2132 CONGRESSIONAL RECORD-HOUSE JANU.ABY 15 CO!'I."FIRMATIONS therein a speech delivered by ·Governor Ritchie. Is there ob­ Executi-ve nmnina.tio-n.s oon.{irmed by the Senate January 15 jection? (legislatitve day of January 13), 1926 Mr. BLANTON. Mr. Speaker, reserving the right to object, STEAMBOAT INSPECTOR GENERAL let me ask the gentleman a question. The distinguished gentle­ man from Maryland [Mr. LINTHICUM] knows that personally Dickerson N. Hoover to be supervising inspector gen-eraL for him I would do anything honorable, and I would not deny UNITED STATES CoAsT Gu.ARD him the right to put into the RECoRD anything that he himself Detlef F. A. deOtte to be captain. has spoken either out in the country or here on the floor of Claude S. Cochran to be captain (temporary). this House; but what he seeks to put into the RECORD now is Eugene Blake to be commander. a speech by the Governor of Maryland, who is seeking to in­ Edward S. Addison to be commander (temporary). veigh the country against the constitutional law of the land. . Stephen S. Yeandle to be lieutenant commander. Does the gentleman wish to disseminate that kind of doctrine Louis W. Perkins to be lieutenant commander (temporary). among the American people? Mr. LINTHICUM. There is no such doctrine as that in the POSTMASTERS governor's speech. GEORGIA Mr. BLANTON. The newspaper reports say that the gov­ Robert L. Lovvorn, Bowdon. ernor in that speech did denounce the eighteenth amendment Maggie Edwards, Canton. and also the Volstead law, and said that they were nonen­ John P. Herring, Climax. forcible, and also said the time had come when the people of · James L. Weaver, Ellijay. America should rise up and in effect nullify the provisions of Franklin W. Withoft, Fort Valley. this law; and I ask the gentleman whether that newspaper NEBRASKA report is correct? Clarence L. McEntaffer, Emerson. Mr. LINTHICUM. That is absolutely incorrect. Governor . Luthe1· A. Howard, Hyannis. Richie is opposed to the centralization of power in the National Harry H. Woolard, McCook. Government and strongly in favor of State's rights . . W. Monroe McDaniel, Minatare. Mr. BLANTON. Does he denounce the eighteenth amend­ Charles C. Wake, St. Edward. ment in that speech? Oharles A. Smiley, Shubert. Mr. LINTHICUM. He was not in favor of it nor of the Vol­ Julius C. Moore, Waterloo. stead .Act; he could not be and believe in local self-government. NORTH OAROLINA l\1r. BLANTON. Does he not denounce it? Mr. LINTHICUM. He thinks it wa~ unwise legislation, as Carlie A. Guy, Angier. I do also; but, says he, "So long as it exists it should, of course, Sallie F. Troy, Bolton. be upheld and respected. But just as good citizens of the Thomas E. Harwell, Catawba. South feel that refusal to obey the fifteenth amendment in­ Sion H. Rogers, Clarkton. volves no moral issue and is no violation of their individual David W. Alexander, Connellys Springs. conscience, so many feel about the eighteenth amendment." Walter Hogan, Ellerbe. Mr. BLANTON. It is in the Constitution; and it being con­ Roscoe C. Chandley, Greensboro. stitutional law, I am under oath to uphold the Constitution. Joshua P. Jessup, Hertford. He does announce the revolutionary doctrine that people have Hannah J. Pate, Hope Mills. the right to disobey the Constitution when they feel that it Abram W. Titman, Lowell. involves no moral issue and is no violation of their individual Sallie K. Wilkins, Magnolia. conscience. That is a dangerous doctrine, and I object to it George H. Hodgin, Ramseur. being broadcast by the RECoRD. John T. Benbow, Winston-S~lem. The SPEAKER. Objection is heard. OALL OF THE HOUSE HOUSE OF REPRESENTATIVES Mr. LINTIDCUM. Mr. Speaker, I make the point of order that there is no quorum present. FRIDAY, Jawuary 15, 1!Jf6 The SPEAKER. The gentleman from Maryland makes the point of order that there is no quorum present. Evidently The House met at 12 o'clock noon. there is not Th·e Chaplain, Rev. James Shera Montgomery, D. D., offered Mr. TILSON. Mr. Speaker, I move a call of the House. the following prayer : The motion was agreed to. 0 Thou who.art clothed in the infinite glory of holiness, and The doors were closed. who maketh righteousness to shine forth as the noon-day sun, The Clerk called the roll, and the following Members failed hear our prayer. Do Thou magnify the relations between our to answer to their names : souls and Thee. May they be set forth in actual life, in practi­ [Roll No. 11 J cal conduct, in daily intercourse, and thus life shall be trans­ Allgood Croper, Ohio Hawley Raker Wurzbach The Journal of the proceedings of yesterday was read and Cooper, Wis. Hudspeth Rayburn approved. The SPEAKER. Three hundred and seventy-seven Members LEAVE OF ABSENCE ha-ve answered to their names, a quorum. 1\Ir. FREAR. Mr. Speaker, I ask unanimous consent that Mr. TILSON. Mr. Speaker, I move to dispense with further leave of absence be granted indefinitely to the gentleman from proceedings under the call. Wisconsin [1\Ir. CooPER] on account of illness. The motion was agreed to. The SPEAKER. The gentleman from Wi consin asks unani­ The doors were opened. mous consent that his colleague [Mr. CooPER] may be given ORDER OF BUSINESS leave of absence indefinitely on account of illness. Is there objection? Mr. GREEN of Iowa. Mr. Speaker, I ask the attention of There was no objection. the gentleman from Mississippi [Mr. CoLLIER] to see if we can not come to some agreement in respect to closing the time EXTENSIO:\T OF REMARKS for general deb;,lte. What does the gentleman from Mississippi Mr. LINTHICUM. Mr. Speaker, I ask unanimous consent say to an agreement that general debate shall close in two to extend my remarks in the RECORD by printing therein a speech hours and a half? delivered by Gov. Albert 0. Richie, of Maryland, at Chicago Mr. COLLIER. Mr. Speaker, I appreciate the liberality on the 8th of January last. with which time has been granted on the other side; but I still The SPEAKER. The gentleman from Maryland asks unani­ have a number of promises which I have made to gentlemen for mous consen_t to extend his remarks in the RECO~ by printing 5-zni!!ute speeches and a few 10-minute speeches. I think we 1926 CONGRESSIONAL RECORD-HOUSE 2133 could get through with two hours of general debate on a side tate of the Union for the further consideration of the bill and then proceed with the vote. . (H. R. 6773) making a settlement of the indebtedness of Mr. GREEN of Iowa. Then I suggest that we let general . debate close in three hours. The motion was agr.eed to. Mr. UPSHAW. 1\Ir. Speaker, will the gentleman from Iowa Accordingly the House resolved-itself into the Committee of yield? the Whole House on the state of the Union for the further .Mr. GREE~ of Iowa. Yes. consideration of the bill H. R. 6773, with Mr. MADDEN in the Mr. UPSHAW. The gentleman from Iowa remembers the chair. time when he was a new Member here and that when he The CHAIRMAN. The House is in Committee of the wanted to deliver a speech he wanted to deliver it mighty bad. Whole House on the state of the Union for the further con­ [Laughter.] sideration of the bill H. R. 6773, which the Clerk will report Mr. GREEN of Iowa. Well, he did not get the opportunity. by title. Mr. UPSHAW. Next to having the toothache the worst The Clerk read as follows : thing I can think of is for a man to want to make a speech on this floor and be denied that sacred privilege. It seems hardly A bill (H. R. 6773} to authorize the settlement of the indebted­ fair now for the gentlemen who have talked ad libitum on ness of the Kingdom of Italy to the United States of .!.merica. this matter to say to those who have not spoken, "You shall Mr. GREEN of Iowa. Mr. Chairman, I yield five minutes to not pass." This does not affect me, for my time is already the gentleman from Illinois [Mr. CHINDBLOM]. [Applause.] allotted. But I am for the other fellow, who' wants a chance. Mr. OHINDBLOM. Mr. Chairman, I shall avail myself of Give us two hours on a side. [Applause.] the privilege of extending my remarks which bas been given Mr. GREEN of Iowa. I shall make a final proposition to the to all members of the committee, and therefore, Mr. Chairman, gentleman, and I hope he will not force me to ciose gen~al I shall not spend aily time whatever upon the economic phn es debate by motion, because if I do I shall !lsk still less time of this question except 'to say that, having heard the state­ than that which I now propose. I ask unammous consent that ments before the Committee on Ways and Means and having debate close in three hours, and I shall give the gentleman. 10 studied the available documents as thoroughly as within my minutes extra of that, thus cutting off that much on our s1de. power, I am satisfied that upon business and economic con­ Mr. COLLIER. What was the alternative the gentleman siderations the Members of this House not only have the right stated about closing debate? but, ftom my viewpoint, it is their duty to support, approve, Mr. GREEN of Iowa. I will have to move to close debate and ratify the settlement recommended by the_ commission. in two hours and a half and keep half of it But others, particularly the distinguished gentleman from Ten­ - Mr. COLLIER. If the gentleman will give me 15 minutes nessee [Mr. GARBF:rT], have raised the question as to whether more I will call it square. [Laughter.] other considerations than economic questions may control upon Mr. GREEN of Iowa. Very well1 then. Mr. Chairman, I this question. I concede there are other viewpoints. When ask unanimous consent that general debate be closed in three we made these loans to our allies or our associates in the hours with the understanding that of that time 15 minutes World War we received and accepted only notes of hand which would belong to the affirmative be yielded to the nega- signed and delivered by the diplomatic representatives of the tive. . various countries then residing in Washington. I have seen The SPEAKER~ The gentleman from Iowa asks unanrmous these documents in the Treasury Department. They were gen­ consent that general debate be limited to three hours, of which erally due in six months and bore interest at 5 per cent 15 minutes that belongs to the affirmative be yielded to those Nobody believed that to be a permanent arrangement. The opposed to the bill. Is there objectio.n? terms cut no figure at the time the loans were made. If we Mr. COLLIER. Mr. Speaker, reserving the right to object, had asked 7 or 10 per cent interest and made the principal I think the gentleman misunderstood me. I want, say, an hour due in 30 or 00 days, the loans would have been accepted by and 55 minutes. You are already six or eight minutes ahead the borrowers. It was no time for quibbling on terms of pay­ of me, I think. ment. The fate of these nations and of our own Republic Mr. GREEN of Iowa. That gives the gentleman so much was at stake. In fact, the general theory was merely that our more time. debtors would make us whole in our borrowings from our own Mr. COLLIER. I know the gentleman is very generous and people to the extent of these loans. It has been shown in I appreciate that. this debate that Members of both the House and the Senate Mr. GREEN of Iowa. No; I am making a very fair propo­ not only appreciated but vigorously expressed the view that, sition to the gentleman. The gentleman gets an hour and 45 no matter what the prospects might be for repayment, the minutes and it seems to me that the gentleman is ahead. loans had to be made; and they were, in fact, made as a part :Ur. COLLIER. :Mr. Speaker, I will make another proposi­ of the joint enterprise of winning the war against a common tion to the gentleman. enemy. Of course, it was intended that each nation, borrow­ Mr. GARRETT of Tennessee. Will the gentleman yield? ing from another, would repay in accordance with its ability. Mr. COLLIER. I yield to the gentleman from Tennessee, as The phrase "capacity to pay" was not " nominated in the he may throw some light on the subject. . bond." Capacity to pay is always a condition precedent in Mr. GARRETT of Tennessee. What will be the disposition private as well as international loans. When the capacity to of the gentleman from Iowa when the matter comes up for pay comes into question in matters of private borrowing, pri­ amendment under the five-minute rule? vate individuals sit down for conference, for arbitration, and Mr. GREEN of Iowa. Oh, I do not see why it should take for settlement, or they have recourse to the courts. They any time under that. It is absolutely necessary that we secure a judgment, they secure a writ of execution, and make reach a vote. a levy f-or the payment of such portion of the indebtedne · as Mr. COLLIER. I am helping solve the problem, if the gen­ may be covered by the available p1·operty. tleman will be a little more liberaL I think we could get That can not be done in dealings between nations. The only alonoo with an hour and 45 or an hour and 50 minutes, if way payment might be enforced would be by the process of the gentleman will permit one or two or three five-minute war. We might occupy territory. We might levy upon per­ speeches on the bill when it comes up for amendment. sonal property or tangible property. We might hold that Mr. GREEN of Iowa. Four five-minute speeches, say two property. We might take it and seize it and convert it to our on a side? own use. We might even take control of industry and trans­ Mr. COLLIER. Two on each side. Give us an hour and portation and trade, and still we would not be beginning to 50 minutes and then two five-minute speeches and I will ac- collect the amount of these international debts. We can not cept that. [Laughter.] · compel the people of these nations to labor and produce in order Mr. BERGER. Will the gentleman give me five minutes? to pay their national debts to us. If not, I shall object. Will the gentleman from Mississippi It has been said that the peace of the world is dependent give me five minutes? upon the willingness or "the will to peace." So I say the Mr. COLLIER. Yes. payment of an intern3:tional debt is dependent on the willing­ Mr. BERGER. Thank you. ness of the debtor nation to pay. We can do nothing toward The SPEAKER. Is there objection? [After a pause.] securing the payment of an international debt, except by force, The Chair hears none. unless we are willing to sit down with the debtor nation, SETTLEMENT OF THE INDEBTEDNESS OF ITALY TO THE UNITED through its representatives, and reach an agreement which STATES they are willing to make and which they are able to make. Mr. GREEN of Iowa. Mr. Speaker, I move that the House The CHAIRMAN. The time of the gentleman from illinois resolve itself into the Committee of the Whole House on the has expired. LXVII-135 2134. CONGR.ESSION AL RECORD-HOUSE JANUARY 15· Mr. GREEN of Iowa. Mr. Chairman, I yield to the gentle­ it is my firm conviction that this settlement stands unchallenged man fi're minutes more. in this House. [Applause.] 'l'he CH.A.IR~iAN. The gentleman from Illinois is recognized Mr. Chairman, the proof that the proposed agreement with for five minutes more. Italy not only represents Italy's " capacity to pay," but is in 1\fr. CHINDBLOM. I say that unless we are willing to sit fact the most favorable settlement we can obtain at this time down with our debtors and reach an agreement with them, is concededly overwhelming. Certainly no competent eYidence which they are willing to make and which they are able to to the contrary has been adduced. I shall not dwell at this make we can do nothing toward securing the payment of these time upon the economic factors which have been so fully stated inter~ational debts; unless we reach a conclusion upon such and discussed by my colleague · on the Ways and Means Com­ terms as the people of those nations believe are fair and mittee, the gentleman from Georgia [Mr. CRISP], also a member equitable to them. This is exactly what has been done in this of the 'Vorld War Foreign Debt Commission, and the gentle­ case. man from New York [1\Ir. MILLS], and the other distinguished Gentlemen say, " Let us reject this proposal and sit down and member of the commission, the gentleman from Ohio [Mr. wait for something to turn up." Oh, my friends, sod upon sod BuRTON]. Of all our European debtors, with the possible ex­ will be "turned up" over our graves before we settle these ception of Austria, to whom we have granted a moratorium debts if we do not do it in a spirit of amicable arrangement of 20 years, Italy is certainly the lea t able to pay her indebted­ ~vith these nations. It is true something may " furn up," but ness to us. We therefore have a right to extend to her more will it be a better condition among the Italian people, more favorable terms than to any other of these nations, and the stability in their finances and in their currency? It is foolish other nations have no right to complain. As has been often to hope such a condition will arise if we reject this settlement. said, a creditor may always grant a preference to a debtor. Many years will pass before the opportunity to negotiate will Besides, all of our settlements have been on the basis of coine again, and then only when the Italian people themselves capacity to pay, and all of our debtors have receiYed substantial come and make a proposal. reductions upon the agreements made by them when the loans Mr. GARRETT of Tennessee. 1\Ir. Chairman, will the gentle- were obtained, from Great Britain down. man yield? ~o Some gentlemen have scoffed at the presentation of this case 1\Ir. GIIINDBLOM. Yes. by the Italian commission. They have a~ked how do we know Mr. GARRETT of Tennessee. Does not the gentleman feel their statements to be true? It is a sufficient answer that om· that we are discussing capacity to pay a little too early? own commission verified and accepted the facts. That answer l\lr. CIDNDBLOl\1. No; I do not. relieves the Italian commission and places the responsibility l\lr. GARRETT of Tennessee. You are taking capacity to upon our own commission, appointed by the President pur-. pay into consideration in fixing the basic chance. Why should suant to the law passed by us and confirmed in their appoint­ not the capacity to pay be taken up 10 or 15 or 20 years from ment by the Senate of the United States. Do we repudiate now? the basis of the settlement, the ability of the debtor to pay, or Mr. CHINDBLOM. Does the gentleman think any private do we reject the evidence offered by our own commission'! business man when he makes a compromise with a bankrupt or Those are, at least in my opinion, the only proper grounds upon an insolyent would do that? which we may refuse to approve this settlement. Neither my Mr. GARRETT of Tennessee. No; but I think this matter distinguished colleague [Mr. RATHBONE] nor any other Mem­ can be approached-- ber of the House can escape responsibility for his duty to his Mr. ClliNDBLOl\1. I am not approaching it merely from own country by claiming that he is legislating for the benefit the individual point of view. I say we can do nothing in this of the Italian people by creating a situation which he thinks rna tter unless we make an amicable arrangement with our will overthrow the present Italian Government. ·we are not debtors or unless we re ort to force and the arbitrament of legislating for the Italian people. They would indeed be for­ arms in order to compel payment, and no one of us wants tunate if their economic resources equaled their capacity to to do that. gowrn themselves. Mr. GARRETT of Tennessee. Of course that is true i but I The only alternative to acceptance of the pending agreement fear still the gentleman does not get the point of my objec­ is, of course, indefinite postponement of the entire matter, tion. This is not a settlement, except with Italy, and it is postponement and delay until Italy retm·ns with some other not a settlement even with Italy, according to the statements proposal. If our rejection of thi~ agreement results in the made bv the members of the commission who have addressed us. economic demoralization of Italy-akin to the experience of l\1r. CIDNDBLOl\1. '''lth whom is the settlement if not Germany-our chances for settlement with Italy will be nil, with the Government of Italy? at least for a long time to come; but even if Italy should sur­ Mr. GARRETT of Tennessee. Within 10 or 20 years every vive such a blow to her economic stability the morale of her government with which we have already settled or with those people would be disturbed and the natural and inevitable re­ with whom settlements are pending will find themselves in a sentment of our treatment of a proposal which they consider po ition in which they can not pay, and will turn to us and fair would prevent a renewal of negotiations. The Member. point to this Italian settlement. . of this Congress, of course, have the right to reject this settle­ Mr. CIDNDBLOM. Then the gentleman would make no set­ ment, but the consequences of such action might be very graYe. tlement with anybody at this time? The gentleman's objection One thing is certain ; we have no means of compelling better holds as well to the British settlement and to every other set­ terms than are offered here. Upon the facts, they are honorable tlement we have made. and fair to both countries ; their acceptance by us will not 1\ir. GARRETT of Tennessee. It does not hold with the only contribute to the stability of Italy and the balance of British settlement. I supported that settlement gladly. That Europe, but will improve and enlarge our commerce with a was the standard that ought to be fixed. great nation with which we not only have had great trade 1\!r. CIDNDBLOM. But that settlement was a compromise and a large market for our surplus products, but during all with the British Government, and it was based on the capacity of our history amicable and cordial relations. to pay. Mr. GREE~ of Iowa. Mr. Chairman, I yield five minutes 1\Ir. GARRETT of Tennessee. No. The words "capacity to to the gentleman from Massachusetts [Mr. LucE]. pay" were not brought into that debate. The CHAIRMAN. 