t953 -HOUSE 2333 Also, memorial of the Legislature of the · By Mr. OSMERS: 114. Also, petition of Lithuanian Demo­ State of Colorado, memorializing the Presi­ H. R. 4252. A bill for the relief of Geralda cratic Club, Inc., of Newark, N. J., requesting dent and the Congress of'the United States, Lillo and Karl Heinz Lillo; to the Committee enactment of legislation to amend the social­ to consider }egislation allowing a Federal in­ on the Judiciary. security laws allowing payment of benefits come-tax deduction for certain military, Air - By Mr. POWELL: to everyone in covered employment upon . Force and naval reservists; to the Committee · H. R. 4253. A bill for the· relief of Walter their having attained the age of 60 years; to on Ways and Means. Adolphus Burke; to the Committee on the the Committee on Ways and Means. Also, memorial of the Legislature of the Judiciary. 115. Also, petition of Ibrahim Velutini, State of Minnesota, memorializing the Presi­ By Mr. ROGERS of Colorado: President, Caracas, Venezuela, relative to dent and the Congress of the United States, · H. R. 4254. A bill for the relief of Aneta legislation which would tend to reduce the with respect to Federal taxes on gasoline and Popa; to the Committee on the Judiciary. · importation of Venezuelan petroleum; to motor fuel; to the Committee on Ways and By Mr. SCUDDER: the Committee on Ways and Means. Means. H . R. 4255. A bill for the relief of Victor Also, memorial of the Legislature of the Manuel Soares De Mendonca; to the Com­ State of North Dakota, memorializing the mittee on the Judiciary. President and the Congress of the United By Mr. SIKES: States, relative ..to limiting influx of foreign H. R. 4256. A bill for the relief of Magda HOUSE OF REPRESENTATIVES agricultural products; to the Committee on Manoli; to the Committee on the Judiciary. Agriculture. By Mr. SMALL: THURSDAY, MARCH 26, 1953 H. R. 4257. A bill for the relief of Will­ more Engineering Co.; to the Committee on The House met at 12 o'clock noon. PRIVATE BILLS AND RESOLUTIONS the Judiciary. The Chaplain, Rev. Bernard Braskamp, By Miss THOMPSON of Michigan: D. D., offered the following prayer: Under clause 1 of rule XXII, private H. R. 4258. A bill for the relief of Katharina bills and resolutions were introduced and Steinbach; to the Committee on the Judi- . Most merciful and gracious God, grant severally referred as follows: ciary. that we may go forth in the hours of this By Mr. WESTLAND: day with a more adventurous and stead­ By Mr. BARRETT: H. R. 4259. A bill conferring jurisdiction . H. R. 4234. A bill for the relief of Alessan­ fast faith in Thee and in the. ultimate upo~ the United States Court · of Claims to triumph of the true and the good. dra Barile Altoboelli; to the Committee on hear, determine, and render judgment upon • the Judiciary. the claim of Spencer C. Clark for extra com­ We humbly confes~ that we so fre­ By Mr. BENDER: . pensation for Sunday, holiday, and overtime quently allow our faith to become H. R. 4235. A bill for the relief- of Edward services performed between 1929 and 1942; eclipsed by doubt · and by difficulties Zepp; to the Committee on the Judiciary. to the Committee on the Judiciary. which seem insurmountable. By Mr. BYRD: Help us to understand that if our ·H. R. 4236. A bill for the relief of Nahi faith is to be vital and strong, then we Youssef; to the Committee on the Judiciary. PETITIONS, ETC. must cultivate it and guard it, for eternal By Mr. BUCKLEY: Under clause 1 of rule XXII, petitions vigilance is the price of faith as truly H. R. 4237. A bill for the relief of Osjasz and papers were laid on the Clerk's desk Hersh Braksmajer (Sam Braksmayer), Rysa as it is the price of freedom. Margolit Braksmajer, and Mosher Braksma­ and referred as follows: Hear us for the sake of our· blessed Jer; to the Committee on the Judiciary. 107. By Mr. CANFIELD: Petition of the Lord. Amen. By Mr. CONDON: New Jersey Association of Nurserymen recording its vigorous opposition to the pro­ The Journal of the proceedings of yes­ • H. R. 4238. A bill for the relief of Mrs. Julia terday was read and approved. Adele Vence; to the Committee on the Judi­ posed changes relating to peat moss balls, and its support of additional restrictions ciary. governing such importations due to the ever By Mr. DEVEREUX: H. R. 4239. A bill for the relief of Arthur present danger of introducing new and dan­ COMMITTEE ON THE JUDICIARY gerous pests to the United States of America K. Jefferson; to the Committee on the Judi­ and the increased danger that would result Mr. GRAHAM. Mr. Speaker, I ask ciary. if the regulations of quarantine No. 37 wer'e unanimous consent that the Committee By Mr. DOYLE: modified as now proposed by the United on the Judiciary may have until mid­ H. R. 4240. A bill . for the relief of Arturo States Department of Agriculture; to the · night tomorrow in which to file a report Ordonez; ·to the Committee on the Judiciary. Committee on Agriculture. on the bill H. R. 4198. By Mr. HELLER: 108. By Mr. SMITH of Wisconsin: Reso­ The SPEAKER. Is there objection to. H. R. 4241. A bill for the relief of Oscar lution of the National Defense League of Neumann, Mrs. Magdalena Neumann, a~d America, Inc., to the end that the Congress the request of the gentleman from Penn­ Judith Gabrielle Neumann; to the Commlt­ of the United States of America as the duly sylvania? tee on the Judiciary. elected Representatives of all the people of There was no objection. By Mr. HOLIFIELD: this Republic, initiate action to cause im­ H. R. 4242. A bill for the relief of Mrs. Rosa mediate withdrawal of this Republic's mem­ Barroso De Orozco; to ·the Committee on the bership in the United Nations; to the Com­ REDUCTION OF MILITARY DOCTORS Judiciary. mittee on Foreign Affairs. H. R. 4243. A bill for the relief of Kuo Lum 109. Also, resolution adopted by Board of Mrs. ROGERS of Massachusetts. Mr. Leong; to the Committee on the Judiciary. National Trustees of the National Society of Speaker, I ask unanimous consent to By Mr. HUNTER: the Sons of the American Revolution that address the House for 1 minute and to H. R. 4244. A bill, for the relief of Ara Constitution Day be reestablished and the revise and extend my remarks and in­ Giragos Farajian; to the Committee on the resolution by Congress signed by the Presi­ clude therein an article by Mr. John G. Judiciary. dent on February 29, 1952, creating Citizen­ Norris in the Washington Post. By Mr. KEOGH: ship Day, be repealed; to the QQmmittee on The SPEAKER. Is there objection to H. R. 4245. A bill for the relief of Louis the Judiciary. the request of the gentlewoman fr'om Rizzi; to the Committee on the Judiciary. 110. By the SPEAKER: Petition of the Massachusetts? By Mr. MAILLIARD: city clerk, city of Indio, Calif., to provide H. R. 4246. A bill for the relief of Light funds for adequate hospitalization for the There was no objection. Liang-liang; to the Committee on the Judi­ needy and ill veterans of the United States Mrs. ROGERS of Massachusetts. Mr. ciary. Forces; to the Committee on Appropriations. Speaker, today's Washington Post says By Mr. MILLER of Maryland: 111. Also, petition of Edith Johnson, and that Defense Secretary Charles E. wn.: H. R. 4247. A bill for the relief of William others, Brockton Townsend Club No. 5, son has ordered a 9-percent cut in the R. Jackson; to the Committee on the Judi- Brockton, Mass., requesting passage of H. number of Army, Navy, and Air Force ciary. R. 2446 and H. R. 2447, social-security legis­ lation known as the Townsend plan; to the doctors. I only hope that he is right in By Mr. MORANO: Committee on Ways and Means. ordering that cut and that the doctors H. R. 4248. A bill for the relief of Albertas 112. Also, petition of Mrs. E. E. McNeely, are not needed. Our forces in Korea Bauras; to the Committee on the Judiciary; and others, of Orlando, Fla., requesting apparently have had a shortage of arms By Mr. MORRISON: passage or' H. R. 2446 and H. R. 2447, social­ and ammunition, but they have had the H. R. 4249. A bill for the relief of Mary Wy­ security legislation known as the Townsend shoff; to the Committee on the Judiciary. most excellent meout the kind of union or confederation for their dog walking on its hind legs," one Stras­ (By John G. Norris) . l:>ourg first-timer said. "It is not done well, Defense Secletary Charles E. Wilson has mutual defense and benefit. This first meeting was immeasurably exciting, re­ but you are surprised to find it done at all." ordered a 9-percent slash in Army, Navy, THE DIFFERENCES and Air Force doctors and proposes skeleton­ minding one of the accounts of our own izing 4 or 5 of the 7 Army divisions· in this Constitutional Convention, which was a What is different about this new European country. forerunner of the union of the Colonies constitution as opposed, say, to the 1949 Pentagon officials said that Wilson feels model, the Council of Europe Treaty. and the drafting of the Constitution of In a sense the differences are more in­ that with 750,000 young soldiers leaving the the United States. service this year after 2-year draft periods, herent than they are apparent. You can combat units in this Nation's mobile re­ Anyone making comparison of these look at this new draft constitution of 116 serve can well be cut to as much as half two amazing efforts to bring together articles, a.nd you can say, "This means strength. The new veterans, many of people of different backgrounds must be nothing," or "That is impractical," or "This them fresh from Korean combat, would be aware of the fact tha.t in the case of the­ won't work." available for quick recall to fill out the divi­ American Colonies they had just been On the ot-her hand, you can also say about sions in case of any new war, he argues. successful in a war of independence. In the same articles and the same ideas, "This Army chiefs oppose his plan and the. plan the case of Strasbourg, although the Eu­ is workable," or "This might grow into some­ still is not