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P.P.F.
473
May 26, 1933.
Dear Joe:-
I thought you would be glad to see
a copy of a letter which I just got from
Felix Frankfurter.
XPPF140
What he says about you and Sam
I say Amen!
Very sincerely yours,
Hon. Joseph T. Robinson,
United States Senate,
Washington, D. C.
(Enclosure)
RT
PP,7,
August 1, 19B3.
473
My dear Mr. Bodman:
Thank you very much for your kindness in
writing to the President in reference to the
home-coming which is being arranged in honor
of Senator Joseph T. Robinson tomorrow evening.
The President has already been advised of
this and is sending a message for the occasion.
Very sincerely yours,
STEPHEN EARLY
Assistant Secretary to the President
em
E. J. Bodman, Esq.,
Agent of Land Bank Commissioner,
Farm Credit Administration,
St. Louis,
Missouri.
BREOT SABUSHED ADMINIST
FARM CREDIT ADMINISTRATION
DIVISION OF
LAND BANK COMMISSIONER'S LOANS
OFFICE OF THE AGENT
SIXTH DISTRICT
COMPRISING THE STATES OF
ARKANSAS ILLINOIS
MISSOURI
ST. LOUIS, Mo.
July 29, 1933.
add 8-1-33
em
President Franklin D. Roosevelt,
Washington, D.C.
Dear President Roosevelt:
Arkansas citizens, to the tune of ten thousand
or more, will do honor to Senator Joseph T.
Robinson at the ball park Wednesday night, August
2nd. Dr. Frank Vinsonhaler will be the Chairman
of that meeting: His address is "Urquhart Building",
Little Rock, Arkansas. Senator Robinson's Little
Rock address will be "Boyle Building".
Thought perhaps you might like to have this re-
minder so as to have a telegram go to him on that
occasion.
Yours truly,
G.Badman Land Bank Commissioner.
E.J. Bodman, Agent of
EJB:MS
JOE T. ROBINSON, CHAIRMAN
United States Senate
THE
CONFERENCE OF THE MAJORITY
May 27, 1933
THEM MAY 80 THE $
P.P.F.
PERSONAL
473
My dear Mr. President:
May I acknowledge and express my thanks for your
very gracious message expressing commendation of my services
in the Senate.
With cordial greetings, I am
Very sincerely,
To The President
The White House
Washington, D. C.
JOE T. ROBINSON, CHAIRMAN
United States Senate
CONFERENCE OF THE MAJORITY
Little Rock, Arkansas
August 3, 1933
(File
&
To The President
Hyde Park, New York
472
My dear Mr. President:
The Homecoming was a great and very pleasing event.
I take the liberty of enclosing newspaper clippings.
the
May I express my very great appreciation for your kindness
in sending the very cordial message which was received by the
audiencewi thunrestrained enthusiasm.
Mrs. Robinson joins me in appreciation and the hope
that you are having a pleasant vacation.
Very sincerely,
Jos.
THE COMMERCIAL APPEAL
MEMPHIS, TENN., THURSDAY MORNING, AUGUST 3,
1933.
/
-
CHILD SEES
When The Wonder State Paid Tribute to Joe Robinson
HURE SET
WHEE)
JOPLIN, Mo:
While his, eig
looked on sere
identified as
about 40, of TI
threw himself
freight, train
Station here
found in his
he was a Wa
A deed to arj
Springs wasej
Wingo, his
The hyster
he had no mc
Wingo app
stand, purch
on, ate it an
keeper to
"
boy. Then
railroad, WH
ing, and hui
the train,
HELENIC
SEEK HU
Man Held
Rooming
Police last. I)
Washington ai
W. Cooley, be
Memphis, and
band at WQ
national capits
The woman,
as Mrs. Hele
age, was beat
ing house. A
Kelley, who
joining, was
No. Coole
listed in the
sons of that
Mrs. Helen
SEA Sr
Youth, Sex
CORPU.
(AP)-Jac
rigors of ,
ing. on th
abled sail)
today by
he was
Fia., on
Willian
Panama
Hondurs
after a/
the
Larry
Mrs.
Mrs.
nes.
Lizzir
Mrs.
Elme
Eile,
Mrs
Ph!
DIES UNDER WRECKED CAR
Bor
1511
Woman Driver Burns to Death in
EYE,
Accident.
Viv!
WAYCROSS, Ga., Aug. 2.-(UP)-
Park,
Mrs. W. M. Fussell of Pensacola,
Fla., was burned to death when
S.
Mrs
pinned beneath a wrecked car that
Ark.
D
got beyond her control on a curve
Ma
near here today.
Two young daughters of Mrs. Fus-
bott
fred
LENDAR
Photos taken of the homecoming celebration in Lit-
tle Rock last night for Senator Joe T. Robinson. They
were taken by "Curley" Bruner, staff photographer, and
rushed to Memphis in The Commercial Appeal's own
plane in 70 minutes.
Upper view shows a part of the great crowd in the
grandstands in Travelers' Park. Second row, left, is
Governor Futrell (right), talking with Senator Robin-
son. Center, Senator Pat Harrison of Mississippi shaking
hands with Senator Robinson, his colleague, on the speak-
ers' stand.
Right, Dr. Frank Vinsonhaler, general chairman of
the welcome group.
Below, Senator Robinson spea ng to the crowd.
PAISERS
decovernment checks will
of
iren
Stat
four
IRS
he \
And
Spri
Wir
Ju
T
hel
Sis-
W
(ood
star
on,
kee
boy
rail
ing
ident
the
th a
hus,
ptist
HEL
here
who
SEE
ome
suay
short
Man
cked
the
R
W.
with
city
Pol
Wash
aft-
W.C
at
Mem
love,
band
col-
natio
Id at
first
Th
rters
as 1
kless
age,
ing
y,
Kelle
joini
No
cident
liste
or the
sons
eeding
Mrs.
young
on the
et car.
SE
south
and
ait the
You
INS
julance
He was
CO
at the
(AP
rigo
Allen,
ing
ord se-
able
re Wil-
tod:
D is in
he
Allen
Fia
to take
boa
!for a
W
9 been
Par
sedan
Ho)
after
trents,
the
of the
sis-
P/
this
First
with
iating.
L
Ceme-
M
M
nes
the
I
He
A
B.
E
E
Ie
D
:
DIES UNDER WRECKED CAR
I
151
Woman Driver Burns to Death in
EY
Accident
W A YCROSS, Ga., Aug. 2 (UP)
Pa
Mrs. W. M Fussell of Pensacola,
Fla., was burned to death when
US
pinned beneath a wrecked car that
y
#
got beyond her control on a curve
Ar
near here today
1
Two young daughters of Mrs. Fus-
bot
fre
3
r,
ly
ENDAR
188
Jme
for
Photos taken of the homecoming celebration in Lit-
over
tle Rock last night for Senator Joe T Robinson. They
is had
were taken by Curley' Bruner, staff photographer, and
since
1% and
rushed to Memphis in The Commercial Appeal's own
y had
plane in 70 minutes.
hrough
Upper view shows a part of the great crowd in the
Gen-
grandstands in Travelers Park Second row, left is
tions
Governor Futrell (right), talking with Senator Robin
IF no
A
his
son. Center, Senator Pat Harrison of Mississippi shaking
day
hands with Senator Robinson, his colleague, on the speak-
"her
ers' stand.
to
"
(her
Right, Dr. rank Vinsonhaler, general chairman of
5 at
the welcome group
) at
Below, Senator Robinson spea
to the crowd.
a by
she
1:at
PAICERS
overnment checks will
RED
to to
1,000
M
of
and
the
the
ional
Cord
fai
the
W:
ling
fact
ited
V
be-
red
cul
n-
SOU
am
Apr
acr
the
ing
bee
met
ers'
proi
Ty
be
bers
culty
Land
ERCIAL
DAY MORNING, AUGUST 3, 1933. WENTY-FOUR PAGES
PRICE FIVE CENTS
Telegraph
Service by
ARKANSAS IN TRIBUTE
14,000 Bank
TO SENATOR ROBINSON
ON HIS RETURN HOME
Code Cov
LISTEN
You KNOW WHATS
Ten Thousand Cheer Demo-
Hours an
EXPECTED OF You,
cratic Leader In Little Rock.
DONT You
HIS SAGACITY IS EXTOLLED
Million More Workers C
R.A. As Advisors Draf
Senators Pat Harrison and
Robert Reynolds Add Eulogies.
Strikes in Industry.
ROOSEVELT SENDS WIRE
BY THOMAS L. STOP
United Press Staff Correspond
Traveler's Field, the Baseball
Park, Is Filled With Friends
WASHINGTON, Aug. 2.-Nationa
and Admirers From All Over
to settle labor disputes, prevent strikes
the State-Telegrams Also
dustrial problems, growing out of the
Come From Postmaster Gen-
vised today by Gen. Hugh S. Johnson, a
eral Farley, Senator Glass,
Simultaneously, he blanketed 1,000,000 I
porary voluntary codes-in banks, and in the
Mr. Swanson and Others.
radio, rayon weaving, bedding and rayon and
These codes were modified agreements of the
sal involving different hours and wages.
AMERICAN
ROOSEVELT PAYS
BUSINESS
Boycott S
TRIBUTE TO JOE T.
LITTLE ROCK, Aug. 2.
NRA CHIEFS TO WATCH
Likewis
drive wou
President Roosevelt's mes-
sumers ir
sage to Dr. Frank Vinson-
with pled;
haler, chairman of the com-
FOR CODE VIOLATIONS
who fly
mittee on arrangements for
Johnson
the Robinson celebration,
tral board
praising Senator Joe T. Rob-
tional bot
inson for: his leadership and
the cotto
ability in the Senate, fol-
Will Demand That Concerns
first job
lows:
merous CI
"The splendid leadership of
Live Up to Agreements.
called "s
Senator Robinson of Arkan-
charges 1
sas worthy of the special
have bee
recognition being given him
EMBLEMS
DISTRIBUTED
joined a
upon his homecoming. Much
The red
of the credit for the enact-
ioned thi
ment of the remedial legisla-
Consumers' Cards and Posters
every inc
tion is due to his forceful ef-
lems. It
forts- Please let me join in
Also Are Given Out By Local
ble to th
paying tribute to this fine
ing with
American.
Recovery Bureau; Check-up
in the st
"FRANKLIN D.
ROOSEVELT."
Will Show Results So Far.
"company
an issue.
Thoug
the cotton
Pictures of Senator Robinson's re-
Distribution of half a million NRA
said, "it
ception at Little Rock last night.on
insignia, emblems, stickers, consum-
el for pr
where sin
page-13.
ers' pledge cards and posters to
are likely
BY G. O. ROBINSON, JR.,
Memphis firms who are co-operating
to do mu
Commercial Appeal Staff Correspendent.
in the national recovery program be-
and lock
of employ
LITTLE ROCK, Aug. 2.-In an
gan yesterday as plans were made to
is Job Not A Deputy Sheriff's.
therefore
see that the spirit and the letter of
in the 31
unprecedented demonstration of loy-
the program are followed by the
poses of
alty. and admiration Arkansas to-
HOME LOAN RED TAPE
night welcomed her distinguished
NRA firms
Jobs to
lank Clearings
son, Senator Joseph T. Robinson, as
The NRA insignia were received at
The fiv
the post office yesterday morning
under the
more than 7,500 voices blended in
ank clearings so far thi
CUT AT STATE PARLEY
a symphony of praise for the Dec-
istrative
and clerks immediately began assem-
k areamore than $781.00
ocratic leader whose political trail
ve the same period las
led from a Lonoke County farm to
bling them in units for distribution
employ
The mod
one of the highest councils of his
yesterday afternoon and today. Em-
untary a
ney were:
party and nation.
inesday, Aug. 2:$1,660,371.0)
Traveler's' Field, home of the Lit-
ployers participating in the NRA
participa
far this week 4,817.
Nashville Meeting Drafts Uni-
fle Rack besebe team, where the
program can obtain the ir" 12018 by
to 40,000
lilue laster
form Deed of Trust and Note
homecoming celebration was held.
presenting stgned certify of
hanks, D
sek
4,909,170.02
was. packed, and the huge crowd
te, time llast
compliance with the provisions of the
Bankers'
heard several of the senator's col-
ar
4,036,218.58
leagues and high state officials ex-
recovery program at Room 106 in the
of thous
10 time two
SEEKS FEDERAL APPROVAL
out the
tal the brilliance, political sagacity
north end of the first floor of the
banks no
ars ago
5,292,036.24
and capability of the right-hand man
post office.
co-operat
of President Roosevelt, in the na-
agreemm
Session in Office of Litterer,
tional upper house.,
Furnished With Agreements.
Eugene
Senator Robinson was introduced
CK MARKET FIXES
Tennessee Manager, Expected
The certificates of compliance were
federal r
by Dr. J. H. Reynolds, president of
furnished employers along with the
ment tor
to Result in Speedier Action
Hendrix College, Conway. After ex-
pressing appreciation of the tribute
voluntary agreement blanks which
today ar
on Relief Here.
paid him, the senator launched into
thousands of them already have
federal r
RULE ON MARGINS
signed. The return of the signed cer-
the agre
his discussion of national issues.
tificates certifies that the employer
Expres
BY HILTON BUTLER.
Praises Roosevelt.
has the blanket recovery program in
eral rese
Senator Robinson turned his home-
effect in his business.
Bankers'
The Commercial Appeal-Chicago Tribune
the reco
Leased Wire.
coming address into a song of praise
Each employer presenting a certifi-
Must Report Weekly to
have at
NASHVILLE, Tenn., Aug. 2.-Ef-
for President Roosevelt's "fearless
cate of compliance will be furnished
this cou
forts to slash the legal red tape sur-
and aggressive efforts to overcome
a complete NRA outfit, including a
Exchange Officials
part in
unemployment, to revive hope and
door or window card, posters, win-
step take
rounding home loans resulted today
to quicken the spirit of the people
dow stickers, small atickers for use
Blanke
page 13,
pledge cards and posters to
ar
Memphis firms who are co-operating
to
BY G. O. ROBINSON, JR.,
at
Commercial Appeal Staff Correspendent.
in the national recovery program be-
of
gan yesterday as plans were made to
th
LITTLE ROCK, Aug. an
esman Job Not A Deputy Sheriff's
see that the spirit and the letter of
in
unprecedented demonstration of loy-
pc
alty and admiration Arkansas to-
the program are followed by the
NRA firms.
It
HOME LOAN RED TAPE
night welcomed her distinguished
The NRA insignia were received at
son, Senator Joseph T. Robinson, as
Bank Clearings
the post office yesterday morning
us
more than 7,500 voices blended in
is
Bank clearings 60 far the
CUT AT STATE PARLEY
a symphony of praise for the Dec-
and clerks immediately began assem-
ocratic leader whose political trail
e)
week more than $781 00
bling them in units for distribution
above the same period las
led from a Lonoke County farm to
T
one of the highest councils of his
yesterday afternoon and today. Em-
u
year.
They were:
party and nation.
ployers participating in the NRA
D
Wednesday, Aug. $1,660,871.
Nashville Meeting Drafts Uni-
Traveler"s' Field; home of the Lit-
tle Rock baseball team) where
program can obtain tije imaginia by
Thus far this week 4,817,665
Same think 188L
form Deed of Trust and Note.
homecoming celebration was hold.
presenting signed certificate of
week
4,909,170.02
was packed, and the huge crowd
compliance with the provisions of the
Same. time last
heard several of the senator's col-
0
leagues and high, state officials ex-
recovery program at Room 106 in the
0
year
4,036,218.
SEEKS FEDERAL APPROVAL
tal the brilliance, political sagacity
north end of the first floor of the
b
Same time two
years ago
5,292,036.24
and capability of the right-hand man
post office.
C
of President Roosevelt, in the na-
a
Session in Office of Litterer,
tional upper house.
Furnished With Agreements.
Senator Robinson was introduced
The certificates of compliance were
STOCK MARKET FIXES
Tennessee Manager, Expected
by Dr. J. H. Reynolds, president of
furnished employers along with the
to Result in Speedier Action
Hendrix College, Conway. After ex-
voluntary agreement blanks which
pressing appreciation of the tribute
thousands of them already have
on Relief Here.
paid him, the senatori launched into
signed. The return of the signed cer-
NEW RULE ON MARGINS
his discussion of national issues.
tificates certifies that the employer
€
has the blanket recovery program in
Praises Roosevelt.
BY HILTON BUTLER
effect in his business.
The Commercial Appeal-Chicago Tribune
Senator Robinson turned his home-
Each employer presenting a certifi-
Leased
Wire.
coming address into a song of praise
cate of compliance will be furnished
Pools Must Report Weekly to
NASHVILLE Aug. Ef-
for President Roosevelt's 'fearless
a complete NRA outfit, including a
and aggressive efforts to overcome
forts to slash the legal red tape sur-
door or window card, posters, win-
Exchange Officials.
unemployment, to revive hope and
rounding home loans resulted today
to quicken the spirit of the people
dow stickers, small stickers for use
in the drafting of & simplified and
into action.
on packages, and consumers', pledge
With praise for the president, he
cards.
WHITNEY ANNOUNCES PLAN
uniform deed of trust and note for
coupled a plea for public co-operation
Preliminary plans for a check-back
use by the various state branches of
with the administration's program,
on NRA firms to see that they are
Accounts of More Than $5,000
the Home Bank System in Tennes-
and an alert public opinion to con-
complying with the recovery code in
see, by which a speeding up of the
demn those who become parties to
shortening hours and increasing
Must Be Supported By 30 Per
any form of fraud or extravagance."
wages and employment were dis-
actual granting of the loans now be-
In praise of the president, Senator
cussed at a meeting yesterday be-
Cent Margin-Business Calls
comes possible.
Robinson said:
tween W. B. Henderson, district
In Homes Banned.
The work was done at a conference
'The speed with which he gathered
NRA chief; Jake Cohen, labor leader,
of attorneys for the Home Loan
the forces of reconstruction and re-
and U. S. District Attorney McClan-
Bank and its district and county
covery is unparalleled in human his-
ahan and his assistants.
branches, held here today at the of-
tory. What matter if mistakes have
By The Associated Press.
fice of Charles H. Litterer, state
been made. Experience will correct
Suits Can Be Filed.
NEW YORK, Aug. The govern-
manager. Charles Cornelius of Nash-
them. The important thing is to act
Under the terms of the National
ing committee of the New York
ville, general counsel, presided.
decisively and promptly: and surely
Industrial Recovery Act, authority to
Fletcher Cohn of Memphis, Home
Stock Exchange promulgated new
no one will say that, hesitation or
enforce the provisions of any code,
Loan attorney for the Western Dis-
delay have marked a single day since
through suits in equity, after its
rules today fixing minimum margin-
trict of Tennessee, was in attendance
the fourth of March."
along with representatives from all
adoption and approval by the presi-
al requirements, ordering members
"The measures resorted to for re-
to file weekly reports of pools and
other districts and a large number
dent, is vested in the federal courts
versal of the currents of adversity
and it is made the duty of the sev-
of the individual counties
joint accounts and prohibiting the 50-
have been admittedly radical and un-
eral U. S. district attorneys to file
Rushed to Washington
precedented," he declared. "Some of
licitation of business in customers'
these suits when justifiable com-
The simplified deed of trust and
them-perhaps the most important-
homes.
have never before been tried. But
plaints are made.
note form drafted here today was
"The United States district attor-
The committee on business conduct
rushed to Washington for approval.
this very fact has contributed to
ney will enforce the national indus-
revival of confidence and courage.
will require a minimum margin of
Pending action there, no loans can
trial recovery act as any other law
S
per cent of the debit balance in each
be made, but in clearing up numer-
Everywhere, from millions of lips,
when proper complaint is made," Mr.
11
ous other legal tangles around the
you have heard the declaration (that
McClanahan said yesterday after the
account having a debit balance of
act, the attorneys in their confer-
the new administration is making
r
more than $5,000 and a minimum
ences today-announced that they be-
fearless and aggressive efforts to
conference.
margin of 50 per cent in accounts
overcome unemployment, to revive
The government, it' is known, plans
lieved the underbrush has been
with debit balance of $5,000 or less.
hope and to quicken the spirit of the
to begin a check of: NRA firms as
cleared away and a speeding up of
11
actual loans will be the net result."
people into action."
soon as the initial agreements have
S
Studied Long Time.
Mr. Cohn said that Mr. Litterer
"Ample evidence exists that to date
cleared to determine what has
11
Richard Whitney, Stock Exchange
gave statewide orders today for the
these policies and measures have not
n'accomplished by the adoption of
president, who announced the new
work on appraisals to start at once.
been failures, he continued. On
the blanket code in the way of rais-
regulations, said that the action rep-
"Get everything done as far as
the contrary they have been success-
ing salaries, shortening hours, in-
resents a development of the policy
possible, so that when the actual
ful and helpful tor a gratifying ex-
of the exchange" and that all of
loan stage approaches we will be
tent. Millions have been restored
(Please Turn to Page Four)
S
these various steps have been under
h
ready Litterer told the attorneys.
to employment, commot ty prices
consideration for many months and
Methods of title examination and
have. been raised, and a better civi-
HAMBONE'S MEDITATIONS
of
have been adopted because we have
signings of the trust deeds and notes
lization is in prospect The work has
become convinced that they. are
By Alley.
were discussed in detail, resulting in
not been completed It has only be-
or
sound and in the public interest
agreements. that the attorneys be-
rt
The exchange also moved to elimi-
gun; every faithful hand and heart
nate undesirables from the ranks of
are invited to join, the task, the most
DOCTUH LOW GITTIN
III
(Please Turn to Page Four)
1-
customers men through 'fixing sub-
gigantic ever undertaken."
MAD MEKS FOLKS
stantial minimum salaries. In an-
Earn Own Livelihood
nouncing this, Whitney said it was
TODAY'S PAPER
SICK, BUT OLE OMAN
"felt that this step will tend to at-
He warned, however, "it is wise to
tract men of responsibility to this im-
consider there are dangers ahead.
GITTIN' MAD Mo APT
portant branch of the business:'
In
Thursday, Aug. 3
The expenditure of hundreds of mil-
lions in federal funds for destitution
TO MEK ME A
order not ton create unemployment,
the rule does not apply to those now
relief threatens to break down the
holding jobs, but to changes in
Page
spirit of self reliance among the
CRIPPLE!!
employment and all employees Fur-
Editorials
6
needy. Without revival andistrength-
thermore, the payment of expenses
Arthur Brisbane
6
ening of that spirit, the espectre of
incurred by customers' men for (the
6
mendicancy will stalk through the
entertainment of customers has been
O. O. McIntyre
land.
Dr. W. A. Evans
6
prohibited.
Our people in the long run
The text of the new rules govern-
Frederic L. Haskin
6
must not be taught to depend on the
Governor Patterson
6
government for subsistence nor for
(Please Turn to Page Four
Walter Lippmann
6
the means of obtaining it. They must
Society
7
be inspired with the determination to
GUNMEN SLAY WOMAN
earn their own livelihood in ways of
Radio
8
Dorothy Dix
10
their own choosing. This indispen-
Converse With Victim, Shoot Her
Helen Rowland
10
(Please Turn to Page Two)
In Back.
Food News
10
CHICAGO, Aug
Fashions by Marie
10
FIRE CHIEF ON FIRE
launched a widespread search today
Skippy
13
for three gunmen who shot and
Louella Parsons
14
Lighted Pipe Starts Blaze in
killed a comely well-dressed woman
Footlights and Flickers
14
"Smoke-Eater's" Pocket.
at a south side street corner at mid-
Ely Culbertson
14
MOUNT HOLLY, N. J., Aug 2.
night. The woman, about 40 years
Sports
15-16-17
(AP)-About the hottest fire John A
old, remained unidentified.
Ripley
17
Throckmorton, chief of the local fire
One of the trio alighted from an
automobile, strode over to the wo-
Cross Word Puzzle
18
department, ever heard of was right
man, and shot her in the back after
18
in his own pocket.
Serial Story
a brief conversation
Comics
18
The chief, while watching a ball
diamond rings and the wo-
game, placed a lighted pipe in his
Financial
21
man's purse were not touched, lead-
coat pocket. So absorbed was he in
Weather and Death Notices
22
the game that friends had to tell
ing police to believe that robbery
(Depyright, 1933, by The Bell Syndicate. Ins)
was not the motive for the murder.
Want Ads
22-23
him he was on fire.
THE COMMERCIAL APPEAL, MEMPHIS
Robinson Heralds New Era
PARTY HAS KEPT THE
repeated if the orgy of speculation
gager, foreclosure can not be
inson said "the experiment can not
now in progress continues and gath-
avoided.
be successful without co-operation
ers volume. It is unsafe to partici-
"As soon as circumstances permit
from both producers and processors."
pate in: get-rich-quick schemes.
the effort will be made to take the
"There is no alternative. declared
FAITH SENATOR SAYS
"No man, however bold or re-
government out of the mortgage
the senator, referring to the necessity
sourceful, can build a successful ca-
business, with respect to both farms
for the industrial control measure
reer on that foundation. Good old-
and homes. The primary design of
as a means of increasing wages and
fashioned labor, patient work with
the legislation is to counteract the
commodity prices, "as trial shows
hand and with brain, are the only
destructive consequences resulting
necessity for changes, they can be
Arkansas' Distinguished Son
sure reliance. The worst thing ob-
from the breakdown of private credit
made.
servable is the sign displayed in
institutions, including Federal and
"The effort to avoid waste and
Reviews Work of Congress.
transactions on exchange that reck-
Joint Stock Land Banks, and other
graft may not be entirely success-
lessness and ill-considered action are
private corporations engaged in the
ful, he said, in commenting on the
still the implement of rich and poor
business of making mortgage loans
$500,000,00 available for destitution
investors alike. The American peo-
on real estate.
Special to The Commercial AppeaL
relief in the states, "but public opin-
ple can not look to the government
LITTLE) ROCK, Aug. 1.-Review-
for employment except in times of
Confidence.
ion is relied upon to condemn those
emergency: They must build their
who become parties to any form of
ing the work. of the recent historic
Perhaps the most notable exam-
own fortunes and rely upon their
fraud or extravagance."
ple of the implicit confidence in the
session of Congress, Senator Joe T.
own knowledge and skill. Those who
Senator Robinson's entrance into
president demonstrated by emergency
Robinson, in his speech tonight at
have wealth, whether great or small,
the park was dramatic as well as
legislation is in authorizing the issu-
the- state-wide: celebration in his
will as likely lose their fortunes in
splendidly staged. As the automobile
speculation on exchanges as in bets
ance of treasury notes on govern-
honor, said that the "one thought
carrying the senator came into the
that has been in my mind has
on the turn of the wheel or the
ment bonds and private assets here-
south entrance, lights in the park
tofore not eligible, and in authoriz-
been to serve the country faithfully
dealing of the card
were turned off and a brilliant spot-
ing the president to change the gold
and particularly to advance the in-
light played upon him. His head was
For Public's Protection.
content of the dollar. This sub-
terests of the people of this state to
bare He was dressed in a white suit
ject of itself is of such importance
whom I recognize a debt of gratitude
"The recent session of Congress
and was accompanied in the auto-
as to constitute a legitimate basis
which cannot be adequately express-
passed a stringent. securities meas-
mobile by his wife, Senator Pat Har-
for an elaborate address. Letime
words, and which can only be
ure designed to protect the public
rison of Mississippi and several Lit-
content myself by saying that the
partially compensated for by the
against commerce in: fraudulent
tle Rock officials. In another car
unfaltering performance of public
stocks and bonds. The indications
object in giving the president the
came other friends.
very unusual authority to change
duty
are that radical remedies must be
The march was led by the drum
Senator Robinson' address fol-
resorted to, to safeguard the busi-
the content of the gold dollar is
and bugle. corps the Little Rock
ness of the nation and the happiness
threefold, namely, to strengthen and
lows:
American Legion Post. Before the
'Pleasing and encouraging to me
of the people against foolish and un-
equip him for the protection of
grand parade, the Pine Bluff boys'
American interests in. the London
a. these ceremonies, and the
restrained so-called transactions on
band harched around the field.
the market, even if it becomes nec-
Economic Conference, to aid in re-
very gracious recognition of my pub-
Alighting from his car, Senator
lic services which they imply, one
essary to outlaw contracts on mar-
storing. commodity price levels, and
Robinson proceeded to the speaker's
to assist in equalizing between
cannot unmindful of the truth
gins.-
stand constructed on the site of the
debtors wand: creditors the hardships
that personal considerations are
passed a banking law provid-
pitcher's box: on the diamond. From
of the panic and depression
over-shadowed and submerged by
ing for the separation of banks from
the thousands of spectators came
The process of depreciating the
public importance of achievements
their security affiliates SO that de-
thunderous applause and the crowd
dollar while at: the same time arbi-
during the extraordinary session
positors funds may not improvidently
rose in paying first tribute of the
trarily fighting to raise prices is one
which recently. closed its labors.
be invested by trustees. We provided
night: The senator was accompanied
that must be employed with con-
The session will be memorable for
for insurance of bank deposits in
to the stand by Senator Harrison
siderátion of all the citizens of the
the speed with which measures were
limited amount, and if the present
and Senator Robert R. Reynolds of
country and their diversified inter-
disposed of, the number of important
arrangement proves indaequate fur-
North- Carolina. Governor Futrell,
ests. It must and will be exercised
subjects of legislation considered.
ther steps must be taken, for the
Cong. W. J. Driver, Congressman
with great prudence and caution. All
and the unprecedented and radical
people of the United States can not
Claud Fuller, Congressman G. D.
the funds set up for relief in the
>character of the measures enacted.
expect their business to prosper if
G'over, Mrs. Laura Fitzhugh Davis,
various measures mentioned must
their funds in banks are not safe-
Brooks Hays, Congressman E.
come from the people themselves in
An Honor.
guarded.
Miller and Congressman T. B. Parks
the form of taxes. True a portion
followed
"To have had a humble. part in
"We enacted statutes to relieve
of the enormous aggregate may be
this work is indeed an honor to be
against and to prevent avoidable
passed on to future generations, but
Vinsouhaler First.
ishared by every member of Congress
foreclosures of farm mortgages by
this government cannot rely on
Dr. Frank Vinsonhaler, chairman
*Who gave the president's policies
making possible the refinancing of
merely printing money or any other
Toyal and;unwavering support. Many
the many mortgages and the reduc-
form of uncontrollable inflation.
of arrangements for the celebration,
provisions of the legislation are ad-
tion of the interest rates charged
There has never been an instance in
was the first speaker, introducing
by land banks. Of course there are
Dr. James Thomas, Methodist pas-
mittedly. experimental and their ef-
history where such so-called rem-
tor, who said the invocation. Gover-
fectiveness depends upon so many
hopeless cases-cases X in which the
edies have not proved more harm-
nor Futrell followed in a short ad-
circumstances and influences which
obligations can not be refinanced,
ful than beneficial. Our dollar must
are yet to be developed that the de-
because there is a limit to the credit
be stabilized when prices have
dress, and then came Senator Rey-
nolds, whose resonant voice boomed
gree of their usefulness cannot now
which the government may safely
reached a fair and just level, and
be determined with mathematical ac-
lend in private transactions.
through the park in compliment to
it must be kept sound by: reserves
the prowess and ability of the Ar-
*curacy.
"The new farm commodity price
in gold and silver or in safe com-
kansas leader.
Fully realizing that merely good in-
measure depends for success on the
mercial assets
Senator Harrison was introduced
tentions on the part of Jawmakers
sensible limitation of production by
"During recent years annual gov-
are not alone sufficient, but that
and he, too, lauded the senator;
compensating. producers for diminu-
ernment expenditures have enormous-
whose record as an American states-
prudence and wisdom are required
tion in acreage and by attempting to
ly increased. Congress passed the
in the administration of laws in or-
man has gripped the imagination of
establish and maintain the fair ex-
economy act reducing federal sal-
his constituents and brought for him
*der to secure the reversal. of un-
change value for agricultural com-
aries and giving the president ex-
fame, and respect from the entire na-
"satisfactory or distressing conditions,
modities: This experiment not be
traordinary powers for the reorgani-
tion. The senator stressed the fact
it is my purpose to make a definite
successful without co-operation from
zation, consolidation and abolish-
that the success of the Roosevelt ad-
statement of principles, which it is
both producers and processors. There
ment of government bureaus and
ministration was in large measure
believed should be generally accepted
will result instances of hardship, but
agencies; and for the elimination of
due to the indefatigable efforts of
by the public as an aid: to determin-
these may be minimized in number
certain veteran allowances as well
ing the value of-changes in political
as the reduction of others. Mis-
Senator Robinson who piloted the
and in fact prevented by experience.
policy sought to be accomplished by
The Industrial Control-Public Works
takes have been made in the rules
remedial bills and radical legislation
through the Senate in a minimum of
degislation since the inauguration of
measure is among the most far-
and regulations for the administra-
time. On Senator Robinson's brow
President Roosevelt.
reaching laws ever enacted. The one
tion of the act, and injustice has re-
"First to degree never before
contemplates elimination from indus-
sulted, making necessary changes in
these distinguished colleagues placed
try of destructive and unfair com-
the provisions fairly required- for
the crown of greatness.
known in the political history of the
Others on the platform were James
country in SO short time, there has
petition, increased wages and com-
those who suffered injury through
been a literal and complete redemp-
modity prices 30 as to sustain whole-
service in the camps or on the bat-
Hammond, Mrs. W. H. Arnold, Mrs.
tion of the platform. pledges upon
some> living conditions and to ab-
tlefields while maintaining the na-
W. J. Driver, Mrs. C. A. Fuller, Mrs.
Futrell, Mrs. G. D. Glover,
which the national Democratic party
sorb the unemployed into the indus-
tion's cause.
Martineau, Lee Miles, Grady Miller,
won victory in November, 1932.
tries of the nation.
"No one more than the president
Mrs. J. E. Miller, Mayor U. E.
"While the constitution has been
"It is not surprising that the blan-
regrets that in working out the rules
Moore, Mrs. Moore, Mrs. T. B.
NO amended that hereafter new ad-
ket code for industry and the special
and regulations pertaining to veter-
Parks, Judge T. C. Trimble, Dr. J. J.
ministrations will begin approximate-
an allowances, errors were made,
codes for particular forms of indus-
Doyne, J. N. "eiskell and W. T.
1y with the calendar year following
the elections, the change was not
try should cause uneasiness and
making necessary, from time to time,
revisions of the rules and regula-
Sillington.
authorized soon enough to permit
should provoke anxiety. Neverthe-
It was not a sectional event, this
tions.
that to occur this year. and there-
less, we must: go forward with the
"Let it be remembered that with
homecoming. From the, Ozarks to
fore, President Roosevelt and the
movement. There is no alternative.
an aggregate deficit of three billion
the Louisiana line and from: the
newly chosen Congress did not as-
As trial shows necessity for changes,
dollars, and with a prospective short-
Mississippi River to the Oklahoma
sume authority.|until Maych 4. With
they can be made.
age of five billion dollars, decisive
border, friends and admirers of the
n the comparatively short period)
and radical action was necessary for
senator crowded into the city to-
That has. elapsed since wthen every
Gigants
the working out of a program for
day. coming in cars, trains. air-
pledge upony which the Democrats
"The public works program is the
national recovery. Through the gra-
planes and busses. From Easterns
went to the country has been as
most gigantic construction plan ever
cious favor of the people of Arkan-
Arkansas, especially, an exception-
fully redeemed as the conditions
evolved. As the government works
sas and the trust reposed in me by
ally large delegation came to add
made possible.
the federal authority will advance
my associates in the Senate, it has
their praises to: those from other
the entire funds necessity for the
been my privilege to take part in one
sections.
Previous Policy.
completion of projects found essen-
of the greatest tasks ever undertaken
That Senator Robinson, who has
"While previous to the Roosevelt
tial to social and business welfare.
by a. nantional administration since
dedicated 39 of his 61 years to serv-
administration, President Hoover and
With respect to state, local and other
the formation of the government. The
ice to his state and nation, was
those associated with him in the
enterprises, only 30 per cent of the
one thought that has been in my
touched by the outpouring of felici-
control of the government realized
amount required will be contributed
mind throughout the long and trying
tations from the hundreds of per-
the existence of disastrous condi-
by the national government, except
ordeal has been to serve the country
sons who sent greetings by wire,
tions tending to the destruction of
that loans may be made based on
faithfully and particularly to ad-
phone and letter, was evident.
the happiness and prosperity of the
sound security for the remaining 70
vance the interests of the people of
Many of the congratulations were
people, they pursued a policy of in-
per cent, or any portion thereof. The
this state to whom I recognize a debt
read to the immense crowd and they
decision which proved disastrous. In
works to be carried on will be care-
of gratitude which cannot be ade-
included messages from the prest-
the midst of the confusion and fear
fully studied and wisely chosen. No
quately expressed in words, and
dent on down to the humblest citi-
that everywhere prevailed. on one
doubt many projects will be rejected
which can only be partially compen-
zen of the state. From all parts of
appeared willing to take the initia-
to the disappointment of individuals
sated for by the unfaltering perform-
the nation they came, expressing
Hva those changes. recor-
and communities because the pro-
ance public
pleasure that the senator was being
to
&
degree
never
before
contemplates
known in the political history of the
try of destructive and unfair com-
the provisions fairly
Others on the
country in SO short time, there has
petition, increased wages and com-
those who suffered injury through
Hammond, Mrs. W. H. Arnold, Mrs.
n
been a literal and complete redemp-
modity prices SO as to sustain whole-
service in the camps or on the but-
W. Driver, Mrs. C.A. Fuller, Mrs.
A
tion of the platform pledges upon
some living conditions and to ab-
tlefields while maintaining the na-
Futrell, Mrs. G. D. Glover, J. E.
C
which the national Democratic party
sorb the unemployed into the indus-
tion's cause.
Martineau, Lee Miles, Grady Miller,
a
won its victory in November, 1932.
tries of the nation:
'No one more than the president
Mrs. J. E. Miller, Mayor U. E.
J
"While the constitution has been
regrets that in working out the rules
BO amended that hereafter new ad-
"It is not surprising that the blan-
Moore, Mrs. Moore, Mrs. T. B.
J
and regulations pertaining to veter-
ket code for industry and the special
Parks, Judge T. C. Trimble, Dr. J. J.
ministrations will begin approximate-
an allowances, errors were made,
Doyne, J. N. eiskell and W. T
I
ly with the calendar year following
codes for particular forms of indus-
making necessary, from time to time,
(
the elections, the change was not
try should cause uneasiness and
Sillington.
revisions of the rules and regula-
authorized soon enough to permit
should provoke anxiety. Neverthe-
It was not a sectional event, this
tions.
that to occur this year, and there-
less, we must go forward with the
"Let It be remembered that with
homecoming From the Ozarks to
movement. There is no alternative.
the Louisiana line and from the
fore, President Roosevelt and the
an aggregate deficit of three billion
newly chosen Congress did not as-
As trial shows necessity for changes,
dollars, and with a prospective short-
Mississippi River to the Oklahoma
sume authority/until March 4. With-
they can be made.
age of five billion dollars, decisive
border, friends and admirers of the
and radical action was necessary for
senator crowded into the to
in the comparsitively short period
that has elapsf since then every
Gignns*
Program
the working out or program for
ddy. coming in cars, trains, air-
pledge upon which the Democrats
"The public works program is the
national recovery. Through the gra-
planes and busses. From Eastern
went to the country has been as
most gigantic construction plan ever
cious favor of the people of Arkan-
Arkansas, especially, an exception-
fully redeemed as the conditions
evolved. As the government works
sas and the trust reposed in me by
ally large delegation came to add
made possible.
the federal authority will advance
my associates in the Senate, it has
their praises to those from other
been my privilege to take part in one
sections.
the entire funds necessity for the
Previous Policy.
completion of projects found essen-
of the greatest tasks ever undertaken
That Senator-Robinson, who has
"While previous to the Roosevelt
by a nantional administration since
dedicated 39 of his 61 years to serv-
tial to social and business welfare.
With respect to state, local and other
the formation of the government. The
ice to his state and nation, was
administration, President Hoover and
those associated with him in the
enterprises, only 30 per cent of the
one thought that has been in my
touched by the outpouring of felici-
control of the government realized
mind throughout the long and trying
tations from the hundreds of per-
amount required will be contributed
the existence of disastrous condi-
ordeal has been to serve the country
sons who sent greetings by wire,
by the national government, except
tions tending to the destruction of
that loans may be made based on
faithfully and particularly to ad-
phone and letter, was evident.
sound security for the remaining 70
vance the interests of the people of
Many of the congratulations were
the happiness and prosperity of the
per cent, or any portion thereof. The
this state to whom I recognize a debt
read to the immense crowd and they
people, they pursued a policy of in-
decision which proved disastrous. In
works to be carried on will be care-
of gratitude which cannot be ade-
included messages from the presi-
dent on down to the humblest citi-
the midst of the confusion and fear
fully studied and wisely chosen. No
quately expressed in words, and
that everywhere prevailed. on one
doubt many projects will be rejected
which can only be partially compen-
zen of the state. From all parts of
to the disappointment of individuals
sated for by the unfaltering perform-
the nation they came, expressing
appeared willing to take the initia-
tive in forcing those changes, recog-
and communities because the pro-
ance of my public duty."
pleasure that the senator was being
nized to be prerequisite to national
jects are not found to be self-liqui-
honored, and lauding his ability and
dating or necessary under present
service to his country.
recovery. The banking system col-
lapsed, unemployment became gen-
conditions.
"The" Reforestation Act and the
ARKANSAS IN TRIBUTE
Included in the messages were
those from Senator Tydings of
eral, prices declined and enterprise
public works measure are intended
Maryland, Senator Glass of Virginia,
was suspended or abandoned. Bank-
ruptcy and ruin threatened the na-
to take up the slack in unemploy-
tion. Deficits to the amount of bil-
ment to the number of more than
TO
SENATOR
ROBINSON
Postmaster. General Farley, Secre-
tary of the Navy Swanson and
lions were undermining the national
3,000,000 workers. The industrial re-
Senator Stephens of Mississippi.
covery administration is looked to
Before the introductions began the
credit and the mutterings of discon-
tent and resentment were gathering
for such revival of business that
ON HIS RETURN HOME
band, of Henderson State Teachers
such volume that the stability of the
gradually profitable work may be
College at Conway and the 153rd In-
government was seriously threat-
afforded to the remaining millions in
fantry Band of the Arkansas Na
ened.
our population who are now idle.
tional were features. This
"President Roosevelt let the world
In the meantime, while these
(Continued From Page One)
phase of the celebration was also
various processes are getting under
featured by a contest between an
know that he had no sympathy or
sable end may be obtained through
tolerance for the Do-Nothing policy.
way, $500,000,000 is available for des-
anti-aircraft battery and an wair
The speed with which he; gathered
titution relief in the states. The ef-
whole-hearted co-operation.
fort to avoid waste and graft may
"The spectacle presented in recent
plane manned by national guards
the forces of reconstruction and re-
men with a giant searchlight at
not prove entirely successful, but
days of wild and unrestrained specu-
covery is unparalleled in human his-
lation, on the exchanges is both piti-
tempting to spot the plane as
tory. What matter if mistakes have
public opinion is relied upon to con-
droned over the field.
demn those who become parties to
able and contemptible," the senator
Senator Harrison declared tha
been made. Experience will correct
any form of fraud or extravagance.
said. Those who have wealth,
them. The important thing was to
next to "our beloved president,'
whether great or small, will as likely
act decisively and promptly; and
"The Home Owners Loan arrange-
Senator Robinson had become the
surely no one will say that hesita-
ment is an important feature) of the
lose their fortunes in speculation on
most influential political character O
recovery program. It contemplates
the exchanges as in bets on the turn
tion or delay have marked a single
the nation.
day since March 4.
the exchange of bonds, the interest
of the wheel or the dealing of the
"While his pre-eminent place has
only to be guaranteed by the gov-
card."
The measures resorted to for re-
been attained before the recent Cor
versal of the currents of adversity
ernment, for first mortgages on
"The indications are." he con-
gress was organized, it was durin
have been admittedly radical and
home properties. It is expected that
tinued, 'that radical remedies must
the Mast session that he rose "t
unprecedented. Some of them-per-
very substantial scaling down in
be resorted to, to safeguard the busi-
heights of greatness without paralle
haps the most important-have never
many instances will be arranged for
ness of the nation and the happiness
in the history of the Senate," Har
before been tried. But this very fact
the benefit of debtors. As in the
of the people against foolish and un-
rison declared. When in plannin
has contributed to the revival of
cases of farm mortgage indebtedness
restrained so-called transactions on
strategy, or in consultation, or
confidence and courage. Everywhere,
where the obligations have accumu-
the market even If it becomes nec-
fiery debate, Robinson had unerrir
from millions of lips, you have
!ated in such amounts as to be out
essary to outlaw contracts on mar-
judgment and his striking persona
heard the declaration that the new
of proportion to the reasonable value
gins."
ity dominated the situation, t]
administration is making fearless
of the property and where reduction
Speaking of the new farm com-
senator declared.
and aggressive efforts to overcome
will not be agreed to by the mort-
modity price measure, Senator Rob-
The crowd attending the celebr
unemployment, to revive hope and
to quicken the spirit of the people
into action.
Have Not Been Failures.
"Ample evidence exists that to
date these policies and measures
have not been failures. On the con-
Feed
trary they have been successful and
Crops
helpful to a gratifying extent. Mil-
lions have been restored to employ-
ment, commodity prices have been
The drouth out west, as well as here, has ruined most of the
raised, and a better civilization is in
prospect. The work has not been
growing corn, oats and hay. $40.00 hay, 60c oats and $1.00
completed. It has only begun
corn will eat up cotton profits quickly. You have ampleitime
Every faithful hand and heart are
unvited to join in the task, the most
to grow your feed before average killing frost, as follows:
"gigantic ever undertaken, the task
'with which is associated the well
GENUINE
'being and future progress of one
hundred and thirty million citizens.
SEED
is wise to recognize that there
are dangers ahead. The expenditure
TENNESSEE GERMAN MILLET
of hundreds of millions in federal
funds for destitution relief threat-
ens to break down the spirit of self-
We guarantee that no cheap western millet has been mixed with ours
reliance among the needy. Without
trevival and strt hening of that
Pspirit, the specter of mendicancy
will stalk through the land and ter-
Soy Beans
Sudan Grass
rify the souls of men. Our people in
the long run must not be taught to
VIRGINIAS, LAREDOES
depend on the government for sub-
sistence, nor for the means of ob-
taining it. They must be inspired
Cow Peas
Sorghum Seed
with the determination to earn their
yown livelihood in ways of their own
choosing. This indispensable end
may be accomplished through whole-
Irish Potatoes
Turnip Seed
hearted co-operation. It can not be
Mobtained without it.
"The spectacle presented in recent
days of wild and unrestrained spec-
ulation on the exchanges is both
pitiable and contemptible. Have we
RU SSELLHECKLE SEED CO.
forgotten shall we so quickly forget
the lesson of 1929 when millions of
SALES STORE AND OFFICE 26 S. .FRONT-WHOLESALE WAREHOUSE LINDEN STATE
uninformed investors. some of them
sacrificing their homes and other
M
on
M
P
H
S
necessities for the gambler's chance
of winning quick and casy profits,
precipitated a disaster which will be
ROBINSON HOMECOMING
CELEBRATION
TRAVELERS FIELD - LITTLE ROCK
WEDNESDAY NIGHT - AUGUST 2, 1933 - EIGHT P. M.
DR. FRANK VINSONHALER
CHAIRMAN
July 25th. 1933
To His Excellency,
473
.
The Honorable Franklin D. Roosevelt,
President of the United States,
Washington, D. C.
Dear Sir:
The committee on the Homecoming Celebration of the
Honorable Joseph T. Robinson, Majority Leader in the Senate
of the United States, desires to extend to you & most cordial
invitation to be present at the Homecoming ceremonies on the
2nd day of August, at 8:00 P. 1., in the city of Little Rock.
In extending this invitation we desire to express
to you that this is the first opportunity the people of
Arkansas have had to welcome their distinguished son after
the most eventful period in the legislative history of the
United States; the Majority Leader of the Democratic party
and as it would seem of all parties is to receive evidence
of the affection end appreciation of his fellow citizens.
Your participation on this occasion would be &
source of infinite pleasure to Senstor Robinson and to all
the citizens of this State, coming ES it does at & time when
the great measures instituted by you are beginning to bear
fruit and hope is again revived in the hearts of our people.
It is at such a time above all others that your presence
here would be welcome.
Believe me, therefore, when I assure you, that I
am but conveying in this invitation the desires and hopes of
all the citizens in this Statesthat you will aee fit to accept;
with the assurances of its sincere, esteem and respect, this
committee extends this invitation.
Most Cordially
S
COITS SAVINGS PLANTING
P
Inc
SCOTT'S SAVINGS PLAN, INC.
LITTLE ROCK
July 25, 1933 ARKANSAS
Mr. James A. Farley
Mayflower Hotel
Washington, D. C.
Dear Jim:
The inclosed copy addressed to President Roosevelt,
by Dr. Frank Vinsonhaler, General Chairman of Rob-
inson Home-Coming, self-explanatory. Our friends
are anxious that the President's message of congratu-
lations will be forth coming at the proper time.
Your radio address in Memphis is still being discuss-
ed by some of my friends. In other words, they say
it was full of food and certainly the voters thought
so as they digested it well on July 18.
Governor Harvey Parnell is well pleased with his appoint-
ment. His many friends are grateful to you for this
appointment. The Governor richly deserved it.
Best wishes
Cliffhott
X
DEMOCRATIC NATIONAL COMMITTEE
NATIONAL PRESS BUILDING
WASHINGTON
JAMES A.FARLEY
CHAIRMAN
July 28, 1933.
File
Miss Le Hand,
Secretary to the President,
Nyde Park, N. Y.
Dear Miss Le Hand:
I enclose letter from Cliff Scott, to which he attaches
copy of letter addressed to the President.
I would appreciate it if you would have a letter sent
to Little Rock, to reach there by August 2, to be read on
the occasion of the dinner to Senator Robinson.
This should be taken care of immediately.
Enc.
Xarurs
JAF-JM
300
THE WHITE HOUSE
WASHINGTON
MEMORANDUM -
Mr. Halsey, Secretary of the Senate,
says Mr. McIntyre has a telegram which is
EDWIN A. HALSEY
to be sent by the President on August 2nd.
SECRETARY
The name is misspelled. Telegram
United States Senate
should be addressed to:
Dr. Frank Vinsonhaler (one word)
Chairman, Homecoming Reception
Committee,
Little Rock,
Will greatly appreciate if
Arkansas.
this telegram is sent at the time
This telegram is regarding Senator
Robinson, of Arkansas. Mr. Halsey left
indicated
I
August second.
it with Mr. McIntyre this morning.
EDWIN A. HALSEY.
ok
sink
1217-A
CLASS OF SERVICE DESIRED
CHECK
DOMESTIC
CABLE
TELEGRAM
FULL RATE
WESTERN
DAY LETTER
DEFERRED
ACCT'G INFMN.
NIGHT
NIGHT
MESSAGE
LETTER
NIGHT
WEEK END
LETTER
LETTER
Patrons should check class of service
UNION
TIME FILED
desired; otherwise message will be
transmitted as a full-rate
communication.
NEWCOMB CARLTON. PRESIDENT
J. C. WILLEVER FIRST YICE-FRESIDENT
Send the following message, subject to the terms on back hereof, which are hereby agreed to
AUGUST 2 1933
Dr.Frank Vinsonhater
HON VINSON HALEN HomeCombana
CHAIRMAN DE ROBINSON RECEPTION COMMITTEE
LITTLE ROCK ARKANSAS
THE SPLENDID LEADERSHIP OF SENATOR ROBINSON OF ARKANSAS
IS WORTHY OF THE SPECIAL RECOGNITION BEING GIVEN HIM TODAY
STOP MUCH OF THE CREDIT FOR THE ENACTMENT OF THE REMEDIAL
LEGISLATION IS DUE TO HIS FORCEFUL EFFORTS STOP PLEASE LET
ME JOIN IN PAYING TRIBUTE TO THIS FINE AMERICAN
FDR
THE QUICKEST, SUREST AND SAFEST WAY TO SEND MONEY IS BY TELEGRAPH OR CABLE
1933
August
P.P.F.
July 28, 1933.
473
My dear Dr. Vinsonhaler:
The President has received your letter
of July twenty-fifth and has asked me to express
to you his deep appreciation of the cordial in-
vitation which you extend to him to attend the
Homecoming Celebration ceremonies which the
friends of Honorable Joseph T. Robinson are ar-
ranging for August second.
He regrets very much that his engage-
ments are such that it will not be possible for
him to accept.
He does send his best wishes for a
most successful celebration.
Very sincerely yours,
MARVIN H. MCINTIRE
Assistant Secretary to the President
Dr. Frank Vinsonhaler,
Chairman, Robinson Homecoming Celebration,
Little Rock,
CWS
Arkansas.
but
ROBINSON HOMECOMING
CELEBRATION
TRAVELERS FIELD - LITTLE ROCK
WEDNESDAY NIGHT - AUGUST 2, 1933 - EIGHT P. M.
DR. FRANK VINSONHALER
CHAIRMAN
July 25th, 1933
To His Excellency,
The Honorable Franklin D. Roosevelt,
President of the United States,
Washington, D. C.
Dear Sir:
The committee on the Homecoming Celebration of the
Honorable Joseph T. Robinson, Majority Leader in the Senate
of the United States, desires to extend to you a most cordial
invitation to be present at the Homecoming ceremonies on the
2nd day of August, at 8:00 P. I., in the city of Little Rock.
In extending this invitation we desire to express
to you that this is the first opportunity the people of
Arkansas have had to welcome their distinguished son after
the most eventful period in the legislative history of the
United States; the Majority Leader of the Democratic party
and as it would seem of all parties is to receive evidence
of the affection and appreciation of his fellow citizens.
Your participation on this occasion would be a
source of infinite pleasure to Senator Robinson and to all
the citizens of this State, coming as it does at a time when
the great measures instituted by you are beginning to bear
fruit and hope is again revived in the hearts of our people.
It is at such E time above all others that your presence
here would be welcome.
Believe me, therefore, when I assure you, tha to I
am but conveying in this invitation the desires and hopes of
all the citizens in this State that you will see fit to accept;
with the assurances of its sincere, esteem and respect, this
committee extends this invitation.
Most
cordially, Frank Vinsonhaler
FV:N
TELEGRAM
HW
The White House
Jman
24=gat
Mashington
308
Hyde Park, New York
August 11, 1933
Honorable Joseph T. Robinson,
Little Rock,
Arkansas.
WILL BE IN WASHINGTON ALL NEXT WEEK UNTIL SATURDAY STOP HOPE
MUCH YOU CAN COME TO SEE ME DURING THE WEEK STOP BEST REGARDS
ELH 100
FRANKLIN D. ROOSEVELT
STANDARD FORM No. 14A
APPROVED BY THE PRESIDENT
FROM
The White House
Mashington
10
LEGRAM 10, 1926
Dec 211-1933.
RATES
U.S. GOVERNMENT PRINTING OFFICE: 1933
Hm The Joseph T. Rotiver
Little Rock ark.
meny servas V.a. lappy how Year from as bet
F.D.R. or/me
you
6F3P
PPF 473
(over)
TELEGRAM
The White House PPF 473
Mashington
R. F.
Miss LeHand asks for date Senator Joe Robinson's home-coming
dinner.
M. H. M.
July 31, 1933
OK 7d 415tm Im
from the President held in telegraph office to
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P.P.E.
473
1934
January 3. 1933*
-
Dear Joe:
J. Butler Wright is already
X895
serving as Minister to Uruguay and the
Salvador post cannot be assigned as
we have not recognized the present govern-
ment of Salvador since the recent revolution.
Very sincerely yours,
Honorable Joe T. Robinson, x598 X
United States Senate,
Washington, D. C.
dj
ELEGRAM
620
The White House
c.
+
2
I
Mashington
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no-
(WU)
AB363. FD. 76 Gov't
4:00 p.m.
Little Rock, Ark., Dec. 28, 1933.
THE PRESIDENT.
Some months ago I recommended Hon. Robert Emmett Jeffrey, to
of Newport, Arkansas, for appointment as minister to Uruguay. No
action has been taken in the matter. It is noted from press
x487-
announcements that a post is available at San Salvador, and I
respectfully suggest Jeffrey, who served as Minister to Uruguay
throughout the eight yearsperiod, he speaks Spanish and is familiar
with general conditions and problems in that part of the world.
X 8 35-
Joe T. Robinson,
2
adel
U.S.S.
1 kg
and
R.
473
January 13, 1934.
Dear Joe:
I have only just had the opportunity
to read that magnificient reply of yours
many
to the gentleman from Indiana. My thanks
and congratulations.
Very sincerely yours,
C C -
Hon. Joseph T. Robinson,
United States Senate,
Washington, D.C.
EDWIN A. HALSEY
SECRETARY
United States Senate
Dear Mac:
Please show the speech of
Senator Robinson of Arkansas, to the
President. I think it is splendid
campaign material. If possible get
the President to say a word to Senator
Robinson commending him for his wonder-
ful speech.
E. A. H.
Joe Robinson
January 9, 1934.
Page
Congressional
Record
SEVENTY-THIRD CONGRESS, SECOND SESSION
Vol. 78
WASHINGTON, MONDAY, JANUARY 8, 1934
No. 4
SENATE
MONDAY, JANUARY 8, 1934
Rev. A. C. Millar, D.D., editor of the Arkansas Methodist,
S. 1513. An act to amend Public Act No. 435 of the
of Little Rock, Ark., offered the following prayer:
Seventy-second Congress, relating to sales of timber on
Our Heavenly Father, we recognize Thy power, Thy wis-
Indian land;
dom, and Thy love, and we honor and adore and love Thee.
S. 1561. An act providing for payment of $50 to each
We recognize our own weakness and Thy strength, and we
enrolled Chippewa Indian of the Red Lake Band of Minne-
invoke Thy help that we may grow stronger. We recognize
sota from the timber funds standing to their credit in the
our shortcomings and confess our sins before Thee and pray
Treasury of the United States;
that Thou wilt forgive and restore and cleanse and strengthen
S. 1580. An act to relieve the existing national emergency
us. We recognize that Thou art God not only of men but
in relation to interstate railroad transportation, and to
of nations, and we thank Thee for the Nation in which we
amend sections 5, 15a, and 19a of the Interstate Commerce
live and for Thy blessings upon it, and we pray that Thou
Act, as amended; and
wilt help us to be the kind of people that Thou wouldst
S. 1872. An act to extend the times for commencing and
have us be.
completing the construction a bridge across the French
Bless our President and all who are in authority, and
Broad River on the proposed Morristown-Newport road be-
give them health and mental ability and moral strength
tween Jefferson and Cooke Counties, Tenn.
to discharge their duties. We pray for our country, that
CALL OF THE ROLL
our people may be a God-fearing and a God-loving people,
that they may be loyal to their institutions and meet their
Mr. LEWIS. I suggest the absence of a quorum, and ask
for a roll call.
obligations in the right way. We pray that our relations
The VICE PRESIDENT. The clerk will call the roll.
to all the nations of the world may be such that we may
be helpful, that we may be a blessing to the world of which
The legislative clerk called the roll, and the following
Senators answered to their names:
we are a part.
We pray for Thy special blessing, Heavenly Father, upon
Adams
Couzens
Keyes
Robinson, Ark.
Ashurst
Cutting
King
Robinson, Ind.
this body, upon its President and every Member. Grant
Austin
Davis
La Follette
Russell
that they may be men who love and fear Thee, help them
Bachman
Dickinson
Lewis
Schall
Bailey
Dill
to do right as men and as officials, and help them to recog-
Logan
Sheppard
Bankhead
Duffy
Lonergan
Shipstead
nize that their primary obligation is to Thee and their con-
Barbour
Erickson
Long
Smith
science. Continue to guide and bless them, and finally give
Barkley
Fess
McAdoo
Steiwer
Black
Fletcher
McCarran
us all a home with Thyself. We beg for Christ's sake.
Stephens
Bone
Frazier
McGill
Thomas, Okla.
Amen.
Brown
George
McKellar
Thomas, Utah
HENRY D. HATFIELD, a Senator from the State of West
Bulkley
Glass
McNary
Thompson
Bulow
Goldsborough
Murphy
Townsend
Virginia, and HUBERT D. STEPHENS, a Senator from the State
Byrd
Gore
Neely
Trammell
of Mississippi, appeared in their seats today.
Byrnes
Hale
Norris
Tydings
Capper
Harrison
Nye
Vandenberg
THE JOURNAL
Caraway
Hastings
O'Mahoney
Van Nuys
The Chief Clerk proceeded to read the Journal of the
Carey
Hatch
Overton
Wagner
Clark
Hatfield
Patterson
Walcott
proceedings of Thursday; January 4, 1934, when, on request
Connally
Hayden
Pittman
Walsh
of Mr. ROBINSON of Arkansas, and by unanimous consent,
Coolidge
Hebert
Pope
Wheeler
Copeland
Johnson
Reed
White
the further reading was dispensed with and the Journal
Costigan
Kean
Reyholds
was approved.
Mr. HEBERT. I desire to announce the necessary absence
MESSAGE FROM THE HOUSE
of my colleague the senior Senator from Rhode Island [Mr.
A message from the House of Representatives, by Mr.
METCALF], and also the Senator from South Dakota [Mr.
Haltigan, one of its clerks, announced that the House had
NORBECK] and the Senator from Vermont [Mr. GIBSON].
passed a bill (H.R. 6131) to raise revenue by taxing certain
I also wish to announce that the senior Senator from
intoxicating liquors, and for other purposes, in which it
Idaho [Mr. BORAH] is unavoidably absent.
requested the concurrence of the Senate.
Mr. LEWIS. I wish to announce that my colleague the
MESSAGES FROM THE PRESIDENT-APPROVAL OF BILLS
junior Senator from Illinois [Mr. DIETERICH] is necessarily
Messages in writing from the President of the United
detained from the Senate.
States were communicated to the Senate by Mr. Latta, one
The VICE PRESIDENT. Ninety-one Senators have an-
of his secretaries, who also announced that on June 16,
swered to their names. A quorum is present.
1933, the President had approved and signed the following
TAXATION OF ALCOHOLIC LIQUORS-HOUSE BILL REFERRED
acts:
The VICE PRESIDENT. The Chair lays before the Sen-
S. 813. An act to remove the limitation on the filling of
ate a bill coming over from the House of Representatives,
the vacancy in the office of senior circuit judge for the
which will be read by title.
ninth judicial circuit;
The bill (H.R. 6131) to raise revenue by taxing certain
S. 815. An act to provide for the survival of certain actions
intoxicating liquors, and for other purposes, was read twice
in favor of the United States;
by its title.
169
170
CONGRESSIONAL RECORD-SENATE
JANUARY 8
Mr. ROBINSON of Arkansas. I invite the attention of
REPORT OF COMMISSIONERS OF DISTRICT OF COLUMBIA
the Senator from Mississippi [Mr. HARRISON] to the bill com-
The VICE PRESIDENT laid before the Senate a letter
ing over from the House, so that it may be referred.
from the president of the Board of Commissioners of the
Mr. HARRISON. I move that the bill be referred to the
District of Columbia, transmitting, pursuant to law, a re-
Committee on Finance.
port of the official operations of the government of the Dis-
The VICE PRESIDENT. Without objection, it is SO or-
trict of Columbia for the fiscal year ended June 30, 1933,
dered.
which, with the accompanying report, was referred to the
NOBEL PEACE PRIZE
Committee on the District of Columbia.
The VICE PRESIDENT laid before the Senate a letter
REPORT OF EMPLOYEES' COMPENSATION COMMISSION
from the Acting Secretary of State, transmitting copy of a
circular issued by the Nobel Committee of the Norwegian
The VICE PRESIDENT laid before the Senate a letter
Parliament furnishing information regarding the proposals
from the Chairman of the United States Employees' Com-
of candidates for the Nobel peace prize for the year 1934,
pensation Commission, transmitting, pursuant to law, the
which, with the accompanying paper, was referred to the
report of the operations of the Commission for the fiscal
Committee on Foreign Relations.
year ended June 30, 1933, which, with the accompanying
report, was referred to the Committee on Education and
REPORT OF SURGEON GENERAL OF THE PUBLIC HEALTH SERVICE
Labor.
The VICE PRESIDENT laid before the Senate a letter
from the Acting Secretary of the Treasury, transmitting,
PROPOSED CONSTITUTION AMENDMENT RELATIVE TO CHILD LABOR
pursuant to law, the report of the Surgeon General of the
The VICE PRESIDENT laid before the Senate a letter
Public Health Service for the fiscal year ended June 30,
from the Governor of West Virginia, transmitting preamble
1933, which was referred to the Committee on Finance.
and joint resolution of the Legislature of West Virginia rati-
ANNUAL REPORT OF THE ATTORNEY GENERAL
fying the so-called child-labor amendment to the Con-
The VICE PRESIDENT laid before the Senate a letter
stitution, which, with the accompanying papers, was ordered
to lie on the table, as follows:
from the Attorney General, transmitting, pursuant to law,
the annual report of the Department of Justice for the fiscal
STATE OF WEST VIRGINIA,
EXECUTIVE DEPARTMENT,
year ended June 30, 1933, which, with the accompanying
Charleston, January 5, 1934.
report, was referred to the Committee on the Judiciary.
Hon. JOHN NANCE GARNER,
Vice President of the United States,
SUITS ARISING UNDER PUBLIC VESSEL ACT
Washington, D.C.
The VICE PRESIDENT laid before the Senate a letter
SIR: Permit me to transmit herewith preamble and joint resolu-
from the Attorney General, transmitting, pursuant to law,
tion of the Legislature of West Virginia ratifying the child-labor
amendment to the Constitution of the United States.
a list of suits arising under the Public Vessel Act of March
Very respectfully,
3, 1925, in which final decrees were entered, exclusive of
H. G. KUMP,
cases on appeal, which was referred to the Committee on
Governor of West Virginia.
the Judiciary.
House Joint Resolution No. 1 (by Mr. Beacom) ratifying the child-
labor amendment to the Constitution of the United States
SUITS IN ADMIRALTY AGAINST THE UNITED STATES
Whereas the Sixty-eighth Congress of the United States of Amer-
The VICE PRESIDENT laid before the Senate a letter
ica, at its first session, in both Houses, by a constitutional majority
from the Attorney General, transmitting, pursuant to law,
of two thirds thereof, has made the following proposition to amend
the Constitution of the United States of America, in the following
a list of suits arising under the act of March 9, 1920, au-
words, to wit:
thorizing suits against the United States in admiralty in-
" Joint resolution proposing an amendment to the Constitution
volving merchant vessels, in which final decrees were entered
of the United States
against the United States, exclusive of cases on appeal,
" Resolved by the Senate and House of Representatives of the
which was referred to the Committee on the Judiciary.
United States of America in Congress assembled (two thirds of
each House concurring therein), That the following amendment
ANNUAL REPORT OF ADMINISTRATOR OF VETERANS' AFFAIRS
to the Constitution be, and is hereby, proposed to the States, to
The VICE PRESIDENT laid before the Senate a letter
become valid as a part of the Constitution when ratified by the
legislatures of the several States, as provided by the Constitution:
from the Administrator of Veterans' Affairs, transmitting,
"ARTICLE XX
pursuant to law, a report of activities of the Veterans'
SECTION 1. The Congress shall have power to limit, regulate,
Administration for the fiscal year ended June 30, 1933,
and prohibit the labor of persons under 18 years of age.
which, with the accompanying report, was referred to the
SEC. 2. The power of the several States is unimpaired by this
Committee on Finance.
article, except that the operation of State laws shall be suspended
to the extent necessary to give effect to legislation enacted by the
COMPENSATION OF OFFICIALS OF FEDERAL RESERVE AND MEMBER
Congress Therefore be it
BANKS
Resolved by the Legislature of West Virginia, That the said pro-
The VICE PRESIDENT laid before the Senate a letter
posed amendment to the Constitution of the United States of
America be, and the same is hereby, ratified; and be it further
from the secretary of the Federal Reserve Board, transmit-
Resolved, That certified copies of the foregoing preamble and
ting in response to Senate Resolution 75, agreed to May 29,
resolutions be forwarded by the Governor of the State of West
1933, a report showing the compensation of, executive officers
Virginia to the President of the United States, the Secretary of
State of the United States, the President of the Senate of the
and directors of Federal Reserve and member banks, which,
United States, and Speaker of the House of Representatives of the
with the accompanying report, was referred to the Com-
United States.
mittee on Banking and Currency.
We, Charles Lively, clerk of the Senate of West Virginia, and
John S. Hall, clerk of the House of Delegates of West Virginia,
DEVELOPMENT OF OIL AND GAS POOLS
hereby certify that the foregoing resolution was regularly adopted
The VICE PRESIDENT laid before the Senate a letter
by the Legislature of West Virginia on December 12, 1933.
from the Secretary of the Interior, transmitting, pursuant
CHARLES LIVELY,
Clerk of the Senate.
to law, information concerning the approval of unit plans
JNO. S. HALL,
of development and operation for Pitchfork oil field, Park
Clerk of the House of Delegates.
County, Wyo., which, with the accompanying report, was
PETITIONS AND MEMORIALS
referred to the Committee on Public Lands and Surveys.
The VICE PRESIDENT laid before the Senate the follow-
ANNUAL REPORT OF SHIPPING BOARD
ing concurrent resolution of the Legislature of the State of
The VICE PRESIDENT laid before the Senate a letter
Minnesota, which was referred to the Committee on Agri-
from the chairman, advisory committee, United States Ship-
culture and Forestry:
ping Board Bureau, transmitting, pursuant to law, the
Concurrent resolution memorializing Congress to enact legislation
Seventeenth Annual Report of the United States Shipping
designed to secure fair prices for agricultural products for the
Board and the United States Shipping Board Merchant
producer
Fleet Corporation for the fiscal year ended June 30, 1933,
Whereas the farmers of the Nation are becoming impoverished
which, with the accompanying report, was referred to the
because the prices received on the public markets for the com-
modities raised by them are less than the cost of producing such
Committee on Commerce.
commodities; and
1934
CONGRESSIONAL RECORD-SENATE
171
Whereas the impoverishment of the farmers of the Nation will
to abandon their respective gold standards; and all gold wherever
ultimately impoverish all the people of the Nation; and
found or suspected has been retired from circulation, locked in
Whereas it is imperative that legislation be enacted by Congress
vaults, or otherwise made useless to mankind, either for use as
designed to secure fair prices for agricultural products to the pro-
money or for anything else; and
ducers thereof; and
Whereas silver, the only other metal whichever did or even can
Whereas dairy products constitute a substantial portion of the
function as money of redemption, is doing the work of the world
total products produced by the farmers of the Nation: Now, there-
under every imaginable handicap that monometalism can create,
fore, be it
and it is apparent that it cannot succeed unless and until it is
Resolved by the House of Representatives of the State of Minne-
restored to its ancient and time-honored position of unlimited
sota (the Senate concurring), That the Congress of the United
partnership with gold in the world currencies and exchanges; and
States be, and it is hereby, urgently petitioned to speedily enact
Whereas this restoration is the only possible alternative to a
legislation which will:
widespread and uncontrollable inflation of currency by paper
(1) Provide for the immediate removal of enough butter and
issues of so-called money no greater calamity than which can
cheese from the public markets so as to absorb the present sur-
befall the people of any country: Now, therefor, be it
plus, and distribute this surplus to people for relief use.
Resolved by the Senate of the Twenty-ninth General Assembly
(2) Bring about the immediate restriction of the production of
of the State of Colorado in extraordinary session assembled (the
dairy substitutes, through a quota system or otherwise, and bring
House of Representatives concurring herein), That the Congress
about the prevention of the importation of foreign oils and fats
of the United States be urged and requested at its session begin-
and dairy products so long as dairy prices in this country are
ning on Wednesday, January 3, 1934, or as soon as possible there-
below the cost of production.
after, to take up, put through its necessary stages, and enact
(3) Remedy the overproduction of dairy products by the appro-
Senate 70 (by Senator WHEELER), restoring to the people of the
priation of $100,000,000 for the eradication of cattle infected with
United States the bimetallic monetary system of coinage as estab-
tuberculosis or Bang's disease.
lished by the act of Congress of 1832, and repealed by the act of
(4) Provide for repayment of the moneys advanced by the Fed-
Congress of 1873.
eral Government for such eradication of infected cattle through a
Resolved further, That copies of this resolution be certified to
5 percent ad valorem tax, to be paid by the processor, as distin-
our Senators and Members of Congress, and to the President of
guished from the present plan of collecting processing taxes from
the United States, with the request that they and each of them
processors and handlers, which are ultimately paid by and are a
do all in their power individually and collectively to effectuate its
burden upon the producer.
object and purposes.
(5) Provide an effective plan to prevent lands withdrawn from
Resolved further, That copies of this resolution duly certified be
cotton, wheat, tobacco, corn, and other crop production under the
forwarded to the Secretary of the United States Senate and the
Federal Government's plan of acreage reduction from being utilized
for the pasturage and/or feed and/or forage crops for the increase
Clerk of the House of Representatives, respectively, at Washington,
with the request that they be read into the journals of the said
of dairy production.
bodies.
(6) Restrict the importation of all agricultural commodities
We hereby certify that the above memorial is a correct and true
that compete with the products of our domestic producer; be it
copy of original Senate Joint Memorial No. 5.
further
Resolved, That a duly authenticated copy of this resolution be
RAY H. TALBOT,
President of the Senate.
presented to the President of the United States, to the presiding
officers of the Senate and the House of Representatives of the
WM. B. MCLEAN,
Congress of the United States, and to each of the Senators and
Secretary of the Senate.
Representatives from the State of Minnesota in the Congress of
The VICE PRESIDENT also laid before the Senate a joint
the United States.
CHAS. MUNN,
resolution of the Legislature of the State of Wisconsin, ex-
Speaker of the House of Representatives.
pressing confidence in the monetary policy of the President
K. K. SOLBERG,
of the United States and assuring him of Wisconsin's con-
President of the Senate.
tinued whole-hearted support of his program for national
Passed the house of representatives the 28th day of December
recovery, which was ordered to lie on the table.
1933.
HARRY L. ALLEN,
(See joint resolution printed in full when presented today
Chief Clerk, House of Representatives.
by Mr. DUFFY.)
Passed the senate the 28th day of December 1933.
The VICE PRESIDENT also laid before the Senate a joint
G. H. SPAETH,
resolution of the Legislature of the State of Wisconsin,
Secretary of the Senate.
Approved January 4, 1934.
urging the President of the United States and the national
FLOYD B. OLSON,
administration to take immediate action on the dairy situa-
Governor of the State of Minnesota.
tion, which was referred to the Committee on Agriculture
Filed January 5, 1934.
MIKE HOLM,
and Forestry.
Secretary of State of Minnesota.
(See joint resolution printed in full when presented today
The VICE PRESIDENT also laid before the Senate the
by Mr. DUFFY.)
following senate joint memorial of the Legislature of the
The VICE PRESIDENT also laid before the Senate a joint
State of Colorado, which was referred to the Committee on
resolution of the Legislature of the State of Wisconsin,
Banking and Currency:
memorializing Congress to enact legislation providing for a
Senate Joint Memorial 5 (by Senators Herrin, Knous, Sanders,
minimum living wage in the various industries, which was
Peiffer, Ehrhart, Smith, Hill, Rumbaugh, Houston, Nelson,
referred to the Committee on Education and Labor.
Manly, Unfug, Affolter)
(See joint resolution printed in full when presented today
Whereas the bimetallic monetary system at the ratio of 15 parts
by Mr. DUFFY.)
of silver to 1 part of gold was in 1792, through the mutual direc-
The VICE PRESIDENT also laid before the Senate resolu-
tion and with the approval of Thomas Jefferson and Alexander
Hamilton, established by act of Congress to consist of gold and
tions adopted by the Minnesota Junior Taxpayers Associa-
silver coins of the weights and dimensions as in said act de-
tion, Minneapolis, Minn., favoring the appropriation of
scribed; and
$1,000,000,000 annually for the next 3 years to maintain es-
Whereas said act functioned without amendment from 1792 to
1832, when the ratio was changed to 16 parts of silver to 1 of
sential educational services for the children of the Nation,
gold, and so remained thereafter until 1873, the system function-
which were referred to the Committee on Education and
ing without complaint or need of change meanwhile; and
Labor.
Whereas the Congress of that year without warning deprived
He also laid before the Senate resolutions adopted by the
silver of its function of legal tender beyond the sum and amount
of $5 in any one transaction; and
Common Council of the City of Manitowoc, Wis., favoring
Whereas since said time the Congress has confined the use of
the passage of legislation to extend the period of operation
silver to subsidiary silver coinage, and to the purchase of limited
of the F.C.W.A. beyond the period already fixed, indefinitely,
amounts only for standard dollars, with the net effect that silver
is degraded to the status of a commodity; and
and until the recovery of industry and the economic welfare
Whereas the people have suffered the shrinking of values of all
of the people render its operation no longer necessary, which
forms of property, save interest-drawing securities and obligations,
was referred to the Committee on Finance.
and other contracts expressly payable in gold or its equivalent,
He also laid before the Senate petitions of Miss Mildred
thus largely increasing the burden of their liabilities; and
Whereas the world's stock of gold never was sufficient to bear
Baker and Mrs. Ella C. Baker, of Greenwood; of Blanton P.
the burden of liability imposed upon it since it became the single
Theus and sundry other citizens of Arcadia; and J. B. Her-
standard of all values, which burden has persistently and swiftly
old and other citizens of Shreveport, all in the State of
grown ever since the bimetallic standard was limited and then
Louisiana, praying for the expulsion of Hon. HUEY P. LONG
abandoned; and
Whereas the nations of the world or most of them have been
and Hon. JOHN H. OVERTON from the Senate, which were
forced by their crushing burdens of debt and consequent taxation
referred to the Committee on the Judiciary.
