented and referred as fol­ the Navy, transmitting a draft of a proposed Rules. House· Resolution 218. Resolution lows: 'biU to amend the Armed Porees Leave Act waiving points of order against H. R. 3601, By the SPEAKER: Memorial of the Legis­ of 1946, approved August 9, 1946 (PubUc Law a bill making appropriations for the Depart. lature of the State of California. memorial­ 704, 79th Cong., 2d sess., ro Stat. 963), and ment of Agriculture for the fiscaL year end­ Izing the President and the Congress of the for other purposes; to the Committee on ing .Tune 30, IS48, and for other purposes; United States relative to extending pension Armed Serv1ces. · without amendment (Rept. No. 463). Re­ benefits to persons who served on certain 711. A letter from the Acting Secretary of ferred to the House Calendar. transport vessels operated by the Army dur­ the Navy, transmitting a draft or a proposed Mr. VORYS: Committee on Foreign Af­ ing the war with Spain, the Philfppine In­ bill to amend the act entitled "An act to pro­ fairs. House Joint Resolution 207. Joint surrection. and the China Relief Expedition; vide additional protection for owners of pat­ resolution proViding for membership and entS of the 'United states, and tor other pur­ to the Committee on Veterans' Afiairs. participation by the United States in the Also, memorial of the Legislature of the poses:• approved June 25, 1910. as amended, International Refugee Organlzatiton and au­ State of california, memorializing the Presi­ so as to protect the United States in certain thorizing an appropriation therefor;· with­ dent and the Congress of the United States patent suits; to the Ct?mmittee on the out amendment (Rept. No. 4M). Referred Judiciary. relative- to Federal operation of air-traffic to the Committee of the Whole House on control towers; to the Committee on Appro- 'll2. A letter from the Acting Seczetary of the State of the Union. the Navy, transmitting a dndt of a proposed priations. · bill to amend the Articles tor the Govern.., Also, memorial of the Legislature of the ment of the Navy to improve the adminis­ state of California. memorializing the Presi­ PUBLIC BILLS AND RESOLUTIONS tration of naval justice; to the Committee on dent and the Congress of the United States In relation to providing funds for a con­ Armed Services. Under clause 3 ~:f rule XXII. public tinued Federal-aid highway program; to the bills and resolutions were introduced and Committee on Appropriations. REPORTS OF COMMI'TTEES ON PUBLIC severally referred as fol1ows= Also, memorial of the Legislature of the BILLS AND RESOLUTIONS By Mr. BATES of.Massachnsetts: State of California, memorializing the Presi­ H. R. 3611. A bill to fix and regulate the dent and the Congress of the United S~ates Under clause a of rule Xlll, reports of­ salaries Of teachers, school officers, and other to enact H. R. 881 and H. R. 1199. granting committees were delivered to the Clerk employees of the Board of Education of the tax exemptions to those held prisoners by the for printing and reference to the proper District of Columbia. and for other purposes; Japanese; to the Committee on Ways and calendar, as follows: to the Committee on the District of. Co­ Means. Mr. CURTIS~ Committee on Ways and lumbia. Also, memorial of the Legislature of the Means. H. R. 468. A bill to amend section By Mr. GAMBLE~ Territory of Hawaii, memorializing the Presi­ 115 of the Internal Revenue Code in respect H. R. 3612. A bill to amend the SUgar Con­ dent and the Congress of the United States of distributions by personal 'nolding com­ trol Extension Act of 1947 so as to tenninate to enact the Wagner-Ellender-Taft bill, S. panies; with an amendment (Rept'. No. 454). the authority to anocate or ration refined 866. of the Eightieth Congress. first session: Referred to the Committee o-r the Whole sugar among users for home consumption; to the Committee on Banking and Currency. House oli the State·ot the Union. to the Committee on Banking. and Currency. Mr. WELCH: Committee ~n Public Lands. By Mr. KEAN: PRIVATE BU,LS AND RESOLUTIONS H. R. 3309. A bill to amend the Organic Act H. R. 8613. A bill to amend sections 1802 of Puerto Rico; with an amendment {Rept. (a.). 1802. (b), and 3481 (a) of the Internal Under clause 1 of rule XXII. private No. 455). Referred to the Commi,ttee of the Revenue Code; to the Committee on Ways bills and resolutions were introduced and Whole House on the State of the Union. and Mea.n.s. severally referred as follows~ XCill--367 5816 CONGRESSIONAL RECORD-SENATE MAY 27 By Mr. CANNON: Thy will. Give me only Thy love and ers at San Francisco and other municipal air­ H. R. 3621. A bill for the relief of Flavia Thy grace, and I am rich enough and ports; and ·Isldora Vieira Sauer; to the Committee on the desire nothing· more. Amen. "Whereas in the interests of public safety Judiciary. these air-traffic-control towers should be By Mr. KING: THE JOURNAL operated by personnel employed, instructed, H. R. 3622. A bill for the relief of the On request of Mr. WHITE, and by and controlled by one agency, so that air Franco-Italian Packing Co.; to the Commit­ traffic at all airports may have the benefit of tee on the Judiciary. unanimous consent, the reading of the standardized uniform control, without which Journal of the proceedings of Monday, national and international air commerce and May 26, 1947, was dispensed with, and PETITIONS, ETC. the lives of air-line pilots and thousands of the Journal was ~ppr~ved. passengers will ·be placed in jeopardy; and Under clause 1 of rule XXII, petitions MESSAGE FROM THE PRESIDENT "Whereas, however wllling municipalities and papers were laid on the Clerk's desk or other local organizations might be to bear and referred as follows: ~ message in writing from the Presi­ the expense of operating the control towers, 568. By Mr. BRADLEY: Petition of 163 citi­ dent of the United States was commu­ they could by no amount of cooper~tion zens of the Eighteenth Congressional District nicated to the Senate by Mr. Miller, one within their legal powers provide the uni­ of California, urging that communism in this of his secretaries. ' formity essential to such controls, serving as country _be stopped and stamped out com­ they do on air commerce so extensive that MESSAGE FROM THE HOUSE-ENROLLED · only an agency national in scope can pro­ pletely; to the Committee on Un-Amerlcan BILL SIGNED Activities. · · vide the centralization of control and super­ 569. By Mr. WELCH: Assembly Joint Reso­ A message from the House of Repre­ vision es~ential to safety; and • lution 37 of the California State Legisla­ sentatives, by Mr. Swanson, one of its "Whereas many cities are now spending ture, relative to extending pension benefits reading clerks, announced that the millions of dollars in modernizing airports · to persons who served on certain transport Speaker had affixed his signature to the for safety and convenience, the Federal Gov­ vessels opera ted by the Army during the War ernment should not defeat these programs with Spain, the Philippine Insurrection, and enrolled bill