resolved. Wilson, however, is thing." ·known to be pressing for approximately a ropean nations, too, had recently united Where the Council of Europe statute sets 10-percent cut in the present 3,500,000- and waged successful war against a up a confederation of 15 countries and rather­ man-plus armed services. powerful enemy, there was little in their rigidly define·s the competence of the assem­ The doctor cut, however, already has re­ history but bitterness, suspicion, and pe­ bly of that federation by the principle of ceived a go-ahead signal from Wilson. It riodic war with each other. Add to this unanimous endorsement, the six-nation con-· will mean lower draft calls for physicians, the fact that they did not speak a com­ stituti_on is more flexible in l:>oth directions. and reducing the number in the Armed mon language, and one sees that the sit­ For example, article 81 of the constitution Forces from the present 13,300 to about uation they faced in seeking some form states: "The community shall establish pro­ 11,900. gressively a common market among meml:>-er. A spokesman for the Armed Forces Medi­ of unity was very difficult indeed. states, based on free movement of goods, cal Policy Council said it already had in­ Mr. Speaker, on the 15th of this month capital, and persons." In conjunction ·with structions to lower the ratio of doctors from there appeared in the New York Herald this article 50 states: "The community shall 3.7 to 3.5 per thousand and will call for Tribune, over a Strasbourg dateline, a E_lnact legislation in the cases provided for only 1,200 instead of 1,800 young medical most interesting story of what has just in the present statute." men in the second quarter of calendar 1953. taken place there, 4% years after that It can be argued that this is vague, but There has peen no discussion on cutting the first epoch-making meeting in the late equally it can be argued that with skill and number of dentists and v~terinarians to be summer of 1949. It is an exciting story, hard work this can be as vital and dynamic called. a constitutional provision as the general Wilson's plans to reduce the Armed Forces giving the stirring news that "at the end clause of the American Constitution, from to something like 3,300,000 would require of 4 days' debate the draft treaty was which the powers of . the American Congress about 600 fewer doctors and lower draft approved by a vote of 50 to 0 with 5 evolve. It can be seen that the parliamen­ calls. Even so, the Defense Department still abstentions." tary machinery, and the reserve powers of will need to induct medical men, and has · The treaty referred to is a European governments to delay, block, or hamper leg­ sent to the Bureau of the Budget legislation constitution to link six nations in a islation can render the constitution null if to extend the special doctors' draft until supranational political federation. The not void, but equally it could work the 1955·. nations are France, Holland, Belgium; other way. Pentagon spokesmen also said yesterday 50 0 Luxembourg, West Germany, and Italy. VOTE IS TO that, in accordance with long standing At the end of 4 days' debate the draft was plans, draft calls will taper off after July 1. The ayes included German Christian approved by a vote of 50 to 0 with 5 absten­ . Only 450,000 men will be needed from se­ Democrats and French Centrists, Italian tions. The ayes included German Christian lective service during the fiscal year begin­ rightwingers, and Belgian leftwingers. Democrats and French Centrists, Italian ning in July-an average of 37,500 a month. It was a remarkable and an unexpected rightwingers and Belgium leftwingers. It This compares with 53,000 monthly now and vote, one which all thoughtful people the was a remarkable and an unexpected vote, 47,000 last fall. The reason, however, is that world over should herald with joy. but the reason in hindsight seems to l:>e that heavy calls now are necessary to replace the Surely it brings .an increasing hope for everybody had been working to the same heavy monthly inductions right after Korea. ideal if not the same ideas. Later, calls were lowered and the number European unity, a step toward a free When all was said and done, and when the of men required to replace those leaving the world. French De Gaullists had argued against the service next fall and winter after 20- to 24- Mr. Speaker, under unanimous con­ Dutch Liberals, the result was a sharpening . month draft periods will tie less. (Many sent, I insert the Herald Tribune article:. of the work rather than its diffusion. men returning from Korea are released The debates took place in the Council of ahead of the required 2-year draft tour.) SIX-NATION CONSTITUTION-STRASBOURG VOTE ON DRAFT TREATY Is FmM STEP TO EUROPEAN Europe Building, a long, white structure, UNITY which, if not a distinguished piece of archi­ SPECIAL ORDER GRANTED tecture, is nevertheless one of the most pleas­ STRASBOURG.-For 4 years now European ant and efficient bui!dings of its kind. parliamentarians, politicians, and ministers Mrs. FRANCES P. BOLTON asked and The assembly hall is excellent acoustically was given permission to address the have been regularly sweeping in and out of this fine old Alsatian city in the name of and visually. The lounges are comfortable House for 5 minutes today, following the Europe unity. They have had about the and the press facilities first class. This phys­ special orders heretofore entered. same effect as a gentle tide that recedes and ical fact, plus the excellent cuisine of Stras­ leaves the shore a little damp, soon to dry l:>ourg and its 'blend of · French-German out, l:>ut otherwise unchanged. speech, culture, and background, has been EUROPEAN UNITY COMES A STEP an important magnet these last 4 years. CLOSER TO PRACTICAL REALIZA­ Last week in Strasl:>ourg it was different. TION . The difference was one of vitality, of a THE ROLE OF FOOD sense of purpose and direction, and most of "The way to European unity is through Mrs. FRANCES P. BOLTON. Mr. all a feeling of achievement-that at last the stomach," a German remarked over a Speaker, I ask unanimous consent to ad- something solid had happened in Strasl:>ourg. meal of pate de fois gras and Coq au Reisling. 1953 CONGRESSIONAL' RECORD -- HOUSE 2335 Whatever the substance of the remark, It Is certainly true that the Strasbourg habit is · :But -it i~ aiso my ~pinion that the If we permit a 10-percerit drop in our one that parliamentarians from all over Government, through ECA so-called price level, we will lose $29 billion of Europe unanimously have enjoyed, whatever fpreign · aid, also contributed to this .income. In like manner, if we lose 10 the importance of the work they have gouging of consumers. percent of our production we will also done here. · On March 29, 1950, I pointed out here lose $29 billion of income. Our first step Now these men who have debated and in the well of this House, that the ECA then in maintaining a prosperous and approved the draft of a new constitution feel in 1949, purchased 61,000,000 pounds of a sense of accomplishment as well. They solvent United States is to maintain both left here in a remarkably determined mood, coffee at a cost of more than $16,000,000 our production and our price level. for the most part, to keep the heat on their for shipment to foreigners. · In the year 1952 we spent about 96 governments at home and not let their good I contend that this fantastic coffee percent of our income in supporting our work strangle in the slow mechanics of gov­ deal on the part of the ECA helped spec­ domestic economy and about 4 percent ernment ratification. ulators pry the lid off coffee prices and was JfSed to buy products imported from everyone knows these prices have never the rest of the world. There has been been the same since. a lot of propaganda during the past 6 AID FOR MIDDLE INCOME HOUSING . A committee of the other body has in­ months to initiate a program of trade, Mr. JAVITS. Mr. Speaker, I ask vestigated coffee prices but as far as I not aid, to help the rest of the world. unanimous consent to address the House know there has been no effort to ascer­ Under this program our tariffs are to be for 1 minute and to revise. and extend tain why, in the name of food relief for reduced so as to make room for cheap my remarks. foreigners, the ECA used more than imports from other nations. The SPEAKER. Is there· objection to $16,000,000 of the taxpayers money to Let us examine this type of program. the request of the gentleman from New buy 61,000,000 pounds of coffee to give I have pointed out that 96 percent of our York? away to foreigners. income in 1952 was utilized in the do­ There was no objection. Mr. Speaker, even at· this late date mestic market and 4. percent to buy Mr. JAVITS. Mr. Speaker, I am to­ some committee of this House ought to imports. If we expand our domestic pro­ day introducing a bill to provide $3 bil­ ascertain why the ECA bought this cof­ duction 10 percent, we affect 96 percent lion in credit to middle income hous­ fee and to what extent this deal aided of our national income. If we expand ing and to guarantee an interest rate of the speculators in skyrocketing the price our imports 10 percent, we affect an ex­ 4 percent. I do this by providing that of coffee. pansion of only 4 percent of our na­ Fannie May, the Federal National tional income. Stated in another way, Mortgage Association, shall have author­ THE ECONOMY OF THE UNITED the ratio of our economy in terms of do­ ity to repurchase mortgages placed on STATES _ AGRICULTURE _ OUR mestic trade and foreign trade is 24 to 1 middle income housing under section in favor of domestic expansion. 