172
CONGRESSIONAL RECORD-SENATE
JANUARY 8
Mr. DUFFY presented the following joint resolution of the
STATE OF WISCONSIN.
Legislature of the State of Wisconsin, which was ordered to
Joint resolution memorializing the Congress of the United States
to enact legislation providing for a minimum living wage in
lie on the table:
the various industries
STATE OF WISCONSIN.
Whereas the economic depression has taught this Nation and
Joint resolution expressing confidence in the monetary policy of
its people the necessity of maintaining the purchasing power
the President of the United States and assuring him of Wiscon-
of the mass of the American people; and
sin's continued whole-hearted support of his program for
Whereas the profits in industry from 1922 to 1929 increased by
national recovery
91 percent, while for the same period wages in industry increased
Whereas President Roosevelt is a firm believer in a sound cur-
but 19 percent; and
rency and has definitely committed himself to that principle both
Whereas unless this condition is remedied any recovery accom-
before and since taking his office; and
plished would be only temporary and would be followed by
Whereas the national administration's monetary policies are an
another depression; and
Whereas the wide spread during this period of supposed pros-
integral and indispensable part of the program for national recov-
perity between wage increase and profit increase in industry indi-
ery, and were developed and put into operation only after the most
cates the necessity for a minimum living wage for industrial
careful and thorough study as one of the means of attaining
workers: Now, therefore be it
recovery; and
Resolved by the senate (the assembly concurring), That this
Whereas the principal objective of such monetary policies so far
legislature respectfully memorializes the Congress of the United
has been and now is to so manage the currency as to secure a rise
States to enact legislation providing for a minimum living wage
in commodity prices up to the average price level of 1926 and,
of at least $100 per month for workers in the various industries
upon attaining this, to stabilize the dollar and bring about a per-
who are the heads of families or have dependents, to insure and
manently stable currency fair alike to creditors, debtors, and
stabilize the purchasing power in our industrial population; be
wage earners; and
it further
Whereas a monetary policy involving uncontrolled inflation
Resolved, That properly attested copies of this resolution be
should be discouraged and avoided in view of the disastrous ex-
sent to both Houses of the Congress of the United States and to
periences of some of the European countries which adopted that
each Wisconsin Member thereof.
policy; and
C. T. YOUNG,
Whereas the great majority of the American people are whole-
Speaker of the Assembly.
heartedly behind the President in his recovery program, because
JOHN J. SLOCUM,
they believe that the President is making and will continue to
Chief Clerk of the Assembly.
make every reasonable effort to completely lift and permanently
THOMAS J. O'MALLEY,
keep this Nation out of economic depression: Now, therefore, be it
President of the Senate.
R. A. COBBAN,
Resolved by the assembly (the senate concurring), That this
Chief Clerk of the Senate.
legislature expresses its confidence in and support of President
Roosevelt's monetary policy as a part of his program for national
Mr. BARBOUR presented a resolution adopted by the
recovery and assures the President that this State and its people
will continue to cooperate whole-heartedly with the national
mayor and Common Council of the City of North Wildwood,
administration in that program; be it further
N.J., protesting against the proposed transfer of the Coast
Resolved, That properly attested copies of this resolution be
Guard from the Treasury Department to the Navy Depart-
sent to President Roosevelt, to both Houses of the Congress of the
ment, which was referred to the Committee on Commerce.
United States, and to each Wisconsin Member thereof.
Mr. LA FOLLETTE presented a joint resolution of the
THOMAS J. O'MALLEY,
President of the Senate.
Legislature of the State of Wisconsin, expressing confidence
R. A. COBBAN,
in the monetary policy of the President of the United
Chief Clerk of the Senate.
States and assuring him of Wisconsin's continued whole-
CORNELIUS YOUNG,
hearted support of his program for national recovery, which
Speaker of the Assembly.
JOHN J. SLOCUM,
was ordered to lie on the table.
Chief Clerk of the Assembly.
(See joint resolution printed in full when presented today
Mr. DUFFY also presented the following joint resolution
by Mr. DUFFY.)
Mr. LA FOLLETTE also presented a joint resolution of the
of the Legislature of the State of Wisconsin, which was re-
Legislature of the State of Wisconsin, urging the President
ferred to the Committee on Agriculture and Forestry:
of the United States and the national administration to take
STATE OF WISCONSIN.
immediate action on the dairy situation, which was referred
Joint resolution urging the President of the United States and
to the Committee on Agriculture and Forestry.
the national administration to take immediate action on the
(See joint resolution printed in full when presented today
dairy situation
by Mr. DUFFY.)
Whereas Wisconsin is the leading dairy State in the Union; and
Mr. LA FOLLETTE also presented a joint resolution of-the
Whereas economic recovery in Wisconsin is dependent upon the
rehabilitation of the dairy industry; and
Legislature of the State of Wisconsin, memorializing Con-
Whereas in the program for national recovery the dairy industry
gress to enact legislation providing for a minimum living
has not been benefited as have other industries: Now, therefore,
wage in the various industries, which was referred to the
be it
Committee on Education and Labor.
Resolved by the assembly (the senate concurring), That the
legislature respectfully requests the President of the United
(See joint resolution printed in full when presented today
States and the national administration to take immediate action
by Mr. DUFFY.)
for the rehabilitation of the dairy industry in Wisconsin and
RELIEF FROM AUTOMOBILE TAXATION
other States by establishing an emergency dairy department or
directing the Federal Farm Board to give immediate attention to
Mr. VANDENBERG. Mr. President, the Detroit Board of
the dairy problems or removing the obstacles that prevent the
Commerce has prepared a very persuasive and very con-
dairy marketing corporation from carrying out the purposes for
which it is created or taking such other emergency action as will
clusive memorial praying for relief from the accumulated
have for its object the stabilization and rehabilitation of the
burdens of indefensible automobile taxation. I ask that
dairy industry; be it further
it be printed in the RECORD and appropriately referred.
Resolved, That properly attested copies of this resolution be
There being no objection, the memorial was referred to
sent to the President of the United States, to Hon. Henry A.
the Committee on Finance and ordered to be printed in the
Wallace, Secretary of Agriculture, and to each Representative and
United States Senator from Wisconsin in the Congress of the
RECORD, as follows:
United States.
STATEMENT AND RESOLUTION BY DETROIT BOARD OF COMMERCE ADVO-
THOMAS J. O'MALLEY,
CATING RELIEF FROM AUTOMOBILE TAXATION AND ENCOURAGEMENT
President of the Senate.
OF MOTOR-CAR OWNERSHIP
R. A. COBBAN,
The committee on national legislation of the Detroit Board of
Chief Clerk of the Senate.
Commerce has studied the effect of taxation on industrial recovery
C. T. YOUNG,
and has developed the following facts in respect to the automobile
Speaker of the Assembly.
industry:
JOHN J. SLOCUM,
1. On January 1, 1933, there were 24,136,879 motor vehicles regis-
Chief Clerk of the Assembly.
tered in the United States. Of these, 7,297,000, or 30.23 percent,
Mr. DUFFY also presented the following joint resolution
were over 7 years old.
2. The replacement of these old cars would furnish a much
of the Legislature of the State of Wisconsin, which was
desired stimulus to industrial activity throughout the country
referred to the Committee on Education and Labor:
because—
1934
CONGRESSIONAL RECORD-SENATE
173
(a) Of the total United States consumption of several basic
likewise, for the general welfare of the Nation, which, in the final
commodities, the automobile industry consumed the following
analysis is one cohesive economic unit.
percentages during 1932: Cotton, 7 percent; tin, 10 percent; copper,
Respectfully submitted.
11 percent; lumber, 14 percent; mohair. 14 percent; steel, 17 per-
E. S. EVANS,
cent; aluminum, 23 percent; nickel, 28 percent; lead, 33 percent;
Chairman National Legislative Committee.
plate glass, 43 percent; unholstery leather, 53 percent; malleable
iron, 54 percent; rubber, 80 percent; gasoline, 85 percent.
Adopted by board of directors, Detroit Board of Commerce,
January 4, 1934.
(b) Raw material for automobile construction comes from every
HARVEY CAMPBELL
State in the Union. During 1932 the automobile industry and
Vice President-Secretary.
allied industries shipped 2,543,833 carloads by rail, and paid a
freight bill of $325,000,000. This tonnage was 34 percent of rail
PROTEST AGAINST RECOGNITION OF SOVIET UNION
shipments of manufactured goods, and 14 percent of the total rail
tonnage hauled by American railroads.
Mr. SCHALL. Mr. President, I ask leave to print in the
(c) In 1932 there were 3,026,000 workers engaged either full
RECORD a memorial signed by 35 residents of the county of
or part time in the manufacture, sale, operation, and maintenance
Houston, Minn., and ask that it may be referred to the
of motor vehic'es. In addition there were 875,000 engaged in
Foreign Relations Committee.
the production and transportation of raw materials used in the
construction of motor vehicles. A total of 3,901,800 depended
There being no objection, the memorial was referred to
upon the automobile industry for a livelihood. This number is
the Committee on Foreign Relations and ordered to be
approximately 10 percent of the total number normally employed
printed in the RECORD, without the signatures after the first
in all industries in the United States.
one, as follows:
3. The trend of motor-car ownership is downward. In 1932
HOUSTON, MINN, December 1933.
registrations in the United States decreased 6½ percent under
To Hon. THOMAS D. SCHALL,
1931, while registrations outside the United States increased
Senator from Minnesota, Washington, D.C.
2½ percent.
4. In 1929 there were produced in this country 5,359,000 pas-
DEAR SENATOR: We, the undersigned citizens of the United States
senger cars and trucks, the wholesale value of which was $3,418,-
of America and residents of the county of Houston, State of
148,206. In 1932 the production was only 1,370,678 vehicles,
Minnesota, beg to make known to you how we stand behind you
valued at $755,927,760.
and what are our own convictions and feelings, as you will see
5. The decrease in production of motor vehicles and hence the
from the following statement. We also beg that you would, if in
increase in unemployment of workers depending upon the auto-
any way you can, make known and voice them in protest, and that
mobile industry is largely due to the following factors in the
you would do anything in your power to help make the situation
taxation systems of the Federal Government and the several
sound, and not dangerous, to the welfare of our beloved America.
States:
Thus we sincerely implore of you to do.
(a) The ratio of State motor-vehicle special taxes to total State
Statement: We exceedingly regret that His Excellency the Presi-
tax receipts range from 14.2 percent in Delaware to 75.2 percent in
dent, Mr. Roosevelt, has seen fit to recognize the Union of Socialist
Florida. The average is 38 percent.
Soviet Republics as a fellow government; and we believe that in
(b) The Federal Government singles out a few so-called "lux-
so doing he has made for the American people "A covenant with
death and an agreement with hell."
ury industries for special taxation treatment. The automobile
industry is included, notwithstanding the fact that it produces a
We, as honest, God-fearing, patriotic, true American citizens,
necessity and the only means of conveyance in most urban com-
loving righteousness and soundness in doctrine and practice, are
munities and many rural districts. The automobile industry pays
opposed to this recognition of Soviet Russia because:
the following special excise taxes to the Federal Government:
1. They are avowedly atheistic.
2. They are avowedly opposed to our American system and pur-
Passenger cars, 3 percent; trucks, 2 percent; parts and acces-
pose to supplant it with their own Bolshevistic one, regardless of
sories, 2 percent; gasoline, 1 cent per gallon; lubricating oil,
what their representative has said to the contrary.
4 cents per gallon; tires, 2½ cents per pound; inner tubes, 4 cents
3. They are dangerous, their word, covenant, promises mere
per pound.
scraps.
(c) The aggregate of special Federal, State, and municipal auto-
4. We believe in a Christian democracy as given and assured
mobile taxes has increased 300 "percent since 1919, and in 1932
us by our fathers-Washington, Jefferson, and Lincoln-and there-
amounted to $1,076,021,597, or 10.7 percent of all Federal, State,
fore we regret the present trend and turning to an unsound
and municipal taxes collected. The Federal Government collected
liberalism and communism in our beloved Nation and Govern-
$470,678,282, or 43.7 percent of all such special taxes. This amount
ment that ought to support those fundamentals-" Of the people,
was $320,093,837 greater than the wholesale value of the 1932
by the people, etc."-the democratic individualism and the tradi-
production of the entire industry.
tional American ideals as taught by such of our fathers as those
(d) The average life of a motor vehicle is 7½ years. At the
just mentioned.
present rate of taxation it will, during its life, pay more in taxes
Respectfully yours,
than the manufacturer receives on the initial sale. The elimina-
SIGFRID B. MOSBY (and others).
tion of recurring taxes on gasoline, oil, and tires would encourage
greater use of automobiles and consequently broaden the replace-
EMPLOYMENT OF ALIENS IN THE UNITED STATES
ment market.
Mr. SCHALL. Mr. President, I ask to have printed in the
(e) In States having a gasoline tax of 2 cents the registration of
motor vehicles in 1932 was 4.5 percent less than in 1931. In
RECORD and referred to the Committee on Immigration a
States having a 6-cent gas tax the decrease in registration was 13.5
letter from the United Organization of the United States,
percent, exactly three times as great. Taxation is a dominant
which is self-explanatory.
deterrent to motor-car ownership.
There being no objection, the letter was ordered to be
RESOLUTION
printed in the RECORD and referred to the Committee on
Whereas the declaration of policy as stated in title I, section 1
Immigration, as follows:
of the Industrial Recovery Act is as follows:
*
*
It
is
hereby declared to be the policy of Congress to remove obstruc-
EAST CHICAGO, IND., January 3, 1934.
tions to the free flow of interstate and foreign commerce which
Hon. THOMAS D. SCHALL,
tend to diminish the amount thereof;
to
United States Senate, Washington, D.C.
eliminate
un-
fair competitive practices, to promote the fullest possible utiliza-
HONORABLE SIR: You have done wonders during the past session
tion of the present productive capacity of industries, to avoid
of Congress to the millions suffering from the past depression,
undue restriction of production, to increase the con-
but there is one grave question you have overlooked, and in-
sumption of industrial and agricultural products by increasing
dustries are taking advantage of this oversight by putting men to
purchasing power, to reduce and relieve unemployment
work and laying off the aliens, and they feel real patriotic about
and
it. What are you going to do about this new unemployment situa-
Whereas the automobile industry, one of the Nation's largest
tion that is bound to arise from such patriotism?
employers of labor and purchasers of raw material, is so over-
Of the 18,000 aliens in Lake County alone, I find upon inves-
whelmed by the burden of special and discriminatory taxation
tigation that 72 percent own their own homes and pay taxes,
that the objects and purposes of the Industrial Recovery Act are
80 percent have paid personal or poll tax (this tax in most States
apt to be seriously impaired: Therefore be it
is the price paid to vote or the privilege to vote), 38 percent own
automobiles, 59 percent own radios, 100 percent enjoy and in-
Resolved, That Congress should be impressed with the need for
dulge in hard taxable liquors. They are all religious and do much
legislation relieving the automobile owner of this unfair burden of
toward the building of churches and schools; are all well covered
Federal taxation, the removal of which would create a vastly in-
by life insurance, and subscribe to all community chests and other
creased market for automobiles and the many other industries
relief organizations.
producing and transporting raw material used for manufacturing
There are some 2 millions in the United States at the present
motor vehicles, thereby creating increased employment and in-
time. We have no system of control over them, they come and
creased purchasing power which would be reflected in all industry
go as they please, enjoying all and every privilege a citizen does,
and commerce throughout the Nation; and be it further
except the right to vote, and in some cases even that.
Resolved, That Congress should take appropriate action toward
Ninety-two percent of these aliens come from the central coun-
relief without delay, thereby encouraging the several States to do
tries of Europe. They have long learned that the most important
174
CONGRESSIONAL RECORD-SENATE
JANUARY 8
part of their life's work is to possess a home. To accomplish
SEC. 3. As a special emergency for a period of 1 year from day
this, they had to spend their every minute at hard work for
of the passage of this bill, any alien who has been in the United
the lowest wages to be had, to pay for their homes. They could
States for 5 years or more, who has paid taxes, either personal or
not spare the time to learn the language, the health and well-
real, or those who have owned property and lost it due to depres-
being of their families was ever important above all.
sion, or owns property at the present time, is allowed to apply for
These aliens have done more for the success of our Nation
full citizen's rights without fees or costs by filing of intention
than have the so-called "Americans" from the English-speaking
showing a record of the places by residence since entering the
countries. The American banks, without these economic people
United States, showing date of entry, also place and date of entry,
who know how to save, would have been out of existence long
record of property, stocks or bonds owned, conditions of same, at
before the depression, had these people been like the so-called
least one tax receipt, record of all organizations belonged to, rec-
English-speaking people who have never learned the value of 2
ord of insurance, names, ages, and places of births of all children
dollar. During the depression, had the banks stayed open, you
and dependents, names of business people dealt with, signatures
would not have a single one of them on relief, even at that a
of two persons who will furnish sufficient proof of facts of alien's
very small percent of them went on relief. They are proud and
qualification to become a citizen.
hate charity.
SEC. 4. Any alien who has been in the United States of Amer-
There are in the United States people who become citizens by
ica 5 years or more and does not own property or never paid
birth, who, if asked the simplest question that is asked of these
taxes must pay a fee of $3. Requirements same as section 3.
aliens, could not answer; yet they are allowed to vote. Are those
SEC. 5. When the year has passed from date of passage of this
questions what make a citizen, or is it their actual worth to the
bill all these aliens who have been in the United States of America
country by deed or action that is the real requirement?
5 years or more and did not apply when told within the years
Then, the worst menace due to this foolishness is the fact
forfeit all rights to be a resident of the United States of America
that all these aliens forced out of work will lose their homes, their
and is subject to deportation. Any employer giving employment
life's earning, everything that is dear to them. They will naturally
to an alien who has been in the United States of America over 5
turn to radicalism of the worst type. Relief organizations could
years and did not apply for citizenship is liable to a fine of $1,000.
not take care of them; the taxes caused by relief are SO great
now that they cannot be paid.
REPORT OF THE COMMITTEE ON AGRICULTURE AND FORESTRY
What are we going to do with the children of these aliens who
Mr. SMITH, from the Committee on Agriculture and For-
are American-born children if the parents are forced from the
right to earn a living for them? Are you going to send American-
estry, to which was referred the bill (S. 1975) to provide
born children with their parents to other countries to be raised?
for loans to farmers for crop production and harvesting
Who was it who kept the home fires burning and helped capital
during the year 1934, and for other purposes, reported it
earn enormous sums during the war? Does the American Gov-
with an amendment and submitted a report (no. 148)
ernment only want them for a gain and, when the gain is not
to be had, then force them out? That sounds like a golddigger;
thereon.
everything is well as long as they have a dime; after stripping
BILLS INTRODUCED
them of everything they ever had, then throw them out. I do
not think that is what our Government wants; we preach a doc-
Bills were introduced, read the first time, and, by unani-
trine of fairness, yet we do not live up to it.
mous consent, the second time, and referred as follows:
Think this over seriously; it is vital to the success of the coun-
By Mr. TRAMMELL:
try. If you want to consider selfish motive, you can have the
A bill (S. 2065) to provide for increasing the capital of
2,000,000 votes, also another 5,000,000 who are interested to see
that these people get justice, also the 2,000,000 children who shall
the Home Owners' Loan Corporation for the purpose™ of
become of age the coming year.
making cash advances to home owners, and for other pur-
Allow me to hear from you regarding this; also, would like to
poses; to the Committee on Banking and Currency.
have your influence to aid me in getting the privilege to explain
my bill, as attached, to the Congress personally, through our
By Mr. COSTIGAN:
Congressman WILLIAM T. SCHULTE'S permission.
A bill (S. 2066) to include sugar beets and sugarcane
Respectfully,
as basic agricultural commodities under the Agricultural
THE UNITED ORGANIZATION OF THE UNITED STATES,
THOS. KOCHIS, President.
Adjustment Act; to the Committee on Agriculture and For-
estry.
P.S.-We are organizing the aliens all over the United States of
America in this movement, and we must have your support if you
By Mr. OVERTON:
want ours, who are in sympathy with the aliens.
A bill (S. 2067) authorizing payment to the Red River,
(The bill is to be known as the Kochis emergency naturalization
Atchafalaya, and Bayou Boeuf Levee District for acquiring
bill"
certain levee rights of way for flood control work; to the
Be it enacted, etc., That any alien entering the United States of
Committee on Commerce.
America, on declaring his intention of staying, the sufficient
By Mr. DUFFY:
proof of intention and a passbook to be given to the entering
containing a recent photo fingerprint with description; also show-
A bill (S. 2068) to increase the maximum limit of loans
ing any marks or scars, if any; name of ship on which the person
by Federal land banks in certain cases; to the Committee
arrived, with the date of arrival; on leaving port of entry destina-
on Banking and Currency.
tion must be shown in passbook. On arriving at destination stamp
By Mr. McKELLAR:
of city clerk must be stamped in passbook, also record taken of
said alien, with address; if person goes to another city, said per-
A bill (S. 2069) granting an increase of pension to Julius
son must record his intention with city clerk and destination to
Buxbaum (with accompanying papers); to the Committee
be shown. Every time there is a change of address it must be
on Pensions.
recorded with city clerk, also in the passbook. Must have at least
A bill (S. 2070) to amend subdivision no. 2 of paragraph
$500 insurance at all times.
When 5 years have passed, alien must either become naturalized
(a) of section 203 of the National Industrial Recovery Act;
or leave the country. During the 5 years the alien is subject to
and
all the taxes required but is not allowed to own property only in
A bill (S. 2071) to amend subdivision no. 2 of paragraph
trust until after the 5 years. The fees and cost of naturalization
(a) of section 203 of the National Industrial Recovery Act;
shall be $25.
Requirements for naturalization: Must furnish a clean record
to the Committee on Banking and Currency.
of reference by two reputable people who have known said person
A bill (S. 2072) for the relief of Dr. Thomas J. W. Brown;
for 5 years, with a complete record of places and kind of employ-
to the Committee on Civil Service.
ment during the 5 years; record of all organizations and clubs
said person has belonged to, with signatures of president and secre-
A bill (S. 2073) for the relief of Thomas Green;
tary; must attend à class teaching the principles of the United
A bill (S. 2074) for the relief of James R. Mansfield; and
States of America Government at least 60 days, showing credits
A bill (S. 2075) for the relief of John J. Tatum; to the
not less than 75 percent; and dependents.
SEC. 2. Any alien in the United States at the time of the
Committee on Claims.
passing of this bill less than 5 years must register with the city
By Mr. ASHURST:
clerk in the city of residence; obtain a passbook with present or
A bill (S. 2076) for the relief of George Stoll and the heirs
recent picture, description, and fingerprints, showing also the
of Charles P. Regan, Marshall Turley, Edward Lannigan,
name of ship and date of arrival, also port of entry; must record
all changes of address with city clerk, and must also have at least
James Manley, and John Hunter (with accompanying
$500 insurance. Failure to register 60 days after the passing of
papers) to the Committee on Claims:
this bill, said person shall be immediately deported. Any person
(By request.) A bill (S. 2077) regulating procedure in
harboring said person without passbook is fined $100; any
industry employing an alien without a passbook is fined $500 for
criminal cases in the courts of the United States;
each offense. When an alien has been in the United States of
(By request.) A bill (S. 2078) to provide, in case of the
America 5 years from date of entry, he must become naturalized
disability of senior circuit judges, for the exercise of their
within a year; if not, is subject for immediate deportation. Fees
and costs to be $25. Naturalization requirements same as
powers and the performance of their duties by the other
section 1.
circuit judges;
1934
CONGRESSIONAL RECORD-SENATE
175
(By request.) A bill (S. 2079) to amend the act providing
maintenance of institutions for religious instruction and
for the annual conference of senior circuit judges;
worship, and for other purposes; to the Committee on Bank-
(By request.) A bill (S. 2080) to provide punishment for
ing and Currency.
killing or assaulting Federal officers;
By Mr. NORRIS:
(By request.) A bill (S. 2081) to amend a part of section 1
A bill (S. 2104) for the relief of George W. Baker; to the
of the act of May 27, 1908, chapter 200, as amended (U.S.C.,
Committee on Military Affairs.
title 28, sec 592)
A bill (S. 2105) granting a pension to Frank Swartz; to
(By request.) A bill (S. 2082) to amend the first sentence
the Committee on Pensions.
of section 8 of the act of May 28, 1896, chapter 252, relative
By Mr. PITTMAN:
to the appointment of assistant United States attorneys;
A bill (S. 2106) authorizing the granting of public lands
and
to States and political subdivisions for airport purposes; to
(By request.) A bill (S. 2083) to amend section 126 of the
the Committee on Public Lands and Surveys.
Judicial Code, as amended; to the Committee on the
By Mr. TYDINGS:
Judiciary.
A bill (S. 2107) to repeal Federal liquor prohibition laws
By Mr. JOHNSON:
to the extent they are in force in Puerto Rico; to the Com-
A bill (S. 2084) granting and confirming to the East Bay
mittee on Territories and Insular Affairs.
Municipal District, a municipal utility district of the State
By Mr. STEIWER:
of California and a body corporate and politic of said State,
A bill (S. 2108) relating to loans by the Reconstruction
and a political subdivision thereof, certain lands, and for
Finance Corporation in connection with agricultural-im-
other purposes; to the Committee on Public Lands and
provement projects; to the Committee on Agriculture and
Surveys.
Forestry.
A bill (S. 2085) to amend the Emergency Relief and Con-
A bill (S. 2109) granting a pension to Alfred L. Chapman;
struction Act of 1932, and for other purposes; to the Com-
A bill (S. 2110) granting a pension to Susan F. Cates; and
mittee on Banking and Currency.
A bill (S. 2111) granting a pension to Robert A. Master-
By Mr. McGILL:
son (with accompanying papers); to the Committee on
A bill (S. 2086) granting a pension to Fred B. Johnson;
Pensions.
to the Committee on Pensions.
By Mr. BLACK:
A bill (S. 2087) for the relief of Leo Glenn Cress; and
A bill (S. 2112) for the relief of W. H. Key and the estate
A bill (S. 2088) for the relief of Merle (Mearl) Arthur
of James R. Wilson; to the Committee on Claims.
Lewis; to the Committee on Naval Affairs.
By Mr. SHIPSTEAD:
By Mr. KING:
A bill (S. 2113) for the relief of John W. Sweger; to the
A bill (S. 2089) to amend the Code of Laws for the Dis-
Committee on Claims.
trict of Columbia, approved March 3, 1901, as amended
A bill (S. 2114) to authorize the sale and conveyance by
(D.C. Code, title 5, ch. 3), relating to building and loan
the Department of the Interior to C. M. Hanson, of Bricelyn,
associations; to the Committee on the District of Columbia.
Minn., or his heirs, successors, or assigns, of approximately
A bill (S. 2090) authorizing and directing the Secretary
one and three-quarters acres of lot 2, section 33, township
of the Interior to exchange Government lands for State
43 north, range 27 west, in the county of Mille Lacs, Minn.;
lands; to the Committee on Public Lands and Surveys.
to the Committee on Indian Affairs.
By Mr. THOMAS of Oklahoma:
FOUR-POINT PROGRAM OF AMERICAN LEGION
A bill (S. 2091) for the relief of Guy Swan; to the Com-
mittee on Naval Affairs.
Mr. REED. Mr. President, in connection with a bill
A bill (S. 2092) granting a pension to Eva Diven; to
which I shall introduce I ask unanimous consent to proceed
for 2 minutes.
the Committee on Pensions.
A bill (S. 2093) for the relief of Walter P. Hagan;
The VICE PRESIDENT. Is there objection to the request
A bill (S. 2094) for the relief of Thomas L. Cook; and
of the Senator from Pennsylvania? The Chair hears none.
A bill (S. 2095) for the relief of William G. Phelps; to the
Mr. REED. At the request of the national officials of
Committee on Military Affairs.
the American Legion I am introducing a bill to carry out
By Mr. HAYDEN:
the so-called 4-point program of the Legion. I think
A bill (S. 2096) equalizing annual leave of employees of the
it is appropriate to say that at no time since the Legion was
Department of Agriculture stationed outside the continental
organized has it shown such a moderation in its requests,
limits of the United States; to the Committee on Agricul-
such an appreciation of the needs of the country, in spite
ture and Forestry.
of the fact that the compensation of disabled veterans under
A bill (S. 2097) authorizing the issuing of certificates of
the Economy Act has been very drastically reduced and in
arrival to persons born in the United States who are now
spite of the fact that the reduced compensation they are
aliens; to the Committee on Immigration.
receiving has also diminished in purchasing power through
A bill (S. 2098) to authorize the sale of land on the
the changes in the value of our money.
Camp McDowell Indian Reservation to the city of Phoenix,
The VICE PRESIDENT. The bill will be received and ap-
propriately referred.
Ariz., for use in connection with its water-supply develop-
ment, and for other purposes; to the Committee on Indian
The bill (S. 2115) to amend Public, No. 2, Seventy-third
Affairs.
Congress, entitled "An act to maintain the credit of the
A bill (S. 2099) for the relief of Julius McKindry Hender-
United States Government, and Public, No. 78, Seventy-
son; and
third Congress, entitled "An act making appropriations for
A bill (S. 2100) to provide for the commemoration of the
the Executive offices and sundry independent executive bu-
Battle of Big Dry Wash, in the State of Arizona; to the
reaus, boards, commissions, and offices, for the fiscal year
Committee on Military Affairs.
ending June 30, 1934, and for other purposes", was read
A bill (S. 2101) to prohibit the sending of unsolicited mer-
twice by its title and referred to the Committee on Finance.
chandise through the mails; and
TREATMENT OF THE JEWS IN GERMANY
A bill (S. 2102) to amend the act entitled "An act to pro-
Mr. TYDINGS. I send to the desk a resolution dealing
vide that the United States shall aid the States in the con-
with the persecution of the Jews in another country. I
struction of rural post roads, and for other purposes, ap-
will not read the resolution now, nor ask that it be read,
proved July 11, 1916, as amended and supplemented, and
but I ask that it be referred to the Committee on Foreign
for other purposes; to the Committee on Post Offices and
Relations, with the request to the chairman that it be re-
Post Roads.
ported as soon as feasible.
By Mr. CAPPER:
The VICE PRESIDENT. Is there objection?
A bill (S. 2103) to authorize the Reconstruction Finance
Mr. McNARY. I did not understand the nature of the
Corporation to make loans to aid in the operation and
request of the Senator from Maryland.
176
CONGRESSIONAL RECORD-SENATE
JANUARY 8
Mr. TYDINGS. I have simply asked that the resolution
Great Britain and Japan, in each of which national maritime
submitted by me be referred to the Committee on Foreign
boards have been organized jointly by shipowners and seamen for
the express purpose of securing cooperation and fostering the sea
Relations, with the request that the chairman report it back
power and the maritime supremacy of the respective nations; and
to the Senate as soon as feasible.
Whereas cooperation and the promotion of harmonious relations
There being no objection, the resolution (S.Res. 120) was
between American shipowners and American seamen could be ob-
tained by means of an American national maritime board with
referred to the Committee on Foreign Relations, as follows:
the following objects and purposes:
Whereas the present Government of the German Reich has de-
(a) The development of seamanship, skill, and efficiency.
prived certain groups of its citizens of many of their civil and
(b) The prevention and adjustment of differences between ship-
political rights and has imposed upon them restrictions, pains,
owners and seamen of all ratings.
and penalties harsh and severe in nature; and
(c) The establishment, revision, and maintenance of standard
Whereas among the groups so discriminated against by said
rates of wages and approved conditions of employment in the
Government are the 600,000 or more Jewish citizens of the Reich;
merchant marine.
and
(d) The selection and, when possible, the operation of employ-
Whereas it is manifest that, as regards the greater number of
ment offices for seamen in cooperation with the United States De-
said Jewish citizens of the Reich, the actual causes for the dis-
partments of Commerce and Labor: Therefore be it
criminations against them are their religious beliefs or professions
Resolved, That the Secretary of the Department of Commerce,
and their racial origin, neither of which is a ground reasonably
the Secretary of the Department of Labor, and the Postmaster
affecting their rights and privileges as citizens of a modern state;
General be, and they are hereby, requested to confer upon the
advisability of initiating an American national maritime board,
and
Whereas the United States has on numerous occasions interceded
as herein outlined, and for that purpose to call into conference
on behalf of oppressed minorities in other lands, especially when
such representatives of shipowners and seamen as may, in their
their oppression proceeded from or was linked with religious
judgment, be helpful in the formation of such an organization,
and to report their proceedings and their conclusions to the
intolerance; and
Whereas on at least nine historic occasions, beginning in the
Senate.
year 1840 and continuing down to the year 1919, such interces-
The VICE PRESIDENT. Is there objection to the pres-
sions have been made by the United States on behalf of Jewish
citizens of states other than the United States, oppressed or perse-
ent consideration of the resolution?
cuted by their own governments or peoples; and
Mr. ROBINSON of Arkansas. Mr. President, I think the
Whereas this honorable record of the United States has been the
resolution had better go over in order to afford Senators an
subject of painstaking research on the part of Mr. Max J. Kohler,
opportunity to become more familiar with its provisions.
of New York, who has published its results in a pamphlet entitled
The United States and German Jewish Persecutions ", in which
Mr. JOHNSON. I am willing, if the Senator desires that
pamphlet, on pages 34 to 42, inclusive, there appears a full account
it shall go over.
of each of these intercessions, showing that for nearly 100 years
The VICE PRESIDENT. The resolution will go over
the traditional policy of the United States has been to take official
and diplomatic cognizance of such invasions of human rights; and
under the rule.
Whereas by express treaty the German Reich stands pledged to
INFORMATION REGARDING PIGS AND HOGS
the United States to accord to its nationals who belong to
racial, religious, or linguistic minorities"
the same
Mr. CAREY. I send to the desk a resolution and ask
treatment of security in law and in fact as the other nationals".
unanimous consent for its immediate consideration.
(See Kohler, The United States and German Jewish Persecutions,
The VICE PRESIDENT. The resolution will be read for
supra, pp. 42 to 48 inclusive) Now, therefore, be it
Resolved, That the President is requested to communicate to
the information of the Senate.
the Government of the German Reich an unequivocal statement
The legislative clerk read the resolution (S.Res. 123), as
of the profound feelings of surprise and pain experienced by the
follows:
people of the United States upon learning of the discriminations
and oppressions imposed by the Reich upon its Jewish citizens;
Resolved, That the Secretary of Agriculture be, and he is hereby,
and be it further
requested to send to the Senate a statement containing the follow-
Resolved, That the President is requested in such communica-
ing facts:
tion to express the earnest hope of the people of the United
1. The total number of pigs and hogs purchased by the Govern-
States that the German Reich will speedily alter its policy, restore
ment between the dates of August 23, 1933, and October 7, 1933,
to its Jewish nationals the civil and political rights of which they
both inclusive; the total live weight of the same; and the total
have been deprived, and undo so far as may be the wrongs that
dollars paid.
have been done them.
2. The total pounds (live weight) of such pigs and hogs which
were processed for the account of the Government.
INFORMATION RELATIVE TO PROCESSING TAXES
3. The total pounds (live weight) of such pigs and hogs which
were destroyed upon order of the Government, together with the
Mr. VANDENBERG. I send to the desk a Senate resolu-
number of head and average live weight of the same; how the
tion and ask for its immediate consideration.
carcasses of the animals which were destroyed but not processed
The VICE PRESIDENT. The resolution will be read for
were disposed of; and what was the total cost of such destruction.
4. The number of pounds of edible dressed products processed
the information of the Senate.
and accounted for by the processors to the Government; the
The legislative clerk read the resolution (S.Res. 121), as
disposition made of such processed products, as well as the amount
follows:
now on hand for distribution.
5. What was the average weekly price paid for live hogs on the
Resolved, That the Secretary of Agriculture is hereby requested
Chicago, St. Louis, Kansas City, Sioux City, St. Paul, Denver,
to send to the Senate a statement concerning so-called process-
Portland, Oreg., and Fort Worth markets during the 4 weeks pre-
ing taxes" collected up to December 31, 1933, giving, first, the
amount of such taxes collected up to December 31, 1933, classified
ceding the commencement of the Government pig-hog buying
campaign; the average weekly price, exclusive of those purchased
both as to commodities and States in which tax collections orig-
by the Government during the time the Government was in the
inated; second, the amounts of disbursements from these funds
markets buying as well as the average weekly price for each week
for the same period similarly classified; and third, the cost of
subsequent to the conclusion of the aforesaid pig-hog buying
collecting and disbursing these funds and administering this tax
campaign. In the opinion of the Secretary of Agriculture, what
system.
caused the sharp declines between October 18 and November 3;
The VICE PRESIDENT. Is there objection to the pres-
the advances for a short period, and the further sharp declines
ent consideration of the resolution?
the latter part of November and during December.
There being no objection, the resolution was agreed to.
Mr. ROBINSON of Arkansas. Mr. President, it is as-
AMERICAN NATIONAL MARITIME BOARD
sumed that the principal part of the resolution is directed
toward the procurement of information which is probably
Mr. JOHNSON. I submit a resolution and ask that it be
available or may be readily compiled in the Department.
read, and, if there be no objection, I ask for its present con-
It will not impose any cost to obtain the information, as I
sideration.
understand.
The VICE PRESIDENT. The resolution will be read for
Mr. CAREY. I think that is true.
the information of the Senate.
Mr. ROBINSON of Arkansas. There is an opinion called
The Chief Clerk read the resolution (S.Res. 122), as
for from the Secretary, in addition to the information.
follows:
Mr. CAREY. Yes.
Whereas the development and successful operation of an
The VICE PRESIDENT. Is there objection to the present
American merchant marine is, to a very large degree, based upon
intelligent cooperation and good will between managers of oper-
consideration of the resolution?
ation and the personnel aboard the ships; and
Mr. ROBINSON of Arkansas. I have no objection.
Whereas the value of such cooperation and desirability of
Mr. KING. Mr. President, I wish the Senator from Wyo-
establishing and maintaining such harmonious relations has been
fully recognized by two of the world's great maritime nations,
ming would add to the resolution a request to report the
1934
CONGRESSIONAL RECORD-SENATE
177
gross amount of receipts by the Government, if any, from
trol work against insects and tree diseases on such a comprehen-
the processing tax or derived from the sale or disposition
sive scale. They assert that insects, pests, and tree and plant
diseases rank with forest fires as a menace to the Nation's forest
of any of the pigs and hogs referred to in the resolution.
properties.
Mr. VANDENBERG. Mr. President, will the Senator
Among achievements which stand out in the completed program
from Utah yield?
is the forest protection work done. This includes the construc-
tion of trails through the forests and parks over which fire-
Mr. KING. Certainly.
fighting units can operate speedily in event of fire, the construc-
Mr. VANDENBERG. May I say to the Senator from Utah
tion of fire breaks useful in preventing the spread of fires that
that the Senate has previously adopted a resolution which
dévelop, the removal of fire hazards such as highly inflammable
will produce the information the Senator now seeks.
dead trees and underbrush, the construction of lookout towers,
observatories, fire guard cabins, shelter for fire-protection equip-
Mr. KING. Then I shall not press my request.
ment, the laying of field telephone wires to connect lookout
The VICE PRESIDENT. Is there objection to the present
houses with points of mobilization for fire-fighting units, control
consideration of the resolution? Without objection, the
operations against tree diseases, and campaigns against tree-
attacking insects and rodents. The white-pine blister rust, one
resolution is agreed to.
of the most serious menaces to the Nation's 20,000,000 acres of
ASSISTANT CLERK TO COMMITTEE ON TERRITORIES AND INSULAR
valuable white pine, represented one of the major objectives of
AFFAIRS
the forest army. Major items performed under this general
Mr. TYDINGS submitted the following resolution (S.Res.
heading included:
1. Removal of inflammable fire hazards from 129,962 acres.
124), which was referred to the Committee to Audit and
2. Construction of 10,058 miles of truck trails.
Control the Contingent Expenses of the Senate:
3. Construction of 5,058 miles of telephone lines.
4. Construction of 3,917 miles of fire breaks.
Resolved, That the Committee on Territories and Insular Affairs
5. Clearing 6,629 miles of roadsides as fire-prevention move.
hereby is authorized to employ an assistant clerk, to be paid from
6. Construction of 1,700 lookout towers, lookout houses, and
the contingent fund of the Senate at the rate of $2,000 per annum
tool houses.
until otherwise provided by law.
7. Completion of insect pest control over 800,160 acres.
ACTIVITIES OF THE CIVILIAN CONSERVATION CORPS
8. Completion of tree and plant disease control operations on
1,675,911 acres.
Mr. WALSH. Mr. President, the President of the United
9. Rodent-control campaigns completed on 3,566,918 acres.
States has transmitted to me, as Chairman of the Committee
Work performed under the general title of forest-stand im-
on Education and Labor, a letter addressed to him by the
provement included thinning forest areas to improve the stand
Director of Emergency Conservation Work in the nature of a
of valuable trees, tree planting and construction of needed build-
ings and bridges. The general aim of this forest-stand improve-
report on the work done by the Civilian Conservation Corps.
ment was to put the stand of timber into such condition that
I ask that the communication be printed in the CONGRES-
the desirable trees will make faster growth and the stand as a
SIONAL RECORD for the information of the Senate and re-
whole will produce material of better quality. Under this gen-
eral heading, work projects completed included:
ferred to the Committee on Education and Labor.
1. Forest-stand improvement on 205,159 acres.
There being no objection, the letter, with the accompany-
2. Planting of trees upon 25,750 acres and the partial comple-
ing data, was referred to the Committee on Education and
tion of tree planting on an additional 54,115 acres.
Labor and ordered to be printed in the RECORD, as follows:
3. The completion of 67,784 man-days of work at nurseries.
-4. The construction of 4,299 bridges, 347 headquarters buildings,
EMERGENCY CONSERVATION WORK,
308 tool houses, and 47 barns.
OFFICE OF THE DIRECTOR,
Erosion control, the third major classification of work projects,
The PRESIDENT,
Washington, D.C., December 22, 1933.
developed into one of the most important phases of the Civilian
The White House, Washington, D.C.
Conservation Corps program. Major work performed in this field
SIR: In submitting this first report dealing solely with the field
included:
activities of the Civilian Conservation Corps I wish to call atten-
1. The completion of erosion control on 388,034 acres and the
tion to the remarkably large amount of forestry and soil-erosion
partial completion of control work on an additional 151,555 acres.
work that has been accomplished by the 300,000 members of the
2. The construction of 68,450 erosion-control dams to regulate
forest army during the first 6-month enrollment period, ending
stream flow and to check the run off from heavy rains.
September 30, 1933. This report, recording in cold figures of miles,
3. Revegetation work was completed on 21,534 acres.
acres, and man-days the achievements of the first period, is com-
The soil-erosion and soil-saving programs have proved of great
piled from the official work records kept at the 1,522 camps where
importance to all the cooperating services in this work. The Na-
men of the Civilian Conservation Corps and the Indian conserva-
tional Forest Service, with its 162,000,000 acres of national forest
tion camps lived and worked during the summer and fall.
land, the National Park Service, the Indian Service, controlling
The records show that this army of forest workers, made up
several million acres of Indian reservations, as well as State and
mostly of young men still in or just emerging from their teens, has
private officials on whose land the conservation workers have op-
made "substantial progress in rehabilitating and protecting the
erated, all agree that the work done to save topsoil has been ex-
600,000,000 acres of forested lands in this country. It is a matter
tremely valuable. Forest Service officials refer to this type of work
of pride to the Nation and to all who had any part in this re-
as perhaps as important as any done. National park officials refer
forestation work to know that these jobless men from the cities
to the erosion-control program as one of the most important un-
and rural communities have labored efficiently and conscientiously
dertaken by the Civilian Conservation Corps.
not only to conserve the Nation's natural resources but to accom-
Mr. F. A. Silcox, forester, of the Forest Service, who has had
plish work which would justify their employment in the forests
general supervision over the work of more than 1,200 camps, states
as a part of the President's general relief and national recovery
that the work performed by the Civilian Conservation Corps
program.
youths and veterans has accomplished much needful and valuable
Expert foresters of the Department of Agriculture and the De-
work in the national forests and has served to bring the American
partment of the Interior, the men who have supervised the forest
public closer to forestry itself and to conservation generally. He
work, have advised me that the Civilian Conservation Corps
points out that fire losses were more than cut in half in national
enrollees, large percentages of them green boys wholly untrained
forests during the first 10 months of the current year and attrib-
in physical work and completely lacking in previous knowledge
utes much of this saving to the Civilian Conservation Corps boys.
of the work being done and the necessary manual labor involved,
In this connection Forest Service officials stated that less than
have in a few short months demonstrated a capacity for doing
150,000 acres of national forest land were burned over this year
first-rate forestry work which compares favorably with that of
prior to November 1, compared with an annual average for the
local or older men who have spent their lifetime in the forests.
5 preceding years of 512,783 acres.
The reports show that a tremendous amount of constructive
Arno B. Cammerer, Director of the Office of National Parks,
work that will pay big dividends to future generations has been
Buildings, and Reservations, joins with Forester Silcox in prais-
progressing and is now going forward in every part of the Nation's
ing the fire-prevention activities of the men. He advised me
vast timbered domain. While more than 60 types of work are
recently that their presence in the parks this past summer and
being performed by the forestry army, the great bulk of the field
fall was largely responsible for a reduction of the forest-fire loss
activities of the corps have been directed toward fireproofing the
in the parks of 37 percent over the same period for 1932. A tre-
forests to the greatest possible extent, the protection of the forests
mendous amount of conservation and general improvement work
from tree-attacking insects and diseases which annually kill mil-
also was accomplished in National and State parks.
lions of valuable trees, the prevention of soil erosion, which Gov-
Improvements admittedly required for years but impossible of
ernment experts state annually causes losses running into hun-
entire achievement for 10 or 20 years in the national park areas,
dreds of millions of dollars, and the improvement of park areas
and probably not that soon in State park areas, have been accom-
for recreational use.
plished or are in the process of accomplishment. As a result, gen-
The figures on work completed show that today, for the first
erations to come will derive social benefits from our great recrea-
time in the Nation's history, massed man power has been made
tional areas almost undreamed of when these reservations were
available for forest protection and is now at work on an unprece-
established. These opportunities for social service have been
dented scale on projects which should reduce the huge annual
enhanced many times.
losses of past years caused by fire, disease, rodents, and insects.
The removal of brush and dead timber from National and State
Forest experts state that 1933 represents the first year in which
park areas not only reduced the fire hazard but enhanced the
the Forest Service has had such an opportunity to conduct con-
scenic value of the parks. Trails were extended, roadsides im-
No. 4-2
178
CONGRESSIONAL RECORD-SENATE
JANUARY 8
proved through planting and erosion control, camp grounds for
Emergency conservation work, all services, Sept. 1933
the private motorists laid out, and fireplaces and othe recrea-
tional facilities for the motorist provided. In many States land
REPORT OF PERSONNEL, ETC.
which was of little value in its then existing condition was con-
verted into valuable State park property. In many States, State
Days worked
Average daily
park-development programs were pushed ahead for 5 or 10 years.
Personnel¹
numbers em-
Much valuable soil-erosion and soil-saving work was accom-
(camp days)
ployed in-
plished by the Indians on Indian reservations. John Collier, Com-
N um-
Service
ber of
missioner of Indian Affairs, has stated that the capital value of
camps
the Indian lands has been increased $2 for every dollar spent on
the Indian conservation work. The Indian work program included
Total
Aver-
En-
Super-
Field
Total
rolled
Camp
age
visors
work
duties
men
construction of soil-erosion dams, revegetation of lands, construc-
tion of hundreds of reservoirs to hold water for livestock, forest
improvement and protection work, and the conduct of campaigns
United States
1,528
27,718
18.1
262,678
14,850
247,828
182,082
62,913
against rodents such as prairie dogs.
Forest Service
250
23,909
19.1
213,956
12,150
201,806
147,429
53,002
In addition to the major projects undertaken, much work was
NationalParkServ-
done in the way of restoring historical landmarks, improving fa-
ice
175
3,084
17.6
30,543
1,826
28,717
20,852
7,211
Bureau of Indian
cilities for protecting and increasing wild life, halting the destruc-
Affairs
71
129
1.8
13,867
798
13,069
10,614
804
ton effect of coal fires on the public lands in the vicinity of Gil-
Office of the Chiefof
lette, Wyo., improving national resources such as forage and range,
Engineers
28
521
18.6
23,588
34
3,554
2,706
1,745
and clearing roadsides and trails.
Bureau of Biological
Work projects were carried on on Federal, State, and privately
Survey
3
55
18.3
518
29
489
313
96
owned lands. Five projects, utilizing 200 men each, were carried
General Land Office
1
20
20.0
206
13
193
168
25
Outlying posses-
on Puerto Rico, and one camp was located in Alaska. All told,
sions
6
118
19.7
977
65
912
864
51
1,528 camps were in operation during the first 6 months' period.
Very truly yours,
1 Excluding Army personnel.
ROBERT FECHNER, Director.
2 Excluding camp operating personnel.
Emergency conservation work, all services
REPORT OF PROGRESS OF WORK FOR SEPT. 1933-NEW CONSTRUCTION
Clas-
Per-
During month
sifica-
Camps
tion
Type of job, State and outlying possessions
Unit of work
Amount con-
Total com-
cent
Previously
report-
templated
pleted
reported as
Not yet
no.
ing
com-
pleted
completed
Partially
started
Completed
completed
1
Telephone lines
919
Miles
18,602.0
5,058.0
27.2
3,218.0
1,832.4
1,564.4
11,979.6
2
Fire breaks
566
do
36,006.2
3,917.2
10.9
2,309.7
1,607.5
1,653.5
30,435.5
3
Removal of fire hazards
601
Acres
2,162,628.5
129,963.2
6.0
71,715.1
58,248.1
21,527.2
2,011,138.1
4
Roadside clearing (fire prevention)
679
Miles
17,163.3
4,663.1
27.2
3,301.1
1,352.0
454.7
12,045.5
5
Trailside clearing (fire prevention)
221
do
10,161.3
1,966.1
19.3
976.2
989.9
111.3
8,083.9
6
Forest stand improvement
553
Acres
1,736,562.8
205,159.5
11.8
134,677.2
70,482.3
17,502.0
1,513,901.3
7(a)
Roads (truck trails)
1,271
Miles
39,243.7
10,058.1
25.6
6,438.0
3,620.1
3,967.9
25,217.7
7(b)
Roads, minor (maintenance only)
79
do
1,489.1
445.0
29.9
211.0
234.0
36.3
1,007.8
7(c)
Roads, highway (maintenance only)
45
do
251.8
99.6
39.6
.64.8
34.8
31.5
120.7
8(a)
Trails (horse)
409
do
7,510.7
1,745.6
23.2
1,141.4
604.2
194.2
5,570.9
8(b)
Trails (foot)
296
do
4,495.9
824.6
18.3
576.7
247.9
170.6
3,500.7
9
Lookout houses
297
Number
578.2
104.0
18.0
39.0
65.0
103.
370.9
10
Lookout towers
339
do
3,598.0
1,158.0
32.2
1,034.0
124.0
95.0
2,345.0
11
Fighting forest fires
766
Man-days
547,513.7
400,913.2
73.2
293,442.0
107,471.2
2,498.0
144,102.5
12
Dwellings (headquarters)
224
Number
618.
347.4
56.
298.3
39.1
144.8
126.3
13
Dwellings (temporary stations)
220
do
571.0
308.0
53.9
253.0
55.
105. 5
157. 5
14
Toolhouses (headquarters)
471
do
567
405.0
71.4
338.0
67.0
84.0
78.0
15
Toolhouses (temporary stations)
289
do
615.0
438.0
71.2
352.0
86.0
56.0
121.0
16
Barns (headquarters)
149
do
188 0
47.0
25.0
29.0
18.0
68.7
72.3
17
Barns (temporary stations)
93
do
153.0
65.0
42.5
43.0
22.0
31.0
57.0
18
Office (headquarters)
321
do
402.0
268.0
66.7
228.0
40.0
75.0
59.0
19
Office (temporary stations)
155
do
184.0
138.0
75.0
127.0
11.0
18.0
28. 0
20
Other structures (headquarters)
469
do
1,356.3
714.0
52.6
552.3
161.7
304.9
337.4
21
Other structures (temporary stations)
450
do
2,061.0
1,081.2
52.5
788.0
293.2
223.8
756.0
22
Fences (headquarters)
230
Miles
1,352.2
977.1
72.3
128.7
848.4
56.6
318.5
23
Fences (temporary stations)
145
do
326.7
169.4
51.9
43.1
126.3
25.2
132.1
24 (a)
Water systems
296
Feet
195,323.6
38,847.6
19.9
37,006.1
1,841.5
21,774.0
134,702.0
25
Water (temporary stations)
212
Number
1,756.1
1,457.9
83.0
1,415.0
42.9
45.0
253.2
26
Planting
337
Acres
184,717.5
25,750.6
13.9
12,992.1
12,758.5
54,115.8
104,851.1
27
Nursery
112
Man-days
126,992.0
67,784.0
53.4
56,613.5
11.170.5
609.0
58,599.0
28
Seed collection
163
Bushels
34,005.3
7,293.8
21.
1,444.5
5,849.3
40.7
26,670.8
28 (a)
Hardwood seed
4
Pounds
1,355.0
855.0
63. 1
555.0
300.0
500.0
29 (a)
Insect-pest control (tree)
191
Acres
2,677,329.2
728,659.5
27.2
455,707.8
272,951.7
3,729.0
1,944,940.7
29(b)
Insect-pest control (other)
13
do
39,503.0
71,494.0
79.9
71,158.0
336.0
1.0
18,008.0
30
Tree- and plant-disease control
350
do
4,010,630.7
1,675,911.9
41.8
1,211,207.1
464,704.8
57,533.1
2,277,185.7
31
Boundary survey and marking
341
Miles
20,337.2
7,485.6
36.8
5,169.9
2,315.7
664.6
12,187.0
31(a)
Base line
1
do
50.0
25.0
50.0
25.0
25.0
32
Erosion control
293
Acres
4,644,968.8
388,034.9
8.4
234,425.9
153,609.0
151,555.0
4,105,378.9
32(a)
Dams
88
Number
685,635.0
68,540.0
10.0
39,854.0
28,686.0
1,580.0
615,515.0
32(b)
Erosion fences
1
Miles
20.0
1.3
6.5
1.3
.2
18.5
32(c)
Erosion control-bank protection
1
do
400.0
400.0
33(a)
Bridges, foot
181
Number
1,404.0
703.0
50.1
224.0
479 0
41.0
660.0
33(b)
Bridges, horse
77
do
524.0
214.0
40.8
157.0
57.0
18.0
292.0
33(c)
Bridges, vehicle
717
do
8,317.0
3,189.0
38.3
1,976.0
1,213.0
430.0
4,698.0
33(d)
Bridges, stock
89
do
509.0
193.0
37.9
106.0
87.0
80.0
236.0
34
Public camp ground buildings
209
do
1,030.0
234.0
22.7
178.0
56.0
122.1
673.9
35
Public camp ground clearing
625
Acres
21,235.1
9,175.3
43.2
6,302.3
2,873.0
922.3
11,137.5
36
Public camp ground latrines
485
Number
4,024.0
1,665.5
41.4
1,111.5
554.0
378.5
1,980.0
37(a)
Public camp ground water
374
Feet
27,702.0
6,365.6
23.0
3,750.5
2,615.1
453.4
20,883.0
38(a)
Public camp grounds waste disposal
359
do
45,946.0
12,356.0
26.9
11,009.0
1,347.0
1,272.0
32,316.0
39
Stream improvement
196
Miles
1,996.4
716.6
35.9
508.0
208.6
37.9
1,241.9
39(a)
Lake, pond, or beach improvement
9
Acres
1,023.5
604.0
59.0
578.5
25.5
64.
355.5
40
Dams for fish and birds
176
Number
2,482.0
1,053.6
42.4
898.3
155.3
58.0
1,370.4
41(a)
Range fences, wire (barb)
224
Miles
3,753.7
810.2
21.6
440.3
369.9
332.7
2,610.8
41(b)
Range fences, log
34
do
117.6
53.3
45.3
32.
20.9
21.9
42.4
41(c)
Range fences (stake and rider)
20
do
65.9
19.8
30.0
11.5
8.3
3.9
42.2
42
Driveways for livestock
74
do
673.0
161.6
24.0
103.4
58.2
6.4
505.0
43
Spring or well development for livestock
168
Number
2,126.0
461.0
21.7
264.0
197.0
105.5
1,559.5
44
Reservoirs (stock)
70
do
1,008.0
269.9
26.8
132.5
137.4
120.0
618.1
45
Eradication, poisonous plants
92
Acres
109,129.6
47,459.4
43.5
34,898.9
12,560.5
588.0
01,082.2
46
Corrals
151
Number
199.3
87.3
43.8
53.3
34.0
22.0
90.0
46(a)
Stock guards
1
do
1.0
1.0
47
Range revegetation
71
Acres
216,889.3
21,535.4
9.9
18,123.9
3,411.5
322.3
195,031.6
48
Rodent control
228
do
7,035,617.0
3,566,918.7
50.7
2,715,497.0
919,775.7
183,854.0
3,284,844.3
49(a)
Flood control (surveys and grades) lines
102
Linear feet
11,672,084.0
5,410,978.0
46.4
3,647,755.0
1,763,223.0
283,345.0
5,977,761.0
49(b)
Flood control, surveys (topographic)
78
Square yards
41,890,031.0
14,455,577.0
34.5
7,476,318.0
6,979,259.0
5,013,115.0
22,421,339.0
49(c)
Flood control, dam site clearing
72
do
1,737,405.0
307,080.0
17.7
236,335.4
70,741.0
6,900.0
1,423,425.0
1934
CONGRESSIONAL RECORD-SENATE
179
Emergency conservation work, all services-Continued
REPORT OF PROGRESS OF WORK FOR SEPT. 1933-NEW CONSTRUCTION
Clas-
Per-
During month
Camps
sifica-
Amount con-
Total com-
cent
Previously
Type of job, State and outlying possessions
report-
Unit of work
tion
templated
pleted
reported as
Not yet
com-
ing
pleted
completed
Partially
started
no.
Completed
completed
49(d)
Flood control, river bank clearing
63
cubic yards
2,308,081.0
356,476.5
15. 4
184,906.0
171,570.5
245,392.0
1,706,212.5
49(e)
Flood control, channel clearing
27
Linear yards
96,835.0
54,951.0
56.7
33,386.0
21,565.0
304.0
41,530.0
49(f)
Flood control, dams, earth fill
3
Cubic yards
3,301.0
2,452.0
74. 3
1,212.0
1,240.0
849.0
49(g)
Flood control, stripping of site
25
do
35,000.0
31,600.0
90. 3
10,000.0
21,600.0
3,400.0
49(h)
Dams, earth excavation
25
do
389,000.0
28,700.0
7.4
14,100.0
14,600.0
360,300.0
49(i)
Dams, rock excavation
25
do
45,000.0
3,780.0
8.4
450.0
3,330.0
41,220.0
49(j)
Dams, concrete
25
do
6,500.0
6,500.0
49(k)
Dams. rock fill
25
do
2,200.0
1,600.0
72.7
1,600.0
600.0
49(1)
Dams, steel
25
Pounds
540,000.0
540,000.0
49(m) Channel enlargement, earth excavation
3
Cubic yards
53,000.0
7,200.0
13.
5,500.0
1,700.0
45,800.0
49(n)
Channel enlargement. rock excavation
1
do
14,000.0
1,830.0
13.
310.0
1,520.0
12,170.0
49(o)
Reconstruction of existing dams, rock excavation
2
do
2,500.0
2,500.0
49(p)
Reconstruction of existing dams, earth excavation
2
do
250.0
250.0
49(r)
Reconstruction of existing dams, new concrete
2
do
700.0
700.0
49(s)
Reconstruction of existing dams, steel
2
Pounds
31,000.0
31,000.0
50
Landscaping
281
Acres
57,300.1
22,401.6
39.
15,701.0
6,700.6
3,982.0
30,916.5
51
Fire, presuppression
117
Man-days
56,560.4
42,874.1
75.8
30,328.0
12,546.1
2,631.3
11,055.0
52
Fire prevention (posting signs, etc.)
22
do
4,703.0
2,856.0
60.7
1,582.0
1,274.0
1,285.0
567.0
53
Other camp-ground facilities (benches, fireplaces)
146
Number
13,033.3
6,288.3
48. 2
3,710.0
2,578.3
2,099.0
4,646.0
53 (a)
Game and fish stocking
1
Days
10.0
10.0
53 (b)
Forage and game
1
Tons
10.0
10.0
54
Experimental plots
18
Number
124.0
53.
42.7
26.0
27.0
4.0
67.0
55
Timber, range, special use and claim surveys involv-
101
Acres
2,677,228.1
1,165,705.1
43.5
870,587.1
295,118.0
101,574.0
1,409,949.0
ing maps.
56
Elimination of useless range stock
2
Number
386.0
386.0
100.0
386.0
57
Stone guard rail
5
Miles
18.0
15.3
85.0
9.3
6.0
2.7
58
General clean-up
1
Acres
1,200.0
222.0
18. 5
82.00
140.0
585. 0
393.0
59
Auto parks, stone partitions
1
Number
1,155.0
155.0
100.0
155. 0
61
Fighting coal fires
1
Man-days
11,836.0
11,836.0
100. 0
7,028.0
4,808.0
62
Searching for missing persons
4
Days
202.0
202.0
100. 0
142.0
60.0
REPORT OF PROGRESS OF WORK FOR SEPTEMBER 1933 MAINTENANCE
1
Telephone lines
468
Miles
15,419.5
8,169.4
53.0
6,221.4
1,948.0
724.9
6,525.2
2
Fire breaks
74
do
3,237.3
920.2
28.4
658.8
261.4
242.5
2,075.6
3
Removal fire hazards
7
Acres
157.0
72.0
45.9
40.0
32.0
85.0
4
Roadside clearing (fire prevention)
45
Miles
2,018.7
865.6
42.9
576.4
289.2
24.7
1,128.4
5
Trailside clearing (fire prevention)
15
do
284.2
125.
44.0
61.6
63.5
19.4
148.7
6
Forest stand improvement
14
Acres
5,177.0
757 0
14.6
602.0
155.0
20.4
4,399.6
7(a)
Roads (truck trails)
444
Miles
14,538.7
8,113.8
55.8
6,711.9
1,401.9
950.7
5,474.2
7(b)
Roads, minor (maintenance only)
304
do
6,120.9
3,079.3
50.3
2,262.9
816.4
370.5
2,671.1
7(c)
Roads, highway (maintenance only)
85
do
1,396.0
1,016.7
72.8
853.5
163.2
117.4
261.9
8(a)
Trails (horse)
240
do
15,288.7
9,295.6
60.8
7,682.1
1,613.5
38.9
5,954.2
8(b)
Trails (foot)
S4
do
3,213.5
1,484.4
46.2
834.
650.3
96.7
1,632.4
9
Lookout houses
44
Number
60.0
17.6
29.3
9.0
8.6
9.4
33.0
10
Lookout towers
63
do
183.0
77.0
42.1
63.0
14.0
32.0
74.0
11
Fighting forest fires
14
Man-days
7,837.0
3,482.0
44.4
2,612.0
870.0
4,355.0
12
Dwellings (headquarters)
109
Number
163.0
81.0
50.0
53.0
28.0
46.0
36.0
13
Dwellings (temporary station)
75
do
116.0
55.3
47.7
25.3
30.0
28.0
32.7
14
Toolhouses (headquarters)
51
do
64.0
36.0
56.3
29.0
7.0
14.0
14.0
15
Toolhouses (temporary station)
23
do
35.0
25.0
71.4
23.0
2.0
6.0
4.0
16
Barns (headquarters)
55
do
66.0
38.0
57.6
25.0
13.0
12.0
16.0
17
Barns (temporary station)
19
do
24.0
8.0
33.3
3.0
5.0
1.0
15.0
18
Office (headquarters)
59
do
71.0
43.0
60 6
33.0
10.0
18.0
10.0
19
Office (temporary station)
11
do
12.0
8.0
66.7
8.0
3.0
1.0
20
Other structures (beadquarters)
62
do
191.0
113.0
59.2
67.0
46.0
24.0
54.0
21
Other structures (temporary station)
30
do
75.0
36.0
48.0
29.0
7.0
14.0
25.0
22
Fences (headquarters)
60
Miles
114.7
43.3
37.8
30.4
12.9
14.5
56.9
23
Fences (temporary station)
34
do
95.5
32.5
34.0
22.0
10.5
5.9
57.1
24(a)
Water systems
40
Feet
49.
22.0
44.9
18.0
4.0
10.0
17.0
25
Water (temporary station)
24 Number
49.0
11.0
22.4
10.0
1.0
12.0
26.0
26
Planting
11
Acres
1,664.1
150.1
9.0
140.1
10.0
2.0
1,512.0
27
Nursery
22
Man-days
27,592.0
15,601.5
56.5
10,370.0
4,979.5
358.0
11,632.5
29(a)
Insect pest control (tree)
6
Acres
106,390.0
26,523.0
24.9
13,866.0
12,657.0
1,600.0
78,267.0
30
Tree and plant disease control
5
do
6,213.5
3,564.0
57.4
2,385.0
1,179.0
2,649.0
31
Boundary survey and marking
23
Miles
962.5
251.5
26.1
162.7
88.8
12.8
698.2
32
Erosion control
9
Acres
36,420.0
8,576.0
23.5
889.0
7,687.0
2,020.0
25,824.0
32(a)
Dams
3
Number
352.0
167.0
47.4
25.0
142.0
185.0
33(a)
Bridges (foot)
9
do
32.0
17.0
53.1
9.0
8.0
15.0
33(b)
Bridges (horse)
11
do
30.0
25.0
83.3
20.0
5.0
5.0
33(c)
Bridges (vehicle)
124
do
1,216.0
449.5
37.0
325.0
124.5
30.0
736.5
33(d)
Bridges (stock)
6
do
77.0
10.0
13.0
7.0
3.0
67.0
34
Public camp-ground building
21
do
58.0
14.0
24.1
10.0
40
9.0
35.0
35
Public camp-ground clearing
51
Acres
968.0
535.5
55.3
346.0
189.5
37.0
395. 5
36
Public camp-ground latrines
48
Number
314.0
147.0
46.8
82.0
65.0
26.0
141 0
37(a)
Public camp-ground water
21
Feet
40.0
17.6
44.0
11.5
6.1
2.4
20.0
38(a)
Public camp-ground waste disposal
35
do
191.0
92.0
48.2
67.0
25.0
32.0
67.0
39
Stream improvement
5
Miles
23.7
2.2
9.3
1.6
6
1.0
20.5
40
Dams for birds and fish
11
Number
140. 0
8.0
5.7
4.0
4.0
1.0
131.0
41(a)
Range fences. wire (barb)
49
Miles
677.8
222 6
32.8
165.7
56.9
16.5
438.7
41(b)
Range fences, log
3
do
28.8
3.7
12.8
3.7
25.1
41(c)
Range fences, stake and rider
1
do
1.7
1.7
100.0
1.7
42
Driveways for livestock
9
do
275.6
190.1
69.0
183.0
7.1
85. 5
43
Spring or well devel for livestock
8
Number
31.0
8.0
25.8
6:0
2.0
1.0
22.0
44
Reservoir (stock water)
7
do
112.0
26.0
23.2
15.0
11.0
11.0
75.0
45
Eradication, poisonous plants
3
Acres
669.0
20.0
3.0
10.0
10.0
649.0
46
Corrals
9
Number
12.0
6.0
50.0
6.0
6.0
47
Range revegetation
3
Acres
7.0
7.0
100.0
3.0
4.0
48
Rodent control
1
do
2,000.0
2,000.0
49(c)
Flood control (dam-site clearing)
1
Square yards
15,364.0
15,364.0
100.0
10,891.0
4,473.0
49(e)
Flood control (channel clearing)
1
Linear yards
100.0
100.0
100.0
75.0
25.0
50
Landscaping
10
Acres
363.0
232.0
63.9
177.0
55.0
2.0
129 0
51
Fire presuppression
2
Man-days
1,540.3
1,540.0
100.0
1,126.0
414.0
.3
52
Fire prevention (posting signs, etc.)
2
do
193.0
6.0
3.1
6.0
187.0
53
Other camp-ground facilities
7
Number
116.0
46.0
39.7
38.0
8.0
70.0
54
Experimental plots
2
do
8.0
8.0
100.0
7.0
1.0
180
CONGRESSIONAL RECORD-SENATE
JANUARY 8
RADIO ADDRESS BY REPRESENTATIVE LEMKE, OF NORTH DAKOTA
Senators, it is very evident from these reproductions that
[Mr. FRAZIER asked and obtained leave to have printed in
this communication was prepared some weeks previous to its
the RECORD a radio address delivered on September 23, 1933,
date and through the selected agencies of power was laid
by Hon. WILLIAM LEMKE, a Representative from the State of
upon the table, ready for action. It was to be published
North Dakota, which appears in the Appendix.]
simultaneously in all parts of the United States, the object
of achieving a basis of comment, censure, and condemnation
SOVIET RECOGNITION-RADIO ADDRESS BY MATTHEW WOLL
of the administration in power.
[Mr. KING asked and obtained leave to have printed in the
Mr. President, ordinarily this honorable body would pay
RECORD a radio address on the subject of soviet recognition,
no heed in an official manner to communications addressed
delivered over the National Broadcasting Co. network on
by gentlemen of foreign lands either adverse to or in favor
December 2, 1933, by Matthew Woll, vice president of the
of an administration in power, and that would not be done
American Federation of Labor, under the auspices of the
in the case of this communication but for the fact that it is
American Alliance of the United States, which appears in
written with the object of impressing the American public
the Appendix.]
and influencing the American nature to adopt the premises
INFLATION
set forth and to endorse the conclusions reached.
[Mr. CLARK asked and obtained leave to have printed in
I dare say my eminent colleagues on both sides of this
the RECORD an article appearing in Scribner's Magazine
Chamber recall the name of this eminent writer, Mr. John
entitled Honest Inflation", by Edward Tuck, founder of
Maynard Keynes. In the estimation of a few of us who
the Tuck School of Business Administration at Dartmouth
participated in some capacity in the peace conference at
College, which appears in the Appendix.]
the close of the World War-my part being of a minor char-
THE PRESIDENT'S SILVER PROCLAMATION
acter-it is to the credit of this gentleman that he very
[Mr. HAYDEN asked and obtained leave to have printed in
early saw that the reparations laid against Germany were
the RECORD the President's proclamation with respect to the
of such weight and burden that they would distress, rather
coinage of silver, together with an editorial entitled Justice
than advance, the cause of peace, and he did assert that it
for Silver by Raymond Moley, appearing in Today, which
would obstruct any negotiations of harmony in the coming
era between the nations.
appear in the Appendix.]
Later this gentleman, as an economist, assumed to be a
THE CALENDAR
spokesman of the younger generation of England, who in
The VICE PRESIDENT. The morning business is closed.
themselves were at variance and sometimes in conflict with
The calendar under rule VIII is in order.
the older age of England as it expressed itself in Parlia-
The first business on the calendar was the bill (S. 682)
ment. To that point he was very much commended by
to prohibit financial transactions with any foreign govern-
those who have such views as myself, and received the en-
ment in default on its obligations to the United States.
dorsement of those whose modernistic ideas of the advance
LETTER OF JOHN MAYNARD KEYNES TO THE PRESIDENT
of human liberty and common justice would reward anyone
Mr. LEWIS. Mr. President, I beseech the Senate that I
who was daring enough, courageous enough, to advance
may be permitted to impose upon it for a few moments on a
remedies as against the oppressions which were then threat-
matter that may be slightly a departure from what the
ened and now are imposed upon the world at large under
calendar calls into action. I refer, Mr. President, to a public
what is called the terms of the peace treaty.
letter which has been addressed to the President of the
Up to 4 months ago, as we recall, if we are interested at
United States, which comes from one who signs himself
all in the casual history of mankind and those who write
John Maynard Keynes, an economist, and seemingly has
from other countries touching the affairs of America, this
authorized those who are presenting the letter in the press
economist wrote most approvingly of the attitude of the
to allude to him as an adviser of one of the King's col-
United States and found it agreeable to have, through what-
leges and a ; director of economy."
ever agencies were adopted-I know not what-the print in
Mr. President, this eminent gentleman-I say eminent"
America of his views. These expressed the endorsement of
because he says he is, and I am one of those ever inclined
the policies undertaken by the President, the new eco-
to adopt a man's standard as expressed in behalf of him-
nomical doctrine of the United States, and the theories
self-addresses his letter to the President of the United
advanced by those who were speaking in behalf of the new
States. The letter assumes to have been written from
government in America.
London, England. This letter would not have attracted my
I am assuming, sir, that those who spoke felt they were
consideration or the attention of my eminent colleagues
advancing the doctrines which were stated in the political
on both sides of this Chamber were it not for the fact that
platform of the Democracy and espoused and endorsed by
it is perfectly apparent that it is a syndicated article,
the electorate at the election, producing the result now ad-
prepared at the behest of those interested, and circulated to
vocated by the national officials who were chosen by the
be printed in the different magazines and publications of
popular vote. It is to be noted now that four months and a
America as a declaration and expression from a very eminent
half from that time this eminent economist-lest I fall into
source making an estimate of the President of the United
error-finds it wholly agreeable to write the very reverse of
States, the Government of America, and those who are
all of that which he has previously advocated. He seems
assumed to be its advisers and directors.
to find an occasion for the condemnation of whatever has
Our attention-is drawn to the fact that one of the great
transpired in America, particularly as to that which relates
papers of New York, the New York Times, assumes an im-
to the Government and the administration from Wash-
portance for this communication, and extracts from it in the
ington.
usually able manner characteristic of the New York Times,
It may be a bit unkind, but I dare say it cannot be said
and addresses in its editorial its comments as to the admin-
to be inconsistent or illogical, to conclude that something
istration in power, and takes the extracts from this economist
has happened wherein this honorable gentleman, this writer
of England as the basis of this comment and as the justifica-
disseminating knowledge and information for the guidance
tion of its conclusions.
of America and England, has been influenced in the short
I have noticed that a great paper of the West, one
term of 4 months to such change of attitude and view as
of the very great leaders of expression of one of the great
now indicated from previous advocacy, since these views to
political parties of America, the Chicago Tribune, simulta-
which I am alluding have now been given the currency of a
neously adopts portions of the communication and expresses
public document throughout all the United States. It is
itself in harmony with its declarations. At the same time,
hoped by its sponsors to influence the ordinary citizen of
I advise my colleagues interested in this casual matter, the
the United States. It is trusted that he may behold how
influential San Francisco Chronicle reproduces from this let-
very wrong has been the way of the administration, and
ter an extract, and likewise editorializes upon it adverse to
how very great has been the loss to America in its pres-
the administration.
tige before the world as a result of the enforcement of the
1934
CONGRESSIONAL RECORD-SENATE
181
policies of the present Government. It is believed that these
who profit greatly by our supine surrender or serene indif-
portrayals of our errors may convince our general electorate
ference to their appropriation of profit gathered from our
that some great wrong has been done the honor of the Na-
too frequent yielding our privileges and our advantages.
tion, and for such reason, among others detailed, our people
The " eminent economist' proceeds to advise the Presi-
would be converted to reverse all of that which was decreed
dent by saying he is about to overtask his bureaucratic
at the ballot box.
machine' and states:
I am now to refer to the writings of another person, and
Now I am not clear looking back over the last 9 months that
he the subject of a friendly nation for whom we have great
the order of urgency between measures of recovery and measures
respect and whose officials we hold in very high esteem, I
of reform has been duly observed.
take the liberty of bringing the attention of Senators to the
He states he cannot detect any material aid to recovery,
letter as I read from it, to which I add views of my own
and advises the President to allow experience to accumulate,
touching this letter and the decorum of its expression.
charges that our system has been put across too hastily, and
I bring you first the letter. I bring you then the editorials
adds his opinion and judgment as to how recovery should
in these great papers which have assumed to use this letter
be brought about in a manner acceptable to himself and his
as the basis of their condemnation, their criticism, and par-
fellow British citizens in concluding that American recovery
ticularly their analysis and adverse judgment of the policies
has experienced a set-back this autumn, but saying he is not
of our Government.
surprised, and so forth, and adding that he need not stop to
I turn to attract the attention of the Senate to the form of
enumerate that which renders especially difficult in the
print of this letter. I invite you to note that the letter is
United States the rapid improvement. He proceeds to set
headed by they who espouse it as being from one who is a
forth what he calls the other set of fallacies' and de-
fellow of King's College and an adviser of the royal body
scribes those fallacies to the President so that the President
in England.
may behold them, drawing a figure of the tightening belt
Mr. President, I wish it understood that I do not complain
around a shrunken waist, and then assumes to describe the
that this British gentleman addresses himself to the Presi-
measures adopted as a foolish application of ideas."
dent of the United States, and that this English economist
It is to be noted that the very form and substance which
attracts to himself such advertisement as naturally follows
this eminent economist now characterizes as foolish are
to one who assumes to have his people informed that he
those he advocated 2 months ago in language specific but
feels himself important enough to address the President of
under the influence of those who have lately guided his
the United States as one of the fellows needing advice and
intelligence, and, conscious that there is.now the inconsist-
counsel from such source of wisdom as the writer feels he
ency which must be imputed to certain influences, pauses to
represents.
add, These criticisms do not mean that I have weakened
I do not complain that the gentleman presumes as a citi-
in my advocacy", and SO forth. But it is apparent that
zen of the British Empire to address himself to the President
whether he is weakened or strengthened, he has merely
of the United States, for I recall that there is an old English
changed his advocacy from the affirmative of 2 months ago,
maxim of consolation that a cat may look at a king." It
when published in behalf of this administration, to now the
is Danton who tells us that life's text of action is L'adace,
negative, which is published in denunciation of it.
l'adace-toujours l'adace."