'l'he gentleman from Massachusetts is Mr. CHINDBLO:M. They may not have been used in the recognized for five minutes. debate, but the argument certainly was that the agreement 1\Ir. LUCE. So far as I have observed, no emphasis has been provided all we should require of Great Britain, and that with given in the course of this debate to one of its most important the acceptance of that amount we should consider the debt elements of the matter. There may have been passing reference squared. We did not enforce the notes of hand at 5 per cent to it, but no isolated treatment; and yet it most gravely affects interest which I saw in the Treasury Department, payable in the merits of the agreement in the pending bill. six months. I refer to the element of the change in the purcllasing power 1\Ir. BLANTON. 1\Ir. Chairman, will the gentleman yield? of money. A dollar is worth what it will buy. The amount Mr. CHINDBLOl\1. Yes. that a dollar will buy has been constantly changing in the Mr. BLANTON. And is it not a fact that when the debt was years since this money was lent. There have been such in­ assumed we canceled a great amount? creases in the purchasing power of the dollar that to-day, l\Ir. Cffil\"'DBLO.!U. Yes. 'Ve canceled enormous amounts measured in materin.ls, in merchandise, in goods, Italy, it it in every case. We started out with the idea of compromising in repaid to-day the face value of its debt, would pay one-fourth settling or funding these debts. more than she received. This addition to Italy's responsibility Now, if any gentleman on this floor can propose a better set­ is more than three times as large as the interest which the tlement, if any gentleman on this floor can show how the pending bill proposes to charge up to date and is in addition United States can obtain better terms, then I think valid objec­ thereto. Taking the two things together, were Italy to meet her tion might be made to this settlement; but until that is done, obligations in full to-day, she would pay us material values 1926 CONGRESS! ON AL RECORD-HOUSE 2135 more than a third larger than those she bas received. Now, acceptance that could not be easily t•efuted, and no ground this is indisputable. has been taken in opposition to it that seems to me at all If I turn to the future, you may doubt my capacity to fore- tenable. I have therefore come to the conclusion that so far cast. In truth it is not given to man to know the future, but as our action on this matter is concerned there is really but men in their ordinary relations try to know the future by the· one side to the question. The arguments in favor of the propo­ past. Taking that test, looking at the past you may conjecture sition have not been answered.· - More and more clearly they what may be the changes in this burden in the course of the appear to me to be unanswerable. next 62 years. After the high point of prices in the course of It seems to me fortunate that this is not a party question, the Napoleonic wars it took England 40 years to deflate, to get and I am glad that gentlemen on the other side of the aisle all the gas out of the balloon, and in that time prices dropped have contributed their full share of the overwhelming argu­ by more than three-fifths. After our Civil War it took just 30 ments in favor of accepting the settlement recommended by our years. to deflate, and in the course of that time prices dropped Foreign Debt Commission. While it is not a party question, by one-third. Exact computation is impossible, but the nearest still, as a matter of party pride, I sincerely hope that no one estimate that can reasonably be made will be that if the agree- who belongs on this side of the aisle will feel constrained to ment in this resolution should be carried out and history re- vote against the acceptance of the settlement. peats itself Italy in the end will have repaid to the United Now, what is the situation? When the rest of the world was-- States-measured in materials, measured in merchandise, meas- in a death grapple with the Central Powers we loaned Italy a ured in goods-the full amount of her original obligations, little over a billion and a half of dollars to be used in prosecut­ together with a normal rate of interest, and possibly an exces- ing the war. It was not loaned for use in productive enterprise sive rate of interest. The result is that all· argument in this or for the construction of public work. It was loaned with the debate, based upon the idea that we . are overgen€rous with knowledge and expectation that it was to be destroyed in the Italy, that we are too liberal, is absolutely unwarranted. [Ap- holocaust of war. It was used to the last cent to win the war. plause.] Italy borrowed from others even greater sums, and all was ex- Mr. GREEN of Iowa. Mr. Chairman, I yield one minute to pended in the same way. These sums, enormous as they were, t~e gentleman from New York [Mr. LAGUARDIA] for the pur- represent only a fractional part of what Italy expended on pose of making a correction in his remarks. the war. Mr. LAGUARDIA. Mr. Chairman and gentlemen, -when I The war left Italy in the economic condition so clearly and addressed the committee on Wednesday I stated that, accord- accurately described here by those who with painstaking thol·­ ing to my information, the $100,000,000 loan made by J. P. 1 oughness have investigated the facts. What is the situation Morgau & Co. to the Italian Government had been sold by the that now confronts us? Italy owes the debt. It is an honest Italian Government at 86 and marketed at 94. ! have re- debt, and every impulse of national pride, honor, and patriotism ceived a letter from the firm of J. P. Morgan & Co. correcting would urge payment in cash at onee were such a thing pos­ those figures, which, in all fairness, ought to be inserted in sible, but it is not possible. Everyone knows this. To fund the RECORD. Therefore I ask unanimous consent that the the debt and pay normal interest is equally impossible. No letter may be read and the RECORD corrected accordingly. one who comprehends the situation at all would advocate this Mr. MILLS. May I ask the gentleman to have the letter or believe it possible. Then, what are the alternatives? Shall read? the United States use the Army and Navy to collect such a 1\Ir. L.AG'CARDIA. I ha\e sent it to the Clerk's desk for that debt? No one in his right mind would even suggest so pre- purpose. posterous a proposition. [Applause.] The CHAIRMAl~. The time of the gentleman from New What is proposed by those who are unwilling to accept the York ha expired. proposed settlement? "Wait until some future date when it' Mr. GREEN of Iowa. Mr. Chairman, I yield the gentle- may be more clearly ascertained what Italy can pay," is the man sufficient time to have the letter read. favorite proposal we have heard here. When considered in The Clerk read as follows: view of its certain effects this is an absurd proposition. The NEw Yonx, January 1-1, L926. very uncertainty created by postponing the settlement would To the Hon. F. H. LAGUARDIA, make the rehabilitation of Italy impossible. Uncertainty is House of Rept·esentatives, Washington, D. 0. itself one or the strongest deterrents to business and pros-· DEAR Mn. CoNGRESSMAN : Certain statements have recently been perity. Uncertainty is what is now hurting Italy more than made in Congress concerning the commission paid by the Italian Gov­ any other one thing. In the present economic condition of ernment in connection with its loan of $100,000,000 obtained in this Italy, if the United States and Great Britain shall refuse to market last November. Some of these statements have been to the make a settlement that can be carried out and shall postpone effect that the firm of J. P. Morgan & Co. received 8 per cent and fixing the amolmt to be paid to a day uncertain, both coun­ !) per cent commission for arranging this loan. tries had as well write off the books the debt against Italy. The facts of the matter al·e as follows: The Italian Government It is often said that it is a Yankee trait to answer one bonds were offe1·ed to the public at 94% per cent of par. They were question by asking another, but the gentleman from Texas ­ sold by the Italian Government to the original purchasing group at [Mr. BLANTO~] the other day went the Yankee one better. 00 per cent of par. The difference, 4% per cent, represents there­ He asked a brief, simple question that answered the entire fore the total cost to the Italian Government for all commissions, speech of the gentleman from Arkansas [Mr. OLDFIELD]. An expenses, etc. Out of the 4% per cent mentioned our firm received array of objections to the proposed settlement had been pre­ as compensation f'or its work in negotiating the loan, forming and sented by the able gentleman from Arkansas-all that could managing the syndicate, etc., slightly less than one-fourth o~ 1 per be thought of or imagined. The gentleman from Texas rose cent. The firm was a member of the purchase and selling syndicates and in his characteristic fashion shouted: " What are we and shared with other members of the syndicates in exact propor­ going to do?" If we don't do this, what are we going to do? tion to the responsibility undertaken in the compensation which Every alternative that has been suggested falls to pieces like flowed to such syndicate groups. The selling syridicate consisted of a house of cards when the cold facts of the situation are fairly nearly a thousand banks and bond houses located all over the United applied to it. States. The t·efusal to accept this settlement will probably mean From the foregoing you will readily see that the statements made that we shall lose first our money, se.cond a good customer as to the amount of commissions involved were very far wide o:f the in our markets, and third a real friend. The acceptance of it mark. will not only be making the best of an unfortunate situation, Respectfully yqurs, but will give the greatest boon that one friendly nation can THOMAS W. LAMO)ff. give to another, by removing an obstacle, otherwise insuper­ Mr. GREEN of Iowa. ~fr. Chairman, I yield five minutes to able, that now blocks the road to rehabilitation. It will help to the gentleman from Connecticut [:Mr. TILsoN]. [Applause.] give the brave an

I will say to the gentleman from Mississippi that the only rate of 2 per cent per· annum after June l::J, 1980, all payable semi­ comment I make on his speech is that it indicate he does not annually on J~e 15 and December 15 of each year. know the difference between American prohibition and a foreign Any payment of interest or principal may be made nt the option debt settlement. of the Kingdom of Italy in any Dnited States Government obllgations Mr. STRO~'G of Kan~·as. Mr. Chairman, will the gentleman issued after· Aprll 6, 1917, such obligations to be taken at par and yield? accrued interest. Mr. HILL of :Maryland. Yes. Tile report of the w·ays and Means Committee, made by the l\lr. STRONG of Kansas. What kind of a settlement woulxamined and considered in making the settlement. The result or mzed for one minute more. the independf'nt .American inve tigation and this check by American 1\Ir. BLANTON. ::\Ir. Chairman, will the gentleman yield? experts coincided with the facts pt·esented in the Italian documenta­ l\lr. HILL of Maryland. Yes. tion, and it was agreed by all of the American in>estigators that the l\1r. BLANTON. I want to remind the gentleman that he facts as presented by Italy truly, accurately, and correctly reflected "whom the gods wi.:h to destroy they fir. t make mad." ltnly's economic situation and her capacity to pay. Mr. HILL of ~arylancl. I suppose the gentleman from Texas Italy's economic situation is, in substance, as follows : refers in that to the gentleman from ~li ·sissippi [Mr. WILsox]. The expense of hE'r army bas been reduced below the cost or 1913, I said when the British debt settlement wa discussed that I and Italy i the only nation of consequence whose military E.'xpendi­ felt that in ju. ·tice to the American people the war debt... due tures to-day are le s than they were before the commencement of the the United State· should not be canceled. We settled the World War·. British debt, and it i to the everlasting credit of the Briti..;h By the redm:tion of a number of civil employees, a reduction of people that they settled the debt as the creators of the old Eng­ salaries, and a leyy of high taxes, Italy's budget is now balanced, but lish common law were wont to treat all their moral and finan­ with no appreciable surplu.. cial obligation . They settled the debt without claiming it was Italy alone of all the nations has levied a 100 per cent excess war not a debt or making sugge tions that we are a lot of monev profit tax, and the Italian Government has al·o levied a capital tax grabbers because we did not cancel the debt. ~ ranging from 4 per cent to 50 per cent, payable over a period of 20 I ·hould like to see the Italian debt ettled on the same basis years. 'Lnder the Italian income tax law, a married man is allowed as the British debt, but because of circumstances over which an exemption of only $-!0. Following is a comparative income tax neither Italy nor ourselves have any contl·ol this can not be statement of several countt·ies, which clearly shows the great burdeu done. imposed upon the lt3lian taxpayer: • I predict that this House will ratify the settlemeut that the Debt Commission ha' made and which the Pre ·Went has ap­ proved by a vote of at least 2 to 1. We can not well tlo Income taxes otherwise. Income Tlw proposed settlement is as follow United Italy Belgium France England States The amount of the inO. • 705. 60 If Italy had the arne tax exenYptions as obtain in the United States Dec. J ;:;, Hl22, to June 1.3, 19:.?5------142, 491, 032. 9~ I she would lose !>9 per CE'nt of the revenue she now receives from her ------income tax laws. In the entire Kingdom of Italy there are only 20 2, 0-!:!, 311, 75..,. G:.? taxpayt'rs with incomes ranging from sixty thousand to one hundred Deduct payments made on account of principal since Dec. 15, 192:! _____ $164, Sii::l. 94 • thousand dollars, whereas in the rnHed States there are 25,677 tnx:­ Interest on pl'inci11al parments at ?. payrrs with incomes from forty thousand to one hundred thousand per cent per annum to June 15, dollars, and 5,694 taxpayers with inromes ranging from one hundred 192;:} ------'i,.J:::o ..::a 172,~!)~.~8 thonsaud to over fiye millions of dollars. Even with her Wgh taxes and by the practice of the strictest economy Italy has only recently Total net indE'IJtedness as of June 15. Hl2;j_ 2, 042, 199, 466. 34 been ahle to balance her budget. The burden of taxation in Italy, To IJe paid in cash upon execution of agreement__ 199, 4G6. 34 taking into accottnt the national wf.'alth and national income, is Total indebtedne s to be funded into bonds_ ~. 04~. 000, 000. 00 higher thau that of any other country, 38 per cent of het• net income The principal of the bond· shall be paid in annual installments on after· deducting a minilll'Um of ul>sistence. June 15 of each yeat· Ull to and including June 15, Hl81, on a fixed Italy's bueden ln the war was equal to 30 per cent of her total schedule. ulJject to the right of the Kingdom of ltaly to postpone national wealth. She lost 65:.?,000 men, and 458,000 of her youths were such payments falling due after June 15, 1£130, for two yeat·s, such disabled. postponrd payment to bear interest at the rate of 4~~ pet· cent per Italy rt>ceh·ed no coloniE's as a result of the war. She did gain some annum. The amount of the annual prineipal installment during the Austrian territory, including the ports of Fiume and Trieste and Brunn first fh·e years shall be . 5,000,000. The amount of the principal in­ Pa~s. This acquisition of territory added comparatively little to the stallment due the sixth year shall be $12,100,000, the subsequent national wealth and productiYe income of Italy, but meant much to her annual principal installments increasing until in the sixty-seconu rear· from a sentimental consideration and strategically. The World War of the debt-funding period the final principal installment shall be changf.'d the geography of EuropE', and the ports of Fiume and Trieste $79,400.000, the aggregate principal in tallments being equal to the are of reduced commercial importance. total pl'incipal of tile indebtedne.. s to be funded into bonds. Italy has none of the principal raw materials except silk. She lll'URt The Kingdom of Italy shall have the right to pay off additional import a large part of her food and all of her requirements in oil, amounts of principal of the bonds on June 15 and December 15 of any coni, cotton, iron, and copper. She is rich in water power and cheap year upon 90 day. · advance notice. labor, but ~be must have capital to develop her water powN' before The bonds to be issued shall bear no int:Pre t until June 15, 1930, sht> can derive any suu tantial benefit' therefrom. and thereafter shall bear interest at the rate of one-eighth of 1 per Italy's trade balance bas always been adverse. Italy is one of thE cent p<>r annum from June 15, 1930, to June 15, 1940; at the rate be t customees of the lJnitE'd States, being a large purchaser of our of one-fourth of 1 per cent per annum from June 15, 1940, to June surplus cotton, wbeat, and food products. During the pust nine months 15, 1950; at the rate of one-half of 1 per cent per annum ft•om June Italy imported from the United States raw material and food of the l u, 1950. to June 1;), 1960; at the rate of three-·fourth of 1 per cent value of $200,000,000, and she exported to tbe United States $G3,000,- per annum from JunE' 15, 1960, to June 15, 1970; at the rate of 1 per 000. Her impot·ts from America were nearly four tim<>s her E.'Xports cent per annum from June 15, 1970, to ·June 15, 1980; and at the to this country. If Italy's rf.'babllitation is completed she will be 1926 c·ONGRESSIONAL. RECORD- HOUSE 2145 al>le to purchase much greater amounts of these surplus agricultural Mr. COLLIER. 1\Ir. Chairman, I yield to the gentleman products from. the t"nitPd States, which she sorely needs but which, from Florida [Mr. GBEE-"']. under her present economic .condition, she is unable to buy. llr. GREEN of Florida. Mr. Chairman and gentlemen of the American agriculture languishes, and its greatest need is a market Committee, in almost all of my prepri.mary speeches while I was for its surplus products. Nothing will ·contribute more to the re­ running for Congress I pledged the people of the great State habilitation of agdculture than extending its markets, and the com­ of Florida that I would unalterably oppose the cancellatioi} of mittee is of the opinion that the stabilization of the currencies 1n our foreign war debts. A pledge once made to me is solemn Europe and the restoration to normal industrial and economic con­ and binding. Therefore, I would not feel right if I did not, at ditions will contribute more to providing this market than anything this time, register my protest against the pa sage of H. R. else. 