207 of the National Housing Act, which FISCAL POLICY Expansion of our domestic production is housing for rental, and under section Mr. JENSEN. Mr. Speaker, I ask and income will automatically increase 213, cooperative housing, all for middle unanimous consent to address the House. our needs for more imports of materials income families. · The SPEAKER. Is there objection to in short supply. This is not true of an Mr. Speaker, there are still 28 million the request of the gentleman from Iowa?. expansion in our imports of cheap rna­ units in the United States under rent There was no objection. terials. Expansion of our imports could control. This shows that in the big city Mr. JENSEN. Mr. Speaker, the course easily break down our price level 10 per­ there is a great housing emergency; in of human events haS' placed the United cent, if these i~ports are permitted to fact, people are moving out of the big States in a position of world leadership. come in below our American cost level. cities and going to smaller places-those Our ability to utilize our position to bet- If such a reduction in otir price took who can afford to buy homes. The ter the economic situation in the rest of place we would lose $29 billion or far whole FHA and VA picture shows that the world will depend upon a thor·ough more than any possible benefit we could we put some $38 billion-! repeat that t.mderstanding of our own economy. obtain through the expansion in imports. figure-$38 billion into more than 6 mil­ The economy of the United States has In my opinion we · have no right to lion individual mortgages, into credit given our people the highest standard of force any American producer to go out backing for home ownership. I think living of any nation in the world. We of business because of imports produced the least we can do is to put $3 billion, have a little over 6 percent of the world's with a lower wage level and a lower tax 10 percent of that, into cr.edit to back up · population and produce approximately level. In helping the world in the past, city apartment dwellers who today are 25 percent of the world's goods. Due to we have brought about $270 billion of moving out of cities because they can­ the fact that we have a greater per man national debt. At the present time the not find apartments to rent within their production, we also have a greater turn- American producer has to pay approxi­ means. over of money in trade channels and mately 25 percent of the national in­ This is private enterprise; it is noth­ with a production of 25 percent of the come to the Federal Treasury. Pro- . ing but the underwriting of 4 percent world's goods we generate 45 percent of ducers in other lands do not have to mortgage money in the traditional way the income of the world in terms of support the costs of our Government. in which the Government has done it. I dollars. For example, here is an illustration. believe it is a duty which the Congress With this tremendous buying power, Companies producing alumi.num have to urgently owes the American people. we consume about 50 percent of the pay 6 cents per pound to the Federal world's mineral production such as lead, Government in taxes for the privilege copper, zinc, manganese, coal, petroleum, of producing in the United States. In THE COFFEE RACKET and so forth. Therefore, we find that all fairness to these producers, an im­ Mr. GROSS. Mr. Speaker, I ask ·the prosperity of the world is largely de- port fee or excise tax of 6 cents per unanimous consent to address the House pendent upon the buying power of our pound is merely a matter of equity and for 1 minute and to revise and extend American economy and if we wish to fair treatment for our own source of my remarks. help the world into a new. era, the most production and income. The SPEAKER. Is there objection to important step in operating our· own Our American economy has had in­ the request of the gentleman from economy is to keep it solvent, productive direct price supports since its begin­ Pennsylvania? and prosperous. ning, the first session of Congress hav- There was no objection. . In · the year 1952, the United States ing passed a tariff act as a source of Mr. GROSS. Mr. Speaker, with coffee had a national income of $291 billion• • Federal . revenue and as a protection prices now at or scraping $1 a pound, We obtained this income in two ways. against exploitation of our markets. housewives of this country are entitled :fllrst, by producing a certain number of Free trade in addition to meaning a loss to know who is doing what to whom and units of goods and services; and second, of revenue from import fees also means why. by multiplying this production by the to remove all protection for our price There is no question in my mind but 1952 price level. Many of our theorists level. what speculation has played a part, per­ forget that we must maintain our pro- The effect of such a step should be haps a major part, in tnis victimizing duction and price level if we are to retain self-evident. The United Nations re­ ·of housewives and the consuming public. the $291 billion of national income. leased· a report which states that the XCIX--147 2336 CONGRESSIONA1 RECORD - HQUSE March 26 annual income of two-thirds of the little. producers have a right to protec­ and our agricultural production times world's population is $200 per capita. tion and if permitted to continue they ,our agricultural pri"ce level is the source Free trade would mean that our price may some day be large industries. Under of our national income. For the past 30 level would have to be determined by free trade we would automatically set the years each $1 of gross farm production the average buying power of the rest of stage for a few large industries to take has resulted in $7 of national income. the world. advantage of their position in world To be exact, in the period 1929 to 1952, In the United States the average in- markets, while the many small busi­ inclusive, the ratio has been $7.06 of dustrial wage is sufficient to make each nesses in the United States would be national income for each $1 of gross worker a potential buyer of an automo- forced to close. farm income. The ratio is irrefutable bile. Two-thirds of the world's popu- · Our income depends upon two factors, and unless we recognize its importance, lation with an average annual income of production and price. Displacement of we will fail to take the steps to prevent $200 cannot pay the operating costs of our production through imports or the another depression. driving the autoJnobile if we give them breaking down of our price level will Our business leaders in discussing the one as a gift. mean a loss of national income and in drop in farm prices do not realize that It has long been recognized that the turn a bankrupt nation. I, as a Member our national income is going to drop $7 rest of the world has been short of food. of Congress am not going to vote for leg­ for each $1 that farm income has fallen Free trade would mean the flow of food islation which will destroy our income off. Because of this seven times turn of to the United States, forcing other na- and our economy. gross farm income into national income, tiOnS to do WithOUt. Instead Of help- THE AGRICULTURAL INDUSTRY we must stop thinking in terms of the ing .them we would force them to starve The drop in farm prices has again sent costs of farm price supports. We should while our own producer would have to fear through our agricultural szctions. be thinking of the ioss the Nation will suffer lower prices, Lower prices in the It should send fear into the hearts of suffer. United States would mean national every American. Constant falling farm Let me illustrate. In the period bankruptcy and this in turn would de- prices indicate that we are again head­ 1930-41, because the United States did stray the only remaining foundation for ing into a depression. Let us not shut not maintain the 1929 farm price level, world recovery. our eyes to that.fact. we took a loss of over $500 billion of na­ Another factor we must remember in The Members of Congress should be tional income. addition to our national debt is our pri- asking themselves the question, Can we In 1948-49, we had what some folks vate debt. Domestic producers have stand another depression and win the call a recession. The record reveals that had to buy and use materials on an battle against communistic ~ggression? the United States lost $20 billion of in­ American wage and cost level. These I think most of you will say we cannot come which we would have had if 1948 materials have been used in expanding permit it to happen. But it is happening farm prices had prevailed. The record our factories, farms, and mines. Yes, in the same way that we had a depres­ is clear in its proof of this loss. In the these costs have also gone into homes, last quarter of 1948 our level of national the mortgage in many cases underwrit- sion in 1920, in 1929, in 1938, and in 1949. What prevents us from taking the steps income was $234.3 billion. By the last ten by the Government. t t t f quarter of 1949 it had dropped to $214.2 In 1939, our total public and private 0 preven his recurrence of low arm prices? billion. · debt was $185 billion. In 1952· this total In my opinion, it is the lack of under- The loss was entirely due to the drop reached $540 billion. This debt cannot in farm income of about $3 billiori. The be repaid out of a price level determined standing on the part of society. The wage level of our industrial workers from · f th citizens of this great Nation and many by slave labor in many nations 0 e of our business leaders do not realize the 1948 to 1949 was raised 5 cents per hour. world. Therefore, the loss cannot be blamed on Unless we wish to have our Nation go importance of agriculture. Let me lower wages. In spite of this raise of 5 into an economic collapse we must rec- briefly point out to you the real meaning cents per hour labor had to take its cut. ognize realities. Free trade will destroy of this drop in farm prices. The cut came in a drop in our industrial our price level. we must, therefore, On January 1, 1952, the agricultural payrolls. Enough men had to be laid off find some other solution and I feel that industry had a capital investment