We read in this letter addressed to the President a con-
He tells the President of the United States-assuming that
fession on the part of the gentleman styling himself as
the President of the United States might happen to see his
" economist" that he lays down his reflections under the
letter or attach any importance to it sufficient to take time
" disadvantage of distance and partial knowledge." We con-
to read it-he will note that a British subject addresses the
fess that after reading his article, it is readily conceded that
President of the United States referring to the works of this
his knowledge is partial as it is also deficient.
friendly Government and its officials as foolish."
He states that the sympathizers in England are nervous
He then assumed that the President is asking him, What
and despondent." We are sorry that those in England can
do you recommend? And he says, If you were to ask
be either nervous or despondent, and trust that by reading
what I would suggest", as if the President would find it
this article those beholding it may take on some other
necessary to seek foreign counsel and direction from this
form, such as confidence in their Government, and the con-
writer, as the sole salvage-and assuming, for his own con-
sciousness that we in America are conducting our Govern-
solation, that in the possibilities of imagination such a
ment without regard to the nationals of other nations who
compliment to himself might be accorded, he says:
have certain losses to themselves wherein they had from a
If you were to ask me what I would suggest in concrete terms
policy hoped for-by us contemplated profit, and disap-
for the immediate future, I would reply
pointed have become nervous and despondent.
and after stating certain matters which he feels need to be
The economist proceeds to ask whether or not the Presi-
remedied, among which is the devaluing of our money, comes
dent is being advised by those he styles as " crack-brained
to the final conclusion which is the object of the whole com-
and queer." We do not know exactly to whom he alludes,
munication-
but, with proper regard to this letter, we answer him,
* * * to ask some common policy of exchange stabilization
" Yes; it is apparent from this communication addressed to
with Great Britain-
the President by the alleged economist offering advice that
adding-
some of the advice is surely crack-brained and queer."
This would be the best ultimate solution.
He states that the average city man-meaning the man
down in the city of London close within the shadows of the
Mr. President, I recall a little line of poetry somewhere-
Bank of England, for, as Senators know, that is always re-
is it not Goldsmith on the Village Schoolmaster?
ferred to as the city all portions beyond as England-
And still they gaz'd, and still the wonder grew
that those within this environment feel the President is en-
That one small head could carry all he knew.
gaged in a hair-brained expedition in the face of oppos-
[Laughter.]
ing competent advice. Of course, we assume that the com-
Then it is that we should as a finality turn and adopt as
petent advice is that which comes from Britain, our honor-
our only salvation the advice and direction of Great Britain.
able competitor, for whom we have the best of wishes and
Now, we understand the letter. In the language of the
great hopes. But this writer advises the President that the
movies-" Oh, yeah? [Laughter.]
only hope of the President lies in "ridding yourself of your
We now, sir, get what was the real object of this com-
present advisers and to return to the old ways, otherwise
munication, and we see, sir, the spirit that animated its
the United States is heading for some ghastly breakdown."
writing in England, and that which in America is the justi-
Oh, the horror of it.
fication for its general distribution, but now after 4 months,
Of course, it is easy to observe that returning to the old
following the complete dedication of America to its new
ways means those ways that surrender the dignity of the
policies we find the eminent economist, who proclaims that
United States and its independence to those of other nations
he is an adviser of colleges and of the Royal Commission of
182
CONGRESSIONAL RECORD-SENATE
JANUARY 8
England, says our only chance for recovery from a policy
pleased to have respect from abroad, and would like to earn
that is foolish and that has Jed the President astray, through
it and ever be worthy of it, we are more concerned that our
advisers that are " crackbrained" is to collaborate at once
policies give support and consolation to the American peo-
with England and allow her to advise and direct us to the
ple and elicit their respect for the work of their own Nation,
end of our roadway.
and more particularly for its dependence upon itself, with-
I recognize the great capacity of English statesmen. I
out seeking counsel from its rivals, however much it may
have served in some capacities in that country. Eminent
respect the wisdom of its competitors.
colleagues whom I see sitting about me, particularly the
I then call attention that the eminent gentleman says
Senator from Arkansas [Mr. ROBINSON] and the Senator
that particularly the mathematical relation between general
from Nevada [Mr. PITTMAN], both of whom did honor to the
prices and the price of gold as set forth by America in its
Senate in their service. Yet each can witness with me that
basis of change is a foolish application", and then says
England has eminence in statesmen and great knowledge of
that the movement of the American dollar may be called the
statescraft, and with it all a bounteous show of ideal man-
" gyrations of the dollar", and that the gyrations of the
ners; but in the decorum of their official life it has been
American dollar is something as if it were on the booze."
impossible to observe among those with whom my eminent
Mr. President, I will admit that the description of
colleagues and myself have associated any who would have
booze as applicable to the dollar has some propriety as
turned to a foreign country, friendly as the United States,
under our dollars something of booze in these days may
and deliberately publish that the President of the United
be enjoyed, and after a little of the " booze a presumption
States was foolish' as an individual and that his advisers
of many dollars may be in the mind of the possessor, swag-
were crack brained" and half-baked." I, for myself,
gering or tilting under the influence of the contribution.
may say that in my experience with Englishmen it has
[Laughter.] But since we speak of dollars, in this connec-
been my knowledge that they clung to and observed in
tion, I refer to the expression of the eminent economist that
speech and conduct those standards that decency and decent
the "American dollar is gyrating to and fro like something
politeness commanded; never would they have charged a
on a booze and ask, Why is nothing said of the pound
vulgarity to a friendly nation whose chief official has been
which has been for some time gyrating to and fro like a
seeking during all of this time for some friendly concourse
small boy's balloon under the capering wind, or a manikin
out of which may be brought some union of result looking
afflicted with St. Vitus dance? This eminent economist is
toward the restoration of good feeling and the melting of
unconscious of this, apparently, for it is to be hoped that
these discordant elements in what we call economics' and
only through unconsciousness would he have omitted al-
their existing conflict at this time.
together a reference so pertinent when he makes applica-
We appreciate that this letter, noting that it has been
tion of his criticism to the American dollar, which has, like
copied in different papers and magazines, was written some
Shakespeare's description of the North Star-fixed in per-
time ago and prepared for the effect of the expressions
manency-as is no other fellow.
which I have now called to your attention.
Mr. President, I now beg, sir, to impose upon my col-
Mr. McKELLAR. Mr. President, will the Senator yield?
leagues by asking them if they will hear my address to this
The VICE PRESIDENT. Does the Senator from Illinois
eminent gentleman. I turn to this eminent economist and
yield to the Senator from Tennessee?
the scientific analysis that he represents as personified in
Mr. LEWIS. I yield.
himself, together with the conclusions of finance and the
Mr. McKELLAR. Does the distinguished British gentle-
logic of government which he feels he tenders to the Presi-
man suggest that Great Britain might help us out by paying
dent as a sure guide of the course of our Nation to protect
us the debts they owe us?
it against unemployment, and we ask, Will he not observe
that on January 1 of this year the Ministry of Labor at
Mr. LEWIS. Mr. President, I am asked by the able Sen-
London announced that the unemployed register on that
ator from Tennessee, who has given much attention, as
we all recall, to the debts of foreign nations which are in
day in Britain, with its small population compared to
United States, December 18 totaled 2,225,000?
default, and who has so often on this floor in eloquent
and commendable manner demanded some immediate exe-
In this connection, might we not add the suggestion to this
cution of their contract-I am asked if this eminent gentle-
eminent British economist that he turn his attention to his
man alludes to those debts. I must again pay my tribute
own country and recall that the cry that went out during the
to this gentleman as an eminent, shrewd, and very sagacious
World War from his native land was saying to all hesitant
man by calling the attention of the Senator from Tennessee
sons, "Tis your mother that is calling you." Therefore,
that he shows his sagacity in the fact that debts is a subject
we invite his attention that at this date conditions in Brit-
ain are such that his mother is compelled to advocate a new
which he carefully avoids.
I may say to my able friend from Tennessee that this
unemployment insurance system in a form of dole provision
eminent gentleman, in advising the President, proceeds to
by which 12,000,000 are to be insured against unemployment
refer to the present system of finance. When he touched
and that 16,000,000 must be provided for, or one third of
finance one might have imagined that he would have
the population of Great Britain, with no system to suggest
touched it very gently, and referred to the action taken by
what may be done for their hapless future.
his own Nation, in behalf of England-this eminent econ-
At this point may we not call attention that we behold
omist' continues-and I beseech you, Senators, that for
6,150,000 men have been taken from the rolls of charity in
your own information you gather these deductions. The
America, and in the last 6 months of this administration
American attitude upon finance is upsetting confidence"
America placed upon a paying basis of employment. That
" it is hindering business."
we have taken the 6,000 banks which cracked like eggshells
And now to your great interest Senators, he proclaims
under the crushing power of their master manipulators and
our financial policy is awakening " a certain lack of respect
given assurance to their depositors and capital to their new
which exists abroad."
existence-and from this N.R.A. gave new credit to a hun-
We have not drawn to ourselves the respect which the
dred thousand new undertakings. Is this the failure of
eminent writer feels that some other course of ours might
the N.R.A", as asserts the economist, for the return of de-
have drawn, say from the British Empire. He advises the
posits?-as I must give credit, due to the labor of the emi-
President of the United States, to whom he addresses his
nent Senator from Michigan [Mr. VANDENBERG] and those of
letter, that we should take some step that would revive
his colleagues in the Committee on Banking and Currency-
confidence in us, and if possible reawaken respect abroad—
this, in providing insurance to depositors. These depositors
that is from Great Britain. We are regretful if we have lost
for the first time in their existence will have the assurance
the respect of our great and good friend.
that their deposits are insured and that they will no longer
Mr. President, we would like to reply gently to this gentle-
be robbed by these master manipulators in America, as has
man, and say that as for America we would prefer to have
been the late disclosures, sad to relate, in parts of the British
this economist or any other know that as much as we are
Empire. Here is a new basis of a new confidence in America,
1934
CONGRESSIONAL RECORD-SENATE
183
and this connection with new employment is a new revival
RETIREMENT AND DISABILITY FUND OF FOREIGN SERVICE
of every form of commerce. The farmers are awakening
in new hope; there is a new life among the humble toilers;
The PRESIDING OFFICER (Mr. KING in the chair) laid
the young men now of a civil outdoor employment, no longer
before the Senate the following message from the President
of the United States, which was read, and, with the accom-
upon the streets helpless and facing the possibility of de-
struction from the criminal and brigand bands that went
panying report, referred to the Committee on Foreign
Relations:
up and down the land, availing themselves of these who,
being hopeless, became then helpless against temptation.
To the Congress of the United States:
May we not invite this eminent English economist, and
I transmit herewith a report by the Acting Secretary of
the splendid land which he represents, to realize the revival
State showing all receipts and disbursements on account of
of all undertakings and the arising prosperity that has
refunds, allowances, and annuities for the fiscal year ended
awakened and arisen in America under the policy of our
June 30, 1932, in connection with the Foreign Service retire-
President, all under the policy which the economist has
ment and disability system as, required by section 26 (a)
heretofore characterized to the world as foolish' and
of an act for the grading and classification of clerks in the
wherein he says the N.R.A. and its work have all been a fail-
Foreign Service of the United States of America, and provid-
ure. We ask him, Will he not observe in another letter he
ing compensation therefor, approved February 23, 1931.
writes the state of confidence of the American public, who,
FRANKLIN D. ROOSEVELT.
dispatching all differences of party politics, have in their
THE WHITE HOUSE, January 8, 1934.
splendid patriotism given their aid to their country, which,
(Enclosure: Report concerning retirement and disability
in the hour and day of its desolation pending the demolition
fund, Foreign Service.)
of its institutions, would have been left in the situation that
PROPOSED NORTHWESTERN INTERNATIONAL HIGHWAY
England a short while ago found herself but for the element
of union and patriotism which our country ever delights
The PRESIDING OFFICER laid before the Senate the
to point as its inheritance? And when this eminent gen-
following message from the President of the United States,
tleman, styled economist", shall proceed again to write
which was read, and, with the accompanying report, re-
another letter, let him recall the comparison between this
ferred to the Committee on Foreign Relations:
land within the little time which it has had to serve itself
To the Congress of the United States:
and that which unhappily afflicts his own.
I transmit herewith the report made by the American
And may I suggest that, since he feels confidence in his
commissioners appointed according to an act of Congress
own counselship and in his own guidance, he address himself
approved May 15, 1930. The act provided for their co-
to his own people and endeavor, perchance, to invest them
operation with Canadian representatives in a study re-
with something of a new leadership under the guidance
garding construction of a highway to connect the north-
which he assumes to offer America and the President of
western part of the United States with British Columbia,
the United States.
the Yukon territory, and Alaska. The work of the com-
Mr President, I conclude with but one final observation.
mission having been completed, its existence has been
It is not done with any pleasure on my part but out of a
terminated.
sense of fitness and, I might say, propriety to the situation
FRANKLIN D. ROOSEVELT.
in behalf of this eminent economist. I would suggest that
THE WHITE HOUSE, January 8, 1934.
there be other letters written by this economist to his
[Enclosure: Report.]
home people, and I would insist upon it but for the fact
REPORT OF PERRY'S VICTORY MEMORIAL COMMISSION
that I am not sure how it would be accepted and what
weight would be given in England to the eminent gentle-
The PRESIDING OFFICER laid before the Senate the
man who has characterized our President as foolish and
following message from the President of the United States,
his advisers as crack-brained", for I cannot fail to bring
which was read, and, with the accompanying report, re-
to your attention, Mr. President, that but a short while ago
ferred to the Committee on the Library:
I was visited with much doubt and much hesitancy as to
To the Congress of the United States:
the estimate of this gentleman, as we had before us the
I transmit herewith for the information of the Congress
communication in print, in magazine form, of Hon. Lloyd
the Fourteenth Annual Report of the Perry's Victory Me-
George, late Premier and World War dictator for Britain.
morial Commission for the year ended December 1, 1933.
Mr. George, in addressing himself in the great problem
FRANKLIN D. ROOSEVELT.
haunting Great Britain as it touches the world, adverted to
THE WHITE HOUSE, January 8, 1934.
certain individuals who assumed in their imaginary wisdom
to correct all errors, overcome all obstacles, and propound
REPORT OF THE GOVERNOR OF THE PANAMA CANAL
the solution for all difficulties, and in this connection Mr.
The PRESIDING OFFICER laid before the Senate the fol-
George referred to one whom he described as John Maynard
lowing message from the President of the United States,
Keynes as a person of much insolence, great presumption,
which was read, and, with the accompanying report, referred
who assumes a remedy for all things; has never been right in
to the Committee on Interoceanic Canals:
anything; bold to assume anywhere his superiority of
To the Congress of the United States:
thought and a privilege of condemnation, but which to
-I transmit herewith, for the information of the Congress,
those who both know the writer and the conditions of
the annual report of the Governor of the Panama Canal for
England are constantly ignored, upon the theory that the
the fiscal year ended June 30, 1933.
prophet is without prophecy and his solutions of finance
FRANKLIN D. ROOSEVELT.
and economics without profit."
THE WHITE HOUSE, January 8, 1934.
It is at this point, while we pay our respects to the gentle-
man, Mr. Keynes, and would invite him, before he writes
REPORT OF THE COUNCIL OF NATIONAL DEFENSE
another letter to the President and hurls his anathema, to
The PRESIDING OFFICER laid before the Senate the fol-
come over and visit us and be received in our friendship, we
lowing message from the President of the United States,
trust, when he assumes to address another letter of similar
which was read, and, with the accompanying report, referred
assumption of authority and insolence of expression, he
to the Committee on Military Affairs:
will recall that we beseech him to turn his attention home-
To the Congress of the United States:
ward and, within the sanctity of the scriptural injunction
In compliance with paragraph 5, section 2, of the Army
Physician, heal thyself," we say to the " eminent econo-
Appropriation Act, approved August 29, 1916, I transmit
mist in the language of our gentle admonition to our
herewith the Seventeenth Annual Report of the Council of
brethren around us at certain times justifying the obser-
National Defense for the fiscal year ended June 30, 1933.
vation: Now, run along little boy; go home and play with
FRANKLIN D. ROOSEVELT.
your marbles; we wish you well; and a happy new year."
THE WHITE HOUSE, January 8, 1934.
184
CONGRESSIONAL RECORD-SENATE
JANUARY 8
ERECTION OF MEMORIALS AND ENTOMBMENT OF BODIES IN
LAWS OF THE TWELFTH LEGISLATURE OF PUERTO RICO
ARLINGTON MEMORIAL AMPHITHEATER
The PRESIDING OFFICER laid before the Senate the
The PRESIDING OFFICER laid before the Senate the fol-
following message from the President of the United States,
lowing message from the President of the United States,
which was read and, with the accompanying copies of laws,
which was read, and, with the accompanying report, referred
referred to the Committee on Territories and Insular Affairs:
to the Committee on Military Affairs:
To the Congress of the United States:
To the Congress of the United States:
As required by section 23 of the act of Congress approved
In compliance with the requirements of the act of Con-
March 2, 1917, entitled "An act to provide a civil government
gress of March 4, 1921, I transmit herewith the Annual
for Puerto Rico, and for other purposes ", I transmit herewith
Report of the Commission on the Erection of Memorials and
certified copies of two volumes of laws enacted by the
Entombment of Bodies in the Arlington Memorial Amphi-
Twelfth Legislature of Puerto Rico during its fourth and
theater for the fiscal year ended June 30, 1933.
fifth special sessions, October 18-21 and November 11-16,
FRANKLIN D. ROOSEVELT.
1932, respectively, and by the Thirteenth Legislature of
THE WHITE HOUSE, January 8, 1934.
Puerto Rico during its first regular session, February 13 to
REPORT OF UNITED STATES CIVIL SERVICE COMMISSION
April 15, 1933, and its first special session, August 1-14, 1933.
The PRESIDING OFFICER laid before the Senate the fol-
FRANKLIN D. ROOSEVELT.
lowing message from the President of the United States,
THE WHITE HOUSE, January 8, 1934.
which was read and referred to the Committee on Civil
ANNUAL REPORT OF THE GOVERNOR OF PUERTO RICO
Service:
The PRESIDING OFFICER laid before the Senate the fol-
To the Congress of the United States:
lowing message from the President of the United States,
As required by the act of Congress to regulate and improve
which was read, and, with the accompanying report, referred
the civil service of the United States, approved January 16,
to the Committee on Territories and Insular Affairs:
1883, I transmit herewith the Fiftieth Annual Report of the
To the Congress of the United States:
United States Civil Service Commission for the fiscal year
As required by section 12 of the act of Congress of March
ended June 30, 1933.
2, 1917, entitled "An act to provide a civil government for
FRANKLIN D. ROOSEVELT.
Porto Rico, and for other purposes", I transmit herewith
THE WHITE HOUSE, January 8, 1934.
for the information of the Congress the Thirty-third Annual
(NoTE.-Report accompanied similar message to the House
Report of the Governor of Puerto Rico for the fiscal year
of Representatives.)
ended June 30, 1933.
This report contains valuable information which it is
AMENDMENT OF VETERANS REGULATIONS
believed should be available in permanent form. It has
The PRESIDING OFFICER laid before the Senate the fol-
heretofore been customary for the President to recommend
lowing message from the President of the United States,
to the Congress the printing of the annual report of the
which was read and, with the accompanying six Executive
Governor of Puerto Rico, the cost of such printing-being
orders, referred to the Committee on Finance:
charged against War Department appropriations. In the
To the Congress of the United States:
present case, however, due to special conditions not ordi-
Pursuant to the provisions of section 20, title I, of the
narily obtaining, the Government of Puerto Rico has ar-
act entitled "An act to maintain the credit of the United
ranged to make available to the War Department a number
States Government", approved March 20, 1933, I am trans-
of printed copies of the enclosed report, sufficient to meet
mitting herewith certified copies of Executive Orders No.
the minimum needs of the Federal executive departments,
6229 (Veterans' Regulation No. 1 (b)), No. 6230 (Veterans'
and also to supply a limited number of copies for the re-
Regulation No. 2 (a)), No. 6231 Veterans' Regulation No. 3
quirements of the Congress. In view of these facts and of
(b)), No. 6232 (Veterans' Regulation No. 6 (a)), No. 6233
the urgent need of effecting exceptional economies at this
(Veterans' Regulation No. 7 (a)), and No. 6234 (Veterans'
time, the customary recommendation for the printing of the
Regulation No. 10 (b)); approved by me on July 28, 1933.
annual report of the Governor of Puerto Rico is omitted.
These veterans' regulations amended the regulations ap-
FRANKLIN D. ROOSEVELT.
proved by me on March 31, 1933, and June 6, 1933, and were
THE WHITE HOUSE, January 8, 1934.
issued in accordance with the terms of title I, Public, No. 2,
FRANCHISES GRANTED BY PUBLIC SERVICE COMMISSION OF
Seventy-third Congress, "An act to maintain the credit of
PUERTO RICO
the United States Government" and Public, No. 78, Seventy-
The PRESIDING OFFICER laid before the Senate the
third Congress, "An act making appropriations for the Ex-
following message from the President of the United States,
ecutive Office and sundry independent executive bureaus,
which was read, and, with the accompanying papers,
boards, commissions, and offices, for the fiscal year ending
referred to the Committee on Territories and Insular Affairs:
June 30, 1934, and for other purposes."
To the Congress of the United States:
FRANKLIN D. ROOSEVELT.
As required by section 38 of the act of Congress approved
THE WHITE HOUSE, January 8, 1934.
March 2, 1917, entitled "An act to provide a civil govern-
LAWS AND RESOLUTIONS OF NINTH PHILIPPINE LEGISLATURE
ment for Porto Rico, and for other purposes" I transmit
herewith certified copies of each of three franchises granted
The PRESIDING OFFICER laid before the Senate the
by the Public Service Commission of Puerto Rico. The
following message from the President of the United States,
franchises are described in the accompanying letter from
which was read and, with the accompanying copies of laws
the Secretary of War transmitting them to me.
and resolutions, referred to the Committee on Territories and
FRANKLIN D. ROOSEVELT.
Insular Affairs:
THE WHITE HOUSE, January 8, 1934.
To the Congress of the United States:
PROPOSED PHILIPPINE INDEPENDENCE
As required by section 19 of the act of Congress approved
The PRESIDING OFFICER laid before the Senate the
August 29, 1916, entitled "An act to declare the purpose of
the people of the United States as to the future political
following message from the President of the United States,
status of the people of the Philippine Islands, and to provide
which was read, and, with the accompanying resolution
a more autonomous government for those islands I trans-
of the Philippine Legislature, referred to the Committee
mit herewith a set of the laws and resolutions enacted by the
on Territories and Insular Affairs:
Ninth Philippine Legislature during its second special session
To the Congress of the United States:
January 16-31, 1933.
I transmit herewith for your information a copy of Con-
FRANKLIN D. ROOSEVELT.
current Resolution No. 46, adopted October 17, 1933, by the
THE WHITE HOUSE, January 8, 1934.
Ninth Philippine Legislature during its third session, en-
CONGRESSIONAL RECORD-SENATE
185
1934
Concurrent resolution informing the Congress of
The PRESIDING OFFICER (Mr. THOMAS of Oklahoma in
the titled United States that the Philippine Legislature, in its own
the chair). Does the Senator ask unanimous consent for
name and in that of the Filipino people, declines to accept
the immediate consideration of the nomination?
the act of Congress, entitled 'An act to enable the people
Mr. HEBERT. Mr. President, I did not hear the request.
of the Philippine Islands to adopt a constitution and form
May we have the request again stated for the information
a government for the Philippine Islands, to provide for the
of the Senate?
independence of the same, and for other purposes,' in its
Mr. LEWIS. I have presented from the Finance Com-
present form and appointing a committee to proceed to the
mittee a report of the nomination of Hon. Carter H. Harri-
United States at the earliest practicable time to seek
son, and, at the request of the chairman of the Finance Com-
amendments to said act of Congress, or the enactment of
mittee, am asking confirmation at this time, because by some
such new legislation as will fully satisfy the aspirations of
accident it was omitted when other nominations from the
the Filipino people to become at the earliest practicable
Finance Committee were reported.
date a free and independent nation, under conditions and
The PRESIDING OFFICER. Is there objection to the
circumstances that will not imperil the political, social, and
request of the Senator from Illinois?
Mr. DILL. I think that policy ought not to be pursued at
economic stability of their country."
this time.
FRANKLIN D. ROOSEVELT.
Mr. ROBINSON of Arkansas. Mr. President, I may say
THE WHITE HOUSE, January 8, 1934.
that I shall move an executive session after the legislative
SESSION LAWS OF ALASKA, 1933
business of the day has been concluded and the matter may
The PRESIDING OFFICER làid before the Senate the
then be presented.
following message from the President of the United States,
Mr. LEWIS. Very well.
which was read and referred to the Committee on Terri-
The PRESIDING OFFICER. The nomination will be
tories and Insular Affairs:
placed on the Executive Calendar.
POLICIES OF THE ADMINISTRATION
To the Congress of the United States:
In compliance with the provisions of the act of Congress
Mr. ROBINSON of Indiana. Mr. President, I desire to
approved August 24, 1912, I transmit herewith a certified
comment briefly on the two messages submitted by the
copy of the Session Laws of Alaska of the Alaska Terri-
President of the United States to the Congress within the
torial Legislature, 1933.
last week. I have a notion in my own mind that one might
FRANKLIN D. ROOSEVELT.
go through the history of the Republic and examine all of
THE WHITE HOUSE, January 8, 1934.
the state papers of the various administrations and find
none more remarkable than those two.
(NOTE.-A copy of the laws accompanied similar message
The message on the state of the Union was, of course,
to the House of Representatives.)
filled only with glittering generalties. I defy any Member
CALL OF THE ROLL
of this body, familiar as he may be with the Government
of his country, to read that message on the state of the
Mr. McNARY. I suggest the absence of a quorum.
The PRESIDING OFFICER. The clerk will call the roll.
Union and gain any enlightment whatever from its contents
with reference to the state of the Union.
The legislative clerk called the roll, and the following
The second message dealt with the Budget. It is more
Senators answered to their names:
unusual than the first and certainly more amazing in its
Adams
Couzens
Keyes
Robinson, Ark.
contents. The President in that message very frankly
Ashurst
Cutting
King
Robinson, Ind.
Austin
Davis
La Follette
Russell
stated to the Congress and to the country that next July 1
Bachman
Dickinson
Lewis
Schall
we will face a deficit of more than $7,000,000,000 in the
Bailey
Dill
Logan
Sheppard
Bankhead
Duffy
Shipstead
Treasury of the United States, and this notwithstanding the
Lonergan
Barbour
Erickson
Long
Smith
fact that the President himself and his spokesmen have
Barkley
Fess
McAdoo
Steiwer
been going about the country during the past 6 months con-
Black
Fletcher
McCarran
Stephens
Bone
Frazier
McGill
Thomas, Okla.
fidently assuring the American people that the Budget was
Brown
George
McKellar
Thomas, Utah
balanced, that we were out of the red and into the black.
Bulkley
Glass
McNary
Thompson
Now the truth is out. The Budget is not balanced. Not
Bulow
Goldsborough
Murphy
Townsend
Byrd
Gore
Neely
Trammell
only is it not balanced but it is in worse condition than
Byrnes
Hale
Norris
Tydings
perhaps it ever has been in the history of the Nation, not
Capper
Harrison
Nye
Vandenberg
Caraway
Hastings
O'Mahoney
Van Nuys
even excepting war-time conditions.
Carey
Hatch
Overton
Wagner
Mr. HARRISON. Mr. President-
Clark
Hatfield
Patterson
Walcott
The PRESIDING OFFICER (Mr. THOMAS of Oklahoma in
Connally
Hayden
Pittman
Walsh
Coolidge
Hebert
Pope
Wheeler
the chair). Does the Senator from Indiana yield to the
Copeland
Johnson
Reed
White
Senator from Mississippi?
Costigan
Kean
Reynolds
Mr. ROBINSON of Indiana. In just a moment.
Mr. LEWIS. My colleague [Mr. DIETRICH] has been and
How strange it seems to some of us that the President of
is still ill and is therefore necessarily absent. I ask that the
the United States, when he submitted his so-called economy
announcement may stand for the day.
bill" last March, would have criticized the deficit of that
Mr. AUSTIN. I wish to announce the necessary absence
day, left by the administration which preceded him and
of my colleague [Mr. GIBSON], and would like to have this
which was not a drop in the bucket compared with this
announcement stand for the day.
enormous deficit which the country faces at the moment.
The PRESIDING OFFICER. Ninety-one Senators have
I yield now to the Senator from Mississippi.
answered to their names. A quorum is present.
Mr. HARRISON. Does the Senator from Indiana favor
the public-works program provided by the Congress?
CARTER H. HARRISON
Mr. ROBINSON of Indiana. Mr. President, I do not care
As in executive session,
to be diverted into a discussion of the public-works program
Mr. LEWIS. Mr. President, at the request of the chair-
at this time. Suffice it to say that before I conclude, if the
man of the Finance Committee [Mr. HARRISON], I report
Senator will give me an opportunity to proceed, I hope to
favorably the nomination of Hon. Carter H. Harrison to be
make some suggestions which, if they be followed on the
collector of internal revenue of the city of Chicago. The
other side, I believe will result in genuine relief and not
report is approved by all interested, and I would like to say
simply a " shot in the arm."
that no more notable, worthy nomination could be made
Mr. HARRISON. May I ask the Senator if he criticizes
than of this gentleman, five times mayor of Chicago. I hope
the deficit which the President SO fránkly stated to the
it will be accepted and by the Senate confirmed.
country exists, and whether he is in favor of the P.W.A.?
No. 4-3
186
CONGRESSIONAL RECORD-SENATE
JANUARY 8
Mr. ROBINSON of Indiana. I shall not be diverted in
Mr. ROBINSON of Indiana. Mr. President, we never have
the slightest degree to a discussion in other channels than
made such distinctions until this administration. Why
those I select for myself on this occasion.
should any distinctions be made? We have a certain amount
Mr. HARRISON. May I ask if it is fair for us to inter-
of income and a certain amount of outgo. The outgo until
pret that the Senator's criticism of this deficit is because
July 1 will show a deficit of more than 7 billion dollars.
he was opposed to the public-works program and the
Mr. ROBINSON of Arkansas. The Senator, as I under-
C.W.A. program?
stand him, makes no distinction between the expenditures
Mr. ROBINSON of Indiana. As I said, I do not care to
of the Government for ordinary governmental purposes and
discuss that with the Senator at this moment. If he will
those expenditures which have been incident to an extraor-
do me the kindness to remain in his seat I think he will
dinary and unusual program of legislation and administra-
learn something in connection with my own views right
tion. Am I correct in that?
along that line.
Mr. ROBINSON of Indiana. And no distinction ever has
Mr. HARRISON. It will be the first time I ever learned
been made until this administration came in. No distinc-
anything from the Senator. [Laughter.]
tion of that kind was made when the last administration
Mr. ROBINSON of Indiana. I propose to proceed in my
went out, and the incoming President commented on the
own way and not be diverted in the slightest by the Senator.
large deficit.
Mr. LONG. Mr. President, will the Senator from Indiana
Mr. ROBINSON of Arkansas. Will the Senator yield for
yield to me?
another question?
The PRESIDING OFFICER. Does the Senator from Indi-
Mr. ROBINSON of Indiana. I yield.
ana yield to the Senator from Louisiana?
Mr. ROBINSON of Arkansas. Does the Senator feel that
Mr. ROBINSON of Indiana. I yield.
in the statements he has read from the President there was
Mr. LONG. I would not interrupt the Senator if he had
neither a distinction in the mind of the Executive himself
not already had a little disturbance in the continuity of his
nor a distinction in the minds of those who heard him
remarks. I think I showed the Congress that we did not
between the ordinary expenses of the Government and those
have to have a deficit even to have the public-works pro-
which are incident to a very unusual program of legisla-
gram. That has never been disputed.
tion and administration? Does not the Senator know that
Mr. ROBINSON of Indiana. Mr. President, I challenge
that distinction was in the mind of the country. and is it
the frankness on the part of the President himself. I con-
not in the mind of the country now? Whether the distinc-
tend that he has not been frank with the American people
tion should be carried or not is not comprehended by my
or else he was not familiar with conditions as they were.
question.
I desire to quote, for the benefit of the Senator from Missis-
Mr. ROBINSON of Indiana. There might have been
sippi [Mr. HARRISON] and any others who may be interested
some distinction in the mind of the country prior to the
in the subject, from a speech made by the President of the
receipt of this Budget message by the Congress. I do not
United States on Monday October 2 last, to the National
think there is any question in the country's mind today
Convention of the American Legion, in which he used this
of just what the country faces, and the fact that we are
language:
plunging headlong toward national disaster unless the
It was because of this that we undertook to take the National
brakes are applied somewhere along the line.
Treasury out of the red and put it into the black; and in the
doing of it we laid down two principles which directly affected
Mr. ROBINSON of Arkansas. Just one more question.
benefits to veterans-to you, and to veterans of other wars.
Is it the Senator's contention that the expenditures should
" In the doing of it! Now, Mr. President, it develops
have been kept within the revenues during that part of
that it is not done. I wonder if the Senator from Missis-
this administration that has elapsed?
sippi would undertake to say that as recently as October 1
Mr. ROBINSON of Indiana. It is my contention that
last, 3 months ago, the Chief Executive of the Nation was
there never should have been but one set of Budget figures
unaware of the fact that we were confronted with a deficit
kept at any stage of the game-just one, the expenses and
in the Treasury? At that time he said we were in the
the outgo. That has always been done. What was the
black.
necessity for any change?
Mr. HARRISON. Mr. President, does the Senator want
Mr. ROBINSON of Arkansas. Very well. That is not re-
me to answer that question?
sponsive to the question that was asked the Senator, if I
Mr. ROBINSON of Indiana. No; the Senator will not
may express my opinion on that subject. Is it the Senator's
need to answer it. It answers itself. Either the President
contention now that the expenditures under the Budget
of the United States knew at that time that the Budget
and in the interest of the general welfare should have
would not be balanced, and therefore misrepresented the
properly been kept within the revenues?
true facts to the American people and was not frank, or
Mr. ROBINSON of Indiana. There is no way to tell
else the President of the United States was ignorant of the
what are extraordinary expenditures and what are normal
facts; and in either case it does not speak well for the
expenditures. As a matter of fact, Mr. President, the Presi-
administration.
dent himself in his message almost states that fact. He
Mr. President, the Budget now appears to be in the red-
states that there has been no coordinated audit at any time
not in the black-$7,309,068,211.
during the 9 months to date. I should like to read just what
Mr. ROBINSON of Arkansas. Mr. President, will the
the President says on that subject.
Senator yield for a question?
Mr. LOGAN. Mr. President, will the Senator yield?
The PRESIDING OFFICER. Does the Senator from In-
The PRESIDING OFFICER. Does the Senator from In-
diana yield to the Senator from Arkansas?
diana yield to the Senator from Kentucky?
Mr. ROBINSON of Indiana. In a moment.
Mr. ROBINSON of Indiana. No; not now. Wait a second.
Interest charges on the borrowings in excess of Budget esti-
I read from the President's Budget message the folowing:
mates will slightly increase this figure.
Up to now there has been no coordinated control over emer-
Mr. President, we know how much the interest charges
gency expenditures. Today, by Executive order, I have imposed
will increase this figure. The figure is above 7 billion dol-
that necessary control in the Bureau of the Budget.
lars as it is, and the President admits in his Budget message
In other words, the President admits that there has been
that interest charges will slightly increase the figure
no coordination among the departments. There has been
that has been given to the country.
no coordinated audit. How could we know how much has
I yield to the Senator from Arkansas.
been spent if there is no audit? The President himself says
Mr. ROBINSON of Arkansas. Mr. President, does the
there has not been such an audit for 9 months past, and
Senator make no distinction between a balance of the Bud-
consequently nobody in this body knows just how much has
get with respect to what are termed the ordinary expenses
been spent; and I have heard it asserted that no one con-
of the Government and extraordinary expenses incident to
nected- with the Government could estimate within $10,000,-
the recovery program?
000 a day of what the actual expenditures were.
1934
CONGRESSIONAL RECORD-SENATE
187
Let me read a little further from that:
tion inheritances above $5,000,000 and incomes above
Heretofore emergency expenditures have not been subject to
$1,000,000 a year.
audit by the Comptroller General of the General Accounting Office.
Mr. ROBINSON of Indiana. My recollection is that I
Today I am, by Executive order, reposing in him the authority to
voted for that amendment.
conduct such an audit and to continue to audit each such ex-
Mr. LONG. I thank the Senator.
penditure. Hereafter, therefore, just as in the departmental
expenditures, there will be in emergency expenditures a pre-
Mr. ROBINSON of Indiana. I want to read something
Budget and a post-audit.
else from this message of last week, the Budget message. It
In other words, according to the President's own language,
is the President's own statement in this message that he
there has been no coordinated audit. Every Department
himself has advertised to the country as being brutally
down there has been going around doing just what it
frank. Let us see how frank it is. I quote from the
pleased, spending just as much money as it desired, hiring
President:
whom it desired, firing whom it pleased; and I dare say
The results of expenditures already made show themselves in
concrete form in better prices for farm commodities.
nobody connected with the Government today can tell the
people of the United States how many persons are employed
Better prices for farm commodities." Just let me refer
by the Government.
to a letter I have just received from a farmer out in Indiana.
Talk about a Budget and about balancing a Budget, when
Prices! This farmer sent to Indianapolis an 810-pound
nobody even knows how much is being spent or how many
cow, 5 years old, and in fair condition. He received for that
people are employed! Of course there could be no balanc-
cow $4.97. He received $4.97 for the whole cow! Yet the
ing of the Budget under such conditions.
President says here, The results of the expenditures al-
The surprising thing is, Mr. President, that anyone would
ready made show themselves in concrete form in better
continue to go around over the country and insist that the
prices for farm commodities."
A farmer friend of mine out in Indiana, just before I left
Budget was balanced, when there never was a chance of its
to come here, sitting beside me at luncheon, told me of an
being balanced after the administration came into power.
experience he had had the day before. Needing some
Yet last March we were told that it was necessary to dis-
money, he sought a market for a Jersey cow weighing 700
charge veterans from the hospitals, some in their under-
pounds, and the best market he could find was $3 for the
wear, in order to balance the Budget! It was necessary to
remove disabled veterans from the hospitals of the United
cow. Never in the history of this country were some farm
States that a grateful people had built for them that they
commodities so low in price, not even in Cleveland's day.
Mr. CAREY. Mr. President, the farmer in Indiana
might be nursed back to health as far as possible, and we
should be congratulated. I know a Wyoming farmer who
were informed that it was necessary to kick them out as
received 50 cents for a cow.
if they were dogs in order to balance the Budget! Now we
Mr. ROBINSON of Indiana. Think of it, 50 cents for a
find that with this prodigal spending of billions and billions
COW in Wyoming! Yet the President of the United States
and billions, with no restraining hand, no audit of any of
says:
the expenditures, the Budget is more than $7,000,000,000
The results of the expenditures already made show themselves
out of balance!
in concrete form in better prices for farm commodities.
Was it for that that these disabled veterans were added
to the bread line? Was it for that that they were carried
How about the prices of dairy products of all kinds? Were
on stretchers out of the hospitals that the people had erected
they ever so low? Is that the way the whole recovery
for them? Was it for that that the tax burden was trans-
program is working out?-
ferred from the shoulders of the tax dodgers clustering
In renewed business activity, in increased employment.
around the stock exchange in Wall Street onto the backs of
Mr. President, far be it from me to take from the Presi-
the farmers and the little property owners throughout the
dent or his administration any credit which they deserve,
land, already taxed to death?
but let me read, in reply to that part of his statement, from
Ah, how solemnly those words were repeated time and
a prominent business publication. This is dated January 1,
again, and on this floor: " We must balance the Budget
this year:
and in order to balance the Budget we took a pitiful $400,-
Two independent estimates of rising unemployment, made pub-
000,000-not a drop in the bucket by comparison with these
lic last week, cast something of a shadow over the optimistic
reports of retail trade, rising steel production, and building ac-
enormous expenditures that have taken place since-we took
tivity. William Green, in commenting on the American Federa-
approximately $400,000,000 from the lame, the sick, the halt,
tion of Labor's figures, which showed a rise in industrial unemploy-
the blind, the wounded, and the sore, those who were battle
ment, to 10,702,000 in November from 10,122,000 in October, said
scarred, and kept right on spending money prodigally until
that unemployment had continued to rise in the first half of
December and is now increasing faster than at any time since
we had spent ourselves more than $7,000,000,000 in the red.
January. The National Industrial Conference Board estimate con-
Yet not one voice is raised within the administration circle
firms the American Federation of Labor trend and shows a 5 per-
in behalf of these disabled veterans who have been treated
cent decline in November employment, a 10.7 percent drop in total
hours worked, and a 9.8 percent shrinkage in pay rolls.
worse than dogs. Everything for Wall Street; everything
Another bit of evidence as to business conditions is given by
for the National Economy League, that presumes now again
the most recent figures of bank debits, which are accepted as a
to speak for this Congress and to this Congress and to the
reliable trade indicator. Ordinarily debits rise sharply in Decem-
administration; everything for the tax-dodgers who for the
ber, reflecting the more active transfer of bank funds, but in the
4 weeks ended December 21 aggregate debits in 141 large cities
past 2 years have refused to pay a cent of income taxes;
were roughly $1,500,000,000 below the 4 weeks ended November
but nothing, nothing, nothing but abuse and vilification for
22, whereas a year ago there was a rise of $2,600,000,000 in the
the defenders of the Nation, now disabled and on beds of
corresponding period.
It is possible that the declines in employment and pay rolls and
pain, who must be kicked out ruthlessly, ruthlessly, to
the kind of business activity reflected by bank debits have not
balance the Budget-to balance the Budget!
had a more direct repercussion on retail trade and on some special
How hollow those words sound today, 6 months after the
industries because they have been counterbalanced by Federal
relief expenditures. In the first 22 days of December Govern-
proud announcement had been made to the world that by
ment emergency expenditures (the extraordinary Budget)
kicking out the disabled veterans we had balanced the
totaled $346,000,000, or $15,700,000 a day. In all October the
Budget!
figure was only $104,000,000. C.W.A. payments alone from Decem-
ber 1 to 22 were $53,842,000-which would exceed by nearly one
Mr. LONG. Mr. President-
half total wage payments at $20 weekly to the 580,000 who lost
The PRESIDING OFFICER. Does the Senator from In-
private employment in November, as shown by the American Fed-
diana yield to the Senator from Louisiana?
eration of Labor estimate.
Mr. ROBINSON of Indiana. I yield to the Senator.
In other words, according to the estimate of the American
Mr. LONG. I am interested in knowing whether the Sen-
Federation of Labor, in November 580,000 additional workers
ator voted for the Long amendment to collect through taxa-
lost their jobs.
188
CONGRESSIONAL RECORD-SENATE
JANUARY 8
Mr. President, I challenge the President's statement that-
not resume the ten to fifteen million men walking the
The result of the expenditures already made show themselves in
streets must continue to walk the streets, for they cannot
concrete form in better prices for farm commodities, in renewed
find jobs. In the long run the Government cannot afford to
business activity.
keep that situation in existence. Furthermore, some day
That condition does not exist.
we will have to pay back the $32,000,000,000 this Govern-
The statement continues: " In increased employment." I
ment is going to owe during the next year.
have just read the figures, showing that there is not in-
Mr. LOGAN. Mr. President, will the Senator please ex-
creased employment, but increased unemployment. The
plain what he means by the mad spending of money by
only only activity where employment has been increased is
the Government? What particular expenditure of money
that in. connection with which the money of the Govern-
would the Senator call mad spending
ment has been spent-for the Civil Works Administration
Mr. ROBINSON of Indiana. Did the Senator ever hear of
and otherwise.
the tree setters, the tree planters, all over the United States,
Finally, says the President, " results show themselves in
1,450 camps, which I think they call the Civilian Conserva-
the reopening of and restored confidence in banks." The
tion Corps camps? I think they are the civilian conserva-
story of the banks is a long one. He speaks of the banks
tion camps, reforestation camps. That just reminds me that
being restored, when, as a matter of fact, there are today
the other day some friends in Indiana called upon me and
$10,000,000,000 of frozen deposits in banks of the country
said they had just finished clearing 14 or 15 acres of forest
which are still unopened or are operating on a restricted
land SO as to make camps for the winter. In that instance
basis. The best way to bring back prosperity is to thaw
it is deforestation and not reforestation. They are cutting
out those deposits. They represent much more in potential
down trees, not planting them.
purchasing power than the actual deposits.
Therefore, since purchasing power is the thing which
Mr. LOGAN. Then the Senator holds that the " mad
makes the recovery machine go, the best plan in the world
spending' is in the Civilian Conservation Corps camps?
would be to thaw out these deposits. These deposits belong
Mr. ROBINSON of Indiana. But the Senator asked me
not to the Government, not to the banks, but to the Ameri-
to mention one way in which there had been mad spending
can people, and if we put this purchasing power in their
of which I did not approve, and I mentioned one way.
hands, their own purchasing power, their own money, then
That has cost approximately a billion dollars. What good
we will find industrial activity on all sides resuming on a
do we get out of it except to build up a military machine?
permanent basis. It will not be just temporary.
Is it the Senator's idea that the object is ultimately to build
Mr. LOGAN. Mr. President, will the Senator yield?
up a dictatorship in this country-that the Regular Army
Mr. ROBINSON of Indiana. I yield.
cannot be built up SO large without suspicion?
Mr. LOGAN. I will ask the Senator, then, whether he
I wish the Senator would get the questionnaires which
approves of the lending of something like a billion dollars
have been sent to these camps and examine the reports
by the Reconstruction Finance Corporation to the banks for
which go to headquarters.
exactly the purposes he has been discussing and, if he does,
That is one thing of which I do not approve, I will say to
whether he believes that the loans for that purpose should
the Senator. I do not see any occasion for spending a
be continued.
billion dollars for the tree-setters. They, 18 to 25 years of
Mr. ROBINSON of Indiana. I do not know how much has
age, were in better shape to withstand this depression than
been loaned. I know it is a comparatively small amount,
anybody else. Certainly they were better able to withstand
and I know that all of that money belongs to the people, not
the depression than soldiers that were sick, old soldiers in
to the banks, or even to the Government, and it ought to be
the hospitals on beds of pain, who were ruthlessly kicked
restored to the people. When we restore it to the people we
out to balance the Budget, which we find now is more than
will restore purchasing power, and when we restore purchas-
$7,000,000,000 in the red.
ing power business activity will resume, and then we will
Mr. BYRNES. Mr. President, will the Senator yield?
commence absorbing this unemployment on the street. The
The PRESIDING OFFICER. Does the Senator from Indi-
ten to fifteen million men on the streets, looking for jobs,
ana yield to the Senator from South Carolina?
with none to be found, will then have work to do, and it
Mr. ROBINSON of Indiana. I yield.
will be permanent work, and the purchasing power will be
Mr. BYRNES. I should like to ask the Senator from
permanent. We will restore the American market and,
Indiana, following the question of the Senator from Ken-
therefore, restore American prosperity.
tucky, whether the Senator from Indiana is opposed to the
Mr. LOGAN. May I ask the Senator how he would pro-
loans made to Indiana-State, counties, and municipalities-
pose to release this vast amount of deposits which are fro-
for construction purposes, to put men back in jobs?
zen, unless the Government finds it possible in some way to
Mr. ROBINSON of Indiana. Mr. President, I do not care
advance the money to the banks, and if it does that, will it
to go into that question. I wish to complete what I had
not still further increase the deficit?
undertaken to say.
Mr. ROBINSON of Indiana. In lieu of some of the mad
Mr. BYRNES. The Senator can say whether he is opposed
spending which has been going on I am suggesting a plan
to the allocation of the money. that has been used for those
by which the Government would get permanent results for
loans, which money certainly goes into the deficit which he
its money and restore this money to the people. As it stands
is discussing.
at present, the Government is insisting that credit be ex-
Mr. ROBINSON of Indiana. The Senator from South
tended, it is insisting to the banks all over the country that
Carolina picks out one isolated situation. Let me give the
they extend more liberal credit on a long-term basis when,
Senator one.
at the same time, the Government is holding over the heads
In the first place, it was proposed that we establish these
of these banks, even the small country banks, and the
C.C.C. camps and pay the tree planters $1 a day for planting
bigger banks elsewhere, the measuring rod of liquidity, rather
trees. The question was how to get the money immediately
than of solvency. Even though a bank may be perfectly
to start the project into motion. Do the Senators know how
solvent, if it is not yet completely liquid according to the
we got it? This is the way:
Government standard, then liquidation is forced, and when
Mr. President, we had a fund of $148,000,000 remaining
liquidation is' forced, who suffers? The depositor suffers.
over from the last administration. It was an emergency
He is the injured party. He is also the innocent party. It
building fund. The Senators will remember that it was
is his money, not the bank's money, not the Government's
for the construction of public buildings, emergency build-
money.
ings, to relieve the depression. That fund of $148,000,000
As long as the Government insists on this tight-fisted
had been allocated to the building trades-that is to say, to
policy of liquidity rather than solvency, just SO long will the
the bricklayers, to the carpenters, to the joiners, the stone-
banks continue to hold 80 to 90 percent of their funds liquid,
masons, the cement mixers, the house painters and deco-
and just so long will they refuse to extend credit to starved
rators, and to those in allied lines of industry. The blue-
and hungry and sick business, and as long as business can-
prints had been drawn, and the sites had been selected-
1934
CONGRESSIONAL RECORD-SENATE
189
one out in Plymouth, Ind., my own State. Going to Ameri-
I read somewhere that the President of the United States
can labor, that fund was calculated to uphold the American
has received a million letters and telegrams since March 4
wage scale, to uphold the American standard of living, to
last. I am not surprised at that. I am wondering if there
uphold purchasing power, and therefore ultimately to restore
were not more than 1,000,000 as a result of this one state-
prosperity at the earliest possible moment.
ment to which I have just referred. Imagine the situation.
Do Senators know what happened under this legislation?
This was the Chief Executive of the Nation talking over
The administration deliberately diverted that fund of
the radio to an expectant people all over the land.
$148,000,000 from its true purpose and turned it over to the
Washington has the money.
tree setters. No wonder American labor protested most
He said:
vigorously against that unfair measure, which robbed labor
If any of your folks out there within sound of my voice need
of $148,000,000-labor in the building trades!
any money, wire me.
That is not all. As soon as we could get to it then, we
How much money do you suppose he ever sent to the
took $400,000,000 out of the pockets of the disabled veterans
untold thousands who wired him? My understanding is
of the United States and their dependents, and we gave
that a printed or mimeographed sheet of paper was sent
that to the tree planters.
It will now require as much, perhaps, as one half billion
out to each one of those who wrote in, saying, "Apply to
your nearest loan agent."
dollars additional to keep these tree planters going for 1
Is that brutally frank Mr. President? Is that coming
full year. A whole billion dollars spent on that sort of thing.
clean with the American people? Washington has the
I understand we now have more than 1,400 of these camps
money and now it develops that Washington not only has
in the United States. What is the purpose of the camps?
not the money but it has $7,000,000,000 less than the money.
The lads will be worse off when they get out than they
Why did the President make that statement, Washing-
were before. What have they gained by it? The adminis-
ton has the money", when he must have known at the time
tration has been brutally frank on some subjects. Why not
that there was staring in the face of the National Treasury
be brutally frank on this subject and tell what the President
a deficit of more than $7,000,000,000?
is doing, and why?
" Washington has the money. Write in." If it were not
That is one thing I want to say, Mr. President, to the
the President of the United States, we would characterize
Senator. One billion dollars has been worse than squan-
such speeches as that by a rather ugly term, Mr. President.
dered, deliberately taken from the disabled veteran, from
Now the President says:
American labor, from the underpaid Federal employees, and
We have not the money; but in order to make clear to the
from the Treasury.
country what our borrowing problem is for the next 6 months,
Mr. BYRNES. Mr. President, the Senator having ex-
permit me to remind you that we shall have to borrow approxi-
pressed his opinion on that subject, will he now tell us
mately $6,000,000,000 of new money, and, in addition, $4,000,000,000
whether he is opposed to the loans to Indiana for construc-
to meet maturities of a like amount.
tion purposes to put men back in jobs?
That is $10,000,000,000. Maybe we can borrow it. I do
Mr. ROBINSON of Indiana. Mr. President, Indiana is in
not know. We have not attempted it yet in this administra-
the same situation as every other State in the Union. I do
tion. Let that be understood. Everything so far has been
not propose to discriminate between my home State and any
short-term borrowing. It is true that last month something
other States. It is like the tariff question. If I am for a
more than $900,000,000 was raised from the sale of notes,
tariff, I am for that tariff everywhere, not only as applying
but they were 1-year issues-12 months. The test will come
to Indiana. In that respect I am different from some of my
when you undertake to do some of this refunding on a long-
friends on the other side of the Chamber, who are interested
time basis-15 or 20 years or more. Then see what you do,
in tariffs for their own States but not for other States.
those who are so much interested in maintaining the credit
Mr. BYRNES. Will the Senator yield?
of the United States; so much interested, indeed, that it was
Mr. ROBINSON of Indiana. Mr. President, I do not wish
necessary, it was said, to pass a bill here that would drive
to be further interrupted.
the disabled veterans out of the hospitals of the country
The PRESIDING OFFICER. The Senator from Indiana
that had been erected for them.
declines to be interrupted further.
How is this money going to be raised, Mr. President?
Mr. ROBINSON of Indiana. Mr. President, I should have
Surely the President has a way of raising it. How does he
thought that in this Budget message the Chief Executive
propose to raise it? I will tell you, sir, how he proposes to
would have suggested some way in which he proposed ulti-
raise it, according to the Washington Star of yesterday.
mately to pay off this indebtedness, assuming that it can be
Let me read from the Washington Star of yesterday, and
contracted. Not one word is said on that subject.
this will give you some enlightment on the method the
The President bluntly makes the statement that in the
President has in mind-he and his Secretary of the Treas-
next year or so the national bonded indebtedness will be
ury-of raising this money:
approximately $32,000,000,000. That is more than $5,000,-
Because of Bailie's long experience in the investment-banking
000,000 over and above the highest amount of our national
field, Morgenthau's plan was for him to take active charge of the
indebtedness after the war was over.
vast borrowing operations which the Government must undertake
in the next 6 months, and for which plans were said yesterday to
One would think that in a message coming to the Con-
be advancing.
gress the President would suggest some method of paying
That is an Associated Press story appearing yesterday.
off this great indebtedness that he is intending to contract.
Who is Mr. Bailie, that he is to be given such vast power as
The President suggests we are going to borrow $10,000,-
this? Mr. President, since it has developed that the admin-
000,000-$6,000,000,000 of new money; $4,000,000,000 to re-
istration was imposing such great confidence in Mr. Bailie,
fund other obligations now existent and that will become
let us see who Mr. Bailie is. I shall now read from a publi-
due-but he does not say a word about where the money
cation dated January 1 that has been placed in my hands
is to come from, and I imagine the people of the country
within the last few hours:
would like to know.
Stunned by the appointment of Earle S. Bailie, central figure in
Mr. President, I remember one thing that took place back
the unsavory investment-trust promotions of J. and W. Seligman
in Indiana last fall, not SO long ago. I do not think it is over
& Co. during 1929, as the power behind the new Morgenthau
3 months ago. I then with my own ears heard the Chief
throne, Senators are preparing to ask some pointed questions when
his appointment as Assistant Secretary of the Treasury comes
Executive say over the radio, words to this effect-I do not
before them this January. The elevation to a dominating position
have the exact quotation here, but can get it, assuming
in the Treasury of a man of the Bailie type by an administration
that it is in print:
which has vaunted its determination to drive the money changers
out of the temple is regarded as little short of a travesty upon all
Washington has the money.
administration professions.
Thousands of unfortunate investors throughout the United
This is substantially what he said:
States remember Bailie as the man who, as chairman of the Tri-
If any of you folks out there have mortgages coming due and
Continental Investment Trust in 1929, unloaded $50,000,000 of
confronting you now, or are weary and heavy-laden, just wire
stock upon the public in a new organization known as The Tri-
me. Just wire me.
Continental Allied Co." upon the claim, set forth in legally air-
190
CONGRESSIONAL RECORD-SENATE
JANUARY 8
tight language in his official publicity releases, that the earnings
on the first investment-trust common stock had been 42 percent
But Morganthau loved him just the same. I quote Mr.
during its first 6 months. Investors who believed Bailie's carefully
Morganthau's letter accepting Mr. Bailie's resignation. This
worded estimates of earnings found themselves after 4 years hold-
is what the youthful Secretary of the Treasury has to say
ing common stock which represented a 100 percent loss of its asset
value, or preferred stock which, so far from earning money, had
to Mr. Bailie, quoting from the Washington Star of yes-
behind it only $88.31 asset value per share. The selection of the
terday:
man who has been humorously referred to by some of his col-
JANUARY 6, 1934
leagues in the Street as 42 Percent Bailie to administer the
DEAR EARLE: In reply to your letter of January 5, I can only
Treasury at a time when the new Securities Act is to be recast into
repeat what I have already told you, how much I regret that you
permanent form has sent the tremors up the spines of official
find it necessary to return to New York. During your short stay
Washington.
at the Treasury you have rendered real service to the President
and to me.
He is quite "some man", Mr. President. I want to read
a little more. I want to show the Senate how Mr. Bailie
If he had stayed there another month, he would have had
operated in South America. I still quote:
the whole Treasury [laughter], if one may judge by what he
It was Bailie's genius to take these third-rate credit-risk for-
did in Peru, where, according to the evidence, he and those
eign borrowers and market fabulous amounts of their securities.
associated with him deliberately bribed the son of President
On Peru, Bailie did his best piece of work. His plan there was
Leguia and paid him hundreds of thousands of dollars in
to create for Seligman's a strangle hold on Peru comparable to
order to obtain certain concessions there.
that which his firm had been given on Nicaragua, thanks to the
dollar diplomacy of the State Department in seach of canal
During your short stay at the Treasury you have rendered real
rights in Nicaragua. As Mr. Bailie did not have the State De-
service to the President and to me.
partment to assist him in Peru to the extent to which they
I appreciate greatly the personal sacrifice that Mrs. Bailie and
had aided his firm in Nicaragua, Mr. Bailie worked through Juan
you made in coming down here.
Leguia, the son of President Leguia, a dictator who seized and
My best wishes go with you.
held power in Peru from 1920 to 1930, when he was ousted by
Very sincerely yours,
revolution. Mr. Bailie's associates, presumably under his direc-
HENRY MORGENTHAU.
tion, fixed the son of the President of Peru by paying him about
a half of 1 percent commission or over a half a million dollars
The point is, Mr. President, that the close friendship still
on a hundred million dollars of Peruvian bonds, 85 millions of
exists. Of all the men available in the United States, Mr.
which were sold to American investor in 1927-28 at upwards
Morgenthau selected Mr. Bailie-" 42 percent Bailie "-to
of 90 cents on the dollar. These bonds are now in default and
are quoted at around 10 cents on the dollar. Bailie's firm made
become Assistant Secretary of the Treasury. What state of
approximately a million dollars on this business. President
mind can one be in who will select such a man for this vast
Leguia's son got his commission, and the American investors were
undertaking? How does he expect ever to hold the con-
left holding the bag.
fidence of the people of the United States? And this sort of
Mr. President, there is the man whom our youthful Sec-
thing is done and men of this character are employed to
retary of the Treasury had selected as his right-hand man
take charge of the vast fiscal activities of the Government.
to float the $10,000,000,000 that the President says will be
Drive the money changers out of the temple! Mr. Presi-
necessary to be raised during the next year. We had a
dent, apparently they are not only not driven out but they
new face now in the official picture-Mr. Bailie. If I may
are given front seats; they have the choice pews.
read further:
What has got to be done, Mr. President, before there can
What was the outcome for the investors? After less than 4
be any real recovery in this country? Before there can be
years of administration by Chairman Bailie, Tri-Continental com-
any real economic recovery there must be spiritual recovery,
mon on December 31, 1932, had no asset value at all, while the
a return to common decency, the decency of the fathers, a
preferred stock had an asset value of only $88.31 per share. In
other words, in 4 years Mr. Bailie, by the use of good judgment,
return to the time when dishonesty at the top will not be
turned $100,000,000 entrusted to him in the 7 months between
permitted for a moment, because it finds its way down
December 1928 and July 1929 into about $33,000,000. Instead of
through all the strata of society, permeates the whole, per-
earning 42 percent a year, he has lost about two thirds of $100,-
verts it all. Honesty is still the best policy. Honesty at the
000,000 of the investors' money entrusted to him for investment
management.
top going down through all the strata of society leaves it
clean and wholesome, and until we restore some sense of
I quote further:
decency as the fathers knew it we shall have no economic
The official Roosevelt organ said in defense of Mr. Bailie's
recovery. The necessary thing is to take the Government
appointment to the Treasury that he had been chosen because
out of Wall Street.
he knew the trick of placing securities."
This Bailie incident is tragic. Instead of restoring con-
Well, there is no doubt that he is a master of security
tricks.
fidence in the Government of the United States it destroys
confidence at a time when confidence is needed as never
That is the man. Drive the money changers out of the
before in the history of this Republic.
temple! All of us were thrilled when we heard the Presi-
dent's inaugural address last March 4 and listened to the
GOVERNOR OF HAWAII
words, Drive the money changers out of the temple."
During the delivery of the speech of Mr. ROBINSON of
What happened? They came rushing into the temple.
Indiana,
There came the first Secretary of the Treasury, who, by
The PRESIDING OFFICER (Mr. THOMAS of Oklahoma
uncontroverted evidence, was on five of the pet lists, called
in the chair) The hour of 2 o'clock having arrived, the
" preferred lists of the House of Morgan, receiving just
Chair lays before the Senate the unfinished business, the
because of his prominence, princely gratuities for which he
title of which will be stated.
rendered no services whatever; "he toiled not, neither did
The LEGISLATIVE CLERK. A bill (H.R. 5767) to authorize
he spin." He is now out.
the appointment of the Governor of Hawaii without regard
Mr. Morganthau comes in. Who does Mr. Morganthau
to his being a citizen or resident of Hawaii.
immediately place in the Treasury as Assistant Secretary
of the Treasury, as his right-hand man, to handle all the
Mr. ROBINSON of Arkansas. I make the motion now to
vast financial work that is now being undertaken by the
recommit the bill, the title of which has just been stated, to
the Committee on Territories and Insular Affairs.
administration, without any suggestion as to how they are
going about it, for the President has not seen fit to tell us
Mr. McNARY. I desire to inquire is the bill the first one
how he proposes to do it? He just says we are going to
on the calendar?
do it; he does not explain how we are going to pay it back
Mr. ROBINSON of Arkansas. No; it is the bill which is
or anything of that sort; there is no question raised on
the unfinished business. It is a bill relating to the appoint-
that score. Mr. Bailie is selected for the job.
ment of a Governor of Hawaii.
Mr. President, here is the sequel.
Mr. McNARY. I am certain that the Senator from Cali-
The headlines yesterday in the Washington Star read as
fornia [Mr. JOHNSON] wishes to discuss the first bill that
follows:
is on the calendar.
Bailie quits post as fiscal expert. Resignation removes final
Mr. ROBINSON of Arkansas. This bill has no relation
objection to Morganthau's confirmation.
to that.
1934
CONGRESSIONAL RECORD-SENATE
191
The PRESIDING OFFICER. If there be no objection, the
believe that the Chief Executive has been boasting that
which is now the unfinished business will be recommitted
the Budget is balanced in the sense referred to by my friend
to the Committee on Territories and Insular Affairs.
the Senator from Indiana?
Why, Mr. President, we all know that thè President has
POLICIES OF THE ADMINISTRATION
repeatedly stated that the extraordinary expenditures in-
After the conclusion of the speech of Mr. ROBINSON of
cident to the national-recovery program have unavoidably
Indiana,
kept the Budget out of balance. The statement has been
Mr. ROBINSON of Arkansas. Mr. President, no one who
made that with respect to usual Government expenses the
is familiar with the fiscal affairs of our Government can
Budget is in approximate balance, and I believe that to be
contemplate them without a measure of concern and anx-
true.
iety. It is certainly true that since the new administration
In the next breath the Senator from Indiana says that
came into authority enormous and unusual amounts have
the President is not frank. I appeal to those men who sit
been authorized to be expended. Looking into affairs at
in the press gallery, who have the duty of reporting to the
present and anticipating the future, anyone who is con-
country the proceedings of the Executive and of the Con-
cerned with the credit of our Government realizes that it
gress, whether the Budget message was not the frankest
will be utterly impossible to carry forward a program of
Budget message that has come to the Congress during their
national recovery such as has been initiated without incur-
memory. I ask leave now, Mr. President, to compare it in
ring a very large deficit unless heavy taxes in the form of
general terms with those Budget messages about which the
capital taxes be imposed.
Senator from Indiana remains silent-Budget messages
Your present speaker has taken occasion in public ad-
which claimed that " just around the corner the Budget
dresses to point out the consideration that always, when
would be balanced, that there was no substantial difference
the Federal Government enters a sphere of activity, its
between expenditures and outlay, when experience showed
operations and workings tend to become exclusive. I have
that deficits were growing all the time during the adminis-
not the slightest doubt that when the clouds have been dis-
trations that immediately preceded the administration of
pelled and the sun of prosperity again shines in splendor
President Roosevelt. Instead of giving you figures to enable
on this great land of ours we will have new problems that in
you to mislead the country, if you desired to do so; instead
part will have grown out of the course which it has been
of causing you to represent that no substantial deficit
found necessary to pursue during the depression.
existed, the President of the United States rather exagger-
The Senator from Indiana [Mr. ROBINSON] with his usual
ated the deficit. He stated the maximum of expenditures
heat and impetuosity has in a forceful address bitterly con-
and the minimum of revenues; and if there is a man in the
demned the national recovery program. For the most part
press gallery who does not believe that to be true I should
he has declined to segregate the features of that program
like to have him tell me so, either privately or publicly.
and to express condemnation as to particular phases of it,
The President, however, is not frank enough to please my
with the single exception of the Civilian Conservation Corps.
He began his address with a statement that I controvert
friend, the Senator from Indiana. The President has not
used language unbecoming an officer and a gentlemen."
with all the emphasis at my command. That feature of his
remarks was not related directly to the very profound issues
He has not gone out of the sphere of proper expression to
involved in the fiscal policy now being carried on by the
attack anyone. He has told the truth, and the country
Treasury. It was a gratuitous and, to me, unjust and un-
respects him for it. From limit to limit of this great con-
tinent has sounded a round of applause that at last there
founded attack on the President, in the following language:
is in the White House a man who will not misrepresent or
I defy any Member of this body to read his annual message and
to obtain any information on the state of the Union.
conceal facts pertaining to national expenditures.
The Senator says these expenditures have not been made
It is said that comparisons are invidious. If I disregarded
in the interest of the public; that they have been made for
that axiom and made a comparison between the President's
the benefit of Wall Street. Do you, sirs, believe that to be
annual message and the speech just delivered by my friend
true? Do you believe that President Roosevelt and his poli-
from Indiana, I know what would be the vote of every Sen-
cies have lent themselves to the support of Wall Street?
ator in this Chamber, except the Senator from Indiana.
If we take the standpoint of statesmanship and moderate
If you will analyze the national recovery program and just
use a little common sense with respect to the purposes under-
expression founded on reason and sound judgment, and
compare the President's annual message with the address
lying the expenditures, you will know that that statement
was conceived in an imagination which has little relation
just delivered by the Senator from Indiana, I have no doubt
to facts.
as to the results of the comparison.
What are some of the features of this national recovery
Almost every Member of this body was called on by the
press, immediately following the delivery of the annual mes-
program? First, there is the effort to adjust farm commodity
sage, to express his opinion as to the importance and effect
prices. We may differ; Senators differ on almost every
of the message. I am not going to put into the RECORD the
important question that arises. There rarely results una-
opinions expressed from this side of the Chamber and those
nimity of sentiment here on any dispute that comes before
expressed from the other side of the Chamber, but the
the Congress; but I think there is one thing that all will
concede is true, and that is that the effort to raise the prices
consensus is, and was, that it was an able document, one
of the most forceful and appealing messages that has ever
of farm products, the effort to finance farm mortgages and
home loans, the effort to promote national recovery through
been delivered to the Congress of the United States. For
the National Recovery Act, have not been regarded by any
my part, I must ask leave to accept the opinion of the
Senator from Oregon [Mr. McNARY] and other Senators on
serious-minded persons as in the interest of Wall Street or
the other side of the Chamber as against that of the Senator
great financial combinations. It is a peculiarity of this
from Indiana. The simple truth of the matter is that the
program that every feature of it is intended to be applied
message was received by the Nation with applause; and
in the interest of the general public and for the purpose of
during 30 years in Congress I have never witnessed on a
promoting the recovery of the Nation as a whole.
similar occasion such enthusiasm as was displayed in the
I have no quarrel with those who criticize features of the
Hall of the House of Representatives during the delivery of
program. I have some little impatience with one who votes
that address.
for a program and then refuses to accept his share of
The Senator from Indiana says the President admits a
responsibility for it. But if you will consider the program
large deficit, but that he and those associated with him in
as a whole, it has been carefully thought out for the purpose
politics have been going about the country crying that the
of bringing about a revival of confidence and a restoration
Budget is balanced.
of business activities to the normal.
I want to ask Senators, not for an answer, because it
The Senator from Indiana talks about ignorance or mis-
would embarrass them; but do they believe that is a fair
representation on the part of the President in connection
criticism of the course taken by the President? Do they
with the Budget. I might, if I chose to retort in kind, make
192
CONGRESSIONAL RECORD-SENATE
JANUARY 8
a similar characterization of the remarks of the Senator
will be useful to them in all the years of their lives. It is a
from Indiana when he said that the way to bring about na-
great thing to redeem a young man from lost opportunities.
tional recovery was to thaw out the frozen deposits in na-
It is a greater thing to bring to him opportunities in the
tional banks-just as if he did not know that a material
hour of extremity and discouragement.
part of the program that has already been carried out is
This business of tree setting, which the Senator from
the advancing of hundreds of millions of dollars through
Indiana ridicules so viciously, relates to a subject of very
the Reconstruction Finance Corporation to unfreeze de-
.great importance to the people of this Nation. During the
posits in closed national banks, to enable them to carry
last century our forests have been almost destroyed. There
forward their normal activities and to give assurance to de-
have occurred great wastes, and those who look to the future
positors that they will be paid.
with interest and anxiety realize that there is necessity for
I cannot account for such a statement in a speech in the
reforestation. Whatever hours may have been without
Senate of the United States when I look at the figures that
immediate profit from the work by the members of the
are available to every one.
Civilian Conservation Corps, the purpose of the organization
Up to January 1, 1934, there had been approved a total
is an exalted and useful one, one of inestimable value not
number of 3,391 loans to closed banks or banks in distress
only to the present but to the future.
for the very purpose referred to by the Senator from
The Senator from Indiana asked, as if he believed it to be
Indiana, these loans carrying with them an aggregate
true, whether the object of the Civilian Conservation Corps
amount of $248,373,350. But the Senator from Indiana says
was to create military machinery, implying that there is some
that a foolish thing was done; that a measuring-rod was
ulterior motive in the minds of the sponsors of the act in
applied, having in mind liquidation rather than insolvency.
bringing it forward and in administering it. So far as the
There, again, he discloses such unfamiliarity with the facts
Army has had jurisdiction of the subject, no one need
that I am unable to give my usual credence to the remarks
apologize for the manner in which it has performed its
of the Senator from Indiana, for the rule applied was that
duties in connection with the Civilian Conservation Corps.
banks with 10-percent impairment of capital should be en-
In every part of this country there are groups of these young
titled to assistance as well as those whose capital had not
men who are constantly becoming better and better citizens.
been impaired in the slightest degree. The result is that
They understand the traditions which underlie and support
the closed banks applying for loans, with the exception
our flag and the institutions of this country.
of only about a hundred and fifty-four-the exact number I
It is asked, What benefit will it be to them when they go
have not before me-have been sustained, their deposits
out of the camps? Benefits which cannot be measured
are being thawed, and the very plan which the Senator from
merely in dollars and cents will result. They will be better
Indiana insists is the sole plan properly to be approved for
men, better fitted to perform the duties of life. They will be
national recovery constitutes one feature of the plan or pro-
better citizens, better prepared to support the institutions
gram that is already in operation.
which we all love.
The President and those who are associated with him did
Mr. LOGAN. Mr. President, will the Senator yield?
not believe it wise to rely on any one measure as sufficient
Mr. ROBINSON of Arkansas. I yield.
to bring about the desired results. After presenting the sub-
Mr. LOGAN. I believe it is true that nearly all of the
ject to the Congress, there was authorized a very large
boys who joined the civilian conservation camps made an
public-works program. There is ground for objection to
allotment of $25 out of the $30 a month which they received,
this policy, and I make no complaint as to those who in
for the relief of dependents, fathers and mothers, and sisters
good faith believe that public works will not sufficiently aid
and brothers, who actually were needing help.
unemployment to justify the expenditures from the Treas-
Mr. ROBINSON of Arkansas. I thank the Senator from
ury that are required. Nevertheless, in every part of this
Kentucky for that suggestion; it had escaped my memory.
Union there are now at work, in the aggregate, millions who
Yes, Mr. President; every boy who entered a conservation
would still be without the opportunity to earn wages if it
camp was given the opportunity; most of them were required
were not for the public-works program.
to set aside a part of their earnings for the benefit of the
The Senator from Indiana was vigorous in his attack on
members of their families; so that we were not only benefit-
the C.C.C., the Civilian Conservation Corps, and he ridiculed
ing the lads themselves but we were benefiting those who
the members of that corps as " tree setters." He wondered
were behind them in their homes, and thus in a practical
what was the purpose of the organization and condemned
sense supporting the general policy of national recovery.
the President for not explaining to the Congress its purpose.
The sum and substance of the argument of the Senator
Mr. President, if there is anyone here so lacking in intel-
from Indiana is to the effect that the national recovery pro-
ligence as to require information on that subject, let me
gram has been a failure, that it has not accomplished any-
tell him that at the time the Civilian Conservation Corps
thing worth while, but that on the contrary, it has imposed a
was conceived and planned there were literally millions of
debt on the country, and is imposing a debt on the country
boys and young men in this Nation out of employment, most
which will be difficult to pay.
of them red-blooded, vigorous, and anxious to obtain oppor-
In the beginning of my remarks I conceded the magnitude
tunities to promote their own interests. Millions of them
of the obligation and the difficulties which will be encoun-
were walking the highways. Millions of them were gather-
tered in meeting that obligation, but I do not believe there
ing about the dens in the great cities of the Nation, for there
is anyone who hears me who agrees with the assertion of
were no other places for them to go. The Senator from
the Senator from Indiana that there has not been material
Indiana may tell the Senate but he will never convince the
improvement in the affairs of the people of this Nation
people of the United States that it was not a well-consid-
since the national recovery program was initiated.
ered action to gather together as many as possible of those
I am going to call as witnesses men who have not that
young men and to give them places of assembly and train-
bias and prejudice which the Senator from Indiana and
ing and service, useful service to the people of the country.
the Senator from Arkansas may be held to possess. I am
It is far better than to have them become tramps. It is
going to call, without regard to age, business, or politics,
far better than to have instilled in their hearts and minds
men who are known in this Nation and whose testimony
a spirit of rebellion and resentment.
will be accepted by all as worthy and credible.
It was a great work. Whatever one may think of the
I find a statement attributed to B. C. Forbes, a renowned
Civilian Conservation Corps program as a whole, it has per-
economist, published in the Washington Herald of Decem-
formed the purpose for which it was planned. It has taken
ber 8, 1933. The headlines are:
young men from spheres of life in which they might have
Optimism now found predominant among industry and business
become not only useless to themselves and their families,
chiefs. Mr. Forbes reports numerous hopeful signs of recovery.
but positive instruments for harm, and put them into or-
I desire to quote from the article, and I commend this to
ganizations where they will acquire a training which, in
my friend the Senator from Indiana, who is so dissatisfied
spite of the condemnation of the Senator from Indiana,
with what we are going through now, and who apparently
1934
CONGRESSIONAL RECORD-SENATE
193
is SO satisfied with what we went through before the 4th of
[From the Washington Herald Jan. 1, 1934]
March. The article states:
PENNSYLVANIA SHOWS IMPROVEMENT IN PAID EMPLOYMENT, SAYS
PINCHOT-GOVERNOR PLEASED AT TURN OF ECONOMIC AFFAIRS IN
After what we have been through during the last 4 years it is
KEYSTONE STATE SINCE FIRST OF LAST YEAR
good to feel that things finally are improving. Building contracts
reported for November are 54 percent ahead of last year. This is
(By Gov. Gifford Pinchot, of Pennsylvania)
the best comparison, statistically, we have yet had. However,
HARRISBURG, PA., December 31.-Definite improvement is shown in
dollar volume is still low, and percentage figures look large be-
employment and pay roll for nearly all Pennsylvania industries
cause they start from a small base.
since January 1, 1933.
Industrial production for the Philadelphia Federal Reserve Dis-
That, I find, is quoted by Mr. Forbes from a large business
trict has advanced nearly 28 percent since the low point of last
man interested in building. I ask that the whole article be
March.
printed in the RECORD.