'l'he South and West, the great agricultural sections, are vitally 6773, which said bill, in my mind, almost completely cancels interested in broadening their markets, and a definite settlement· of the debt now owed by the Kingdom of Italy to the United these international obligations will go far toward bringing about this States of America, this debt amounting to $2,042,000,000. desired end. Under the provisions of· this bill we get no interest for the The stand.a.rd of living in Italy is lower than that of any other first five years and get only $5,000,000 principal. Thereafter important nation. It was frankly stated by the Italian commission we receive the minimum sum of one-eighth of 1 per cent interest that in southern Italy the standard of living was far below that of for 10 years from June 15, 1930 ; during the next 10 years we the humblest and poorest of American citizens. The calories of food receive one-fourth of 1 per cent interest from June 15, 1960, to consumed are less than in any other nation and are provided by the June 15, 1970. We receive th1·ee-fourths of 1 per cent interest coarsest and cheapest (>f fats. This :ts not from choice but from the from 1970 to 1980. We receive 1 per cent and during the last stern necessity of poverty. _ 7 years we receive 2 per cent. -The total amount to be received Italy's economic ability to pay is seriously affected by three laws in full payment of the indebtedness of Italy to the United of the United States. The Italian commission cited these acts, not States extending over a period of 62 years, principal and qu estioning the inalienable right of the United States to enact them, interest, aggregates the sum of $2,407,000,000. nor in a spirit of criti ~ ism or in a complaining way, but solely for the The provisions of this bill can not even be compared to the purpose of showing that Italy was rendered less able fi.nancially to provisions of the bill for settlement of the British debt, which meet in full the obligation to the United States. passed the House before I was a Member of it. This British ''(a) Our immigration law. Prior to its enactment ItaUan immi­ bill allowed the United States Government 3 per cent interest grants to the United States remitted annually to their families in Italy and upward for all unpaid amounts and assured the people of from one hundred and fifty to two hundred million dollars. Restricted the United States full payment of principal immigration has lost to Italy this source of revenue. . Under the Dawes settlement Italy receives from Germany for "(b) The ,nationai prohibition law of .the United States, which reparations $16,000,000 for the first year and a graduated closed the market for the sale of Italy's wines and liquors. amount each year thereafter, and her receipts from other re­ " (c) Our high custom duties, which restrict the importation of somces will bring her annual receipts far . over $20,000,000 Italy's goods into the United States." annually for the next few years. Now, under the proposed bill The Italian Government is indebted to Great Britain for money bor­ why has not your committee provided that the United States rowed to ald in the prosecution of the war to the -amount of $2,500,- would receive her large payments and her large rates of interest 000,000. Creditor nations can make such terms of settlement with at the time when Italy is receiving under the Dawes settlement. debtors ~s they see fit, but debtor nations must shQw no preference as If that were done there would be a hope that Italy would pay between creditors. Italy is le:ally and morally obligated to settle her her indebtedness to us, but when you ~tretch out her payments indebtedness with Great Britain on at· least as favorable terms to Great over 62 years, beginning with the minimum and going to the Britain as this settlement. The Italian commission recognized this maximum; it is practically the cancellation of 75 per. cent of principle and stated that th~y would offer a settlement with England the amount she owes us, because she will grow less and less on the same basis. Italy, therefore, bas a foreign indebtedness growing able to pay. It is . true her income from industries possibly out of the war of over foUl' and a half billions of dollars, an amount will increase, but this is not in comparison with which she will equal to the indebtedness of Great Britai.D. There is no comparison receive from the huge sums she will get under the Dawes between the national wealth, ability to transfer credits, commerce, and settlement. - financial conditions of the two countries. The commlss~on in determin­ During the war our ministers and orators went over the ing Italy's capacity to pay the United States was in duty bound to take country patriotically and earnestly calling upon the American cognizance of her i~debtedness to Great Britain, which reduced her people to· buy Liberty bonds, to which request they nobly re­ capacity to pay the United States. sponded and purchased to the limit, even some of them bor­ With Italy's constantly increasing popnlatlon, owing to immigration rowing the money to do so. At that time they were pledged restriction laws of the various countries, it is doubtful if Italy's indus­ that their bonds would draw interest and that also the money trial development can keep pace with the increasing demand of her loaned to foreign nations would be fully paid to the United population for subsistence. States, together with interest thereon, the passage of this With these conditions confronting the A.mPrican commission the com­ bill, my fellow Members of the committee, is a brea~h of thi.s mi sion realized that it was impossible for Italy to pay her indebtedness solemn pledge made to the American people at the time_ when in full, principal and interest. our country faced greatest disaster. Many of these bonds After the above statement, what can we do? Those who were sold by their purchasers at a discount, and do you mean oppOse the pending settlement ay wait a few years and see to tell me that it would be equitable and fair for the tax­ what happens. Advocates of the League of Nations say jt~in payers of the United States now to forfeit and donate to the the League of Nations and then settle the Italian debt. The Italian Government approximately ~2,000,000? If this bill old proverb is, " Quick payments make fast friends." We can should become a law, it will cost to every family in the United not be sincere friends with any nation and no nation is likely States· of America $175. Can you consistently ask me to vote to be a sincere friend of ours as long as there is between us to shoulder a tax obligation of $175 upon every family in the the eternal qnestion of "How much do I owe you." second congressional district of the State of Florida. I shall The pending settlement is the best for us and the fairest for never vote for any such arrangement. Italy we can make. If your Republican Party desires to cancel the debt owed During the late war, it_ was essential that Italy hold her by Italy to the United States, why do you not come out in the froutier. If the enemy had gotten to Rome and to the Medi­ open, call it a party issue, and cancel it and shoulder all ~e terranean ports, the result to our allies would have been very responsibility therefor? As long as I vote the Democratic grave. ticket-and I shall do so, so help me God, the rest of my life­ Italy held her frontier. We sent American troops to help ! shall never vote to compel the taxpayers of America-the her, but we were able to send only a scant brigade of Infantry, farmers, the laborers, and those so little able-to pay this aside from our aviators of whom the gentleman from New great burden which should be paid by the Italian Government. York [Mr. LAGUARDIA] was one.. The units of that brigade were Some of you advanced the idea, better the theory, ~hat Italy sent from place to place on the Piave and the Togliamento to is impoverished and unable to pay, but may I remind you spread the rumor that American forces were present in great that on November 20, 1925, J. P. Morgan loaned to the Italian numbers. We did our best, considering our "condition to send Government $100,000,000. Surely Morgan had to have a show­ troops .. , Italy is now doing her best, " considering her condi­ ing and knowledge that the loan was good before he made it. ti-on to pay." These Italian emis. aries appeared in New York in fine clothe , In August, 1924, I inspected the Italian front, where the rich linens, and boastful minds and secured the loan ; now Americans had served and where some American soldiers they come to us, so to speak, in rags and with empty hands died. I saw enough of economic conditions in Italy to realiz~ and ask us to donate 75 per cent of their lawful debt. that the report of our Ways and Means Committee is correct. Mr. Speaker, some have gone so far as to say that if the I hope you ratify this settlement, and I know you will by a settlement is rejected we will never receive anything from 2 to 1 vote. [Applause.] the Italian Government, but may I suggest, emphatically, that 2146 CONGRESSIONAL RECORD-HOUSE JANUARY 15 the national integrity of Italy will eventually compel her to to help the aristocracy of Italy. It is going to help give more pay in full. power .to a dictator, more power to an autocrat, more power Italy is not a pauper nation. May I remind you that she to an msnfferaule and bloody tyrant. Little good it will do has 40,000,000 people and an area of 119,000,000 square miles the people of Italy. of land; 46,000 workers in her quarries; 200,000 fishermen . And the plea of Christian charity loses its appeal when I con­ bringing in a vast amount of wealth from this source; 243,000 Sider the fact that these same people, who now come asking for industrial establishments with 3,000,000 workers employed in a virtual Cf:l)lCellation of this debt and can give us only them; about 800 silk spinning mills, probably the greatest $5,000,000 a ·year on that debt for a number of years, can spend silk spinning country in the world; also produces 263,000 $173,000,000 for their army. When they do that their plea metric tons of sugar annually, and has colonies extending over loses its appeal with me. Let them wipe out the $173,000,000, an area of 46,000 square miles. Yet those of you who would or ·a large part of it, used in preparation for killing and injur· pass this iniquitous bill contend that she is an impoverished ing people, and I will go far toward a cancellation of the whole nation and unable to pay. Her per capita tax is one of the debt. smallest in the world. Her vast resources, together with her It is not only the tyrants of Italy who will be benefited. It more than $20,000,000 income annually under the Dawes is first and foremost the international bankers who have been reparation settlement, easily enables her to pay every cent of acting as fiscal agents for foreign governments in this country. what she owes the United States, together with a rate of They dragged us into the war with their lyi,ng propaganda, in 4 or more per cent of interest. order to help collect their debts. They profiteered on the Amer­ The debt of the United States is more than $20,000,000,000. ican people during the war. Now they are at the bottom of this We are paying on this debt 4 per cent interest or more per whole proposition again. Have you heard of their loans being annum, and yet this bill provides that Italy, who owes us funded, their private loans? I have not. about two and one-half billion dollars, shall pay on an average The gentleman from New York [Mr. 1\IILLs] says: of less than 1 per cent interest per annum, and in addition thereto that which will amount to approximately the cancella· I can not conceive of our Nation in the position of an overgrasping tion of 75 per cent of the debt. creditor haggling over the last penny of a debt. • It is not the taxpayer of the foreign powers that I feel it my Oh, no ; and yet the money power, which he so ably repre­ duty to protect and represent, but it is of the citizens of the sents on the floor of this House, does haggle over the last penny great State of Florida and other sovereign States of.America. of a debt when it is concerned. He says further : Much has been said about the great economy practiced in I can not conceive of our Nation insisting on payments so large that Italy in order for her to meet her obligations. Yes; this sup. they could not be met without the sweating and degradation, social posed economy is practiced in this 1\Iussolini government; yes ; and economic, of 40,000,000 honest and industrious human beings. the Roman government, the one which you are undertaking by the passage of this bill to so greatly favor. The King of Italy Beautiful sentiments these. I wish a little of the same sym· rccei Y"es a salary of $3,250,000, and the Duke di Genova a pathy might be accorded the 40,000,000 farmers of this Nation, salary of $200,000, and the Duke d'Aosta-yes; this great duke who are also sweating and in degradation. The best speech who would have overthrown the king instead of repelling made on the floor of this House against this debt settlement Mussolini, as the King desired him to do-is compromised with was the speech of about half a minute made by the gentleman under this unstable Mussolini government and receives a salary from Oklahoma [.Mr. C.ARTEi], who asked very pertinently: of $200,000 a rear; the Duke degli Abruzzi a salary of $200,000 What about the funding of the Federal loans to the farmers? a year, the Count di Torino a salary of $200,000 a year, and And I repeat the question: Have you heard of these loans Prince del Piemonte a salary of $200,000 a year; the Duke di being funded? I have not. [Applause.] Cariganano receives a salary of $200,000 a year, the Prince I would like to see it done; and yet this is a proposition Letizia $200,000 a rear, and Mussolini a salary of $30,000 a to saddle on the backs of those farmers and laborers an addi­ year as premier ; for the ministerial functions he discharges tional $2,000,000,000 of taxes, because in the end they are the outside of those of premier he receives $40,000 a year, making ones who will have to pay. $70,000 in all, and he probably receives other amounts. The I ask, Why this feverish hurry? Why must we hurry with officers of his black-shirted Fascisti receive salaries in the the settlement now? We are not getting very much, so let us aggregate of $480,000 a year. wait. If Italy ls near bankruptcy, then let Italy get on its Now, Mr. Chairman and fellow Members of this CDmmittee, feet; let us wait until she is able to pay and then make a this is the vastly extravagant government which you would settlement. EYerybody knows why it has to be hurried: To compel the United States taxpayers to contribute toward the stabilize conditions and enhance the value of the privately maintenance of. You already know too well the tyranny of owned secm·ities. Why not fund the farmers' debt. Fund that this man 1\Iussolini, how he is murdering citizens through his debt for 62 years, the debt of the farmers of the Nation. guards, the Fascisti troops tearing down buildings, blowing up They are the backbone of the Nation. They have built this temples, and driving lawful religious citizens from his domains. Nation, and scores of them are committing suicide because they He boasts about his power and tyranny and, in my opinion, he are driven to it by the money changers and the money power of bas a vision of a great second Roman conquest of the world, this Nation. But you do not make any move to fund their in which he will take his soldiers and conquer the world, re­ debt; and I will venture the prophecy that when we come to construct Rome, and place all nations at his feet. I put you discuss agriculture on the floor of this House, and it becomes on notice here and now that I shall not cast a vote here for a question of doing something for the farmers, the same people this bill, which, in my humble opinion, will foster this tyran­ who are now talking about the degradation of Italy will turn nical Mussolini government in Rome. down all our pleas for the betterment of the farmers. Mr. COLLIER. 1\Ir. Chairman, I yield to the gentleman Mr. AYRES. Will the gentleman yield? from Minnesota [1\Ir. KvALE] eight minutes. Mr. KVALE. Yes; gladly. The CHAIRMAN. The gentleman from Minnesota is recog­ Mr. AYRES. Suppose at the close of the CiYil War a Euro· nized for eight minutes. pean nation had demanded a settlement on the part of this 1\Ir. KVALE. Mr. Chairman, I would be inclined to vote for Nation of some two billion dollars. The chances are that we a large reduction of all the European loans, because I favor cmld not have made a satisfactory settlement. But with 10 anything that has even a remote resemblance to humanitarian years we could have made complete and satisfactory settlement, principles. Indeed, I would be glad to vote for the complete or at least we could have made arrangements to do so. Would cancellation of all the indebtedness of the European nations if they not under those circumstances have waited for some yem·s I could be convinced that that would accrue to the benefit of until we had gotten on our feet? the common people of those devastated countries; and, further, Mr. KVALE. I think the gentleman is entirely correct in if I knew that they needed it more than some of our people his contention. As I have already pointed out, let us give Italy need it. The nearest I have come to being swayed to vote for a few years and then make a settlement. [A,Pplause.] this settlement was when I listened to speeches like that given The CHAIRMAN. The time of the gentleman from Minne­ by the gentleman from Kew York, my good friend LAGUARDIA, sota has expired. or the gentleman from Virginia [Mr. :\looRE], who have put it :Mr. COLLIER. Mr. Chairman, I yield eight minutes to the on a high plane and have spoken of it as a Christian act to be gentleman from Alabama [1\Ir. STEAGALL]. [Applause.] done in a Christian way, of justice tempered with mercy. I Mr. STEAGALL. l\Ir. Chah·man, I do not wish to criticize appreciate the fact that they are actuated by the highest mo­ the Debt Funding Commission, and certainly I do not wish to tives of patriotism and Cl1ristianity ; and it is hard, gentlemen, criticize the :Members of the House of Representatives who 1t is hard for a pE'rson who has endeavored to preach the prin­ served on that commission. I want to say, however, that I ciples of the Nazarene for a number of years to turn a deaf ear think it unfortunate that the House of Representatives should to appeals of that kind. But, my friends, I am convinced that haYe to approach the consideration of this questlon in the way this is not going to help the common people of Italy. It is going the matter is presented to us. In my humble judgment it 1926 CONGRESSIONAL RECORD-HOUSE 2147 would haYe been much better if we had left the matter entirely who attempted to make us believe that the settlement with alone until the Congress was ready to take up the question in Great Britain re11re ented the highest achievement in states­ its own way in meeting the responsibility which is ours. I manship and wisdom. think it would have been much better if we had appointed a 1Ve find ourselves, even at this early date, at the mercy Committee of the House of Repre entatiYes representing all of the British rubber trust, as result of which Great Britain political factions and shades of thought and the various points will collect out of us in extortionate prices for rubber enough of \iew represented on ·this floor to take up this matter in ns to pay off her entire indebtedness in less than a decade. own way during a se sion of Congre s n.nd while in touch The debt that Italy owes us is founded upon the highest with the Members of the Ilouse and thus go about the task moral and technical consideration. The money loaned was as repre entatives of the legislatiYe branch of the Govern­ used by the Italian Government to sa\e its life, and no higher ment. This would have been a safer course for us than consideration than this can be found to support any contract. merely to name two Members of the House to sit with those The American people raised this money at great sacrifice. repre enting the Executive and the various departments com- They bought bonds in response to the appeal made to their po. ing the commission. - patriotism to back up the policies that obtained in the con­ In this connection I want to say that I question the wisdom duct of the war in which we were engaged. In many instances of having committees of Congress sit during vacation to pre­ the purchasers of these bonds were forced to sell them at pare legi lation. I think it the better practice, whether in deal­ enormous losses. They were sacrificed under pressure to the ing with the settlement of foreign debts or in the preparation of bondholders who reaped vast profits at the expense of the tax legislation, to have all committees representing Congress small investors that came to the rescue of the Government sit in n. regular way while Congress is in session and while in in its hour of need. The same bondholders are the guiding touch and communication with the entire membership of the spirits of the present policy under which we are asked to House, whom they are to represent. cancer practically all the war debt of Italy and transfer the I think I am fairly familiar with the hi tory of the negotia­ burden to the people of our own country. already bowed down tions through which the Italian debt settlement was reached. under a weight of excessive and unjust taJCes. I read such account as were carried in the press and ha\e read The figures show that the cash Yalue of the settlement we the hearing', if such they may be called, conducted by the Ways are asked to make is only $538,000,000, based on the rate of and Means Committee of the Houge. That committee was interest our Government now pays-the loan to run ovel' a scarcely permitted to conduct any inve.