of either entirely or part time to make the we· can find an answer to our trade with $168 billion. This total is approximate­ adjustment to meet the drop in national other nations while at the same time ly- four times the capital investment in income of $20 billion. protecting our own producer and, of our railroads, our steel industry and our Our total industrial production in 1949 greater importance, our national income. automobile industry. In spite of this was cut back 9 percent below the 1948 The answer to our trade problem is huge capital investment our business level and this in terms of 1948 national equity of trade. We should at all times leaders do not look upon agriculture as income was equal to $20 billion. The stand ready to pay the world a compara- an industry. Therefore, they are unwill­ amazing thing about it all is that our tive price for imports which we need to ing to concede that the agricultural in­ economists in Government and business supplement our own economy. dustry in order to operate efficiently and have failed to mention this loss of $20 For example, Congress in 1948 passed to expand as a foundation for the future billion and called it a slight recession. the Sugar Act. Under this act, through growth of the United States must have a Of interest to me · is ·the comment ot quotas and duties we protect our domes- price for its production which will per­ eastern newspapers regarding the drop tic sugar producer and at the same time mit it to operate with the same profit in cattle prices. They hail the drop with we permit sugar imports, equal to about which other industries expect as their delight and think in terms of cheap 70 percent of our needs to come in from natural right. meat. They fail to realize that the loss other nations at a fair price to them. Since the 1938 Farm Act was written, in gross farm income as a result of lower Wool could be used in a similar illus- the price which the farmer is entitled to· cattle prices will force a loss of seven tration. We import about 70 percent of receive has been designated by Congress times that amount in national income. our . requirements. Assuming that 60 as parity. Parity in business terms Yes, it may be the first step into another cents per pound is the American cost means the cost of production plus a depression, a depression that may exceed level, no wool should be permitted to profit which is equal to the average of the terrible conditions of unemployment come in for less than 60 cents. On the all other industries in the United States. which we experienced in the thirties. other hand, we should be willing to pay Opposition to such legislation has been What can Congress do to prevent a de­ a comparable price for imported wool, widespread and again I wish to state it is pression? We can take steps to restore thus creating the dollar exchange for due to lack of understanding. If society our farm-price structure and stop this other nations to buy an equivalent • realized that parity prices for our agri­ unnecessary danger of economic collapse. amount of our goods. . cultural production is a must in any pro- VIe can demand that those who admin­ As a , I have taken gram of prosperity and economic expan­ ister our farm program take the positive an oath to protect the welfare of the sion and that farm income is the founda­ steps which need to be taken to not only American people. I do not feel that I tion which supports and protects the make the 90-percent price supports ef­ have the right to permit the pa~sage of markets for our industrial production fective but in addition to yield 100 per­ legislation which will destroy some and the wages of our workers, this oppo­ cent and thus.restore the foundation for American industry and thus create a sition wouid vanish. the national income we will need to bal­ market for imports from nations with a Briefly here are the facts. The agri­ ance the budget and meet our obliga-· low wage and cost level. To me these cultural industry is our basic industry ti6ns. 1953' CONGRESSIONAL RECORD -- HOUSE • 2337 The first step · in -_getting · the proper entire Nation against economic collapse. brought about by the drop in our price . administration in my opinion is to de~ It is time to face realities before it is level and the loss of national income. mand a full-fledged· investigation of the too late. Of course, we can assume that the cost of living. The unwarranted cry of OUR FISCAL POLICIES price drop will not come. But what as­ high-livin·g costs cannot be substan- As a member of the Appropriations surance have you and I, as Members of tiated. · Committee, I would like to make a few Congress, that the price drop will not · In 1939 the American public spent 21.8 comments upon our fiscal policies. Dur­ take place? The answer is none unless percent of its income for food. The per­ ing the 1952 political campaign, theRe­ we take the steps to stabilize our prices centage of national income spent for food publican Party promised the people, that at a level which will assure the continua.; in 1951 and 1952 was also 21.8 percent. if elected, we would balance the budget tion of the $291 billion of national The point I wish to drive home is that in and bring about tax reduction. income. · the turn of farm income into. national The matter of balancing the budget In the period from March 1951 to the income, the cost of living does not de­ can be set out in very simple terms. present, the price of 35 leading raw ma­ crease when farm prices drop. It is true We must cut back appropriations to meet terials-Associated Press Index, 1926, as that those who retain their jobs in a de­ the tax revenue or we must increase the 100-has dropped 17 percent. What as­ pression have a lower living cost for food tax revenue to meet the appropriations. surance have we that it will not drop and other items. But, if they had to I am concerned, however, with the another 17 percent in the next 2 years? pay the taxes to keep those who are dis­ economic factors which enter into the We have none. employed as the result of lower farm probl.em of having a sound fiscal policy. Our situation as representatives of prices they would have an increase in In the year 1952 we had a national in­ the people of the United States forces us their cost of living. For example, in 1932 come of $291 billion. The Federal reve­ to answer this question, How can we talk with farm prices at their low point since nue represented about 25 percent of this about balancing the budget or reducing 1929, it required 27 percent of the na­ total. the taxes when we do not have the tional income to pay the food bill in the slightest idea of what our national in­ United States. Tax levies, in many cases, are at a very high level and there is not much incen­ come is going to be 12 months from now? The second reason why an investiga­ Are we not just as helpless as babes in tion to explode this fallacy of high costs tive left for many of our corporations· to expand their dollar volume. Many the woods? of living is necessary, is to head off a What can we do· about it? is the next :inove to bring in cheap products from corporations have had a reduction in their net income, or income after taxes, question. Article I, section 8, of· the other nations. Our economists talk Constitution of the United States, gives about these cheap imports in terms of even though their volume of production has increased since 1950. Congress the right to coin money, regu~ efficiency of foreign producers when in late the value tbereof and to regulate fact it is the results of low wages and The problem that I · want to call to your attention is the matter of national foreign and domestic commerce. The lower taxes. matter of our price level falls directly The American farmer is the most effi­ income. My committee is meeting day after day discussing various appropria­ into the problem of regulating dollar cient ·in terms of per man production in values. We cannot have a stable dollar the entire world. Because of his em­ tions. Supposing that after a few unless we have price stability. ciency the American people need spend months we agree on total appropriations, Our first step in balancing the budget only 21.8 percent of their income for food what assurance do you and I have that should be price stabilization as an assur­ as compared to 70 percent in Europe and the money will be available? · ance that we will have the income upon over 90 percent in India and China. Let us assume that during the next which to levy the taxes we need. There The facts are that because of this low 12 months the price level for our pro­ is no question aqout our ability to pro­ food cost in the United States the Amer­ duction falls off 20 percent. This will duce and if we take the steps to stabi­ ican people have about 78 percent of mean a drop of $58 billion in national lize our price level there need be no doubt their income to spend for cars, radios, income. On the basis of tax levies repre­ as to the income we can create by our television, vacations and· those things senting 25 percent of the national in­ production. which make up our American standard come this would mean a loss of $14.5 What steps can we take? We can of living. The people of other nations billion in tax revenue. Our supposedly through price supports, patterned after are lucky if they have enough left to balanced budget would vanish in thin the price supports for agriculture sta­ buy a bicycle. air. bilize our price level for basic raw mate­ To illustrate the efficiency of the Due to the fact that most of our tax rials from our farms and mines at the American farmer let me make this point. revenue depends upon income, a drop American cost level. This in turn will Since 1929 the per man production of of $58 billion in our nat~onal income support the nationa! income and the the average worker in the agricultural would mean a much greater loss than market for our production and support industry has exceeded that