The department of labor and industry estimates that, of the
approximately 1,310,000 persons unemployed last January, more
The VICE-PRESIDENT. Is there objection?
than 400,000 had returned to work in October. The Civil Works
There being no objection, the article was ordered to be
Administration will have many additional thousands working
printed in the RECORD, as follows:
before long.
The dollar volume of the weekly industrial pay roll in Pennsyl-
[From the Washington Herald, Dec. 8, 1933]
vania has advanced approximately 40 percent since last January.
OPTIMISM NOW FOUND PREDOMINANT AMONG INDUSTRY AND BUSINESS
The relief situation in Pennsylvania as of October 1933 may be
CHIEFS-FORBES REPORTS NUMEROUS HOPEFUL SIGNS OF RECOVERY;
summarized by the statement that there were 323,601 families on
FEDERAL EXPENSES ALARM FINANCIAL WORLD
relief and that the relief expenditures for that month were
$5,272,895.93.
(By B. C. Forbes)
Every possible effort is being made to improve conditions in
You can open a conversation with many a business man today
Pennsylvania. The key to recovery, of course, lies in increasing
without immediately drawing on your head a deluge of pessimism.
the purchasing power of the masses.
Were I to attempt to sum up the predominating attitude of busi-
Mr. ROBINSON of Arkansas. I also hold in my hand an
ness leaders today, I would express it thus:
The majority are more or less perturbed over some of the things
article attributed to the Governor of Iowa, printed by the
being done at Washington, but, nevertheless, they are hopeful that
Universal News Service, as follows:
nothing absolutely fatal to recovery will develop. Industrialists
[From the Washington Herald, Jan. 1, 1934]
are somewhat less doubtful than bankers. Many industrial com-
panies have enjoyed quite substantial improvement in earnings.
FEDERAL WORK HELP TO IOWA
In certain industries ruinous price cutting has been stopped; in
(By Gov. Clyde L. Herring, of Iowa)
others, abated.
DES MOINES, IOWA, December 31.-The economic condition in
The financial world is fairly well satisfied with the recent action
Iowa has improved materially since January 1 last, and is continu-
of stocks and bonds. But it is alarmed over the magnitude of
ing to improve.
governmental expenditures, the impossibility of foretelling what
The number of persons returned to work throughout the year
may happen to the Nation's currency, and the deadlock in capital-
have not kept pace with those losing out until within, perhaps,
raising interposed by the Securities Act.
the last 60 days, when corn husking and other seasonal work has
On balance, encouragement has an edge over discouragement.
taken up considerable of the slack. Civil works, public works, and
Running across B. G. Dahlberg, the extremely industrious main-
other governmental projects, including the C.C.C. camps, are help-
spring of the Celotex Co., I got from him yesterday these cheer-
ing us very much just now.
ful facts and figures:
My estimate as to probable increase of pay rolls since January 1,
Our business this quarter is running fully 50 percent ahead
as taken at this time, would, perhaps, amount to 20 percent.
of last year. Our own surveys convince us that we are going
At one time we had 53,000 families upon relief in Iowa; that was
to have a good 1934. There is to be extensive construction of
early in the spring of 1933. We now have about one half this
homes of the $2,500-$3,500 class. We are busy perfecting a type
number, although this will be materially increased within the next
of small home which will cost less than anything now available.
few weeks.
We have shown an operating profit since May."
My only suggestion as to continued improvement of conditions
The president of one of America's largest corporations inter-
would be whole-hearted cooperation with the plans and efforts
ested in building, told me yesterday:
being made by the National and State Governments to solve the
"After what we have been through during the last 4 years, it is
depression problem.
good to feel that things finally are improving. Building contracts
From the Governor of Arizona comes a message of even
reported for November are 54 percent ahead of last year. This
is
the best comparison, statistically, we have yet had. However,
more gratifying significance. I ask the privilege of inserting
dollar volume is still low and percentage figures look large because
that also in the RECORD, and shall not take the time of the
they start from a small base."
Senate to read it.
George I. Cochran, president of the Pacific Mutual Life Insur-
The PRESIDING OFFICER. Without objection, it is so
ance Co., states that California is participating in the general
national improvement. Although the oil industry has succeeded
ordered.
in modifying some of its evils, he feels that more should be done
The matter referred to is as follows:
to conserve this invaluable national resource.
[From the Washington Herald of Jan. 1, 1934]
He cannot see the wisdom of spending many millions of public
money on irrigation projects at this time when other millions
ARIZONA GOVERNOR SEES MANY ECONOMIC BENEFITS
are being paid farmers to destroy crops and reduce production.
(By Gov. Benjamin B. Moeur, of Arizona)
Mr. Cochran believes that the time has come for insurance
PHOENIX, ARIZ., December 31.-The economic condition in
executives to arouse their 66,000,000 policyholders to the im-
Arizona has improved materially since the beginning of last
portance of having the Government promptly stabilize currency
January.
on some feasible gold basis.
I am advised by the reemployment director for Arizona that
Says Andrew W. Robertson, chairman of Westinghouse:
9,360 persons have been employed recently. We expect 15,000
would like to sound the warning that Government should
men will be employed under the Civil Works Administration.
proceed with the greatest caution along the road of assuming
Ten thousand persons are now at work in our cotton fields.
activities which have been heretofore handled by private institu-
This, however, represents an alien class.
tions. All of our taxes, and they amount to approximately $100
This makes a total of 19,360 persons who have recently gone to
per capita, come from private enterprise sources. Private enter-
work, plus the additional 15,000 under Civil Works.
prise must thrive or there will be no taxes with which to pay the
expenses of government."
Mr. ROBINSON of Arkansas. The Governor of Wisconsin
Mr. ROBINSON of Arkansas. Here is an authority who
expresses his opinion in the following language. He says
I know will make the Senator from Indiana ashamed of
that notable gains have been made.
himself. It is the Governor of Pennsylvania, Mr. Gifford
Factory employment in Wisconsin has shown month-to-month
gains for 7 consecutive months past. From March 15 to Novem-
Pinchot. The headline is:
ber 15, factory employment increased 39.6 percent, while corre-
Pennsylvania shows improvement in paid employment, says
sponding factory pay rolls have increased 70.2 percent.
Pinchot. Governor pleased at turn of economic affairs in Keystone
Exclusive of persons receiving jobs or positions under Civil
State since first of last year.
Works Administration projects, approximately 55,000 persons were
added to pay rolls in Wisconsin between March 15 and
I will ask that that article also be printed for the special
November 15.
benefit of my friend, the Senator from Indiana, who, I
Even building construction on private account has shown some
improvement since midsummer of this year, according to figures
know, will hasten to read it.
reported by the F. W. Dodge Corporation. This industry de-
There being no objection, the article was ordered to be
clined from contracts totaling $163,000,000 in 1928 to $4,500,000
printed in the RECORD, as follows:
in 1932.
No. 4-4
194
CONGRESSIONAL RECORD-SENATE
JANUARY 8
Much of Wisconsin suffered from a severe drought in 1933, SO
Mr. ROBINSON of Arkansas. The Governor of Idaho
that crop and some types of livestock production are lower this
year than in the past several years.
says:
I ask permission to insert the entire article in the RECORD.
The economic condition of Idaho has improved very much since
January 1 last.
The PRESIDING OFFICER. Without objection, it is SO
Approximately 200,000 unemployed have returned to work
ordered.
since the beginning of 1933, but there are still an equal number
The article is as follows:
receiving relief.
To furnish employment for all the idle men and women in the
[From the Washington Herald of Jan. 1, 1934]
United States it is imperative that the buying power of the people
MAJOR ECONOMIC CHANGES TRANSPIRE IN WISCONSIN
be increased.
(By Gov. A. G. Schmedeman, of Wisconsin)
With respect to the Civil Conservation Corps, let me invite
MADISON, WIS., December 31.-Since the beginning of 1933, and
the attention of the Senator from Indiana [Mr. ROBINSON]
more especially during the past 7 months, we have witnessed
economic and social changes of major importance.
to an editorial published in the Washington Post on Decem-
At the beginning of 1933 Wisconsin factory employment totaled
ber 2, 1933. I do not think anyone will assume that the
about 57 percent of normal and pay rolls averaged about 33 per-
Washington Post is politically biased in favor of national
cent of normal.
recovery measures. I quote:
NOTABLE GAINS
Factory employment in Wisconsin has shown month-to-month
A JOB WORTH DOING
gains for 7 consecutive months past. From March 15 to Novem-
Aside from whatever practical value the Civilian Conservation
ber 15 factory employment increased 39.6 percent, while corre-
Corps might have-and the administration claims its fire-preven-
sponding factory pay rolls have increased 70.2 percent.
tion work has diminished timber losses by 60 percent in compari-
Exclusive of persons receiving jobs or positions under Civil
son with last year-President Roosevelt made a wise decision to
Works Administration projects, approximately 55,000 persons were
continue the camps another year.
added to pay rolls in Wisconsin between March 15 and Novem-
The enterprise need not be justified at all upon a self-sustaining
ber 15.
or partially self-sustaining basis. The idea behind it was to
Even building construction on private account has shown some
deal in some sane and practical way with the thousands of young
improvement since midsummer of this year, according to figures
men who, fresh out of schools, or thrown out of work, could not
reported by the F. W. Dodge Corporation. This industry declined
be absorbed into employment. They were roaming the country,
from contracts totaling $163,000,000 in 1928 to $4,500,000 in 1932.
thumbing rides and hopping freight trains-a restless, shifting
Much of Wisconsin suffered from a severe drought in 1933 so
mass of humanity chasing will-o'-the-wisp hopes of jobs. They
that the crop and some types of livestock production are lower
were beginning to constitute social and police problems every-
this year than in the past several years.
where. Their presence and their condition as larely victims of
GOOD CROP AREA
forces over which they had no control, constituted a challenge to
A region in the eastern part of the State, from Georgia Bay
alleviation that could not be ignored.
south and across the southern part of Wisconsin, has had fairly
Much of what they do may be wasted as far as conserving natu-
good crops. Much of central, western, and northern Wisconsin
ral resources is concerned. But the experiment is creating
has suffered so greatly from drought that agricultural production
national reserves of a better sort. The young men have come
is materially reduced.
through with healthier bodies and happier outlooks. At least
Farm prices have shown some improvement. In January the
they have not been abandoned to their own devices, which in
average in Wisconsin was 63 percent of the pre-war average, and
their despair might have bred lawlessness.
in October this index stood at 76 percent.
Certainly, with all the money we are putting into buildings and
roads, a minor investment in human beings is worth while.
Mr. ROBINSON of Arkansas. Then I have a message
from New Jersey showing various substantial increases both
That is the opinion of the editor of the Washington Post,
in the matter of employment and in relation to general
which I set over in comparison with the opinion expressed
business conditions. I will also insert in the RECORD that
by the Senator from Indiana.
article, which is by Governor Moore of New Jersey.
I have here a statement about the great State of Cali-
The PRESIDING OFFICER. Without objection, it is so
fornia. The Senator from California [Mr. JOHNSON], who
ordered.
is one of the most highly respected and honored Members
The article is as follows:
of this body, who has served his State and his country long
[From the Washington Herald of Jan. 1, 1934]
and well, gave out an interview expressing his opinion on
NEW JERSEY'S INDUSTRIES ON UPWARD SWING-GOVERNOR MOORE
the subject under consideration. The Senator from Cali-
CITES IMPROVEMENT IN CONDITIONS; ADVOCATES BACKING Up THE
fornia said:
PRESIDENT
I think we ought to go through with the public-works program.
(By Gov. Harry A. Moore, of New Jersey)
It is serving a good purpose. We have not appropriated enough
TRENTON, N.J., December 31.-Economic conditions in New Jer-
money to carry it out.
sey have undoubtedly improved greatly during the past year.
Many of the indexes show a considerable improvement. Employ-
About the N.R.A. the Senator from California said:
ment, pay rolls, department-store trade, electric power, and even
There is some kicking but a great deal of acclaim. The people
building contracts show an improvement during the year.
have a determination to carry on and go through.
The banking situation is improving. Many of the closed banks
As I see the situation now and as I regard the President, I
have reopened, and others are in process of reorganization.
will support him to the best of my ability.
The latest figures of the Department of Labor, as of October 15,
show that in 651 manufacturing establishments there was an in-
I ask that this article, which appeared in the Washington
crease of 34,000 persons employed since January 15 of this year.
Herald on December 14, 1933, be printed in full in the
Compared with October of 1932, the number of employees in
RECORD.
651 identical manufacturing establishments increased 32,700, or
21.6 percent; total weekly pay rolls increased $588,000, or 18 per-
The PRESIDING OFFICER. Without objection, it is so
cent. The index of employment in October 1933 was 80, as com-
ordered.
pared with 63.8 in March 1933, and 70.2 in October 1932. Em-
The article is as follows:
ployment in offices and in other industries has undoubtedly in-
creased, probably more or less in the same proportion as the
[From the Washington Herald of Dec. 14, 1933]
reporting manufacturing establishments.
The peak of emergency relief was in March, when 513,000 per-
IT'S ROOSEVELT OR HELL SAYS HIRAM JOHNSON-SENATOR PROM-
sons were receiving relief from our State emergency relief ad-
ISES SUPPORT TO THE BEST OF My ABILITY DENIES ANY JUDGE-
SHIP AIMS
ministration. At the end of October this had fallen to 363,000.
JOBS FOR 25,000
Either America is going through with President Roosevelt's pro-
The civil-works program has resulted in giving jobs to 25,000
gram that leveled human relationship on the basis of merit
persons, and New Jersey expects to fill its quota of 120,000 before
or the country is going to hell economically Senator HIRAM
the end of the year. The public-works program should be in full
JOHNSON, Republican, of California, declared on his return here
swing within a reasonable time, and this should result in many
yesterday.
jobs in our State, both directly and in connection with the
The Nation is passing through an economic revolution in which
fabrication of materials.
old methods no longer are countenanced and the effect is being
The general improvement in business in the entire Nation should
seen in a new alinement of political parties-a loosening of party
also be of great benefit to New Jersey, as our State is such an
regularity, he said.
important manufacturing center in almost every line of activity.
As to suggestions as to how conditions may be improved, I think
JOHNSON added:
they would be improved immeasurably if we would cooperate with
I think we ought to go through with the public-works pro-
the President and not try to injure the cause by destructive or
gram. It is serving a good purpose. We have not appropriated
sneering criticism.
enough money to carry it out."
1934
CONGRESSIONAL RECORD-SENATE
195
Asked about sentiment in his State toward the N.R.A., JOHN-
the Government, loses. If at the expiration of the loan the price
SON replied:
is above the loan figure, 45 cents a bushel, he may pay his debt
There is some kicking, but a great deal of acclaim. The people
and keep the difference. If the price is below the loan figure, he
have a determination to carry on and go through."
turns over the corn and is quit of his obligation.
Turning to the political situation, the Senator said:
SIGHT UNSEEN
The charming little coterie in New York that used to direct
the political destinies of the country no longer has control. I
To get the money only one principal condition is required of
don't think they will be able to dictate during the next 2 or 3
him, that he agree to sign a corn-hog production-control contract
years or even in a decade.
when the latter is offered him. Farm holiday leaders make the
The gentlemen in command prior to 1929 had no conception
objection that he doesn't know what that contract will contain,
of the needs of the country.
which is true so far as detail is concerned, but not as to its impor-
"As I see the situation now and as I regard the President, I
tant general provisions. The loan applicant is not inclined to sus-
will support him to the best of my ability."
pect the Government of trying to sell him a pig in a poke and the
Senator JOHNSON remarked that the gods of finance of 1929,
objection is not taken seriously.
whom we saw in disarray before the Senate Banking Committee,
What the farmer will do with his money when he gets it is illus-
have been stripped so bare that no longer need any of them be
trated by the use to which the wheat allotments have been put.
acclaimed."
There have been considerable debt paying and tax paying out of
the proceeds of the wheat checks, but merchants also are finding
Mr. ROBINSON of Arkansas. Here is a statement from
business better where payments have come in considerable volume.
the Governor of California, who expresses the opinion that
The opinion has been expressed that it will be a long time before
the national recovery program, particularly in relation to
any marked improvement in farm income is reflected in a consid-
erable volume of improvement in business, because a large part of
public works, is operating successfully and effectively.
that income will have to be applied to debt payment. In a
I have before me an article from the New York Times of
measure there is truth in this view.
December 3, 1933, written by Mr. Roland M. Jones, relating
One of the first concerns of the farmer, after supplying such
indispensable items of his living as clothing and food to supple-
to the effect of loans on corn in the West. I ask to have
ment the product of his garden, is to get his chattels out of hock.
that printed in the RECORD.
It is not only the land mortgage and its interest obligation which
The PRESIDING OFFICER. Without objection, it is so
have made the period of price deflation a hardship but there is a
large chattel-mortgage obligation to be liquidated as well. But
ordered.
local debt paying may be quite as important in revivifying the
The article is as follows:
commercial life of agricultural communities as a sudden increase
[From the New York Times of Dec. 3, 1933]
of buying.
MILLIONS IN LOANS CHEER CORN BELT-IOWA EXPECTS $40,000,000
Mr. ROBINSON of Arkansas. There is now submitted a
AND NEBRASKA $20,000,000 OF GOVERNMENT CASH-BUSINESS Ex-
letter from a lady in South Orange, N.J., dated November
PECTS BOOM-MIDDLE WEST FEELS IT Is No LONGER HEADED DOWN
HILL, BUT HEADED OTHER WAY
21, 1933, in which she expresses faith in what she is pleased
(By Roland M. Jones)
to term the new deal", and criticizes some representatives
OMAHA, NEBR., November 29.-Notwithstanding recent evidence
of the Republican Party for their efforts to wreck the na-
of a contrary mood, the Corn Belt generally is sensible of ample
tional recovery program. I ask that the letter may be
reason for thanksgiving. It is measurably better off than it was at
printed in the RECORD.
this time a year ago, and it faces the future with a large degree of
public confidence in the prospect for further material improve-
The PRESIDING OFFICER. Without objection, it is so
ment. There is a definite feeling that it is facing the other way,
ordered.
that it is no longer headed downhill with the brakes out of com-
The letter is as follows:
mission, but that it is once again climbing, even if somewhat
jerkily and with the necessity of blocking the wheels and getting
FAITH IN NEW DEAL-REPUBLICAN BLAMES OUR ILLS ON PAST
out to shove once in a while. Hence it brings a fairly full meas-
MANAGEMENT
ure of response in the traditional spirit to the annual proclama-
To the New York Herald Tribune:
tion for a Thanksgiving Day.
In the expression of that spirit, thought turns naturally to the
Loud applause for your liberal spirit in publishing the critical
letter of Citizen' and those which followed. Born and bred a
President and his leadership in the national movement for the
promotion of recovery. A straw indicative of the coupling of the
Republican' gives one a right to fight in one's own camp, and I
resent the attitude of those dyed-in-the-wool G.O.P.'s who preach
administration with whatever cause there is for gratitude is fur-
nished in a newspaper symposium on the holiday and its meaning.
as though all our ills have come since March 4. The truth is
Half the responses coupled Roosevelt by name with the subjects
that we are suffering now from the management of the econo-
for thanksgiving. With some there was a personal reason. A home
mists, politicians, and business men who did nothing to stem
or a farm had been saved from foreclosure and the debt upon it
the tide of disaster which has deluged us since the blows fell in
1929. Not until the new deal started was the flood of ruin
refunded on easier terms, or there was a job directly traceable to
turned into channels which could take care of the refuse.
one of the administration recovery plans, and the prospect of a
snug winter instead of a place in the bread line. Mostly it was
Why not put the blame in the past, where it belongs, and re-
just the expression of continued confidence.
member that our present condition has been bettered month by
Directly or indirectly, the Corn Belt has reason to be thankful
month as new ideals are at work to change the outrageous struc-
to Washington for many ways in which it has been helped to bear
ture of the old conceptions of government in all phases of our
its troubles. The agencies for relief and recovery have initialed
history, including business, economics, banking, and the ramifica-
their way into the consciousness of a good many people in a good
tions of former finance, both at home and abroad? The new era
many parts of the Middle West. But the greatest measure of
may lead to reconstruction in all our relations with each other.
relief, that which most nearly approaches universal application,
What if there are faults in the ideals of our present leaders? They
came simultaneously with the Thanksgiving season in completion
confess this themselves and hope to remedy errors in time.
of the set-up for the corn loans and the introduction of a new
The President has used a delicate but mighty lever to change
some conditions which have been futilely attacked for decades. It
combination of initials, the C.C.C., representing the Commodity
Credit Corporation.
is an astounding piece of history.
Again, who's afraid of the big, big dollar? When we are for-
MILLIONS IN LOANS
tunate enough to get one it buys more than it did years ago.
How much the corn loans will bring immediately into this region
Cheap goods flood the stores, and we pay only a few cents more
is, of course, a matter of conjecture. It all depends on how press-
for several articles of food. Our troubles came before the new
ing are the needs of the farmer and how much of his corn he is
deal, when our securities either cut dividends or dropped them.
willing to impound to get cash at once. It has been estimated
Our real estate went down in value long before, and we get about
that the loans will run to $40,000,000 in Iowa and from $15,000,000
half the rents we once received. Our taxes, then as now, are
to $20,000,000 in Nebraska. The release of this sum, or such of it
mainly on real estate and contribute to the waste and extrava-
as can be expected to be applied to current debts and new pur-
gance of State and municipal governments.
chases, is expected to have a quickly stimulating effect.
Again I emphasize, put the blame where it belongs and not on
The first loans have been made, the main object being to deter-
the superhuman efforts of those who are trying to lead the way
mine how rapidly the routine could be disposed of and the cash
out.
become available to applicants. The results were wholly satisfac-
KATE LOUISE ROBERTS.
tory. They demonstrated that a loan can be put through with a
SOUTH ORANGE, N.J., November 21, 1933.
minimum of delay. With organization complete and the coopera-
tion of the local banks in handling the loans which may be redis-
Mr. ROBINSON of Arkansas. I have here an article
counted with the C.C.C., the money should be going into the hands
which appeared in the New York Times under date of Jan-
of farmers in considerable volume before this time next week. It
will depend largely on how rapidly inspectors and sealers are able
uary 7, 1934, urging Members of Congress to support the
to certify that the requirements as to cribbing and sealing the corn
President, and giving the reasons for urging that support.
have been met.
I ask that the article be inserted in the RECORD.
From the farmer's standpoint it is the kind of loan he has
The PRESIDING OFFICER. Without objection, it is so
dreamed about, but never hoped to have offered him. It is a case
of heads he wins and tails the creditor, which in this case will be
ordered.
196
CONGRESSIONAL RECORD-SENATE
JANUARY 8
The article is as follows:
The article is as follows:
[From the New York Times of Jan. 7, 1934]
[From the New York Herald Tribune, Jan. 7, 1934]
FLOOD OF LETTERS. URGE CONGRESSMEN TO BACK PRESIDENT-MEMBERS
NO FEAR OF TYRANNY-LIFELONG REPUBLICAN TRUSTS MR. ROOSEVELT;
OF BOTH PARTIES ADMIT OPENING MESSAGE INCREASED HIS Popu-
DOES NOT SEE CONSTITUTION IN DANGER
LARITY-REPUBLICANS ARE WARNED-FORMER REPRESENTATIVE SAYS
To the New York Herald Tribune:
AN ATTACK ON ROOSEVELT Now WOULD BE DISASTROUS
Is our Federal Constitution in danger? The Honorable JAMES M.
WASHINGTON, January 6.-President Roosevelt's hold upon the
BECK, one of our most distinguished lawyers in public life, seems
American people is amazing to Republicans and astonishing'
to think it is. His fears are aroused by the unusual grants of
to Democrats. That his popularity is increasing and that his per-
almost unlimited power given to President Roosevelt by Congress.
sonal address to Congress on Wednesday is bearing fruit was
But this grant of power is by the freely chosen representatives of
admitted on both sides in the House today.
the people and for a limited period. The President did not
The flood of letters and telegrams to Congressmen in the wake
demand the power. He showed his willingness to use power if
of his Wednesday address which politicians say was specifically
given to him by the people, and we rejoiced in his courage, and
addressed to the people of the country is increasing daily. They
that is what he was elected for.
all urge the individual Members to stand by the President in
Should his judgment err in the use of that power, or should
whatever he desires.
he misconceive its purpose and seek personal advantage from it,
One unusual explanation of Mr. Roosevelt's popularity comes
the power can be taken away as easily as it was given, and most
from a dyed-in-the-wool Republican, former Representative Mal-
surely it will be taken from him. No President has heretofore
colm Baldrige, of Nebraska, and it cautioned Republicans that any
dared to infringe on the basic element of our form of govern-
broadside attack upon the President at this time would be
ment, the individual and equal sovereignty of each citizen to
disastrous."
think freely, vote freely, and have his vote counted fairly and
MR. BALDRIGE'S LETTER
openly. The slightest indication of such a thing in a President
The text of his letter, addressed to Representative ANDREWS, of
is all the people need to put a stop to it.
Buffalo, an old friend of Mr. Baldrige, reads:
Witness President Wilson's mistaken demand that none but
[Law offices Dorsey & Baldrige, Omaha National Bank Building]
Democrats be elected to Congress. His power waned from that
moment, in spite of everything. Witness also the result of Presi-
OMAHA, NEBR., January 3, 1934.
dent Theodore Roosevelt's mistaken idea that he was the one and
Hon. W. G. ANDREWS, M.C.,
House Office Building, Washington, D.C.
only man for the time. He, too, failed, in spite of his personal
popularity and past accomplishments.
My DEAR HAM: I am constantly inquiring from people in all
walks of life in this part of the country concerning the present
It seems to me that no one familiar with American history,
familiar with the Federalist or Madison's journal, or, last but
financial situation, and I thought you might be interested to just
not least, Mr. BECK'S own splendid work on the Constitution,
get a slant on how I think the people feel out here. Everyone is
need have the least fear that Americans will submit to even the
impressed with the activity of the Democratic régime and with the
appearance of tyranny in a President.
money pouring in on various projects and our streets filled with
Power the President must have, and the greater the stress the
men working who have been out of jobs for 2 years, the Demo-
cratic control is still at its height and the almost warlike hysteria
greater the power to meet that stress he must have, in the very
is still in full force in this part of the country.
nature of things. And also, in the very nature of things, the
The question of where is all of the money coming from is not
necessary power will flow to the executive head of a government,
yet pertinent, and is too far off and too intangible to be seriously
whether he wants it or not, or whether it is voluntarily given to
him or not.
considered by the mass of the people. This cannot keep up for-
The one thing Americans want is that the President use his
ever, and when there is a letting down there will be a decided
power unselfishly, and the eyes of every citizen are upon him
reaction, but at the present time any broadside attack on the
President or his policies, I think, would be disastrous. The sur-
and he knows it. Courage we know he has. Wisdom we hope he
has. Right purpose we believe he has.
prising thing to me is the universal resentment of anyone attack-
Hatred of tyranny is as strong today as in the days of Tacitus.
ing the present relief programs. Even our most conservative and
It is as strong here as in England, and it is no more possible here
leading people who have been stanch Republicans feel this way,
than in England. When Americans cease to take an interest in
and the man on the street feels it much stronger.
politics-4ocal, State, and National-then, as always in the past,
I certainly will be with you in heart and spirit at the open-
tyranny or dictatorship will, must, and ought to come; for above
ing of the session. You know I do not mean to presume by giv-
all things we must have order.
ing you any advice, but I did feel that you might be interested
In my humble opinion Americans are less subject to tyranny
in getting the real lowdown from someone who is in a position to
today than ever before in our history. On the other hand there
know and who is vitally interested in your personal future and in
is a deeper and more flexible and more rational understanding
the future of our party.
among all of us of the nature of the stress under which our coun-
I have sent this same letter to several of my good friends in
try is now existing and a broader understanding among us of the
Washington, and you may be sure that at the next congressional
necessity of economic cooperation.
election, although I am not running myself, I will be in the thick
If our country and our liberties \have survived the "tyranny"
of the fight to send as many Congressmen back from Nebraska to
shouted aloud against Washington, Jefferson, Jackson, Lincoln,
the Republican side as possible.
Theodore Roosevelt, and Wilson, it seems reasonable to hope that
With kindest personal regards and best wishes for a happy and
the country and our liberty will survive Franklin D. Roosevelt,
prosperous New Year, I am,
whose sincerity and high-mindedness no one can doubt, regrettable
Very truly yours,
as it is, of course, that he happens to be a Democrat.
MAC.
As a lifelong Republican, you will, I trust, believe me sincere.
SUPPORT AMAZES RAINEY
JOHN W. REMER.
Mrs. FLORENCE P. KAHN, of California, another stanch Repub-
NEW YORK, December 30, 1933.
lican, said that she had not received instructions to support
the President's suggestions.
Mr. ROBINSON of Arkansas. An article from the Wash-
" But it is truly amazing the way the country is for him she
ington Times under date of January 1, 1934, is headlined
admitted.
" Dividend increases held amazing N.R.A. development."
Belief in the President's hold upon the country was expressed
I ask to have that article printed in the RECORD.
today by Speaker RAINEY after a visit to the White House. He
was asked if he thought there would be silver legislation, and if
The PRESIDING OFFICER. Without objection, it is so
it would pass.
ordered.
If the President wants it, yes," he replied.
The article is as follows:
Will there be a sentiment against tariff legislation?'
Not if the President wants tariff authority."
[From the Washington Times of Jan. 1, 1934]
After other similar questions, Mr. RAINEY exclaimed:
DIVIDEND INCREASES HELD AMAZING N.R.A. DEVELOPMENT-EVERY
" You might as well know it: nothing is going to pass here
UNIT IN SEVERAL LINES REPORTS GAIN IN EARNINGS
except what President Roosevelt wants."
(By Jonathan Wickwire)
Humor and pathos are included in the messages that come to
Congressmen from their constituents. One of the most loyal
This observer finds the most amazing development of the Roose-
came to Mrs. Rainey, wife of the Speaker, who has received 118
velt recovery program not in reemployment figures, agricultural,
letters herself since President Roosevelt addressed Congress.
and industrial commodity price advances, widely exploited in
I am sending you the deed to my farm the writer told Mrs.
the public prints, but in the notable increases in earnings and
Rainey.
dividend payments reported by corporations in the third and
final quarters of the past year.
Mr. ROBINSON of Arkansas. From the New York
BURIED IN OBSCURE REPORTS
Herald Tribune there has been clipped an article by John W.
Probably this recovery phase has impressed itself the more upon
Remer, under date of January 30, 1933, stating that a life-
this writer because of its very obscurity, the facts relating to it
long Republican trusts Mr. Roosevelt and does not see that
being obtainable only by digging through dry-as-dust reports and
compilations generally inaccessible to the hurried lay reader, even
the Constitution is in danger. I ask that the article be
if he were disposed to conduct the necessary research.
inserted in the RECORD.
The fact that entire industries, each comprising scores of indi-
The PRESIDING OFFICER. Without objection, it is SO
vidual units, have reported, without exception, earnings increases
ordered.
running into uncounted millions, while in other industries the
percentage of companies reporting improvement has fallen only
1934
CONGRESSIONAL RECORD-SENATE
197
a little under 100 percent. This fact has not escaped the observa-
Mr. ROBINSON of Arkansas. Mr. William H. Fort pub-
tion of other discerning writers nor entirely failed of popular
lished a statement under date of December 23, 1933, in which
presentation.
REVELATION BY GOULD
he asserts that the gain in prosperity is reflected by increase
Thus, Leslie Gould, financial editor of the New York Evening
in travel, and sets forth facts which he deems pertinent to
Journal, in a recent illuminating and detailed article, summarizes
that contention. I ask to have the article printed in the
his findings as follows:
RECORD.
While the ratio of corporations to show improved earnings in
the third quarter of this year, as compared with the corresponding
The PRESIDING OFFICER. Without objection, it is SO
period in 1932, is better than 3½ to 1, six major lines of industry
ordered.
have so far turned in a perfect score. All of the companies so
The article is as follows:
far to report had greater profits than a year ago.
These industries are: Automobiles, motor-car accessories,
TRAVEL GAIN SEEN PROSPERITY SIGN-OCEAN LINES ADD SHIPS FOR
WINTER CRUISES TO MEET DEMAND
chemicals, electric equipment, leather, and food. They are the
banner lines, but running them a close second are building ma-
(By William H. Fort)
terials and supplies, metals, including mining, motion pictures,
NEW YORK, December 23.-Besides the increased sales of depart-
oils, railroad equipment, coal, and steel."
ment stores for the holiday trade, the booster reports of sales-
But earnings increases are not enough. These must be trans-
men returning from their final trips of the year on the road, re-
lated into net income before they satisfy the management and,
ports of increased employment in the greater metropolitan district
even more important, the bankers.
and the promise of many thousands more jobs to be allotted in
CONVERTED INTO DIVIDENDS
the near future by the Civil Works Administration, other indica-
More, they must be transmuted into dividends before the real
tions continue to crop up here to bolster the opinion that the
depths of the depression have been passed, and business again IS
owners, the vast multitude of stockholders, reap any readily ap-
on the upswing.
preciable benefit-any money income that they can spend for needs
One definite indication pointed to as an accurate barometer of
or luxuries-money which, so spent, will help further to speed the
returning prosperity is the increase in ocean travel. There had
whirling wheels of commerce, make more jobs, and by increasing
been some fears expressed by officials of steamship lines that lack
demand help raise prices for farm and other products.
of money would keep the public at home during the winter
Increased earnings may simply mean that a company has cut
months and force the lines to curtail their winter cruise plans.
down a deficit; that income has improved sufficiently to cover bond
There were also predictions that the coming of repeal, removing
interest, or a part of it, or, maybe, that earnings have risen
the necessity of leaving the United States to get a real drink
enough so that a small balance is left, after charges, to carry the
would cause a further falling off of tourist travel.
surplus account. All very excellent, no doubt, and of exceeding
However, the fears of the ship line officials and the repeal pre-
great interest to the management and to bondholders, principally
dictions have proved to be ghosts, and a survey of 22 of the larger
insurance companies and banks.
trans-Atlantic and coastal shipping lines shows that the public is
Highly important to everybody, of course, indirectly, for every-
digging money out of the old sock and is spending it freely. In-
body is interested, vaguely, perhaps, but none the less surely in
stead of cutting down their winter-cruise schedules the lines have
the solidity and strength of these institutions, and the welfare of
had to add to them in many cases.
millions is closely dependent on their profitable maintenance.
CHRISTMAS CRUISE
CASH MONEY WHAT COUNTS
The French Line ship Lajayette, for instance, left port for a 12-
But cash-money dividends, convertible at will into any of their
day cruise through the East Indies with more than 400 first-class
innumerable requirements, are what the stockholders want. And
passengers aboard, who will spend both Christmas Day and New
they are getting them-regular, special, extra, increased, accumu-
Year eve at sea. The Furness-Bermuda Line also reports that
lated-in floods.
"winter tourist travel has definitely turned the corner and is very
A fair cross section of what is happening was presented in
much on the upswing." Officials of that line today are sending
an International News Service dispatch printed in these columns
out their two sister ships, the Queen of Bermuda and the Mon-
on December 9, the gist of which is contained in the following
arch of Bermuda, loaded to capacity, headed for a 9-day cruise to
excerpt:
Bermuda and Nassau, carrying 1,500 first-cabin passengers.
Stockholders in 69 American corporations will receive an in-
On the same day the Holland-American Line ships Statendam
crease of $55,691,540 in the income from their investments through
and Rotterdam will also steam out to sea with capacity loads, car-
larger dividend declarations by these concerns since November 1,
rying 1,200 passengers on a 15-day cruise to South America and the
a survey revealed today.
West Indies. On these four ships alone, according to ship-line
Forty-two companies have resumed or initiated dividends rep-
officials, there was a waiting list of almost 1,000 persons-some-
resenting disbursements of $28,040,498 to stockholders.
thing unheard of in ocean travel during the last 4 years.
"A group of 20 companies has declared extra dividends totaling
Other trans-Atlantic lines-the Cunard, Italian, United States
$24,183,639.
Lines, Swedish-American, the North German-Lloyd, and Ham-
In addition, nine other companies have increased regular rates
burg-American among others-with long- and short-time cruises
net by $3,467,403 for the current payment."
to offer, report exceptionally heavy bookings, far in excess of last
This pertains only to actual increased dividend declarations
year.
during a period of 30 business days among corporations listed on
Mr. ROBINSON of Arkansas. An article by James T.
the stock exchanges. It takes no account of hundreds of regular
dividend payments made during this period by listed companies,
Williams, Jr., is entitled Civilian Conservationists Brighten
nor of thousands of unlisted firms and partnerships that divided
300,000 Homes." I read from this article a statement at-
normal or increased profits during that time.
tributed to a member of one of the organizations:
FIRMS LISTED BY HUNDREDS
To give an adequate conception of what the C.C.C. has done
The current Dow-Jones dividend record occupied nearly four
for me, I am impelled to describe the background leading up to
columns of agate type in the Wall Street Journal of December 16
my connection with it.
and contains the names of 586 firms listed on the New York Stock
First, imagine yourself as a young man of good family, well
and Curb Exchanges. Of these, 65 reported increases over the last
educated, happy, prosperous, and surrounded by everything that
previous announcements.
makes life worth while.
Before the period covered by the above International News
Then imagine yourself torn from this environment and driven
Service article, back in September, and still more in October, the
like a hunted dog through 4 years of unemployment, hunger, and
resumption and increase of dividends was becoming noteworthy.
famine, ending in the complete and utter degradation of a home-
Since it was printed, 43 firms coming to the notice of this writer
less bum.
alone have announced dividend improvements, putting the total
I was losing faith in everything that goes to make life worth
net gains to stockholders in the past 6 months far above the
while. The day a social worker met me in a Springfield (Ill.)
$100,000,000 mark.
flop house and persuaded me to join the C.C.C., was a turn-
PROFITS SPREAD WIDELY
ing point in my life. I was almost a physical wreck. Within 30
days I gained 30 pounds in weight. As a citizen I am trans-
That improved profits are not confined to listed corporations, to
formed. Government is a hateful thing to a bum. It has re-
materialize in dividends, but are shared and being distributed by
moved from my door the specter of want.
partnerships and companies in merchandising and other lines
What more natural than that my old radical tendencies are
which never have attained, or aspired, to a stock-exchange listing,
being replaced by the stirrings of some of the finer attributes of
is shown by the Federal Reserve Board report on retail-shop gains
good citizenship? In forestry I have for the first time found work
in November, on which a Wall Street Journal writer comments as
that appeals to me. Life in the C.C.C. has restored my faith.
follows:
Spiritual life cannot exist for a man forced to live like a famine-
" From the retailers' viewpoint the important factor is that good
driven wolf.
profits are being earned even at the current level of dollar sales."
Another evidence of the general permeation of increased profits
With the permission of the Senate, I will print the entire
throughout business is contained in the banking reports, usually a
article in the RECORD as part of my remarks.
fair barometer of rising or falling trade conditions. Up to Decem-
ber 20 quarterly dividends amounting to $19,252,937 had been
There being no objection, the article was ordered to be
declared by 18 of the 25 dividend-paying New York banks, bring-
printed in the RECORD, as follows:
ing the total for the year, up to that time, to $82,457,937. Others
CIVILIAN CONSERVATIONISTS BRIGHTEN 300,000 HOMES
in sight were expected to bring the final total to $85,000,000, only
20 percent below the 1932 figure, in spite of the bank holiday
(By James T. Williams, Jr.)
which eliminated some big payers of last year and made the going
Christmas Day was the brighter in 300,000 American homes
more or less difficult for the survivors.
because, by prevailing upon Congress to provide for the establish-
198
CONGRESSIONAL RECORD-SENATE
JANUARY
8
ment of the Civilian Conservation Corps, President Roosevelt was
wind could turn him back. When a young man, he told me, he
able to give 300,000 Americans a new start in life.
had been an Alpine guide. One day in a party of six men with
The high expectations of the President in proposing this new
rope and pickax he had climbed some 5,000 feet down a granite
national enterprise to Congress have been more than realized in
cliff, and on a narrow ledge near the foot they found that an
all the 1,300 conservation camps that have been established all
avalanche had made it quite impossible to descend to the bottom
over the United States.
that way, and so they must climb back up to the top.
The President predicted that the type of work that the Civilian
Tired and hungry they clung to that ledge, and he said that
Conservation Corps would do would prove of definite practical
fear took hold of him, a cold sweat came and he shut his eyes.
value, not only through the prevention of great financial loss, but
But then he sent a call for help straight out into the universe,
also as a means of creating future national wealth."
and very soon from deep inside, as though in answer to his call,
SPIRITUAL VALUE
he felt such a will for living that he rose to his feet like a man
"The Civilian Conservation Corps", he said, will conserve our
and led his five companions through weary hours foot by foot up
precious natural resources. It will pay dividends to the present
that mighty cliff of rock to life and safety at the top. And he
and future generations. It will make improvements in the na-
believed that force had come from the God asleep in every man,
tional and State domains which have been largely forgotten in
which needed only calling on to stir a man to miracles.
the past few years of industrial development."
Here in America, if we mean to climb the great cliff of this
But the Civilian Conservation Corps is doing more than this, as
depression up to a safe national life, each one of us will have to
President Roosevelt said it would. More important", he said,
call upon that force within ourselves. For no man can climb this
than material gains will be the moral and spiritual value of such
cliff alone. It needs a whole nation climbing together, with every-
work. The overwhelming majority of unemployed Americans who
one of us doing his part. This is a time for mutual aid-and
are now walking the streets and receiving private or public relief,
every victim of these hard years whom we lift back up into life
would infinitely prefer to work."
means so much accomplished for us all.
The President's faith in the rank and file of his fellow citizens
There will be more such victims in these next months than ever
is fully shared by the Army officers who command the conservation
before because, though more people are at work, the strain and
camps throughout the country. The applications for membership
privations of 4 years will take at the end their heaviest toll. Here
in the corps far exceed the quota of the several States. Thousands
in New York in the winter ahead there will be hundreds of thou-
of letters received by the Government from the young men attend-
sands of men, women, and children sick, and many will die unless
ing these camps afford convincing evidence that the moral and
we give aid. Relief agencies will supply food and shelter, but they
spiritual value' of their work are even exceeding the material
cannot care for the sick, nor can the hospitals take them all in.
gains to the Nation.
The Henry Street visiting nurses will be called upon to take
All of these letters are intensely human documents. Several of
care of the rest. All through the depression it has been so.
the best of them appear in the current issue of American
Accepting cuts in salary cheerfully when funds were low, with a
Forests which is published by the American Forestry Associa-
staff smaller than before and the number of their patients in-
tion. This association offered prizes for the best letters written
creased from 60,724 in 1929 to over 100,000 now in every quarter
by enrolled members of the Conservation Corps on the subject,
of Greater New York, without distinction of race or creed, they
What the Civilian Conservation Corps Has Done for Me."
have given expert, devoted care to those who called to them for
These letters form a remarkable narrative of human experiences.
aid. I have known them and have seen them at work. It is
They are the best spoken evidence thus far available of the real
heavy work by day and by night-into crowded tenement rooms
value of the Civilian Conservation Corps to the youth of America
and up and down dark tenement stairs. Many last year grew ill
and to the thousands of homes which they left for the road, in
from the strain, yet still they kept courageously on.
search of work to help relieve distressed parents.
But they cannot do it without our support. Of the budget for
From a conservation camp in Illinois, a member of the corps
this year more than half is now at least in sight, but unless we
writes:
raise $300,000 more, then in the cold months ahead they will be
To give an adequate conception of what the C.C.C. has done
forced to turn down all but the most urgent calls for help. Will
for me, I am impelled to describe the background leading up to
you stand behind them now? They are worth it, for they have
my connection with it.
that inner force of which I learned long ago on the St. Bernard.
First, imagine yourself as a young man of good family, well
One of them the other day told of a patient who had it, too-a
educated, happy, prosperous, and surrounded by everything that
little girl with wasted body, but with bright, black, strong little
makes life worth while.
eyes, who for weeks had fought to keep alive and was at last
Then imagine yourself torn from this environment and driven
recovering.
like a hunted dog through 4 years of unemployment, hunger, and
What do you want for Christmas?' asked the nurse, and the
famine, ending in the complete and utter degradation of a home-
answer came like a flash. I want my life back again ", she said.
less bum.
Just you get me out of this bed and I'll tend to all the rest
TURNING POINT
of
it."
"I was losing faith in everything that goes to make life worth
And she will, too. She is that kind. Let's give her back her
while. The day a social worker met me in a Springfield (Ill.)
life at Christmas. Let's not desert such children now. No matter
flop' house and persuaded me to join the C.C.C. was a turning
how hard it may be to give from incomes that have dropped so low,
point in my life. I was almost a physical wreck. Within 30 days
let's try to keep on doing our parts in the slow and dangerous
I gained 30 pounds in weight. As a citizen I am transformed.
climb up the great cliff to brighter days. It's hard to be poor and
Government is a hateful thing to a bum. It has removed from
out of a job, but it's awful to be sick as well. So please give all
my door the specter of want.
that you possibly can.
What more natural than that my old radical tendencies are
ERNEST POOLE.
being replaced by some of stirrings of some of the finer attributes
NEW YORK, December 19, 1933.
of good citizenship? In forestry I have for the first time found
work that appeals to me. Life in the C.C.C. has restored my faith.
Mr. ROBINSON of Arkansas. In the New York Herald
Spiritual life cannot exist for a man forced to live like a famine-
Tribune of December 23 there is an interesting sidelight cast
driven wolf."
on what the people of the country think of the President.
From a camp in New Mexico comes the record of a home and
The headlines are:
harvest saved by the money sent back by one of the younger
members of the family from his earnings as a member of the
Roosevelt's Mail Ten Times Any Predecessor's; 25,000 Christmas
Civilian Conservation Corps. "I feel we are doing a great work
Letters and Bundles Descend on the White House.
he writes. I know we are helping thousands of worthy but poor
parents and paving the way for the generations to come."
Ah, Mr. President, when Christmas time came a few days
During his campaign his proposal to set up the Civilian Con-
ago there was a demonstration in this country that is well
servation Corps brought Mr. Roosevelt the criticism and ridicule
worth recalling. From limit to limit of the Nation there
of his political opponents.
were evidences of returning prosperity and happiness. The
In 300,000 homes this Christmas season the President is receiv-
ing the gratitude of the family for the national benefaction which
fact that the President was remembered by 10 times as
the Civilian Conservation Corps has proved to be.
many citizens as ever remembered one of his predecessors is
Mr. ROBINSON of Arkansas. With the permission of the
a complete answer as to how the public regards him, an
Senate, I will print an article from the New York Times
answer to the denunciations of the President by the Senator
from Indiana.
under date of December 25, 1933, entitled Climbing Out
of the Depression by Ernest Poole.
Mr. President, I could continue indefinitely quoting arti-
There being no objection, the article was ordered to be
cles by news writers and editorials from newspapers, ex-
printed in the RECORD, as follows:
pressing opinions directly contrary to that asserted by my
good friend, the Senator from Indiana, and contending that
[From the New York Times, Dec. 25, 1933]
there has been a marked advance in national recovery. God
CLIMBING OUT OF DEPRESSION-HENRY STREET VISITING NURSES NEED
AID TO HELP OTHERS
knows things and times are bad enough yet, and all who are
To the EDITOR OF THE NEW YORK TIMES:
genuinely interested in our finding the way out should give
In these swift days of crisis I often wish that more of us could
their best cooperation and support.
rouse to life that inner force of which I heard long ago in the
Of course, if we divide among ourselves needlessly, if we
Alps at the top of the great St. Bernard-from a gigantic old
monk who through nearly 40 winters had gone out into storms
resort to bitter partisan politics, if we take advantage of
with the huge dogs to rescue travelers lost in the snow. No icy
every mistake that has been made-and there have been
1934
CONGRESSIONAL RECORD-SENATE
199
mistakes made and there will be mistakes made-if we capi-
COMMODITIES TURN ACTIVE DURING 1933-CONTRACTS TRADED IN
YEAR TOTAL THREE FOURTHS OF BILLION DOLLARS
talize them, and minimize the good that has been done, just
(By Jerome Lewine, president Commodity Exchange, Inc.)
to that extent we shall retard the advance of the American
NEW YORK, December 30.-The past year-a notable one in the
people toward national recovery.
history of commodities generally-has been conspicuous for the
I have never been one who believed that prosperity is
activity on Commodity Exchange, Inc., and has justified the belief
solely in the keeping of public officers or is to be found alone
of the organizers of this consolidated exchange that its central-
ized functions would prove of definitely greater value to the com-
in political measures. Everyone who has studied the course
modity producers and the trade than had the separate silk, metal,
of the Nation during recent years realizes when the orgy of
rubber, and hide exchanges.
speculation in 1929 broke and financial institutions began
Trading volume became most marked following the physical
to collapse that there followed a period of distrust, of un-
merger of the constituent groups under one roof on July 5, and
has continued in large volume, with relatively few interruptions,
certainty, of hoarding, and despondency, and to the extent
up to the present time. Increased prestige has developed for the
that there still exists lack of confidence and faith, we have
exchange as its work and service of information to the trade be-
our difficulties. We will continue to have them until the
came better known, and as the centrally organized facilities of
this market made possible a more rapid and efficient turnover.
spirit of the American people shall be so revived that they
The consolidation was without precedent, and it resulted in
will take the initiative and go forward without an impulse
creating what is now one of the largest commodity exchanges in
from the National Government.
the world, and the only exchange on which are traded six basic
commodities used or consumed throughout the Eastern and West-
There is attached to the measures constituting this na-
ern Hemispheres.
tional recovery program a fearful responsibility; the pro-
NINETEEN COUNTRIES INCLUDED
gram is intimately associated with great efforts and events;
Members now include important financial and commercial in-
it is inseparably connected with problems that are here-
terests in 19 countries-the United States, France, England, Hol-
after to arise; but the President's Budget message points
land, Canada, China, Germany, Switzerland, Mexico, Japan, Bel-
gium, Italy, Argentina, Australia, Czechoslovakia, Egypt, India,
a way out. He recognizes that we are spending a very great
Scotland, and Spain.
sum during the present fiscal year, and are creating an
The exchange is now carefully considering the possibilities for
enormous deficit in the Budget, and that that deficit will
trading in other commodities. The addition of these would en-
be still further augmented next year; but it is his belief that
large the scope and volume of trading substantially, and would
have the desirable effect of further extending the benefits of its
if we go forward with the program there will come a
facilities to additional industries and trade groups.
sufficient revival of business and industry to enable us com-
The efforts of the national administration to raise commodity
pletely to balance the Budget during the third year; and
prices have been more or less simultaneous with the growth in
volume of trading in silver, rubber, silk, copper, tin, and hides.
if we can do that, we will have done well, in spite of the
FUTURES TRADING GOOD
criticism and denunciation of the Senator from Indiana.
Trading in futures has been of unquestioned benefit to these
Mr. President, I now formally ask to have printed in the
various industries and commodities through the system of hedg-
RECORD the several articles to which I have referred.
ing or price insurance developed by the exchange and its con-
The PRESIDING OFFICER (Mr. POPE in the chair).
stituent groups. Thus far the exchange has by careful self-
discipline and complete cooperation with the governmental au-
Without objection, it is so ordered.
thorities avoided that public criticism which leads to governmental
The articles referred to are as follows:
investigation. It has been our policy to cooperate in every way with the public
[From the Washington Herald of Jan. 1, 1934]
authorities and so to conduct the work of the exchange as to
VAST PROJECTS INSURE UPTURN IN CALIFORNIA-CENTRAL VALLEY
keep it free from the need for any investigation or regulation by
WATER PROJECT ALONE MEANS 25,000 JOBS ASSURED FOR 4-YEAR
the Government.
TERM
The unusual problems arising from the closing of the exchanges
(By James Rolph, Jr., Governor of California)
during the banking holidays and from sharp price fluctuations
SAN FRANCISCO, December 31.-California enters upon the new
from time to time have been met without loss to anyone. The
year with the definite prospect of better times.
several clearing associations operated in conjunction with the
We have waited long and patiently for a turn of the tide, but I
exchange have made this protection possible, and they have
answered every demand that has been made upon them. De-
believe that it has come at last.
liveries, no matter how heavy, have been handled efficiently.
The most significant omen of this was that splendid California
victory on December 19, when the people swept aside pessimism
CONTRACTS GAIN
and voted themselves a $170,000,000 Christmas present in the
In the first annual report of the exchange covering its activities
form of the Central Valley water project.
for the period commencing with the legal consolidation on May
That alone launches California upon a new era-it gives the
1, 1933, and ended on November 30, 1933, I pointed out that the
final impetus to the cycle of recovery that was set in motion when
value of contracts traded in on the exchange aggregated approxi-
Federal, State, and municipal agencies concentrated upon reem-
mately $750,000,000.
ployment.
In rubber, silver, and copper the number of contracts dealt in
25,000 EMPLOYED
during this 7-month period far exceeded the totals for the entire
12 months preceding. Comparative figures for trading volume in
Agriculture, labor, business of every sort will reap the benefit
November 1933 and the same month a year ago show the extent
of this vast undertaking that means the employment of 25,000
of increased trading since the opening of Commodity Exchange,
men for 4 years, the generation of cheap power, and the salva-
Inc.
tion of hundreds of thousands of acres doomed to aridity.
The increase in silver trading from November 1932 to November
In the south, the Bouldar Dam Aqueduct is a project of equal
1933 was 271,375,000 ounces, in crude rubber the increase was
magnitude, and in the San Francisco Bay district, the Golden
112,960 tons, in raw silk it was 5,760 bales, in hides 5,160,000
Gate and Oakland-San Francisco Bay bridges, totaling $100,000,000
pounds, in copper 15,400 tons, and in tin the increase was 100 tons.
are mighty spokes in the wheel of recovery.
ORDERS MULTIPLY
Building permits have increased-pay rolls have increased—
more people have money to spend-housewives are patronizing
The international character of the market is best evidenced by
the stores in increasing numbers-the butcher, the baker, the
the multiplicity of orders received from many parts of the world,
particularly in silk and silver, and to a proportionate degree in
grocer are taking heart.
copper, rubber, hides, and tin.
50,000 MORE JOBS
The exchange exercises no control over prices, but does regulate
In our division of public works alone, where 5,000 men are
daily maximum advances and decline. Volume of trading and safe-
regularly employed, appropriations have been made for $20,-
guards set up for protection of buyer and seller are significant of
000,000 in highway construction that will employ an additional
the need which the consolidated market fills, and this has never
been more apparent than during the recent period of world-wide
50,000 men.
With such projects, and such concrete evidence of improve-
unsettlement. We can with reasonable assurance look forward to a promising
ment, California in 1934 cannot fail but move forward toward a
year in 1934, both as respects trading activity and, perhaps better,
happier destiny.
more stable prices.
Moreover, there is a happier tone in the morale of our people.
Throughout our homes, a stronger sense of security exists—
[From the Washington Star, Dec. 24, 1933]
mothers and fathers may now watch their children start off to
school, or venture upon the streets, with a feeling of safety that
THRIVING BUSINESS SEEN IN WISCONSIN DURING HOLIDAYS-CHRIST-
MAS WELCOMED WITH CONVICTION BETTER TIMES ARE ACTUALLY
did not exist before.
We have had trying times-at last daylight is breaking through,
HERE
(By William T. Evjue)
and I sincerely believe that this new year will bring to the people
of California a renewal of that old-time activity and the content-
MADISON, WIS., December 23.-For the first time in 4 years Wis-
consin welcomed the Christmas holidays with the conviction wide-
ment and peace that is our rightful heritage.
200
CONGRESSIONAL RECORD-SENATE
JANUARY
8
spread that better times are not only on the way but are actu-
ally here, and one of the outstanding factors contributing to
in these auctions are accepted as a barometer of agricultural con-
revival is the Roosevelt C.W.A. program, which has been providing
ditions and prospects. It is a cash market, and farmers do not
a $1,200,000 weekly pay roll for families formerly on public relief.
buy unless they have the money and an outlook for profitable use
Reports from various parts of the State show a thriving Christ-
of the mules. Number of draft animals sold in the local market
mas business, with the department stores in Milwaukee and other
which is the biggest in the country, has quadrupled that of last
population centers exceeding last year's sales figures by as much
year and is the largest since 1926. Prices are 35 percent above 1932.
as 100 percent. Industrial commission figures showing increased
employment in all lines are not necessary to convince that im-
[From the Washington Herald, Jan. 1, 1934]
provement has set in-crowded stores, busy streets, and the faces
of the people tell their own story.
FARMERS GET HIGHER PRICES FOR NEW YEAR-BUYING POWER
BEGAN ALREADY UP-PROSPECTS FOR AGRICULTURE BEST SINCE DEPRESSION
LIQUOR TAXES DELAYED
It is now almost certain that the legislature, in session now for
(By Edw. A. O'Neal, president American Farm Bureau Federation)
2 weeks, will not pass a liquor taxing and regulating bill before
the first of the year. This week saw the introduction of the
The American farmer faces 1934 with probably the best pros-
sixth bill for regulating liquor. Authorized by two conservative
pects since the beginning of the depression. Farm buying power
has increased about 24 percent since the low point of 1933, and
Democrats, the plan would apply virtually the Quebec system to
Wisconsin, with sales by stores and a monopolistic State-owned
the machinery is set up to bring about a marked increase in prices
for farm products during the next few months.
wholesale agency. It is now apparent that the plan of Governor
The winter wheat acreage has been materially reduced; the
Schmedeman, which would have licensed liquor buyers at $1 a
head and turned virtually all the liquor revenue over to the
cotton farmer will certainly drastically reduce his production by
localities, is doomed to defeat.
renting a portion of his crop acres to the Government; and no
The Bolens bill, sponsored by a leading State senate Democrat, is
Corn Belt farmer can afford to reject the inducement offered by
the Agricultural Adjustment Administration to keep fewer SOWS
much more likely of enactment. It allows local option as to the
and grow fewer acres of corn.
permissibility of tavern over-the-bar sales and keeps all revenues
for the State for budget-balancing purposes.
PRICE RISE EXPECTED
One dark spot on the outlook in Wisconsin was the sudden
With the market curtailment of production in prospect, it is
drop in the price of cheese from 10½ to 8 cents. This 2½-cent
likely that the burdensome surpluses that have borne down
break set a record for recent years, and means the loss of hun-
heavily on market prices will gradually disappear. Lower visible
dreds of thousands of dollars a month to farmers and dairymen.
supplies will have a bullish effect on prices.
Governor Schmedeman, who had sponsored national cheese week
Money is getting into circulation at a rapid rate in farm areas.
with a nationally broadcast speech, only to see the price of cheese
During November more than $58,000,000 was loaned by the Fed-
skid during the "week", blamed the drop on Secretary of Agri-
eral land banks, and the rate is constantly increasing. The Fed-
culture Wallace and Wallace's cancelation of the Federal butter-
eral intermediate credit banks on November 30, 1933, had out-
buying program.
standing loans to the amount of $136,861,440, much of it in loans
POLITICAL CIRCLES ALIVE
recently granted. Wheat benefit payments now stand at more
than $7,000,000.
Political circles began to grow lively with the announcement of
several candidacies for major posts. Rumor also began to bring
The amount of money to be loaned on corn may reach $200,-
the names of State figures into the light as likely contenders in
000,000. The corn-hog plan for curtailment of production will
release possibly $350,000,000.
next year's political arena. Against Senator BoB LA FOLLETTE, Jr.,
the Democratic candidacy of Mrs. Gertrude Bowler, of Sheboygan,
DEBTS TAKE TOLL
Democratic national committeewoman, has been announced.
It is true that a large part of all this money is being used, or
Walter J. Kohler, former conservative Republican Governor, is re-
will be used, to retire old debts, but a substantial part of it will
liably reported to be ready to oppose Senator LA FOLLETTE in the
go into new purchases. Even if all of it were used to liquidate
Republican primary.
debt, it would have a very definite effect in increasing the liquidity
The State Democratic organization filled a gap in the State com-
of banks and in increasing the velocity of the circulation of
mittee this week with the election of Joseph Martin, Green Bay
money, which will affect business and commerce in all farm com-
attorney, to the chairmanship. The Martin election was considered
munities.
a Schmedeman victory, and Martin is one of the Governor's
We must not ignore the effects of the public works program that
staunch supporters. William B. Rubin, of Milwaukee, leader of
is being pushed so aggressively at the moment. The cash released
the more progressive faction of Democrats, fought the Martin can-
here goes immediately into circulation, to the great benefit of
didacy but was voted down.
the merchants and manufacturers.
If we will add the number of workers on these projects to the
STORES IN INDIANA REPORT LARGE SALES-C.W.A. PROGRAM EMPLOYS
number of farmers who will receive money from the Government
100,000 PERSONS, WITH PAY ROLL OF $1,800,000
or from some quasi-Government institution during the next 12
months, it is likely we will find that a majority of the heads
INDIANAPOLIS, IND., December 23.-A more cheerful atmosphere
of families in this country will have participated in some way
pervaded Indiana this Christmas season than at any time during
in a movement that is distinctly reflationary.
the last 3 years.
With thousands of persons heretofore unemployed cashing
BENEFITS MAY PYRAMID
C.W.A. checks, stores throughout the State reported unprecedented
It is my belief that once agriculture, which is industry's best
Christmas shopping. One of the largest department stores in
customer in this country, is put back on its feet, we will see a
Indianapolis last Saturday turned the largest volume of business
revival in business much more marked than is generally expected.
in a 5-year period. All through the week merchants augmented
Should this occur, benefits to all the people will be pyramided in
their sales forces to handle the constantly increasing crowds of
an ascending spiral, the exact antithesis of the downward spiral
buyers.
that wrecked so much havoc following 1929.
Nearly 100,000 persons were on C.W.A. work, and the weekly pay
Getting down to figures, the national farm income for 1933
roll amounted to $1,800,000. In addition to that, the State high-
will amount to around six and one half billion dollars. Total
way commission had found jobs for an additional 26,000 persons,
factory pay rolls will closely approximate this figure, as they
with a weekly pay roll of $200,000.
always go up and down together. In 1926 farm income and fac-
Although an absolute check cannot be made yet, William Book,
tory pay rolls both exceeded eleven billions.
director of the State welfare department, estimates that the num-
ber of those on relief rolls has dropped from a peak of 80,000 on
November 15 to less than 50,000 now. One of the anomalies of
[From the Washington Star of Dec. 31, 1933]
the situation noticed by him, however, is that demands for poor
HEARTENING GAINS IN PRICES HELP-DEFINITE IMPROVEMENT CITED
relief have increased under a mistaken impression that a person
BY PRESIDET OF FARM CHEMICAL FIRM
must be in want before he can obtain a C.W.A. job.
Another indicator of better days is found in the Indianapolis
(By Horace Bowner, president the American Agricultural
bank clearings, which rose from $8,458,000 on December 2 to $10,-
Chemical Co.)
053,000 on December 16. This was in contrast to 1932, when in
The year 1933 has seen a definite improvement in agriculture.
the week before Christmas bank clearings scaled sharply downward.
Farm prices have turned upward and the long downward trend
of farm income has at last been reversed. Gross farm income for
SOUTHEAST RECORDS BIG BUSINESS GAIN-ATLANTA BANK CLEARINGS
1933 is estimated at six and one third billions, a 25 percent
FOR WEEK ENDED DECEMBER 13, 46.7 PERCENT OVER WEEK IN 1932
increase over 1932. Farm prices have shown substantial improve-
(By Edwin Camp)
ment, averaging 71 percent of prewar on November 15, as com-
pared with 54 a year ago and with the low point of 49 in February
ATLANTA, GA., December 23, 1933.-Two indices, taken in this
of this year. This means an increase of 45 percent in a period
section as unfailing, indicate the tremendous business recovery
of 9 months. Were the eyes of the Nation focused solely upon
that is taking place in the Southeast.
economic recovery, this fact would undoubtedly have aided greatly
For the week ending December 13, as reported by Dun & Brad-
in accelerating the upward trend in general business.
street, Inc., Atlanta's bank clearings increased 46.7 percent over
In what now appears to have been a premature burst of speed,
the same week of 1932. This contrasts with an increase of 7.8
the farm price index rose to 76 in July, as compared with 64 in
in New York City and of 6.5 for the country as a whole. The
June. The inevitable recession was followed by a slow, steady
increase was 17 percent more than that of any other city in
recovery, which is indicative of a better basic position in the prin-
America, Dallas, Tex., being the nearest with 29 percent.
cipal farm crops.
The second index is the Atlanta mule market. Even more accu-
The problems of agriculture are principally two: First, low
rately than bank clearings, the activity and the prices prevailing
prices, which at times have barely covered production costs of
1934
CONGRESSIONAL RECORD-SENATE
201
even the most efficient producers; and, secondly, the disparity
[From the Washington Post, Dec. 31, 1933]
between prices received by the farmer and prices paid by him
WAGES JUMP 25.6 PERCENT SINCE JUNE
for the things he buys.
PAYMENTS ALSO HELP
The wage rate increased sharply since last June, according to
the Business Conditions Weekly, when the lowest point was
Higher crop prices, as indicated by the 45 percent increase in
reached during the depression. Factory employees in June re-
the farm-price index, have brought a definite measure of relief
ceived an average of 41.8 cents per hour, 27.2 percent lower than
to a hard-pressed agriculture; and this does not represent the
the 1929 average of 57:4 cents per hour. From June to October,
entire gain in farm income, since benefit payments made to farm-
wage rates showed an increase of 25.6 percent. October wages
ers for taking land out of production are not *included in these
amounted to 52.5 cents per hour. Only 8.5 percent less than in
farm-price indices. Up to December 10 actual cash payments of
1929.
$115,000,000 had been made to farmers in the first seven months'
operation of the Agricultural Adjustment Act. This total was paid
The rise in wage rates was offset by the cut in working hours
directly to wheat, cotton, and tobacco farmers, in return for
from 42.6 hours per week in June to 35.8 hours per week in
October.
acreage reduction contracts.
No figures are available at this time as to the amount of money
Weekly earnings in October were $18.80 as against $17.81 in
advanced to cotton and corn-hog farmers on the crops which they
June, an increase of 5.6 percent in earnings per hour as compared
have sealed in warehouses as security for loans. It now appears,
with the increase of 25.6 percent in earnings per hour. This
however, that the Government will be called upon to advance only
weekly rise in earnings was not sufficient to offset the 9.3 percent
a part of the funds provided for this purpose, as price improve-
rise in prices and the wage earners' purchasing power was conse-
ment is encouraging private agencies and local bankers to lend
quently lower in October than in June.
more freely on such collateral.
On the matter of wage earners the Business Conditions Weekly
Summing up the agricultural operating statement for the year,
says: The wage earner in October, however, was considerably
we find an increase in farm gross income slightly in excess of
better off than in March, when his weekly earnings were at the
$1,000,000,000, of which about 10 percent is accounted for by Gov-
lowest level of the depression.
ernment cash benefits for acreage reduction. On the expense side
of the income account the 1933 crop year will show exceptionally
low production costs. Pressure to reduce local taxes has also
[From the Washington News, Dec. 6, 1933]
resulted in substantial improvement in that phase of the farmer's
THE G.O.P. ATTACK
overhead expenses. Machinery for the adjustment of farm-mort-
gage indebtedness-which, as a matter of fact, has never been
If there is anything the Roosevelt Administration needs it is
disproportionately heavy-is now operative, with the result that
intelligent criticism. The President himself has said SO It is
this phase of the farmer's burden has for the most part likewise
unfortunate that the attack by the Republican National Com-
been provided for.
mittee does not meet this need.
As a result, sentiment in the principal farming areas is probably
The Republican campaign pamphlet, entitled Tories, Chiselers,
better today than at any time in the last 3 years. Retail and
Dead Cats, Witch Doctors, Bank Wreckers, Traitors lacks con-
mail-order sales reflect the improving situation, and, in spite of
viction. It hides behind criticisms of the administration by
vehement political expressions on agriculture's behalf, the farmer
certain Democratic newspapers.
is today in a much better frame of mind, as indeed he has definite
The glory of the new deal is in the fact that it is a series of
reason to be.
experiments in cooperative climbing out of the deep hole we dug
HELD CONSERVATIVE
for ourselves in the tawdry twenties." But an experiment to get
The thinking farmer-and in my experience he is in the ma-
anywhere must be guided by intelligent criticism. The curious
jority-realizes. that in the face of this improvement he has much
and distressing-thing is that about the only creative criticism
to lose and little, if anything, to gain from extreme inflationary
of the new deal has come from the new dealers themselves.
measures. Most farmers are conservative, using that term in its
President Roosevelt in play after play outsmarts the other team.
truly constructive sense; they realize that printing-press inflation
That is all very fine for the President. But, after all, no one
would be apt to raise the prices of the things they buy just as
leader or group should have a copyright on cleverness. By long
rapidly as the prices of the crops they sell. This point of view
experience we have learned that 2 parties are better than 1.
probably accounts for the more temperate recent utterances of the
Out of the conflict of half-truths, truth emerges.
extreme inflationists.
Reverting now to the second major problem of agriculture, the
Unfortunately, the G.O.P. seems to have nothing to offer. The
disparity in the purchasing power of farm crops, we find that on
administration's monopoly of ideas comes from the other fellows'
default.
November 15 the price of things bought by farmers was 117 per-
cent of pre-war, as compared to 71 percent for prices received for
So long as the G.O.P. has nothing to offer but a return to the
their crops. Thus, the ratio of prices paid was 61, compared with
old bankruptcy. it may as well save its pamphlet printing bills.
71 in July and 49 in February. Between February and November
Because the public is determined to have a new deal of some
there has been a 25 percent improvement in the farmers' relative
kind. The public may not be 100 percent sold on the particular
purchasing power.
Roosevelt brand. But even the minority of citizens who are dis-
There still is a long way to go to reach a theoretical parity of
satisfied with the Roosevelt results are asking: What is the alter-
100 percent for this ratio, and as compared with July, some ground
native? The G.O.P. has no alternative.
has been lost. But it cannot be emphasized too strongly that
If the Republican National Committee will go back and thumb
monetary problems have no relationship to the relative purchasing
through the worn political copybooks, it will find its forgotten
power of farm crops; all of the emphasis placed upon so-called
maxim:
inflationary measures' advanced in the interest of agriculture
You can't beat somebody with nobody; you can't beat some-
has solely to do with prices received by the farmer for his crops.
thing with nothing."
The farmer has nothing to gain from extreme inflation, which
would not improve the relative position of the farmer.
This problem of the disparity in farm purchasing power is one
CHRISTMAS, '32 AND '33
of the most stubborn with which the Nation has to deal. It has
been several decades in the making, and it is unreasonable to
God rest you, merry gentlemen,
expect an immediate solution. Frankness and candor in explain-
Let nothing you dismay."
ing this to the farmer are imperative. Now that we are em-
It took great faith to chant this, our favorite carol, last Christ-
barked upon a far-reaching program of crop curtailment, it is
mas. Today we may sing it right lustily. For, however lamentably
necessary, regardless of one's views of the economics of that ex-
conditions fall shy of what we'd wish for America the Yule
periment, to give it complete support and cooperation. But it
season of 1933 is a vastly happier one than that of 1932.
should be pointed out at every opportunity that unsound infla-
Christmas last year dawned on the homes of 12,000,000 unem-
tionary measures will only confuse the situation and prevent us
ployed. Economic chaos, hunger, child labor, farm unrest, bank
from obtaining a conclusive result.
insecurity were ugly realities. The Nation's purse was at its
FOREIGN MARKETS NEEDED
flattest state in years. The Roosevelt new deal was only a dawn-
Meanwhile, the farmer's best interests will be served by putting
ing hope. The sour face of prohibition haunted the byways.
the maximum amount of ingenuity and energy into the task of
Today more than half of those jobless are back at work, some
reopening foreign markets for American crops. High tariffs and
2,500,000 on the pay roll of private industry, some 4,000,000 on
drastic trade regulations continue to exert an adverse influence.
Government emergency work. In addition more than 300,000
While trying to reopen old markets let us try to find others.
young men of the C.C.C. have turned from bumming to work in
Academic discussion of a policy of self-containment is a waste
the woods in the midst of God's own Christmas trees. The best
of time, for we have by no means demonstrated that we can
possible Christmas present, freedom from toil, has been dropped
effectually curtail production in the presence of a rising price
into the stockings of more than 60,000 child workers.
level.
The Government is fighting want with a billion dollars worth
As estimates now stand, the acreage of crops harvested in the
of surplus farm products. Banks are by way of being safer,
entire country during 1933 was about 8 percent less than in 1932,
securities more secure. Into the flattened American pocketbook
and the crop yield averaged 5 percent less. A 29 percent decline
is being pumped new industrial buying power at the rate of
in the 1933 wheat yield, a 20 percent decline in the corn yield,
$3,000,000,000 a year. The weather, Triple A", and other things
together with 43 and 47 percent declines, respectively, in oats
have brought smiles to the farmers' faces by adding at least
and barley, were primarily responsible for reduced total farm
$1,000,000,000 to their incomes. And, in 24 States at least, we
output. Nature herself did a pretty good job in improving the
may drink to this and merrier Christmases from a wholly legal
supply and demand relationship in these crops.
wassail bowl.
No.
4-5
202
CONGRESSIONAL RECORD-SENATE
JANUARY 8
[From the New York Times, Dec. 29, 1933]
The Middle West is chary of forecasts, but it is already showing
MIDDLE WEST AND NEW ENGLAND NOTE A STEADY IMPROVEMENT IN
substantial vigor in recovery from the extreme bottom of the
BUSINESS-CHICAGO BANKS STRONG-THOROUGH OVERHAULING
depression.
EARLY IN THE SLUMP AIDED RECOVERY-RETAIL SALES SHOW GAIN-
MAIL-ORDER TRADE, BASED ON PARCEL-POST RETURNS, AHEAD OF
[From the New York Times, Dec. 29, 1933]
1932
TEN-PERCENT GAIN NOTED-SIX STATES ANTICIPATE INCREASE IN
(By S. J. Duncan-Clark)
VOLUME IN HALF YEAR-BIG JUMP IN EMPLOYMENT-CCTOBER
CHICAGO, December 28.-In the middle western agricultural and
PAY ROLLS 25 PERCENT ABOVE 1932-N.R.A. CODES SATISFACTORY
industrial area, of which Chicago is the financial center, the
recovery from depression has been sufficiently steady and con-
(By F. Lauriston Bullard)
servative to give excellent promise for the coming year. In large
BOSTON, December 28.-New England enters the new year with
measure this is due to the thorough overhauling which the bank-
sound warrant for good hopes of the future. These six States have
ing situation received during the early years of the slump.
been but at no time did they slide as far into the depths
The Christmas trade has been a fitting climax to 10 months of
as did other sections. There is a long climb ahead, but, speaking
improvement. Marshall Field & Co. and Carson, Pirie, Scott &
in general terms and with due regard for some bad spots, a real
Co. reported that the physical volume of merchandise handled in
start has been made, and the upward trend is expected to con-
the retail stores on several days was actually larger than in the
tinue.
corresponding period of 1929. The December business of the latter
The year, ends with a volume of business 10 percent in advance
firm broke all records.
of last year. This volume should be increased, at least during the
Output of electricity in the Chicago public-utility district,
first half of 1934 and probably through the year.
which includes part of the northern end of Indiana as well as
New England stands predominantly for textiles and shoes. The
part of the factory area between Chicago and Milwaukee, closed
consumption of both raw cotton and raw wool during 1933 has
the week of December 16 only 3.6 percent above last year, but
been much greater than in 1932. The 1933 production of foot-
was at the highest level since January 9, 1932. In general, the
wear for the entire country is estimated at 350,000,000 of pairs.
local use of electric power has been running well in excess of
New England would account for a third of this total. This is a
1932.
remarkable showing. Only once or twice has it been surpassed.
PARCEL POST HEAVY
There doubtless will be some recession from this high level in the
Outgoing parcel-post shipments have been running 15 to 18
coming year, but production is expected to continue in large
quantity.
percent above the corresponding weeks a year ago, being about
60,000 sacks a day. Incoming shipments averaged about 20,000
The smaller industries, of which there are a great number in
sacks daily. This, of course, reflects the mail-order sales of
these States, have had a much better year than in 1932 and they
are looking into the future with considerable confidence.
Sears, Roebuck and Montgomery Ward from the Chicago head-
quarters of this district.
EMPLOYMENT HAS INCREASED
The steel mills south and southeast of Chicago have been
increasing their rate of operation rapidly, the independents lead-
Since last March there has been a heavy increase in industrial
ing, and are from 2 to 3 weeks ahead of the usual seasonal
employment in Massachusetts, with only a small decrease in No-
vember from the high of October. The index stood at 53.9 in
upturn. Predictions are made that there will be a slight sagging
March; by October it had advanced to 76.5, and the latest ratio
after the first of the year, the current rise being partly due to the
rush to specify on the favorable terms available in the fourth
available, that of last month, is 72.9. The October pay rolls were
quarter. Still later, beginning February 1, local steel men predict
a fourth higher than for the same month of 1932. Employment
a sharp increase to still higher levels. Statements have been made
in boots and shoes in that month was 90 percent of normal; in
that the national rate should reach 40 percent of capacity at that
cotton goods 95 percent, in woolen and worsted goods nearly 104
time.
percent, and in knit goods 108 percent. The situation in the
The meat-packing industry-in some respects the largest indus-
manufacturing centers of southern New Hampshire and Rhode
try of the city-has at last reversed its years of annual inventory
Island is similar. These, to be sure, are industries which produce
loss and is beginning to show satisfactory profits. Swift & Co.-
consumers' goods; employment in industries producing capital
goods is lower.
the largest of the big four packers-reported a $500,000,000
business in the fiscal year ended October 29, with a net income
As of November, 70 N.R.A. codes have been applied to New Eng-
of $10,149,482. Although the future trend is more likely to be
land industries which are of sufficient magnitude to find a place
in the Federal census of manufactures. Any study of these codes
upward than downward, the burnt fingers of other years induced
the management to set aside $4,267,000 of income as reserve for
will indicate how diversified are the interests of New England, a
possible price fluctuations. The packers do a business in fresh
circumstance of major importance for any stabilization of pros-
perity, and always the recreational industry has to be reckoned as
meats all through the year, but their heaviest packing season is
a fundamental resource in a class by itself. A single metal code
the winter and most of the ham is sold in the late spring and
is applied here to no fewer than 26 separate industries. Of all the
summer.