·tigation. No one was period of 62 years. This means that we are canceling the debt heard by the committee except those favoring the settlement to an amount in excess of the sum loaned dm·ing the war. recommended by the commission, and nothing was said in oppo­ I append hereto a table showing the exact figures : sition to the plan submitted except by membtrs of the Ways June 15- and Means Committee. So great was the haste to rush the 1926------$3,000,000 bill into the House that even members of the 'Vays and ~leans 1927------1928 ______5,000,000 1929 ______5,000,000 Committee hardly found opportunity to present objection to the 5,000, 000 bill embodying the propo ·ed plan of settlement. A matter of 19311930------~------______5,000,000 such va t importance to the taxpayers of the country should 12,100,000 1932------1933 ______12,200,000 bn.n~· had a mo t thorough and searching investigation by the 12,300,000 Way and Means Committee and the fullest inquiry into every 19193354------______12,GOO,OOO pha e of the tran_action. • To reasonable expense should ha\e 1936 ______13,000,000 been spared in going to the bottom of the whole problem. The 19H7 ______13,500, 000 1938 ______14,200, 000 Debt Funding Commirsion should not haye hesitated to devote 14, 600,000 all nece ·sary time and incur all necessary expense in hiring 19391940 ______~------_ 15,200,000 expert and securing all po sible a ~ istn.nce in gathering com­ 1941 ______15,800,000 1942 ______16,400,000 plete information before reaching a conclusion. Instead of 1943 ______17,000.000 doing this the record shows that the Debt Funding Commis­ 1944 ______17,600,000 sion based its conclusions and its actions upon representa­ 1 , 300,000 1945------~------19,000,000 tion: made by the Italian Government, subject only to the 1946~------1!),600,000 verification of representatives of some of the departments of 19481941------______. 20,000,000 20, 600, 000 our Government. Even soch information as the Debt Funding 21,200,000 Commis ion posses ed was not known to all the members of 1949------1950 ______1051 ______22,000,000 the Ways and Means Committee which reported the Dlll 1952 ______23,000, 000 before us. _ 23, 00,000 19541933------~------______24, 600.000 The plan 'Yhich we are asked to ratify involves the settle­ 1955 ______25,400, 000 ment of a debt amounting to $2,042,000,000. This amount is 20,500,000 27,500, 000 made up of $1,031,000,000 loaned during the war and $617,- 1~56-----~------28, 500.000 000,000 loaned after the signing of the armistice, with interest 19581957------~------______1959 ______29 ,GOO. 000 at 4~ per cent per annum to December 15, 1922, and 3 per cent 1960 ______30,::i00,000 per annum from that date to June 15, 1925. The rate of intere t 31,500,000 now being paid by our Go-vernment. is 4ilr per cent per annum. 1961------~ --- -32,500, 000 1U6~------33,500, 000 So no one can contend that the amount stated is not justly due 1D63------34 , ;:;oo.ooo 1964 ______35,500,000 u · by the Italian Government. 36,500,000 This is no small matter to the taxpayers of the United States, 191965----~------~------66 ______1967 ______38,000,000 who furni hed this money and who are still paying interest on 1968 ______39,500.000 the bonds through the sale of which the money was raised. 1969 ______41,500, 000 The people of the United States have a right to expect this 43,500,000 1910------1971 ______~44, 500, 000 money to be paid. We, a their Representatives, have no right 1972 ______46,000,000 to attempt to give away this enormous fund or any portion of 1973 ______47,500, 000 it. No man has a moral right to attempt to make huge gifts 49,000,000 1974------~------60, uoo.ooo out of the funds of others. The people· of the United States 19761~7~------______52,000, 000 expect their Representatives to be just and reasonably generous 1977 ______54,000,000 to all .our allies in the Great War who fought side by side 1978 ______56,000.000 1979 ______59,000,000 v.ith us to preserve the libertie of mankind, but they do 1980 ______61,000.000 not expect nor desire that we shall cancel any of the debts 62,000, 000 1081------~------64,000,000 due us by our allies upon considerations of generosity or mere 1982 ______~ ------~--- 67,000,000 sentimentality. 1983 ______69, 000,000 It should not be forgotten that the influences now attempting 108519 8 4------~------______72,000.000 to drive througll Congress this settlement with the Italian 74,000,000 1086------1987 ______77,000, 000 Government are the same under which the settlement with 79,400,000 Great Britain was put over. I would not compare the two Total ______2,042,000,000 cases in every particular. I appreciate the great part being played by the people of England in leading the world Under this plan Italy is to pay $25,000,000 during the first back to a basis of stability and peace, and I recognize that five years. During this time, at the rate of 4.1 per cent per so much is not to be expected of the people of Italy. But annum-the amount now being paid by our Government-we the purchasers of rubber in America, if nobody else, will ce:c­ will pay $418,610,000 interest on the bonds through which we tainly agree that those of us who opposed the British settle­ raised the money now due by Italy. The extension of the debt ment were justified in not taking the word of our statesme11 over. a period of 62 years is of ih!elf practically a cancellation. CONGRESSIONAL RECORD-HOUSE JANUARY 15

It amounts to an agreement among those now living that this proposes, therefore, to devote none of . the proceeds of the present loan -debt shall in large part be paid by somebody else to somebody to ordinary expenditures but to hold the entire amount as a gold else after all of us now living are dead. reserve available for currency stabilization purposes, leading to the There is no way to justify this settlement unless upon the final steps in the G\)vernment's definite fiscal and financial policy, of ground that Italy can not pay in full. The cancellation pro­ which a completely stabilized currency is a vital part. posed can not be justified except upon the ground that we can GOVERN ME:NT DEBT not collect. So far as I am concerned, there is no proof to Since 1923 the Italian Government has made progress in funding convince me that Italy can not pay. There is nothing to show 1\S flaatin, debt and in reducing the outstanding amount of its total that this debt can not be collected. internal debt. On June 30, 1923, the total internal debt amounted The population of Italy is about 40,000,000. Ttey possess to 95,54~,000,000 lire; on June 30, 1925, it stood at 90,841,000,000 about $35,000,000,000 of wealth. The Italians are a proud, his­ lire, a reduction of over 4,700,000,000 lire. With the exception of a toric people; they have contributed much to the history of very limited amount of bo»ds issued ill London prior to 1914, the civilization; they are a productive people; they have 46,000 present l9sn constitutes the entire Italian Government external debt square miles of <:olonies; they have vast industrial estab­ in the hands of the public. The Government's indebtedness to the lishments, with several million men employed in them; they United States Government has been funded under an agreement dated have a vast silk industry; a great wealth of sea food. She November 14, 1925, subject to ratification by the United States Congress has quarries representing much wealth ; her bank deposits and the Italian Parliament. This agreement protides for payment are four and one-half times what they were before the war; over a period of 62 years, beginning with payments of $5,000,000 there has been an increase of population of more than 2,000,000 annually during the first five years, gradually increasing during the since the war. life of these bonds to approximately $26,500,000 in the twenty-fifth Germany, defeated in the war, with her colonies taken, after year and to approximately $31,500,000 in the twenty-sixth year. The losing one of the most fertile provinces in the south of Ger­ Italian Government's only other intergovernmental debt is that to the many, with the great Ruhr district occupied for a long time British Government, discussion of which is under way. bv the victorious forces of her enemy, is required to pay The above bonds are offered for subscription, subject to the condi­ $000,000,000 annually. But the nations who get this $600,- tions stated below, at 94% per cent and accn1ed interest, to yield 000,000, which we are helping them to collect, are to pay us over 7.48 per cent to maturity and over 7.56 per cent to the average next year only a little over $200,000,000. maturity date. Italy will collect from Germany in 1927 about $20,000,000. All subscriptions will be receiTed ubject to the issue and delivery During the next five years she will collect about $190,000,000. to us of the bonds as planned and t:o the appro>al by our counsel of This means that she will collect in reparations during that their form and validity. time about $160.000,000 in excess of the amount to be paid us. Subscription books will be opened at the office of J. P. Morgan & Co. During the next 40 years Italy will collect more than $1,000,- at 10 o'clock a. m., Friday, November 20, 1925, and will be closed 000,000 in reparations from Germany above the amount that in their discretion. The right is reserved to reject any and all appli­ will be paid us under the settlement proposed. cations, and also, in any case, to award a smaller amount than It will be remembered that Germany is to pay her reparations applied for. over a period of 40 years. I should like to have some one The amounts due on allotments will be payable at the office of explain why Italy · is unable to pay us a.n amount equal to the .T. P. Morgan & Co. in New York funds to their order, and the date reparations collected from Germany during the time those repa­ of payment (on or about December 9, 192;)) will be stated in the rations are being paid. If Italy is not able to pay such an notices of allotment. amount during the time she is collecting German reparations, Temporary bonds or Interim receipts will be delivered, pendin-: t11e how can it be figured that we may rely upon Italy to make her preparation and delivery or the definitive bonds. largest payments to us after the time covered by the pay­ .A.pplication for the listing of the definitive bonds on the New York ment of German reparations? Stock Exchange is to be made by the Italian Government. In this connection I desire to submit an advertisement in the J. P. Morgan & Co.; First National Bank, New York; New York Commercial of November 20, 1925: Guaranty Co. of New York; Banis, Forbes & Co.; $100,000,000 KINGDOM OF ITALY E:x:TEll~AL LOAN SIXKI~ G Fl1XD 7 PElt Lee, Higginson & Co. ; Brown Bros. & Co. ; E. H. & & CENT GOLD BO!'IDS-TO BE DA'l'ED DECEMBER 1, 1925-To J\IATURE Rollins Sons; Spenser Trask Co. ; National Bank DECEMBER 1, 1951-I~TEREST PAYABLE JCKE 1 AKD DECEAiBER 1 of Commerce in New York; The Equitable Trust Co. of New York; New York Trust Co. ; Corn Exchange EXCEPT FOR THE PURPOSES OF THE SIXKI~G FUND, THESE BOXDS ARE XOT Bank; Bank of the Manhattan Co.; Seaboard National SCB.TECT TO REDEMPTION UNTIL J UXE 1, 1941, 0~ AND AFTER WHICH Bank; Emph·e Trust Co.; J. & W. Seligman & Co.; DATE THEY MAY BEl REDEEMED, AT THE OPTIO~ OF THE GOVERNMENT, Marshall Field, Glore, Ward & Co. (Inc.); IIayllen, 0~ ANY IXTEREST DA'rE, AS A WHOLE BUT NOT IX PART, AT 100 PER CENT Stone & Co.; Redmond & Co.; White, Weld & Co.; A cumulative sinking fund which, it is estimated, will redeem the Ladenburg, Thalmann & Co.; J. G. White & Co. (Inc.) ; entire issue by maturity, will be created by the Kingdom of Italy by The National City Co., New York; Bankers Trust Co., annual payments of $1,500,000 on September 15 of each year, beginning New Yorl;: ; Kidde1·, Peabody & Co. ; Halsey, Stuart & September 15, 1926. Such payments, together with sums equal to the Co. (Inc.) ; Mechanics & Metals National Bank; Ameri­ interest on all bonds previously acquil·ed for the sinking fund, are to can Exchange-Pacific National Bank; Cherulc.al Na­ be applied on the succeeding Deeember 1 to the redemption, at 100 per tional Bank ; National Park Bank; Clark, Dodge & Co.; cent, of bonds drawn by lot. Bonbright & Co. (Inc.) ; Kissel, Kinnicutt & Co. Principal and interest payable in United States gold coin of the NEW Yo:BK, 1-."ovember 20, 1925. present standard of weight and fineness in New York City at the office 'l'he representation is made that Italy has balanced her of J. P. Morgan & Co., without deduction for any Ital~an taxes present budget; that her revenues exceed her expenditures to the or future. amount of 209,000.000 lire; that she is funding hE'r floating Coupon bonds in denominations of $1,000, $500, and $100, not intcr­ debt and reducing her total internal debt; that- changea ble. J. P. Morgan & Co., fi scal agents. the Italian Government has available resources and revenues sufficient IIis Excellency Count Giuseppe Volpi, Minister of Finance of the for its current requirements, both domestic and foreign. Kingdom of Italy, authorizes the following statement in connection with These are the representations that come from the Italian this issue : - Government when American money is needed at this time, yet BUDGET in the face of all these facts we are asked to \?ancel practically The Italian Government's budget is balanced. Since 1922 the bud­ the entire amount of Italy's war debt to us becau e of her getary situation has been undergoing steady improvement, and in the inability to pay. fiscal year ended June 30, 1925, actual revenues amounted to 20,- I can not bring myself to believe that, as a Member of Con­ 456,000,000 lire, and expenditures to 20,24:7,000,000 lire, resulting in gress, I am justified by the facts in accepting this contention. a surplus or 209,000,000 lire. The Government's budget for the current I shall not accept it. I shall not, upon these facts, vote to fiscal year (ending June 30, 1926), as passed by the Italian Parlia­ tn.nsfer this enormous burden to the backs of the American ment, shows an estimated surplus of over 177,000,000 lire, and in­ taxpayers. cludes estimated payments on the intergovernmental debts. Receipts 'Ve are told that represeutatives of the Italian Government ror the first three month.s of the current fiscal year, according to pro­ say, in substance, that if we would collect our debt we must visional returns, showed an excess of about 168,000,000 lire over remove tariff restriction'3 upon imports from Italy, repeal om· expenditures. prohibition laws, permit Italy to pay us in liquors, or remove PURrOSE OF ISSUE eur immigration restrictions in order that Italian immigrants The Italian Government has available resources and revenues suffi­ may come to the United States and accumulate funds to !Je cient for its current requirements, both domestic and torelgn. It sent back to Italy with which to pay her indebtedness. 1926 CONGRESSIONAL RECORD-. HOUSE 2149 I take no stock in the argument that our tari1f restrictions I we could leave the matter alone for fUrther developments. We should be removed in order to collect our debts. No man in could, certainly, afford to wait five years, during which time the United States is more uncompromisingly opposed to the we onlY. collect $5,000,000 annually. No one can tell how present tariff laws than I am, but that is a matter for the rapidly recovery and improvement may come in Italy. If we American people to determine in their own way. I would admit all that is claimed as to her inability to pay, we should rather cancel the debt than have it paid in poisonous liquors at least avail ourselves of any improvement in conditions that to debauch our youth and corrupt our politics, and the last may come, and not attempt to consummate a settlement at a thing I would ever be willing to 'do, as a Representative i11. time when conditions in Ita~y are the worst ever known, if Congress would be to tear down our immigration laws and we are to accept the contention of some gentlemen who have open om/ doors to any people who want to come here for the taken part in this ~ebate. . purpose of supporting another government, or who are unfit If we want. to g~ve away the ':ast sum wh1ch we are about to become American citizens in whose hands it is safe to trust to surrender m this settlement, 1t seems to me we should at the destiny of this great Republic. __ . least attempt ~o direct it~ use along lines that W?uld do cre?it Those who kept informed during the time the Italian Debt to our generosity. Certam!y, that can not be sa1~ e of the fundamental rights of the individual and shocking to mi sion were the guests of honor at a luncheon given at the Recess the sense of civilized society. That as citizens of a free Republic Club on Wednesday by Thomas W. Lamont, of J. P. Morgan & Co. we can not contemplate such acts with anything but a feeling of ex­ Among those present were Judge E. H. Gary; Thomas Cochran, of treme horror, and can not extend toward the governments permitting J. P. Morgan & Co. ; Mortimer L. Schiff, of Kuhn, Loeb & Co. ; Dr. such acts that spirit of friendship which should characterize our rela· Mario Alberti, Italian War Debt Commission; James S. Alexander, tions of amity with all civillzed and well-ordered nations of the world. pre ident ~ational Bank of Commerce; Frederick W. Allen, of Lee Therefore we do hereby record our solemn protest against such acta IIfn-ginson & Co.; Clarence Dillon, of Dillon, Read & Co.; George of persecution, and respectfully pray the proper authorities of our Na­ F. Baker, jr., vice chairman First National Bank; George Whitney, tional Government to take steps to advise the nations in which such of J. P. Morgan & Co·.; H. B. Baker, vice president National City Co.; offen es are committed that the same iB looked upon with disfavor by a Prof. Alberto Beneduce ; :Mortimer ~- Buckner, chairman New York large body of the citizens of our country and considered to evidence Trust Co.; Commi sioner Gino Butt, Italian War Debt Commission; a contemptuous disregard of the universal principles of humanity upon Lewis J . Clarke, president American Exchange-Pacific National Bank; which all governments are founded if their very existence is to be other Paul D. Cravath; George W. Davidson, president Central Union Trust than a menace to the peace of the world. Co. ; lloreau Delano, of Brown Bros. & Co. ; Walter E. Frew, presi­ · Fraternally submitted. dent Corn Exchan;e Bank; John H. Fulton, president National Park EDWABD C. DAY, Bank of ~ew York; Giovanni Fummi; Count , Italian P. S. MALCOLM, War Debt Commis ion; Charles Hayden, of Hayden, Stone & Co.; G. N. Mon.GA.'i, Alvin W. Krech, chairman Equitable Trust Co. ; Count Lelio Bonin P. w. WEID:SER, Longare, Italian War Debt Commis ion; Dr. Albert Pirelli, Italian S.Al\I P. COCHR.AX, War Debt Commission; Luigi Podesta, Banca D'Italia; Gino Ravenna; Committ~ e. Charles S. Sargent, of Kidder, Peabody & Co.; E. H. H. Simmons, p1·esident New York Stock Exchange; Lloyd W. Smith, of Harris, This is the kind of government that is to benefit by this Forbe · & Co.; Benjamin Strong, governor Federal Reserve Bank; settlement. I shall not lend my vote to any such undertak­ Myron C. Taylor; Arthu r 1\I. Anderson, J. P. Morgan Co.; Albert A. ing. So far as I am concerned, I shall insist that this debt, Tilney, president Bankera Trust Co.; Alber·t H. Wiggin, president along with all others of like kind, shall be paid, or that the Chase National Bank; and William Woodward, presidep.t Hanover nations owing them shall submit conclusive proof of their National Bank. inability to pay, or confess before the world that they are bankrupt in honor and good faith. If we can not collect, I While in New York the Italian Debt Commission obtained a shall not vote to prostitute the high and holy purpose for loan through J. P. Morgan & Co. in the sum of $100,000,000. which this loan was made. I shall not vote for cancellation One-half of this amount was paid to the Morgan firm for a loan of any part of this debt in order to strengthen the hold of made prior to that time. We are advised that the Italian Gov­ the present autocratic an