of the aver­ $:!.4.5 billion as losses are deducted from the price of these raw materials at the age industrial worker with the advan­ operating income. proper level as they move through our tage of management and mass produc­ Since 1946, we have had an increase economic cycle to_the consumer level. tion. of approximately $130 billion in our pri­ These price supports should be looked It is lucky for all of us that this has vate debt. This debt was created in the upon as a support of our national income been the case. Over 70 percent of all expansion of our productive economy. and as the support for our fiscal policies. goods sold -at retail are made up of food, Some money was spent in building fac­ You have the right to ask, What will beverage, shoes, clothing and tobacco. tories at an American cost level for wages it cost? Supposing a program of stabi­ It follows that 70 percent of all labor in and materials. Other sums were spent lizing our raw-material prices brought the United States is engaged in produc­ for farm buildings, farm equipment, fac­ about a loss of $3 billion a year? To ing, processing and distributing farm tory equipment, homes and Government charge this off against a national income products. To reduce farm prices means construction. of $291 billion would still leave us with to reduce directly the dollar income of The cost of this borrowed capital must $288 billion of national income. every step in the movement of farm be met out of income and in the event The next question which I would like products through our economy. that our price level dropped 20 percent, to ask is, Would it not be good business Farm price supports are in reality a this cost would have to be met out of a to spend $3 billion to protect ourselves support for our national income and a reduced income and the loss to our Fed~ against loss of the $58 billion I have men­ support for the future growth of our eral Treasury would pyramid. tioned or against a loss of $150 billion economy. We cannot expand to any In case of a price drop, we would have of national income if we should fall back greater extent than the foundation built unemployment and the Government to 1939 ·price levels? for expansion by the agricultural indus­ would have· to pay unemployment com­ Our experience with farm-price sup­ try. pensation out o:! an empty Treasury. ports would indicate that the cost is In denying the farmer a parity price The Government has guaranteed the small, indeed, compared to the benefits for his production, we deny ourselves repayment of billions of dollars of hous­ we would receive. . the national income we need for · pros­ ing loans. These loans will have to be If · we as a nation can appropriate perity and economic growth. Once that guaranteed out of an empty Treasury. $50 billion a year in military equipment message is driven home, we will be glad The point I wish to make is that these to protect us against a possible war, why to spend a few dollars to protect our past obligations ·will add, to the deficit should we argue about an economic step ·2338 CONGRESSIONAL RECORD-= HOUSE . March 26 · which will assure us of the income wi.th adequately cover each aspect and duly state that I .will continue to follow that which to pay for the war materials and protect the health of the people. course. However, I will not follow it to at the same time protect us against the the point of seeing the destruction of ' the policies and programs of this Gov­ economic collapse-that would destroy our CIVIL SERVICE REGISTERS abilitY. to defend ourselves? ernment designed to aid and benefit the Finally, I want to repeat, at the pres­ ·Mr. RHODES of Pennsylvania. Mr. average people of America. The de­ ent time the Congress of the United Speaker, I ask unanimous cons~nt to struction of a great program may be States has no assurance that we will address the House for 1 minute. brought by a policy of neglect, or a continue to have the present price and The SPEAKER. Is there objection to policy of boring from within, or by direct income level. In fact, there are many the request of the gentleman from · assault. If it be the purpose of this indications today which indicate that we Pennsylvania? administration to abolish RFC, I hope are headed for lower prices. , There was no objection. it will adopt the method of the direct Mr. RHODES of Pennsylvania. Mr. assault sci that the American people may Should lower prices force' our income Speaker, yesterday it was announced by downward, all our glib promises of a bal­ be informed of the trend of thinking of Mr. Philip Young, new Chairman of the those who mutilate the body. anced budget will not be met. We will Civil Service Commission, that eligibility have less taxes, but the reduction will In this particular field, the cat is out lists for 1,700 postmaster jobs have been of the bag. The administration has come about through inability to pay discarded and that new examinations rather than a lower tax levy. made its objective clear. It is appar­ were scheduled. This announcement has ently willing to substitute high interest the effect of breaking two campaign rates and hard terms for the fairly SPECIAL ORDERS GRANTED promises with a single blow. liberal lending policy, throngh which Mr. Young's announcement to discard RFC accomplished its good over the Mr. HOSMER asked and was given civil-service registers comes only a few period of its 21 years. permission to address the House for 30 days after taking his oath of office. The To me it is unthinkable that .this ad­ minutes today, following the legislative result of his decision will cost the tax­ ministration would kill, or even cripple, program and any special orders hereto­ payers $200,000 or more for the new ex­ an agency that has done so much to fore entered. aminations. In some cases, it required a strengthen the fabric of our free-enter­ Mr. VINSON asked and was given year for the civil-service examiners to prise systein. permission to address· the House for 10 complete their work. To throw out 1,700 Not only has the RFC not cost the minutes today, following the legislative registers is not the economy that the American taxpayer any money, but· in­ program and any special orders hereto­ American people have been promised. It stead, according to its chairman, Mr. fore entered. is spoils system politics and a step toward McDonald, it has earned for him nearly breaking down civil-service system. · $1 billion. Mr. Young and the administration I do not believe the American public AMENDMENT TO FEDERAL FOOD, cannot escape blame for this unwise-de­ DRUG, AND COSMETIC ACT will welcome this proposed action as cision. Again, all the rosy promises are being good business on the part of the Mr. MILLER of Nebraska. Mr. Speak­ disappearing into the air. This time "business" administration which was er, I ask unanimous consent to address it is on civil service and again on econ­ promised them. the House for 1 minute and to revise and omy. extend my remarks. On this matter I have no interest The SPEAKER. Is there objection to whatever in party politics. Our Repub­ SPECIAL ORDERS GRANTED the request of the gentleman from lican friends will soon learn that this Mr. HAYS of Ohio asked and was given Nebraska? type of political patronage does not make permission to address the House· for · 20 There was no objection. political friends. My concern is for minutes on Monday next, following any Mr. MILLER of Nebraska. Mr. Speak­ good government and to protect and special orders heretofore entered. er, I have introduced a bill today which I strengthen the merit system and to stop Mr. YATES asked and was given per­ am quite certain will meet with the ap­ this kind of wasteful spending. mission to address the House for 15 min­ proval of every person affected. The bill I believe the civil-service system needs utes on Monday next, following any spe­ would amend the Federal Food, Drug, improvement. The administration is en­ cial orders heretofore entered. and Cosmetic Act in respect to pesticides. titled to have and to control all policy­ Mr. YATES. Mr. Speaker, I ask unan­ At present, the law is quite hazy and making jobs. But where is the line to be imous consent that the special order cumbersome. It does not protect the drawn? Is the civil-service system to be granted to the gentleman from Texas health of the people as it was designed to wrecked under the guise of improving it? [Mr. PATMAN] for today be transferred do, but places a millstone ~round the I am sure the people do not want a re­ to Monday next. neck of industry whether it be farming, turn to spoils system politics. I .am The SPEAKER pro tempore il~, H. R. 4199, ~o such investment. trade. and commerce. 2340 CONGRESSIONAL RECORD·- HOUSE March 26