Sales of automobiles for the month of November-the latest
employers of labor in this section four fifths up to November 1
complete month available-were 147 percent above a year ago.
had signed codes, while of the grand total of 2,700,000 employees
nearly 1,260,000 were working under codes. The textile operators
The figures prepared by the Federal Reserve bank of Chicago,
are openly rejoicing over what the codes have accomplished for
cover the greater part of Illinois, Indiana, Iowa, Wisconsin, and
Michigan. There was a heavy drop from the previous month,
them in the equalization of competition. The shoe code gives
general satisfaction.
but the seasonal recession was far less than last year. New
cars on hand are about 30 percent below normal, while used cars-
RETAIL TRADE VARIES
that had almost vanished from the market last year-are begin-
The retail codes apply to 89.5 percent of the entire number of
ning to reappear in fair number as new cars are purchased. Good
retail establishments and cover 328,000 employees, or 89 percent
used cars should be in considerable demand when prosperity
of that total. Retail volume in Boston for the latter half of the
returns.
year was about the same as in 1932, and Springfield and one or
BANKS IN GOOD CONDITION
two other cities also have shown no gains compared with a year
The great advantage of the Chicago area was that its banking
ago. On the other hand, there have been large gains in the dis-
groups started upward from a solid foundation. The extraordi-
tinctively manufacturing cities; for example, Lawrence reports a
nary collapse of the Insull fortune in 1931, which made so much
gain for November of 21 percent; Fall River, 18 percent; Holyoke,
collateral worthless, together with a tax muddle that wrecked
15 percent; New Bedford, 13 percent; and Lowell, 12 percent.
the real-estate market by taxing 1931 on 1929 valuations with the
Nine of the reporting cities showed small losses. It is a fact,
double burden of lost years thrown in, brought on the crisis
however, that retail distribution has been better maintained within
earlier than in the rest of the country.
New England than without.
Because of this all the really doubtful banks had closed in the
By and large, the credit not only of the six States but of the
pinch of June 1931 and June 1932. After the moratorium there
municipalities has been well protected. In most of the States
was not a single major failure. The examination for Federal de-
some banking readjustments have been necessary, Rhode Island
posit insurance, just completed, showed one of the cleanest reports
being a notable exception. Vermont is clearing up its banking
in the country. Considering that it applied to 56 banks instead of
troubles slowly and as yet has made small use of the Reconstruc-
196 in Cook County in 1929, that is not surprising. The closed
tion Finance Corporation funds available. The stagnation of the
banks had been for the most part small neighborhood institutions,
building industry, now beginning to show some signs of recovery,
and the aggregate deposit loss was not over 8 percent of the total
has reduced heavily the demand for Vermont timber, granite, and
deposits of the city.
marble. The fruit and dairy industries have fared somewhat
For the seventh Federal Reserve district, the cash from the
better.
R.F.C. loans to banks for liquidating dividends, which will run
Maine has some special problems to be solved. Due to welfare
close to $1,000,000 a day after January 1, should provide an
demands and make-work enterprises, which have reduced greatly
excellent stimulus to further recovery. The bulk of this money
the ability of municipalities to pay in full the taxes owed the
will go outside Chicago, for the banks here that are in a strong
State, the State itself is employing various devices to make ends
position are for the most part still trying to reorganize and have
meet. The failure of a single trust company, which operated 42
delayed accepting the assistance.
banks in 35 towns and cities, damaged public confidence a great
Detroit is really in the Chicago area, and the automobile men
deal, but this condition also is in process of rectification. Indus-
are so optimistic in regard to the coming season, in private con-
try on the whole is doing well in the Pine Tree State, especially
versation, that their predictions can hardly be ignored. Rather
textiles, shoes, and canning. The potato country has had some-
curious, however, is the refusal of the most cocky sales manager
thing like a boom. The tourist business was good, but off some-
to go on record in public with the statements he makes to his
what from the high levels. Like the rest of New England, how-
sales group.
ever, Maine is looking forward with renewed hopes.
1934
CONGRESSIONAL RECORD-SENATE
203
[From the Washington Star, Dec. 24, 1933]
CHRISTMAS TRADE REPORTED AT BEST LEVEL SINCE 1928-SPIRIT OF
Car load-
Electric
ings
Steel
Com-
GLOOM SWEPT AWAY; PAY ROLLS AND RELEASED DEPOSITS HELP-
bined
INDUSTRY CONTINUES UNSEASONAL ADVANCE FOR MORTGAGEES
AND HOLDERS OF MORTGAGE CERTIFICATES TALKED IN COMING YEAR
Last week
59.5
101.3
48.0
69.6
(By Charles F. Speare)
Previous week
56.3
100.5
44.1
67.0
Month ago
NEW YORK, December 23.-Reports from every direction em-
59.1
101.8
36.0
65.6
Year ago
55.5
96.4
21.1
phasize the volume of Christmas buying, some placing it at the
57.7
1933 high
63.7
109.2
78.1
83.7
greatest since 1928. Several factors are responsible.
1933 low
45.6
88.7
15.5
50.5
First is the change in the mood of the public. A year ago it
was fearful of the future because of the known condition of the
1928 weekly average equals 100.
banks. This has been dispelled by the approach of the deposit-
guarantee plan.
UTAH HOME LOANS TOTAL $881,205.10-DWELLINGS OF 353 FAMILIES
Second is the actual increase in the buying power in the hands
SAVED-C.W.A. CHECKS BRING REAL CHEER
of the American people by reason of the gain in employment and
[From the Washington Star, Dec. 24, 1933]
the higher average wage of those whose work had not been inter-
SALT LAKE CITY, UTAH, December 23.-Home loans have saved
rupted during the depression.
the homes of 353 families in Utah at a total cost of $881,205.10,
Third is the release of large sums of money by banks that had
which means that more than 1,500 people have had the burden
been under restrictions since March or whose period of partial
of worry lifted from their shoulders just as winter set in. Utah
service to the public antedated the moratorium.
has been enjoying one of the mildest winters on record. What
A year ago there was a general expectancy of still harder times
early this season generally is snow was rain this year, and there is
ahead. Now there is a feeling that the turn has come and that
scarcely enough snow now for a schoolboys' battle. And the
while money may not be plentiful in 1934 there will not be the
weather has been warm and balmy. This help from nature has
necessity to live on reserves that had made so many cautious in
been a boon to the relief organizations which have prevented
their spending. The social philosophy of the Roosevelt adminis-
actual suffering. The strain has been heavy on those who had
tration may be contested by those who cannot adjust their minds
to give, but the contributions were made.
to it. It certainly has extravagant features. It has, however, de-
Real cheer for Christmas has been brought by the C.W.A.
veloped a new and healthier psychology among the mass of the
checks which the heads of families now are drawing instead of
people.
allotments from the relief warehouses. There are 6,000 C.W.A.
INDUSTRIAL GAINS UNSEASONAL
workers in Salt Lake City and many more throughout the State,
The major industries exhibit an improvement that is contrary to
and all are doing useful work.
the season. This is a proof of fundamental gains in a direction
One angle of the work which is benefiting Salt Lake City
that has been slow to respond to recovery mechanically or natu-
especially is the mosquito abatement work. The flats near the
rally inspired. The iron and steel ratio of production has again
Great Salt Lake, and only a few miles from the city, have been
risen sharply to the figure of 36 percent of capacity, comparing
a breeding place for mosquitoes for many years. Plans have been
with 32 percent at the end of October, when the drop from the
drawn and every preparation made for the actual drainage of these
high August ratio of about 55 percent was taking place.
lands for several years, but the work was not started.
Power and light production does not satisfy those in the indus-
try, though it holds over 5 percent above the level of last Decem-
ULTRACONSERVATIVE PENNSYLVANIA G.O.P. GOING PROGRESSIVE-NEw
ber. Many of the railroads are moving more revenue cars of
DEAL, REPUBLICAN DEFEATS, AND DEMOCRATIC FEARS CAUSE ABOUT
freight than at the end of 1932. The building outlook is better
FACE
but greatly restricted by the mortgage situation, itself slowly
feeling the benefits of widening areas of employment.
HARRISBURG, PA., December 23.-Pennsylvania's Legislature, for
For the last 2 years the Reconstruction Finance Corporation has
years dominated by an ultraconservative Republican organi-
been centering its efforts on the railroads, the banks, and finan-
zation, has reversed the stand it took 8 months ago in regular
cial institutions, and other Government agencies have been cre-
session upon a number of important progressive issues.
ating relief for farmers. providing more profits from their crops
Influence of the new deal" at Washington, Republican de-
and helping them to save their homes.
feats in last month's elections, fear of Democratic success in the
1934 State campaign, and the Democratic program of liberal
MORTGAGEES NEED AID
legislation combined to accomplish the about face.
It is not unlikely that during 1934 aid from these same sources
BAR CHILD LABOR
will be given to distressed mortgagees and holders of guaranteed
mortgage certificates whose plight, in many cases, is more seri-
Both houses voted this week to ratify the child-labor amend-
ous than that of those already relieved. If the figure of $10,000,-
ment to the Federal Constitution. The senate by a margin of one
000,000 in outstanding mortgage certificates is a correct one, then
vote saved the resolution by defeating a motion to recommit. The
$5,000,000,000 represents the depreciation that holders have al-
house suspended rules and discharged a committee to force action
ready suffered, in addition to their loss of income. The remain-
on the same measure. Half a decade ago Pennsylvania rejected
ing equity is important enough to try to preserve.
the same amendment decisively, but since then some textile man-
The same is true of the investment that institutions and indi-
ufacturers who opposed it at that time have defended the possi-
viduals have made in the past 20 years in municipal bonds. The
bility of congressional action on child-labor regulation as the only
total par value of municipal debt is $19,000,000,000. The greater
means of reducing competition with Southern States.
part of municipal securities outstanding are today without a
By virtually unanimous votes both houses adopted a plan of old-
market. Bids for them are nominal; often at less than half the
age assistance. That achievement is little short of a legislative
original cost price.
revolution in this State. In the past such proposals seldom
Here is another situation to which attention must be given
emerged from committee; if they did, they received thumping de-
next year. It is a companion of that in real estate. Both are
feats. The new plan, effective December 1, 1934, proposes to pay
domestic matters, and, therefore, may be approached sympatheti-
$30 a month to indigents over 70 years. Estimated to cost
cally by those who believe in short shift for the holders of for-
$12,000,000 a year at first, the money is to be provided from profits
eign dollar investments whose position was bad enough from the
of State liquor taxes.
defaults of South and Central American countries and is now
made worse by the steady refusal of Germany to meet full interest
[From the Washington Star, Dec. 24, 1933]
payments in cash.
NEW JERSEY PUTS 103,000 IN C.W.A.-ROADS, PARKS, AND AIRPORTS
NECESSITY QUESTIONED
To BE IMPROVED UNDER PROGRAM
When one considers all of the depreciation that has taken place
(By Edward M. Gilroy)
in the important groups of American and foreign investments,
one is inclined to question the necessity for further adjustment
TRENTON, N.J., December 23.-More than 103,000 persons are
in the dollar value in order to lift the burden of debtors. The
working in New Jersey under the Civil Works Administration pro-
meaning of the $660,000,000 which the R.F.C. has advanced to the
gram. The State exceeded its quota of 90,000 jobs by a sustained
banks on collateral and the $1,000,000,000 or more that it proposes
drive of State, county, and municipal officials.
to lend them in the form of preferred stock or capital notes is
A new class of workers was created overnight and the State's
that this sum represents part of the depreciation in their invest-
direct emergency relief rolls greatly reduced. John Colt, of Prince-
ments or in commercial loans which is now to be absorbed into a
ton, State director of C.W.A. and State relief administrator, is
new capital structure.
well satisfied with the success of the program. Despite the rapid-
Not a small part of this depreciation, which has devalued the
ity with which the workers were placed, he declared, great care was
portfolios of the banks, is due to the way in which debtors have
taken that no wasteful expenditure of public funds would result
violated their contracts to pay and the increasing popularity of
merely to create jobs.
this procedure since the United States repudiated her own gold
MOST QUOTAS REACHED
agreements.
"After a careful survey of the State" Colt declared, "I feel safe
in saying that the taxpayer will get his money's worth in the
ADVANCE INDICATED IN TRADE ACTIVITY BY MOODY'S INDEX
C.W.A. program. Some projects have been turned down."
NEW YORK, December 23.-Statistics appearing during the last
Only 2 of the State's 21 counties-Monmouth and Sussex-failed
week indicated a higher rate of business activity, according to
to reach their employment quotas. Several far exceeded the allot-
Moody's Index figures for freight-car loadings, electric-power pro-
ment, Burlington employing three times its quota.
duction, and steel ingot output.
Work being performed is scattered throughout the State. Much
These index figures are adjusted for seasonal variation-that is,
of it is being directed toward road repairing, park improvements,
if the change from the previous week should coincide with the
and airport development. Newark Airport will be considerably
normal seasonal change-the index figure would be unchanged.
enlarged and runways improved if the program is carried out.
204
CONGRESSIONAL RECORD-SENATE
JANUARY 8
One of the major public benefits under the C.W.A. is in re-
POWER OUTPUT RISES
cataloging books of the Newark Library and rebinding its collec-
tion. The city could not afford to undertake this work, but the
Electric power production increased by more than the usual sea-
large investment in the library is being protected by C.W.A. funds.
sonal amount, although the percentage gain over a year ago was
Curtailed Federal, State, and municipal services are being restored
5.2 percent, or 1.4 percent less than in the preceding week, owing
to their former status.
to the sharper increase in the corresponding week of 1932. Auto-
mobile production increased about 30 percent as three companies
Two HUNDRED AND THIRTY-TWO PLANS O.K.'D IN SOUTH DAKOTA-
resumed assemblies. Output of 16,800 units, however, compared
RELIEF PROJECTS EXPECTED TO PUT BIG SUM BACK INTO CIRCU-
with 30,600 a year ago, continues to reflect delays in the produc-
tion of 1934 models.
LATION
Fisher's index of wholesale commodity prices advanced to 72
SIOUX FALLS, S.DAK., December 23.-A total of 232 South Dakota
percent of the 1926 average, or 0.2 of a point below the high of
relief projects have been approved and reported to officials at
the year. The increase was the result of a further rise in the
Washington, it was announced by J. B. Longrie, assistant State
nonagricultural group, as the combined index of agricultural
civil works administrator. This number includes 44 not previously
products remained unchanged.
announced. Of the total number, 168 are rural-credit projects,
The index of bond prices moved higher for the third successive
while less than a dozen call for construction of dams on State
week and was only 1 point below the figure for the first week of
school lands, leaving about 60 which originated with local com-
October.
munities.
STOCKS IRREGULAR
Sioux Falls and Minnehaha County, of which Sioux Falls is the
county seat, are being benefited by the relief projects. Monday
Irregular movements on the stock market resulted in a very
of this week 550 men were put to work on civil-works projects in
slight change in the index. The outstanding loans of the report-
Sioux Falls and the county. It was announced this number will
ing member banks declined last week to the lowest figure since
be increased to about 1,500 when work is in full swing on all the
the week of July 1, as a result of a further drop of $66,000,000 in
all other loans.
projects in the city and county, with a pay roll amounting in the
aggregate to many thousands of dollars each week.
Reserve bank credit outstanding increased by $62,000,000, mainly
The men who have been put to work, and others who will be
through bill purchases. Government securities held by the reserve
given employment on the civil-works projects, had been idle many
banks have remained substantially unchanged for the past 5
months. The money they will receive in wages is regarded as cer-
weeks. The daily average quotation on sterling exchange was 3
tain to find its way into circulation, with a resulting improvement
cents lower for the week at $5.09. Short-term interest rates ad-
in the business of many industries.
vanced slightly, owing to seasonal influences. Commercial failures
The Public Works Administration since early in September has
declined, the total for the week being 260, as compared with 590
allocated $1,422,000 for various projects in South Dakota, W. F.
in the same week of 1932.
Cochrane, public works engineer for South Dakota, said.
M. A. Kennedy, State relief administration statistician, an-
HOG PRICES FORGE UPWARD ACTIVELY-ADVANCE OF FULLY 25 CENTS
nounced that the use of State beer revenue for livestock feed has
ON CHOICE MEDIUM WEIGHT OFFERINGS SHOWN AT CHICAGO
been discontinued and Federal funds are being used instead. To
date the State has expended $35,946.39 of Federal funds for pur-
CHICAGO, December 23.-The hog market displayed a burst of
chase of livestock feed, and large additional sums will have to be
activity today in the limited preholiday dealings, and prices
spent during the remainder of the winter and early spring.
advanced fully 25 cents on choice medium-weight hogs. The top
swung up to $3.75.
At one time recently the State relief administration wired for
200 additional cars of corn. All the grain and hay purchased with
Receipts of 21,000 carried 19,000 direct to packing plants, and
Federal funds, under direction of the State relief administrator,
all interests bought freely because of the impending holiday.
are being distributed from concentration points in different parts
Shippers took 1,000 head, about the heaviest purchases of the
week.
of the State.
Medium weights were in demand and sold at the maximum
advance. All others sold from steady to 10 cents higher, with
NEBRASKA REPORTS INCREASE IN TRADE-C.W.A. JOBS AND HIGHER
the bulk of all hogs going at $2.90 to $3.65.
BANK CLEARINGS FORETELL BETTER BUSINESS
Cattle were nominally steady and generally 50 cents to $1 higher
OMAHA, Nebr., December 23.-Increased bank clearings, thou-
than last Saturday.
sands more provided with work by the Civil Works Administra-
Sheep were also nominally steady and mostly 15 cents higher
tion, satisfactory betterment in retail trade, and numerous re-
than a week ago.
ports of improved business in the remoter parts of the State all
contribute to a feeling of well-being such as this agricultural
HOME CONSTRUCTION CONTRACTS MOUNT-TOTAL FOR FIRST HALF OF
State has not experienced for many months.
DECEMBER EXCEEDS FIGURE FOR ENTIRE MONTH LAST YEAR
Nebraska farmers have not yet begun to take advantage of the
corn loan program in numbers. The local R.F.C. corn loan office,
NEW YORK, December 23.-Contracts for residential building
which also serves Iowa, has devoted its services to farmers of that
during the first half of December in 37 States east of the Rocky
State almost exclusively so far, for Iowa got in legal line earlier.
Mountains, totaling $13,629,200, exceeded by 5 percent the similar
When the Nebraska farmers start cribbing their corn and obtain-
contracts for the entire month of December in 1932, it was shown
ing loans on a 45-cents-a-bushel basis, there seems assurance that
today by F. W. Dodge Corporation reports.
the holiday feeling will continue through the winter. And it
L. Seth Schnitman, chief statistician for the corporation, called
is not without the realm of possibility that Nebraska farmers
the improvement " the most dominant favorable development on
are not in such need of these loans as was supposed.
the domestic economic horizon in many months."
In the spring the public works projects, already approved, will
The improvement shown was universal throughout the territory
get an early start, State N.R.A. officials assert. They are many in
east of the Rockies with exceptions in upstate New York, the
number, planned to follow the C.W.A. program that will thin out
Southeast, and the St. Louis area. Significant increases occurred
around March, according to plan.
in the metropolitan area of New York, the Kansas City district,
and Texas.
CLEARINGS UP 30 PERCENT
Omaha bank clearings for last week showed an increase of 30
While the improvement is rooted in the accelerating processes
of the Federal program of public-works construction, it is im-
percent above the same week a year ago. Allen T. Hupp, secre-
portant to remember that normally it is residential building that
tary of the Omaha Associated Retailers, reported increase in retail
provides the stimulus to construction generally and to business
trade about 5 to 10 percent in dollar volume. The Omaha World-
activity as a whole the statistician said.
Herald reported an increase of 5,675 in its State circulation from
August to November.
Job placements in the C.W.A. program this week in 83 out of 93
VIRGINIA CHEERED BY HOLIDAY SALES-DANVILLE REPORTS INCREASE
counties in the State totaled 43,463 compared with about 31,000
OF 75 PERCENT DUE TO TOBACCO GAINS
a week ago. At the same time the registration of unemployed
RICHMOND, VA., December 23.-Santa Claus, that rotund old fel-
reached 50,955. A rush to register has been noted, since only
low, is doing his part toward driving Old Man Depression out of
registered men are given Federal program jobs.
the Old Dominion.
Business is up, away up, say the merchants who report sizable
[From the Washington Sunday Star, December 24, 1933]
gains in holiday sales and abnormally large staffs of extra workers
to care for the needs of shoppers.
GAIN CONTINUES IN STEEL INDUSTRY-DEPARTMENT OF COMMERCE
All cities report increases in buying volume, ranging from
STRESSES IMPORTANCE IN WEEKLY TRADE REVIEW
slightly above last year's sales at Norfolk to an increase of 75 per-
Continued improvement in the steel industry featured the do-
cent at Danville, where tobacco prices are high and there's money
mestic industrial developments during the week ended December
in the growers' pockets.
16, the Commerce Department reports in its weekly summary of
NORFOLK AVOIDS LULL
the situation.
A further gain is indicated for the current period, with the
Norfolk's slight increase is regarded as outstanding, however, in
view of the fact that the fleet is on the west coast this Christmas,
operating rate as of December 18 estimated at 34.2 percent of
depriving Norfolk merchants of the handsome holiday trade with
capacity, or 2.7 points higher than on December 11. This com-
pared with the low of about 25 percent in November and with 13
which the middies heretofore have favored them. Another signifi-
cant factor is the sharp increase in cash purchasing.
percent in the same week of 1932. Part of the recent improve-
Danville's amazing 75 percent increase set the pace, but other
ment is traceable to deliveries on fourth-quarter contracts which
cities showed substantial gains in unofficial surveys. Richmond
specify prices below those announced for the first quarter of 1934.
merchants reported an increase of approximately 30 percent, while
1934
CONGRESSIONAL RECORD-SENATE
205
Lynchburg and Roanoke conservatively estimated business in-
FUTURE HELD BRIGHT
creases of 20 percent over the last Yule season.
The future was looked upon by recovery officials with a strong
One Roanoke merchant reported that his force was four times as
show of confidence. The review did not go into the troubles
large during the holidays as ordinarily. Some firms which ex-
ahead. Despite the achievements, grave difficulties have appeared.
panded their forces under N.R.A. agreements reported that they
The following list records some of those acknowledged by the
needed no extra help.
N.R.A. leaders:
SHIPBUILDING IMPROVES
The industrial law's guarantee that workers may unionize freely
Unfavorable weather at the start of the week hurt trade condi-
and without interference has been flouted by a growing list of
tions in some cities, but several reported that the rains failed to
leading industrialists, and not one has yet been disciplined. This
deter the bundle-laden holiday shoppers.
failure is encouraging still more employers to make light of labor
A pick-up in the shipbuilding industry, with the prospect of nor-
phases.
mal employment within several months, brought an improvement
An increasing number of small employers complain the codes fail
in the Christmas business at Newport News, observers said. At
to protect them from powerful competitors.
Bristol substantial increases were reported in the holiday trade.
Obedience to code terms is admittedly lacking in thousands of
cases, discipline is slow, and final success is not yet assured.
SHORTER HOURS IN PROSPECT
[From the Washington Post, Jan. 1, 1934]
The reduction of work hours ordered by the codes, while in most
TAXPAYERS WIN NEW YEAR'S GIFT OF 130 MILLIONS-CUTS IN GASO-
instances all that industries can now stand, cannot give sufficient
LINE AND DIVIDEND LEVIES ARE EFFECTIVE TODAY
reemployment for the long pull, and still shorter hours must be
Automatic discontinuance of $130,000,000 in Federal taxes started
obtained.
the new year off right last night for some taxpayers who are
A number of the codes are officially considered bad and will
assured of relief from another $80,000,000 in special taxes later in
have to be revised.
the year.
Congress will have much to say about these points and more,
One half cent of the 1½/2-cent Federal levy on gasoline and
and the administration, which was not ready a few weeks ago to
the 5 percent tax on dividends passed with the old year at mid-
offer remedial legislation of its own, has definitely committed
night, Congress having specified when it put them into the
itself now to sponsor modifications of the Industrial Act to com-
Recovery Act that they should cease on January 1 after the repeal
promise with the strongest objectors.
of the eighteenth amendment.
Both Hugh S. Johnson and his responsible aids freely admit de-
On next July 1, for like reason, the tax on corporations of $1
fects and have constantly reiterated they are experimenting.
for every $1,000 of capitalization, and the 5 percent levy on corpo-
ration profits in excess of 12½ percent of capital structure, will
be discontinued.
[From the Washington News, Dec. 21, 1933]
The estimated annual yield of the extra half cent gasoline tax
N.R.A. AND ROOSEVELT PRAISED BY HEAD OF MANUFACTURING BODY-
was $62,000,000, and of the dividend tax, $70,000,000. The capital
ROBERT L. LUND TELLS NATIONAL ASSOCIATION OF MANUFACTURERS
stock and excess profits taxes together were figured to bring in
INDUSTRY Is VINDICATED
$80,000,000.
PHILADELPHIA.-The president of the National Association of
EXPECT $470,000,000 ON LIQUOR
Manufacturers analyzed the President's N.R.A. program here today
A means of recapturing this $212,000,000 and providing an esti-
and found it good.
mated total of $470,000,000 through Federal liquor taxes has been
Robert L. Lund, a member of the N.R.A. Industrial Advisory
provided for in a bill which the House Ways and Means Committee
Board and head of one of the most powerful business organiza-
will present to Congress next week.
tions in the country, approved every act of the administration in
The tentative measure, approved more than a week ago, after
its attempt to end the depression.
joint hearings with the Senate Finance Committee, calls for a $2
In framing the National Industrial Recovery Act the National
a gallon tax on distilled spirits-90 cents more than the existing
Administration and Congress have vindicated the policies and
levy. A reduction from $6 to $5 a barrel in the rate on beer is
philosophy of American industry ", Lund said in an address before
provided, and the present tariff rates, including $5 a gallon on
the Philadelphia Chamber of Commerce.
spirits, are retained. Varying excise levies on wines are included;
The philosophy of the act is to release business and industry
blended and rectified liquors will have to pay the existing extra
from the shackles of the antitrust laws, which for 50 years have
30 cents a gallon tax, and floor stocks of spirits the 90-cent dif-
made it impossible for business management to set its house in
ference between the present $1.10 tax and the contemplated $2.
order he said.
WILL TIGHTEN TAX ENFORCEMENT
Lund pointed to higher prices in agriculture and industry, to in-
creased employment, and higher wages as being attributable to
Drafting also will be completed, probably next week, of the
Mr. Roosevelt's program. These developments compare more than
other big 1934 tax measure, a revision program counted on to
favorably with statistics of other nations, he said.
bring the Treasury up to $270,000,000 more in each of the next 2
years, principally through tightening up of administrative pro-
visions of the income-tax laws.
[From the New York Herald Tribune, Dec. 23, 1933]
ROOSEVELT MAIL 10 TIMES ANY PREDECESSOR'S-25,000 CHRISTMAS
LETTERS AND BUNDLES DESCEND ON WHITE HOUSE IN NEW
N.R.A. INVENTORY SHOWS CODES AID 20,000,000-BRIGHT FUTURE
RECORD
ALSO SEEN AS LEADERS CONTINUE TO FLY EAGLE
WASHINGTON, December 22.-The White House tonight was all
In a year-end inventory N.R.A. announced yesterday its codes
but buried under an avalanche of Christmas mail and presents,
cover a preponderance of American industry and regulate work
the gifts of a Nation passing its first yuletide under the new deal.
hours and wages of 18 to 20 million workers.
More than 25,000 letters and bundles descended today on the
In just 6 months and 2 weeks from the day President Roose-
historic mansion, a volume 10 times greater than that enjoyed
velt signed the Industrial Control Act, 182 codes have been cre-
by even the most popular of previous administrations.
ated, covering the major part of the important industries. Hun-
To friends of the Roosevelts this recognition was looked upon
dreds of more codes are still to be prepared, but N.R.A. estimate
as an amazing example of Mr. Roosevelt's grip upon the popular
the industries affected by them employ only 4 to 6 million workers,
imagination and proof that the country is with him solidly after
and that the bulk of the organizing job could be completed by
nearly year of drastic measures calculated to lift the depression.
the end of January.
Yesterday marked the end of the original President's Reemploy-
ment Agreement, under which more than 3,000,000 employers won
the right to display the blue-eagle emblem. But the eagle will
[From the Washington Herald, Jan. 1, 1934]
continue to fly. Only a small portion of employers originally
GOVERNORS OF STATES FROM COAST TO COAST REPORT DECIDED UP-
under the voluntary agreement remain to be covered by manda-
TURN-INDIANA VIEWS 1933 ACTIVITY AS BENEFICIAL-HARMONY
tory codes. Anyone for whom a code is not in force can take
IN RESTORATION OF SOCIAL AND ECONOMIC ORDER COMMENDED BY
down the eagle and go back to unregulated wages and hours
GOVERNOR McNuTT
until the code for his industry or trade has been approved.
ALL INVITED UNDER EAGLE
(By Gov. Paul V. McNutt)
President Roosevelt, confident public opinion will condemn
INDIANAPOLIS, IND., December 31:-The new year 1934 ushers in
backsliders, has invited all to continue the voluntary agreement
an epoch of regained equilibrium for the American people, as
until May. From now on, anyone who displays the eagle is prom-
we view it with confidence from Indiana.
ising to abide either by his code or by the voluntary pact. Com-
Federal and State Governments of our Republic never before
pliance work against chiselers" will go right on.
have worked in such perfected harmony for relief of human dis-
The review of work done so far by N.R.A. recorded case after
tress and for the restoration of social and economic order. A
case in which leaders of major industries publicly testified to
new sun floods the horizon. Continuous unity of achievement
success of the experiment, and if totaled up an imposing list of
will bring the full warm sunshine of 1934.
business reforms achieved, ranging from the ban on child labor
WORST IN MARCH
and the sweatshop to universal acceptance of new standards in
truthful advertising.
Greatest distress obtained in Indiana in March of 1933 when
This general claim was made: "The latest accurate reports
it was estimated that 104,000 families were driven to seek public
show some 4,000,000 workers have been restored to gainful em-
relief. When Federal works programs entered the State, the list
ployment. The basic pay of nearly five times that number in
had receded to 80,000 families. Now the total does not exceed
factories, stores, and mines has been raised. Coupled with drastic
50,000 families, our relief agencies report. The total of employable
reductions in maximum work hours, this has brought about great
persons out of work when the year 1933 began was approximately
improvement in working and living conditions."
400,000 in Indiana.
206
CONGRESSIONAL RECORD-SENATE
JANUARY 8
Indiana's commission on unemployment relief now estimates
For all classes of employment combined there has been a gen-
that at least 100,000 persons have been returned to occupation
eral increase in employment of about 15 percent and an increase
in the industries; Indiana's council on N.R.A. estimates an addi-
in pay rolls of about 18 percent.
tional 40,000 has gone back to work at jobs created by new codes
The department of labor and industries estimated that the
of employment; on Federal civil works and public works adminis-
number of unemployed in Massachusetts as of January 1 was
tration jobs, including additional highway construction projects,
approximately 521,000, and of this number approximately 105,000
110,000 more have been given employment. It is estimated that
are now employed in private industry, reducing the estimate to
at least 250,000 of those 400,000 unemployed in Indiana at the
416,000 as of November 15. The number securing employment
beginning of 1933 have now found gainful occupation.
through governmental projects is not exactly known, but they
The winter pay roll for the reemployed working on State and
should be deducted from the 416,000.
Federal projects exceeds $17,000,000. N.R.A. has added $38,000,000
Massachusetts cities and towns and the State government have
a year to purchasing power of wage and salary earners.
until this year shouldered the entire burden of the welfare
expenditures, which have risen from above $9,000,000 in 1929 to
WORKERS CALLED BACK
$40,000,000 this year.
In our great Calumet steel center the mills have called 6,000
RELIEF INCREASED
back to work. Eight new breweries employ another 1,000, and
plans are on foot for development of 13 other such plants.
The number of persons assisted has increased from 150,000 in
Business indices show Indiana building activity, automobile
1929 to over 500,000 in 1933. This year the State is to receive in
production, electricity production, department-store sales well im-
the vicinity of $10,000,000 from Federal relief.
From April 1 until September 1 welfare lists dropped from 40 to
proved in the 12 months.
Bank debits, gasoline sales, and life-insurance sales have gained
50 percent in most of the industrial cities and towns, and the
and receded, but show net improvements over last January.
average decrease for the entire State was approximately 40 percent.
Since September there has been a considerable increase in relief.
In Massachusetts we are doing everything in our power to fur-
ILLINOIS PAY ROLLS INCREASE $7,000,000 OVER LAST YEAR
ther the policy of the President and we are succeeding far beyond
(By Gov. Henry Horner, of Illinois)
our expectations.
SPRINGFIELD, ILL., December 31.-Illinois has experienced a
marked improvement in general business conditions since January
SWIFT Co. SALES EXCEED $500,000,000
1, 1933.
CHICAGO, December 30.-With an increase in tonnage of about
Employment from January 1 to October 1, when the last accu-
6 percent, Swift & Co. showed annual sales amounting to a little
rate figures are available, increased 25.9 percent, while pay rolls
over $500,000,000, according to the annual statement of the com-
increased 32.6 percent.
pany released today.
Information indicates approximately 600,000 persons have ob-
In his report to shareholders, G. F. Swift, president of Swift &
tained employment since January 1. A majority of these persons,
Co., said:
up to the first of 1933, had been receiving assistance from the
Some of our products made profits due to rising inventory
Illinois Emergency Relief Commission, through its cooperating
prices. Properly speaking, such profits are capital gains, rather
agencies. The number of employed being put to work is being
than merchandising profits, and should be preserved to offset
increased daily by the efforts of the C.W.A.
future inventory losses. We have therefore set up a reserve of
State department of labor estimates are that pay rolls in the
$4,267,000 on our balance sheet against possible future losses due
State now are $7,000,000 a week greater than in last January.
to declining inventory prices."
The relief situation was the least serious for months in' Sep-
Mr. Swift's report discloses that there was an increase of 435,-
tember. The number of resident families receiving aid was only
000,000 pounds of meat production during the year and that there
210,239 as compared with 322,000 at the March peak. The relief
was an increase of 343,000,000 pounds during the last 3 months of
load rose slightly in October and figures probably will show that it
the year. As a result of this tremendous increase in the meat
rose again in November.
supply during August, September, and October and the low pur-
A suggestion for coping with such emergencies in the future is
chasing power of the Nation, wholesale and retail meat prices
this:
closed the year at low levels.
The several States, cooperating with the Federal Government,
should give consideration to the extension of the public-works
construction program to care for peak periods of unemployment
[From the New York Herald Tribune, Nov. 1933]
in the future.
HERE'S LOOKING AT NEW DEAL
To the New York Herald Tribune:
MICHIGAN LISTS PAY-ROLL GAINS
I get sick of hearing and reading perpetual destructive criticism
of the administration, of Roosevelt, and of his men.
(By Gov. Wm. A. Comstock, of Michigan)
Business is getting worse; the N.R.A. is killing business; Johnson
LANSING, MICH., December 31.-There were 93,992 more jobs in
is running wild; dead cats; Roosevelt is advised by long-haired
Michigan factories in October 1933 than in January 1933.
professors; we should never have gone off the gold standard. God
The approximate weekly pay rolls in Michigan manufacturing
knows where the dollar will go now. Flight of capital. From
industries for the month of October 1933 were $10,331,410, Decem-
downtown: We are doing a very active business. We are ship-
ber 1932 the pay rolls were $7,637,530. Thus, there was a gain
ping wealth abroad." Socialism: We elected a Democrat and
in the pay rolls of $2,693,580, or 35.2 percent.
now we've got a socialist." What has become of the Constitution?
Statistics collected and compiled by the Michigan Department
The stock exchange will be legislated out of existence.
of Labor and Industry are limited to the survey of employment
We are afflicted daily with this sort of rot, even occasionally
in manufacturing industries. Nonmanufacturing industries and
from the revised pages of this sincere-if every once in a while a
the wholesale and retail trade are not covered by this survey.
trifle misguided-newspaper.
In view of the increased employment and the pay-roll gain, one
All right. Business is getting worse. Business, according to the
would draw the conclusion that economic conditions in this State
Herald Tribune index, went up from 43 to 76 and is back at 59.
had improved considerably since January 1.
(Other index compilations show less recession.) In other words,
it is up 16 points since April. Did anybody in their senses expect
business to keep going up at the rate of 10 points a month in the
UPTURN FELT IN MISSOURI
index as it started out? Is Roosevelt supposed to be a magician?
(By Gov. Guy B. Park, of Missouri)
He is apparently expected to give us back prosperity all of a sud-
JEFFERSON CITY, Mo., December 31.-Economic conditions in
den without even turning the corner that Hoover spent three and
Missouri have improved since the beginning of 1933.
a half years trying to find.
Approximately 20,000 of the State's unemployed have returned
The N.R.A. is killing business. Certainly it has slowed it up.
to work during the past 12 months. No statistics are available
But was anyone naive enough to think that companies could
to disclose the extent of the pay-roll increases.
employ more men and pay them higher wages without reducing
Relief agencies have been established in every county, and in
profits somewhat? You can't spend the same money twice. The
connection with the Civil Works Administration, are doing every-
N.R.A. has given employment to 4,000,000 men in 4 months; call
thing possible to supply relief and work.
that nothing? It has done away with a multitude of abuses in
Economic conditions may cause a habitual mental state. Re-
industry. And profits are not over at that.
alization of this would be a big factor in improving matters.
So Johnson is running wild." The wonder in my mind is that
he is not wilder. Anyone who has had to contend with the 15,000
divergent interests he has had to, from captive mines to hot oil,
PAY ROLL GAIN IN BAY STATE CITED BY ELY-ECONOMIC CONDITION
is entitled to be crazy. I think he has done a mighty good job
OF MASSACHUSETTS SHOWS CONSIDERABLE IMPROVEMENT IN YEAR
myself. Talk about Owen Young getting the French to agree
(By Gov. Joseph B. Ely, of Massachusetts)
about money. That was duck soup compared to Johnson's job.
BOSTON, MASS., December 31.-The economic condition in Massa-
So, I say, give him a big hand and not a dead cat.
So Roosevelt is advised by long-haired professors? And whose
chusetts has improved to quite an extent since January 1 last.
advice should he take? Al Wiggins', I suppose? Or, perhaps,
This is evidenced by an increase in employment in manufactur-
Clarence Dillon's? Why should he not be advised by professors?
ing in November as compared with January of approximately 25
Warren has a very definite theory on the relationship of commod-
percent and an accompanying increase in the amount paid in
ity prices to gold. The details, if you care to read them, are in his
wages of approximately 40 percent.
book, Prices. The theory is not proved yet. But you've got to
EMPLOYED INCREASE
admit prices are up since we went off the gold basis. Give his
In the wholesale and retail trade the number employed increased
ideas a chance. They are likely to do as much good as mouthings
approximately 12 percent and pay-roll payments 9 percent.
about rugged individualism."
1934
CONGRESSIONAL RECORD-SENATE
207
Now for where the dollar is going." Personally I live and work
[From the Washington Post, Dec. 25, 1933]
in this country and expect to continue so. So I don't care the
MR. MAGRUDER DOESN'T LIKE PEOPLE WHO CRITICIZE
faintest iota where the dollar goes or how many grains of gold
there are in it, so long as I have a chance to earn a living and the
To. the EDITOR OF THE POST-SIR: Some men seem to have
dollars I earn will buy what I want. As I see it, that is Roosevelt's
arrived on this mundane sphere ahead of their time both politi-
cally and scientifically. For instance, when Galileo first an-
idea for the whole country.
The flight of capital. Rats leaving the ship-that is not sinking.
nounced the theory that the world was round instead of being
The worst flight of capital was when we lent all that money to
flat he was severely criticized, persecuted, and made to recant
the foreigners. This is easier to deal with; there will be an
under penalty of death. And, SO today, when President Roosevelt
launches out on a course which is diametrically opposed to the
embargo if it gets too bad.
so-called policy of rugged individualism, every man for him-
Socialism. Call it anything you want, but men have got to be
self and his satanic majesty take the hindmost, he is roundly
put to work. You cannot walk a block in any city without some
abused and severely criticized by those who believe in the do-
fellow hitting you up for a dime. That is not right. The con-
nothing policy of watchful waiting.
dition of which that is the symptom must be remedied, let the
President Roosevelt believes that it is the duty of the Govern-
chips fall where they may. Roosevelt realizes that. Socialism.
ment and the several States to help men help themselves" and
My family have owned property in and around this city for five
not let them starve in a land of plenty, and we sincerely believe
generations. That tends to conservatism. But for the Govern-
that the great majority of the people of the United States, regard-
ment to provide food and shelter and work for those without it;
less of party, creed, or previous condition, are with the President
if that is socialism, I am for it.
in his efforts to bring the country out of the slough of despair
As for the Constitution, if these efforts to give people work, to
and despondency into which it has been put by the do-nothing
make business fair, to raise prices to the debt level, violate the
policy of the Republican Party, which has been in continuous
Constitution, it's just too bad. There are 21 amendments to the
control of the Government for the past 12 years, up to 1933, during
Constitution already. Times change. The Constitution was never
which time the aforesaid party has "damned, ditched, and
expected to last forever in its original form.
drained the country."
One last thing. The stock exchange. That hits pretty close to
Now, some of the members of said party, and a few discredited
home. I work down there and have for many years. But even
and disgruntled Democrats, none of whom come forward' with any
I admit that it is not best for the country to let the stock ex-
better plan to help save the country from this awful depression,
change run wild. Brokers as a class know less about the wares
are throwing mud at and trying to discredit the actions and efforts
they deal in than a drug clerk does about what is in patent
of the head of this Nation-a man who has been working night
medicines. There should be some regulation. But don't forget
and day to bring order out of chaos, to help feed the hungry,
that the stock exchange is a kind of psychological safety valve;
clothe the naked and destitute.
and don't forget that the stock exchange was at times the only
Their actions, under the circumstances, are little short of trea-
means of raising liquid capital during the depression. Roosevelt
son. When we read some of the mud-slinging effusions of former
knows that.
leading Democrats, we are forced to the conclusion that Judas
Roosevelt is no Bolshevik, and no more am I. So here's looking
Iscariot had nothing on them.
at him in honest liquor on December 5.
S. MAGRUDER.
CITIZEN.
NEW YORK, November 11, 1933.
[From the New York Herald Tribune, Jan. 7, 1934]
NEW YORK EXCHANGE STOCKS' VALUES UP 550 MILLION-TOTAL PUT
[From the New York Herald Tribune, Dec. 8, 1933]
AT $33,094,751,244 ON JANUARY 1; AVERAGE PRICE RISES TO $25.59
HELP ROOSEVELT PULL U.S. OUT", FORD APPEALS-" 1934 TO BE
The total market value of the 1,209 stock issues on the New
GOOD YEAR FOR EVERYBODY WHO WORKS", HE TELLS 46,000
York Stock Exchange, as of January 1, had a total market value of
DEALERS-NEW MODELS OUT TODAY-EDSEL FORD SECONDS PRE-
$33,094,751,244, in comparison with a market value of $32,542,-
DICTION OF UPTURN SOON
456,452 for the 1,211 issues listed as of December 1, 1933, according
to an announcement from the exchange yesterday.
(By Bert Pierce)
The average price of all listed stock increased to $25.59 from the
DETROIT, December 7.-" We have got to pitch in and help the
$25.13 figure of December 1.
President pull the country out of a hole said Henry Ford in
The ratio of security loans to market value, as of January
speaking to a nation-wide audience of dealers today. He talked
1, was 2.55 percent. This contrasts with 2.43 percent on Decem-
over a long-distance telephone circuit from the Dearborn office.
ber 1. Stock Exchange member borrowings on security collateral
More than 9,000 dealers, 17,000 salesmen, and 20,000 other members
amounted to $845,132,524, as of the beginning of the month.
of dealer organizations listened to the address. The Canadian ter-
The Stock Exchange table, which follows, shows the listed stocks
ritory was included.
classified by industrial groups, with aggregate market value and
Mr. Ford's address follows:
average price for each:
Hello, everybody.
" You know I don't make speeches; I make cars.
Aver-
You are getting a good start on next year with a good car and
Stocks
Market value
age
price
a good outlook for business. I think 1934 will be a very good
year for everybody that works. That is one thing the depression
has taught us; the only thing that can pull this country through
Autos and accessories
$2,497,815,580
$23. 65
is work. There is plenty of work to do. We have all got to pitch
Financial
823,432,138
14.77
in and do all the business we can to help the President pull the
Chemicals
3,615,566,312
50.50
country out of the hole.
Building
278,426,859
17.84
So I wish every Ford salesman and dealer and manager a busy
Electrical equipment manufacturers
796,225,838
19.48
and prosperous year. Thank you."
Foods
2,243,550,784
30.30
Rubber and tires
269,185,506
26.61
Farm machinery
400,238,291
32.51
Amusements
134,321,857
9.71
Land and realty
38,320,586
7.71
[From the Washington Star, Dec. 8, 1933]
Machinery and metals
1,021,043,599
21.28
Mining (excluding iron)
1,135,844,899
20.70
FORD Asks DEALERS TO BACK PRESIDENT-MOTOR MAGNATE SAYS EACH
Petroleum
3,940,079,727
21.52
Paper and publishing
171,638,727
10.21
MUST Do UTMOST TO SPEED RECOVERY
Retail merchandizing
1,617,241,273
26.64
DETROIT, December 8.-In his first public utterance since the
Railways and equipments
3,704,770,998
32.16
Fall of 1932, when he spoke in behalf of former President Herbert
Steel, iron, and coke
1,450,707,794
36.86
Textiles
210,308,873
18.76
Hoover, Henry Ford yesterday asked Ford Motor Co. dealers to
Gas and electric (operating)
1,677,802,845
24.17
pitch in and do all the business we can to help the President pull
Gas and electric (holdings)
982,840,141
10.20
the country out of the hole."
Communications (cable, telegraph and radio)
2,488,543,499
66. 19
I think 1934 will be a very good year for everybody that works,"
Miscellaneous utilities
150,315,179
14.81
Mr. Ford said in a brief address over an international telephone
Aviation
187,088,508
9.58
hook-up from his Dearborn offices. "That is one thing the de-
Business and office equipment
256,183,258
24.10
Shipping services
9,097,385
4.35
pression has taught us; the only thing that can pull this country
Ship operation and building
27,024,903
8.01
through is work. There is plenty of work to do. We have all got
Miscellaneous business
71,342,174
13.68
to pitch in and do all the business we can 'to help the President
Leather and boots
227,508,087
33.02
1,317,665,704
50.83
pull the country out of the hole."
Tobacco
These words, coming from the outstanding non-signatory to the
Garments
15,799,891
12.15
United States companies operating abroad
627,690,796
18.66
N.R.A. automotive code, the man who last summer told news-
Foreign companies (including Cuba and Canada)
707,129,233
18.99
paper men that "I have nothing to say about the N.R.A. or any-
thing else," were studied with interest,
All listed stocks
33,094,751,244
25.59
Those who heard Mr. Ford's talk yesterday recalled that N.R.A.
Administrator Hugh S. Johnson said at Atlanta, Ga., several
In comparison with a month ago, 12 of the 32 divisions showed
weeks ago that he was satisfied the Ford Co. was living up to
decreases in the average price.
the requirements of the code.
ANTHRACITE OUTPUT NEAR RECORD
Ford Co. officials have asserted that the concern is complying
with the automotive code up to the point of actually signing the
HAZLETON, PA., January 6.-Production of anthracite at the
agreement and that the company would have to live down to
collieries of the Lehigh field is nearing war-time records, ac-
the code, not up to it."
cording to figures of the Lehigh Valley Railroad today. Ship-
208
CONGRESSIONAL RECORD-SENATE
JANUARY 8
ments on Wednesday, consisting of more than 27,000 tons, were
There is not any way on earth that this money, this
the best since 1927. Yesterday 30,881 tons went to market, which
$10,000,000,000, can be paid except by taxation, and if the
is close to the mark in 1918, when the average daily output was
about 34,000 tons. The mines here have been making good time
Democratic Party or the Republican Party allow this work
since November 5.
to go on with any idea in mind that they are going to
saddle the cost of it on the backs of the common taxpayer
Mr. ROBINSON of Arkansas. Mr. President, in connec-
of this country, the kind of men and women who have
tion with my remarks I ask leave to insert a statement, be-
been paying the taxes all the time, considering the amount
lieved to be correct, showing the public debts of a number
of taxes that it will be necessary to levy in order to retire
of foreign countries in comparison with the public debt of
these bonds, it will be a travesty and a crime against hu-
the United States.
manity, and, compared to the suffering which will be caused,
There being no objection, the matter was ordered to be
that which has been endured during the last 4 years will
printed in the RECORD, as follows:
not hold a candle. If there is any idea that the bonds pro-
United Kingdom: Total public debt, as of September 30, 1933,
viding the enormous, overwhelming expenditures, billions
£8,111,000,000; converted at par of exchange, $39,472,000,000; con-
verted at prevailing rate of exchange, $38,401,000,000 (1 pound=
upon billions of dollars, disbursed with the idea in mind
$4.74464).
that they are to relieve the suffering of the man who has
France: Total public debt, as of August 1933, francs, 502,000,-
not got anything, must be retired and discharged by taxa-
000,000; converted at par of exchange, $19,678,000,000; converted
at prevailing rate of exchange, $26,455,000,000 (1 franc=$0.0527).
tion along the lines of present taxation, then, the day of
Belgium: Total public debt as of Setpember 30, 1933, francs,
suffering is only beginning to assert its blight in the coun-
57,349,000,000; converted at par of exchange, $1,594,000,000; con-
try, because you will have to take it out of the blood and
verted at prevailing rate of exchange, $2,437,000,000 (1 franc=
the marrow and the bone of the common people of this
$0.425).
Germany: Total public debt as of September 30, 1933, Reichs-
country as the taxes have been taken up until this time.
mark, 13,211,100,000; converted at par of exchange, $3,147,000,000;
The Senator from Indiana [Mr. ROBINSON] and myself, the
converted at prevailing rate of exchange, $4,802,000,000 (1 Reichs-
Senator from Nebraska [Mr. NORRIS], the Senator from West
mark=$0.363457)
Italy: Total public debt as of August 31, 1933, lire, 99,468,000,000;
Virginia [Mr. NEELY], the Senator from Montana [Mr.
converted at par of exchange, $5,232,000,000; converted at prevail-
WHEELER]-I could call the roll on down for some twenty-
ing rate of exchange, $7,957,000,000 (1 lira=$0.08)
voted for a bill here, Mr. President, which I had the honor
Japan: Total public debt, as of November 30, 1933, yen, 7,809,-
100,000; converted at par of exchange, $3,893,000,000; converted at
to introduce, and which I have reintroduced, which would
prevailing rate of exchange, $2,395,000,000 (1 yen=$0.30675).
pay for this work as it is going on and not allow future gen-
erations to be mortgaged and unborn children to be pledged
Mr. LONG obtained the floor.
for the payment of this enormous issue of bonds and the cost
Mr. ROBINSON of Indiana. Will the Senator from Lou-
of interest necessary to do this work.
isiana yield to me for a moment?
The PRESIDING OFFICER (Mr. POPE in the chair).
Some of this work is useful, some of it is not useful; some
Does the Senator from Louisiana yield to the Senator from
of it is building the country, some of it is not building the
country; some of it is helping humanity and some of it is
Indiana?
not helping humanity; some of it is building humanity and
Mr. LONG. I yield.
Mr. ROBINSON of Indiana. I want to ask the Senator
some of it is destroying humanity. I am glad to say that, in
from Louisiana to yield to me long enough to read one para-
my opinion, only a relatively small proportion is affected by
what I would call the detriment of humanity. But, Mr.
graph into the RECORD from the Washington Post of Wednes-
President, the worst thing that ever happened on earth is for
day, December 13. The paragraph is as follows:
the United States to have allowed a condition to creep upon
Walter Reed Hospital, famous for its treatment of World War
veterans, now is caring for 350 Civilian Conservation Corps men
the people under which they finally reached a point where
and only 4 veterans of the war. These four are in the hospital
we had to dole money to them. The worst thing that ever
because they are too ill to be removed.
happened was when we did feed the people we had to go
In other words, if I may say a word further in the time
with money out of the crib, like going out into the woods
of the Senator from Louisiana, they have driven the old
and scattering corn to the hogs on the range, calling them
soldiers from their beds in the hospitals, erected by the
up from here, there, and yonder, throwing them out a hand-
people for the use of the soldiers and for their comfort and
ful of corn, and after you throw them out corn every third
welfare, and given them to these young, able-bodied men of
or fourth day you cannot get a hog to go out and look for
the age of 25 and thereabouts. I thank the Senator from
mast for itself, much less get into a ditch and look for a
crawfish.
Louisiana.
EVERY MAN A KING
We have had to resort-and I am sorry to say that I
Mr. LONG. Mr. President, I want to strike a note of
voted for it, and I am not criticizing anybody for it, for I
harmony in the Senate. I agree with both the Senators, the
know of nothing else under the kind of program we have
one from Indiana [Mr. ROBINSON] and the one from Arkan-
enacted that could be done, and I accept my part of the
sas [Mr. ROBINSON]. Neither of the Senators, however, has
responsibility-but we have a system which® we are trying to
studied his own remarks to find just how much in agreement
establish to feed the American people by which we are
they are. There is no difference between the Senator from
letting them sweep leaves from one side of a park to the
Indiana and the Senator from Arkansas and myself, so far as
other side of a park, and I am told, even to sweeping some
of the sand of the desert in some instances, all of which we
their remarks go.
The Senator from Indiana is one of the few men who could
have found to be necessary in order to go through the mo-
make in good faith the speech he has made. The Senator
tion of giving the people some kind of work to do, because
from Indiana voted, I take it, for the public-works appro-
it is better to do that than allow the human race to starve
priation; he voted for the various and sundry measures that
and perish for the necessities of life.
authorized the C.W.A.; but the Senator from Indiana also
We have had a tree-planting bill. I called it the sapling
voted for an amendment which I proposed in the Senate
bill. That term is better understood over the United States.
which would have raised sufficient money to have prosecuted
None the less, I am willing to concede that something must
this work without piling up any deficit and without doing
be done to spread the money out into the hands of the people
any harm to the people of the United States, particularly
of the country, because anything that is done along that line
the common people.
is better than allowing the people in idleness to starve to
The Senator from Arkansas [Mr. ROBINSON] is right so
death.
far as he has gone. He voted for the public works part of
But how are we going to raise this money? Are we going
the program; he voted for some of the other bills; I pre-
to perpetuate these people on the roll of doles and doles and
sume for all of them; but the trouble with the Senator
doles? Are we going to continue to load the pay rolls of the
from Arkansas is that he has not yet gone the distance
Government of the United States with dollar-a-day men and
in voting for a program that will pay for the work that
$12-a-week men until the pay rolls are so high we cannot
is being done.
see the sun because of them?
1934
CONGRESSIONAL RECORD-SENATE
209
Instead of restoring men to the channels of life where
The PRESIDING OFFICER. Occupants of the galleries
they sell their labor in the market where their labor is
will refrain from any demonstrations of approval or dis-
protected and their hours of labor fixed by laws under such
approval, which are forbidden by the rules of the Senate.
conditions as will prevent the feudal system coming to
Mr. LEWIS. I would like to ask the Senator, he having
America, instead of having a system established by which
defined to me the paper to which he alluded, if he will in-
any man can get a job and work reasonable hours, are we
form us who is the owner, publisher, and editor of that
going to continue this process, and if so, how long, by which
paper.
men are paid for doing nothing and even are quitting jobs
Mr. LONG. The Senator from Illinois himself is one of
where there is work to do to get on the dole pay roll where
the subscribers, although he has not paid his subscription
there is no work to do? I was one of those who voted for
yet. [Laughter in the galleries.]
it and I have said that I approve of it. I have seen ex-
The PRESIDING OFFICER. Occupants of the galleries
amples in my own home where men would quit work at the
must preserve order or the galleries will be cleared.
cotton warehouses where they had been employed gainfully,
Mr. LEWIS. I must answer my able friend from Louisi-
giving up those jobs to get on the Government relief pay
ana that as I know nothing of the paper I would gladly
roll. Bad as it may be, I have voted for it, seeing it would
read it, and if I have been receiving it and not paying for it,
come, and would vote for it again, bad as it is, before I
it would indicate my estimate of its value. [Laughter.]
would see the same number of people unemployed and
I am anxious to know who is back of the paper.
starving.
Mr. LONG. The Senator from Illinois paid a dollar for
But where is the money coming from to keep up the
my dinner one night, and we are sending him a subscription
system? What man has proposed a remedy except that
for 2 years to make up for it.
which was proposed in the bill which I introduced in the
Mr. LEWIS. I thank the Senator for his generosity.
last session of Congress? Are we going to continue to pile
Mr. LONG. I am one of the helpers and publishers. I
up the deficit and take no thought of where the money is
am not a stockholder in the paper. I sold all the stock that
coming from? It is perhaps a liberal administration and
was sold with a full realization that it would never bring
I am one of its members, but are we proposing to pay
any returns on the investment.
out 10. billions of dollars and increase the national debt
I have, however, an Associated Press dispatch of President
from $26,000,000,000 up to $36,000,000,000, and then expect
Roosevelt's remarks on October 21, and I read from his re-,
to pay not only the debt that was already stifling the com-
marks:
mon men of this country, but the $10,000,000,000 more that
In wealth and education there is represented only a minority of
was given for their relief, and expect to take it out of the
the people. As I recall the words of a professor in my school-
bone and out of the hide and out of the blood of the com-
This is President Roosevelt speaking-
mon people of the United States? If not, why do we not
As I recall the words of a professor in my school, the wider a
distribution of wealth there is in the proper way, the more we can
have something done, either taking up the bill which I have
make it possible for the men and women of the land to have the
introduced or a bill coming from some other responsible
necessities of life in such shape that they will not have to lie
source, showing to the American people and to the Congress
awake at night worrying where the food for tomorrow will come
of the United States where this money is coming from to
from. Then-
pay for this reconstruction work.
Said the President of the United States—
Mr. President, if we will take the money from the source
Then, and only then, will we have the security necessary for
the country.
from which it should be taken, we will not have to continue
this dole system, but if we continue to allow the money
That is the speech of the President of the United States
to be owned by comparatively few men and if we continue
that was not printed in the public press except by accident,
to allow a few men to own more than all the balance of the
although it went out over the Associated Press wire. I shall
send this to the desk in order that the full article may be
people in the United States put together, we can dole and
dole and plant saplings and do everything we want to from
printed after I shall have read just another paragraph or
now until Christ comes back to earth, and the condition
two.
will be worse at the time we get through than it is now.
Then said the President:
Only when the wealth of the country is distributed amongst
You are not permanently correcting this situation. You
the people so that the few will not own more than the masses
are permanently aggravating this situation. You are mak-
will the country have such a thing as national security.
ing the amount of money the common man has to pay
Those are the words of the President of the United States
heavier than it was when you started. He has $36,000,-
on October 21, 1933, in the last year of our Lord, 2 months
000,000 that he has to pay, and the interest on $36,000,000,-
before this Congress assembled. The President of the United
000, and the cost of running the Government that is loaded
States said that only could there be national security through
down with that debt, and not one single finger has been
a distribution of the wealth of this country into the hands
raised in this body since I have been here, under the old
of the masses.
administration or under the new administration, to take one
If we are going along-and I propose to go along-increas-
dime of the cost of resuscitating the human race off the
ing the Government debt to where we do not think about a
back of the common man himself.
million dollars any more nor a hundred million dollars, but
President Roosevelt has spoken about this matter lately.
where we estimate our expenditures and our national debt
It got into only two newspapers. I sent over to the White
in the billions and tens of billions-if we are going along in
House for a copy of the speech and they said it was not to
that way, there is no reason on earth and not only is there
be had there. No doubt the few copies they had had already
no reason on earth, but on the contrary there is every re-
been called for. The President made a speech on October
quirement and necessity that the United States Senate and
21 last and it was sent out over the Associated Press wires.
the House of Representatives shall prescribe the method of
I have it here. It was not printed in more than two news-
paying this deficit as we go along.
papers in the United States, the Chicago Daily News and the
There is a way to pay it, Mr. President. There is a way
American Progress.
to pay it without hurting anybody, and there is a way to
Mr. LEWIS. Mr. President, may I ask the Senator from
pay it by correcting this very damnable condition that
Louisiana what is the American Progress?
brought on the depression and keeps it on today. There is
Mr. LONG. It is a patriotic journal that sprung up from
only one thing on God's topside face of earth that keeps
necessity to free the human race in America. [Laughter in
this condition of depression on in this country today, and
the galleries.]
that is because, as is shown by the bank deposits alone, one
Mr. LEWIS. Mr. President, I ask that the occupants of
tenth of 1 percent of the bank depositors have more money
the galleries be informed that it is against the rules of the
in the national banks than all the other 99 9/10 percent of
Senate to make any demonstration.
the bank depositors put together, to say nothing of the fact
No. 4-6
210
CONGRESSIONAL RECORD-SENATE
JANUARY 8
that millions and millions of the people have not any bank
cited as the wisest of all the world's philosophers. I read
accounts at all.
a few lines from Plato.
There is not any way to correct the condition except
Said Plato:
through scattering the fruits and the wealth of the land,
In a state which is desirous of being saved from the greatest
and yet we continue to pile up and to pile up and to pile up
of all plagues-not faction, but distraction-there should exist
the debt. I agree with the Senator from Arkansas; we
among the citizens neither extreme poverty nor, again, excessive
wealth, for both are productive of both these evils.
ought to authorize the work that has been done, however
faulty some of it may be, as the Senator so nobly admits and
In other words, excessive wealth produces excessive pov-
as I admit. We ought to continue to authorize everything
erty, and excessive poverty produces excessive wealth. Both
necessary to feed the hungry and to clothe the naked. We
are productive of these evils.
are not feeding them all. We are not clothing them all.
Now the legislator should determine what is to be the limit of
Where there is one man on the dole roll today there are
poverty or wealth. Let the limit of poverty be the value of the
lot. This ought to be preserved and no ruler, nor anyone else
two men trying to get on the dole roll today; and we are
who aspires after a reputation for virtue, will allow the lot to
going to be faced with the proposition not of just continuing
be impaired in any case. This the legislator gives as measure,
this dole roll until springtime comes but of continuing the
and he will permit a man to acquire double or triple, or as
dole when spring is here, and when summer is here, and
much as four times the amount of this. But if a person have
yet greater riches, whether he has found them or they have
when the fall comes.
been given him or he has made them in business, or acquired
I call that a dole roll, Mr. President, for $12 a week is
by any stroke of fortune that which is in excess of the measure,
not anything. Fifty dollars a month is nothing. That is
if he gives them back to the State, and to the gods who are
the patrons of the State, he shall suffer no penalty or loss of
not house rent, in normal times, for half the people of this
reputation. But if he disobeys this, our law, anyone who likes
country. Fifty dollars a month will not pay for the light
may inform against him and receive half the value of the excess;
and the water and the house rent, let alone the food and
and the delinquent shall pay a sum equal to the excess out of his
the clothes that people ought to have in anything like a
own property, and the other half of the excess shall belong to
the gods.
respectable home. But if we are going to continue the dole
roll, we are going to have to take care of all the rest of the
So, Mr. President, there is nothing new under the sun.
people who are trying to get on the dole roll. We are not
Mr. LEWIS. Mr. President, will the Senator yield?
keeping it entirely complete by a whole lot in my country,
The PRESIDING OFFICER. Does the Senator from
because many and many of my friends are trying to get on
Louisiana yield to the Senator from Illinois?
the dole roll who cannot get on it today.
Mr. LONG. I yield to the Senator from Illinois.
I am not saying that they are kept off because they are
Mr. LEWIS. I wish to say to the able Senator, while I
my friends; but that fact did not help them get on the dole
thank him for his reference to what he has been kind enough
roll. [Laughter.] I am not condemning that. If some-
to refer to as a compendium of small information I possess,
body else will feed the anti-Long men, I will help feed the
that it may interest him to know that apart from the quota-
Long men down there as long as I can. I am not con-
tion which he has read, which comes from the Republic of
demning that. That helps us all; but I happen to know
Plato, he will find the same philosophy, almost the same
from bitter experiences that thousands and thousands and
expression, in the Holy Scripture, in the philosophy of Agar,
thousands of men are trying to get on the dole roll today,
fortifying his viewpoint.
and it is not fair for one set of politicians-and I use the
Mr. LONG. Yes; I thank the Senator. It is in the Holy
word advisedly-to get their friends on the dole roll and not
Scripture, as the Senator from Illinois says, practically in
permit somebody else to get theirs on it. We cannot keep
the same words, or at least to the same effect. It will be
the dole roll going by keeping part of them on and keeping
found in the speech of Daniel Webster that he made at
part of them off. We are going to have to open up the dole
Plymouth, practically in the same words. It will be found
roll and put all the rest of them on, and then, finally, be
in the words of Abraham Lincoln. It will be found-in the
weighted down to the proposition that the bonds must in-
words of Lord Bacon. It will be found in the words of
crease, as the President says they must increase, and the
Theodore Roosevelt. It will be found in the words of Wil-
debt must increase, and you call that a distribution of
liam Jennings Bryan; and I have already read it to you in
wealth! You call that a transfusion of wealth! You call
the words of Franklin D. Roosevelt.
that a diffusion of wealth!
The time is here. Why sit we here idle, and let this public
You cannot take one sick man who is dying and take blood
debt and this burden of government pile up on the little
out of his veins and transfuse it into the veins of another
man who is having to pay it? You say, I am going to
man who is dying and make the other man well. You can-
relieve you of the load." You are giving him a biscuit to
not take from the weak and give strength to the weak. You
eat, and you put a barrel of flour more taxes on top of his
cannot take from the impoverished to give food to the starv-
head to carry. How are you relieving anybody here in this
ing. You cannot take from the naked to give clothes to
country? You come along and you dole out to him 12 little
the naked. But if you continue to pile up this debt and pile
2-by-4 dollars in a week, and you say, Now, go along
up this debt and pile up this debt, and not in its incipiency
with that; and, oh boy, just to be sure you do go along, I
or at some reasonable stage of this matter provide a way to
want to tell you that there is 10 billion more in taxes and
pay it, how, then, is it going to be paid except by the taxes
interest to pay for the next 50 years of your life in order
loaded and carried right on down to the man standing on the
for you to get enough money to pay for your washing for the
last week."
bottom, where the taxes of this country are today?
Why do we sit here, Mr. President? The first thing I did
My resolution proposes that a man can have but $50,-
when I came to the United States Senate, ignorant as I was
000,000; that he can inherit but $5,000,000; that he can
of the proceedings, unschooled as I was in the manner of
carn but $1,000,000 per year-all over those amounts to be
legislation, was to introduce in the Senate a resolution to
paid to the United States. It would hurt no one. It would
provide that there should be a limit to the amount which
give everybody that has a fortune more than he can ever use
a man should own, and that the wealth of this country
for his living or for the living of his children. And it would
should be brought back into the Treasury and diffused
give the United States $15,000,000,000 per year to do every-
among the 120 or 130 millions of people by relieving them
thing the Government is doing or needs to do. It proposes:
of taxes, paying it out in public works and other benefits
Every man a king.
that the Government could very handsomely bestow. That
Mr. President, I wonder if my friend from Illinois [Mr.
proposal is made in a resolution now lying on the desk that
LEWIS] has read the American Progress. If he has not read
I intend to call up right away, within the next few days,
it I do not suppose he needs to read it, because he is one of
Mr. President. Not only do I propose to relieve the people
the few men in the Senate who have read everything the
of the taxes that they are already paying, but I attach to
American Progress could print anyway that is fit to read.
the resolution which now lies on the desk of the Senate a
But here is something from the old Greek philosopher, Plato,
proposal that we shall have an old-age pension in the
1934
CONGRESSIONAL RECORD-SENATE
211
United States, in keeping with the Democratic Party's last
Mr. JOHNSON. Then, if the Senator will permit me, the
pronouncement.
first bill upon the calendar, which has been pending for
In the Chicago convention the Democratic Party went on
some time, is designed to prevent the sale in this country of
record for an old-age pension to be paid by the States. The
securities of countries which are in default. It is a bill
States cannot pay it. The States have not enough money
which I intend to press at the earliest possible moment. At
to pay it.
this time I ask permission to have the bill reprinted, with
The only way in which the Democratic Party's platform
two very brief amendments in the measure, so that the
can be carried out is for the United States Government to
amendments may be before the Senate when the bill is
collect the money from the swollen fortunes and to remit
reached for consideration.
it to the States to be paid out. So, in order to keep the faith
The VICE PRESIDENT. Is there objection? The Chair
of the party, in order to carry out the platform that I
hears none, and it is so ordered.
helped to adopt as a delegate and as a national committee-
TAXATION OF ALCOHOLIC LIQUORS-REPORT
man to the Chicago convention, I propose that we shall
Mr. HARRISON, from the Committee on Finance, to which
collect into the Treasury of the United States through limit-
was referred the bill (H.R. 6131) to raise revenue by taxing
ing the fortunes of the big men, through limiting the in-
certain intoxicating liquors, and for other purposes, reported
heritances of the rich young men, through limiting the
it with amendments and submitted a report (no. 149)
amount that one man can make in a year, a sum that I
thereon.
estimate on good authority at $15,000,000,000 per year; and
EXECUTIVE SESSION
I propose that we shall take from that sum enough money
Mr. ROBINSON of Arkansas. I move that the Senate
to give every man who is 60 years old and every woman who
is 60 years old $30 a month unless they have a net income
proceed to the consideration of executive business.
that exceeds $1,000 a year or property that is of a value of
The motion was agreed to; and the Senate proceeded to
the consideration of executive business.
$10,000. I propose that we carry that out, that we carry
out the faith of the party, that we correct this trouble that
EXECUTIVE MESSAGES REFERRED
has brought America to the brink of disaster, that we pro-
The VICE PRESIDENT laid before the Senate sundry mes-
vide a means of keeping the Treasury solvent, and that we
sages from the President of the United States submitting
provide a way of bringing down the powerful to a point
nominations, which were referred to the appropriate com-
where they are not so powerful that any man cannot thrive
mittees.
in competition with them. I propose that all these wreck-
(For nominations this day received, see the end of Senate
ages be brushed away by harming no one, but by making
proceedings.)
such a thing in America as a limit to the accumulations of
REPORTS OF COMMITTEES
one man, as a limit to the fortune of one man, thereby im-
Mr. KING, from the Committee on the District of Colum-
posing a limit to the starvation and poverty that we will
bia, reported favorably the nominations of George E. Allen
impose upon the masses.
and Melvin C. Hazen, both of the District of Columbia, to
Mr. President, I ask leave to have printed in the RECORD,
be Commissioners of the District of Columbia for terms of
at the conclusion of my remarks, a brief extract from the
3 years each.
speech of President Roosevelt at Chestertown, Md., on Oc-
He also, from the Committee on Finance, reported favor-
tober 21, 1933.
ably the nomination of Margaret M. McQuilkin, of Salt Lake
There being no objection, the matter referred to was
City, Utah, to be collector of customs for Customs Collec-
ordered to be printed in the RECORD, as follows:
tion District No. 48, with headquarters at Salt Lake City,
[From the speech of President Roosevelt]
Utah, in place of Jennie P. Musser, resigned.
As I recall the words of a professor in my school, the wider a
Mr. HARRISON, from the Committee on Finance, reported
distribution of wealth there is in the proper way the more we
favorably the nomination of James J. Hoey, of New York,
can make it possible for the men and women of the land to have
the necessities of life in such shape that they will not have to lie
N.Y., to be collector of internal revenue for the second dis-
awake at night worrying where the food for tomorrow will come
trict of New York, in place of William Duggan, resigned.
from. Then, and only then, will we have the security necessary
Mr. WALSH, from the Committee on Finance, reported
for the country.
favorably the following nominations:
CALL OF THE ROLL
Peter M. Gagne, of Somersworth, N.H., to be collector of
Mr. THOMAS of Oklahoma. I suggest the absence of a
internal revenue for the district of New Hampshire, in place
quorum.
of John H. Field, resigned.
The PRESIDING OFFICER. The clerk will call the roll.
Clinton A. Clauson, of Maine, to be collector of internal
The legislative clerk called the roll, and the following
revenue for the district of Maine, in place of Frank J. Ham,
Senators answered to their names:
resigned;
Adams
Couzens
Keyes
Robinson, Ark.
John H. Dooley, of Portland, Maine, to be collector of
Ashurst
Cutting
King
Robinson, Ind.
customs for Customs Collection District No. 1, with head-
Austin
Davis
La Follette
Russell
Bachman
Dickinson
Lewis
Schall
quarters at Portland, Maine, in place of Frank M. Hume;
Bailey
Dill
Logan
Sheppard
Samuel T. Ladd, of Portsmouth, N.H., to be comptroller
Bankhead
Duffy
Lonergan
Shipstead
of customs in Customs Collection District No. 4, with head-
Barbour
Erickson
Long
Smith
Black
Fess
McCarran
Steiwer
quarters at Boston, Mass., in place of Dwight Hall, resigned:
Bone
Frazier
McGill
Stephens
and
Brown
George
McKellar
Thomas, Okla.
Bulkley
Glass
McNary
Thomas, Utah
Joseph P. Carney, of Massachusetts, to be collector of in-
Bulow
Goldsborough
Murphy
Thompson
ternal revenue for the district of Massachusetts, in place of
Byrd
Gore
Neely
Townsend
Thomas W. White, resigned. (Serving under temporary
Byrnes
Hale
Norris
Trammell
Capper
Harrison
Nye
Tydings
commission issued during the recess of the Senate.)
Caraway
Hastings
O'Mahoney
Vandenberg
Mr. CLARK, from the Committee on Finance, reported
Carey
Hatch
Overton
Van Nuys
favorably the following nominations:
Clark
Hatfield
Patterson
Wagner
Connally
Hayden
Pittman
Walcott
Dan M. Nee, of Missouri, to be collector of internal revenue
Coolidge
Hebert
Pope
Walsh
for the sixth district of Missouri in place of Dan G. Stewart,
Copeland
Johnson
Reed
Wheeler
Costigan
Kean
Reynolds
White
resigned; and
Fountain Rothwell, of Missouri, to be collector of customs
The VICE PRESIDENT. Ninety-one Senators having
for customs collection district no. 45, with headquarters at
answered to their names, a quorum is present.
St. Louis, Mo., in place of Louis M. Hall, resigned.
PROHIBITION OF TRANSACTIONS WITH DEFAULTING GOVERNMENTS
Mr. BYRD, from the Committee on Finance, reported
Mr. JOHNSON. Mr. President, is it the intention of the
favorably the following nominations:
Senator from Arkansas that the Senate shall proceed with
Marion Glass Banister, of Virginia, to be Assistant Treas-
the calendar this afternoon?
urer of the United States in place of George O. Barnes,
Mr. ROBINSON of Arkansas. It is not.
resigned;
212
CONGRESSIONAL RECORD-SENATE
JANUARY 8
Byd Leavell, of Virginia, to be Assistant Register of the
I understand that Mr. Bailie has resigned; that it was
Treasury in place of Frank A. De Groot;
a condition precedent to Mr. Morgenthau's being confirmed;
Nathaniel B. Early, Jr., of Ruckersville, Va., to be collector
that the Committee on Finance of the Senate would not
of internal revenue for the district of Virginia in place of
permit his confirmation until Bailie had resigned. Yet
A. Pendleton Strother, resigned; and
there is this string to it: He will hold over all through Janu-
I. Walke Truxtun, of Norfolk, Va., to be collector of cus-
ary. So far as I know, and so far as anybody here may
toms for customs collection district no. 14, with headquar-
know, he is in consultation with Mr. Morgenthau and Mr.
ters at Norfolk, Va., in place of Joseph L. Crupper, resigned.
Morgenthau with him. It is just an unfortunate situation,
(Serving under temporary commission issued during the re-
and it seems to me someone else should be chosen for the
cess of the Senate.)
high office of Secretary of the Treasury. I therefore register
Mr. REED, from the Committee on Finance, reported
my objection to the confirmation.
favorably the nomination of Assistant Sanitary Engineer
The VICE PRESIDENT. The question is, Will the Senate
Omar C. Hopkins to be passed assistant sanitary engineer,
advise and consent to the nomination?
to rank as such from September 5, 1933, and also the nomi-
The nomination was confirmed.
nations of sundry other officers in the Public Health Service.
CARTER H. HARRISON
Mr. REED (for Mr. COUZENS), from the Committee on
Finance, reported favorably the nomination of Eldon P.
Mr. LEWIS. Mr. President, earlier in the day, at the
King, of Ontario, Oreg., to be Special Deputy Commis-
request of the chairman of the Committee on Finance, the
sioner of Internal Revenue in place of Pressly R. Baldridge,
senior Senator from Mississippi [Mr. HARRISON], I reported
resigned.
favorably the nomination of Carter H. Harrison, of the
Mr. McADOO, from the Committee on Finance, reported
city of Chicago, State of Illinois, to be collector of internal
favorably the nomination of Alfred A. Cohn, of Los Angeles,
revenue for the first district of Illinois.