; . 1926 CONGRESSIONAL RECORD-HOUSE 2161 tries as well on this question of foreign debts by a reduction of France will insist upon the Italian settlement as a model this prohibitive Fordney-l\IcCumber tariff. for her own. France will demand that her debt also be scaled But the gentleman from Georgia and the chairman of the to the minimum. France will point to her war sacrifices, ·ways and Means Committee, although, in substance, admitting which, after all, were much greater than those of Italy, and that they are not in love with the terms of this settlement, hold ask that they be set off against the billions which we loaned up their hands in desperation and ask, " If not this settlement, her to enable her to meet her enemies. France will come then what?" In other words, they say that we are between armed with an array of " poverty figures " backing her claims the devil and the deep blue sea. What can we do about it? for a reduction. If we settle with Italy for 25 cents on the ·wen, if I found myself in that unfortunate situation, with no dollar, who can disapprove a similar settlement with France. compelling necessity to fly either to the one or the other, I would Fourth. By accepting the settlement we will pave the way mark time for a while and stand still. Italy throughout the for future Italian loans in the United States. Already, on the past ·even years has declined to make payment or any settle­ faith of having made this unconfirmed agreement with our ment. She bas had an involuntary moratorium for this period. Debt Commission, Italy has borrowed a hundred millions from Why not give her a voluntary moratorium for the next five our "international bankers." With the settlement finally ap­ years? And if not a voluntary moratorium, let the involuntary proved, Italy will be able to make other loans from these moratorium continue a while longer. Let us not forget, gentle­ bankers, who in turn will pass them on to our credulous men of the House, the fact that this is not payment, except fellow citizens, who must hold the bag. for the cash payment of $199,000 and the $5,000,000 for the first The settlement therefore will be a basis for the abstraction year; it is but a substitution of a new promise to pay, evi­ of several hundred millions additional from American pockets, denced by bond . And this new obligation to pay is from vast sums which in all probability will never be repaid. By whom? It is from a Government beaded by l\1u solini, a dic­ accepting the settlement we are merely giving license to Italy tator and a man who shows but little consideration for the for a raid on American investors, who are not familiar with rights of the people; a man who is surely riding to a fall. the unstable character of the present Italian Government. Aud so I say it is not payment that we are getting. It is but a Fifth. We will add enormously to the p1·estige of :Mussolini new promise to pay from a Government that will some time be and his faction. We will rehabilitate him. We will give him supplanted by a different Government. countenance before the nations of the world. We will The plan of the gentleman from Tennessee [Mr. HULL] sh·engthen him among the people ·of Italy, for by putting offer a practical and businesslike solution of this situation. through this settlement so favorable to Italy he will demon­ In any event, I am unable to reach the conclusion under the strate to them that be is able to do something. '\Ye are facts now before us that we should approve this settlement. perpetuating him in power. 1\Ir. COLLIER. 1\Ir. Chairman, how much time have I re- We are giving stability to that which is writ upon water. We maining? . are saddling upon the helpless back of Italy this " Old man of The CHAIRMAN. The gentleman has eight minutes remain­ the sea," who bas mounted it. We are postponfng the clay of ing. Italian liberty. 1\Ir. COLLIER. Mr. Chairman, I yield the remainder of my [At this point the gavel fell.] time to the gentleman from Alabama [Mr. HuDDLESTON]. [Ap­ Surely, Mr. Chairman, to speak of liberty is not the signal for plause.] the gavel-to fall in this Chamber. [Laughter and applause.] l\1r. HUDDLESTO~. Mr. Chairman, as the final speaker of We are postponing the time when the liberty-lo\ing people of the opposition to the Italian debt settlement I wish to u e the Italy may enter into their own. We are making the conditions little time at my disposal in a sort of summing up oh a single harder upon them. We will make the explosion when it does aspect of the debate. come more terrific than if the correcti-ve forces were permitted For the sake of contrast I place my attitude as that of an to assert tbemselv.es in due course. The longer the hand of old-fashioned Democrat in opposition to that of the gentleman this usurper lingers. upon the throat of Italy the more desper­ from Connecticut [l\Ir. TlLsoN], who is the majority leader. ate will be the revolt when it does come. He has favored us with his visualization of the results which Gentlemen are afraid of communism, and there have been may follow from approving this . ettlement. I have also ana­ hints upon this floor that some would like to see Mussolini lyzed the situation and I visualize results which, it seems to me, perpetuated in power as one who throttles radicalism with the will follow. My conclusions are in sharp conflict with his. strong hand. Let me ay to them that they are merely inviting They are- in Italy a greater explosion when it does come. The time for . First. \Ye are exchanging one promise to pay for another autocracy is not in this period of the world's history. Its days mere promise to pay. The settlement is not a ca ·b settlement; are passlng away. It is not possible-it can not be, God will it is merely the acceptance of a promise to pay in the future. not let it be-that a great people like the Italian people can be There is no guarantee and no surety, yet we are scaling down held permanently under subjection to a despot. It is merely our debt to 25 cents on the dollar. a matter of a little time. Italy will come. Her people will ue We are accepting the promise of a revolutionary and usurp­ free again. The power of Mussolini and his faction will ing go-vernment, representing nothing but force, for the promise crumble into dust and men will wonder that it ever was. of an honorable and a constitutional government, which repre­ By this settlement and by adding to Mussolini's prestige and by sented the Italian people. We are accepting in lieu of a legal enabling him to secure other loans it may well transpire that and binding promise the promise of a man on horseback, who we make a condition in Italy from which they can be released for the moment merely has seized upon the reins of go-vern­ only by a bloody revolution com11arable to that which occurred ment of a great nation. We are exchanging a promise, which in Russia. We may be inviting communism in its most desper­ every honorable Italian is bound to recognize, for a promise ate and bloody form when we do this thing. for which no patriotic Italian can feel any respect. What, then, is the spirit of Fascism? Down the centuries Second. By accepting this settlement wa are doing an ex­ rings the Roman arrogance: ceedingly grateful thing for Morgan, of Wall Street, and tha other international bankers who have recently made the $100,- Let the carrion rot; there are no noble men but Romans. 000,000 loan to the Italian Government. lt was not their "The Brenner Pass is but the beginning; it is not the end. purpose in making the loan to make a permanent investment One Italian is worth a thou and other men." That is the spirit for themselves and to collect the interest on the loan. They of Fascism. Indeed, gentlemen, it is the ravings of mania. The bought the bonds to make the commissions and for resale at spirit which it expresses bespeaks an effort for world conquest. a profit. They bought them to unload upon credulous Ameri­ It is a grandiloquent dream of world power and of world ·em­ can investors. The acceptance of this settlement will enable pire. them to sell the bonds and to pocket the millions that they This megalomaniac dreams of himself as wearing the toga will have made in commissions and what not. And the Ameri­ of the Cmsars, with Rome rehabilitated and rebuilt and again can people who are led to buy the bonds may collect the debt sitting on her seven hills, the mistress of the world, drawing when it matures, if ever they can. tribute from every land and clime. He dreams of Rome re­ Third. By accepting a new Italian promise to pay our debt stored, with himself as its great and central figure. He dreams at about 25 cents on the dollar we establish a precedent for of himself as a Colossus bestriding civilization. He uses the the settlement of the French debt on similar terms. Let it be House of Savoy as his puppets for the moment. He merely tmderstood that the Governments of neither of these countries bides his time. want ·to pay anything at all, nor would pay anything except By making this settlement we give him countenance and that they feel that it is to their selfish interest to do so. strength. We enhance his prestige and enable him to borrow They dare not resort to open repudiation. France would like vast ~urns in our country with which to finance his " black a 23-cent or even a 10-cent settlement, or, better still, a wip­ shirt" legions and to strengthen his hold on Italy and probably ing dean of the slate without any payment whatever. eventually to cast a challenge to the world. J 2162 . CONGRESSIONAL .R.ECORD-HOUSE JANUARY 15 Ah, gentlemen, by making this settlement, it may well be · French Government in America. Our troops returning from that you are handing to a glory-mad usurper a torch with France brought accounts of merciless profiteering on American which to set the world on fire. It may well be that you are soldiers during the war, and of the hostile attitude of the contributing to another world conflagration, with incalculable French Army and the French people toward all things Ameri­ cost of blood and treasure e\en to peaceable America. [Ap- can. The French Government in settling with the United plause.] States at the close of hostilities exhibited a rapacity and a Mr. COLLIER. Mr. Chairman, I yield to the gentleman from disregard for American rights which did not tend to further Mi.· ouri [Mr. C.A~NON]. endear French inte1·e ts to the American people. As a result Mr. CANNON. Mr. Chairman, the distinguished gentleman the 11;ttitude of America. toward France had so changed by who opened this debate prefaced his remarks by asking what the time her representatives reached Washington that it was we would have received from our loans to the Allies if early decided to let some other nation better intrenched in the Germany had won the war. Let me a k what the Allies would good graces of the American people open negotiations and se­ ha\e paid had Germany won the war: Had it not been for cure terms which would pave the way for cancellation. With Ametican money and American troops the Allies would to-day that in view Italy was selected to make the attempt, with lie prost rate and dismembered. And they would be paying the expectat:!on that having established a precedent, it would to-tiay iu reparations and indemnities sums so stupendous that then be a simple matter to secure similar terms for France. the amount which they owe us and which they are now seek- This plan is indicated in a circular letter issued by a New ing to repudiate would eem infinitesimal in comparison. York bank in which the statement is made: The advocates of thi. proposal to give Italy all of the prin­ Should an agreement be reached with Italy similar agreements on cipal and part of the intere t which he owes us seem to take the French debt are almost inevitable. the position that .America and not Italy wa. the favored na­ tion in this transaction. Let us see just what disposition was So the question of cancellation of the Italian debt and the made of the benefits accruing from this loan. Italy secured cancell~tion of the French debt may to all intents and purposes territory which he had coveted for centuries. She exacted be considered as one and the same proposition. In cancellino vast indemnities from Germany and Austria. She received the major portion of the Italian debt, as here proposed w: commercial conces. ion. and advantages which have enabled are in effect cancelling the major portion of the French debt her in the short time that. has elapsed since the war to rise The interest of the banking houses of 'Vall Sh·eet is even from fifth to third place among the shipping nations of the more obvious. During the war and since the clo e of the war world. She drank deep of the cup of victory and ated to the securities of European go\ernments have fallen to unheard­ the utmost age-old ha trecl. · and racial antagonisms. of low levels. Fabulous quantities of these depreciated Eu­ What material advantages did the United States reap from ropean bonds have been bought up by American and interna­ the war? None. Xot a quare foot of territory. Not a dol­ tional banking interests for a mere ong.. And undoubtedly lar of indemnity. Not a single commercial concession. even at these low prices, they paid all they were worth unde; America poured into Europe during the war an unending present conditions. For with the great debts which these coun­ stream of money, men, and munitions of war. She taxed her tries owe the United States; and which should have priority, citizens as American citizens have ne\er been taxed before. such bonds are worth hardly more than the paper on which She brought back broken in body and health the flower of her they are printed. young manhood, the sacred duty of whose support will not be But if the United States, out of overflowing O'enerosity and fully discharged in the next hundred years. And now, Italy, in appreciation of the altruistic sentiments so eloquently ex· one of the nations which were the immediate beneficiaries of pre ~ed by tlle affable and genial gentlemen sent by Italy and that sacrifice, refuses to repay even the interest on the money France to conduct these negotiations, can be prevailed upon to loaned her on her solemn promise to pay. cancel our debts or to reduce them to a minimum, as is here This debt is for cru h borrowed by Italy from the United propo ed, then all other obligations of these Em·opean coun­ States and for which the Italian Government gave its promis­ tries, including the cheap bonds so thoughtfully acquired by sory note. The United State did not have this great sum in our banking friends, will immediately advance to par. And in the Treasury or in international balances when the loan was a night these great banking interests will have been endowed negotiated. Therefore it had to be borrowed from the Ameri­ with collossal fortunes beside which the radiant dreams of can people in order to lend it to Italy, and the American Gov­ Midas pale into insignificance. When we vote to cancel any ernment sold Liberty bond· to ecure it. That was eight long part of the debt of Italy and France we not only vote that years ago. Every rear of that eight the Uniteti States Govern­ much more taxes upon the American people but we vote that · ment ha been paying 4* per cent on these bonds, and in all much more loot into the pockets of every holder of Em.·opean the: e eight years the Italian Government has never so much bond . We by that vote bestow upon the speculators of Wall as offered to pay one penny·. interest on her debt, much less Street, who are moving heaven and earth to secure ratifica­ the principal, and now comes forward with this amazing tion of this settlement, wealth beyond the dreams of human proposition to pay a sum which would amount to only a part avarice. of the interest and none of the principal, and on even this In addition to that, we are thereby voting money to finance inconsiderable amo1mt they propo e to pay us in the beginning European wars. France is now waging a war of devastation intere t at the rate of one-eighth of 1 per cent. Since making in northern Africa, and Italy has just announced to the world this proposition they have borrowed a hund1·ed million dollars that she proposes to reestablish upon the Mediterranean the from Morgan & Co. at 7 per cent interest and 10 per cent com­ ancient Roman Empire. And when we vote them these billions missions. We are to-day paying 4% per cent on this money we we are voting directly into their war chests the means where­ borrowed to lend to Italy, and Italy is herself paying Morgan with to crush the Riffian nation, fighting for liberty against a & Co. approximately 8 per cent on loans made since the war, foreign invader, and we are voting funds with which to re­ but she proposes to pay us one-eighth of 1 per cent on a mere e.'tablish beyond the Alp the reincarnation of the empire of the fragment of this sacred loan from the American people. Cre. ars who e. pirit of conquest and imperial de potism reached And tlle situation is rendered all the more puzzling to the its :flower in Nero and Caligula. Are the people of the United average American, accustomed to pay his bone t debts, by the States willing to be taxed for theRe pm·poses? fact that Italy could pay this entire debt without taxing her It is true that the metropolitan newspapers and the mails people or taking one cent from her national trea ury. Germany have been crowded for months with propaganda put out in and Austria are paying Italy in annual installments an in­ an effort to persuade the American people that by giving demnity larger than her debt to the United States. With one away their money to foreign nations our own funds like the hand she exacts e\ery mark of the reparation;~ given her by widow's handful of meal and cruse of oil from which she fed the Dawe commission and with the other she tightens her the prophet Elijah, will miraculously continue to increase and purse strings and refuses to repay the American loans which produce. All such arguments belong in the same category made victory po sible and without which she would now be with the • tatement that 2 subtracted from 4 leave. 