MEMBEilSHIP OF THE COMMISSION members with such powers and duties as and the· Gray report and so on. I am SEc. 3. (a) Number .and ap_pointment: The may be delegated thereto. sure the gentleman is thoroughly ac­ (b) Hearings and sessions: The ~ommls­ Commission shall be composed of ~4 members quainted with all that. I think what as follows; 'Sion, or any committee thereof, may, for the the gentleman needs to deal with, if he ( 1) Ten ·a_pp-ointed by tbe President of, tbe · purpose of carrying out the provisions of this act, hold such hearings and s:.t and act at . will permit my saying so, is that witn United States, four from tbe executive the normal feeling here as the gentle­ branch of the Government, and six froin .such times and places, lDld take such testi­ private "life; · mony, as the COmmission or such commit­ man and I so well know, where our Mem­ (2) Two Members -of the Senate appointed tee may deem advisable. Any member of bers want to look with a rather critical by the Vice President; and , the Commission may administer oaths or eye on all new commissions, in view of (3) Two Members of the House of Rep.re­ affirmations to witnesses appearing before this record of commissions that ha-ve al­ sentatives appointed by tne Spea"ker. the Commission or before any committee ready functioned and are in contempla­ (b) Political afHltatiDn: Of eacn class of thereof. tion now, I think the gentlemen needs members, not more -than one-half snall l;>e (c) Obtaining official data: The Commis­ sion, or any committee the:teof, is author­ to make very clear where this particular from each of th-e "two "'lllajor polit1ell.l -parties. idea of the gentlemen fits, and why it is (c) Vacancies: Any 'Vacancy in the Com­ ized to secure directly from any executive mission shall not affect jts _powers, but shall department, bureau, agency, board, commis- needed now in view of all of these other be filled in the same ·manner in which the . sion, office, independent establisnment, or activitles. · I hope the gentleman under,­ original appointment was made. instrumentality information, suggestions, stanas that I say tlrat only to lead his l estimates, and statistics for the purpose of ORGANIZATION OF .XHE COMMISSION thoughts in a direction which may get this act; and each such department, 'bu­ him results, and I do not at a11 intend SEc. -4. The Commission .shall elect a .reau, .agency, board, commission, office, es­ chairman and a vic.e chairman from .among tablishment, or instrumentality is author­ my remarks to be critical. I compliment its members. ized and directed to furnish such informa­ the gentleman on his understanding of QUORUM tion, suggestions, estimates, and statistic.s the fact that this is perhaps the keystone SEC. '5. Eight members of·.the Commi1!ision directly to the Commission, or any commit­ of all American foreign policy. shall constitute a quorum. tee thereof, upon request made by the Chair­ Mr. MEADER. Mr. Speaker, I thank man or Vice Chairman of the Commission or COMPENSA"TION OF MEMBERS OF THE the gentleman for his remarks, and the COMMISSION of tne commtttee concerned. question he raises is one that I did in­ (d) Subpena power: The Commission, or SEC. 6. (a) Members of Congress; .Members any committee thereof, "Shall have power to tend to dea1 with later on in my remarks. of Congress who are members of the Com­ require by subpena or otherwise the attend­ However, s1nce he has raised the ques­ mission shall serve without compensation in ance of witnfsses and the production of tion of other activities in this general addition to that received for their services books, papersJ and documents; to administer .field, I think it is appropriate now to .as .Members of Congress; but they sball be oaths; to take "testimony; to have J>rinting refer briefly to these other activities. reimbursed for travel, subsistence, and other and binding done; and to make such ex­ I .am aware of the work that the gen­ necessary expenses incurred by them in the penditures as it deems act.visable within the performance of the duties vested in the tleman has referred to, the Gray report, amount appropriated th-erefor. Subpenas the so-called Rockefeller report on Part­ Commission. · shall be issued under the signature of tbe (b) Members from tbe executlve branch: Chairman or Vice Chairman of the Com­ ners in 'Progress, and the Bell report, al­ The members of the Commission. who are mission or committee .and shall be served though the latter report I have not in the executive branch of thil Government by any person designated by them. The examined carefully. I might mention shall each receive the compensation w.hich provisions of sections 102 to 104, inclusive, there are some additional activities in he woufd receive if he were not a member of the Revised Statutes (U. S. C., title 2, this field, notably a report prepared for of the Commission, plus such additional sees. 192-194), shall apply in tne case of any the President's committee for financing compensation, if any, as is necessary tq make failure of any witness to comply -with any his aggregate salary $12,500; and they shall foreign trade in April of 1951 entitled subpena or "to testify wnen summone.d un­ "Obstacles To Direct Fareign Invest• be reimburBed for travel, subsistence, snd der authority of this aection. ·other necessary ·expenses incurred by them ment:~ That was a committee headed in the performance of the duties ..ested in EXPmATION OF COMMISSION by Winthrop Aldrich, as I recall it. · the Commission. · SEC. 11. The Commission shall cease to I have before me the report of tnat (c·) Members .from private life: ~a-mem­ exist on June 30, 1955. committee, tne National Industrial Con­ bers from private .life shall each receive $50 ference "Board ·report. In aduition to per diexn when engaged in the performance Mr. J AVITS. Mr. Speaker, will the of duties 'Vested in the Commissiun, -plus gentleman yield? · that, there are -related a-ctivities of com­ reimbursement for travel, subsb;tence, and Mr. MEADER. I am -glad to yield to mittees of the 'Congress. I do not pro­ other necessary expenses incurred by them the distinguished member of the Com­ pose to give a bibliography of all of those in the performance of .such duties. mittee on Foreign Affairs. activities. A little later I want to point 'STAFF OF THE COMMISSION Mr. JAVITS. The gentleman's bill is out that there is presently a study under­ SEC. 7~ The Commisslon liliall n11.ve tbe of great interest, of course, to me as~ am way, on which a report is required by the power to .a..PpOln.t .a-nd fix tne ~ompensation sure to every other member of the com­ Mutual Security Act ·or 1952. 'But before of such personnel as it de·erns advisable, mittee, and touehes on a problem of the I go into that I would like tq read, so that without regard to the provisions of fhe civil­ greatest moment to our country and is it Will be a part of the CONGRESSIONAL servi'ce laws and the Classification Act of tied up with the whole slogan as the RECORD, tne duties oi this· Commission 1949, as amended. · gentleman just said of, "Trade not ·aid." known as ·the Commission on Overseas CERTAIN LAWS INAPPLICABLE TO COMMISSION The question I would like 'to ask the Investment ana ~ade. AND "'TS ST4FF gentleman is this. We have had anum­ Mr. Speaker, I would like to rev1ew SEc• .B. .The .service of any .Person as a mem­ ber of commissio.ns in this field. They briefly the interest I have had in this ber of the Commission. the .service of .any particular subject, whi-ch :extends over other person with the -Gommissi..on, and the have not been congressional commissions employment of any person .by the Commis­ or commissions of this character, but a number of years. Then I want to sion, snan not be considered -as service or .they have been commissions. I would review briefly the progress tbat has been employ.men.t-bringin_g such_per.son within the like to mention to .the gentleman the made in this fie1d in recent legislation. provlsions of sections 281., :283, or :2M oi tlt1e names of some of them. We have had Then I propose to point out, if J: may, ~8 oi the , or of any the International Development Advisory how the congressional Commission, es­ other :F.ederal Jaw .llnposing .restrictions, .re­ Board which, if memory serves me, in tablished by this bill, would be more like­ quirementsJ or penalties .ln re~tion 'to the either 1950 or 1951 developed quite a re­ ly to solve these difficulties which have emp1oyment of persons, the performance beset us over a period of years than can _of serv.lces, .or tb.e payment .or .receipt of com­ port on this very subject. We have also pensat1on.in connection with an..Y ..claim, pro­ had the Mutual Security Advisory Board,· ever be dnne either by a committee of prl­ ceeding, or matter lnv.Dlving the United which only in Februar_y of tnis year vate citizens without any governmental States. under the distinguished chairmanship of standing wnatever, or by any agency or .EXP..ENSES OF THE COMMI5piON Daniel Bell, fOI'Dler' Under Secretary· of group of aEencies within the ·executive SEc. :9. There 1s hereby a.:nthndzed -to be the Treasury, issued the famous Bell re­ branch of the Government. R1Jpropriated. uut Of any mum~.Y in -.the Tre:M­ port~hich is on the table now. I under­ Mr. Speaker, I first became interested ury no.t ntherw:tae appropriated, so :much as stand that the P.resident has now a-p­ in this means of improving the climate ..may be ne:eessary to ca.rr,y uut the provisions pointed the former Ambassador to Great for foreign investments when I listened of this :act. Britain, Lewis Douglas, to set up a com• to the President's inaugural message ~ "OF "!'HE '"CO~SSIUN mission to go into the very same subject. over 4 years ago, and listened particu­ SEc. 10. (a) Committees: The Commis­ Now here are a.t least three. Those were larly to that passage called the point sion may ~reate such committees of its preceded by tne famous Gray committee 4 program. The technical assistance of 1953 CONGRESSIONAL RECORD -HOUSE 2341 Government experts in the field of pub- I was unable to obtain hearings di­ proved and its actions are more likely to lic sanitation, in agricultural-extension rectly upon that bill by the Foreign be responsible and sound. work, which has become the point 4 pro- Affairs Committee to which the bill was Mr. SMITH of Wisconsin. Of course, gram, is only a part of what the Ian- referred. However, I appeared before we have the age-old question, Which guage of that statement envisaged. The that committee during the hearings on came first, the chicken or the egg? We purpose was to make available to the the Mutual Security Act of 1951, urging have had the argument likewise in ref­ underdeveloped areas of the world the my bill as an amendment. In my· testi­ erence to the question the gentleman is advantages of the American free-enter- mony I incorporated a great number of discussing: Are we going to have sound prise system, the know-how, the indus- communications I had received from investment opportunities where there is trial techniques and the methods persons regarded as informed in the a sound political climate first or are we whereby the American people have been fields of foreign policy and