Calif., to be collector of customs for customs collection dis-
I ask unanimous consent that the nomination of Mr.
trict no. 27, with headquarters at Los Angeles, Calif., in
Harrison be confirmed at this time, in view of the situation
place of Howard W. Seager, resigned.
with respect to the office to which he has been nominated.
Mr. CONNALLY, from the Committee on Finance, reported
The VICE PRESIDENT. The clerk informs the Chair
favorably the following nominations:
that the senior Senator from Washington [Mr. DILL] has
Frank Scofield, of Hillsboro, Tex., to be collector of
objected to the confirmation. Unless that objection is with-
internal revenue for the first district of Texas, in place of
drawn, it would necessarily mean that the nomination must
Alexander S. Walker, deceased; and
go over.
Adrian Pool, of El Paso, Tex., to be collector of customs
Mr. LEWIS. I thought he objected on the ground that
for Customs Collection District No. 24, with headquarters
he did not think the nomination should be called up while
at El Paso, Tex., in place of Manuel B. Otero, resigned.
the Senate was in legislative session. If I am in error, then
Mr. GEORGE, from the Committee on Finance, reported
I prefer to withhold action on the nomination.
favorably the nomination of Howell Cone, of Statesboro, Ga.,
Mr. ROBINSON of Arkansas. It is my understanding
to be collector of customs for Customs Collection District
that the objection made by the Senator from Washington
No. 17, with headquarters at Savannah, Ga., in place of
was to the Senate's proceeding to the consideration of the
Marion O. Dunning, resigned.
nomination out of order. I concur in the recollection of
Mr. BARKLEY, from the Committee on Finance, reported
the Senator from Illinois.
favorably the nomination of Seldon R. Glenn, of Louisville,
Mr. LEWIS. I so understood him.
Ky., to be collector of internal revenue for the district of
Mr. McNARY. Mr. President, I am not clear as to the
Kentucky, in place of Emil S. Helburn, resigned.
status of this nomination as yet. Is the Senator asking
The VICE PRESIDENT. The nominations will be placed
unanimous consent for confirmation without reference of
on the calendar.
the nomination to the committee?
The VICE PRESIDENT. The Chair understands that a
THE CALENDAR
report on this nomination was made this morning. Under
The legislative clerk proceeded to read Executive C, a
the rules of the Senate it would go over until tomorrow.
treaty between the United States and the Dominion of Can-
The Senator from Illinois is asking unanimous consent for
ada for the completion of the Great Lakes-St. Lawrence
the present consideration of the nomination. The Chair
deep waterway, signed on July 18, 1932.
is informed by the clerk that on a former occasion the
Mr. ROBINSON of Arkansas. Mr. President, in connec-
Senator from Washington [Mr. DILL] objected.
tion with that treaty, it is expected that the President will
Mr. ROBINSON of Arkansas. That objection, Mr. Presi-
send to the Senate on Wednesday a special message, and I
dent, was made while the Senate was in legislative session.
ask that the treaty go over pending the message.
The VICE PRESIDENT. That is correct.
The VICE PRESIDENT. Is there objection? The Chair
Mr. ROBINSON of Arkansas. My understanding of the
hears none, and the treaty will go over.
objection made by the Senator from Washington was that
Mr. ROBINSON of Arkansas. Mr. President, in all proba-
he did not wish to have the Senate dispose of executive
bility the message from the President of the United States,
nominations while in legislative session, since Senators
to which I referred, will be sent to the Senate on Wednesday.
would be denied the opportunity of objecting.
There may also be expected a message relating to foreign
The VICE PRESIDENT. Is there objection to the re-
credit administration.
quest of the Senator from Illinois?
HENRY MORGENTHAU, JR.
Mr. McNARY. Mr. President, it has always been my view
that nominations should take the regular course, unless
The legislative clerk read the nomination of Henry
Morgenthau, Jr., to be Secretary of the Treasury.
there is a very urgent reason for making an exception. I
Mr. ROBINSON of Indiana. Mr. President, I do not pro-
see no reason, at this time, why unanimous consent of the
Senate should be asked for the immediate consideration
pose to launch any special objection to this nomination,
of this nomination, any more than any other. For that
except to say that if a yea-and-nay vote were taken on the
reason I object.
nomination I should vote against confirmation.
Mr. LEWIS. If the Senator from Oregon objects, he
To pay my respects to Mr. Morgenthau I do not think he
makes the objection with the knowledge that I will not
is fit for the place. I think anybody who would select
forget it.
Earle W. Bailie, utterly notorious in financial circles, to con-
The VICE PRESIDENT. The Senator from Oregon ob-
duct the tremendous fiscal operations of the Government at
jects, and the nomination will go over.
this time, is unfitted completely for the high office of Secre-
tary of the Treasury. I think there can be no question that
ADJOURNMENT TO WEDNESDAY
the occupant of that office should have the fullest confidence
Mr. ROBINSON of Arkansas. I move that the Senate
of the people of this country.
adjourn until 12 o'clock noon on Wednesday next.
1934
CONGRESSIONAL RECORD-SENATE
213
The motion was agreed to; and (at 3 o'clock and 59
Rene A. Viosca, of Louisiana, to be United States attorney,
minutes p.m.), the Senate adjourned until Wednesday,
eastern district of Louisiana, to succeed William H. Norman,
January 10, 1934, at 12 o'clock meridian.
appointed by court. (Mr. Viosca is now serving under a
recess appointment.)
NOMINATIONS
John D. Clifford, Jr., of Maine, to be United States attor-
Executive nominations received by the Senate January 8,
ney, district of Maine, to succeed Frederick R. Dyer, re-
1934
signed. (Mr. Clifford is now serving under a recess appoint-
ment.)
FOREIGN SERVICE OFFICERS, CONSULS, AND SECRETARIES IN THE
DIPLOMATIC SERVICE
Francis J. W. Ford, of Massachusetts, to be United States
attorney, district of Massachusetts, to succeed Frederick H.
A. Dana Hodgdon, of Maryland, to be a Foreign Service
Tarr, resigned. (Mr. Ford is now serving under a recess
officer of class 6, a consul, and a secretary in the Diplomatic
appointment.)
Service of the United States of America. (Reinstatement.)
Joseph M. Donnelly, of Michigan, to be United States at-
Clayson W. Aldridge, of New York, to be a Foreign Service
torney, western district of Michigan, to succeed Fred C.
officer of class 7, a consul, and a secretary in the Diplomatic
Wetmore, resigned. (Mr. Donnelly is now serving under a
Service of the United States of America. (Reinstatement.)
recess appointment.)
Walton C. Ferris, of Wisconsin, to be a Foreign Service
George F. Sullivan, of Minnesota, to be United States
officer of class 8, a consul, and a secretary in the Diplomatic
Service of the United States of America. (Reinstatement.)
attorney, district of Minnesota, to succeed Lewis L. Drill,
removed. (Mr. Sullivan is now serving under a recess
CONSUL
appointment.)
John H. MacVeagh, of New York, now a Foreign Service
Robert M. Bourdeaux, of Mississippi, to be United States
officer of class 5 and a secretary in the Diplomatic Service,
attorney, southern district of Mississippi, to succeed Ben F.
to be also a consul of the United States of America, to which
Cameron, term expired. (Mr. Bourdeaux is now serving
office he was appointed during the last ecess of the Senate.
under a recess appointment.)
FIRST ASSISTANT POSTMASTER GENERAL
James H. Baldwin, of Montana, to be United States attor-
William W. Howes, of South Dakota, to be First Assistant
ney, district of Montana, to succeed Wellington D. Rankin,
resigned. (A recess commission was issued to Mr. Baldwin
Postmaster General, Post Office Department, vice JOSEPH C.
December 29, 1933.)
O'MAHONEY.
Martin Conboy, of New York, to be United States attorney,
SECOND ASSISTANT POSTMASTER GENERAL
southern district of New York, to succeed Thomas E. Dewey,
Harllee Branch, of Georgia, to be Second Assistant Post-
appointed by court. (Mr. Conboy is now serving under a
master General, Post Office Department, vice William W.
recess appointment.)
Howes.
Marcus Erwin, of North Carolina, to be United States
ASSISTANT ATTORNEYS GENERAL
attorney, western district of North Carolina, to succeed
Harry W. Blair, of Missouri, to be Assistant Attorney Gen-
Frank C. Patton, resigned. (Mr. Erwin is now serving under
eral, to succeed Roy St. Lewis, resigned. (A recess commis-
a recess appointment.)
sion was issued to Mr. Blair December 28, 1933.)
Powless W. Lanier, of North Dakota, to be United States
Joseph B. Keenan, of Ohio, to be an Assistant Attorney
attorney, district of North Dakota, to succeed Peter B. Gar-
General, to succeed Pat Malloy, resigned. (Mr. Keenan is
berg, term expired. (Mr. Lanier is now serving under a
recess appointment.)
now serving under a recess appointment.)
ASSISTANT SOLICITOR GENERAL
Emerich B. Freed, of Ohio, to be United States attorney,
northern district of Ohio, to succeed Wilfred J. Mahon, term
Angus D. MacLean, of North Carolina, to be Assistant
expired. (Mr. Freed is now serving under a recess appoint-
Solicitor General. (New position created by act approved
ment.)
June 16, 1933. Mr. MacLean is now serving under a recess
Francis Canny, of Ohio, to be United States attorney,
appointment.)
southern district of Ohio, to succeed Haveth E. Mau, term
UNITED STATES ATTORNEYS
expired. (Mr. Canny is now serving under a recess appoint-
Hugh O'Neill, of Alaska, to be United States attorney, divi-
ment.)
sion no 2, district of Alaska, to succeed Leroy M. Sullivan,
Charles D. McAvoy, of Pennsylvania, to be United States
resigned. (Mr. O'Neill is now serving under à recess ap-
attorney, eastern district of Pennsylvania, to succeed Edward
pointment.)
W. Wells, resigned. (Mr. McAvoy is now serving under a
Joseph W. Kehoe, of Alaska, to be United States attorney,
recess appointment.)
division no. 3, district of Alaska, to succeed Warren N.
Horatio S. Dumbauld, of Pennsylvania, to be United States
Cuddy, term expired. (Mr. Kehoe is now serving under a
attorney, western district of Pennsylvania, to succeed Louis
recess appointment.)
Edward Graham, resigned. (Mr. Dumbauld is now serving
Frank S. Bergin, of Connecticut, to be United States
under a recess appointment.)
attorney, district of Connecticut, to succeed John Buckley,
A. Cecil Snyder, of Maryland, to be United States attorney,
term expired. (Mr. Bergin is now serving under a recess
district of Puerto Rico, to succeed Harry F. Besosa, resigned.
appointment.)
(Mr. Snyder is now serving under a recess appointment.)
Leslie C. Garnett, of Maryland, to be United States attor-
James B. Frazier, Jr., of Tennessee, to be United States
ney, District of Columbia, to succeed Leo A. Rover, resigned.
attorney, eastern district of Tennessee, to succeed William
(A recess commission was issued to Mr. Garnett Dec. 28,
J. Carter, resigned. (Mr. Frazier is now serving under a
1933.)
recess appointment.)
John W. Holland, of Florida, to be United States attorney,
Horace Frierson, Jr., of Tennessee, to be United States
southern district of Florida, to succeed W. P. Hughes, re-
attorney, middle district of Tennessee, to succeed A. V.
signed. (Mr. Holland is now serving under a recess appoint-
McLane, resigned. (A recess commission was issued to Mr.
ment.)
Frierson Dec. 30, 1933.)
J. Saxton Daniel, of Georgia, to be United States attorney,
William R. Smith, Jr., of Texas, to be United States at-
southern district of Georgia, to succeed Charles L. Redding,
torney, western district of Texas, to succeed John D. Hart-
appointed by court. (Mr, Daniel is now serving under a
man, resigned. (Mr. Smith is now serving under a recess
recess appointment.)
appointment.)
Mac Swinford, of Kentucky, to be United States attorney,
Daniel B. Shields, of Utah, to be United States attorney,
eastern district of Kentucky, to succeed Sawyer A. Smith,
district of Utah, to succeed Charles R. Hollingsworth, term
resigned. (Mr. Swinford is now serving under a recess
expired. (Mr. Shields is now serving under a recess ap-
appointment.)
pointment.)
214
CONGRESSIONAL RECORD-SENATE
JANUARY 8
Sterling Hutcheson, of Virginia, to be United States at-
Percy Brewington, of Pennsylvania, to be United States
torney, eastern district of Virginia, to succeed Paul W.
marshal, middle district of Pennsylvania, to succeed Robert
Kear, resigned. (Mr. Hutcheson is now serving under a
M. Vail, resigned. (Mr. Brewington is now serving under a
recess appointment.)
recess appointment.)
Joseph H. Chitwood, of Virginia, to be United States at-
J. Hilary Keenan, of Pennsylvania, to be United States
torney, western district of Virginia, to succeed Joseph C.
marshal, western district of Pennsylvania, to succeed Walter
Shaffer, resigned. (Mr. Chitwood is now serving under a
W. Meyer, appointed by court. (Mr. Keenan is now serving
recess appointment.)
under a recess appointment.)
George I. Neal, of West Virginia, to be United States at-
Donald A. Draughon, of Puerto Rico, to be United States
torney, southern district of West Virginia, to succeed David
marshal, district of Puerto Rico, to succeed Harry S. Hub-
D. Ashworth, removed. (Mr. Neal is now serving under a
bard, resigned. (Mr. Draughon is now serving under a recess
recess appointment.)
appointment.)
UNITED STATES MARSHALS
William F. Goucher, of Rhode Island, to be United States
William T. Mahoney, of Alaska, to be United States mar-
marshal, district of Rhode Island, to succeed Howard C.
shal, division no. 1, district of Alaska, to succeed Albert
Arnold, term expired. (Mr. Goucher is now serving under a
White, resigned. (A recess appointment was issued to Mr.
recess appointment.)
Mahoney December 9, 1933.)
James R. Worley, of Tennessee, to be United States mar-
Thomas Gaffney, of Alaska, to be United States marshal,
shal, eastern district of Tennessee, to succeed Insloe C.
division no. 2, district of Alaska, to succeed Charles D. Jones,
King, resigned. (Mr. Worley is now serving under a recess
resigned. (Mr. Gaffney is now serving under a recess ap-
appointment.)
pointment.)
James R. Jetton, of Tennessee, to be United States mar-
Chester J. Todd, of Alaska, to be United States marshal,
shal, middle district of Tennessee, to succeed R. Q. Lillard,
division no. 3, district of Alaska, to succeed Harvey P. Sulli-
resigned. (A recess appointment was issued to Mr. Jetton
van, term expired. (Mr. Todd is now serving under a recess
Dec. 12, 1933.)
appointment.)
James R. Wright, of Texas, to be United States marshal,
George Vice, of California, to be United States marshal,
northern district of Texas, to succeed Samuel L. Gross, re-
northern district of California, to succeed Frederick L. Esola,
signed. (Mr. Wright is now serving under a recess appoint-
resigned. (Mr. Vice is now serving under a recess appoint-
ment.)
ment.)
Gilbert Mecham, of Utah, to be United States marshal,
Robert E. Clark, of California, to be United States mar-
district of Utah, to succeed W. Vosco Call, term expired.
shal, southern district of California, to succeed Albert C.
(Mr. Mecham is now serving under a recess appointment.)
Sittel, deceased. (Mr. Clark is now serving under a recess
Robert L. Ailworth, of Virginia, to be United States mar-
appointment.)
shal, eastern district of Virginia, to succeed George S. Pit-
Adam M. Lewis, of Florida, to be United States marshal,
man, resigned. (Mr. Ailworth is now serving under a recess
northern district of Florida, to succeed William W. Harrison,
appointment.)
removed. (Mr. Lewis is now serving under a recess appoint-
John White Stuart, of Virginia, to be United States mar-
ment.)
shal, western district of Virginia, to succeed William L.
George A. Meffan, of Idaho, to be United States marshal,
Brand, resigned. (Mr. Stuart is now serving under a recess
district of Idaho, to succeed Angus Sutherland, resigned.
appointment.)
(Mr. Moffan is now serving under a recess appointment.)
Albert A. Sanders, of Wyoming, to be United States mar-
August Klecka, of Maryland, to be United States marshal,
shal, district of Wyoming, to succeed R. John Allen, ap-
district of Maryland, to succeed George W. Collier, term
pointed by court. (Mr. Sanders is now serving under a
expired. (Mr. Klecka is now serving under a recess appoint-
recess appointment.)
ment.)
UNITED STATES DISTRICT JUDGES
John J. Murphy, of Massachusetts, to be United States
William H. Holly, of Illinois, to be United States district
marshal, district of Massachusetts, to succeed William J.
judge, northern district of Illinois, to succeed George A.
Keville, term expired. (Mr. Murphy is now serving under a
Carpenter, resigned. (Mr. Holly is now serving under a
recess appointment.)
recess appointment.)
Kinloch Owen, of Mississippi, to be United States marshal,
Philip L. Sullivan, of Illinois, to be United States district
northern district of Mississippi, to succeed Charles R. Ligon,
judge, northern district of Illinois, to succeed George E. Q.
term expired. (Mr. Owen is now serving under a recess
Johnson, not confirmed. (Mr. Sullivan is now serving under
appointment.)
a recess appointment.)
Robert Lee Simpson, of Mississippi, to be United States
J. Earl Major, of Illinois, to be United States district
marshal, southern district of Mississippi, to succeed James
judge, southern district of Illinois, to succeed Louis Fitz-
C. Tyler, term expired. (Mr. Simpson is now serving under
Henry, appointed circuit judge, seventh circuit. (Mr. Major
a recess appointment.)
is now serving under a recess appointment.)
William B. Fahy, of Missouri, to be United States marshal,
Robert A. Cooper, of South Carolina, to be United States
eastern district of Missouri, to succeed Theodore W. Huk-
district judge, District of Puerto Rico, to succeed Ira K.
riede, resigned. (Mr. Fahy is now serving under a recess
Wells, whose term will expire January 20, 1934.
appointment.)
Zeb Ray, of Nevada, to be United States marshal, district
DISTRICT JUDGE, DIVISION NO. 1, DISTRICT OF ALASKA
of Nevada, to succeed J. H. Fulmer, deceased. (Mr. Ray is
George F. Alexander, of Oregon, to be district judge, Divi-
now serving under a recess appointment.)
sion no. 1, district of Alaska, to succeed J. W. Harding, term
Ford S. Worthy, of North Carolina, to be United States
expired. (Mr. Alexander is now serving under a recess
marshal, eastern district of North Carolina, to succeed Edgar
appointment.)
C. Geddie, resigned. (Mr. Worthy is now serving under a
UNITED STATES CIRCUIT JUDGE
recess appointment.)
Frank H. Norcross, of Nevada, to be United States circuit
Charles R. Price, of North Carolina, to be United States
judge, ninth circuit, to succeed William B. Gilbert, deceased.
marshal, western district of North Carolina, to succeed
(Mr. Norcross is now serving under a recess appointment.)
Brownlow Jackson, resigned. (Mr. Price is now serving
under a recess appointment.)
JUDGE OF THE JUVENILE COURT OF THE DISTRICT OF COLUMBIA
Joseph B. Reing, of Pennsylvania, to be United States
Miss Fay L. Bentley, of the District of Columbia, to be
marshal, eastern district of Pennsylvania, to succeed Walter
judge of the Juvenile Court of the District of Columbia, to
C. Fetters, resigned. (Mr. Reing is now serving under a
succeed Judge Kathryn Sellers, term expired. (A recess
recess appointment.)
commission was issued to Miss Bentley Oct. 11, 1933.)
1934
CONGRESSIONAL RECORD-SENATE
215
VICE GOVERNOR OF THE PHILIPPINE ISLANDS
First Lt. Elsmere Joe Walters, Quartermaster Corps, from
Joseph Ralston Hayden, of Michigan, to be Vice Governor
January 1, 1934.
of the Philippine Islands, vice John H. Holliday, resigned.
First Lt. Harry Edgar Hagan, Quartermaster Corps, from
(Dr. Hayden was appointed ad interim on Nov. 2, 1933.)
January 1, 1934.
ASSOCIATE JUSTICES OF THE SUPREME COURT OF THE PHILIPPINE
First Lt. Frank Osborn Dewey, Cavalry, from January 1,
ISLANDS
1934.
Anacleto Diaz, of the Philippine Islands, vice Ignacio
First Lt. Edward Milan Taylor, Field Artillery, from Jan-
uary 1, 1934.
Villemor, deceased.
Leonard S. Goddard, of Tennessee, vice James A. Ostrand,
First Lt. Jesmond Dene Balmer, Field Artillery, from
January 1, 1934.
resigned.
First Lt. Dayton Dudley Watson, Air Corps, from Jan-
ATTORNEY GENERAL OF PUERTO RICO
uary 1, 1934.
Benjamin J. Horton, of Puerto Rico, to be Attorney Gen-
First Lt. Herschel David Baker, Field Artillery, from
eral of Puerto Rico, to which office he was appointed ad in-
January 1, 1934.
terim on October 21, 1933, vice Charles E. Winter, resigned.
First Lt. Herbert Edward Baker, Field Artillery, from
INTERSTATE COMMERCE COMMISSIONER
January 1, 1934.
Walter M. W. Splawn, of Texas, to be an Interstate Com-
First Lt. Donald David Fitzgerald, Air Corps, from Jan-
merce Commissioner for a term expiring December 31, 1940,
uary 1, 1934.
vice Ezra Brainerd, Jr., term expired.
First Lt. Thomas Standifer Gunby, Field Artillery, from
January 1, 1934.
COLLECTOR OF INTERNAL REVENUE
To be first lieutenants
Thomas J. Sheehan, of St. Louis, Mo., to be collector of
Second Lt. Rudolph Ethelbert Smyser, Jr., Corps of Engi-
internal revenue for the first district of Missouri, in place
neers, from January 1, 1934.
of Louis J. Becker, resigned.
Second Lt. Charles Daniel Curran, Corps of Engineers,
CLERK, UNITED STATES COURT FOR CHINA
from January 1, 1934.
William Thomas Collins, of Missouri, to be clerk, United
Second Lt. Francis Howard Falkner, Corps of Engineers,
States Court for China. (Mr. Collins is now serving under
from January 1, 1934.
a recess appointment.)
Second Lt. Alan Johnstone McCutchen, Corps of Engineers,
APPOINTMENT, BY TRANSFER, IN THE REGULAR ARMY
from January 1, 1934.
Second Lt. David William Heiman, Corps of Engineers,
TO QUARTERMASTER CORPS
from January 1, 1934.
Capt. Krauth Whitson Thom, Infantry (detailed in Quar-
Second Lt. Robert John Fleming, Jr., Corps of Engineers,
termaster Corps), with rank from December 6, 1928.
from January 1, 1934.
PROMOTIONS IN THE REGULAR ARMY
Second Lt. David Peter Laubach, Air Corps, from Jan-
To be colonels
uary 1, 1934.
Second Lt. Benjamin Smith Shute, Corps of Engineers,
Lt. Col. Robert Louis Moseley, Infantry, from January 1,
from January 1, 1934.
1934.
Second Lt. William Everett Potter, Corps of Engineers,
Lt. Col. Earl Biscoe, Coast Artillery Corps, from January 1,
from January 1, 1934.
1934.
Second Lt. Edmund Koehler Daley, Corps of Engineers,
Lt. Col. William Scott Wood, Field Artillery, from January
from January 1, 1934.
1, 1934.
Second Lt. William Joseph Matteson, Corps of Engineers,
Lt. Col. Charles Almon Hunt, Infantry, from January 1,
from January 1, 1934.
1934.
Second Lt. Webster Anderson, Infantry, from January 1,
To be lieutenant colonels
1934.
Maj. Albert Kualii Brickwood Lyman, Corps of Engineers,
Second Lt. James Elbert Briggs, Air Corps, from Jan-
from January 1, 1934.
uary 1, 1934.
Maj. Clarence Edward Partridge, Ordnance Department,
Second Lt. Harry Cremartie Kirby, Infantry, from Jan-
from January 1, 1934.
uary 1, 1934.
Maj. Leo James Ahern, Field Artillery, from January 1,
Second Lt. John Stewart Mills, Air Corps, from January 1,
1934.
1934.
Maj. Donald Meredith Beere, Field Artillery, from Janu-
MEDICAL CORPS
ary 1, 1934.
To be captain
To be majors
Capt. William Samuel Rumbough, Signal Corps, from
First Lt. Paul Herbert Martin, Medical Corps, from Jan-
January 1, 1934.
uary 1, 1934.
Capt. Frank Henry Barnhart, Cavalry, from January 1,
APPOINTMENTS AND PROMOTIONS IN THE NAVY
1934.
The following-named captains to be rear admirals in the
Capt. Henry Theophil John Weishaar, Infantry, from
Navy from the 1st day of July 1933:
January 1, 1934.
Samuel W. Bryant
Capt. Herman Henry Meyer, Infantry, from January 1,
Sinclair Gannon
1934.
Capt. John D. Wainwright to be a rear admiral in the
Capt. Henry Jeffrey Matchett, Infantry, from January 1,
Navy from the 1st day of September 1933.
1934.
The following-named captains to be rear admirals in the
Capt. Vincent Staub Burton, Infantry, from January 1,
Navy from the 1st day of October 1933:
1934.
Charles S. Freeman
To be captains
Charles Russell Train
First Lt. Edward James Roxbury, Field Artillery, from
Capt. Ernest J. King to be a rear admiral in the Navy
January 1, 1934.
from the 1st day of November 1933.
First Lt. Donald Dakin Lanson, Coast Artillery Corps, from
The following-named captains to be rear admirals in the
January 1, 1934.
Navy from the 13th day of November 1933:
First Lt. Augustus Dawson Sanders, Infantry, from Jan-
Paul B. Dungan, an additional number in grade
uary 1, 1934.
Hayne Ellis
First Lt. Harvey Thomas Morgan, Infantry, from Jan-
Commander Richard S. Edwards to be a captain in the
usry 1, 1934.
Navy from the 21st day of May 1933.
216
CONGRESSIONAL RECORD-SENATE
JANUARY 8
The following-named commanders to be captains in the
George C. Dyer, June 30, 1933.
Navy from the 30th day of June 1933:
David S. Crawford, June 30, 1933.
Clyde R. Robinson
Philip H. Hammond, an
Charles J. Rend, June 30, 1933.
Irving H. Mayfield
additional number in grade
Robert L. Boller, June 30, 1933.
John H. Hoover
Claud A. Jones, an addi-
Henry C. Fengar, June 30, 1933.
Allan S. Farquhar
tional number in grade
Paul F. Lee, June 30, 1933.
The following-named commanders to be captains in the
Marshall R. Greer, June 30, 1933.
Navy from the 1st day of July 1933:
Homer F. McGee, June 30, 1933.
Albert C. Read, an additional number in grade
Philip P. Welch, June 30, 1933.
Willis W. Bradley, Jr.
Joseph R. Lannom, June 30, 1933.
Lucien F. Kimball
Harry A. Rochester, June 30, 1933.
Commander Harold M. Bemis to be a captain in the Navy
James J. Hughes, June 30, 1933.
from the 1st day of August 1933.
Carl K. Fink, June 30, 1933.
Commander Ernest D. McWhorter to be a captain in the
Stuart S. Murray, June 30, 1933.
Navy from the 1st day of September 1933.
John J. Patterson, 3d, June 30, 1933.
The following-named commanders to be captains in the
Walter C. Ansel, June 30, 1933.
Navy from the 1st day of October 1933:
Adrian O. Rule, Jr., June 30, 1933.
Carl T. Osburn
Robert S. Smith, Jr., June 30, 1933.
William S. Farber
Elmer R. Runquist, June 30, 1933.
The following-named commanders to be captains in the
Walton R. Read, June 30, 1933.
Navy from the 1st day of November 1933:
Daniel M. McGurl, June 30, 1933.
George M. Ravenscroft
Robert M. Smith, Jr., June 30, 1933.
Harry J. Abbett
Robert B. Crichton, June 30, 1933.
The following-named lieutenant commanders to be com-
Paul H. Talbot, June 30, 1933.
manders in the Navy from the 5th day of April 1933:
James L. Holloway, Jr., June 30, 1933.
Stephan B. Robinson
Gustave H. Bowman, June 30, 1933.
William G. Greenman
Ralph E. Jennings, June 30, 1933.
Lt. Comdr. James A. Crutchfield to be a commander in the
Frank N. Sayre, June 30, 1933.
Navy from the 21st day of May 1933.
John G. Crawford, June 30, 1933.
The following-named lieutenant commanders to be com-
James G. Atkins, June 30, 1933.
manders in the Navy from the 30th day of June 1933:
Francis H. Gilmer, June 30, 1933.
Charles P. Mason
De Witt C. Ramsey
Earle H. Kincaid, June 30, 1933.
John J. Brown
Roscoe E. Schuirman
Carleton McGauly, June 30, 1933.
Campbell D. Edgar
Ingram C. Sowell
George W. Brashears, Jr., July 1, 1933.
Walter S. Haas
Francis E. M. Whiting
Giles E. Short, July 1, 1933.
The following-named lieutenant commanders to be com-
Thomas B: Fitzpatrick, July 1, 1933.
manders in the Navy from the 1st day of July 1933:
Willis W. Pace, July 1, 1933.
Charles A. Lockwood, Jr.
Aaron S. Merrill
Harold M. Martin, July 1, 1933.
Paul S. Theiss
Charles S. Alden
John L. Reynolds, July 1, 1933.
The following-named lieutenant commanders to be com-
John R. Redman, August 1, 1933.
manders in the Navy from the 1st day of August 1933:
Ross A. Dierdorff, August 1, 1933.
Otto M. Forster
George F. Montz, August 1, 1933.
Leonard N. Linsley
George H. Mills, September 1, 1933.
The following-named lieutenant commanders to be com-
John B. McDonald, Jr., September 1, 1933.
manders in the Navy from the 1st day of September 1933:
Charles Allen, September 1, 1933.
James C. Jones, Jr.
Palmer H. Dunbar, Jr.
Spencer H. Warnef, September 1, 1933.
William D. Taylor
Charlie P. McFeaters
Grayson B. Carter, September 1, 1933.
Daniel E. Barbey
Charles N. Ingraham
Riffel G. Rhoton, September 1, 1933.
Elmer L. Woodside
Thomas M. Shock
Dorrance K. Day, September 1, 1933.
Glenn B. Davis
Adolph V. S. Pickhardt
Samuel B. Ogden, October 1, 1933.
Lt. Comdr. William I. Causey, Jr., to be a commander in
The following-named lieutenants to be lieutenants in the
the navy from the 1st day of October 1933.
Navy from the 30th day of June 1932, to correct the date
Lt. Comdr. Norman C. Gillette to be a commander in the
from which they take rank as previously nominated and
Navy from the 1st day of November 1933.
confirmed:
Lt. Comdr. George D. Hull to be a commander in the Navy
William G. Michelet
from the 13th day of November 1933.
Francis J. Grandfield
The following-named lieutenants to be lieutenant com-
The following-named lieutenants (junior grade) to be
manders in the Navy to rank from the dates stated opposite
lieutenants in the Navy, to rank from the dates stated
their names:
opposite their names:
Francis W. Reichelderfer, September 1, 1931.
Joseph H. Foley, February 1, 1932.
Robert P. Briscoe, October 23, 1932.
William V. Davis, Jr., November 1, 1932.
Morton T. Seligman, January 1, 1933.
Roger E. Perry, February 1, 1933.
Charles E. Olsen, January 12, 1933.
Edwin T. Layton, April 1, 1933.
Logan C. Ramsey, January 14, 1933.
Thomas A. Turner, Jr., April 5, 1933.
William H. Ferguson, February 1, 1933.
Robert C. Sutliff, April 5, 1933.
Gerald L. Schetky, April 5, 1933.
Adolph H. Oswald, April 5, 1933.
Charles E. Coney, April 5, 1933.
Frederick R. Furth, April 5, 1933.
William H. Mays, April 5, 1933.
Robert L. Swart, April 5, 1933.
Henry D. Baggett, April 5, 1933.
Eugene C. Burchett, April 5, 1933.
Bayard H. Colyear, May 1, 1933.
George W. Stott, April 5, 1933.
Ralph W. Hungerford, May 21, 1933.
Thomas A. Huckins, April 5, 1933.
Charles B. Hunt, June 1, 1933.
George A. Sinclair, May 1, 1933.
George M. O'Rear, June 1, 1933.
Dale Harris, May 1, 1933.
James D. Lowry, Jr., June 1, 1933.
Kenneth Earl, May 21, 1933.
John B. Griggs, Jr., June 30, 1933.
James B. Ricketts, June 1, 1933.
Eliot H. Bryant, June 30, 1933.
Hubert M. Hayter, June 1, 1933.
1934
CONGRESSIONAL RECORD-SENATE
217
Allen P. Calvert, June 8, 1933.
The following-named ensigns to be lieutenants (junior
LeRoi B. Blaylock, June 9, 1933.
grade) in the Navy from the 5th day of June 1933:
Samuel E. Latimer, June 9, 1933.
Wellington T. Hines
John H. Armstrong, Jr.
Harold B. Miller, June 17, 1933.
James H. Hean
Louis D. McGregor, Jr.
Virginius R. Roane, June 30, 1933.
Griswold T. Atkins
George G. Palmer
William B. Bailey, June 30, 1933.
Peter H. Horn
Charles E. McCombs
Henry C. Daniel, June 30, 1933.
Oliver E. White
John G. Burgess
Edmund W. Whitehead, June 30, 1933.
Bruce E. S. Trippensee
Royal L. Rutter
Murray J. Tichenor, June 30, 1933.
William B. Moore
Harold M. Heming
Joseph P. Thew, June 30, 1933.
William E. Gentner, Jr.
Shryock M. Arwine
John P. Cromwell, June 30, 1933.
Manley H. Simons, Jr.
James S. Clarkson
Herrmann G. Page, June 30, 1933.
Leonidas D. Coates, Jr.
Russell R. Ross
Forrest Close, June 30, 1933.
William C. Ennis
Lafayette J. Jones
Frank W. MacDonald, June 30, 1933.
Herman N. Larson
George L. Heap
Herman Sall, June 30, 1933.
Robert C. Taven
George M. Chambers
Herbert K. Gates, June 30, 1933.
Joseph A. E. Hindman
George F. Kosco
Solomon F. Oden, June 30, 1933.
John R. Craig
Durand Kiefer
Steadman Teller, June 30, 1933.
Marshall E. Dornin
John J. Shaffer, 3d
Tillman T. Dantzler, June 30, 1933.
Volckert P. Douw
Harry P. Badger
Robert O. Minter, June 30, 1933.
Frank I. Winant, Jr.
Herschel A. House
Crutchfield Adair, June 30, 1933.
Raymond W. Johnson
George T. McCready, Jr.
Richard M. Nixon
John Hulme
Bertrand D. Quinn, June 30, 1933.
David L. Whelchel
Stephen R. Bedford, June 30, 1933.
William N. Wylie
James A. Adkins
Carlton R. Adams
George W. Evans, Jr., June 30, 1933.
John D. Hayes, June 30, 1933.
Ephraim P. Holmes
Lee DeV. Boyle
Walter M. Foster
Emmet O'Beirne
Max Schreiner, June 30, 1933.
William C. Butler, Jr.
Scarritt Adams
Harold P. Smith, June 30, 1933.
Robert L. Moore, Jr.
Vernon L. Lowrance
Walter D. Leach, Jr., June 30, 1933.
George B. Chafee
Charles R. Herms
Austen V. Magly, June 30, 1933.
Robert G. Lockhart, June 30, 1933.
John T. Hayward
George E. Garcia
Frank L. Johnson
William O. Snead, Jr.
Thomas C. Ragan, June 30, 1933.
William H. Kirvan
Edward N. Little
Preston V. Mercer, June 30, 1933.
Robert Goldthwaite, June 30, 1933.
Lot Ensey
William C. Thomas
William T. Nelson
Richard C. D. Hunt, Jr.
Jose M. Cabanillas, June 30, 1933.
Hugh T. MacKay
Thomas J. Thornhill, Jr.
Carl E. Cullen, June 30, 1933.
Thomas B. Haley
Lawrence E. Ruff
Audley L. Warburton, June 30, 1933.
Charles B. Brook
Ira E. McMillian
Colby G. Rucker, June 30, 1933.
Samuel M. Randall
William Y. Allen, Jr.
Jack B. Williams, June 30, 1933.
Alexander S. Heyward, Jr.
Horace S. Hubbard
Wilkie H. Brereton, July 1, 1933.
Donald F. Krick
John K. Bisson
Warren W. Harvey, July 1, 1933.
Frank T. Sloat
James D. Whitfield, Jr.
Harold R. Demarest, July 1, 1933.
John W. Ailes, 3d
Charles H. Andrews
Francis M. Hook, July 1, 1933.
Francis S. Stich
James L. Thibault
William W. Weeden, Jr., July 1, 1933.
George C. Seay
Carlos M. Charneco
Samuel M. Bailey, July 1, 1933.
Eddie R. Sanders
Charles T. Mauro, Jr.
Elton C. Parker, July 1, 1933.
Dudley W. Morton
Samuel D. Dealey
Ethelbert Watts, July 1, 1933.
Ruel S. Dally
George E. Marix
Lawrence J. McPeake, July 19, 1933.
Lynne C. Quiggle
James W. Coe
William H. Duvall, August 1, 1933.
William S. Estabrook, Jr.
Walter T. Jenkins
Charles M. E. Hoffman, August 1, 1933.
Robert J. Stroh
Elvin Hahn
Howell Armor, August 1, 1933.
John Corbus
Francis E. Wilson
Douglas T. Day, Jr., August 1, 1933.
Bernhart A. Fuetsch
John B. Bowen, Jr.
Minor C. Heine, August 1, 1933.
Jack S. Dorsey
Ellis K. Wakefield
Donald J. Ramsey, September 1, 1933.
Otis J. Earle
Milton D. Fairchild
Henry E. Richter, September 1, 1933.
Bryan F. Swan
William G. Tisdale, Jr.
Frank E. Deam, September 1, 1933.
Victor S. Gaulin
Robert M. Patton
Richard J. Bourke, Jr., September 1, 1933.
Howard G. Corey
Thaddeus J. Van Metre
Edward P. Creehan, September 1, 1933.
Eugene T. Sands
Allen B. Roby
Leon W. Johnson, September 1, 1933.
Donald J. Sass
Joe McA. Whitaker
Howard V. Hopkins, September 1, 1933.
Gilbert C. Carpenter
Alston M. Boyd, Jr.
Harry Burris, September 1, 1933.
Frank P. Luongo, Jr.
Royce L. Gross
Joseph F. Dahlgren, September 1, 1933.
Kenneth M. Gentry
Raymond L. Mayo
Joseph S. Lillard, September 1, 1933.
Thomas L. Wogan
William S. Post, Jr.
Arthur D. Barnes, September 1, 1933.
Charles H. A. Rohr
Frank L. Robinson
John A. Holbrook, September 1, 1933.
Thomas W. Marshall, Jr.
William T. Doyle, Jr.
Harrison B. Southworth, October 1, 1933.
Albert S. Miller
Robert F. Coates
George C. Montgomery, October 1, 1933.
Frank B. Miller
Harry J. Verhoyo
Joseph F. Johnson, October 1, 1933.
Warren H. McClain
Philip T. Smith, Jr.
Thomas E. Fraser, October 1, 1933.
John B. Gragg.
Veldon O. Long
Thomas S. Cameron, October 1, 1933.
Robert H. Taylor
Lyle L. Koepke
Wallis F. Petersen, November 1, 1933.
Jack Agnew
Henry G. Sanchez
The following-named ensigns to be lieutenants (junior
Edward C. Renfro
Albert Konigsberg
grade) in the Navy from the 6th day of June 1932:
John A. Moreno
William A. Moffett, Jr.
John F. Tatom
John E. Sisson
Samuel C. Anderson.
Robert R. Craighill
William H. Farmer
Robert DeV. McGinnis.
No.
4-7
218
CONGRESSIONAL RECORD-SENATE
JANUARY 8
Joshua J. Nix
Edwin O. Wagner
Civil Engineer Henry F. Bruns to be a civil engineer in
John B. Dimmick
Henry S. Wygant, Jr.
the Navy, with the rank of commander, from the 4th day of
Arthur E. Owen
William T. Woodard
June 1931.
John R. Haile
Arthur F. Spring
The following-named assistant civil engineers to be civil
Richard D. McGlathery
Byron B. Newell
engineers in the Navy, with the rank of lieutenant, from the
Francis M. Carter
Harold E. Duryea
3d day of June 1933:
Harry Smith
Nicholas A. Lidstone
Henry P. Needham
James A. Woodruff, Jr.
George R. Over
Beauford W. Fink
John G. Howell
Charles R. Gilliam
The following-named ensigns to be assistant civil engi-
Robert D. Sutton
Wreford G. Chapple
neers in the Navy, with the rank of ensign, from the 5th
Robert F. Jennings
Laurance O. Mathews, Jr.
day of June 1930:
James H. Newsome
Albert P. Douglass
William F. Wesanen
Norwood A. Campbell
Joseph C. Clifton
Alexander S. C. Wadsworth
Thomas S. Webb
John E. Edwards
Boatswain Cecil Cuthbert to be a chief boatswain in the
Robert W. Germany, Jr.
Samuel A. Randolph
Navy, to rank with but after ensign, from the 4th day of
John F. Flynn
William C. Kaiser
May 1933.
John M. Bristol
Paul F. Heerbrandt
Boatswain George W. Graves to be a chief boatswain in
William W. Wilbourne
Charles C. Howerton
the Navy, to rank with but after ensign, from the 3d day of
Doyle M. Coffee
James O. Vosseller
July 1933.
Ian C. Eddy
Arthur J. Barrett, Jr.
The following-named gunners to be chief gunners in the
Elmer J. Dunn
Kenneth S. McPherson
Navy, to rank with but after ensign, from the 4th day of
Harry C. Stevenson
Ray R. Conner
October 1933:
Baylies V. Clark
Edward F. Manning
Midshipman Herbert S. Fulmer, Jr., to be an ensign in the
Francis E. Church
The following-named electricians to be chief electricians
Navy from the 14th day of June 1933.
The following-named medical directors to be medical di-
in the Navy, to rank with but after ensign, from the 4th
rectors in the Navy, with the rank of rear admiral, from the
day of October 1933:
Carl A. Quarnstrom
2d day of June 1927:
Elmer A. Barton
Middleton S. Elliott
Roland E. Moore
James C. Pryor
Surgeon John Harper to be a medical inspector in the
The following-named radio electricians to be chief radio
electricians in the Navy, to rank with but after ensign, from
Navy, with the rank of commander, from the 1st day of
the 4th day of October 1933:
August 1933.
The following-named surgeons to be medical inspectors in
William M. Thomas
the Navy, with the rank of commander, from the 1st day
Arthur T. Hodges
Paul J. Koterba
of September 1933:
Machinist Robert L. Davis to be a chief machinist in the
Martin Donelson
Walter A. Vogelsang
Louis H. Roddis
Elphège A. M. Gendreau
Navy, to rank with but after ensign, from the 2d day of
Paul Richmond, Jr.
Virgil H. Carson
September 1932.
Machinist Virgil A. Cowart to be a chief machinist in the
Pay Director George G. Seibels to be a pay director in the
Navy, with the rank of rear admiral, from the 2d day of
Navy, to rank with but after ensign, from the 10th day of
January 1933.
June 1927.
The following-named machinists to be chief machinists
Paymaster Herman G. Bowerfind to be a pay inspector in
in the Navy, to rank with but after ensign, from the 4th
the Navy, with the rank of commander, from the 4th day
day of October 1933:
of June 1931.
The following-named passed assistant paymasters to be
DeWitt O. Thomas
Frank F. Loftin
Harry G. Jones
Leon M. Glasscock
paymasters in the Navy, with the rank of lieutenant com-
Charles W. Hart
Donald R. Cheek
mander, from the 4th day of June 1931:
Lester A. Dyckman
Charles S. Seidle
Bernice C. Hesser
Frank H. Baeson
William H. Abbey
Billie B. Bullard
George W. Masterton
Thomas L. Sorrell
Pay Clerk Thomas C. Wade to be a chief pay clerk in the
Thomas A. Culhane
Navy, to rank with but after ensign, from the 1st day of
William R. Parker
Passed Assistant Paymaster Lorimer C. Graham to be a
March 1933.
paymaster in the Navy, with the rank of lieutenant com-
Pay Clerk James W. Frey to be a chief pay clerk in the
Navy, to rank with but after ensign, from the 22d day of
mander, from the 30th day of June 1931.
Assistant Paymaster Alfred P. Randolph to be a passed
March 1933.
The following-named pay clerks to be chief pay clerks in
assistant paymaster in the Navy, with the rank of lieutenant,
the Navy, to rank with but after ensign, from the 3d day of
from the 30th day of June 1933.
Edward S. Rhea, a citizen of Kentucky, to be an assistant
April 1933:
paymaster in the Navy, with the rank of ensign, from the
Matthew C. Ryan
Tallie M. Welch
30th day of July 1933.
Naval Constructor Beirne S. Bullard to be a naval con-
The following-named lieutenant commanders to be lieu-
structor in the Navy, with the rank of commander, from the
tenant commanders in the Navy, to rank from the dates
stated opposite their names, to correct the date of rank as
1st day of September 1933.
The following-named assistant naval constructors to be
previously nominated and confirmed:
naval constructors in the Navy, with the rank of lieutenant,
Orie H. Small, March 12, 1932.
Elmer B. Robinson, April 8, 1932.
from the 3d day of June 1933:
Leslie A. Kniskern
Elijah E. Tompkins, April 15, 1932.
Leonard Kaplan
Edward C. Craig
Arthur L. Karns, May 1, 1932.
John A. Sweeton
Leland D. Whitgrove
Homer E. Curlee, May 1, 1932.
Francis H. Whitaker
Carlyle L. Helber
Alden R. Sanborn
Homer B. Davis, June 1, 1932.
Dale Quarton
Bernard E. Manseau
James M. Connally, June 1, 1932.
Nicholas A. Draim
Milo R. Williams
Arthur E. Bartlett, June 1, 1932.
Harold J. Wright, June 5, 1932.
Henry A. Ingram
Civil Engineer Norman M. Smith to be Chief of the Bureau
Alfred J. Byrholdt, June 14, 1932.
of Yards and Docks in the Department of the Navy, with the
Charles A. Goebel, June 16, 1932.
Stonewall B. Stadtler, June 20, 1932.
rank of rear admiral, for a term of 4 years.
1934
CONGRESSIONAL RECORD-SENATE
219
Maurice H. Stein, June 30, 1932.
Henry F. Mulloy, June 16, 1932.
Hobart A. Sailor, June 30, 1932.
George W. Allen, June 20, 1932.
Thomas P. Jeter, July 1, 1932.
Stephen G. Barchet, July 1, 1932.
Adolph O. Gieselmann, July 1, 1932.
William P. Tammany, July 1, 1932.
David H. Clark, July 1, 1932.
Shirley Y. Cutler, July 25, 1932.
Jeffrey C. Metzel, August 1, 1932.
Richard F. Stout, August 1, 1932.
Festus F. Foster, August 1, 1932.
Willford M. Hyman, August 1, 1932.
Russell M. Ihrig, August 2, 1932.
Bernard L. Austin, August 2, 1932.
James J. Graham, August 11, 1932.
Joseph M. P. Wright, August 11, 1932.
Ralph H. Roberts, September 1, 1932.
Norman W. Ellis, September 1, 1932.
Valentine H. Schaeffer, September 1, 1932.
Joseph E. Wolowsky, September 1, 1932.
The following-named lieutenants to be lieutenants in the
James R. Pahl, September 26, 1932.
Navy, to rank from the dates stated opposite their names
George W. Patterson, Jr., October 1, 1932.
to correct the date of rank as previously nominated and
Joseph A. Callaghan, October 1, 1932.
confirmed:
Howard L. Collins, October 23, 1932.
John L. Brown, November 1, 1931.
John W. C. Brand, November 1, 1932.
Thomas E. Kelly, November 6, 1931.
John N. Opie, III, November 8, 1932.
Matthew L. Kelly, November 17, 1931.
Aurelius B. Vosseller, December 1, 1932.
George A. T. Washburn, December 1, 1931.
John R. Ruhsenberger, December 14, 1932.
Homer Ambrose, December 29, 1931.
Emory W. Stephens, January 1, 1933.
Robert R. Buck, January 1, 1932.
Donald F. McLean, January 1, 1933.
Philip R. Coffin, January 7, 1932.
Howell C. Fish, January 5, 1933.
Philip H. Jenkins, February 1, 1932.
Alfred J. Bolton, January 12, 1933.
William A. Fly, February 13, 1932.
John M. Kennaday, January 14, 1933.
Marvin P. Kingsley, February 21, 1932.
Philip M. Boltz, January 18, 1933.
Charles A. Parker, March 1, 1932.
Sumner K. MacLean, February 1, 1933.
John R. McKinney, March 12, 1932.
William D. Brown, February 16, 1933.
John A. Morrow, April 1, 1932.
Everett W. Abdill, March 1, 1933.
Harry A. Dunn, Jr., April 8, 1932.
Paul L. F. Weaver, March 1, 1933.
John H. Brady, April 15, 1932.
Edward W. Young, April 1, 1933.
John H. Parrott, May 1, 1932.
Henry F. Agnew, May 1, 1932.
John D. Shaw, June 1, 1932.
CONFIRMATION
Harry E. Morgan, June 1, 1932.
Executive nomination confirmed by the Senate January 8,
Winston P. Folk, June 5, 1932.
1934
Edward S. Mulheron, June 10, 1932.
SECRETARY OF THE TREASURY
John P. B. Barrett, June 14, 1932.
William A. Graham, June 14, 1932.
Henry Morgenthau, Jr., to be Secretary of the Treasury.
HOUSE OF REPRESENTATIVES
MONDAY, JANUARY 8, 1934
The House met at 12 o'clock noon.
Resolved, That as a further mark of respect to the memory of
The Chaplain, Rev. James Shera Montgomery, D.D.,
the deceased Representative, the Senate do now adjourn.
offered the following prayer:
Senate Resolution 119
Almighty God, our Heavenly Father, Thou who dost
Resolved, That the Senate has heard with profound sorrow the
enrich the poor in spirit and feedeth the soul with immortal
announcement of the death of Hon. BOLIVAR E. KEMP, late a Rep-
resentative from the State of Louisiana.
bread, give us that satisfying portion that leavens the
Resolved, That the Secretary communicate these resolutions
understanding, the conscience, and the human heart. O
to the House of Representatives and transmit a copy thereof to
bless us with the incorruptible treasures of knowledge,
the family of the deceased.
power, and fairness. Blessed Lord, our mission calls for
Resolved, That as a further mark of respect to the memory of
the deceased Representative, the Senate do now adjourn.
much strength, courage, and decision of character. Do
Thou endow us richly with patience and wise discrimina-
MESSAGES FROM THE PRESIDENT
tion, and, above all, may we keep our own vineyards above
Sundry messages in writing from the President of the
reproach. Bridge our infirmities, and at the very center of
United States were communicated to the House by Mr.
all hearts may there be the compelling desire to know more
Latta, one of his secretaries.
of the living realities of life. O make us to know of the
The SPEAKER. Under the special order of the House,
shelter and the safety of the Great Rock, under whose
the gentleman from Maryland [Mr. GOLDSBOROUGH] is
shadow there is experienced the tropical warmth of the
recognized for 1 hour, and then the gentleman from Penn-
heart and where the flame of love continues to glow on the
sylvania [Mr. ELLENBOGEN] is entitled to recognition for 3
altar of the human soul. We praise Thee, O God; we
minutes.
acknowledge Thee to be the Lord. Amen.
Mr. GOLDSBOROUGH. Mr. Speaker, on last Wednesday
THE JOURNAL
I asked for time to speak on Thursday. Ordinarily, when
The Journal of the proceedings of Friday, January 5,
the House first convenes after a long recess, there is no
1934, was read and approved.
business to transact for the first few days and with that
MESSAGE FROM THE SENATE
usual condition in mind, the request was made. The ma-
jority leader very properly suggested that in view of the
A message from the Senate, by Mr. Horne, its enrolling
fact the tax bill was ready for consideration on Thursday
clerk, announced that the Senate had passed the following
he would object to my having time on that day. I would
resolutions:
not have made the request had I understood the legislative
Senate Resolution 114
situation.
Resolved, That the Senate has heard with profound sorrow the
announcement of the death of Hon. EDWARD B. ALMON, late a Rep-
Mr. KVALE rose.
resentative from the State of Alabama.
Mr. GOLDSBOROUGH. I yield to the gentleman from
Resolved, That the Secretary communicate these resolutions to
Minnesota.
the House of Representatives and transmit a copy thereof to the
Mr. KVALE. Would the gentleman desire to yield for a
family of the deceased.
Resolved, That as a further mark of respect to the memory of
point of no quorum?
the deceased Representative, the Senate do now adjourn.
Mr. GOLDSBOROUGH. Yes; I yield.
Senate Resolution 115
Mr. KVALE. Mr. Speaker, I make the point of order
Resolved, That the Senate has heard with profound sorrow the
a quorum is not present.
announcement of the death of Hon. JAMES S. PARKER, late a
The SPEAKER. The gentleman from Minnesota makes
Representative from the State of New York.
Resolved, That the Secretary communicate these resolutions to
the point of order there is not a quorum present. Evidently,
the House of Representatives and transmit a copy thereof to the
there is not a quorum present.
family of the deceased.
Mr. BYRNS. Mr. Speaker, I move a call of the House.
Resolved, That as a further mark of respect to the memory of
the deceased Representative, the Senate do now adjourn.
The motion was agreed to.
Senate Resolution 116
Accordingly the Clerk called the roll, when the following
Members failed to answer to their names:
Resolved, That the Senate has heard with profound sorrow the
announcement of the death of Hon. LYNN S. HORNOR, late a Rep-
[Roll No. 77]
resentative from the State of West Virginia.
Resolved, That the Secretary communicate these resolutions to
Abernethy
Cooper, Tenn.
Green
Pettengill
the House of Representatives and transmit a copy thereof to the
Auf der Heide
Corning
Griffin
Pou
Ayers, Mont.
Cravens
Haines
Powers
family of the deceased.
Resolved, That as a further mark of respect to the memory of
Beam
Crowther
Harlan
Reece
Beck
Cullen
Harter
Reid, Ill.
the deceased Representative, the Senate do now adjourn.
Beiter
Dear
Hess
Richards
Senate Resolution 117
Biermann
De Priest
Hughes
Richardson
Resolved, That the Senate has heard with profound sorrow the
Boylan
Dickstein
James
Romjue
announcement of the death of Hon. JOHN D. CLARKE, late a Rep-
Britten
Dingell
Jones
Simpson
Brooks
Ditter
Keller
Somers, N.Y.
resentative from the State of New York.
Brown, Ga.
Douglass
Kennedy, Md.
Stokes
Resolved, That the Secretary communicate these resolutions to
Brunner
Doutrich, Pa.
Kerr
Stubbs
the House of Representatives and transmit a copy thereof to the
Bulwinkle
Doxey
Lanzetta
Sullivan
family of the deceased.
Cannon, Wis.
Drewry
Lee, Mo.
Sweeney
Resolved, That as a further mark of respect to the memory
Carley
Fish
Lehlbach
Thom
of the deceased Representative, the Senate do now adjourn.
Carpenter, Nebr.
Fitzgibbons
Lewis, Md.
Tinkham
Senate Resolution 118
Carter, Wyo.
Fitzpatrick
Lozier
Underwood
Celler
Focht
McDuffie
Wadsworth
Resolved, That the Senate has heard with profound sorrow the
Chapman
Foulkes
McLean
Waldron
announcement of the death of Hon. HENRY W. WATSON, late a
Claiborne
Frey
McLeod
Weaver
Representative from the State of Pennsylvania.
Cole
Gasque
Mansfield
Whittington
Resolved, That the Secretary communicate these resolutions to
Collins, Miss.
Gavagan
Montet
Wilson
the House of Representatives and transmit a copy thereof to the
Connery
Gifford
Muldowney
Wood, Ga.
family of the deceased.
Connolly
Gillette
Owen
220
JANUARY 8, 1934
CONGRESSIONAL RECORD-HOUSE
221
The SPEAKER pro tempore (Mr. PARKS). Three hundred
4. The amount of contributions and the cost required for a
and thirty-one Members have answered to their names; a
contributory system for the payment of pensions, beginning at 65
and at 70 years of age, at amounts ranging from $25 to $50
quorum is present.
monthly.
On motion of Mr. BYRNS, further proceedings under the
5. The desirability of contributions exclusively from employers
call were dispensed with.
and employees, or else from the Federal Government.
(b) To sit and act in the District of Columbia or elsewhere in
[Mr. GOLDSBOROUGH addressed the House. His remarks
the United States; to hold such hearings, to employ such experts,
will appear hereafter in the Appendix.]
actuaries, and such clerical, stenographic, and other assistants; to
request by subpena or otherwise the attendance of such wit-
The SPEAKER pro tempore (Mr. PARKS). By special
nesses, and the production of such books, papers, and documents;
to administer such oath; to take such testimony; to secure such
order of the House, the gentleman from Pennsylvania [Mr.
data, and any and all other information; to have such printing
ELLENBOGEN] has 3 minutes to address the House.
and binding done as it deems necessary; an oath or affirmation
may be administered by any member of the committee.
THE DISTRICT OF COLUMBIA LIQUOR BILL
(c) To require the service of such employees of the Federal
Mr. BYRNS. Mr. Speaker, if the gentleman from Penn-
Government as it may deem necessary and as the department is
sylvania will yield, I understand the lady from New Jersey
able to dispense with.
(d) To report within 6 months, or at the beginning of the next
[Mrs. NORTON] has just reported the bill H.R. 6181, regu-
session of Congress, and to recommend such legislation as it deems
lating the sale of liquor in the District of Columbia. I want
appropriate in order to establish an old-age contributory pension
to ask unanimous consent that that bill may be taken up
system under the jurisdiction of the Federal Government.
tomorrow after the reading of the Journal and considered
SEC. 4. The expenses of the committee, not to exceed $15,000,
shall be paid out of the contingent fund of the House, upon
under the general rules of the House.
voucher signed by the chairman of the committee.
The SPEAKER pro tempore. The gentleman from Ten-
Mr. ELLENBOGEN. "Mr. Speaker, I ask unanimous con-
nessee asks unanimous consent that the bill H.R. 6181, re-
sent to extend my remarks in the RECORD and include
ported by the Chairman of the Committee on the District
therein a speech that I delivered over the radio.
of Columbia, shall be taken up tomorrow after the reading
The SPEAKER pro tempore. Is there objection?
of the Journal and the disposition of matters on the
There was no objection.
Speaker's table and considered under the general rules of
the House. Is there objection?
[The matter referred to appears in the Appendix.]
There was no objection.
LEAVE TO FILE REPORT ON H.R. 6181
OLD-AGE PENSIONS
Mrs. NORTON. Mr. Speaker, I ask unanimous consent
The SPEAKER pro tempore. The gentleman from Penn-
that I may file the majority report on the bill H.R. 6181 by
sylvania [Mr. ELLENBOGEN] is recognized.
midnight tonight.
Mr. ELLENBOGEN. Mr. Speaker, in my time I ask unan-
Mr. MARTIN of Massachusetts. Reserving the right to
imous consent that the Clerk of the House read the resolu-
object, may I ask if there is a minority report?
tion which I send to the desk.
The SPEAKER pro tempore. Is there objection?
Mr. PATMAN. I ask unanimous consent that the mi-
There was no objection.
nority views may be filed with the majority report.
The Clerk read as follows:
Mrs. NORTON. Mr. Speaker, I will be glad to include
that in my request.
Resolution to create a committee, to make a study and prepare
legislation for the establishment of a uniform national old-age
The SPEAKER pro tempore. Is there objection to the
pension system on a contributory basis
request of the gentlewoman from New Jersey and the gentle-
Whereas under modern methods of mass production by the use
man from Texas?
of machines it is constantly becoming more difficult for persons of
There was no objection.
middle age and old age to secure employment; and
Whereas honest and industrious workers who have contributed
EXTENSION OF REMARKS
to the wealth and productivity of our Nation are entitled to better
consideration in their old age than as objects of charity; and
Mr. LUDLOW. Mr. Speaker, I ask unanimous consent to
Whereas it is now widely believed that many of the poor-relief
extend my own remarks briefly in the RECORD.
systems in operation in the United States are an inadequate, incom-
petent, and at the same time, very costly method of providing for
The SPEAKER pro tempore. Is there objection?
the aged; and
There was no objection.
Whereas 27 States, as well as the Territories of Alaska and
Hawaii, have by statutory enactment adopted systems of old-age
[The matter referred to appears in the Appendix.]
assistance which are granted to certain of their aged popula-
tion; and
Mr. GOLDSBOROUGH. Mr. Speaker, I ask unanimous
Whereas it may be desirable to provide a system of old-age
consent to extend and revise the remarks I have just made.
assistance which will be uniform throughout the United States,
The SPEAKER pro tempore. Is there objection?
and which will provide for the transient as well as the permanent
There was no objection.
resident; and
Whereas the most feasible and practical way whereby a system
Mr. O'MALLEY. Mr. Speaker, I ask unanimous consent
of old-age pensions can be made adequate and uniform through-
to extend my remarks in the RECORD by printing a speech
out the United States, is through assistance by the Federal Gov-
delivered by Representative RANDOLPH last Sunday.
ernment, preferably under a system of contributary pensions; and
Whereas accurate and complete statistics as to the number of
The SPEAKER pro tempore. Is there objection?
aged persons and as to the life expectancy of all persons are
There was no objection.
available; and
Whereas from these statistics actuaries can easily calculate the
[The matter referred to appears in the Appendix.]
amount of contributions to a system of old-age pensions required
and of the total cost thereof: Now, therefore, be it
Mr. BLACK. Mr. Speaker, I ask unanimous consent to
Resolved, That there is hereby created a committee, which shall
address the House for 45 minutes.
be known as Old Age Security Commission, to consist of seven
The SPEAKER pro tempore. Is there objection to the
members to be appointed by the Speaker of the House of Repre-
sentatives;
request of the gentleman from New York?
SEC. 2. The members of the Old Age Security Commission shall
There was no objection.
serve without pay but shall be allowed reasonable expenses for
Mr. BLACK. Mr. Speaker, I ask unanimous consent to
actual travel and subsistence and such other expenses as are
extend my remarks in the RECORD.
incurred for the purpose of transacting the business of the
commission.
The SPEAKER pro tempore. Is there objection?
SEC. 3. The committee, or any duly authorized subcommittee
There was no objection.
thereof, is hereby authorized and directed-
Mr. BLACK. Mr. Speaker and gentlemen of the House,
(a) To study and investigate-
1. The operation and extent of old-age assistance systems now
this speech of mine is designed to meet several attacks that
in operation in the various States;
have been made during the recess on the N.R.A. as uncon-
2. The establishment of a system of old-age contributory pen-
stitutional. I have in mind principally articles written by
sions for persons 65 years and over under the jurisdiction of the
our distinguished colleague, the gentleman from Pennsyl-
Federal Government or of any agency thereof.
3. The actuarial problems involved in the inauguration of a
vania [Mr. BECK], and particularly one published in the
contributory old-age pension system.
November issue of Fortune.
222
CONGRESSIONAL RECORD-HOUSE
JANUARY 8
The Constitution is a book of life. It is dynamic, gener-
ernment. Such a doctrine leads directly to anarchy or despotism;
ating, at the will of the people, power in the Government
but the theory of necessity on which it is based is false, for the
strong enough to protect the Nation in all hazards of its
Government within the Constitution has all the powers granted
to it which are necessary to preserve its existence, as has been
existence. It is not a museum curio to be reverently gazed
happily proved by the result of the great effort to throw off its
upon as the keystone of a former civilization. As the court
just authority.
in its early days said, in passing upon the case of Martin
Congress naturally in normal times does not, for fear of
against Hunter:
the voters' reaction, unduly assert itself. Should Congress
The instrument was not intended to provide merely for the
abuse its lawful power, Judge Miller, in Kilburn against
exigencies of a few years, but was to endure through a long lapse
Thompson, points out that:
of ages, the events of which were locked up in the inscrutable
purposes of providence. It could not be foreseen what new
The remedy for this, however, lies not in the abuse by the judi-
changes and modifications of power might be indispensable to
cial authority of its function but in the people, upon whom, after
effectuate the general objects of the charter, and restrictions and
all, under our institutions, reliance must be placed for the correc-
specifications which at the present might seem salutary might
tion of abuses committed in the exercise of a lawful power.
in the end prove the overthrow of the system itself.
The fact that Congress generally does not use its powers
The Constitution is not a moth-eaten blanket for smoth-
to the last degree does not paralyze them. They are alive
ering progress to be dropped on the American scene by such
and ready for emergency, ready to operate according to the
staid scholars as my colleague Mr. BECK whenever the
popular will, in line with the viewpoint expressed by Justice
rights of man are being asserted in a way that jars the
White that:
more stationary of our statesmen. They are ever ready and
Although an emergency may not call into life a: power which
willing to demonstrate glibly the outlawry of the new.
has never lived, nevertheless, emergency may afford a reason for
These extreme conservatives even thought it heretical when
the exertion of a living power already enjoyed.
one of their most trusted guides, Justice Pitney, reluctantly
In an emergency the congressional power may be applied
conceded that the law must press on, in stating:
to objects that in normal times constitutional limitations
Let it be admitted that mere novelty is not a ground of con-
would save from the touch of government. The powers are
stitutional objection, since it is the appropriate function of a
the same and the objects are the same, but the emergency
legislature to change the laws.
gives them a more intimate relevancy to government and
It was quite to be expected that when President Roosevelt
usually the congressional powers are called into operation
propounded the National Recovery Act the die-hards"
to regulate them. The public interest being aramount, the
would invoke the Constitution as a bar to the new deal.
shield of the fifth amendment does not intervene and pri-
Mr. BECK, more or less awed by the onrush of the Blue
vate rights are remarshaled for the public objective. The
Eagle crusaders, and without appreciating their lawful in-
freedom guaranteed is not a freedom to destroy government.
tent, props the present constitutional issue in this unilateral
The unbridled exercise of so-called rights might accom-
pose:
plish such destruction in an emergency and by so doing viti-
Can the Constitution be temporarily suspended to meet the
ate themselves. The guarantor does not éngage in joint
exigencies, real or imaginary, of an economic emergency?
bond with the guaranteed to accomplish mutual destruc-
Mr. BECK, enjoying at the political roadside a well-earned
tion. The emergency alteration of the usual relationship
rest after his skillful and successful leadership of the wet
caused courts to regulate rents in the District of Columbia
cause was startled at the unseemly pace of the White House
as the result of the war and caused the Supreme Court, in
intelligentsia and thought they were the drys coming back.
Block against Hirsch, to uphold the congressional act, there
So he rushed to the protection of his cherished Constitu-
declaring:
tion which actually was in no danger. While it is true that
Congress has stated the unquestionable embarrassment of gov-
Mr. BECK views the hurried marchers with alarm, they form
ernment and danger of the public health in the existing condi-
tion of things. The space in Washington is necessarily monop-
an army with banners and the banners are for constitutional
olized in comparatively few hands and letting portions of it is as
progress. They are not attacking the Constitution, but they
much a business as any other. Housing is a necessary of life, all
are attacking with it. No advocate of the N.R.A. asks for
the elements of a public interest justifying some degree of public
control are present.
a suspension of the Constitution, for that is beyond the
power of government. Mr. BECK, as well as they, under-
It was but natural to expect that in the course of the
stands that an act suspending the Constitution would ipso
development of the United States considered absolutely or
facto be a legislative nullity.
relatively as a world competitor a more concentrated organi-
The Constitution keeps step with the times. The Supreme
zation of economic power would evolve with a paralleled
Court in Pensacola Telegraph Co. against Western Union,
political set-up. This could only be achieved at the sacri-
gives this vivid picture of constitutional development:
fice to a sizable extent of individualism, Mr. BECK is hor-
The powers thus granted are not confined to the instrumentali-
rified at the regimenting of industry under the N.R.A., but
ties known or in use when the Constitution was adopted, but they
I predict that as other countries become more intensely or-
keep pace with the progress of the country and adapt themselves
ganized in the space of a few years there will be a vigorous
to the new developments of time and circumstances. They extend
from the horse with the rider to the stagecoach, from the sailing
public demand for an economic system here more closely
vessel to the steamboat, from the coach and steamboat to the
knit with government, so that we can offset the organized
railroad and from the railroad to the telegraph as these new
economic powers of all nations.
agencies are successfully brought into use to meet the demands
of increasing population and wealth. They were intended for
A national breakdown may force regimentation to be
the government of the business to which they relate at all times
ordered years before it would normally develop. The due
and under all circumstances.
process clause being consonant with the general purposes of
It is a fallacy to assert that the planners of the N.R.A.
the Constitution and always having been implied in the
insist that Congress obtains power -as the result of an
original document enumerating the powers of Congress does
emergency. Those who advised this scheme of recovery were
not shift to block the public welfare when property rights
too careful in their planning to overlook the historic back-
step from behind it and assume a public character.
ground of constitutional powers. They understand that an
Mr. BECK becomes a violent extremist when he contends
emergency invests Congress with no extraordinary powers.
that the extended supervision over commerce destroys our
It simply justifies Congress in applying sufficient of its
devotion to the Declaration of Independence. Mr. BECK
latent powers to meet new conditions. Power proceeds from
has forgotten the sage words of the Court in National Cotton
the Constitution, not from the emergency.
Oil Co. against Texas:
Justice Day has stated the rule with great clarity:
To contend for these extremes is to overlook the difference in
the effective actions and to limit too much the function and
The Constitution of the United States is a law for rulers and
power of government by arguing from extremes. Almost every
people equally in war and in peace and covers with the shield of
exercise of government can be shown to be a deprivation of in-
its protection all classes of men at all times and under all circum-
dividual liberty.
stances. No doctrine involving more pernicious circumstances
was ever invented by the will of man than that any of its provi-
The stagnation of commerce, threatening the very exist-
sions can be suspended during any of the great exigencies of gov-
ence of this Government, its Constitution and laws, was the
1934
CONGRESSIONAL RECORD-HOUSE
223
emergency faced by the present Congress as it met in spe-
merce. To build up markets, employment had to be stim-
cial session. All communities were calling for Federal help
ulated. Thus the N.R.A. was devised, not as a pressure for
and Federal funds. Congress had to answer these appeals,
product, but as a development of consumption factors.
obliging it to reestablish our economics SO that the general
Commerce would not flow unless attracted by markets; and,
welfare would be maintained thus replenishing tax fields for
if pending law or a lack thereof discouraged commerce, it
the repayment of Federal advances. A primitive psychol-
was plainly the duty of Congress to legislate properly. The
ogy, lending itself to rash action, had been inspired by a
opposition to the then proposed commercial regulations
surplus of commodities and lack of funds on the part of
could be classified with the opposition to the child labor
the public to purchase the necessary portions of the same.
laws, and this block takes some grains of comfort from the
Our people were desperate. Bereft in a land of riches, they
case of Hammer against Dagenhart, which was the medium
were provoked. Theirs was the position that Goldsmith
of the Supreme Court nullifying as unconstitutional the
sketched in The Deserted Village:
child labor law. By a majority of one, the Court declared
To see profusion that they cannot share.
that goods produced by the impairment of child life might
Congress had two courses open-oratorical ballyhoo of
have the protection and fostering of interstate commerce.
better times, or drastic action within its powers. An aroused
Mr. BECK'S school relies on this judgment as destructive to
public would brook no fatuous speeches, and new constitu-
the N.R.A. The Court made this proposition:
tional remedies had to be found. Congress had to forego its
There is no power vested in Congress to require the States to
exercise their police power so as to prevent possible unfair compe-
comfortable and favorite pastime of droning declamation
tition.
and apply itself to the serious work of solving the problem,
The grant of power to Congress over the subject of interstate
much in the spirit of John Ruskin when he announced:
commerce was to enable it to regulate such commerce and not to
give it authority to control the States in the exercise of the police
I feel the force of mechanism and the fury of avaricious com-
power over local trade and manufactures.
merce to be at present so irresistible that I seceded from the
study not only of architecture but nearly of all art and have given
The marked difference between the child labor law and the
myself as I would in a besieged city to seek the best modes of
National Recovery Act lies in the effort by Congress in the
getting bread and water for its multitudes.
former to suppress an antisocial labor condition permitted
While the purpose of Congress was justified by all human
in a limited area of the country, while in the latter Congress
instincts, its operations had to be within the scope of the
attempts to cure by legislation a Nation-wide economic dis-
force extended to it by the Constitution. The welfare of the
ease which has absolutely clogged commerce. In the child-
country was at stake. Congress realized that the welfare ob-
labor case conservative judges, bowing to the Cardozo philos-
jective stated in the preamble of the Constitution conferred
ophy that a judge is not cloistered, readily understood that
of itself no legislative authority, and, further, that the so-
a welfare lobby had induced Congress to invoke its com-
called welfare clause in the body of the document was but
merce power to remedy an isolated social evil. The Court
qualifying the taxing power. Commerce had to be regulated
can, in the N.R.A., without looking beyond the act, ascertain
in the sense that it required fostering and protection, which
the motives of Congress in the preamble to the bill. More-
functions, said the Supreme Court, in the second employers'
over, no place was a sanctuary from the depression, and
liability case, were within our power.
news of it has seeped into the most sacred temples. At least
Research establishes that the Union was conceived with
three members of the present court, Justices Brandeis, Stone,
an idea of commercial nationalism. That the States became
and Cardozo, are quite willing to have a judge be informed as
united in order to facilitate and free commerce here was
to current events in the world outside. The Court under-
amply demonstrated in the argument of Mr. Webster before
stood that child labor shocks the moral sense of the national
the Supreme Court in the early case of Gibbons against
unit without working any present profound commercial
Ogden.
harm, while general unemployment, leading to mass hunger,
Some excerpts from the report of Webster's brilliant plea
which means a failure of government in a country richly
which was sustained by the Court will be most encouraging
endowed, makes it imperative for government to readjust
to the N.R.A. advocates:
the commercial system which it bears. So it is repugnant to
Few things were better known that the immediate causes which
every theory of sovereignty to deny the legislative power to
led to the adoption of the present Constitution, and he thought
exclude from the stream of interstate and foreign commerce
nothing clearer than that the prevailing motive was to regulate
products offered under a system whose continuance would
commerce to rescue it from the embarrassing and destructive con-
sequences resulting from the legislation of SO many States and to
destroy the Nation. In the light of our jurisprudence it is
place it under the protection of a uniform law. The great objects
tantamount to the suggestion that Congress may protect
were commerce and revenue, and they were objects indissolubly
the morals by penalizing the transportation of women for
connected.
In the history of the times it was accordingly found that the
immoral purposes; that it may protect health by banning
great topic urged on all occasions as showing the necessity of a
misbranded drugs and adulterated foods; that it may dis-
new and different government was the state of trade and com-
courage the gambler by barring lottery tickets from trans-
merce.
portation in interstate commerce; but that it may not take
The resolutions of Virginia in January 1786, which were the
immediate cause of the convention, put forth this same great
action to conserve the whole of our commerce because of the
object. There is not another idea in the whole document. The
police power of the States or the exaggerated right of the
entire purpose of the delegates assembled in Annapolis was to
rugged individualist who generally associates with others
devise means for the uniform regulation of trade. They found
in business enterprises, to liberty of contract.
no means but in the general government and they recommended
the convention to accomplish that purpose.
In a case subsequent to Hammer against Dagenhart the
We do not find in the history of the formation and adoption
Supreme Court sought to avoid the apparent restriction put
of the Constitution that any man speaks of a general concurrent
upon the commerce powers of Congress in that very much
power in the relation of foreign and domestic trade as still re-
siding in the States. The very object intended more than any
condemned five to four decision, for when Stafford against
other was to take away such power. If it had not SO provided
Wallace came to the Court for its verdict the judges opened
the Constitution would not have been worth accepting.
the way for Congress to assume the imperative control over
What is that to be regulated? Not the commerce of the several
commerce set out in the N.R.A. This litigation involved the
States respectively, but the commerce of the United States.
Henceforth the commerce of the States was to be a unit, a
validity of an act of Congress which attempted to regulate
system by which it was to exist and to be governed must neces-
the methods of doing business by commission brokers acting
sarily be complete, entire and uniform. Its character was to be
within the various stockyards of the United States. There
described in the flag which waved over it E pluribus unum.
was no question but that in many respects these trans-
The founding fathers were accurate in their forecast
actions took place all within a State and concerned matters
that the life of the Nation depended on its commerce and
usually left to State regulation, but the Court held that the
that commerce among the States depended on the power of
act was constitutional on the ground that the activities of
the Nation. The present Congress saw the very existence of
the commmission brokers, unless regulated, were a burden
the Nation, our form of government, and our underlying sys-
upon interstate commerce. The Supreme Court has time
tem of economics on the verge of dissolution. To revive
and again upheld the power of Congress to suppress obstruc-
commerce there were needed markets, the terminals of com-
tions to commerce. The child-labor law was to suppress a
224
CONGRESSIONAL RECORD-HOUSE
JANUARY 8
social evil which the involved States could themselves have
lated from the economic terror abroad, will permit the
suppressed. It is quite definite that acts in relation to inter-
opinion in the child-labor case to thwart the effort of Con-
state commerce come within the congressional jurisdiction.
gress to allay the depression. It will be difficult enough to
The Minnesota rate cases lend sanction to this broad power
cure it by any form of legislation, and certainly any bill less
of Congress. Said the Court:
comprehensive than the National Recovery Act will be in-
The authority of Congress extends to every part of interstate
consequential.
commerce and to every instrumentality or agency by which it is
carried on, and the full control of Congress of the subjects com-
It might be well for those who believe that Congress has
mitted to its regulation is not to be denied or thwarted by the
taken too bold a step forward in this matter to read the
commingling of interstate and intrastate operations. This is not
startling observation made sometime ago by G. Lowes Dick-
to say that the Nation may deal with the internal concerns of
the State, as such, but that the execution of Congress of its
enson, an English university lecturer, under the title Let-
congressional power to regulate interstate commerce is not limited
ters from a Chinese official
by the fact that intrastate transactions may have become so
Like the prince in the fable, you seem to have released from his
interwoven therewith that the effective government of the former
prison the genie of competition, only to find that you are unable
instantly controls the latter.
to control him. Your legislation for the past hundred years is a
In United States against Ferger, Chief Justice White held
perpetual and fruitless effort to regulate the disorders of your
economic system. Your poor, your drunk, your incompetent, your
that the power of Congress includes the authority to deal
aged, ride you like a nightmare. You have dissolved all hu-
with obstruction to interstate commerce and with a host of
man and personal ties, and you endeavor in vain to replace them
other acts having relation to or influence upon interstate
by the impersonal activity of the state. The salient characteristic
of your civilization is its irresponsibility. You have liberated
commerce, although not interstate commerce in and of
forces you cannot control; you are caught yourselves in your own
themselves.
levers and cogs. In every department of business you are substi-
The Nation must act in uniformity toward all the States.
tuting for the individual the company, for the workman the tool.