6. This paying reparations to Germany instead of receiving them. stream of propaganda has been di eminated at tremendous cost But Italy should not bear alone the odium of this attempt to and with a very definite purpose in view, but any taxpaye1· can repudiate her obligations. Cooperating with her, and eventu­ figure out for himself who will be benefited when the burden ally the chief beneficiary in this attempt to cancel war debts of repaying the e millions is taken from the European tax­ is France, the prime mover and aggressive advocate of cancella~ payer and placed on tl1e American taxpayer. That i. exactly tion from the day of the ID'mistice. And working with them the proposition before us, and it does not require the a. sistance hand in glove is a powerful group of American and international of any great financial experts from Wall Street to enable the bankers who expect to 1·eap even greater profits in these inter­ a\erage citizen to analyze that que~tion for him. elf. Some one national settlements than they made during the war. mu. ·t pay the Liberty bond:" we sold to lend thi. money, and if \ France, indeed, made the fir. t attempt but soon realized that the Italian ta.xpayer does not pay them the American taxpayer she was handicapped by the increasing unpopularity" of the mu t. · 1926 CONGRESSIONAL RECORD-HOUSE 2163 The principal argument advanced in behalf of this amazing terest in this proposition to add these billions of dollars of proposal to excuse Italy from the payment of the money she foreign debts to the ever increasing burdens of the American· borrowed from us is lack of what they call " capacity to pay." taxpayer. The average layman who has been accustomed to discharge his The American farmer has already contributed more than his financial obligations and to expect others to do likewise, finds it share to Italian welfare and prosperity. During the war difficult to understand how a borrower proposes to excuse him­ the Government, under Mr. Hoover's direction, fixed the price self when his note falls due by merely saying he lacks "capacity of wheat at less than half its market value in order to pro­ to pay," especially when there is every evidence of his having vide cheap bread for the Allies. At least half the flour eaten ample resources at band. If that custom is going to be adopted oy Italy during the war was a free gift from the American there are some of us who would like to take advantage of it. farmer. Incidentally, we hear much in condemnation of price It has been shown that Italy bas enjoyed an unprecedented post­ fixing these days, but nobody had anything to say against it war prosperity, that her bank deposits have broken all records, then. Cotton was just as necessary to win the war. Steel that she has since the war become the third shipbuilding nation was even more necessary in the prosecution of the war. in the world, that her income from tourists is in excess of $200,- And numerous other commodities were essential for war pur­ 000,000 annually, that she produces a controlling percentage of poses but nobody thought of putting a price on anything but the world's production of raw silk, and, most significant of all, the farmer's wheat. And so it came about· that we shipped that she is receiving and will continue to receive annually in millions of bushels of wheat and countless cargoes of flour to gold marks for the next 40 yea1·s, vast amotmts in reparations the Allies in Europe and sold theni at less than half the farmer from Germany under the Dawes settlement. could have got for them in an open market, a gracious gift of And in this connection, while Italy and France are asking billions of dollars made by the American farmer direct to the· for a cancellation of what they owe it is interesting to note people of Italy, France, Belgium, and England. just what they are doing toward cancellation of debts which Again, in frenzied, high-pressure campaigns they sold in other nations owe them. Are they generously reducing the every country village in America more bonds than the rural amounts due them from Germany and Austria under the Dawes communities could possibly digest. They were urged to buy settlement, in the same proportion that they are asking us to till it hurt, and they bought till it burt and bought agaiu. reduce what is due u ? Not a mark, not a franc, not a lire will Every other industry and section of the country bought like­ they consent to remit either from the principal or the interest wise but with constantly advancing wages and prices and of the war penalties from the dismembered German and steadily increasing p1·osperity they were able to bold their Austrian Empires. bonds. But the farmer, crushed by a deflation deliberately 1\Iore than nineteen hundred years ago One great in authority loosened upon him by the same interests which fixed the price said: of his wheat, was forced to throw his bonds on the market And when ye pray say • • • forgive us our debts as we forgi-re and bonds for which he paid $100, brought as low as $84: our debtot·s. And again the farmer bad made Europe and Wall Street a present of something like $16 on every $100 bond he bought. And again in the greatest sermon of all tlme-- He gave half his wheat. He gaye a sixth of his bonds. And Por inasmuch as .ye mete it unto another, with the same measure now they are asking for the bonds themselves in order to that ye mete withal, so shall it ·be meted to you again. save the French and Italian farmers from paying taxes while Would it not come with better grace, and could we not be we increase our own farmers' taxes to make up the donation. expected to listen with a more sympathetic ear to the plausible There is no more patriotic citizen in the Republic than the arguments of the distinguished European diplomats if, before American farmer. He was willing to give his wheat and will-· asking us for a remission of their obligations, they had given ing to give his bonds if it was necessary to win' the war, and evidences of their real attitude toward such a beneficent course he gave both without a murmur, but there is a limit to even by a similar remission of obligations due them. And might it the patience of the farmer, and that lim~t has certainly been not be well for American advocates of cancellation who urge reached when they ask us, in addition to these gifts, unappreci­ upon us the evils which will befall labor and industry if we ated as they are~ to pay Italy's taxes for her in time of peace. jnsist on payment of the money due us to consider that neither We pay our own taxes, although out on the farm it bas been Italy nor France seems to have bad any apprehension whatever for the last five years a seYere struggle to do it, but we pay of any such evils befalling French and Italian labor and in­ them or the sheriff steps in and sells the farm. And we are dustry through the payment to them of the German reparations. willing to let the Italians and the French do as much for There is one argument advanced by Italy, however, which themselves. is deserving of more than passing interest, and that is the We have considered the attitude of Italy and France toward argument that America has erected such a high tariff wall that debts due them from other nations. Have you wondered what Italy can not sell her products in America's markets. Even would be their attitude on this que tion if we owed France and her lemons are shut out by an exorbitant tariff. That argu­ Italy instead of their owing us? Fortunately we have an ment is valid, for with a lower tariff Italy could pay a very exact historical parallel, a case dii·ectly in point. considerable part of her debt in commodities and at the same During the Revolutionary War France was at war with Eng­ time lower the price to American consumers. And if our good land and was glad of an opportunity to cooperate with the friends from W~ll Street who are so interested in giving away American colonies in their struggle for independence. Pre­ the Nation's money really want to help Italy, why not lower cisely the same situation obtained then as during the World the tariff instead of giving away some billions of American War, with this significant exception: That in the Revolutiona1·y dollars. By lowering the tariff they could help Italy, and at War it was France who had the resources and we who needed the same time benefit America by reducing the present high loans, and France who advanced us money to fight' the common cost of li'ring. If these gentlemen want to help Italy in that enemy. What happened when the war was over and it was way. they may count on my heartiest cooperation and support. time to settle our debts? Was there talk in Paris then that But the American consumer seems to be the last person the war obligations should be canceled. Not on your life. Not to be considered in this orgy of generosity. Great compas· a word was said about wiping war debts off the slate. And sion and concern have been expressed on account of the reduced the young Republic, poverty sh·icken and threadbare, emerg­ standard of living in France and Italy, but nothing bas been ing from a devastating struggle, fought on her own hearth­ said about reduced standards of living in the United States. stone, struggling to establish a government, and with the most Italy has but to send over engaging and ingratiating diplomats serious financial problems to deal with, paid back to France with a plausable tale of woe and ask to have her note canceled, every dollar of that loan with interest. If that was the proper and immediately we are eager to do her that little courtesy. · procedure in 1776 why is it not still good doctrine in 1926? But if a farmer out in Missouri who owes the Farm Loan You can safely conclude that if we owed France and Italy Board a note comes in with a bard-luck experience and with a instead of France and Italy owing us they would exact the plea for a little more time in which to meet his note, what kind uttermost farthing, as they. are to-day exacting it from Ger­ of commiseration and courtesy does be receive? The sheriff many. And I haye pride enough in my American citizenship, rises, hammer in band, and says : " Gentlemen, how much am I and faith enough in the integrity of my Government and in bid?" I agree with these open-handed gentlemen who advocate America's sense of justice and honor, to believe that we would friendship and amity between nations ; I am an ardent advocate discharge every obligation without a question, both principal of international comity myself. But I am in favor of dis­ and interest, to the last dollar. pensing a little charity at home before we start in on Europe. There is another phase of the matter which should not be And there are other strong reasons why the American ovel'lo~ked in passing upon this momentous question. The farmer is entitled to prior consideration in this matter. The Allies, sad to say, ha-ve shown a deplorable lack of appreciation farmers of America pay a fourth of the taxes of the Nation. of all the favors shown them by the United States in what was In proportion to income they pay the highest tax bill by far probably the greatest crisis of their history. America gave of any industry in America to-day. They have ~ :vital in- without stint. She poured into the empty treasuries and 2164 CONGRESSIONAL RECORD-HOUSE JANUARY 15 granaries of destitute and .defeated Italy! England, a~~ France No doubt that was one of the chief considerations which a ne~er-ending stream of gold and gram and murutions and President Coolidge bad in mind when be said in his first mes- every civil and military necessity. And she gave her boys. sage to Congress : · :~!rom every fireside they marched away to fight Italy's I am opposed to the cancellation of these debts, and belieye it for battles bold England's front-line trenches, and save France's the best welfare of the world that they should be liquidated and paid capital: Legions of them sleep this afternoon in an alien soil as fast as possible. beneath the poppies of Flanders or the lilies of France, far I do not favor oppressive measures, but unless money that is bor­ from the motherland that gave them birth. And yet for all rowed is repaid credit can not be secured in time of necessity, and they gave, for all the sacrifice of those who at home waited for there exists besides a moral obligation which our country can not the boys who never came, America is the most hated Nation in ignore and no other country can evade. Europe to-day, and American citizens visiting Europe this I suggest that foreign governments intent upon repudiation summer were jeered and insulted with cries of " Who won the and cancellation weigh well these pregnant words of the Presi­ war"? In commenting on the open enmity against the United States dent of the United States. On some future day when Europe among the allied nations, where we would naturally expect is again at war, their favorite pastime, and they again come knocking at the Treasury at Washington and at the bank to find only gratitude and regard, an editorial in this week's account of the average American citizen for funds with which issue of the American Legion Weekly says : to buy shrapnel and poison gas, they may ha Ye occasion to We are despised and rejected of all the nations. With them the only recall their supercilious attitude in the year 1926, when they popular thing in America is her gold. Unless you speak the language are saying, in the words of their champions on this floor, and disguise yourself, you pay three prices for everything. It is per­ "Take it or leave it It is that or nothing." Europe may fectly legitimate all around the globe to financially get ahead of an chuckle in her sleeve' to-day as she outgenerals our credulous .American. and overtrustful diplomats, but eventually she must pay the France is the most open and impolite of all our allies. They often fiddler. said to me they won the war and in fact we had done very little Mr. Chairman, every dollar of this debt that we do not col­ and ,deserve no praise ; and, of course, should wipe out all war debts. lect from Italy must be paid by American taxpayers. There is While the United States was endeavoring to settle the debt question no alternative. Reduced to its last analysis, the proposition with Belgium, the newspaper Le Noir, of Brussels, set new limits to before us to-day is whether the Liberty bonds represented good taste and politeness by calling us worse than the Boche: by this debt are to be paid by the Italian people who bor­ America treats Belgium worse than the perjured power which violated rowed the money, who spent it, and who solemnly promised to Belgium's neutrality and was responsible for the World War. repay it, or whether they are to be saddled upon the already overburdened shoulders of our own taxpayers. These bonds Another editorial says: must be paid by Italy and France or they must be paid by It is no uncommon thing to hear in France that the United States the United States, and as between the three I have no choice is strangling that country, after its sacrifice to save the United but to vote for my own country. [Applause.] States and the world from Prussian invasion. But when you ask .Mr. GREEN of Iowa. Mr. Chairman, in the short time re­ what the United States has collected. or what the United States has maining, because I shall only use a short time, I can touch only done to France except to pow· men and millions into France during on some of the points most strongly urged in opposition to this the war, and good customers and millions of more dollars after the bill. war, and what it has collected of France, either on war account or As every one knows, a commission consisting of some of the the army supplies pas ed over to France after the war, there is no greatest statesmen and financiers of the country, and some of response. the most distinguished and prominent Members of this House and Senate, made a settlement of the debt of the Kingdom of ~.,ranee charged the United States for every service rendered Italy to this country, a settlement which was at once so gener­ our soldie1·s. She charged us for the use of French ports, ous and yet so just to a nation whose financial affairs were in both for ships bringing troops and ships bringing Red Cross a desperate condition, that it appealed to the judgment of supplies. She charged rent for the muddy ground on which nearly every one in this country, and at the same time it our soldiers camped, for the railway stations through which saved to our Treasury what nearly every one regarded as a we ran our own trains drawn by our own locomotives carry· hopeless and worthless claim. It brought, moreover, out of ing men and munitions to the front to bold back the enemy international discord and dispute, accord and friendship be­ their own soldiers no longer dared face. She charged rent tween two great nations. It was so manifestly to the advantage for the roads over which we marched and the battle fields of both the United States and Italy that articles which have on which American bayonets saved Paris and the French appeared in the press of this Nation have shown its approval Republic_ by an overwhelming majority of this country. They charged us over $200,000,000 on a collection of bogus I confess, Mr. Chairman, when I brought this bill into the claims and refused to pay us a cent in return for the use of House I had anticipated but little real contest over it, but b·ansports and railroads, which carried food and supplies into this accord of nations, this manifestation of friendship, of shared with the French Army. And at the close of the war good feeling, of justice, and of generosity, there was inserted when there was no other bidder for the vast quantities of Ameri­ a gloomy figure, the gentleman from Illinois [Mr. RAINEY], who can supplies stored in warehouses which we had built in France, in private life is one of the most amiable, good-natured, and thev bid them in at a price that practically amounted to con· hospitable of gentlemen, but who on this occasion seemed to fu;cation and immediately proceeded to use them in the equip­ desire to earn the reputation of a disturber of international ment of troops for service in Africa and the Ruhr. And peace, of a promoter of international discord, and even as a now they come for more. Apparently they consider Uncle repudiator of a settlement made by a commission selected as I "Sam as a sort of fat Santa Claus to be robbed and insulted have stated. For two hours and a half before this committee­ with impunity, and it Il}ust be confessed that if we permit them it seemed to me longer, and possibly to some of the other gen­ to succeed in this last raid on the United States Treasury they tlemen alsQ--the gentleman harangued this committee, chant­ are to be warranted in that conclusion. ing like Poe's Raven "forevermore "-Mussolini, Fascisti; But the cancellation of Europe's debts to the United States Fascisti Mussolini; Mussolini, Fascisti-and that has been is a more serious matter than is represented by the mere sums echoed by a number of gentlemen on the other side, even my of money involved, as large and as important a consideration distinguished friend from Alabama [Mr. HUDDLESTON], who has as that is. It is fraught with possibilities and a significance just closed the debate in opposition. which may be felt both at home and abroad for generations to All these gentlemen talk as if the course of Mussolini or the come. course of the Fascisti and the domestic affairs of Italy had llegard for treaties, for the sanctity of contract, is the foun· something to do with Italy's ability to pay its debts, when dation stone upon which civilization must be reared. Of what everyone knows that it has no bearing thereon. avail are promises and protestations of peace and arbitration, Do not misunderstand me. I am on the most friendly rela­ and what reliance can be placed upon international covenants tions with the gentleman from Illinois. I have great admira­ with nations so ready to regard as " scraps of paper " their tion for his assiduousity, and I wish his zeal in the pur uit of notes for cash received in gold? To permit any weakening of his legislative duty was imitated by more Members of this Europe's sense of responsibility, its regard for its solemn obli­ House; but it is extremely unfortunate that his energy should gations, is a blow at civilization itself. And it is America's be devoted to gathering from irresponsible sources, like some duty in the world and to posterity to demand of all nations a obscure sheet out in the State of Colorado, matters that have scrupulous and exact fulfillment of their obligations and agree­ nothing whatever to do with the subject before the House. and ments. Any other course sets back the clock of the world's which can only promote difficulty with a friendly nation. I progress a hundred yea1·s. wish also, in common with other Members of the House, that 1926 CONGRESSIONAL R.ECORD-HOUSE 2165 this same energy could 'be occasionally, just- once in awhile, ln attempting- to collect the debt from France as the personifi­ devoted to some u eful purpose instead of obstruction and dis­ cation of usury. He was wildly applauded, something in the sention. same way as the applause accorded the statements of the two Then there is the other gentleman from Illinois [Mr. RATH­ gentlemen from Illinois when they were presenting this case BONE] who outdid his colleagu~ in denunciation of Mussolini, to you ; and yet his statements could have only the same nnd in the exuberance of his eloquence S6ared above the effect as the ·statements made by those who have so violently empyrean dome, but whose feet in the course of his argument attacked the Italian Government, namely, to promote hatred ne\er touched the ground. He told you that if the settlement and ill will between two friendly