foreign eco­ going to establish the sound political able to develop the natural resources of nomic affairs. That testimony will be climate, then make the investments? It this continent so as to produce a stand- found in the hearings on the Mutual is one of those things that you go round ard of living higher than has ever been Security bill of 1951 before the Com­ and round on. known in the world's history before, in mittee on Foreign Affairs on July 20, 1951, The gentleman, I know, will be inter­ any part of the world. at pages 777 to 831. ested in a conversation I had with a Mr. Speaker, the program of making In support of this proposal there also member of one of the embassies who said available to underdeveloped areas the appeared a representative of the Detroit to me: "Mr. SMITH, we just cannot de­ advantages of the American production Board of Commerce urging · favorable velop a private-enterprise economy in system can only be carried out in part by action on my bill. our country. We do not .have the providing technical experts through When the mutual security bill was re­ money." Government funds such as has been the ported out of the Foreign Affairs Com­ In other words, they would like to limited program through the point 4 or mittee it contained some language in­ come to this country and get all the the technical assistance program. I say serted by the gentleman from New York money they possibly can for the develop­ to you that the industrial methods of the [Mr. JAVITS] urging that the act be ad­ ment of private enterprise and business, United States will"normally be exported ministered in such a way as to break but there is no way for them to start. to these underdeveloped areas if re- down barriers and impediments to in­ They are one of these countries which is straints upon the investment of capital vestment. not able to say to the-investor: We can abroad are removed and the enterpris- During the fioor debate on the mutual guarantee a sound political climate and ing courageous .spirit of the American security bill on,August 16, 1951, I offered you need have no worry about getting business community is permitted to oper- the provisions of H. R. 3798 as an your money back plus interest thereon. ate to develop the national resources of amendment to H. R. 5113. My remarks In other words, there will be a safe in­ these underdeveloped areas. on that amendment will be found in vestment for you. With that capital, of necessity, must go the CoNGRESSIONAL RECORD, volume 97, He cannot do that because there is in­ the know-how. I think it is wholly un- part 8, pages 10179-10180 for that day. stability within the country, yet they ap­ realistic to expect to export the know- I may say that no one spoke against my preciate the need for money to develop how without the capital. There is no amendment, yet, on a division in the a sound economy. motive for American businessmen to ·Committee of the Whole, the amend­ Mr. MEADER. I think the gentleman make their trade practices and indus- ment was defeated by a vote of 63 to 126. has put his finger on one of the serious trial secrets available to foreign com- I may say that only one Democrat, as I impediments to investments overseas. ·petitors if there is no return for them. recall it, stood up in favor of the amend­ That is precisely the subject matter of To send experts in industrial methods to ment. the work of the Commission that I pro­ foreign countries to develop their com- Mr. SMITH of Wisconsin. Mr. pose. I suggest that we get together the petitors' industries just does not make Speaker, will the gentleman yield? best Ininds in the country, to study these sense, but when the American business Mr. MEADER. I yield to the gentle­ problems and to see whether or not some enterprise invests its funds in foreign man from Wisconsin, a distinguished . intelligent progress can be made in the • activities the know-how ~utomatically and valuable member of the Committee field the gentleman is speaking of as well goes with the capital. on Foreign Affairs. as in other fields where there are un­ Mr. Speaker, as a result of this inter- Mr. SMITH of Wisconsin. I want to usual hazards and risks in engaging est in the so-called point 4 program I compliment the· gentleman for his per­ either in investment or trade. prepared a bill early in 1949, much like sistence in attempting to see that some Mr. SMITH of Wisconsin. Mr. the bil1 H. R. 4199, just introduced. I kind of legislation such as he is now dis­ Speaker, if the gentleman will yield fur­ discussed this proposal with a former cussing is finally proposed to the House. ther, I would just like to say this: I hope boss of mine, if you please, the Honor- I think he has in mind something that that it is going to be possible for us to able James Mead, now a member of the is quite important. consider that kind of legislation because Federal Trade Commission, formerly a The question that arises in my mind, it affords a great opportunity for · this Member of this body and a Senator from however, is ·this: Can we expect that country from the standpoint of secur­ the State of New York. Senator Mead those who are interested in foreign in­ ing peace through sound business propo­ was chairman of the Senate War Investi- vestments will invest unless there is a sitions without investment in the mili­ gating Committee at the time I was its sound, stable political climate in respect tary program. I think the gentleman chief counsel. I asked Senator Mead to nations where capital is needed? We has something that we should all think to present this idea to the White House. cannot guarantee the political climate about. My letter to Senator Mead is dated Feb- in those countries. That to me is the Mr. MEADER. I thank the gentle­ ruary 28, 1949. nub of the situation. man. March 1, 1949, Senator Mead took the : Mr. MEADER. I thank the gentle­ Mr. LANTAFF. Mr. Speaker, will the bill and a suggested agenda of studies for man from Wisconsin. l recall that · gentleman yield? the commission to the White House and when I spoke before on this. subject he Mr. MEADER. I am glad to yield to presented it to President Truman. Pres- was very helpful and cooperative. I my colleague on the Committee on Gov­ ident Truman thanked Senator Mead · would like to answer his question which, ernment Operations. for his interest, but nothing happened of course, is a very difficult one, by say­ Mr. LANTAFF. I want to compliment until about 3 months later. Senator ing that fundamentally ·the control of the gentleman from Michigan on the Mead got a letter dated May 24, 1949, the affairs of any c.ountry is in the hands legislation he has introduced. I think from Mr. Steelman advising him that of its citizens, not in the United States he did answer the need for such a Com­ they were glad of Senator Mead's inter- Government. Where you have unstable mission as this when the point was raised est but that they felt the matter was governments obviously you do not have as to political instability. Especially is being taken care of. a favorable climate for the investment this Commission needed in view of the' April 23, 1951, I introduced H. R. 3798 of funds of private citizens. But let me statement by President Eisenhower that in the 82d Congress, 1st session, a bill of say to the gentleman, and ask him if he he wanted to develop a program of trade · import very similar to H. R. 4199 of does not agree with me, where economic and not aid. It seems to me imperative this Congress. At that time I discussed conditions are improved and stabilized -that such a Commission as this not only the subject at some length under a spe- under a free-enterprise economy, the goes into the political climate that our cialprder of the House. political stability of that country is im- American industry will have to operate -

2342 CONGRESSIONAL RECORD =HOUSE March 26 under overseas but also in the way that When the Mutual Security Act of 1952 (c) T.he Department of Commerce shall, came up I again appeared before the in cooperation with such groups and agen­ the State Department -will be helpful. I cies (including the International Bank for think the gentleman will recall .of busi­ House Committee on Foreign Affairs on Reconstruction and Development), conduct a nessmen -overseas complaining about the April 28, 1952. My statement appears thorough study of the legal and other im­ fact that they did not receive the J)ro-per on pages 869 to 882 of the hearings. pediments, foreign and local, -to priv.ate in­ consideration from some of our United Let me say that some progress was vestm-ent abroad, and the methods and states officials, and I think it is because made when the Mutual Security Act of means whereby those impediments can be we did not have an overall policy to help 1952 was passed. Not only was the prin­ removed or decreased and shall make Iecom­ ciple of encouraging private investment mendations thereon to the Director for Mu­ businessmen throughout the world. I tual Security. also believe tnat such a Commission overseas reaffirmed, but specific steps might well be the means whereby private were ordered to be taken by various In other words, the Department of industry could eventually take over the agencies in the executive branch of the Commerce has been ordered to make a point 4 program and accomplish through Government to accomplish that objec- study of a character similar to that private enterprise the same purposes we tive. provided by H. R. 4199, are accomplishing with the point 4 pro­ The Secreta'Ty of State, the Mutual I have made a personal investigation gram today. Certainly private enter­ Security Director, the Technical Cooper- of what the Department of Commerce prise bas done that in South America, ation Administration, and the Depart- is doing. They have a group of about and I think, with the encouragement ment of Commerce were ordered to carry 12 people under the leadership of Carl­ that such a Commission as the gentle­ out certain specific