That it did not in the child-labor law; that it does in the
The making of dividends is a universal preoccupation; the well-
being of the laborer is no one's concern but the state's. And this
N.R.A.
concern even the state is incompetent to undertake, for the fac-
The early case of Groves against Slaughter established that
tors by which it is determined are beyond its control. You depend
Congress cannot pass a nonintercourse law as among the
on variations of supply and demand which you can neither deter-
mine nor anticipate. The failure of a harvest, the modification
several States nor impose an embargo that shall affect only
of a tariff in some remote country, dislocates the industry of mil-
part of them. Congress did try to impose such an em-
lions thousands of miles away. You are at the mercy of a pros-
bargo in the child-labor law, but in the N.R.A. an effort
pector's luck, an inventor's genius, a woman's caprice-nay, you
has been made to lift the embargo the depression clamped
are at the mercy of your own instruments. Your capital is alive,
and cries for food; starve it and it turns and throttles you. You
on commerce in and through all the States.
produce not because you will but because you must; you consume
The lottery cases, the Mann Act, and the prize-fight film
not what you choose but what is forced upon you. Never was
law did prohibit interstate commerce advancing objects
any trade SO bound as this which you call free; but it is bound not
thought to be deleterious. The child-labor law sought to
by a reasonable will but by the accumulated irrationality of
caprice.
obstruct innocuous objects whose manufacture was attended
by group evils entirely in the consigning State. These in-
We do not have to be as pessimistic about the outlook as
terstate-commerce laws, passed as a sop to reform and sus-
this burning criticism of the modern industrial system would
tained by the Supreme Court, have shown a power in Con-
make one. Neither rose-colored glasses nor blue afford the
gress over interstate commerce that does not concern itself
precision required for a statesmanlike survey of the problem
primarily with the commercial aspects of the situations
to be negotiated.
comprehended by the legislation. If Congress has power by
We would not be justified in a drifting policy, and our
prohibition to guard morality, it should have power by pro-
present hope of salvation lies in cooperation. The experi-
hibition to guard business morality intending a conservation
ment proposed by Congress should be accepted in the spirit
of markets and a free flow of commerce.
of Washington's Farewell Address:
Congress, in the Antitrust Acts, the Grain-Futures Act, and
The experiment at least is recommended by every sentiment
which ennobles human nature.
similar statutes, has been upheld in its efforts against de-
liberate strangulation of commerce. Surely Congress when
The Court, as alert as Congress to safeguard the public
it sets up a plan of industrial cooperation as a stimulus to
welfare, will appreciate the tremendous pressure on Congress
commerce will receive judicial approbation. If Congress
for legislation of a distinctively radical aspect to those who
could provide for competition by the Antitrust Acts, it can
have survived on the laissez faire system and are prepared
regulate it by the N.R.A. Congress under the N.R.A. is
to sink with it.
making definite criteria of fair competition having already
A study of the Supreme Court action on the constitution-
declared that the indefinite activity, unfair competition, is
ality of Federal legislation is heartening to the advocacy of
unlawful.
the new policies. In the 144 years of its existence, in which
The Federal Trade Commission act declared that unfair
period approximately 140,000 cases have been decided, the
competition in interstate commerce was unlawful. It did
Supreme Court has declared only 60 congressional enact-
not define unfair competition, but left such definition to the
ments unconstitutional. Every presumption is in favor of
courts.
the constitutionality of the considered act, and unless it is
Now, Congress has established a method to determine
squarely in violation of the organic law, the court will uphold
what unfair competition is in each industry. As the Court
the legislation.
sanctioned the Federal Trade Commission, it will in all logic
The N.R.A. has already received the sanction of the Su-
sanction the Recovery Administration. The child-labor
preme Court of the District of Columbia. The court, in
case, with a 5 to 4 decision passing on a statute whose object
commenting on the present state of the Nation, made this
was plainly not commercial, will not prevail against the his-
striking and rather broad comment:
torical development of the interstate-commerce powers of
It may happen that other emergencies prove more perilous to
Congress, the emergency inspiration for their fullest use
national life than war itself. War may tend to unify a nation.
and the disaster that would attend the invalidating of the
There are emergencies that tend to disorganize and to destroy.
Another maxim is the safety of the people is the supreme law."
statute. Could the then Court have anticipated the present
This concept must have its place in our laws dealing with emer-
national plight, it would not have stated itself SO broadly to
gencies that threaten national safety or stability. While the
extinguish the child-labor law. Read in the light of today
courts held that the Constitution is not suspended or set aside by
war or national emergency, it is thought that the Constitution and
the opinion can tolerate much editing. As Justice Brandeis
all other laws must be read in the light of and, to some extent,
has stated:
subject to the primal and fundamental concept of the necessity for
The Court bows to the lessons of experience and the force of
self-preservation.
better reasoning, recognizing that the process of trial and error SO
The Agricultural Adjustment Act has already twice re-
fruitful in physical sciences is appropriate also in the judicial
function.
ceived judicial imprimatur the same principles of constitu-
tional law being invoked on which the N.R.A. is predicated.
It is far from sane expectancy to believe that the nine
The opposition to the N.R.A. is put to it to understand how
alert and learned justices of the Supreme Court, not insu-
the Congress can regulate what is on its face a strictly intra-
1934
CONGRESSIONAL RECORD-HOUSE
225
state commercial transaction. The principle of the N.R.A.
the theory of our Government relations favored by Chief
extent of congressional control over such intrastate business
Justice Taft in passing on the Tariff Act of 1922:
has been affirmed several times by the highest Court. In the
* * *
To avoid such difficulties Congress adopted
***
Shreveport case, which received much congressional atten-
the method of describing with clearness what its policy and plan
was and then authorizing a member of the executive branch to
tion, the Supreme Court supported the Interstate Commerce
carry out its policy and plan and to find the changing difference
Commission in an action taken on railroad rates from Hous-
from time to time and to make the adjustments necessary to con-
ton and Dallas to other points in Texas on the ground that
form the duties to the standard underlying that policy and plan.
such rates were discriminatory against interstate commerce
As it was a matter of great importance, it concluded to give by
statute to the President the function of determining
transported from Louisiana similar distances into Texas.
the difference as it might vary.
There Justice Hughes stated that the authority of Congress
While it is true that the Lever Act was declared unconsti-
extended to the maintenance of conditions under which
interstate commerce may be conducted upon fair terms, and
tutional although a war-time measure, there the difficulty
that while Congress did not possess the authority to regulate
was lack of precision as to violations. Criminal statutes
the internal commerce of a State, as such, it did have power
must be definite. It may be that a particular code could
to foster and protect interstate commerce and to take meas-
be set aside on this basis, but that would only be charged
ures necessary or appropriate to that end, and further, that
to a lapsing from the directions set out by Congress in the
the power to regulate interstate commerce was granted to
act, and in itself be a violation of the N.R.A.
Congress to make impossible the recurrence of the evils
Perhaps the Court will not be pressed to pass on the
which had overwhelmed the confederation and to provide the
fundamentals of the law, for the signatures to a code could
necessary basis of national unity by insuring uniformity of
readily be declared waivers of constitutional rights. The
regulation against conflicting and discriminating State leg-
licensing provisions may be considered a form of duress and
then the waiver value would be nullified, opening for the
slation.
Again, in the Wisconsin rate case, where a somewhat simi-
Court's attention the basic questions. Naturally the waiver
lar situation was presented to the Court, Chief Justice Taft
theory would not arise if a nonsigner seeks the protection of
the judicial branch of Government.
declared:
The Court can in the pending state of the Nation be both
*** The principles laid down in the Shreveport case left no
room to question the power. Congress in its control of its inter-
realistic and legalistic. Its own precedents favor, and the
state-commerce system is seeking in the Transportation Act to
country demands, the " new deal." The 9 judges are not 9
make the system adequate to the needs of the country by securing
blinded hermits, stupefied by the dust of an old court room,
for it a reasonable compensatory return for all the work it does.
crying out, O Tempora! O Mores!" They advance with
The States are seeking to use that same system for intrastate
traffic. That entails large duties and expenditures on the inter-
the times along a well-charted constitutional path. The
state-commerce system which may burden it unless compensation
judges will not inconvenience the public if it can be avoided.
is received for the intrastate business reasonably proportionate to
They will be mindful of the economic eruption that would
that for the interstate business. Congress, as the dominant con-
attend an adverse decision on the N.R.A. It would be in
troller of interstate commerce may, therefore, restrain undue limi-
tation of the earning power of the interstate-commerce system in
line with declaring the Selective Service Act unconstitu-
doing State work. The affirmative power of Congress in developing
tional as the American Expeditionary Force was achieving
interstate-commerce agencies is clear.
victory. Two recent declarations from the bench are proof
In Wallace against Callistan Packers Co., which was
of this and are also prophetic of the fate of the N.R.A.
decided in October 1933 in the Federal District Court of
Justice Brandeis brought the Nation sharply to attention
California, the court was required to pass upon the right of
with this thoughtful declaration:
the Secretary of Agriculture to enjoin a company from pro-
The people of the United States are now confronted with an
ducing peaches in excess of its quota under the A.A.A. The
emergency more serious than war. Misery is widespread, in a time
court declared:
not of scarcity but of overabundance. The long-continued depres-
sion has brought unprecedented unemployment, catastrophic
It must be construed to give the Congress the power to regulate
fall in commodity prices, and a volume of economic losses which
any and all commerce which may seriously affect the interstate
threatens our financial institutions. There must be
trade. This court, with propriety, cannot make the narrow hold-
power in the States and the Nation to remold, through experi-
ing that the legislative body, under this analogous statute, is
mentation, our economic practices and institutions to meet
without power to regulate intrastate commerce as a proper means
changing social and economic needs.
of achieving the desired regulation of the interstate commerce.
In this and other respects the power to regulate must be construed
Chief Justice Hughes places his finger on the casual effect
to effectuate the broad purposes of the constitutional grant and of
industrial decline has on commerce when in the Appalachian
the national policy.
Coals case he reminded the country that—
So from 1824, when Gibbons against Ogden was decided,
When industry is grievously hurt, when producing concerns fail,
to the present day, with the exception of the apparent detour
when unemployment mounts, and communities dependent upon
of the Supreme Court in the Child Labor Case, the tendency
profitable production are prostrated, the wells of commerce go dry.
of our Federal tribunals has been to approve congressional
The Congress will not permit these wells to remain dry
extension of powers under the interstate commerce clause.
nor will the people nor the Constitution nor the Supreme
The stability of Mr. BECK is shattered as he visions a
Court. [Applause.]
Roosevelt dictatorship since Congress has delegated certain
Mr. LAMNECK. Mr. Speaker, I ask unanimous consent
necessary powers to the President under the N.R.A. A
to address the House for 45 minutes.
dictator subject to a court belies the term, and Mr. BECK
The SPEAKER pro tempore. Is there objection?
believes that Mr. Roosevelt's power will be drastically limited
There was no objection.
by the Supreme Court. Business in the emergency required
Mr. LAMNECK. Mr. Speaker, I rise to address the House
a commander in chief. There was a far-flung cry in the
in support of the President's policy to restore the 1926 price
business world for leadership, and when the life of the
level and at the same time provide sound money for this
Nation chanced engulfment in the business catastrophe it
Nation. In my opinion, this question transcends in impor-
was the certain duty of the President to accept that leader-
tance all other questions now claiming public attention.
ship and of Congress to give him the necessary powers. This
Its proper solution will determine whether the depression
delegation was constitutional, for Congress, after clearly
is to continue or whether we are to have prosperity. We
stating its objectives, sets forth the principles and general
have the economic power to control this situation. How
methods by which the President was to achieve them. The
shall we use this power? We have the power; what we need
legislative body followed its former course in the Tariff Act
is a clear vision of the truth about it.
of 1922 when conferring rating powers on the White House.
I am addressing myself particularly to those Members of
The various statesmen who lauded that clause in the tariff
Congress who are in sympathy with the President's program
are highly critical now, and a little hysterical, but the court
to alleviate human suffering, stimulate business, and bring
is not swung by political considérations and will accept
happiness and contentment to all the people. The Presi-
No. 4-8
226
CONGRESSIONAL RECORD-HOUSE
JANUARY 8
dent has been very definite in his pronouncements. There
Mr. Speaker, we have not had sound money in the United
has been no equivocation. His high purposes are under-
States since October 1929. The purchasing power of our
stood, appreciated, and applauded by the people of the coun-
money has either been rapidly rising or rapidly falling.
try regardless of politics. He wants the 1926 price level and
In both instances profitable world markets have been closed
a dollar that will have the same purchasing power from one
to us because of this condition. Our customers who used
generation to another. That is the issue; it is a clean-cut
to purchase from our surplus of production can no longer
issue. I favor it, and I wish to address myself to those
finance their purchases, and we, as a result, are afflicted
Members of Congress also favoring it and who wish to
with what is called " overproduction." To restore our com-
give the President their support, and who wish to help
merce and to restore our markets and be able to sell at a
bring about the high aims set out in this policy.
profit are primary steps toward curing this depression. Fur-
Congress has definite responsibilities in this matter. It
thermore, it is a fundamental step; it deals with causes
represents the constitutional authority of our Government
rather than results. All the legislation and all the activi-
specifically delegated to Congress to coin money and regulate
ties of this Government during these past 4 years have
the value thereof. It is the fundamental law of the country.
been dealing with effects. They have represented an effort
We cannot depart from it. Our Government caunot law-
to distribute the burdens of depression rather than to cure
fully function to suit the whims of individuals or any group
the cause of the depression. We have placed 4,000,000 men
of individuals, for the power has been given to the Supreme
on the pay roll of the Government, but the Government has
Court of the United States to interpret and enforce the
no profits from which to pay these men: It must pay them
Constitution.
from taxes and from borrowed money. We must relieve the
Mr. Speaker, we have been in this depression for 4 years.
taxpayers of the burden of maintaining millions of persons
To meet and cure the present distressing conditions Congress
who are on nonproductive pay rolls or it will surely destroy
has conferred certain extraordinary powers upon two suc-
this Government. We must restore profits, and we must
ceeding Presidents. The right of Congress to delegate such
restore them quickly To restore profits we must remove
authority may be questioned, and that is one matter to which
the cause of depression and bring back those conditions
I wish to address myself for just a moment. There is such
upon which prosperity must be based.
a thing as delegating authority to the Executive in order
You cannot have depression in a country of the natural
to strengthen his hand and give to him the necessary power
wealth of the United States if you have free commerce in
to accomplish the things which are important or impera-
the world and a sound money system. There is no sound-
tive. There is such a thing, also, as the Congress shirking
ness in the money system where the money base has fluctu-
its responsibility and placing its powers where they cannot
ating value. Sound money implies stable price levels. Any
be used. On the eve of the world conference at London it
one or any two or a dozen commodities, may fluctuate in
was of the greatest importance that our President should
value, due to overproduction or other conditions, but the
be possessed of particular and extraordinary powers that we
whole list of commodities cannot be into a slump, without
might give every possible opportunity to the London Confer-
proving that something has happened to your money base.
ence to work out a price level that would restore prosperity.
Gentlemen, we are facing the most critical period in our
The London Conference failed to restore a price level that is
history, because we have not dealt with this question in its
in the interest of the United States. It immediately de-
fundamental aspect during these 4 years. Nations all over
veloped in that conference that any effort of the United
the world are learning to produce what we used to produce
States to raise price levels was offensively called an inflation
for them. Spain can grow her wheat, Asia and Africa can
plan. To raise price levels and at the same time have sound
grow cotton; the French chef is learning to make pastries
money is the object of the Government. It is the announced
out of Argentine wheat; the Englishman is learning to make
policy of this Government; and if that is inflation, those
bread out of Argentine flour with equal success to American
who are opposed will have to make the most of it. I claim
flour; and Europe is showing that a preference for Chicago
that a stable price level and an honest price level is sound
beef is passing to Argentine beef.
money, not inflation. And whether I am right in this state-
Mr. Speaker, we have delayed too long in entrusting the
ment, or not right, is one of the matters this Congress can
management of our money system to experts who are tem-
determine.
porarily serving our Government and who are permanently
This is the rock on which the London Conference had
employed, in the main, by the very interests that have
to split. There was no other result except one, and that
opposed us in our efforts.
was a surrender of our wealth of resources and our future
Price levels cannot be controlled by the banking interests
prosperity.
of the world, and also by the United States Congress. One
The London Conference was a failure, as was predicted
or the other must assume control. The experts of the bank-
in this House of Representatives at the time the resolution
ing interests have been advising our Government. Con-
was passed authorizing our participation in it. Valuable
gress alone seems to be able to secure experts who are
time was lost; but we could not oppose this method of deal-
divorced from these opposing interests. Three months ago,
ing with this question, because it was forced upon the Con-
at a conference in the Treasury Department, one of the
gress by the uncontrolled and uncontrollable sentiment
chief advisers of the Treasury made the statement that if
which had swept this country into the conclusion that an
this Government resorted to a certain action he would be
economic conference was the one way out. This conclu-
forced to resign his position. How can a government func-
sion was not founded upon intelligence and not upon reason.
tion when its advisers are ready to go on strike unless their
Was it founded upon propaganda spread over our country?
particular views are carried into effect? How can we, sit-
That is quite a question!
ting in this Congress, know that one official who threatens
But now that the London Conference is a failure, we can
to resign is not in harmony of thought with many others?
come back to the speeches that were made in this House
How can we know that the officials of our Government are
by Representative FIESINGER, of Ohio, Representative Amlie,
not threatening to strike, and other forms of duress, if the
of Wisconsin, and by others, pointing out the reasons why
policies of the Government refuse to conform to the indi-
the conflict of interests between Europe and America in
vidual opinions of these men?
the matter of price levels could never be adjusted in a
The framers of our Constitution, in their unequaled
conference, and also pointing out that American protection
wisdom of statesmanship took due note of these things in
could only be arrived at by independent American action.
delegating this power to Congress, and SO I say that Con-
And now, the most important question before the Con-
gress, acting under its constitutional authority, must support
gress, the Nation, and the world is to take up where the
the hands of the President in this program he has so wisely
London Conference left off and to succeed where the London
pronounced-the 1926 price level, and stable, sound money.
Conference failed in restoring the 1926 price level and at
THE FIESINGER BILL
the same time provide this Nation and the world with sound
There is a bill pending in this Congress which was pend-
money.
ing at the time of the resolution relating to the London
1934
CONGRESSIONAL RECORD-HOUSE
227
Conference. This bill is a second declaration of independ-
these policies of the President. Without any doubt, so far
ence as applied to our economic life. It recognizes gold
as I have been able to find out, this bill sets up the ma-
as the measurement of value. It puts the control of price
chinery for reaching this desired end, and there is no one
level in the hands of the Government instead of in the
who can charge that it provides for giving to the people of
hands of the international bankers, as it now is. It places
America a balony dollar. On the contrary, it provides for
the United States in control of its money system for the
a dollar that has as its measuring unit gold values of the
first time in the past 100 years and takes it out of the
1926 price level. It is a dollar-and this is the important
control of the hands of the European nations. It gives silver
fact-that will carry with it in the markets of the world a
a monetary use. In effect, it doubles the supply of gold of
definite intrinsic value, and the machinery is provided for
the world. It prevents the manipulations of gold values.
regulating and maintaining this value.
It restores the purchasing power of all nations now on a
The entire aim of this administration, in its announced
silver basis, and gives to them a world money.
money policy, is fully accomplished by the provisions of
If these statements are true, who is there that could
this bill; not only that, there is no other measure before the
oppose such a piece of legislation?
Congress that can claim such a result. Also we have taken
This bill was sidetracked in order that the London Con-
the power to regulate money values out of the hands of banks
ference might be given the opportunity to show what it
and groups of men who will further their selfish ends by sel-
could do. We have all seen what it could do-it could fur-
fish market operations based upon prior information. We
nish a beautiful trap for the United States to walk into.
have proven conclusively, in recent years, that groups of men
We were saved from going into this trap, not by the action
occupying positions of power given to banks for the regula-
of our London delegates at the London Conference. They
tion of money values use this power selfishly. Manipulative
were prepared-and perfectly willing-to walk into this trap.
operators in world moneys should not have anything to do
I myself had a conference with Governor Cox, the chief rep-
with setting up a monetary policy for America. This bill sets
resentative of the American Government at this conference,
up a regulating control based on the 1926 price level. When
a few days before he left for London.
the value of gold is above this level it is brought down; when
the value of gold is below this level it is brought up by one
I went to this conference with Representative FIESINGER,
of two methods. First, the familiar method of retiring cred-
my colleague from Ohio, and Mr. John Janney, our eco-
nomic adviser, at the request of President Roosevelt. We
its through the Federal Reserve bank, which we all know
were in conference on the 24th day of May, and I was told
works splendidly when it comes to creating depression of
commodity prices; and the other is by the method of regu-
by Governor Cox that the program for the London con-
lating the metallic base. With $250,000,000,000 of debts in
ference was not only fully arranged, but it was all agreed
the United States to be retired it will be a long time before
to." Governor Cox told us the details of this arrangement,
the machinery for the control of the metallic base will have
and in my view and in the view of Judge FIESINGER and in
to be operated to create depression.
the view of Mr. Janney, these arrangements would have
A long period of prosperity will be needed to offset the ex-
placed a yoke upon the neck of the producers of wealth
travagances and waste of the last 4 years and the extrava-
in the United States which would have proven so burden-
gances and waste still continuing, and that will continue for
some to this Nation that it might well have resulted at
the next 2 years, at least. If this bill should become a law,
some future time in a war between this country and those
we will restore the basis of prosperity throughout the world
nations who were in control of the powers that this program
within the next 60 days. But it will be a year or more, even
would have given them. This situation was saved by the
then, before we can revive the vitality of the prostrate na-
action of the President of the United States, when he di-
tions of the world by the normal opening of markets and
rectly reversed his position and refused to acquiesce in or
the beginning of trade between nations that have a surplus-
longer subscribe to such a program. In a word, the Presi-
and those that need this surplus. But we have in this bill
dent broke up the London conference.
the means of setting up a new monetary system and a new
The point I wish to make here is this: Why was the
gold standard for the gold-standard countries as well as a
President in agreement with this program up to the time
new silver standard for the silver-standard countries, by sim-
where he reversed his position? It was because of his eco-
ply restoring the destruction worked upon the money system
nomic advisers, and I emphasize now this danger that the
by the action of nations that wished to put the world on a
President is hampered by the influence of economic advisers,
bank-control basis.
who are not permitting him to clearly visualize what is the
It want to say to the House of Representatives that the
method and the way to secure the best interests of the
United States of America is the only nation in the world
United States.
powerful enough to block this movement to put the world
We have here in this Congress the authority, and we must
on a bank-control basis, and there is a definite reason for
have the opportunity, to debate these matters. We have
this. The reason is that the United States is the only great
the opportunity to investigate in our committees, and we
world power that is also a great producing nation. There
should have the opportunity to bring these very advisers of
are, many nations in the world who are in the class of pro-
the President into questionings and congressional examina-
ducers, but they do not occupy the position of a world power.
tions so as to be able to dig down into the very vitals of the
The wealth of the United States comes from its great
matter. It is impossible that the President can have the
natural resources, from its great power of production, and
time or the opportunity for such investigation; and, as a
from its great manufacturing establishments. We produce
matter of fact, I happen to know that as far as this Con-
our own raw materials, and the producers and handlers of
gress is concerned it cannot send its representatives to
those materials constitute the greater part of our market for
question these men as employees of the Government. We
our manufactured goods. That is why we are dependent
can only question them by bringing them before our com-
upon high-price levels.
mittees. They will not yield themselves to questioning by
The nations of the world, on the other hand, who import
our representatives, and I say to this Congress that if they
their raw materials and who import their foodstuffs are
did yield themselves up to questioning by our representa-
benefited by the adversity of our producing industries.
tives we would be able to have a much clearer picture of
They profit if we produce our raw materials at a loss, for it
what the thing is that they are trying to do, and we would
lowers their cost of manufacture and their costs of living.
have a much clearer understanding of why they have de-
At the same time that it lowers our scale of living it raises
layed SO long in placing this Nation on a sound-money basis.
theirs. It is an instrument of exploitation, but we are the
The President has declared for a dollar that will have a
ones exploited. For this reason it is to the interest of the
purchasing power which will be the same today and a gener-
United States to stand alone and adopt a policy to prevent
ation hence. The President has declared for a dollar that
exploitation of this country. It is to the interest of the
shall have the purchasing power as represented by the 1926
United States to adopt an American plan, and this American
price level. But how are these things to be accomplished?
plan has already been promulgated and is before us in the
That is the practical question. H.R. 1577 is in accord with
form of a finished product in H.R. 1577.
228
CONGRESSIONAL RECORD-HOUSE
JANUARY 8
I suggest for the serious consideration of the House of
I stand here and say to you that I have studied these
Representatives that we immediately study and debate this
records, and not only did we adopt this monetary policy
bill as a remedy for the cause of this depression and give it
without debate, not only did we adopt it without considera-
priority over any other measure.
tion but we adopted it without even knowledge of what we
In connection with the consideration of this bill there is
were doing! It was a piece of legislative trickery; it was a
a matter that appears to me to be one of supreme impor-
piece of work in the committee that was silent and secretive.
tance. I am sure that many Members of this House of
Even members of the committee did not know what was
Representatives will agree with me in what I am about to
being done, according to their own declarations. The Presi-
say. This country is flooded with propaganda. There is
dent and Members of the House did not know they were
hardly a man that I meet who is not mystified on this im-
acting on such a measure. But, as I have said before, the
portant question. The mind of the average man is SO con-
shadow of the hand of England rests over this enactment.
fused that he cannot exercise the intelligent consideration
Our CONGRESSIONAL RECORD, on page 2304 of April 9, 1872,
that a voter in a democratic form of government must
contains the very significant announcement that-
exercise. I wonder and I marvel at this propaganda. The
Mr. Ernest Seyd, of, London, a distinguished writer, who has
question in the minds of many of you-and it is a question
given great attention to the subject of mints and coinage, after
in my mind-is whether this propaganda has not some
examining the first draft of the bill, furnished many valuable
suggestions, which have been incorporated in this bill.
source or influence that is purposeful and aims to accom-
While the committee take no credit to themselves for the orig-
plish the very result that is accomplished in the mystifica-
inal preparation of this bill, they have given to it the most careful
tion and complication of this important subject. I there-
consideration and have no hesitation in unanimously recommend-
fore urge upon this House of Representatives that we should
ing its passage as necessary and expedient.
investigate the source of all this propaganda which has
Who did prepare this bill and why this reference in the
created so much confusion on this question, and that we
RECORD of Mr. Ernest Seyd, of London? Were there not
find out who is directing public sentiment in the United
American advisers, who could have conferred with this com-
States on this vital issue. If a resolution to investigate
mittee, of equal authority and knowledge? Were there not
this propaganda is not presented by some Member of this
American advisers equally informed as to the interests of the
House, I shall do it myself.
United States? What was the interest of England in this
For my part, I have tried to investigate this educational
legislation? It was to have an enactment as it was made.
buncombe which is swamping the United States. My ex-
What was the interest of the United States? It was exactly
perience is that a man who has studied the money question
the opposite of this. At that period the interests of the
is blocked from freedom in discussion with the sources of
United States were to formulate a sound monetary system,
much of this propaganda. Although I am a Congressman
one adapted to the changing conditions in the world due to
of the United States, I cannot bring into the open light of
the demonetization of silver in Europe. It was to our inter-
investigation as an individual either the source of this
est to adopt a monetary system that could maintain a stable
propaganda or just what it is intended to do. There is a
purchasing power for the profits of our resources; a system
secrecy about it; there is a subtleness about it. Congress
which could maintain a stable commodity price level, and a
is full of it, and the minds of our people are full of it. I
system that could maintain a sound dollar, recognized as a
receive letters from my constituents urging me to certain
desirable money unit in the markets of the world.
courses, and on investigation find that they have no knowl-
Our problem today is exactly the same as our problem
edge or real thoughts on the subject. They have been told
then. We are just 60 years late in addressing ourselves to
to write to me and, in their ignorance and gullibility, they
this issue. This Nation stands on the brink of a precipice
do write.
because of this delay, and yet we are so flooded with propa-
The Congress of the United States must immediately
ganda to prevent us from addressing ourselves to the sub-
throw the searchlight of investigation into this dark corner,
ject that our whole Nation is engulfed with it. We must
or we are going to be swamped with political influences that
know without delay who the Ernest Seyds are who are act-
are manufactured in foreign countries and that will lead us
ing in an advisory capacity in this Nation today, and we can
to the surrender of our heritage of living, just as has been
know this only through an investigation by Congress. No
done on former occasions. Just as we did, for example,
man would dare oppose such an investigation who was not
when we entered into the Jay Treaty with England, which
a traitor to this country. We are merely proposing here to
was ratified on June 24, 1795, whereby we needlessly sur-
protect this country. We are not making any charges or
rendered our right to the freedom of the seas. We fought
accusations against any specific individual or group of indi-
the War of 1812 to regain this right, but the same political
viduals. We are merely taking the precaution to avoid that
influences prevented even a discussion of this subject at the
history shall repeat itself. But, so far as I personally am
treaty which terminated that war. President Wilson vowed
concerned, I wish to say that I cannot make a satisfactory
to regain the freedom of the seas at the Treaty of Versailles;
investigation as an individual citizen, and I find myself
but did we regain it? Is the Jay Treaty still in force?
confronted by stone walls in any individual effort made
When this Congress attempted to regulate the rates
to turn the propaganda that is flooding this Nation from
through the Panama Canal and England stepped in and told
assertion into fact and from mystification into simple truth.
us what we could do about these canal tolls, there was a
The country is full of mystification. The country is full of
general sense of resentment throughout the United States.
falsity and confusion caused by this subtle propaganda.
Why could not an American canal, built on the American
This comes from somewhere. Things do not exist without
Continent and with American' money, be regulated by an
a prior cause. There is a cause for these things; but, above
American Congress? The answer was that political in-
all, there is a source of power to the opposition for an
fluences had summoned together a treaty-making body and
American program and an American plan which will assure
that this country had sold the right to regulate the tolls, or,
to America that due protection to our monetary system and
rather, given it away, through the Hay-Pauncefote Treaty.
to our economic interests that is compatible with our posi-
In 1873 the American Government promulgated a law of
tion in the world. [Applause.]
greater consequence than any other monetary legislation
Mr. BEITER. Mr. Speaker, I ask unanimous consent
ever enacted in its history. It adopted a policy of a change
to extend by remarks in the RECORD.
in the money system of this country which inevitably must
The SPEAKER pro tempore. Is there objection?
lower commodity prices at least 25 percent. I am not going
There was no objection.
into the question now of whether or not this was a wise
[The matter referred to appears in the Appendix.]
move. I am touching on the question, Why should the
Congress of the United States pass such important legisla-
Mr. GUEVARA. Mr. Speaker, I ask unanimous consent to
tion, SO vitally affecting the welfare of the country, without
extend in the RECORD a statement regarding the sugar indus-
debate? Why should we adopt a monetary policy without
try of the Philippines, prepared at my request by the Honor-
consideration?
able Rafael Alunan, president of the Philippine Sugar Asso-
1934
CONGRESSIONAL RECORD-HOUSE
229
ciation and formerly secretary of agricultural and natural
resources and secretary of finance of the Government of the
Mr. FIESINGER. I was just going to remark that very
Philippine Islands.
thing, that the power to " coin and fix the value of money
is solely within the power of the Congress of the United
The SPEAKER pro tempore. Is there objection?
States and it cannot be delegated to anybody else in the
There was no objection.
world.
[The matter referred to appears in the Appendix.]
Mr. McFADDEN. Will the gentleman yield further?
Mr. FIESINGER. I do.
Mr. YOUNG. Mr. Speaker, I ask unanimous consent to
address the House for 3 minutes.
Mr. McFADDEN. What does the gentleman say in regard
The SPEAKER pro tempore. Is there objection?
to the delegation of that power to the Federal Reserve
System?
There was no objection.
Mr. FIESINGER. Does the gentleman mean the Consti-
Mr. YOUNG. Mr. Speaker, Andrew Jackson's victory at
tution?
New Orleans was won 119 years ago today-January 8, 1815.
Mr. McFADDEN. No. What does the gentleman think of
He was the son of penniless Irish immigrants born 2 years
Congress delegating that power to the Federal Reserve
after they landed in North Carolina. Nowadays we are more
System?
exclusive. Under the strict immigration laws of today that
Mr. FIESINGER. I say it is illegal. I say it is unconsti-
Irish couple would be considered undesirable aliens and
Andrew Jackson would never have seen the light of day in
tutional, as far as it affects the value of basic money.
Power to control credits may be in a different class.
America.
Mr. McFADDEN. The gentleman recognizes that that was
He was born on the frontier-in the forest field of God-
done, does he not?
in a humble log cabin.
Mr. FIESINGER. Well, I think I recognize that fact; but
One window shuts out the snow and storm,
One window greets thee day.
it may be that Congress intended to delegate banking and
credit control and not the control of the basic money values.
" Old Hickory was a great soldier. His victory at New
Mr. McFADDEN. The Federal Reserve System has the
Orleans is one of the most remarkable battles in history.
power to issue Federal Reserve notes, which circulate as
The English army outnumbered Jackson's forces. The
money?
American losses were 13. In half an hour the English
Mr. FIESINGER. It has. Of course, they are promises
had lost 2,600 men, including their commander, Sir Edward
to pay. They are credits or I.O.U.'s of the bank.
Pakenham, a brother-in-law of the Duke of Wellington.
Mr. McFADDEN. And that power was delegated by Con-
As a soldier he saved a vast territory for his country. As
gress in the Federal Reserve Act.
a Democrat, he smashed the Second United States Bank and
Mr. FIESINGER. Yes, sir; with the intent to regulate
ended a dangerous monopoly. As President, he defeated the
the volume of credit.
South Carolina nullification ordinance. As President, when
Mr. McFADDEN. And is being pursued by them, which
France, then as now, a government of crooks and defaulters,
gives the Federal Reserve System control over the money
repudiated her just debt to the American people, he proposed
and credit in the United States.
that American warships seize French ships by force on the
Mr. FIESINGER. And thereby ability to at least influ-
high seas and credit the prize money to her account.
ence the price level, which is a greater power than the
France, of course, paid her debt because Andrew Jackson
power of taxation.
was stern and unyielding in his determination to serve the
Mr. McFADDEN. The gentleman knows that, in addi-
American people and maintain the dignity of America and
tion to the control of money and credit, the Federal Reserve
because he was right.
System has other powers which they exercise from time to
He was a soldier, Congressman, Senator from two different
time for the purpose of affecting price levels?
States, judge, President of the United States, implacable
champion of the dignity and honor of his country, and pre-
Mr. FIESINGER. Certainly. But I contend the power
server of the Union. He never turned his back to a friend
as to credits did not necessarily include the power as to
nor his face from a foe. He was the idol of the common
basic money. That power has been assumed. Congress
people. His spirit still lives and goes marching on. [Ap-
should assert its constitutional powers and take back the
plause.]
management of the money base.
Mr. FIESINGER. Mr. Speaker, I ask unanimous consent
Mr. MOTT. Will the gentleman yield?
to address the House for 40 minutes.
Mr. FIESINGER. I yield.
The SPEAKER pro tempore. Is there objection to the re-
Mr. MOTT. What does the gentleman say about the dele-
quest of the gentleman from Ohio [Mr. FIESINGER]?
gation by Congress to the President to fix the value of
There was no objection.
money, under the farm bill?
Mr. FIESINGER. Mr. Speaker, I listened with great
Mr. FIESINGER. I think it was illegal, and the Presi-
interest to my distinguished colleague from Ohio, Mr. LAM-
dent did not want it. It was forced upon him. He never
NECK, and I also listened intently to the distinguished gen-
asked to have that amendment attached to the farm bill. It
tleman from Maryland, Mr. GOLDSBOROUGH, who spoke
was forced upon him, and he is exercising the power because
immediately after the opening of the session today. I was
he was forced to exercise it; a power that he never wanted,
impressed with at least two things which the gentleman
and I say it is all illegal and unconstitutional.
from Maryland said. You will recall the gentleman spoke
Mr. McFADDEN. Will the gentleman yield further?
about Professor Sprague, who was in the Treasury Depart-
Mr. FIESINGER. I yield.
ment as adviser to the Treasury after he came as adviser for
Mr. McFADDEN. The gentleman has made a statement
the Bank of England. He was also monetary adviser to the
of his acquaintance with Dr. Sprague.
Economic Conference in London. I have no fault to find
Mr. FIESINGER. Yes.
especially with Dr. Sprague as far as his honesty is con-
Mr. McFADDEN. If the gentleman has been familiar
cerned, or as far as his patriotism is concerned. I know
with the activities of Dr. Sprague over the history of the
Dr. Sprague personally, but I want to say to you that it is
Federal Reserve System, he well knows that Dr. Sprague
dangerous to have the monetary policy determined by ex-
has been in all of the conferences, practically, between the
perts of the Government. The power to control the value
Bank of England, officers of the Federal Reserve bank in
of money is a more important power than the power of
New York and other central banks, which have had for their
taxation. The constitutional fathers placed the power of
purpose the dealing with national and international price
taxation only in this body and nowhere else.
levels. That was one of the functions that he was exercis-
Mr. McFADDEN. Will the gentleman yield?
ing as expert adviser of the Bank of England.
Mr. FIESINGER. I yield.
Mr. FIESINGER. Now, I understand that Dr. Sprague at
Mr. McFADDEN. The gentleman then concurs that that
the London conference was willing to peg the dollar to the
power is solely, under the Constitution, in the Congress and
British pound at $3.50, and, if he had done that, the price
cannot be delegated to anyone?
levels in America would have been in the control of the Bank
230
CONGRESSIONAL RECORD-HOUSE
JANUARY 8
of England, and it would have been SO low it would have
and no one else. There is a danger in delegating it to
wrecked our national economy.
economic experts whose interests the people do not know.
Mr. LAMNECK. Will the gentleman.
Mr. MOTT. In view of what the gentleman has said, does
Mr. FIESINGER. I yield.
not the gentleman think the inflation amendment to the
Mr. LAMNECK. Will the gentleman please insert at this
farm bill should be repealed at this session?
point what Dr. Sprague said about who should control the
Mr. FIESINGER. I would say so. I think it is uncon-
price level?
stitutional. A constitutional duty cannot be delegated, and
Mr. FIESINGER. I may say-I did not expect to answer
it is a duty under the Constitution that Congress coin
that question, but Dr. Sprague, in a conference he had,
money and regulate the value thereof. This bill (H.R. 1577)
stated he believed that the value of gold should be con-
is the only bill, however, yet offered which truly can claim
trolled by the British, because they were more competent,
to control and regulate the value or buying power of gold.
from banking experience, so to do.
Mr. McFADDEN. Mr. Speaker, will the gentleman yield?
Mr. LAMNECK. Will the gentleman yield further?
Mr. FIESINGER. Certainly.
Mr. FIESINGER. I will yield.
Mr. McFADDEN. Is the gentleman of the opinion that
Mr. LAMNECK. He also made that statement after he
the power given by Congress at the special session which
was working for the United States as an adviser, did he not?
gave the President the right to lower the gold content of the
Mr. FIESINGER. He did.
dollar unconstitutional?
Mr. McFADDEN. Will the gentleman yield further?
Mr. FIESINGER. I think so; absolutely-and I think, if
Mr. FIESINGER. I yield.
we had time to discuss the matter here, the whole theory
Mr. McFADDEN. The gentleman, just stated that Pro-
could be exploded as against the interests of America.
fessor Sprague was in favor of stabilizing the dollar at a
Mr. McFADDEN. Mr. Speaker, will the gentleman yield
$3.50 basis at the London Economic Conference.
further?
Mr. FIESINGER. I understand so. The gentleman from
Mr. FIESINGER. Certainly.
Maryland [Mr. GOLDSBOROUGH] said that in his speech. I
Mr. McFADDEN. In connection with this policy which is
did not know just what the figure was, but I have him for
now being carried out, if the gold content of the dollar is
authority for that statement.
lowered 50 percent through the purchase of gold by the
Mr. McFADDEN. Of course, the real facts in the case, I
Reconstruction Finance Corporation—
think the gentleman well understands, are that the British
Mr. FIESINGER. Right there, let me interrupt the gentle-
were not in favor of that, because it interfered with their
man from Pennsylvania. The gentleman says the policy is
world-trade relations and their ability to hold and continue
being carried out. There has been no step yet to revalue
to trade with the world on a basis that was favorable to
gold except what the Reconstruction Finance Corporation is
Great Britain, but they are perfectly willing to stabilize on
doing.
the basis of $4 or $4.05, and that is what they tried to do.
Mr. McFADDEN. I appreciate that.
Mr. FIESINGER. Which would give them the trade of
Mr. FIESINGER. The President might stop this thing
the world and lock up our doors as far as international trade
right at this minute and we would not be involved in any
is concerned. Why should we bind ourselves to England at
way.
any fixed value in terms of British bank-controlled paper
Mr. McFADDEN. I understand, but along with that I
money? In this bill (H.R. 1577) now under discussion we,
think the gentleman will agree there would have to be some
as a Nation, can control this important matter. We have
Executive announcement to clarify the situation.
the power to control it as an American policy. We do not
Mr. FIESINGER. I think SO.
have to tie ourselves to foreign management of money any
Mr. McFADDEN. Following such an announcement rela-
more than we had to tie ourselves to the Federal Reserve
tionships would have to be established between the then
bank. Credits are for banks-money is for Congress. This
dollar and the pound sterling and the franc, would it not?
would have been a tragic mistake had these experts led us
Mr. FIESINGER. That is what I wish to discuss before
into an agreement with England in this matter.
the House. This bill, H.R. 1577, provides a remedy for this
Mr. McFADDEN. If the gentleman please, it would have
very situation. It avoids the necessity for any entangling
cost the people of the United States hundreds of millions
agreements, and it gives us the power to regulate gold. If
of dollars a year.
we control the buying power of the ounce of gold, we do not
Mr. FIESINGER. Absolutely. I would say not only hun-
have to worry ourselves about pounds, or francs, or guilders,
dreds of millions, but billions of dollars.
or any other gold currencies. That is the big point in this
Mr. MOTT. Will the gentleman yield again while he is
situation.
answering questions?
Mr. McFADDEN. Does not the gentleman feel, in view
Mr. FIESINGER. Yes.
of the peculiar situation we are in now in this respect, such
Mr. MOTT. The gentleman stated that the President
an announcement is a very important function in connection
was forced to accept the inflation amendment on the farm
with it?
bill. Can the gentleman state who, in his opinion, forced
Mr. FIESINGER. It is of vital importance. Here is an-
the President to accept this amendment?
other important thing about that. I voted against the gold
Mr. FIESINGER. It is only an opinion of mine. I was
bill here. I think I was the only one in the Ohio delegation
in Congress at the time and I knew what was going on. I
who voted against that bill, although there may have been
think it was done in the Senate by certain Senators, and I
two of us. Around the House at that time the talk was that
think back of them there were certain interests which
the British lower courts had held it could pay its gold
advocated it.
contracts with English paper money. Two or three weeks
I really do not know just what the mechanics were. But
ago, however, the House of Lords reversed those decisions of
my deduction is that the President did not want this power,
the lower courts. What kind of a mess will this country be
that it was rather forced on him; and I think, subconsciously
in if we devalue and then the Supreme Court holds that
at least, he recognized that this power belonged to the
so-called gold clause contracts" must be paid in gold of
House of Representatives, and resides nowhere else under
the present weight and fineness according to the contracts?
our form of government.
It would wreck every corporation in this country which has
Mr. MOTT. Does the gentleman think the President is
outstanding contracts of this kind. Mr. Speaker, it is a very
going to use the power conferred upon him by that
serious matter we walked into here, and I hope before we
amendment?
get through the President will retrace his steps.
Mr. FIESINGER. I shall make no predictions about it.
If it were not for the solution to this problem, clearly pro-
But I may say I think the President is perfectly honest and
vided in this bill, it would be very serious. But this bill is of
honorable, and that his heart is in tune with the interests
no avail unless we debate it and understand it and act on it.
of the American people on this subject. The representatives
Mr. McFADDEN. Mr. Speaker, will the gentleman yield
of the people, however, are entitled to exercise this power,
further?
1934
CONGRESSIONAL RECORD-HOUSE
231
Mr. FIESINGER. Certainly.
state it in another way, that the commodity price level must
Mr. McFADDEN. It is evident from the situation that
be raised, by its overwhelming vote on the Goldsborough bill
now exists in regard to the purchase of gold and the change
in May or June of that year. Except for certain action on
of value of the gold dollar that this country must and will
the part of our Federal Reserve authorities, nothing was
inevitably go back to a gold basis.
done until President Roosevelt came into power when he
Mr. FIESINGER. Absolutely. That is what this bill pro-
boldly proclaimed that the 1926 price level must be reestab-
vides-a way to do. We can go back on the gold basis and
lished. I am in thorough accord with him in that objective,
at the same time provide American machinery for holding
although I may disagree with him in the details of its ac-
gold at the 1926 price level.
complishment.
For the benefit of those Members who came to the Seventy-
He recognizes the fact that the purchasing power of money
third Congress and were not Members of the Seventy-second
must be brought back to normal, that gold has been rari-
Congress, permit me to say that in the Seventy-second Con-
fied in value, that all other commodities and services have
gress the Committee of Coinage, Weights, and Measures
been depressed correspondingly in the other direction be-
made an exhaustive study of the so-called money question."
cause gold is the yardstick of measure for values. I step in
was a member of the committee and of the subcommittee
at that point and say here we have solved his problem. I
and devoted a great deal of my time to the study of that
say we have in this bill this remedy. We have worked out
question. The committee made a study covering several
the solution. We can control gold and without foreign com-
months. Many witnesses were called in, not a few of whom
plications, and here in this bill is how we can do it. His
bore very distinguished names because of their activities in
treatment, SO far as has been revealed, does not go to the
economics, commerce, and finance. This study was directed
extent of controlling gold or even of lowering the value of
more from the world viewpoint, to see what bearing, if any,
gold as a supreme world commodity that measures the value
the legislative enactments and monetary policies of other
of all other commodities and services that are exchanged
countries had upon our domestic economy. We studied the
internationally between gold-standard countries.
question of the sufficiency of the gold supply, the causes of
And here is the crux of the whole problem. There is a
the erratic movements in gold, its rarification, the stagnation
difference in the interest of nations. Some nations, and the
of world commerce and domestic trade, the disease of un-
United States is a conspicuous example as such, produce
employment, underconsumption, and lack of purchasing
more of the prime commodities than their domestic needs
power. In short, we ran the whole gamut to find out if
call for, as well as manufactured articles-and when I say
possible the basic cause of the depression.
prime commodities I mean foodstuffs and things that are to
But what I would like to emphasize is the important fact
be processed by manufacture. Other nations are more
that this study reaped a harvest in results. Not only have
in the nature of consumers of these products. All nations
we a bill before Congress which, in a very practical and very
are in some degree producers of prime commodities, yet
simple way, gives an American plan for controlling gold
their consumptive abilities far outweigh their produc-
buying power but also we have a full report from this
tive capacities, and their interest is to get as cheaply as
committee.
possible the things needed for consumption. If this is so,
The committee announced its findings to the House on
and I do not think it will be disputed by anyone, then the
May 14, 1932, in House Document 1320, giving its views as to
interest of such nations is to strive for a level of prices that
the cause of the depression, and I am sorry to say that so
will give them advantage in the things that they have to buy.
little publicity has been given to this report that probably
And that being so, the European nations are always work-
not more than two or three men now in the hearing of my
ing for a lower price level for prime commodities and food-
voice, outside of the members of this committee, ever read
stuffs than we can afford to take and maintain the eco-
that report. Yet it is one of the most important documents,
nomic structure or the wealth structure of the United States.
in my judgment, that ever issued from a committee of Con-
In this respect nations are no different than individuals; we
gress. I think the gentleman from Pennsylvania [Mr. Mc-
all want to buy cheap the things we have not and need,
FADDEN] read it, if I am not mistaken. I believe the gentle-
and sell dear the things we have and do not need. The
men from Ohio [Mr. LAMNECK and Mr. WEST] read it;
United States is or should be a great seller, and being a
three Members within the hearing of my voice. I want to
great seller it should protect its interest as a seller. In say-
read this to you now since you would not read it yourselves.
ing this, I say nothing disparaging of other nations who may
I want to read to you what the committee said was the
be buyers; they will look out for themselves. And they
cause of the depression:
should look out for themselves. I applaud them for looking
well to the interests of their people as very evidently they do.
The committee, through the weight of testimony, has learned
that the major depressions have followed governmental action
In my study of price levels with this committee and the
which directly resulted in the dislocation of money and through
study I have been able to make since, I find that the eco-
it, of commodity values, or, in other words in the destruction of
nomic power in price levels is the greatest power the nations
profits from productive industry. Profits reduced when the gen-
can contend for, and while I find European nations are
eral commodity price level is suddenly lowered by whatever cause
and completely wiped out when the price level goes below the
active and alert to guard their interests in the matter of
cost of production. The position of the United States has shifted
price levels, I also find with regret and, I might say, alarm,
as a result of the World War from a debtor to a creditor Nation.
that we are asleep at the switch. And, mind you, it is the
As a result of this, the profit from our productive industry has
duty of this Congress and all the Members of this Congress
assumed greater inportance as it establishes through investment
as well as consumption the basis of a market for our manufac-
to guard against the actions and also against the force of
tured products. The maintenance of a condition of prosperity
organized propaganda which may be exercised by foreign
in the United States is, therefore, accentuated to the point that
nations who seek to reduce the price level so that they may
the restoration of productive industry to a profit-earning basis
is of transcendental importance. To convey this idea, in other
buy the things that we produce more cheaply. It is to
words, we would say that the purchasing power of money must
their interest so to do, and to the interest of the majority of
be brought back to normal, and, to do this, the causes of dis-
their people. But it is to the interest of the vast majority
equilibrium in money must be removed. Our investigation has
of our people to protect world price levels from their
revealed that certain European nations, in an effort to protect
their manufacturing industries by affording a better cost basis
manipulations.
through lower prices of raw materials and foodstuffs, suddenly,
If it is in our power and I claim that it is to protect our-
and either inadvertently and-unintentionally or quite deliber-
selves as sellers, and if we do not do so then we have no
ately, depressed the world commodity price levels below the point
one to blame but ourselves if our domestic economy is
that admits of any profit to the American producer. We find
that this result has followed directly and definitely from certain
wrecked. We are attempting now to help ourselves as
governmental acts, the effects of which are clearly traceable so
sellers, but in a negative way. We are limiting production
that all the important facts are well sustained by the evidence we
to help our position as a seller; well that is one way to do it.
have gathered.
But somewhere in the world someone is needing that produc-
That statement was made a long time before we did any-
tion, and if that is true, then the trouble is not the lack
thing about it. I am not saying that the House did nothing.
of need, but ability to satisfy the need. I realize needs must
It did recognize rather early in 1932 that the purchasing
be reciprocal otherwise there can be no satisfaction, but will
power of money must be brought back to normal. Or to
anyone say that America has no needs.
232
CONGRESSIONAL RECORD-HOUSE
JANUARY 8
I was told not SO long ago that in a rather small com-
an effect that is well known and well understood outside
munity in my district-industrial in its nature-there were
of the United States but an effect that is very little under-
500 persons without shoes to wear. The citizen of Turkestan
stood within the United States. It caused a strain upon gold
is not the only one whose ribs are showing through. Limi-
that rarified its value and depressed all other commodities
tation of production is not the permanent cure, restoring of
in the world. People all over Asia, as well, no doubt, as
profits to agriculture, industry, and commerce is the one and
elsewhere, bought gold exchange and other gold equivalents,
only permanent cure. And that brings me back to price
which forced pressure on gold, and then sold silver down
levels; in order to have a profit you must have a price level
from 65 cents per ounce to 25 cents per ounce, which rubbed
above the cost of production, and I do not mean a domestic
out nearly 4 billion dollars of the world's money base in the
price level but a world price level, because the domestic price
form of silver values.
level is influenced if not determined by the world price level
This naturally increases in the same proportion gold
of things that we have to sell abroad. The committee found
values, just as was predicted that it would, by no less an
that the world price level was depressed, by certain nations
authority than Montagu Norman, of the Bank of England,
inadvertently and unintentionally or quite deliberately."
when he was called before the Hilton-Young Commission
What did the committee mean by that? It meant that some-
in London in 1926.
thing happened to the money of the world. Some of this
Mr. WHITE. Will the gentleman yield?
money was rubbed out, so to speak, thereby placing a greater
Mr. FIESINGER. Yes; I yield to the gentleman from
strain or duty upon the balance. How was that world
Idaho.
money rubbed out? Silver is a part of the world's money
Mr. WHITE. The gentleman said that England put
system. Silver has in many places a money use equivalent
India on a gold basis.
to gold. I do not mean in governments alone but in
Mr. FIESINGER. Yes.
thousands of corporations and not in silver-standard coun-
Mr. WHITE. Was that a gold-exchange basis?
tries alone, but also silver has a monetary use in certain
Mr. FIESINGER. It had been up to 1926 upon what is
gold-standard countries.
known as a gold-exchange basis; that is to say, its currency
And I know that when I mention the word " silver im-
was based on British pounds that were in turn based upon
mediately there comes into the mind of many: Well, he is
gold, but there was one step of pyramiding there.
going to talk Bryanism, 16 to 1. So, to give you an idea as
Mr. WHITE. In the operation of the gold-bullion basis,
to just what I mean, let me express it in the language of one
the Indian had to bring in $8,000 in gold to get redemption,
of the international bankers. This is a letter that he wrote
did he not?
to Senator BORAH in pamphlet form. I think probably all of
Mr. FIESINGER. I am not informed as to the exact de-
the Members of this House have received a copy of this
tails whether it was $4,000 or $8,000. It took quite a large
pamphlet. It is dated December 1, 1933:
transaction for gold to be delivered for currency. But the
In my first draft of my letter of November 28 to you I had
point I am making is this. The change gave the Bank of
included a paragraph on silver. I subsequently took it out be-
India a basis for canceling the silver rupee notes and re-
cause I was afraid that the mere mention of silver in a proposal
to modernize the gold standard would lead to an exaggerated
issuing the new notes. This released the silver bullion, and
stress being laid upon that feature of it. I agree with you that
when it was sold it destroyed billions of dollars' worth of
the stabilization in terms of gold of a metal that is used for
values in the silver money base of the world, and since silver
money by more than half of the world's population is a most
important element in achieving international monetary stability.
and gold are interchangeable, or, as Montagu Norman puts
it, since there is an interaction between gold and silver
Silver is a part of the world's monetary system, as Mr.
our banks got the pressure, our real-estate and security
Warburg says, but he hates to mention it, and I have been
values, and we now know how that was passed down the line
given the devil many times for mentioning it. Permit me
from one thing to another.
to say that I have no interest whatever in silver, and I do
Mr. WHITE. When such redemption is made, it is a
not know of any of my friends who have an interest in
fact, is it not, that the Indian gets gold bullion and not gold
silver. The first time I ever saw a silver mine was last
coin?
summer when I visited out in the State of Nevada with my
good friend, Governor Scrugham. He showed me a silver
Mr. FIESINGER. Exactly. I thought I said that they
mine, and I assure the Members of the House that I bought
were on the gold-bullion basis. The point I wish to make
no stock in the mine and that I have no interest in any
is that it was the sale of the silver from 65 cents to 25
silver mine or in silver. I have not bought any silver on
cents per ounce which put the corporations of Asia out of
the stock exchange with the idea that it would go to 75
silver and into gold or gold equivalents. You cannot destroy
cents an ounce, where some people seem to want it to go,
a part of the money base without increasing the pressure on
including our distinguished colleague from Maryland when
what is left. History has no other story to tell no matter
he said this afternoon that if you put silver in at 75 cents
how far back you may go.
an ounce it would be all right.
The value of the world's money base can be protected
I am speaking of silver in an entirely different way. I am
just as it can be upset and the purpose of this bill is to
looking upon silver as a master key to the prosperity of
afford that protection.
gold-standard countries.
If you will study this bill you will find that the struggle to
I was astonished when I awoke to the true understanding
corner, scramble for, and hoard gold would cease. The
of silver. The importance of this understanding of silver
world commodity price level would rise under the control
to the Members of this Congress cannot be exaggerated. And
Congress has set in this bill, profits would ensue instead of
the main criticism I have to the advocates of 16 to 1 silver
losses. Banks would open their doors to productive enter-
coinage is that they are blocking the road. They are con-
prise, labor would be employed to reconstruct the world
fusing the issue. They are proposing something that is so
in the new era, the farms of America would again help to
open to objection and so full of fallacies, if I may say so,
feed and clothe the world. Instead of going further in debt
that they are themselves obstructing silver legislation. Sil-
the farmer could pay his debt from his profits.
ver is the master key to depressions and an American plan
The gold standard, which has gone haywire would be
for using silver as sound money will place that master key
restored to a new and improved gold standard. It would
in the hands of this Nation. And 16 to 1 will not do it.
be brand new, not the old gold standard of the international
What is this relation to silver? After the war many of
bankers, but the gold standard of the people. It would be
the European nations debased their silver coinage. And
a standard fair to consumers and producers, debtors and
the British Government after hearing the report of the
creditors, with a stable purchasing power for the dollar for
Hilton Young Commission placed India upon a gold basis.
a generation, as advocated by the President. It would elim-
This gave a source from which they collected and placed
inate the necessity of managed currencies issued by foreign
upon the market quite a large quantity of silver. France
banking institutions, such as the Bank of England. or
performed a similar operation in Indo-China. The sale of
the necessity for a paper dollar tied by agreement to the
that silver had a definite effect upon the world's money base,
English paper currency. It would put sound money issued
1934
CONGRESSIONAL RECORD-HOUSE
233
by the United States in competition with foreign bank notes.
one upon which all other business depends. Farmers are the
We could stand this competition. We could regain our
only people in this country who produce the necessities of
market with it.
life. Many of the comforts and luxuries we could live with-
Those who want our things will pay a fair price, and they
out, but we have to have things to eat and wear, and they
will pay the price under this bill in terms of world wealth
are produced on the farm. When we assist agriculture we
and not in terms of artificial currencies. Let me emphasize
help all lines of business. Our farmers are the only business
this point. Our markets will bring us more wealth, not more
men who can continue to produce at less than cost. Farm-
dollars of lesser value which will not increase the real value
ers work as hard as ever, are honest and patriotic, and are
received.
entitled to a fair rate of profit upon the products of their
We have a lot of talk about currency experimentation
toil. They have worked faithfully along with our other citi-
through silver. You would get the impression through
zens for the success of our national recovery program.
sources that are half-informed that I would deal here with
I supported the Agricultural Adjustment Act in the last
the currency. That this bill would inflate the currency; that
Congress, and believe much good has resulted from the
this is silver inflation; or that it is currency inflation.
operation of that measure, but also believe that additional
That is not the correct picture. I propose, in this bill,
supplemental legislation should be enacted in order to have
not to deal with currency at all, but to deal with the mone-
complete recovery from this depression. January 15, 1932,
tary base. I would not deal in experimentation with this
I introduced H.R. 7797, known as " The Swank-Thomas cost
money base. I would stop experimentation. I would pro-
of production bill which is endorsed by the National Farm-
tect the full value monetary wealth of the world (gold and
ers' Union program and sponsored by that organization.
silver) from manipulation, and I would protect it by the
This bill, under no. H.R. 3208, was also introduced in
guarantee that this bill gives that it will be held stable
the first session of the present Congress, and I have intro-
in value and that it cannot any longer be subjected to the
duced the same bill, with some modifications, in the present
kind of action reported to Congress by our committee. This
session, no. H.R. 6165. This bill provides that it is
bill puts the United States Government as a sentinel, to
declared to be the policy of Congress to secure to farmers a
watch over, to guard, and to protect the money base from
price not less than cost of production, including a reasonable
manipulation of the international bankers of Europe.
profit, of any agricultural product which is needed for do-
And I say to the Congress that, if Congress will give the
mestic consumption. The Secretary of Agriculture is author-
world a sound and stable money base, it will then be pos-
ized and directed to make public the part of the domestic
sible for our Banking and Currency Committees to give us
production of any agricultural product needed for domestic
a sound and stable currency founded on this stable money
consumption. The bill provides that such portion shall be
base. The trouble with the world's national currencies is
sold at a price not less than cost of production, including a
they have been built up upon a foundation of sand, due to
reasonable profit, as determined by the Secretary of Agri-
the fluctuations of the purchasing power of the precious
culture. The surplus, if any, shall be exported, withheld
metals which constitute the world's money base. We need
from market, or otherwise disposed of, as directed by the
to restore to the world a sound and stable money base. This
Secretary of Agriculture.
bill aims to do it. If it will not do it, I will be indeed
The bill provides that the Secretary of Agriculture shall
thankful to any Member who will show me why not and in
license purchasers of agricultural products and provides that
what respect it will not.
no person shall carry on any business specified in the an-
We can build up the silver base to take the pressure off
nouncement unless he has obtained a license. The bill makes
of the gold base exactly as England and France have torn
it unlawful for any licensee to purchase that portion of any
down the silver base and thereby increased the pressure on
agricultural commodity needed for domestic consumption at
the gold base.
a price less than cost of production, including a reasonable
We are all familiar with the results of this thing. Now,
profit. The bill provides a penalty for violations of this
let us study the causes and the remedy proposed in this
provision. The bill permits an interchange or barter of
bill to cure these causes.
agricultural commodities among producers or others for
Mr. McFADDEN. Will the gentleman yield?
purposes of domestic consumption.
Mr. FIESINGER. Yes.
The Department of Agriculture states that the cost of pro-
Mr. McFADDEN. The gentleman has referred to de-
ducing cotton, wheat, corn, and oats for 1930, 1931, and 1932
monetization of silver in the Far East,
is as follows:
Mr. FIESINGER. Yes.
Mr. McFADDEN. Is the gentleman aware of the fact
Cotton
Wheat
Corn
Oats
that before demonetization took place it was a matter of
conferences between the heads of the central banks of the
Cents per
Cents per
Cents per
world and the head of the Federal Reserve Bank of New
pound
Per bushel
bushel
bushel
York, and that, undoubtedly, Dr. Sprague sat in those con-
1930
16.0
$1.09
89
54
1931
9.1
.81
61
42
ferences as the adviser of the head of the Federal Reserve
1932
9.0
.75
49
36
Bank of New York?
Mr. FIESINGER. I have no information about that, but
Mr. Speaker, I do not believe anyone will contend that the
that would be fairly inferrable from the finding of the
farmer is not entitled to the benefits provided in this bill.
committee.
Applause.
The measure does not provide that the farmer shall receive
[Here the gavel fell.]
only cost of production but it provides that he shall not
(Mr. FIESINGER asked and was given permission to revise
receive less than cost of production, including a reasonable
and extend his remarks in the RECORD.)
profit. If the market price is more, the farmer would receive
Mr. SWANK. Mr. Speaker, I ask unanimous consent to
that price for his products.
proceed for 10 minutes.
Mr. Speaker, I have had much experience in agriculture
The SPEAKER pro tempore (Mr. CLARK). Is there
and can figure cost of production. I believe any person who
objection to the request of the gentleman from Oklahoma?
will take the time to figure this cost and include everything
There was no objection.
that the farmer puts in his crops will soon see that the fig-
Mr. SWANK. Mr. Speaker, many times have I addressed
ures on cost of production, as given by the Department of
this House on the subject of agriculture and have always
Agriculture, are too low. These figures do not include any
supported all legislation for bettering conditions of our farm-
profit. In January 1932 the National Farmers' Union, Na-
ers and working people. Do what you will, build as you may,
tional Grange, and the American Farm Bureau Federation
but there can be no return to prosperity until agriculture is
all endorsed this cost-of-production provision. These organ-
rehabilitated. With a prosperous agriculture there is no
izations understand the farm problem.
depression and everybody enjoys that prosperity to which
I wish to call the attention of the House to what is known
they are entitled. Agriculture is our basic industry and the
as the Frazier bill H.R. 2855, introduced in the House by
No. 4-9
234
CONGRESSIONAL RECORD-HOUSE
JANUARY 8
the gentleman from North Dakota [Mr. LEMKE]. I filed a
But before I take up that subject, I want to call the atten-
motion in the first session of this Congress, which motion is
tion of the House to what the United States of America has
now on the Speaker's desk, to discharge the Committee on
been doing with reference to the purchase of American-
Agriculture from further consideration of the bill and to
made goods. It may interest you to know that the biggest
bring it before the House for consideration. This bill pro-
purchaser of foodstuff is the United States Panama Canal
vides that farm indebtedness and mortgages now existing
Commission, which supplies the Army and the Navy. It
may be liquidated and refinanced through real-estate mort-
might interest you to know that the Panama Canal Commis-
gages on the amortization plan at 1½-percent interest and
sion is one of the biggest merchants in the world. It sup-
1 ½/2-percent principal per annum, and through mortgages on
plies the ships going in through the Canal, the great cross-
livestock used for breeding or agricultural purposes at 3
roads of the commerce of the world.
percent per annum, through the Federal farm loan system
It may interest you to know that our Government has
and the Federal Reserve banking system. The bill provides
been selling Cuban beef to these ships that go through the
that the money shall be derived by the issuance of 1½-per-
Canal. Not only that, but we have been buying tons and
cent bonds which, if not sold, and they will not be sold at
tons of butter from New Zealand and Australia and selling it
that rate of interest, will be presented by the Federal Farm
on the Panama Canal Zone. We have been buying livestock
Loan Board to the Federal Reserve Board, as a basis for
and selling the beef to the ships that pass through. Not
issuing Federal Reserve notes or paper money to loan direct
only that, but there are 50,000 employees on the Canal Zone.
to the farmers. I understand that the legislatures of 20
There are in the neighborhood of 10 to 15 thousand sol-
States have passed resolutions asking Congress to enact this
diers and sailors there, and we are buying foreign goods
bill. All Members of the House who believe that the Frazier
and selling them to these people, soldiers, and sailors. I
bill would be of assistance in liquidating farm mortgages are
think you ought to know about it, I think the President
respectfully asked to sign the motion and bring the bill
should know about it, and I think the War Department and
before the House for consideration.
the State Department should know about it.
The National Farmers' Union, in convention in Omaha
Mr. COCHRAN of Missouri. Will the gentleman yield?
November 20, 21, 22, 1933, endorsed the Swank-Thomas bill,
Mr. SHOEMAKER. Certainly.
the Frazier bill, and the Wheeler bill, providing for the
Mr. COCHRAN of Missouri. Does not the gentleman
remonetization of silver. The legislative program of the
know that there is a law that prohibits that very thing?
Mr. SHOEMAKER. I am familiar with it, but I want to
National Grange says:
Justice and the national interest alike demand that all arbitrary
say that the law is not obeyed.
and artificial price boosting in industry must stop until farm
Mr. COCHRAN of Missouri. The law prohibits that very
prices are brought to an equality with industrial prices.
thing and requires the purchase of American goods.
The Agriculture Adjustment Act, approved May 12, 1933,
Mr. SHOEMAKER. But they are not doing it. When the
contained an amendment offered by Senator THOMAS of
international bankers were confronted with a critical situa-
Oklahoma, providing for the issuance of United States notes
tion in Cuba they went into Cuba and foreclosed on the beef
not to exceed $3,000,000,000. The amendment also gives the
cattle and sold them out-unloaded them on the United
President power to reduce by proclamation the gold content
States Government. -Not only that, but God, in His infinite
of the gold dollar by as much as 50 percent, and personally
wisdom, was kind enough to have one ship flounder and
I would like to see this provision put into effect, because we
several thousand dollars worth of these goods went over-
need a greater amount of money in actual circulation among
board.
our people. I believe that the remonetization of silver will
Another thing that you ought to know about are the con-
be one of the greatest boons to agriculture and to recovery
ditions that exist down there on the Canal Zone. They are
in general. This would greatly increase our export trade
conditions which ought not to exist.
with foreign countries and therefore assist in bringing about
Ladies and gentlemen, do you know that the United States
better prices for agriculture.
of America has practically not one friend among the Pan-
Mr. Speaker, in times of depression agriculture is the
amanian people, a people whose friendship we should encour-
first business hit and is usually the last to recover. This
age, a people who in time of war would be our greatest asset,
administration has gone further in granting relief to agri-
a people who should have the very greatest confidence in the
culture and on the question of inflation of our money system
United States of America. Yet as a people they have no
than any other administration, and has done more for
confidence in the United States. I do not know whether
the common people of our country. While we all have our
you gentlemen know it, but for over 20 years the Pana-
individual views, we must remember that there is more
manian Government has plead, has sought, has beseeched
than one road to town. I believe the President of the United
America under the treaty to allow the Panama Government
States is doing his utmost to take our Government from the
to build a highway across the Isthmus of Panama, not on
hands of the selfish interests and restore it to the people.
the Canal Zone, which is leased and operated by the United
None of these bills are perfect and they will doubtless need
States of America, but upon their own property, and they
amendments. I believe the enactment into law of the
have been refused that request. They have been denied that
Swank-Thomas bill, the Frazier bill, remonetization of
request. They have started work. They have even gone so
silver, and the Thomas amendment to the Agricultural
far, in order to get some means of transportation, as to put
Adjustment Act, in connection with the acts now in force,
in a barge line from Pedro Miguel Locks to Gatun Lock, to
will soon bring us to a complete recovery. [Applause.]
haul freight, and they were absolutely put off Lake Gatun
(Mr. SWANK asked and was given permission to revise and
and denied the right to use their own lake on their own
extend his remarks in the RECORD.)
property outside of the Canal Zone for commercial purposes.
Mr. SHOEMAKER. Mr. Speaker, I, ask unanimous con-
Mr. MOTT. Mr. Speaker, will the gentleman yield?
sent to address the House for 30 minutes.
Mr. SHOEMAKER. Yes.
The SPEAKER pro tempore. Is there objection to the
Mr. MOTT. Will the gentleman tell us what jurisdiction
request of the gentleman from Minnesota?
the United States Government has to prohibit the Pan-
There was no objection.
amanians from building a road across the Isthmus outside
Mr. SHOEMAKER. Mr. Speaker, ladies and gentlemen
the Canal Zone?
of the House, we have heard a lot of talk today about money
Mr. SHOEMAKER. Yes; I can.
in the hands of the people. Personally, I have not any, and
Mr. MOTT. What is it?
that is one reason for the poverty I am in.
Mr. SHOEMAKER. The arrogance of the Department
I am going to talk about several things that the House
down there that has told them they could not do it.
should be familiar with and know about. I am going to talk
Mr. MOTT. What difference would it make if the Depart-
about imperialism in Latin America, not by Great Britain in
ment did tell them so? I ask the gentleman what jurisdic-
India or Japan in China, but our own imperialism in Latin
tion the United States Government has over the Panama
America that the people should be familiarized with.
Republic, so far as building that road is concerned.
1934
CONGRESSIONAL RECORD-HOUSE
235
Mr. SHOEMAKER. Under a treaty between the United
Mr. MOTT. I think Congress would be very much inter-
States and the Republic of Panama, Panama is forever kept
ested in having the documentary evidence to that effect.
from having an army or armed forces. They can have no
Mr. SHOEMAKER. That is why I am making this speech
more than a police force, and that must be limited to 1
now, in the hope that they will get it.
man for every 30 inhabitants of an incorporated city, and
The greatest landowner of the Republic of Panama is
the Panamanian people are not in a position to face the
the United States Government. The United States Gov-
bayonets of the United States marines and build a road
ernment owns the city of Colon, Panama. It receives rental
such as they want.
from every foot of ground in that city, and the real estate
Mr. MOTT. The gentleman has not answered my ques-
thereon at the expiration of the leases reverts to the United
tion. I asked him what jurisdiction the United States would
States Government, or to the Panama Railroad Co., its
have to prohibit the Panama Government from building
subsidiary.
a road across the Isthmus in the territory of the Panama
It might interest you to know that Panama has no land-
Republic outside of the Canal Zone, and I ask the gentle-
tax law, and the Senate of Panama refuses to tax its own
man if he is stating to the House that the United States
citizenship a land tax on their farms and their agricultural
Government did prohibit the Panamanians from doing
pursuits so long as the greatest landowner in the Republic
that?
pays no taxes to the Panamanian Government. That is, the
Mr. SHOEMAKER. They did prohibit them from build-
United States of America, which owns the city of Colon.
ing the road, and I will tell you what authority they had.
Not only that, but to show the arrogance that has been
Under the old grant given to the Panama Railroad in the
exercised on the Canal, the United States .of America
early days, before the days the French tried to dig the
pumped the bottom out of the sea in Colon Harbor and
Canal, the Colombian Government granted that road when
built up a territory, on Panamanian soil, in the Canal Zone,
it was built the exclusive right to transfer freight and ma-
known as New Cristobal when it had a strip of land
terials back and forth across the Isthmus. Under the old
10 miles wide, beautiful locations for home sites for em-
charter they are saying that if the Panamanians build a
ployees, and so forth. This shut off the view of the Pana-
wagon road across the Isthmus of Panama it will take busi-
manians who lived in Colon.
ness away from the railroad company, which is owned by
In addition to that, this Congress appropriated $720,000
the United States Government. Does that answer the ques-
to build a high school for the children of the employees in
tion?
the Panama Canal Zone. United States Government officials
Mr. MOTT. It does not. I am asking the gentleman how
in charge, took that $720,000 and built a high school upon
the United States Government can prohibit the Pana-
the soil and territory of the Republic of Panama. When this
manians from building a highway across the Isthmus, not
school was completed, this is what happened: They put the
in the Canal Zone but in the territory of the Panama Gov-
American flag up on the high school. It made the Pana-
ernment.
manians SO irate that they organized a vigilante committee
Mr. SHOEMAKER. The same jurisdiction under which
of patriotic Panamanians and they went and tore down the
they stepped into Nicaragua and into Santo Domingo and
United States flag from the schoolhouse, which was built in
Haiti and every other country in their imperialistic way
the Republic of Panama, and in which the Republic of
and told those people of Latin America what they wanted
Panama children were denied the right to use the school.
and what they must do, for American capitalists.
In addition to that, it might interest you to know that
Mr. MOTT. I don't think the gentleman has answered
the women of the Canal Zone have been putting up a ter-
my question, and I am inclined to doubt whether the Gov-
rible fight in Panama because of the moral conditions
ernment of the United States ever issued such an order
which exist there. It might interest you ladies and gentle-
or attempted to prohibit the building of such roads outside
men to know that the United States of America is the owner
the Canal Zone.
of the land and is leasing blocks and blocks of land in the
Mr. SHOEMAKER. I am authorized to say here this
city of Colon, upon which brothels are built, and running
afternoon at the behest of several members of the Pana-
openly in defiance of all moral law and human decency.
manian Cabinet, the President's Cabinet, that there lies
The United States Government each month is collecting
earmarked in the Bank of Panama $1,000,000 which has
money and revenue from the sale of womanhood in the city
been appropriated and set aside for the purpose of building
of Colon.
a road from Gatun Lock to Madden Dam by the Govern-
Here is another thing that possibly some of you people do
ment of Panama and that if that money is not put to
not know, and that is that the United States Federal law
use within the next 30 days another rainy season will be
down on the Isthmus, in the Canal Zone, provides for an age
on and the people of Panama will be forced to use that
of consent of 13 years. The age of consent down there is
money to feed their poor, and they have offered to the
13 years. It was only a short time ago that an officer, a
United States Government that they will build the road
policeman, a United States Government policeman, holding
according to the surveys already made by the United States
the same jurisdiction as a policeman in the District of Co-
Army engineers and will give the United States Govern-
lumbia, attacked a girl 13 years of age. He was about to be
ment full privilege and right to use that road any time
tried for rape, and I say to you that when the court came
for military or other activities in behalf of the United
into session he proved the girl was 2 months over the age of
States of America.
13, and so the charge of rape was dismissed, and a charge of
Mr. MOTT. The gentleman is talking about territory in
adultery was brought in and a small fine was levied by the
the Canal Zone. Gatun Dam and Madden Dam are both
court.
in the Canal Zone. I am talking about a road across the
It is almost time this Congress raised the age of consent
Isthmus of Panama in the Republic of Panama.
above 13 years on United States Government property.