nations. [.Applause.] was :rejected it would be the dawn of a brighter day for Italy We are told that we ought to reject this settlement. If we and a glorious era- of liberty would come to that nation, but if now reject this settlement, this country will become the target the gentleman had devoted a tithe of the time that he gave to of e\ery blatant demagogue in any foreign legislature who preparation of his sentences in ascertaining the facts in this wants to ha-re his country repudiate the debt that it owes us. case, I feel sure he never would have talked in such a manner. If we reject this settlement they will say, 41 What is the use What was the situation before Mussolini came into power in of our offering fair terms to .America? They are nothing but Italy? .Armed bands of communists and bolshevists roamed all a collection of Shylocks and usurers anyway. Why should we over that country, destroying property, taking life, defying the talk to them? " .And, worse than that, if we are guilty of the Government that was too impotent or too imbecile to stop them. folly of rejecting this agreement on account of Mussolini and The railroads were blocked, and trains ran only when com­ Fa cism, if we refuse to take the money offered to us for no munists and bolshevists said that they might. Factories were other reason than that they are in charge of Italy's affairs, seized by communists and bolshevists and sometimes closed; the guffaw that will be raised in Europe will reach to the very sometimes they attempted to run them. Unemployment and shores o.f the .Atlantic on this side. It is bad enough that beggary wa everywhere, and an eve1· mounting deficit faced nn we should be classed as Shylocks when we are trying to be almost empty treasury. .And this, I suppose, was the dawn generous, but, for Heaven's sake, let us not put ourselvoo in of a brighter era for Italy, which my friend from Illinois the position where we will be denounced both as Shylocks and wants to bring back to it. God forbid that it should ever come as fools. [Laughter and applause.] Giving Italy something? to this country, or that it should even come again to Italy. Not to-day. We gave it long agq; and now we want to give ~ow, in what respect are we conce1·ned with :Mu solini and Italy and its. people our friendship, our hope for their future, his go-rernment. Just in one way. Out of all this chaos, this our best wishes that they may be successful in rehabilitating disorder, this defiance of law, this destruction of property, their country. That is all we are giving to Italy. arose a strong man supported by the vast majority of the There are some who say this settlement is in the interest people of Italy, and who are we to tell the people of Italy of Morgan & Co., of New York, but the Morgan loan is Italy's whom they -shall select to control their Government. The dis­ only salvation. Italy must have capital or it cari not recover. order and destruction was quelled by a strong arm, the fac­ Without it its man power and its waterfalls are usele s. tories were turned over to the rightful owners, and once more Moreover, the Morgan loan is an accomplished fact. Italy has· the wheels of innt per annum to De~ 15, 1922------251,846,654.79 terious way it will operate against the Mussollni Government. ------$1, 899, 880, 705. 69 It will do nothing of the kind. Accrued interest at 3 per cent per annum from What will be the situation if this settlement is rejected? Dec. 15, 1922, to June 15, 1925------142,491,052.93 The cabinet of Mussolini will go forth saying, "We have 2,042, 371,758.62 offered all that is fair, all that is just and right, and now we Deduct payments made on account of take the money back that we have offered you ; we will put it principal since Dec. 15, 1922_____ $164, 852. 94 in our treasury and pay it out for other purposes; we have Interest on principal payments at 8 shown the world that we want to pay our debts as far as f~~5:~:-~e_r__ ~~~~-~-!~~~-~~ 7,439.34 po sible ; but we are done with the United States." They will 172,292.28 say it is the last time we will ever make any proposition, a Total net indebtedness as of June 15, 1925_ 2, 042, 199. 466. 34 proposition that the Mussolini Government had to .fight for in To be paid in cash upon execution of agreement___ 199, 466. 34 his own country in order to get permission to make it. Giving Italy something by this bill? Mr. Chairman, we gave Total indebtedness to be funded into bonds_ 2, 042, 000, 000. 00 them that money years ago. We gave it when Italy was strug­ The principal of the bonds shall be paid in annual installments on gling through the mountain passes shedding its blood in a com­ June 15 of each year up to and including June 15, 1987, on a fixed mon cause with us and our men were .fighting with them, side schedule, subject to the right of the Kingdom of Italy to postpone by side. such payments fallillg due after June 15, 1930, for two years, such We gave it to them then, never thinking whether we would postponed payment to bear interest at the rate of 4:1,4 per cent per ev~r get it back again. We gave it in a great cause, and a annum. The amount of the annual principal installment during the great Nation like we are ought now to be generous. [Ap­ first five years shall be $5,000,000. The amount of the principal plause.] installment due the sixth year shall be $12,100,000, the subsequent But what will happen ff we refuse this otl'er? Only a few annual principal installments increasing until in the sixty-second yeur of weeks ago some member rose in the French Chamber of Depu­ the debt-funding period the final principal installment shall be 79,- ties and denounced in the most scathing terms the people of 400.000, the ·aggregate principal Installments being equal to the total the United States as Shylocks and the course of this country principal of the indebtedness to be. funded into bonds. LXVII-137 2166 CONGRESSIONAL RECORD-HOUSE JANUABY 15 The Kingdom of Italy shall have the right to pay off additional 1\Ir. MILLS. Will the gentleman yield? amounts of principal of the bonds on June 15 and December 15 of any 1\Ir. GARRETT of Tennessee. Gladly. year upon 90 dnys' advance notice. Mr. MILLS. I would like to ask the gentleman what is his The bonds to be issued shall bear no interest until June 15, 1930. solution? and thereafter shall bear interest at the rate of one-eighth of 1 per Mr. GARRETT of Tennessee. Well, my thought would be­ cent per annum from June 15, 1930, to June 15, 1940; at the rate of of course I can not solve it alone-my thought would be that • I I one-fourth of 1 per cent per annum from June 15, 1940, to June 15, every nation should have accepted the terms that we laid down 1950 ; at the rate of one-half of 1 per cent per annum !rom June 15, at the time of the British settlement, and then, after that had 1950, to June 15, 1960 ; at the rate of three-fourths of 1 per cent per been agreed upon, we would have been free to · deal with the annum from June 15, 1960, to June 15, 1970; at the rate of 1 per "capacity to pay" at the time when they ask a moratorium. cent per annum from June 15, 1970, to June 15, 1980; and at the rate The trouble with the present condition is that you have con­ of 2 per cent per annum after June 15, 1980, al_l payable semi­ sidered " capacity to pay " at the beginning and not at the time annually on June 15 and December 15 of each year. of payment. Does not the gentleman think that is pretty Any payment of interest or principal may be made at the option of sound? · the Kingdom of Italy in any United States Government obligations 1\lr. MILLS. I am afraid that is not strictly so, because, of issued after April 6, 1917, such obligations to be taken at par and course, the payments increase with years. 1\Iay I say to the accrued interest. gentlema.n from Tennessee that the figures submitted by the Mr. GARRETT of Tennessee. Mr. Chairman, I move to commission showing what Italy would have to pay under the strike out the last word. There is an angle of approach to this terms of the British settlement were such that it was unthink­ very important matter that I wish to make. In what I say able that Italy could meet the British terms. That being so, there will be no reflection upon the very able commission, what could we do? there will be no reflection upon the Italian Government, and . The CHAIRMAN. The time of the gentleman has expired. there will be no discussion of the matter as an economic propo­ Mr. BUR'l'ON. Mr. Chairman, I rise in opposition to the sition. I assume that when the Congress retained to itself amendment. I wish to answer the gentleman from Tennes­ the power to pass upon the adjustments made by the commis­ see. He says we should not have shown discrimination in sion it was intended that we should try to pass upon them favor of Italy. First, I say it would have been unworthy of intelligently and patriotically. Therefore I do not think it is a great nation like the United States to say to all her debtors. necessary to apologize for expressing an opinion. "We will not take into consideration your condition. We Here is the matter that has worried me from the beginning will not consider whether you are rich or poor, but we will touching this settlement. It means a reopening of the other make one hard and fast rule. If we settle with a wealthy settlements, not to-morrow, perhaps, not next year, perhaps, country, like Great Britain, with enormous investments maybe not 10 years from now, but some time in .the vicissitudes abroad, on a certain basis, you, without a dollar of invest­ that accompany the life of nations these settlements, it will ments abroad, poor, struggling, must settle on exactly the be insisted, shall be reopened ; and they will point not to the same basis." What kind of a friendship would the different British settlement-which I gladly supported-but to the Ital­ nations feel we had for them if we had made that kind of a ian settlement as a precedent. Sixty-two years is the time rule? Then, too, as a question of plain business common given for this settlement. There is no complaint about the sense, if a creditor has two embarrassed debtors, one of whom time, but let us think back over our own history for 62 years. is able to pay 80 cents on the dollar and the other only 30, There have been times within that period wheJ! it would have should there be no discrimination between them? Would a been embarrassing for us to pay. had we ·been in debt. The private creaitor manage settlements in that way? The com­ time will come with these nations with which we have already mission from the start and the Congress in approving settle­ made settlements and with those with whom we will make ments have recognized the right and the desirability of making settlements in the next few days when they will be unable to different conditions with d.ifrerent nations. The delegates pay, and they will ask for a moratorium. Not only will they from Great Britain insisted at great length that they should ask it, but they will point back to this Italian settlement and have the most-favored-nation clause. That was refused, and demand not only a moratorium but the forgiveness of a part it has been refused in other cases. So much from the stand­ of the debt. Why, it is as certain to happen as men continue point of precedent. Still further, has the fact that we have to live. proceeded to make more favorable settlements with one coun­ The CHAIRMAN. The time of the gentleman from Tennes­ try than another prejudiced the payments or led to requests see has expired. for readjustments? Great Britain has not taken advantage Mr. CRISP. Mr. Chairman, I ask unanimous consent that of certain privileges for postponement since we made that the gentleman's time be extended for five minutes. settlement-- Mr. GREEN of Iowa. Mr. Chairman, I have no objection to Mr. GARRETT of Tennessee rose. that. l\Ir. BURTON. In a moment. We voted here in this House The CHAIRMAN. Is there objection? a moratorium for Austria until 1943, by no means the poorest There was no objection. nation of Europe ; but in all the arguments presented by Mr. GARRETT of Tennessee. I thank the committee, and I various foreign delegates to the commission there has not been do want to say this if I may: I am somewhat embarrassed here a whisper in reference to that. After we had agreed upon at times by reason of the honor which my Democratic col­ this settlement with Italy, Rumania came forward and we leagues have shown me in selecting me for the particular J)()si­ settled with her on practically the same basis as with Great tion which I happen to hold, because of the fear that what I Britain, and the argument of the settlement with Italy was may say may give a political aspect to a question. There is not once urged by the delegates, although they sought to take no political or partisan aspect to this question, and every gen­ advantage of every point. Now, as to the idea of settling on tleman is entirely free. I am not seeking to induce any indi­ the British basis at this time and making a readjustment -vidual for any sort of partisan or political· purpose to vote thereafter. In the first place, that would have been abso­ against his own judgment, but I am merely expressing my lutely impossible; and more than that, every argument is for own views concerning this matter and mentioning the thing final disposition of the case. Everyone knows that the longer that troubles me concerning it. I feel responsibility about this the time these debts are allowed to run before final agreement. as a legislator. the more difficult it is to make a settlement. That is true in Mr. Chairman, this is not going to settle things. It may the case of a private debtor; that is the case with a public have settled matters temporarily, enough to enable Italy to. debtor as well. Delay means additional argument for cancel­ get a loan, and I have no complaint to make about the loan. lation or for leniencr. It does seem to me, however, that the Executive department, which has been restraining individuals from granting loans The :flighty purpose never is o'ertook, until a settlement was made, might very properly have con­ Unless the deed go with it. tinued its withholding until the Congress had passed upon this proposition ; but that is neither here nor there. That is not im­ The purpose of settling these debts can not be most favorably portant. The important thing is that within the next genera­ accomplished unless-and we have been delayed too long tion maybe to-morrow, maybe next year, maybe 10 years from already in some of these settlements-agreement is reached at now' our successors here are all going to have to fight this this time. So, Mr. Chairman and gentlemen, I must most old question over and over again. I have no criticism to make decidedly oppose the argument of my good friend from Ten­ of the commission. The commission moved along the lines that nessee [Mr. GARRETT]. In these closing minutes of the debate it had laid down, but here is an appeal to another body. I · would call attention to certain considerations as to these It would be infinitely better that this settlement were not debtors. Every argument against this settlement has ignored made at all than to have all settlementS reopened with other the difficulty of .making transfers of great sums of money nations. ab!'_oa,d. I spoke briefly on that point on Wednesday. 1926 CONGRESSIONAL RECORD-·HOUSE 2167 The CHAIRMAN. The time of the gentleman from Ohio has here and try to settle, and they' would not come. How coul:l expired. we make a settlement when they would not come? We made a Mr. BURTON. l\Iay I ask for five minutes additional 1 settlement at the earliest possible moment we could. The CHAIRMAN. The gentleman from Ohio asks unani­ Now, much has been said-and I am going to leave the mat­ mous consent for five auditional minutes. Is there objection? ter with that statement-that we are in eft'ect surrendering so There was no objection. much of the American taxpayers' money. Gentlemen, this set­ Mr. BURTON. I listened with a great deal of interest tlement gets to the American taxpayers some money, and with­ to what the gentleman from Iowa [Mr. RAMSEYER] said. He out a settlement you are getting no money. [Applause.] This brought out forcibly the fact that practically no nation of settlement is not giving up a dollar of money that the United Europe had diminished its debt before the war. That applies States now has. These loa.ns are over seven years past due,­ particularly to Italy. Whatever her debt has tbeen abroad, with no payments on them ; and if any Member of this House when obligations matured there have been other borrow­ can get up and show whereby this Government can collect this ings to take their place. That government in Italy was formed full amount of $7,000,000 for each congressional district, as in 1861, and there has been a steady increase with occasional the gentleman from Tennessee [Mr. HULL] has said, I say a exceptions in indebtedness ever since. Here is $2,042,000,000 greater than Solomon bas arisen, and I will take back every­ as the principal _.... sum due to the United States. Do you thing I have said, and I will vote against this bill. believe she can begin now and make transfers abroad to us to But it can not be done. It is impossible, and the House pay that sum on any such basis as, say, $50,000,000 a year? knows it is. The proposition is pure theory. Why, it is impossible. I regret I can not go further into this In conclusion, I believe that this is the best settlement you question of international transfers. It was taken into account can get from Italy ; that it is all you can get : it is this or by the Dawes agreement and the agreement of London. I nothing; and as it puts some money into the Treasury, thus advise gentlemen to read them. Provision was made for grant­ relieving the American taxpayer to that extent, I am going tQ ing moratoriums and even for releases in case transfers were vote for it. [Applause.] not possible. l\Ir. GREEN of Iowa. Mr. Chairman, I move that the com­ Do not forget this-and much of this debate has overlooked mittee do now rise and report the bill to the House without it-that these debts to us are not of the same kind as the amendment, with the recommendation that the bill do pass. loans that, for instance, England made before the war. The CHAIRMAN. The gentleman from Iowa moves that the These loans were made for construction, for betterments in committee rise and report the bill back to the House without the respective countries, such as the building of railroads and amendment, with the recommendation that the bill do pass. the purchase of ships, objects which increased productive ca­ The question is on agreeing to that motion. pacity. '.rhese loans from the United States were associated The motion was agreed to. with the processes of destruction, of waste, of war. Instead Thereupon the committee rose; and the Speaker having re­ of the countries which are indebted to us being in better con­ sumed the chair, Mr. MADDEN, Chairman of the Committee of dition because of the use made of these loans they are in a the Whole House on the state of the Union, having in charge condition infinitely wor e, and that will make repayment much the bill (H. R. 6773) to authorize the settlement of the indebt­ more difficult than it has been in the past. I am sanguine that edness of the Kingdom of Italy to the Government of the United these foreign debts will be paid. A sense of national obliga­ States of America, bad directed him to report the same back t Mr. GREEN of Iowa. Oh, there will be plenty of time to get RESOL UTIONS information. Under clause 2 of Rule XIII, The SPEAKER. Is there objection to the request of the Mr. VINSON of Georgia: Committee on :'(aval Affairs. H. R. gentleman from Iowa [Mr. GREEN]? 7348. A bill for the relief of Joseph-F. Becker; without amend­ . There was no objection. ment (Rept. No. 113). Referred to the Committee of the ·. :Mr. GARRETT of Tennessee. Now, Mr. Speaker, may I Wbole House. have the attention of the gentleman from Iowa [:Mr. GREEN] and the gentleman from Connecticut [Mr. TILSON]? Will CHANGE OF REFERENCE the e bills probably be all that will be considered to-morrow? Mr. TILSON. Mr. Speaker, I hope we· may con ider, in Under clause 2 of Rule XXII, committees were discharged addition, the resolution in regard to the preparatory work from the consideration of the following bills, which were re­ for the limitation of armament conference, involving an au-: ferred as follows : thorization of an appropriation of $50,000 to pay for the pre­ A bill (H. R. 1830) granting an inct·ease of pension to George liminary work. W. Wise ; Committee on Invalid Pensions· discharged, and re-­ Mr. GARRETT of Tennessee. I am quite familiar with ferred to the Committee on Pensions. that; but I want to a k the gentleman if it is really expected A bill (H. R. 3534) granting an increase of pension to Loui~e that you will be able to get that up to-morrow. W. Henderson; Committee on Invalid Pensions discharged, and­ Mr. TILSON. Oh, yes; that, in addition to these bills. referred to the Committee on Pensions. 