functions calculated ton Wood in the Office cr.r International man proposes can give them, through to enhance the opportunities for private Trade in the Department of Commerce working with and helping out with the capital investments in foreign areas. who have been carrying out the.responsi- uther governments, that private enter­ Mr. Speaker, I ask unanimous consent bilities directed by the section which I prise can eventually take over in that that a portion of section 514 of the Mu- have just read. In essence, they are field and save the ta-xpayers millions of tual Security Act of 1952 be incorporated carrying on two activities. The first is dollars. in my remarks at this point. to assemble from the geographical area Mr. MEADER. I thank the gentle­ The SPEAKER pro tempore. Is there desks all information on the laws, the man for that contribution, and I would objection to the request of the gentleman _ customs, and the conditions in the vari- also like to thank him for the support from Michigan? ous countries overseas affecting the de- he gave me in this effort when I sought There was no objection. sirability of investing capital in those to amend the Mutual Security Act of The matter referred to is as follows: countries. I think the collection and 1952. The gentleman has been very (k) Amend section 516 by inserting "(a)" publication of that information .will -be helpful in the work of the Committee after "SEc. 516." and by adding at the end useful even if nothing further is done. on Government Operations. The gen­ of such section the following new sub­ sections: Second, they conducted a survey of tleman from Florida and I both had an about. 300 American business :firms seek­ opportunity to see and hear some of these "(b) To accomplish the purpose of clause ( 1) of subsection (a) of this section, under ing to elicit from those firms -information problems of American businessmen over­ the coordination of the Director for Mutual concerning their own experience in the seas at firsthand in connection with an ..Security, the Mutual Security Agency, coop­ investment of capital overseas and to overseas investigation of the Bonner erating with private business groups and gov­ learn from them why further investment committee in 1951. ernmental agencies to the fullest extent pos­ was not made. What has occurred on this idea since sible, shall encourage a greater -participation That survey was conducted not by it was originally proposed? In the Mu­ by private capital in the guaranty program and shall develop broad criteria to facilitate questionnaire but by personal interviews. tual _security Act of 1951 the _principle such participation, including programs con­ Representatives from the :field offices of was endorsed. Section 516 of that act, sistent with the purposes ·of the act for the Department of Commerce, called up­ approved by the President on October 10, international development. on these firms and then reported the 1951, is entitled "Encouragement of Free " (c) The Department of Commerce shall, results of the discussions. Those reports Enterprise." in cooperation with such groups and agencies are now being collected and analyzed, Mr. Speaker, I ask unanimous consent (including the International Bank for Re­ .and will be very interesting, I am sure. ·to extend as part of my remarks at this construction and Development) , conduct a No one can tell today when that report point in the RECO.RD the section just thorough study of the legal and other im­ pediments, foreign and lo~al, to private in­ will be available. My best guess from referred to. vestment abroad, and the methods and the information I have received is that The SPEAKER pro tempore. Is there means whereby those impediments can be it will not be available until the month objection to tne request o:i.' the gentle­ removed or deceased and shall make recom­ of June. man from Michigan? mendations thereon to the Director for Mu­ This activity is all very useful, but 1 • There was no objection. tual Security. " (d) The Department of State, in cooper­ think I can demonstrate to the Members . Mr. MEADER. Section 516 reads .as {)f the House that the hands of any exec­ follows: ation with other agencies of t~e Government concerned with private investment abroad, utive agency are tied. I would like to SEc. 516. It is hereby declared to be the .and taking into account the study and rec­ refer to the question raised by the gen­ policy of the Congress that this act shall .be ommendations described in subsection (c) tleman from Florida as one illustration. administered in such a way as ( 1) t'O elim­ of this section, shall accelerate a program of inate the barriers to, and provide the incen­ AmeTican businessmen have complained negotiating treaties of commerce and trade, that the personnel of tbe Foreign Service tives for, a .steadily increased participation or other temporary arrangements where of free private enterprise in developing the more suitable or expeditious, which shall in­ of the Department of State have not resources of foreign countries consistent clude provisions to encourage and facilitate been helpful am~ cooperative in meeting with the policies of this act, (2) to the extent the flow of private investment 'to countries problems they face in conducting busi­ that it is feasible and does not interfere with participating in programs under this act. ness overseas. .If .the Department of the achievement of the purposes set forth in this act, to discourage the cartel and monop­ " (e) The Technical Cooperation Adminis­ Commerce .finds that the personnel of olistic business practices prevailing in cer­ tration, taking into account the study and the Foreign.Service have been indifferent tain countries receiving aid under this act recommendations described in subsection or hostile to American business activi­ which result in restricting production .and (c) of this section, shall encourage and fa-. ties abroad. would the Department of increasing prices, and to encoura_ge where cilitate a greater participation by private industrial groups or agencies in private con­ Commerce dare so to accuse and criticize suitable competition and productivity, and its sister department, the Department of (3) to encourage where suitable the devel­ tracts awarded by the Administration, and opment and strengthening of the free labor shall, in cooperation with the Department of 'State? Would it dare, despite the order union movements as the collective bargain­ Commerce and the Mutual Security Agency, in secticn (c) of the Mutual Security ing agencies of labor within such countries. find and draw the attention of private enter­ prise to opportunities for investment and de­ Act of 1952 which I have just read, to Now, that pronouncement, in my mind velopment in underdeveloped areas. tell the Department of State what it was nothing more than a broad decla­ "(1') The reports required by section 518 ought to do to encourage its personnel ration of purposes. It did not specify of this act shall include -detailed information to be more helpful to American business any steps to be taken or activities to be on the implementation of this section." interests abroad? 1 say to you there entered into to ac.complish the encour­ Mr. MEADER. Mr. Speaker, I want to will ·be a first rate interagency ruckus agement of private capital investment emphasize one of those provisions, name- - if the Department of Commerce is frank overseas. ).y, section (c). which reads as fo1lows: and forthright -about the attitude of the 1953· CONGRESSIONAL RECORD -HOUSE 2343 Department of State, toward American tion.at affairs were adopted by the dele .. that they adopted any such resolution business abroad. gates to the 34th annual convention in at all. The United States opposed it, Again, let us assume, as I think it is. December 1952. This statement is ex­ but the United States was the one nation safe to assume, that one of the obstacles tremely well expressed and takes a broad to oppose it in the United Nations. I ask to the investment of private funds over­ point of view on international affairs. It the gentleman, How can you ever provide seas is the inconvertibility of currencies is not limited to just agricultural mat­ a climate for foreign investments if such and the inability to get dollars back, ters, and, in my judgment, is very for­ monstrosities as the United Nations con­ either as earnings or capital. Now sup­ ward looking. tinue to enact resolutions doing anytbing pose the Department ·of Commerce is The opening paragraph of the state­ to establish a climate favorable to Amer­ compelled to come to the conclusion that ment of the Farm Bureau on Interna­ ican investments? this is a serious obstacle to investme~t tional Affairs is as follows: Mr. MEADER. Well, I would rather of private capital overseas, and suppose The challenge to America is to exert the not discuss the United Nations at length. it is further convinced that more prog­ necessary leadership for successfully direct­ I have only a few minutes left. I would ress in solving the problem could have ing its capabilities to the maintenance of rather the gentleman directed his atten­ been made by the responsible agencies freedom and peace. The United States must tion to the proposal that I am making, than has been made. Let us say that the demonstrate to the world that a dynamic, that we have an American bipartisan expanding, competitive capitalism is the true Commission to study this problem. I International Bank and Monetary Fund, way to the more abundant life, that thought­ an international agency, the Department ful people everywhere are seeking. For cap­ agree that a great many things have of Treasury, the Federal Reserve Board, italism to be dynamic and expanding, cap­ been done, not only by international or­ the Department of State, all have some ital must be allowed to flow freely. This re­ ganizations but by foreign governments responsibility with respect to the stabili.. quires world tr~:~