1\.Ir. GARRETT of Tennessee. There are a number of Mem­ A bill (H. R. 5136) granting an increase of pension to Emma bers interested in that resolution, I will say to the gentleman Meckel; Committee on Invalid Pensions discharged, and re­ from Connecticut, who want to be here if they know it is ferred to the Committee on Pensions. coming up. A bill (H. R. 3404) granting an increase of pension to Nancy Mr. TILSON. It is my intention to bring that up imme­ A. Sumner; Committee on .Invalid Pensions discharged, and re­ diately after the debt settlement bills are disposed of. ferred to the Committee on Pensions. Mr. GARRETT of Tennessee. And that will be all. There A bill (H. R. 1652) granting an increase of pension to Emma will be nothing in addition to that? S. Phelps; Committee on Invalid Pensions di charged, and re· Mr. TILSON. I anticipate that will take the day. ferred to the Committee on Pensions. A bill (H. R. 7646) granting an increase of pension to Laura ADJO~NMENT , Smith; Committee on Invalid Pensions discharged, and referred Mr. GREEN of Iowa. Mr. Speaker, I move that the House to the Committee on Pensions. do now adjourn. A bill (H. R. 6478) granting an increase of pe~ ion to Wil­ The motion was agreed to; accordingly (at 4 o'clock and 38 liam Cotter ; Committee on Invalid Pensions discharged, and minutes p. m.) the House adjourned until to-morrow, Satur­ referred to the Committee on Pensions. da y, January 16, 1926, at 12 o'clock noon. A bill (H. R. 2967) granting an increase of pension to Thomas H. Stubbs ; Committee on Invalid Pensions discha rge~ EXECUTIVE COMMUNICATIONS, ETC. and referred to the Committee on Pensions. A bill (H. R. 7527) granting an increase of pension -to Eliza­ Under clause 2 of Rule XXIV, executive communications were beth Estes; Committee on Pensions discharged, and referred taken from the Speaker's table and referred as follows : to the Committee on Invalid Pensions. 65. A letter from the Secretary of the Treasury, transmitting A bill (H. R. 7414) granting an increase of pension to Estella­ reports from the Departments of Commerc·e, Interior, and War, Bolster ; Committee on Pensions discharged, and referred to the and the United States Shipping Board, relative to money re­ Committee on Invalid Pensions. ceived during tbe fiscal year ended June 30, 1925, which was not paid into the General Treasury of the United States, and the payments, if any, made from such funds during said fiscal PUBLIC BILLS AND RESOLUTIONS year, and 26 reports from the heads of other departments Under clause 3 of Rule XXII, public bills and resolutions stating that no reon~ys have been received during the fiscal were introduced and severally referred as follows: vear which have not been covered into the Treasury, and calling By Mr. CLEARY: A bill (H. R. 7738) to amend the provi­ attention to the report of the acting director of supply, da~ed sions of the act of Congress approved June 30, 1922, relative November 25, 1925, coTering moneys received by the Treasury to the elimination of commissioned per. onnel and their retire­ Department during the fiscal year ended June 30, 1925; Com- ment as warrant officers ; to the Committee on Military Affairs. 2170 CONGRESSIONAL RECORD-HOUSE JANUARY 15 By Mr. ZIHLU.A.N: .A. bill (H. R. 7730) to provide for the representative, and for other purpo ·e ; to the Committee on condemnation of land for the opening, extension, widening, or Foreign Affairs. straightening of streets, avenues, roads, or highways in accord­ By Mr. KIESS: Resolution {H. Res. 88) to prh:it the report ance ~ith the plan of the permanent system of highways for of the committee to investigate the economic conditions of the the District of Columbia, and for other purposes ; to the Com­ Virgin Islands of the United States as a House document; mittee on the District of Columbia. to the Committee on Printing. By 1\Ir. JENKINS: A bill (H. R. 7740) for the erection of a By Mr. TILSON: Resolution (H. Res. 89) amending para­ Federal building at Jackson, Jackson County, Ohio; to the graph 2 of Rule XXI ; to the Committee on Rules. Committee on Public Buildings and Grounds. By :Mr. STEAGALL: A bill (H. R. 7741) to construct a bridge across the Choctawhatchee River, near GeneYa, Geneva County, PRtvATE BILLS AND RESOLUTIOXS Ala., on State Road No. 20; to the Committee on Interstate and Under clause 1 Clf Rule L~II. priYate bills and re olutions Foreign Commerce. were introduced and severally referred as follows : By Mr. WE.d. \ER: A bill (H. R. 7742) for the erection of a By 1\:Ir. BECK: A bill (H. R. 7761) granting an increase of post office to be located upon the site now owned by the United pension to Frances Kennedy; to the Committ~e on Invalid States Government at Rutherfordton, N. C. ; to the Committee Pensions. on Public Buildings and Grounds. By Mr. BEERS: A bill (H. R. 7762) grantinO' a pension to Also, a bill (H. R. 7743) for the purchase of a site and the William Zimmerman ; to the Committee on Invalid Pensions. erection of a post office at Canton, N. C. ; to the Committee on By Mr. BIXLER: A bill (H. R. 7763) granting an increase Public Buildings and Grounds. ·of pen ion to Sophia Elder; to the Committee on Pensions. By Mr. MANLOVE: A bill (H. R. 7744) for tile erection of By Mr. BOWMAN: A bill (H. R. 7764) to confer rights, a Federal building at Lamar, Mo.; to the Committee on Public privU{'ges, and benefits of honorable discharge to Benjamin F. Buildings and Grounds. Helmick and his dependents ; to the Committee on Military By Mr. GORMAN: A bill (H. R. 7745) to authorize the sale Affairs. of part of United States Veterans' Hospital property at Broad­ Also, a bill (H. R. 7765) granting a pension to George l\1. ;iew, Ill.; to the Committee on World War \eterans' Legisla­ Hovatter; to the Committee on Invalid Pensions. tion. Also, a bill (H. R. 7766) granting a pension to Jacob Har­ By l\Ir. PRALL: A bill (H. R. 7746) to amend the national man ; to the Committee on Invalid Pensions. prollibition act, to provide for State local option, and for other Also, a bill (H. R. 7767) granting a pension toW. R. l\Iurphy :. purposes ; to the Committee on the Judiciary. to· the Committee on Invalid Pensions. By Mr. BACHMA!\N: A bill (H. R. 7747) to provide for the By Mr. BOYLAN: A bill (H. R. 7768) granting a pension to erection of a public building at Mannington, W. Va.; to the Marie Smith; to the Committee on Pensions. Committee on Public Buildings and Grounds. By Mr. DEMPSEY: A bill (H. R. 7769) granting a pension By Mr. SMITH: A bi1l (H. R. 7748) for the adjustment of to Lucretia Burton ; to the Committee on Invalid Pensions. water-right charge ·. on the King Hill irrigation project, Idaho, By Mr. FAIRCHILD: A bill (H. R. 7770) granting a pension and for other purposes ; to the Committee on Irrigation and to Hannah Meagher ; to the Committee on Invalid Pensions. Reclamation. By Mr. W. T. FITZGERALD: A bill (H. R. 7771) grant­ Also, a bill (H. D. 7749) for the adjustment of water-right ing an increase of pen ion to Rose n. Kirkland ; to the Com­ charges on the Boise project, Idaho, and for other purposes ; mittee on Pensions. to the Committee on Irrigation and Reclamation. By Mr. FREE: A bill (H. R. 7772) granting a pension to Also, a bill (H. R. 7750) for the adjustment of water-right Orval E. Jenks ; to the Committee on Pensions. charge· on the l\Iinidoka irrigation project, Idaho, and for other Also, a bill (H. R. 7773) for the examination and survey of purposes; to the Committee on Irrigation and Reclamation. Hueneme Harbor, Calif., with a view of construction of a By Mr. RANSLEY: A bill (H. R. 7751) to provide for main­ breakwater for the harbor; to the Committee on Rivers and taining the corps of cadets at the United States Military Harbors. Academy at the strength now authorized by law, and for other By Mr. FREEMAN: A bill (H. R. 7774) granting an in­ purposes ; to the Committee on Military Affairs. crease of pension to Mary E. Evans ; to the Committee on By Mr. LEAVITT: A bill (H. R. 7752) to authorize the leas­ Invalid Pensions. ing for mi,ning purposes of land reserved for Indian agency and By Mr. GALLIVAN: A bill (ll. R. 7775) granting an in­ school purposes ; to the Committee on Indian Affairs. crease of pension to Frederick A. Emery ; to the Committee on By Mr. RANSLEY: A bill (H. R. 7753) to amend section Pensions. 1868, Revised Statutes of the United States, and for other pur­ By Mr. HAMMER: A bill (H. R. 7776) for the reimburse­ po ·es ; to the Committee on 1\Iilitary Affairs. ment of Emma Pulliam; to the Committee on Claims. By Mr. HARDY: A bill (H. R. 7754) to establish a fish­ By Mr. HICKEY: A bill (H. R. 7777) granting an increase cultural station in the State of Colorado; to the Committee on of pension to Frank Lytle ; to the Committee on Pensions. the l\lerchant Marine and Fisheries. By Mr. JACOBSTEIN: A bill (H. R. 7778) granting an in­ · By l\Ir. l\IILLS: A bill (H. R. 7755) to designate a building crease of pension to Alice L. Cassidy ; to the Committee on site for the National Conservatory of 1\Iusic of America, a.nd Invalid Pensions. for other purposes; to the Committee on Public Buildings and AI o, a bill (H. R. 7779) granting an increase of pension to Grounds. l\Iary T. Clark; to the Committee on Invalid Pen ions. By Mr. WELLER: A bill (H. R. 7756) to fix the salaries of Also, a bill (H. R. 7780) granting a pen ion to Harney Effing; certain judges of the United States; to the Committee on the to the Committee on Pensions. Judiciary. By 1\fr. JENKI 1~S : A bill (H. R. 7781) for the relief of Al­ By Mr. AUF DER HEIDE: A bill (H. R. 7757) to provide bert Bowen; to the Committee on Military Affairs. for the erection of a public building at Hoboken, N. J.; to the Also, a bill (H. R. 7782) granting an increa e of pension to Committee on Public Buildings and Grounds. Lucinda McGhee; to the Committee on Invalid Pensions. BROW~TJD: R. By 1\Ir. A bill (H. 7758) placing first, second, Also, a bill (H. R. 7783) granting a pension to Charles T. and third class postmasters tn the competitive classified serv­ Smith ; to the Committee on Invalid Pen ions. ice ; to the Committee on the Civil Service. By Mr. KIEFNER: A bill (H. R. 7784) granting an increase By Mr. McFADDEN: A bill (H. R. 7759) to provide for the of pension to I ·abel Hart; to the Committee on Invalid purchase of a site and the erection of a public building thereon at Honesdale, in the State of Pennsylvania; to the Committee Pensions. on Public Buildings and Grounds. By Mr. LAMPERT: A bill (II. R. 7785) for the relief of Also, a bill (H. R. 7760) to amend section 9 of the Federal Franklin Gum; to the Committee on Military Affairs. reserve act; to the Committee on Banking and Currency. By Mr. LETTS: A bill (H. R. 7786) for the relief of F. C. By Mr. WAINWRIGHT: Joint resolution (H. J. Res. 114) Wallace; to the Committee on Claims. directing the Secretary of War to allot war trophies to the Also, a bill (H. R. 7787) for the relief of Edward Young; American Legion Museum; to the Committee on Military to the Committee on Claims. Affairs. By Mr. MENGES: A bill (H. R. 7788) granting an increase By Mr. CELLER: Joint rPsolution (H. J. Res. 115) provid­ of pension to Rebecca Hess ; to the Committee on Invalid ing that the United States pay her proportionate share of the Pensions. expenses incurred at nny official conference, interchange. or Also, a bill (H. R. 7789) granting an increase of pension to committee held under the auspices of the League of Nations, Mary A. Brenaman; to the Committee on Invalid Pensiop.s. its council or assembly, to which conferences, committee, or Also, a bill (H. R. 7790) granting an increa. e of pension to interchange the l:nited States shall send her duly accredited Mary King; to the Committee on Invalid Pensions. 1926 CONGRESSIONAL RECORD-_ SENATE 2171 By Mr. MOORE of Kentucky: A blll .(H. R. 7791) granting SENATE an increa e of pension to George T. Reid ; to the Committee on Pensions. SATURDAY, January 18, 19£8 By Mr. MURPHY: A bill (H. R. 7792) granting a pension to The Chaplain, Rev. J. J. Muir, D. D., offered the following Lillian l\1. Johnson ; to the Committee on Pensions. prayer: By Mr. PURNELL : A bill (H. R. 7793) for the relief of Irvin Leonard Garver; to the Committee on Naval Affairs. Our Father, Thou dost love us. We sometimes forget our By Mr. RAMSEYER: A bill (H. R. 7794) granting a pension devotion to Thee and to the work of Thy kingdom in the world; to Sarah D. Dewit; to the Committee on Invalid Pensions. but we humbly beseech Thee to consider us patiently, ten derly, Also, a bill (H. R. 7795) granting a pension to Haney Blitz; and enable us to extend Thy word and walk in Thy ways, so to the Committee on Invalid Pensions. that whatever comes to us we may be enabled to fulfill Thy Also, a bill (H. R. 7796) granting an increase of pension to good pleasure. Hear us, we beseech of Thee. · Guide our Jeanette Collins ; to the Committee on Invalid Pensions. thoughts this day to Thy glory. For Jesus' sake. Amen_ By Mrs. ROGERS: A bill (H. R. 7797) for the relief of Rebecca E. Olmsted ; to the Committee on Claims. The Chief Clerk proceeded to read the Journal of the proceed­ ings of the legislative day of Wednesday, the 13th instant, when _By Mr. RUBEY: A bill (H. R. 7798) for the relief of Wilbur 1 Stookev ; to the Committee on Claims. on request of Mr. 0URTIS and by unanimous consent, the further By ~Ir. SABATH: A bill (H. R. 7799) for the relief of reading was dispensed with and the Journal was approved. William Chinsky; to the Committee on Claims. MESSAGE FROM THE HOUSE Also, a bill (H. R. 7800) for the relief of Olaf Nelson; to A message from the House of Representatives, by Mr. Farrell, the Committee on Claims. its enrolling clerk, announced that the House had passed a- bill By Mr. SlM:l\IONS: A bill (H. R. 7801) granting an in­ (H. R. 6173) to authorize the settlement of the indebtedness of crease of pension to Lewis :M. Kennedy; to the Committee on the Kingdom of Italy to the United States of America, i,n which Invalid Pensions. it requested the concurrence of the Senate. By Mr. STOBBS: A bill (H. R. 7802) granting an increase of pension to Hannah J. Blake; to the Committee on Invalid CALL OF THE BOLL Pensions. Mr. CURTIS. 1\lr. President, I suggest the absence of a By Mr. SWEET: A bill (H. R. 7803) granting an increase quorum. of pension to Poppie H. Winslow; to the Committee on Invalid The VICE PRESIDENT. The clerk will call the roll. Pensions. The legislative clerk called the roll, and the following By Mr. SWOOPE: A bill (H. R. 7804) granting an increase Senators answered to their names : of pension to Nancy A. Blakeley ; to the Committee on Invalid Ashurst Fernald Keyes Robinson, Ark. Pensions. Bayard Ferris Ki Sackett By l\Ir. TAYLOR of West Virginia : A bill (H. R. 7805) Bingham Fe s LanDonette Sheppard granting a pension to William A. Hawkins; to the Committee Blease Fletcher Lenroot Shipstead Borah Frazier McKellar Shorbidge on Pensions. Bratton George McKinley Simmons By l\Ir. THOMAS: A bill (H. R. 7806) granting an increase Brookhart Gerry McLean Smith Broussard Gillett McMaster Smoot of pension to John E. Stinson; to the Committee on Pensions. Bruce Glass McNary Stanfield By Mr. VINSON of Georgia: A bill (H. R. 7807) for the Butler Gotr Metcall Stephens relief of Lucy Sanford ; to the Committee on Military Affairs. Cameron Gooding Moses Swanson Capper Greene Neely Trammell By Mr. WILSON of Mississippi: A bill (H. R. 7808) grant­ Caraway Hale Norris Tyson ing · an increase of pension to George A. McHenry; to the Copeland Harreld Nye IJnderwood Committee on Pensions. Couzens Harris gddie Walsh Curtis Harrison verman Warren Also, a bill (H. R. 7809) for the relief of H. H. IDnton; to Dale Heflin Pepper Watson the Committ0e on Claims. Deneen Howell Pine Wheeler By l\lr. YATES: A bill (H. R. 7810) granting a pension Dill Johnson Pittman Williams Edge Jones, N.Mex. Ransdell Willis to Cora Murphy; to the Committee on Invalid Pensions. Edwards Jones, Wash. Reed, 1\!o . .ffirnst Kendrick Reed, Pa. PETITIONS, ETC. Mr. SHEPPARD. I wish to announce that my colleague Under clause 1 of Rule XXII, petitions and papers were laid [Mr. MAYFIELnr Is detained from the Senate by illness. I on the Clerk's desk and referred as follows: will let this announcement stand for the day. 381. By Mr. BEERS : Petition of the vice president of the The VICE PRESIDENT. Eighty-six Senators having an­ Potomac Savings Bank, recommending paving of Wisconsin swered to their names, a quorum is present. Avenue, Washington, D. C.; to the Committee on the District of Columbia. PETITIONS AND MEMORIALS 382. By Mr. CONNERY: Resolution urging the passing of n 1\lr. LA FOLLETTE presented memorials numerously signed bill to return the property of enemy aliens; to th€ Committee by citizens of Waukesha, Sauk, and Chippewa Counties, Wis., on Interstate and J:!'oreign Commerce. remonstrating against the participation of the United States in 383. By Mr. FENN: Petition of the National Association of the Permanent Court of International Justice, which were or­ Letter Carriers, Branch 60, Stamford, Conn., requesting sup­ dered to lie on the table. port of the Stanfield-Lehlbach bills ( S. 786 and H. R. 7) propos­ Mr. FERRIS presented memorials numerously signed by ing amendments to the civil service retirement act; to the sundry citizens of Kalamazoo, Detroit, Fort Huron, Allegan, Committee on the Civil Service. and Owos o, Oakland, and Wayne Counties, Mich., remonstrat­ 384. By Mr. W. T. FITZGERALD: Petition of J. M. Wise ing against the participation of the United States in. the Per­ and sundry letter carriers of Piqua, Ohio, requesting enactment manent Court of International Justice, which were ordered to of H. R. 7; to the Committee on the Civil Service. lie on the table. 385. By :Mr. GALLIVAN : Petition of Frank W. Whitcher, Mr. WILLIS presented resolution adopted at a. meeting of of the Frank W. Whitcher Co., Boston, Mass., recommending the Associated Irish 0rganizations1 of Cincinnati, Ohio, pro­ early and favorable consideration of H. R. 5840; to the Com­ testing against the participation or the United States in the mittee on Military Affairs. Permanent Court of International Justice, which were ordered 386. By Mr. KIEFNER : Petition of the Jefferson County to lie on the table. Press Association, asking support of H. R. 4478, opposing the Mr. JO:NES of Washington presented a petition of sundry governmental practice of selling special-request envelopes; to citizens of Clarkston, Wash., praying the repeal or removal of the Committee on the Post Office and Post Roads. the so-called war and nuisance taxes, especially the tax on in­ 387; By l\fr. YATES: Petition of the Grundy County Farm dustrial alcohol used in the manufacture of medicines, home Bureau Federation, praying that Congress pass a law based on remedies, and flavoring extracts, which was referred to the the principle of a farmers' export corporation, providing for Committee on Finance. · the creation of an agency to handle the surplus of farm prod­ Mr. FRAZIER presented the petition of J. W. McCarty ancl ucts; also praying for the passage of an amendment to the 215 other citizens in the Stnte. of North Dakota, pra ying the ·pure food act so that corn sugar be not classed as a substitute; repeal or removal of the so-called war and nuisance taxes, espe- to the Committee on Agriculture. cially the tax on industrial alcohol used in the manufacture of 388. Also, petition of the estate of R. W. Roloson, by R. M. medicines, home remedies, and flavoring extracts, which was Roloson, executor, 209 .South La Salle Street, Chicago, protest­ referred to the Committee on Finance. ing ._ against injustice done by the 1924 Federal estate tax act He also presented the memorials of H. E. Salter and 63 and asking that provision for a refund be incorporated in the other citizens and of T. 0. Soine and 62 other citizens in the new revenue blll; to the Committee on Ways and Means. State of North Dakota, remonstrating against the participation