Mr. SHOEMAKER. There are 24 miles left to be built
Here is another situation: We appropriated in this coun-
that can be built, which is partly on Panama territory and
try, through our Recovery Act, between 6 and 7 mil-
partly on Canal Zone territory, which they offer to the
lion dollars for the purpose of eliminating some of the
United States Government, and have $1,000,000 appropri-
unemployment down in the Canal Zone. It might interest
ated to do it, but they have been refused the right to
this Congress to know that from 85 to 95 percent of that
build that road.
money is being paid out to British subjects who are aliens,
Mr. MOTT. That refusal is a very different thing than
not citizens of the United States in any sense of the term.
the refusal to build a road across the Isthmus in Pana-
This money is being paid out to them, and practically the
manian territory.
only Americans receiving any of this mòney are the super-
Mr. SHOEMAKER. They have also refused them to build
visors and foremen in the construction of the projects down
a road across the Isthmus on their own territory and on
in the Canal Zone and the Army barracks and things sup-
their own lands, because of that old franchise given to the
plementary thereto. These people are Jamaicans and Ba-
Panama Railroad Co. almost a hundred years ago.
hamians and citizens of Barbados, who are British subjects,
236
CONGRESSIONAL RECORD-HOUSE
JANUARY 8
brought over there, and therein lies another bone of con-
Mr. SHOEMAKER. If that road were built, it would be,
tention so far as the United States and the Government of
from a defense standpoint, one of our greatest assets, as
Panama is concerned. The United States Government has
has been testified to by members of the United States Army
imported these Jamaican colored men to come in there from
Engineers.
the day the Canal started, and also Martiniques. They have
Mr. BROWN of Kentucky. Could it not be used just as
come there and they have worked for the United States
easily as a means of offense?
Government. As soon as they are through with those em-
Mr. SHOEMAKER. They have got to get it first. Our
ployees they tell them, We do not want you any more.
Army is there on the ground however. The Panamanians
You have to get off the Canal Zone." The outcome is that
want this road and are ready to start its construction.
those people who no longer have work on the Canal Zone
Mr. BROWN of Kentucky. But the gentleman just said
are forced out of the Canal Zone, and they flock into the
they were all against us.
cities of Colon and Cristobal, in the Republic of Panama,
Mr. SHOEMAKER. Just a minute. I should like to
and they are a serious problem for the Republic of, Panama,
make that offer
because they are then upon their charity lists.
Mr. BROWN of Kentucky. That we are going to let them
They are not citizens of either the United States or of
build that road?
Panama; but the United States Government simply orders
Mr. SHOEMAKER. Yes; and show toward that people
them outside of the Canal Zone, and the Panamanian
some little, decent courtesies instead of stepping on their
authorities have them on their hands. Fifty percent of the
necks.
inmates of the insane asylums of the Republic of Panama
I may say that several years ago a so-called " treaty " was
are Jamaicans and Barbadosians who worked on the Canal
prepared and handed to the Panamanian Senate with the
in the Canal Zone, but who are not citizens of Panama.
thought they were going to railroad it through, but a Pan-
They are thrown upon the Government of Panama for sup-
amanian senator, Hermondo Arias, now President of the
port after the United States of America has cast them out.
Republic of Panama, was the sole individual who stood up on
the floor of the Senate of Panama and defeated that treaty.
Panama has made an arrangement with the British Gov-
Furthermore, I may say that that treaty so embittered the
ernment whereby the British Government says to Panama,
Panamanians toward the United States Government, be-
" If you will prove to us that the mother of such-and-such a
child is of Jamaican descent or Barbadosian descent, we will
cause it included a provision that in case of war the United
States Government should have the power to draft and
let you send them back; but you must land them in Jamaica,
induct any Panamanian into the United States Army in
in Kingston, or in Barbados with $10."
defense of the Panama Canal-this engendered such hatred
The Panamanian Government has asked the United
against the American people that the Panama Government
States Government on several occasions for $150,000 to help
upon six occasions has tried to take a census of their repub-
their own government defray the expenses of sending these
lic, but the people are so afraid of the taking of a census
aliens to the countries where they belong so they will not be
that when the Government sends anyone with census papers
public charges, but they have been turned down on that
to fill in the Panamanians absolutely will not say a word or
repeatedly.
answer a question for fear that if they sign their names to
Now, this is the situation that exists, a situation which
that or give such information they are to be inducted into
confronts the American people. While we talk about the
the United States military forces.
action of Great Britain in India, or Japan in China, of the
This is the condition that exists down there. I say it is
Belgians in the Congo, and various other national relation-
wrong. I am calling it to the attention of this House be-
ships, we are allowing to grow up and become established a
cause I feel the Members want to know about it, and I feel
condition, a situation, that actually exists in Central America
that something should be done about it. Here is a great
which makes practically every nation on the face of the
people, the Panamanian people. I know them. I have been
earth point the finger of shame toward us, and ask what
down there. I helped dig that little ditch called the Panama
right the United States has to talk about the suppression of
Canal. I worked down there. I rubbed elbows with these
inferior peoples, the sacred rights of smaller nations, and so
people, and I know they are fine people. I know if they
forth, and SO on.
were given any kind of consideration at all as being hu-
Now, Mr. Speaker, the question is how long will Con-
mans, you might say, we could develop a friendship and
gress allow this thing to exist?
build a cooperation and coordination with the Government
I made a statement to the press upon my return from
and the Army, which we are going to need eventually,
Panama several weeks ago, and immediately the War De-
because there are very important strategical points in the
partment and the State Department came out with a denial,
Panama Canal, in Gatum Dam, in the Panama Railroad,
saying that the Panamanians could build a road across that
and various other places, where one bomb would put the
Isthmus if they wished. I challenge right now either the
railroad or the canal out of business for transporting our
War Department or the State Department to make that a
Army or Navy back and forth across this isthmus. Just
public, official statement, signed by their officials, and send
one bomb exploded on that railroad where it goes through
it to the President of Panama. If they will do so, I can
Gatun Lake for miles and miles on a narrow roadbed
assure them this road will be started within the next 10
would absolutely cripple the canal. So I say that the big-
days, will be under construction, and Panama will be able
gest thing the United States' could have would be a road
to put its unemployed citizens to work and spread out that
across Panama over which they could transport their equip-
$1,000,000 entirely to the benefit of Panamanians and use
ment and supplies, and so forth, in defense of our interests
it toward opening a vast territory which is now absolutely
in that canal.
untapped so far as means of transportation are concerned.
Mr. BROWN of Kentucky. Mr. Speaker, will the gentle-
It will put this money to constructive work; and the United
man yield right there?
States of America and its armed forces, whether in time of
Mr. SHOEMAKER. I yield.
war or in time of peace, will have full use of this highway
Mr. BROWN of Kentucky. Was it to Gatun Lake they
from coast to coast.
wanted to run this highway of which the gentleman spoke?
Mr. BROWN of Kentucky. Mr. Speaker, will the gentle-
Mr. SHOEMAKER. Yes.
man yield?
Mr. BROWN of Kentucky. And the gentleman says one
Mr. SHOEMAKER. For a question; yes.
bomb thrown over into the lake would wreck the whole
Mr. BROWN of Kentucky. Is the gentleman in favor of
Panama Canal?
allowing foreign countries to build highways running into
Mr. SHOEMAKER. Absolutely, so far as the transporta-
and across the Panama Canal, highways which can as
tion system is concerned.
easily be used to transport foreign cannon or other war-
Mr. BROWN of Kentucky. What is to hinder an enemy
making devices as automobiles, and used against our
from traveling this road in a high-powered car and drop-
interests?
ping a bomb from the car?
1934
CONGRESSIONAL RECORD-HOUSE
237
Mr. SHOEMAKER. The road would be controlled. Does
Mr. COCHRAN of Missouri. Mr. Speaker, I ask unani-
the gentleman know anything of the topography of that
mous consent to proceed for 5 minutes.
country?
The SPEAKER pro tempore. Is there objection to the
Mr. BROWN of Kentucky. I was not down there this
request of the gentleman from Missouri?
summer.
There was no objection.
Mr. SHOEMAKER. That is why the gentleman asked the
Mr. COCHRAN of Missouri. Mr. Speaker, I have just had
question.
an opportunity to read-rather hurriedly, I admit-an ad-
Mr. BROWN of Kentucky. I would like to know if it is
vance copy of the annual report of the Postmaster General.
not true that were such a highway built an enemy of the
While this was a confidential advance copy, nevertheless it
Government could drive over it in one of these 90-mile-an-
is subject to release today. Therefore in referring to it I am
hour automobiles and drop a bomb over the side of the car?
not violating the release provisions.
Mr. SHOEMAKER. I want the gentleman from Kentucky
I note with a great deal of interest that the Postmaster
[Mr. BROWN] to know that the lay of the country down there
General makes a recommendation for additional legislation
makes it impossible to build a road anywhere along that
which will subject persons robbing, or attempting to rob,
canal that is not 4 or 5 miles back from Gatun Lake or back
custodians of Government funds to the same penalties now
from the railroad. This happens to be true because of the
provided for attacks upon the mails. I agree that such legis-
topography of the country. They are not going to build any
lation is necessary, and will introduce the bill he suggests.
road right along the edge of the canal, because that would
The fact that there has been an increase of almost 600 per-
be impossible, and that would be just as dangerous with re-
cent upon the units of the Postal Service which handle Gov-
spect to being blown up as the present railroad or the dam
ernment moneys justifies this recommendation. These at-
or one of the locks.
tacks in the main are instigated by gangsters who, of course,
It may also interest you to know that at one point there
are not employees of the Postal Service.
is a grade built across a ravine to hold the water in Gatun
I am rather astonished, however, to fail to find any recom-
Lake, and this holds the lake level up to 87½ feet, and sev-
mendation in the report to curb the racket of fourth-class
eral years ago a British syndicate came in there under the
postmasters who have been robbing the Government for a
ruse of a mining concession and received a concession from
good many years.
the Panama Government, and they now hold possession of
There are 33,000 fourth-class postmasters in this country.
that piece of land where just one little bomb would empty
The great majority of these men and women are honest pub-
Gatun Lake and put its waters into the Atlantic Ocean in
lic officials, obeying the law and regulations to the letter, but
less time than you could tell about it.
there are thousands who, by the use of petty methods, have
robbed the Government.
Mr. BROWN of Kentucky. Did I understand the gentle-
man to say that this is going to be a north and south road?
Shortly after the present Postmaster General assumed
office I called his attention to these nefarious practices. I
Mr. SHOEMAKER. It is going to be a road across the
had several conferences with the officials and finally suc-
Isthmus; yes.
ceeded in getting an investigation started, which I hope has
Mr. BROWN of Kentucky. A north and south road?
resulted in a discontinuance of the practices of which I
Mr. SHOEMAKER. Yes; the canal runs north and south.
complained.
Mr. BROWN of Kentucky. If the road is 5 miles away,
The fourth-class office is an expensive one to the Postal
how is it going to cross the canal?
Service, and assists materially in enlarging the deficit which
Mr. SHOEMAKER. The road will run parallel and not
the Postmaster General refers to in his report. This is be-
cross the canal.
cause Congress has not for over 50 years changed the method
That is by reason of the way the mountains zigzag over
of paying the fourth-class postmaster. Under existing con-
into the 10-mile zone.
ditions the fourth-class postmaster is paid upon the basis
Mr. BROWN of Kentucky. It is going to be a north-and-
of cancellations of stamps at his office, plus money he re-
south road and never strike the Panama Canal?
ceives for rent of boxes, issuing money orders, and so forth.
Mr. SHOEMAKER. Yes; and I want to inform the gen-
The Department officials themselves are responsible for the
tleman from Kentucky that never in the history of the
statement that for every $100 in stamps canceled at fourth-
relations between the United States and Panama has the
class offices it costs the Government $140 in salary. On top
Panama Government ever refused to grant one request of
of this be it remembered the Government must also pay to
the United States.
carry the mail to its destination.
At the present time the United States of America is build-
In other words, during the last fiscal year according to
ing a large dam and reservoir, called Madden Dam in the
figures I received from the Department, $19,450,000 was
Chagres River, which is on Panama territory. A road has
paid to fourth-class postmasters, and the total cancelation
been built from Panama City to this dam to aid in its con-
of stamps was $10,500,000. Here we paid nearly $9,000,000
struction, and the road is built mostly upon land belonging
above the amount of stamps sold for the privilege of de-
to the Republic of Panama, and I think we might very well
livering at additional cost $10,500,000 in mail matter. Sev-
go as far as the Republic of Panama in at least being half-
eral thousand rural postmasters engaged in these rackets
way decent and halfway civilized.
I complained of were investigated by postal inspectors.
It might also interest Congress to know that every nation
The irregularities charged to the postmasters whose rec-
in the world is permitted to ship goods through the Panama
ords were scrutinized include such practices as sending heavy
Canal except Panama. The United States Government will
packages of merchandise and even bricks and boards by
not allow a Panamanian ship loaded at David on the west
parcel post as a means of increasing their income from
coast of Panama to go through the canal and deliver its
cancelations of stamps. Before the investigation is com-
cargo to Porto Bello on the east coast. Intercoastal traffic
pleted it is expected that many prosecutions and a large
has been blocked entirely. How long shall we continue to
number of dismissals will result. This investigation has
discriminate against a small nation in this manner? How
been under way in all sections of the country for the last
long will Congress tolerate these conditions? How long will
several months. It is also expected many fourth-class offices
we continue to furnish evidence of imperialism on our own
will be discontinued and other arrangements made for
part to be used by other nations against us? These are
handling mail.
important issues that must be met by the American Congress
Fourth-class postmasters, most of whom are in small
some day. Let us clear up these injustices right now, so we
villages, receive 160 percent on the first $75 of postage they
will not be compelled to bow our heads in shame before the
cancel, 85 percent on the next $100, and 75 percent on all in
finger of accusation at the hands of other nations. Let us
excess of $175. To this compensation are added the rental
act now. [Applause.]
of post-office boxes, and an allowance of 15 percent for
(Mr. SHOEMAKER asked and was given permission to revise
rent, light, fuel, and equipment. They also receive a com-
and extend his remarks in the RECORD.)
mission of 3 cents each on all the money orders they issue.
238
CONGRESSIONAL RECORD-HOUSE
JANUARY 8
This method of compensating these rural postmasters
handle. These fourth-class post offices should in many cases
prompts them to use various devices to increase cancelations.
be abolished, and what is known as rural stations should be
As I said, the more stamps they cancel, the greater their
substituted for them. Proprietors of stores in small com-
gains.
munities are eager to serve as postmasters. They know that
Inspectors assigned to the investigation by Postmaster
many persons who visit the post office are also potential
General Farley reported that postmasters invented many
buyers of merchandise from the store.
schemes by which to swell their fees for cancelations.
Revision of the pay of such postmasters and correction
With this purpose some of them have mailed bricks,
of the questionable practices of many of them would un-
gravel, oyster shells, milk, cream, walnuts, and other bulky
doubtedly prevent or greatly reduce the loss at present
but worthless articles. In general these packages were sent
incurred by the Government in handling of mail in the
by parcel post to relatives of the postmasters. One post-
fourth-class offices.
master wrote notes on pieces of board and sent them to a
I need hardly repeat that the large majority of post-
member of his family. Others who conducted stores sell
masters. of whatever grade are honest and faithful public
groceries to their relatives and friends in other localities
servants. The records of the past and the developments in
and by affixing sufficient postage on the bags and boxes
the investigation now in progress emphasize this fact. But
insured their delivery by the rural arrier in his neighbor-
the system is defective and grossly expensive, and should be
hood. He not only received profit on his sales but also
abandoned. It happens also to be a grave temptation to
received from the Government the amount of stamps placed
many men and women who administer it in the fourth-class
on the packages, plus the usual percent.
post offices. The Postmaster General's investigation, when
So eager are some postmasters to enlarge their commis-
complete, will unquestionably reveal the necessity for a quick
sions that they put stamps on the letters they write to the
and thorough reformation.
Post Office Department, although franked envelops are sup-
For many years prior to 1877 the fourth-class postmasters
plied to them for use in official correspondence. Why?
were paid in proportion to the stamps they sold. In örder
Because they receive the amount of postage used.
to increase their earnings many postmasters disposed of
I began my inquiry many months ago, after my attention
stamps at a discount in large cities, knowing that they
had been directed to some of the sort-of abuses I have de-
would be fully reimbursed in the higher pay they would
scribed. Within 1 week I found that about 200 postmasters
receive in consequence of heavier sales. The report of the
in Missouri and Illinois were shipping eggs to St. Louis by
Third Assistant Postmaster General in 1878 exposed this
parcel post. These shipments comprised from 2 to 30 cases.
malfeasance and the law was changed.
In some instances postmasters sent cases of eggs by parcel
The taxpayer cannot be expected to remain silent when
post from Missouri to New York City. The charge for postage
he knows that postmasters have shipped by parcel post bun-
on these eggs was about $3. They could have been shipped
dles of ordinary kindling wood costing in some instances
by express for half that amount and by freight at still less
40 cents to mail when the wood disposed of sells for 5 or
cost. It cost the postmaster nothing to ship to New York,
10 cents when it reaches its destination.
but on the contrary he received the amount of stamps used.
It is hard for one to conceive that a postmaster would
If a postmaster were to ship enough eggs by parcel post
ship oyster shells, bricks, produce of every kind, especially
to require $75 in postage, he would not only not lose by the
perishable vegetables, by parcel post, paying postage far in
transaction but would instead receive back the full amount
excess of the value of the shipment, but the investigation
he paid for stamps and $45 besides.
of the post-office inspectors discloses this to be a fact.
I presented to Mr. Farley and Mr. Joseph C. O'Mahoney,
While I was talking with a post-office official about this
former First Assistant Postmaster General, the facts I gath-
matter a letter was brought to his desk. It was an official
ered. They at once instituted a Nation-wide investigation.
letter from a fourth-class postmaster, who had placed a
This inquiry has already corrected abuses in many places
stamp over the frank which would have carried the letter
and will undoubtedly in the end result in a discontinuance of
without postage. The official informed me that some of
such practices. Mr. Farley and Mr. O'Mahoney had an
them even register an ordinary letter. Postmaster General
opportunity to see the nature and the extent of this
Farley has inherited this situation, and I am sure he is going
racket." For instance, they found that postmasters in
to cure it. From my conversation with post-office officials
Kentucky and West Virginia were using the parcel post to
I was convinced that an honest return from a fourth-class
transport cases of eggs from their communities to Washing-
postmaster should always be below the amount of stamps
ton, Baltimore, and New York. The mail charges averaged
actually sold at the station, but it was disclosed that the
$1.50 or more a case and were naturally very much higher
report of cancelation generally equals the sales and in some
than would have been the expense of shipping them by ex-
instances exceed the sales.
press. The principal purpose in mailing them at all was to
Last September the Postmaster General referred briefly
benefit the postmaster in dollars and cents while the Gov-
to this matter in a speech before a postmasters' convention
ernment took the burden. Is there any wonder we have a
at Rochester. He said then that legislation would be recom-
postal deficit?
mended to curb the evil; but as it does not appear in his
There were 33,528 fourth-class postmasters on July 1 this
annual report, I will request that the necessary legislation
be submitted to me so I can introduce the bill. I propose
year.
In an attempt to secure definite information as to the
to prepare an amendment in the form of a limitation to be
volume of business and the amount paid fourth-class post-
offered when the appropriation bill is before the House
masters I called for statistics from the Post Office Depart-
which will prevent the use of any money appropriated for
ment. I quote from one report. This is on the fiscal year
the payment of salaries to fourth-class postmasters who
ended July 1, 1933:
send through the mail any matter that they would not send
if they were not holding the position of postmaster. [Ap-
To sum up the situation, we estimate that the total payments
at fourth-class offices for all purposes, including compensation to
plause.]
postmasters, mail-messenger service, special-delivery fees, and sep-
(Mr. COCHRAN of Missouri asked and was given permission
arating mail allowance, was a total of $19,450,000, and these pay-
to revise and extend his remarks in the RECORD.)
ments were made on total cancelations estimated to have been
$10,500,000.
MESSAGES FROM THE PRESIDENT OF THE UNITED STATES
NINTH PHILIPPINE LEGISLATURE
Phrased otherwise, the Government spent all the revenue
it derived from these post offices and nearly nine millions
The SPEAKER laid before the House the following mes-
besides to pay the postmasters. Over and above this outlay
sage from the President, which was read, and, with the
for handling the mail at these rural offices, the Government
accompanying papers, referred to the Committee on Insular
was compelled to assume the cost of carrying it to and from
Affairs:
them.
To the Congress of the United States:
It is time to change the law fixing the pay of these fourth-
As required by section 19 of the act of Congress approved
class postmasters. They should receive salaries graduated
August 29, 1916, entitled "An act to declare the purpose of
in amount to correspond with the volume of business they
the people of the United States as to the future political
1934
CONGRESSIONAL RECORD-HOUSE
239
status of the people of the Philippine Islands, and to provide
read, and, with the accompanying papers, referred to the
a more autonomous government for those islands I trans-
Committee on Insular Affairs and ordered printed:
mit herewith a set of the laws and resolutions enacted by the
To the Congress of the United States:
Ninth Philippine Legislature during its second special ses-
I transmit herewith for your information a copy of Con-
sion, January 16-31, 1933.
current Resolution No. 46, adopted October 17, 1933, by the
FRANKLIN D. ROOSEVELT.
Ninth Philippine Legislature during its third session,
THE WHITE HOUSE, January 8, 1934.
entitled Concurrent resolution informing the Congress of
TWELFTH LEGISLATURE OF PUERTO RICO
the United States that the Philippine Legislature, in its own
The SPEAKER also laid before the House the following
name and in that of the Filipino people, declines to accept
message of the President of the United States, which was
the act of Congress, entitled 'An act. to enable the people of
read, and, with the accompanying papers, referred to the
the Philippine Islands to adopt a constitution and form a
Committee on Insular Affairs:
government for the Philippine Islands, to provide for the
To the Congress of the United States:
independence of the same, and for other purposes in its
As required by section 23 of the act of Congress approved
present form and appointing a committee to proceed to the
March 2, 1917, entitled "An act to provide a civil government
United States at the earliest practicable time to seek amend-
for Porto Rico, and for other purposes I transmit herewith
ments to said act of Congress, or the enactment of such new
certified copies of two volumes of laws enacted by the Twelfth
legislation as will fully satisfy the aspirations of the Filipino
Legislature of Puerto Rico during its fourth and fifth special
people to become at the earliest practicable date a free and
sessions, October 18-21 and November 11-16, 1932, respec-
independent nation, under conditions and circumstances
tively, and by the Thirteenth Legislature of Puerto Rico
that will not imperil the political, social, and economic
during its first regular session, February 13 to April 15, 1933,
stability of their country."
and its first special session, August 1-14, 1933.
FRANKLIN D. ROOSEVELT.
FRANKLIN D. ROOSEVELT.
THE WHITE HOUSE, January 8, 1934.
THE WHITE HOUSE, January 8, 1934.
REPORT OF GOVERNOR OF PUERTO RICO
CONSTRUCTION OF HIGHWAY IN NORTHWESTERN PART OF THE
The SPEAKER also laid before the House the following
UNITED STATES WITH BRITISH COLUMBIA, THE YUKON TERRI-
message from the President of the United States, which was
TORY, AND ALASKA (H.DOC. NO. 212)
read and, with the accompanying papers, referred to the
The SPEAKER laid before the House the following mes-
Committee on Insular Affairs:
sage from the President of the United States, which was
read, and, with the accompanying papers, referred to the
To the Congress of the United States:
Committee on Roads and ordered printed:
As required by section 12 of the act of Congress of March
2, 1917, entitled "An act to provide a civil government for
To the Congress of the United States:
Porto Rico, and for other purposes", I transmit herewith
I transmit herewith the report made by the American
for the information of the Congress the Thirty-third An-
commissioners appointed according to an act of Congress
nual Report of the Governor of Puerto Rico for the fiscal
approved May 15, 1930. The act provided for their coop-
year ended June 30, 1933.
eration with Canadian representatives in a study regarding
This report contains valuable information which it is
construction of a highway to connect the northwestern part
believed should be available in permanent form. It has
of the United States with British Columbia, the Yukon ter-
heretofore been customary for the President- recommend
ritory, and Alaska. The work of the commission having
to the Congress the printing of the annual report of the Gov-
been completed, its existence has been terminated.
ernor of Puerto Rico, the cost of such printing being charged
FRANKLIN D. ROOSEVELT.
against War Department appropriations. In the present
Enclosure: Report.
case, however, due to special conditions not ordinarily ob-
THE WHITE HOUSE, January 8, 1934.
taining, the Government of Puerto Rico has arranged to
PUBLIC SERVICE COMMISSION OF PUERTO RICO
make available to the War Department a number of printed
The SPEAKER also laid before the House the following
copies of the enclosed report, sufficient to meet the minimum
message from the President of the United States, which was
needs of. the Federal executive departments and also to
read, and, with the accompanying papers, referred to the
supply a limited number of copies for the requirements of
Committee on Insular Affairs and ordered printed:
the Congress. In view of these facts and of the urgent need
To the Congress of the United States:
of effecting exceptional economies at this time, the cus-
As required by section 38 of the act of Congress approved
tomary recommendation for the printing of the annual re-
March 2, 1917, entitled "An act to provide a civil govern-
port of the Governor of Puerto Rico is omitted.
ment for Porto Rico, and for other purposes" I transmit
FRANKLIN D. ROOSEVELT.
herewith certified copies of each of three franchises granted
THE WHITE HOUSE, January 8, 1934.
by the Public Service Commission of Puerto Rico. The
PERRY'S VICTORY MEMORIAL COMMISSION (H.DOC. NO. 211)
franchises are described in the accompanying letter from
The SPEAKER also laid before the House the following
the Secretary of War transmitting them to me.
message from the President of the United States, which was
FRANKLIN D. ROOSEVELT.
read, and, with the accompanying papers, referred to the
THE WHITE HOUSE, January 8, 1934.
Committee on the Library, and ordered printed:
CIVIL SERVICE COMMISSION
To the Congress of the United States:
The SPEAKER also laid before the House the following
I transmit herewith for the information of the Congress
message from the President of the United States which was
the Fourteenth Annual Report of the Perry's Victory Memo-
read, and, with the accompanying papers, referred to the
rial Commission for the year ended December 1, 1933.
Committee on the Civil Service:
FRANKLIN D. ROOSEVELT.
To the Congress of the United States:
THE WHITE HOUSE, January 8, 1934.
As required by the act of Congress to regulate and im-
prove the Civil Service of the United States, approved Jan-
ARLINGTON MEMORIAL AMPHITHEATER
uary 16, 1883, I transmit herewith the Fiftieth Annual
The SPEAKER also laid before the House the following
Report of the United States Civil Service Commission for
message from the President of the United States, which was
the fiscal year ended June 30, 1933.
read, and, with the accompanying papers, referred to the
FRANKLIN D. ROOSEVELT.
Committee on Public Buildings and Grounds:
THE WHITE HOUSE, January 8, 1934.
To the Congress of the United States:
PHILIPPINE INDEPENDENCE (H.DOC. NO. 209)
In compliance with the requirements of the act of Con-
The SPEAKER also laid before the House the following
gress of March 4, 1921, I transmit herewith the annual
message from® the President of the United States, which was
report of the Commission on the Erection of Memorials and
240
CONGRESSIONAL RECORD-HOUSE
JANUARY 8
Entombment of Bodies in the Arlington Memorial Amphi-
ALASKA TERRITORIAL LEGISLATURE
theater for the fiscal year ended June 30, 1933.
The SPEAKER also laid before the House the following
FRANKLIN D. ROOSEVELT.
message from the President of the United States, which was
THE WHITE HOUSE, January 8, 1934.
read, and, with the accompanying papers, referred to the
REPORT OF GOVERNOR OF THE PANAMA CANAL
Committee on the Territories:
The SPEAKER also laid before the House the following
To the Congress of the United States:
message from the President of the United States, which was
In compliance with the provisions of the act of Congress
read, and, with the accompanying papers, referred to the
approved August 24, 1912, I transmit herewith a certified
Committee on Interstate and Foreign Commerce:
copy of the Session Laws of Alaska, of the Alaska Territorial
To the Congress of the United States:
Legislature, 1933.
I transmit herewith, for the information of the Congress,
FRANKLIN D. ROOSEVELT.
the annual report of the Governor of the Panama Canal for
THE WHITE HOUSE, January 8, 1934.
the fiscal year ended June 30, 1933.
CHILD-LABOR AMENDMENT
FRANKLIN D. ROOSEVELT.
THE WHITE HOUSE, January 8, 1934.
The SPEAKER laid before the House a communication
from the Governor of the State of West Virginia announc-
REPORT OF COUNCIL OF NATIONAL DEFENSE
ing the ratification by the Legislature of that State of the
The SPEAKER also laid before the House the following
proposed child-labor amendment to the Constitution of the
message from the President of the United States, which was
United States.
read, and, with the accompanying papers, referred to the
LEAVE OF ABSENCE
Committee on Military Affairs:
To the Congress of the United States:
By unanimous consent leave of absence was granted as
In compliance with paragraph 5, section 2, of the Army
follows:
Appropriation Act, approved August 29, 1916, I transmit
To Mr. COOPER of Tennessee, for today, on account of
herewith the Seventeenth Annual Report of the Council of
illness.
National Defense for the fiscal year ended June 30, 1933.
To Mr. REID of Illinois, until further notice, on account of
FRANKLIN D. ROOSEVELT.
important business.
THE WHITE HOUSE, January 8, 1934.
To Mr. MANSFIELD, indefinitely, on account of illness in
hospital.
FOREIGN SERVICE RETIREMENT AND DISABILITY SYSTEM (H. DOC.
NO. 208)
SENATE JOINT RESOLUTIONS AND BILLS REFERRED
The SPEAKER also laid before the House the following
Joint resolutions and bills of the Senate of the following
message from the President of the United States, which was
titles were taken from the Speaker's table and, under the
read, and, with the accompanying papers, referred to the
rule, referred as follows:
Committee on Foreign Affairs and ordered printed:
S.J.Res. 15. Joint resolution extending to the whaling in-
To the Congress of the United States:
dustry certain benefits granted under section 11 of the
I transmit herewith a report by the Acting Secretary of
Merchant Marine Act, 1920; to the Committee on Merchant
State showing all receipts and disbursements on account of
Marine, Radio, and Fisheries.
refunds, allowances, and annuities for the fiscal year ended
S.J.Res. 54. Joint resolution limiting the operation of sec-
June 30, 1932, in connection with the Foreign Service retire-
tions 109 and 113 of the Criminal Code; to the Committee
ment and disability system, as required by section 26 (a) of
on the Judiciary.
an act for the grading and classification of clerks in the
S.J.Res. 59. Joint resolution to provide for the expenses
Foreign Service of the United States of America, and provid-
of delegates of the United States to the Ninth Pan Ameri-
ing compensation therefor, approved February 23, 1931.
can Sanitary Conference; to the Committee on Foreign
FRANKLIN D. ROOSEVELT.
Affairs.
THE WHITE HOUSE, January 8, 1934.
S.J.Res. 60. Joint resolution making an appropriation for
(Enclosure: Report concerning retirement and disability
an investigation of housing conditions and rentals in the
fund, Foreign Service.)
District of Columbia; to the Committee on the District of
VETERANS' REGULATIONS
Columbia.
The SPEAKER also laid before the House the following*
S. 1286. An act to increase the efficiency of the Veterinary
message from the President of the United States, which was
Corps of the Regular Army; to the Committee on Military
read, and, with the accompanying papers, referred to the
Affairs.
Committee on Expenditures in the Executive Departments
S. 1654. An act for the relief of George Yusko; to the
and ordered printed:
Committee on Military Affairs.
To the Congress of the United States:
S. 1759. An act to extend the time for the construction of
Pursuant to the provisions of section 20, title I of the act
dams and dikes in Lincoln County, Oreg., to prevent the flow
entitled "An act to maintain the credit of the United States
of waters of Yaquina Bay and River into Nutes Slough,
Government", approved March 20, 1933, I am transmitting
Boones Slough, and sloughs connected therewith; to the
herewith certified copies of Executive Orders Nos. 6229
Committee on Interstate and Foreign Commerce.
(Veterans' Regulation No. 1(b)), No. 6230 (Veterans' Regu-
lations No. 2 (a)), No. 6231 (Veterans' Regulation No. 3
S. 1772. An act for the relief of the Western Montana
(b)), No. 6232 (Veterans' Regulation No. 6 (a)), No. 6233
Clinic, Missoula, Mont.; to the Committee on Claims.
(Veterans' Regulation No. 7 (a)), and No. 6234 (Veterans'
S. 1867. An act authorizing an appropriation to provide
Regulation No. 10 (b), approved by me on July 28, 1933.
for the completion of the George Rogers Clark memorial at
These veterans' regulations amended the regulations ap-
Vincennes, Ind.; to the Committee on the Library.
proved by me on March 31, 1933, and June 6, 1933, and were
S. 1869. An act relating to the manner of appointment of
issued in accordance with the terms of title I, Public, No.
certain officers of the United States; to the Committee on
2, Seventy-third Congress, "An act to maintain the credit of
the Judiciary.
the United States Government" and Public, No. 78, Seventy-
ADJOURNMENT
third Congress, "An act making appropriations for the Ex-
ecutive Office and sundry independent executive bureaus,
Mr. BYRNS. Mr. Speaker, I move that the House do now
boards, commissions, and offices for the fiscal year ending
adjourn.
June 30, 1934, and for other purposes."
The motion was agreed to; accordingly (at 4 o'clock and
FRANKLIN D. ROOSEVELT.
37 minutes p.m.), the House adjourned until tomorrow,
THE WHITE HOUSE, January 8, 1934.
Tuesday, January 9, 1934, at 12 o'clock noon.
1934
CONGRESSIONAL RECORD-HOUSE
241
EXECUTIVE COMMUNICATIONS, ETC.
By Mr. SWANK: A bill (H.R. 6533) to promote education,
Under clause 2 of rule XXIV, executive communications
relieve economic distress and unemployment, and for other
were taken from the Speaker's table and referred as follows:
purposes; to the Committee on Education.
264. A letter from the Secretary of War, transmitting a
By Mr. SCRUGHAM: A bill (H.R. 6534) to provide for
report dated January 3, 1934, from the Chief of Engineers,
guaranteeing the principal of bonds issued by the Home
United States Army, on preliminary examination of Flint
Owners' Loan Corporation; to the Committee on Banking
River, Ga., authorized by the River and Harbor Act approved
and Currency.
July 3, 1930, together with accompanying papers; to the
By Mr. HILL of Alabama: A bill (H.R. 6535) to provide
Committee on Rivers and Harbors.
for the exploitation for oil, gas, and other minerals on the
265. A letter from the Acting Secretary of State, trans-
lands comprising Fort Morgan Military Reservation, Ala.;
mitting a copy of the circular from the Nobel Committee
to the Committee on Military Affairs.
of the Norwegian Parliament, furnishing information with
By Mr. KELLER: A bill (H.R. 6536) creating the Cairo
reference to proposals of candidates for the Nobel peace
Bridge Commission and its successors to construct, maintain,
prize for the year 1934; to the Committee on Foreign Affairs.
and operate a bridge across the Ohio River at or near
266. A letter from the president of the Board of Commis-
Cairo, Ill.; to the Committee on Interstate and Foreign
sioners for the District of Columbia, transmitting a report
Commerce.
of the official operations of the Commissioners of the Dis-
By Mr. BROWN of Kentucky: A bill (H.R. 6537) to guar-
trict of Columbia for the fiscal year ended June 30, 1933
antee the principal of bonds issued by the Home Owners'
(H.Doc. No. 128) ; to the Committee on the District of
Loan Corporation: to the Committee on Banking and
Columbia.
Currency.
267. A letter from the Secretary of the Interior, trans-
By Mr. DIMOND: A bill (H.R. 6538) authorizing the sur-
mitting a list of leases of certain Government lands as
vey, location, and construction of a highway to connect
required by the act approved March 4, 1931 (46 Stat., 1523;
the northwestern part of continental United States with
U.S.C., supp. V, title 30, sec. 226), amending sections 17 and
British Columbia, Yukon Territory, and the Territory of
27 of the general leasing act of February 25, 1920 (41 Stat.,
Alaska; to the Committee on Roads.
437; U.S.C., title 30, sec. 226) to the Committee on the
By Mr. SWICK: A bill (H.R. 6539) to expedite the con-
Public Lands.
sideration and award of decorations by the War and Navy
Departments for services in the Army, Navy, and Marine
REPORTS OF COMMITTEES ON PUBLIC BILLS AND
Corps during the World War; to the Committee on Military
RESOLUTIONS
Affairs.
Under clause 2 of rule XIII,
By Mr. MILLER: A bill (H.R. 6540) to provide for ap-
Mrs. NORTON: Committee on the District of Columbia.
praisal by the Farm Loan Commissioner and Federal land
H.R. 6181. A bill to control the manufacture, transporta-
banks of land situated in levee, drainage, road, and other
tion, possession, and sale of alcoholic beverages in the Dis-
improvement districts and to prevent discrimination against
trict of Columbia; with amendments (Rept. No. 274). Re-
such land; to the Committee on Agriculture.
ferred to the Committee of the Whole House on the state of
By Mr. McSWAIN: A bill (H.R. 6541) to further promote
the Union.
national defense, and to amend the National Defense Act; to
the Committee on Military Affairs.
PUBLIC BILLS AND RESOLUTIONS
By Mr. MILLER: A bill (H.R. 6542) to authorize the Re-
Under clause 3 of rule XXII, public bills and resolutions
construction Finance Corporation to accept bonds issued by
were introduced and severally referred as follows:
the Home Owners' Loan Corporation at face value in pay-
By Mr. BUCK: A bill (H.R. 6525) to amend the act known
ment of obligations due it, and for other purposes; to the
as the Perishable Agricultural Commodities Act, 1930
Committee on Banking and Currency.
approved June 10, 1930; to the Committee on Agriculture.
By Mr. MALONEY of Connecticut: A bill (H.R. 6543) to
By Mr. CHASE: A bill (H.R. 6526) to provide for the
amend Public, No. 2, Seventy-third Congress, entitled "An
reestablishment of regional insurance offices by the Veterans'
act to maintain the credit of the United States Govern-
Administration, and for other purposes; to the Committee
ment and public, No. 78, Seventy-third Congress, entitled
on World War Veterans' Legislation.
"An act making appropriations for the executive offices and
By Mr. SMITH of Washington: A bill (H.R. 6527) to
sundry independent executive bureaus, boards, commissions,
authorize the Reconstruction Finance Corporation to make
and offices, for the fiscal year ending June 30, 1934, and for
direct loans to approved firms and corporations for pay
other purposes; to the Committee on World War Veterans'
rolls and working capital; to the Committee on Banking and
Legislation.
Currency.
By Mr. BANKHEAD: A bill (H.R. 6544) to place the cot-
By Mr. WALLGREN: A bill (H.R. 6528) to provide for the
ton industry on a sound commercial basis, and to prevent
construction of works for flood control, the prevention of
unfair competition and practices in putting cotton into the
soil erosion, and the improvement of navigation in the
channels of interstate and foreign commerce; to the Com-
Snohomish, Stillaguamish, Skagit, and Nooksak River
mittee on Agriculture.
Basins in the State of Washington; to the Committee on
By Mr. EVANS: A bill (H.R. 6545) to provide relief for
Flood Control.
damages caused by unusual floods in the State of California
By Mr. HEALEY: A bill (H.R. 6529) to provide the guar-
during the year 1934; to the Committee on Ways and Means.
anteeing of the principal of bonds issued by the Home
By Mr. COCHRAN of Missouri: A bill (H.R. 6546) amend-
Owners' Loan Corporation; to the Committee on Banking
ing section 320 of title 18 of the United States Code; to the
and Currency.
Committee on the Judiciary.
By Mr. ELTSE of California: A bill (H.R. 6530) granting
By Mr. CARTER of Wyoming: A bill (H.R. 6547) to amend
and confirming to the East Bay Municipal Utility District,
Public, No. 2, Seventy-third Congress, etc.; to the Committee
a municipal utility district of the State of California and
on World War Veterans' Legislation.
a body corporate and politic of said State and a political
Also, a bill (H.R. 6548) for the relief of veterans of the
subdivision thereof, certain lands, and for other purposes;
Spanish-American War, including the Boxer Rebellion and
to the Committee on the Public Lands.
the Philippine Insurrection; to the Committee on Expendi-
By Mr. CHRISTIANSON: A bill (H.R. 6531) prohibiting
tures in the Executive Departments.
the importation of certain eggs into the United States; to
By Mr. DIMOND: A bill (H.R. 6549) to authorize the
the Committee on Ways and Means.
incorporated town of Wrangell, Alaska, to issue bonds in
Also, a bill (H.R. 6532) prohibiting the importation into
any sum not exceeding $47,000 for municipal public works,
the United States of certain meats; to the Committee on
including enlargement, extension, construction, and recon-
Ways and Means.
struction of water-supply system; extension, construction,
No. 4-10
242
CONGRESSIONAL RECORD-HOUSE
JANUARY 8
and reconstruction of retaining wall and filling and paving
laws relating to national banking associations and to Fed-
streets and sidewalks; extension, construction, and recon-
eral Reserve banks, and for other purposes; to the Com-
struction of sewers in said town of Wrangell; to the Com-
mittee on Banking and Currency.
mittee on the Territories.
By Mr. HOEPPEL (by request) A bill (H.R. 6565) to
By Mr. McCORMACK: A bill (H.R. 6550) to remove the
equalize the pensions of widows of the Civil War, the In-
limitation on the filling of the vacancy in the office of United
dian wars, the Spanish-American War, the Philippine in-
States district judge for the district of Massachusetts; to the
surrection, the Boxer rebellion, and the Regular Service;
Committee on the Judiciary.
to the Committee on Invalid Pensions.
By Mr. MALONEY of Connecticut: A bill (H.R. 6551)
By Mr. McLEOD: A bill (H.R. 6566) to protect the cur-
creating a postage stamp in honor of the commemoration of
rency system of the United States by requiring the transfer
the one hundred and fiftieth anniversary of the founding of
to the United States Treasury of all gold held by the Fed-
the Order of the Purple Heart; to the Committee on the
eral Reserve System; to the Committee on Banking and
Post Office and Post Roads.
Currency.
By Mr. REILLY: A bill (H.R. 6552) permitting landowners
By Mr.- YOUNG: A bill (H.R. 6567) to release veterans
who have suffered damages on account of prosecution and
from the liability to pay interest on loans secured by ad-
maintenance of the improvement of the Wisconsin and Fox
justed-service certificates, to provide for the refund of
Rivers, in the State of Wisconsin, to institute action in the
interest paid on such loans, and for other purposes; to the
Court of Claims or the United States district court for
Committee on Ways and Means.
the recovery of such damages; to the Committee on the
By Mr. DEAR: A bill (H.R. 6568) authorizing payment to
Judiciary.
the Red River, Atchafalaya, and Bayou Boeuf Levee District
By Mr. McSWAIN: A bill (H.R. 6553) to amend the act of
for acquiring certain levee rights-of-way for flood-control
June 15, 1933, amending the National Defense Act of June 3,
work; to the Committee on Flood Control.
1916, as amended; to the Committee on Military Affairs.
By Mr. CARTER of Wyoming: A bill (H.R. 6569) provid-
Also, a bill (H.R. 6554) to establish a department of phys-
ing for the suspension of annual assessment work on mining
ics at the United States Military Academy, at West Point,
claims held by location in the United States and Alaska;
N.Y.; to the Committee on Military Affairs.
to the Committee on Mines and Mining.
Also (by request), a bill (H.R. 6555) to increase the effi-
By Mr. SABATH: A bill (H.R. 6570) to authorize the Re-
ciency of the Medical Corps of the Regular Army; to the
construction Finance Corporation to make loans to certain
Committee on Military Affairs.
public-school districts; to the Committee on Banking and
Also (by request), a bill (H.R. 6556) to amend section 2 of
Currency.
the act entitled "An act to give war-time rank to retired of-
By Mr. McSWAIN: A bill (H.R. 6571) to amend the act of
ficers and former officers of the Army, Navy, Marine Corps,
May 22, 1928, To authorize the collection, in monthly in-
and/or Coast Guard of the United States approved June
stallments, of indebtedness due the United States from en-
21, 1930, so as to prohibit persons who have been subse-
listed men, and for other purposes"; to the Committee on
quently separated from the service under other than honor-
Military Affairs.
able conditions from bearing the official title and upon oc-
Also, a bill (H.R. 6572) to provide relief for disbursing
casions of ceremony wearing the uniform of the highest
officers of the Army in certain cases; to the Committee on
grade held by them during their war service; to the Com-
Military Affairs.
mittee on Military Affairs.
By Mr. EICHER: A bill (H.R. 6573) to authorize the Sec-
Also (by request), a bill (H.R. 6557) to amend the act en-
retary of War, upon the recommendation of the Chief of
titled "An act to amend an act entitled 'An act to prohibit
Engineers, to adjust, settle, and pay claims of drainage dis-
the unauthorized wearing, manufacture, or sale of medals
tricts and levee districts for damages on account of increased
and badges awarded by the War Department, approved Feb-
seepage and/or increased cost of drainage resulting from
ruary 24, 1933 approved April 23, 1928 so as to include
certain improvements on the Mississippi River; to the Com-
the Navy; to the Committee on Military Affairs.
mittee on Claims.
By Mr. DIMOND: A bill (H.R. 6558) to authorize the in-
By Mr. McDUFFIE: A bill (H.R. 6574) to make inappli-
corporated town of Juneau, Alaska, to issue bonds in any
cable in Puerto Rico and the Virgin Islands certain Federal
sum not exceeding $100,000 for municipal public works, in-
laws relating to intoxicating liquors; to. the Committee on
cluding regrading and paving of streets and sidewalks,
Insular Affairs.
installation of sewer and water pipe, construction of
By Mr. BRITTEN: A bill (H.R. 6575) to authorize the
bridges, construction of concrete bulkheads, and construc-
building up of the United States Navy to the strength per-
tion of refuse incinerator; to the Committee on the Terri-
mitted by the Washington and London Naval Treaties; to
tories.
the Committee on Naval Affairs.
By Mr. CELLER: A bill (H.R. 6559) to assure to persons
By Mr. ELLENBOGEN: Resolution (H.Res. 212) to create
within the jurisdiction of every State the equal protection
a committee to make a study and prepare legislation for the
of the laws, and to punish the crime of lynching; to the
establishment of a uniform national old-age pension system
Committee on the Judiciary.
on a contributory basis; to the Committee on Rules.
Also, a bill (H.R. 6560) to renew appointments to regular
By Mr. MARTIN of Colorado: Joint resolution (H.J.Res.
positions in the Government service; to the Committee on
220) to declare a contingent forfeiture of hoarded gold, gold
Expenditures in the Executive Departments.
coin, or gold bullion; to the Committee on Banking and
Also, a bill (H.R. 6561) to establish a 30-hour work week
Currency.
in all branches of the United States Government service; to
By Mr. SANDERS: Joint resolution (H.J.Res. 221) pro-
the Committee on the Civil Service.
posing an amendment to the Constitution of the United
Also, a bill (H.R. 6562) to repeal legislation imposing sal-
States; to the Committee on the Judiciary.
ary cuts upon Government employees; to the Committee on
Expenditures in the Executive Departments.
By Mr. McLEOD: A bill (H.R. 6563) to eliminate certain
PRIVATE BILLS AND RESOLUTIONS
discriminations in the existing revenue laws pertaining to
Under clause 1 of rule XXII, private bills and resolutions
temporary dealers in beer and other malt liquors; to the
were introduced and severally referred as follows:
Committee on Ways and Means.
By Mr. ARNOLD: A bill (H.R. 6576) granting a pension
By Mr. ELLENBOGEN: A bill (H.R. 6564) to amend the
to Lavinia McDonald Beard; to the Committee on Invalid
Home Owners' Loan Act of 1933, to revive the construction
Pensions.
industry by financing the construction of new homes with
Also a bill (H.R. 6577) granting an increase of pension to
bonds of the Home Owners' Loan Corporation, to guarantee
Martha D. McCabe; to the Committee on Invalid Pensions.
the principal of and to give the circulation privilege to the
By Mr. CARMICHAEL: A bill (H.R. 6578) for the relief
bonds of the Home Owners' Loan Corporation, amend the
of Gordon McGee; to the Committee on Military Affairs.
1934
CONGRESSIONAL RECORD-HOUSE
243
By Mr. CRAVENS: A bill (H.R. 6579) granting a pension
1494. Also, petition of the National Federation of Post
to Julia Pitts; to the Committee on Pensions.
Office Clerks, Local No. 240, of Stamford, Conn., and others,
By Mr. DUNCAN of Missouri: A bill (H.R. 6580) for the
praying for the restoration of pay standards for all Gov-
relief of Joseph J. McMahon; to the Committee on Military
ernment workers reduced by the so-called Economy Act ";
Affairs.
to the Committee on Appropriations.
By Mr. FLETCHER: A bill (H.R. 6581) granting an in-
1495. Also, resolution of the Chamber of Commerce of
crease of pension to Rachael A. Updegraff; to the Committee
Clinton, Conn., expressing confidence in the President's en-
on Invalid Pensions.
tire recovery program, including any readjustment of the
By Mr. HOLMES: A bill (H.R. 6582) placing Cadet Adrian
prevailing monetary system necessary to complete his na-
Van Leeuwen on the retired list; to the Committee on Mili-
tional recovery program; to the Committee on Coinage,
tary Affairs.
Weights, and Measures.
By Mr. LUCE: A bill (H.R. 6583) for the relief of William
1496. By Mr. CARTER of Wyoming: Memorial of the
J. Whelan; to the Committee on Naval Affairs.
Twenty-second Legislature of the State of Wyoming, me-
By Mr. LUDLOW: A bill (H.R. 6584) granting an increase
morializing Congress of the United States to establish a Fed-
of pension to Rebecca A. Wood; to the Committee on Invalid
eral land-bank district composed of Intermountain States;
Pensions.
to the Committee on Banking and Currency.
By Mr. MALONEY of Connecticut: A bill (H.R. 6585) for
1497. By Mr. CUMMINGS: Memorial of the Senate of the
the relief of Robert R. Prann; to the Committee on Claims.
State of Colorado, memorializing Congress to enact legis-
By Mr. MEAD: A bill (H.R. 6586) for the relief of Howard
lation restoring to the people of the United States the bi-
William Chadderdon; to the Committee on Naval Affairs.
metallic monetary system of coinage; to the Committee on
By Mr. MILLER (by request) A bill (H.R. 6587) for the
Coinage, Weights, and Measures.
relief of Hirem Sutterfield; to the Committee on Claims.
1498. Also, petition of the Twenty-ninth General As-
By Mr. MOTT: A bill (H.R. 6588) granting a pension to
sembly of the State of Colorado, commending and praising
Lemuel T. Wilson; to the Committee on Pensions.
the monetary policies already adopted by the President and
By Mr. McCORMACK: A bill (H.R. 6589) for the relief
it hereby respectfully requests and urges the President to
of Joseph Peter Joyce; to the Committee on Naval Affairs.
continue his present gold-purchasing plan and to add thereto
Also, a bill (H.R. 6590) for the relief of Clarence Herbert
a similar plan of silver purchases, and, if found feasible, to
Peltier; to the Committee on the Judiciary.
bring about the remonetization of silver and its free coinage
Also, a bill (H.R. 6591) for the relief of Francis Louis
at some reasonable ratio with respect to the gold dollar; to
Nourse; to the Committee on Naval Affairs.
the Committee on Coinage, Weights, and Measures.
By Mr. McLEOD: A bill (H.R. 6592) for the relief of Louis
1499. By Mr. FORD: Petition of Spanish-American War
Norton; to the Committee on Military Affairs.
veterans, asking for restoration of pensions, hospitalization,
Also, a bill (H.R. 6593) for the relief of Thomas J.
and same care as existed prior to enactment of Public, No. 2,
DeManigold; to the Committee on Military Affairs.
Seventy-third Congress; to the Committee on Appropria-
tions.
By Mr. REECE: A bill (H.R. 6594) granting a pension to
John C. Jones; to the Committee on Pensions.
1500. By' Mr. LAMBERTSON: Resolution adopted at the
Also, a bill (H.R. 6595) granting a pension to Venia Moody;
regular meeting of the Francis Willard Union, Woman's
to the Committee on Pensions.
Christian Temperance Union, Leavenworth, Kans., urging
By Mr. REILLY: A bill (H.R. 6596) for the relief of Maj.
favorable action on the Patman motion picture bill, H.R.
Lester L. Lampert; to the Committee on War Claims.
6097, providing higher moral standards for films entering
interstate and international commerce, signed by the presi-
Also, a bill (H.R. 6597) for the relief of A. White; to the
dent, Mrs. Harriet Shelby, 712 Chestnut Street, Leaven-
Committee on Claims.
worth, and its secretary, Jennie Shields, of Leavenworth,
Also, a bill (H.R. 6598) for the relief of the West Bend
Kans.; to. the Committee on Interstate and Foreign Com-
Brewing Co.; to the Committee on Claims.
merce.
By Mr. SUMNERS of Texas: A bill (H.R. 6599) for the
1501. By Mr. LINDSAY: Petition of Conservation Depart-
relief of Joseph E. Moore; to the Committee on Claims.
ment, State of New York, Albany, favoring the so-called
By Mr. THOMASON: A bill (H.R. 6600) granting a pen-
" duck stamp bill" H.R. 5632 and S. 1658, and recommend-
sion to Elisha Wilson; to the Committee on Pensions.
ing its passage; to the Committee on Agriculture.
By Mr. WEST of Ohio: A bill (H.R. 6601) for the relief
1502. Also, petition of New York State Historical Associa-
of Lt. Charles E. Epson; to the Committee on Military
tion, proposing a Nation-wide celebration of the one hun-
Affairs.
dred and fiftieth anniversary of the Federal Constitution in
By Mr. WILCOX: A bill (H.R. 6602) for the relief of
1937; to the Committee on the Library.
Aurora Booth; to the Committee on Claims.
1503. Also, petition of County Editor Publishing Co., Inc.,
Staten Island, N.Y., concerning taxation of spirits; to the
PETITIONS, ETC.
Committee on Ways and Means.
1504. Also, petition of Marine Corps League, New York
Under clause 1 of rule XXII, petitions and papers were
Detachment No. 1, Brooklyn, N.Y., recommending increase
laid on the Clerk's desk and referred as follows:
in personnel and advancement in the commissioned ranks;
1491. By Mr. BAKEWELL: Resolution of the Department
to the Committee on Military Affairs.
of Connecticut, United Spanish War Veterans, for the reen-
1505. Also, petition of Chamber of Commerce of the State
actment of the laws granting benefits to Spanish War,
of New York, New York City, recommending a reduction in
Philippine insurrection, and China relief expedition veterans,
expenditures and enactment of additional tax laws necessary
their widows and dependents, which were repealed by the
to bring about a balanced Budget; to the Committee on Ways
passage of the Economy Act; to the Committee on Appro-
and Means.
priations.
1506. By Mr. PARKER: Petition of W. M. Burton, and
1492. Also, petition of Connecticut Branch, No. 29, Na-
other citizens, of Wayne County, Ga., asking the continua-
tional Rural Letter Carriers' Association, protesting against
tion of the Crop Production Loan Office to assist small
discrimination against rural carriers in the application of
farmers in financing their crops; to the Committee on
the so-called Economy Act"; to the Committee on the
Agriculture.
Post Office and Post Roads.
1507. Also, petition of citizens of Chatham County, Ga.,
1493. Also, petition of the National Association of Special
asking the Federal Congress to enact legislation granting
Delivery Messengers, praying for a change in their present
pensions to the aged and indigent citizens of the Nation;
status as Government employees so that they may have a
to the Committee on Pensions.
civil-service standing with a living wage; to the Committee
1508. By Mr. RUDD: Petition of Marine Corps League,
on the Post Office and Post Roads.
New York Detachment No. 1, 16 Court Street, Brooklyn,
244
CONGRESSIONAL RECORD-HOUSE
JANUARY 8, 1934
N.Y., favoring the strength of the Marine Corps be increased
1511. Also, petition of Chamber of Commerce of the Bor-
by 2,000 and that promotion of officers be made more rapid
ough of Queens, City of New York, favoring certain amend-
commensurate with the length of service; to the Committee
ments to the Securities Act of 1933; to the Committee on
on Naval Affairs.
Banking and Currency.
1509. Also, New York State Historical Association, propos-
1512. Also, petition of Chamber of Commerce of the State
ing Nation-wide celebration of the one hundred and fiftieth
of New York, favoring a reduction in expenditures so far as
anniversary of the Federal Constitution in 1937; to the Com-
practical and the enactment of additional tax laws to bring
mittee on the Library.
about a balanced Budget; to the Committee on Ways and
1510. Also, petition of the New York State Conservation
Means.
Advisory Council, favoring the passage of the so-called
1513. By the SPEAKER: Petition of H. F. J. Ravn, regard-
" duck stamp bill ", H.R. 5632 and S. 1658; to the Committee
ing claim in petition of December 6, 1933; to the Committee
on Claims.
on Agriculture.
APPENDIX
Soviet Recognition
It is clearly evident that, regardless of recognition, regardless
of promises given and pledges made, Soviet Russia is as de-
termined as ever to create internal strife within our Nation and
REMARKS
to foment world revolution. Instead of changing her tactics, in
view of the recognition agreement, Moscow is pursuing her tradi-
OF
tional tactics with renewed vigor and determination.
HON. WILLIAM H. KING
Perhaps the President had no recourse other than to-recognize
Soviet Russia. Perhaps there are unknown circumstances that
OF UTAH
required abandonment of the policy laid down by his distin-
guished Democratic predecessor and adhered to by all of the
IN THE SENATE OF THE UNITED STATES
intervening Republicans. Perhaps there were reasons for recogni-
tion which outweighed at this time all of the original and all of
Monday, January 8, 1934
the accumulated reasons for denying recognition. But even if we
concede that there had to be recognition, we do not have to
RADIO ADDRESS OF MATTHEW WOLL, VICE PRESIDENT
concede that there is nothing more to worry about. What I
AMERICAN FEDERATION OF LABOR, UNDER THE AUSPICES
want to point out is that the time for worry has just begun.
OF THE AMERICAN ALLIANCE OF THE UNITED STATES,
Do I believe communist propaganda will cease? Most assuredly
I do not. I am confident there will be plenty of communist
DECEMBER 2, 1933
propaganda, ordered in accord with the Moscow pattern and
directed by the same dictatorial hand that rules the destinies of
Mr. KING. Mr. President, I ask unanimous consent to
160,000,000 enslaved people, for whom we have only the kind-
have printed in the RECORD an address on Soviet recognition
liest of feelings and warmest of friendships. Now is the
delivered over the National Broadcasting Co. network on
time of our testing. We have opened the door, and something is
bound to enter.
December 2, 1933, by Matthew Woll, vice president of the
I urge, with all the emphasis of which I am capable, two things:
American Federation of Labor, under the auspices of the
First, that before loans are made to the Soviets with which to
American Alliance of the United States.
finance purchases of commodities, that our loaning capacity to
our own people be exhausted and that extension of national
There being no objection, the address was ordered to be
credits on our part be denied where we know such financial assist-
printed in the RECORD, as follows:
ance will prove the ultimate disruption of the economic life of
every other nation.
SOVIET RECOGNITION-ITS IMPLICATIONS
Second, that our Department of Justice be given the authority
I am not optimistic as to our new relations with the Com-
and the funds with which to observe the secret operations of
munist Government of Russia. Pleasantries in Washington have
Communist in our midst.
not changed the character of the Soviet Government. The
As to the first point, let me say that we still have millions of
pledge given by Maxim Litvinoff has not divorced the Third In-
unemployed among our own people. I am not optimistic enough
ternational from the Russian Soviet Government. These two and
to believe that all of these will be employed this winter. Our
the Communist Party of Russia continue as the three joint ele-
primary obligation is to them. I am opposed to sending our
ments of a unified communist control in which each of the three
wealth to our enemies abroad until our friends at home have been
parties is incapable of independent action not in accord with the
provided with enough.
program and desires of the others.
Then, too, it must be borne in mind that foreign trade in Rus-
It has been said that the United States secured from the Soviet
sia is a state monopoly. The whole industry, commerce, and
Government terms more favorable than those given to any other
activities of Russia are nationalized. The nature, quality, and
nation by the Russian regime. That may be true. I have not
prices of exports are decided by the state alone, and in an entirely
studied all of the other Russian agreements. We are concerned
arbitrary manner. The basic aim of Soviet foreign trade is the
with what is in this particular agreement, not in what may be
disruption of the economic life of what it chooses to call capi-
in other agreements. This agreement, frankly, does not assure
talistic countries", and with the view of creating discontent and
harmonious relations with revolutionary communism.
furthering world revolution. This was clearly manifested by Mr.
As a matter of fact, as long as communism is communism, as
Litvinoff in his statement at the Pan European Conference held
long as its philosophy remains what it has been and what it is
in Geneva when he said:
bound to be, the conflict between communism and democracy
Owing to the special conditions of agriculture of Soviet Rus-
must go on. They cannot stop it and neither can we. To think
sia, as well as its monopoly of foreign trade, we are able to sell
of it as stopped by an agreement signed by two men in Washing-
agricultural products 70 percent and even more cheaper than our
ton is to forget all of the lessons we have learned and to over-
capitalistic competitors."
look all of the facts available.
This statement and implied warning were clear and definite.
There is in the Litvinoff agreement no promise to repudiate
Russia understands well its power, and it is well that we under-
stand that the intercourse between the United States and Russia
the communist philosophy, no promise to repudiate the doctrine
that it is a communist obligation to deceive the rest of the world,
is not only such as of countries engaged in mutual trade but
no promise to repudicate the Third International, no promise to
chiefly as countries supplying the same market with identical
cease doing any of the things that have made communism the
products, such as grain, oil, etc.
enemy of all the rest of the civilized world. There is no promise
Soviet Russia by underselling these products in Europe can and
that raids on world markets will cease, no promise that under-
will impose irreparable injury to our farming communities. Why,
then, should American taxpayers' money be loaned to an insolvent
ground methods will not be used to achieve those ends which
nation, a nation that is running constantly into the red and that
may not be achieved openly. There is even no repudiation of the
has no regard for the ordinary conduct of decency observed by
Moscow order, published in America while Litvinoff conferred in
Washington, and which order was published in Moscow on Mon-
every other nation?
American labor is in complete accord with President Roosevelt
day, October 23, by the Central Office of the Communist Party of
in his utterance and attitude that it is utterly and entirely un-
the U.S.S.R., 2 days after the publication of the correspondence
between President Roosevelt and President Kalinin. Omission of
sound to encourage a policy that would open markets in foreign
any reference to this Moscow order is. all the more remarkable
lands through the lending of American money to these countries
regardless of assurance or nonassurance of repayment of money so
because of the bitter attack made in it upon President Roosevelt
loaned.
and the N.R.A. program. The fact that the American Federation
As to the second point, I wonder how many Americans know
of Labor was likewise attacked may perhaps be of little importance
that our Government today has no authority to conduct even
to some.
the most cursory investigation into the secretive and subversive
This document was headed "Roosevelt Starvation Program." It
activities of Communism. I wonder, too, how many Americans
was printed in several languages, in the printing plant of an
know that the underground Communist Party in the United States
official soviet organ, and its text was officially approved by the
has never been disbanded. Must our people be lulled to sleep by
Soviet Censorship Bureau. It was addressed to communists and
every whiff of fair words? I am no alarmist, but I do believe it is
revolutionary groups in the United States. It contained detailed
at times worth while to try to be a realist. I refuse to be fooled
orders and instructions to oppose President Roosevelt's program,
by Mr. Litvinoff, who is rated as the most successful of all Red
to exploit the wave of discontent, to convert this discontent into
diplomats. But if his success is to be our downfall, why need we
a gigantic struggle of the proletariat against the Government, to
cheer him as he moves from victory to victory?
formulate the plans for a counter-revolutionary program with-
Mr. Litvinoff evidently fooled many when he said the Com-
out delay and immediately to instigate open revolts, fights, and
munist Party of Russia is not concerned with the Communist
strikes against the administration's measures.
Party of America. If that is true, is it equally true that the
245
246
CONGRESSIONAL RECORD-APPENDIX
JANUARY 8
Third International is concerned with both and will remain so?
The President's Silver Proclamation
If that is not true and if the Communist Party in America is ac-
tually divorced by the Third International, then we shall have
news worth the reading of all Americans.
REMARKS
In this connection it will be interesting to observe if the Soviet
Government will carry out the suggestion made by Dr. Edmund A.
OF
Walsh on November 19. In his statement Father Walsh directed
attention to the fact that an organization notoriously hostile to
HON. CARL HAYDEN
our country was residing on Soviet territory and housed in a gov-
OF ARIZONA
ernment building not far from the Kremlin, and, therefore, not
permitted to continue its life or activities under paragraph 4 of
IN THE SENATE OF THE UNITED STATES
the Washington agreement. He well asks if the pledges made by
the Soviet Government, through its commissar for foreign af-
Monday, January 8, 1934
fairs, will be carried out in this and other instances.
If the Washington agreement, in its famous paragraph 4, means
PROCLAMATION BY THE PRESIDENT OF THE UNITED STATES
the severance of the tie between American communism and its
WITH RESPECT TO THE COINAGE OF SILVER, ALSO AN EDI-
Russian master, then let us have performance. Let it happen.
TORIAL BY RAYMOND MOLEY ENTITLED JUSTICE FOR
It has not happened and, in my opinion, it will not happen,
SILVER"
because, as in a long list of cases, the Soviet Government has
stuck its tongue in its cheek and parrotted to the world, the
Russian Government does not control the Third International ",
Mr. HAYDEN. Mr. President, I ask to have inserted in
while all the world goes on blinded to the truth out of its greed
the RECORD the proclamation by the President of the United
for trade.
I thank God the American Federation of Labor has never given
States with respect to the coinage of silver, and, as bearing
way to greed in this long conflict of interests. We have been
upon that subject, an editorial by Raymond Moley entitled
baited with the prospect of work, and we have needed work with
" Justice for Silver in which a well-deserved compliment is
an acuteness that can never be comprehended by those who have
paid to the senior Senator from Nevada [Mr. PITTMAN].
not needed work. But our ranks have never wavered on this issue.
It is a record for all time and a record of which we are proud.
There being no objection, the proclamation and editorial
We have not been for sale. Our conditions have been above price.
were ordered to be printed in the RECORD, as follows:
And we have not changed our minds.
American labor is ever mindful of the fact that the Russian
COINAGE OF SILVER
Communist Party is the superior of both the Russian Government
A proclamation by the President of the United States of America
and the Third International. And Stalin is the superior of the
Whereas by paragraph (2) of section 43, title III, of the act
three. He is the czar of Soviet Russia. The individuals surround-
of Congress, approved May 12, 1933 (Public, No. 10), the Presi-
ing him are in office and complete control of these three organi-
dent is authorized By proclamation to fix the weight of the
zations. We behold a unity, with three interdependent and inter-
gold dollar in grains nine tenths fine and also to fix the weight
locking parts. Should the Russian Communist Party decide to
of the silver dollar in grains nine tenths fine at a definite fixed
discontinue the use of the Third International as its vehicle for
ratio in relation to the gold dollar at such amounts as he finds
the propaganda of world revolution, there remain to be used
necessary from his investigation to stabilize domestic prices or
some 15 other internationals, including first and foremost the
to protect the foreign commerce against the adverse effect of
Red International of Labor Unions, extending on down the line
depreciated foreign currencies, and to provide for the unlimited
to the red youth international. All are of the one family, all
coinage of such gold and silver at the ratio so fixed,
and
bound to the same unholy purpose, all a part of the network
Whereas from investigations made by me, I find it necessary, in
through which communism works to accomplish its destructive
aid of the stabilization of domestic prices and in accordance with
purpose.
the policy and program authorized by Congress, which are now
Now, from the viewpoint of the realist, why was recognition
being administered, and to protect our foreign commerce against
extended? Certain reasons seem evident, among which was the
the adverse effect of depreciated foreign currencies, that the price
desire to curb the ambitions of Japan. Another reason which
of silver be enhanced and stabilized; and
seems evident was the desire to promote export trade and, at that
Whereas a resolution presented by the delegation of the United
particular moment, to give our farm population some encourage-
States of America was unanimously adopted at the World Eco-
ment. If, in the absence of full information, we must concede
something of soundness to the first of these, the second is, as I
nomic and Monetary Conference in London on July 20, 1933, by
see it, purely mythical and, as I have tried to point out, may
the representatives of 66 governments, which in substance pro-
ultimately prove extremely injurious to our farmers as well as
vided that said governments will abandon the policy and practice
other groups in our land.
of melting up or debasing silver coins; that low-valued silver
No person has yet been able to wring out of Soviet import
currency be replaced with silver coins and that no legislation
statistics any encouragement of the recognition policy. Those
should be enacted that will depreciate the value of silver; and
statistics have shown us clearly as could possibly have been shown
Whereas a separate and supplemental agreement was entered
that recognition could gain us nothing in the way of new trade,
into, at the instance of the representatives of the United States,
even if our diplomatic policy were to be fixed on a basis .SO
between China, India, and Spain, the holders and users of large
unworthy.
quantities of silver, on the one hand, and Australia, Canada,
It has also been said that recognition was extended as a matter
Mexico, Peru, and the United States on the other hand, as the
of -friendship for the Russian people. But diplomatic relations
chief producers of silver, wherein China agreed not to dispose
are not relations between peoples; they are relations between gov-
of any silver derived from the melting up or debasement of silver
ernments. That and nothing else.
coins, and India agreed not to dispose of over 35,000,000 ounces
of silver per annum during a period of 4 years commencing Jan-
To my mind, every reason that was valid against recognition
uary 1, 1934, and Spain agreed not to dispose of over 5,000,000
2 months ago, and during all of the past 17 years, remains valid.
ounces of silver annually during said period, and both of said
However, recognition has been granted and we have now to save
governments agreed that at the end of said period of 4 years they
ourselves from its consequences, if we can. I do not have any
would then subject themselves to the general resolution adopted
belief that we are about to be destroyed. That is the argument
at the London Conference, and in consideration of such limitation
of our opponents who find it easier to destroy straw men than it is
it was agreed that the governments of the five producing coun-
to controvert facts. But I know that communist propaganda
tries would each absorb from the mines in their respective coun-
will continue, that recognition facilitates propaganda, and that
tries a certain amount of silver, the total amount to be absorbed
nothing about the communist program, philosophy, or machinery
by said producing countries being 35,000,000 ounces per annum
has been changed. I think and hope I know enough not to be
during the 4 years commencing the 1st day of January 1934; that
fooled by superficialities and the gloved hand of the Russian
such silver so absorbed would be retained in each of said respec-
smirking diplomat whose object is not to get something for the
tive countries for said period of 4 years, to be used for coinage
masses, but to achieve an aim of government. The Communist
purposes or as reserves for currency, or to otherwise be retained
machine does us more today than 2 months ago. The
and kept off the world market during such period of time, it being
Communist war against our unions is no less vigorous. The
understood that of the 35,000,000 ounces the United States was
Communist intrigue among all of our people is no less stealthy.
to absorb annually at least 24,421,410 ounces of the silver pro-
Is it not strange that when our Government opened negotia-
duced in the United States during such period of time.
tions with the Communists and likewise when it concluded them,
Now, therefore, finding it proper to cooperate with other govern-
there was not in possession of any department or bureau of our
ments and necessary to assist in increasing and stabilizing do-
Government any evidence whatever of the operations and machi-
mestic prices, to augment the purchasing power of peoples in
nations of communism in the United States? There was no infor-
silver-using countries, to protect our foreign commerce against
mation about what this alien enemy was doing among us.
the adverse effect of depreciated foreign currencies, and to carry
However, the die is cast. We are in friendship with our bitterest
out the understanding between the 66 governments that adopted
enemy. If this must be, then let us at least know what this
the resolution hereinbefore referred to; by virtue of the power in
enemy is doing. Let us not go forward in ignorance. One day
me vested by the act of Congress above cited, the other legislation
we shall have to protect our democracy unless communism
designated for national recovery, and by virtue of all other
perishes from its inner weaknesses. Let us run America for our
authority in me vested;
own people and let us know what our enemy does among us, for
I, Franklin D. Roosevelt, President of the United States of
in knowledge we shall find strength when we most need strength.
America, do proclaim and direct that each United States coinage
mint shall receive for coinage into standard silver dollars any
1934
CONGRESSIONAL RECORD-APPENDIX
247
silver which such mint, subject to regulations prescribed here-
world's population, and it may confidently be expected that China,
under by the Secretary of the Treasury, is satisfied has been
India, and some of the South American countries will very con-
mined, subsequently to the date of this proclamation, from natural
siderably increase their purchases of American goods. This is
deposits in the United States or any place subject to the juris-
bound to have a favorable effect upon agriculture and industry in
diction thereof. The Director of the Mint, with the voluntary
the United States, particularly in the far West. It is argued that
consent of the owner, shall deduct and retain of such silver SO
trade with the Orient is a small proportion of world trade. The
received 50 percent as seigniorage and for services performed by the
reply may be made that in a process of recovery such as ours the
Government of the United States relative to the coinage and deliv-
stimulation of even this small amount upon certain parts of the
ery of silver dollars. The balance of such silver SO received, that
country will be important.
is, 50 percent thereof, shall be coined into standard silver dollars
I think it is unwise to stress the importance of this act to
and the same, or an equal number of other standard silver dollars,
silver-producing States, although the effect is to give back to them
shall be delivered to the owner or depositor of such silver. The
a measure of the prosperity of a dozen years ago.
50 percent of such silver SO deducted shall be retained as bullion
Any fair estimate of the international monetary problem must
by the Treasury and shall not be disposed of prior to the 31st
recognize that for a world such as ours, operating under the
day of December 1937, except for coining into United States coins.
changed conditions of modern life, the available supply of gold
The Secretary of the Treasury is authorized to prescribe regu-
is not sufficient to form the basis of an adequate world currency.
lations to carry out the purposes of this proclamation. Such reg-
To add silver to this metallic base is to build a firmer foundation
ulations shall contain provisions substantially similar to the pro-
for a world monetary system.
visions contained in the regulations made pursuant to the act
There are those who will claim that the production of silver
of Congress approved April 23, 1918 (40 Stat.L. 535), known as
may be violently increased by raising the price of silver. The
the Pittman Act, with such changes as he shall determine pre-
answer that the silver advocates make is that there is a definite
scribing how silver mined subsequently to the date of this procla-
limit to the production of silver, and, while estimates vary as to
mation from natural deposits in the United States or any place
the amount, a fair view of this question indicates that the possible
subject to the jurisdiction thereof, shall be identified.
production of silver is not beyond the limits of safety.
This proclamation shall remain in force and effect until the 31st
Even many conservatives are now willing to admit that the time
day of December 1937 unless repealed or modified by act of Con-
has passed when gold can be used as a private circulation medium.
gress or by subsequent proclamation.
It is probable that in the future economy of the world the metallic
The present ratio in weight and fineness of the silver dollar to
basis of the currency-and it is to be hoped that it will consist of
the gold dollar shall, for the purposes of this proclamation, be
both gold and silver-will be held as a Government possession or
maintained until changed by further order or proclamation.
be used in a limited degree in settling international trade balances.
Notice is hereby given that I reserve the right by virtue of the
This practically destroys the argument of those who fear the
authority vested in me to revoke or modify this proclamation as
operation of Gresham's law. It also makes allowance for the
the interest of the United States may seem to require.
enormous importance of credit in the monetary picture.
In witness whereof I have hereunto set my hand and caused the
The action of the President is a substantial victory for the
seal of the United States to be affixed.
moderate advocates of silver. Senator KEY PITTMAN has reason to
Done at the city of Washington this 21st day of December, in
feel a measure of satisfaction in this practical result of many years
the year of our Lord 1933, and of the independence of the United
of advocacy. All fair-minded observers in this country and the
States of America the one hundred and fifty-eighth.
foreign experts who gathered in London recognize that no one in
[SEAL]
FRANKLIN D. ROOSEVELT.
the world has so mastered the details of this subject as has Senator
By the President:
PITTMAN and that no one has applied his knowledge of his favorite
WILLIAM PHILLIPS,
subject in a more statesmanlike and reasonable manner.
Acting Secretary of State.
RAYMUND MOLEY.
JUSTICE FOR SILVER
In May I made a radio address describing my personal con-
Farm Refinancing
clusions as to what the forthcoming London Economic Conference
might able to accomplish. Subsequently I published the sub-
stance of this address in a newspaper article. The conclusions
REMARKS
which I drew at the time (somewhat controverted, it may be
OF
added) were based upon a careful study of two important indica-
tions. The first of these was the extent to which the various
delegations had shown what they were willing to do in world
HON. LYNN J. FRAZIER
economic rehabilitation when they discussed these questions in
OF NORTH DAKOTA
Washington in April and May. The second guiding factor was
the domestic program then developing in Congress. On the basis
IN THE SENATE OF THE UNITED STATES
of these observations I ventured the prediction that the substan-
Monday, January 8, 1934
tial achievement at London would be limited to some agreement
as to the sort of an international monetary standard or common
yardstick toward which we should work." I added that the
RADIO ADDRESS OF HON. WILLIAM LEMKE, OF NORTH
United States has every reason to believe that something will be
DAKOTA, SEPTEMBER 23, 1933
done to improve the price of silver."
Precisely this one thing has resulted from the efforts of Senator
PITTMAN in London. The achievement of this substantial gain
Mr. FRAZIER. Mr. President, I ask unanimous consent
was marked by the President's ratification of this agreement
through the powers vested in him by the Thomas amendment.
to have printed in the Appendix of the RECORD a radio
The President's action has been greeted by various comments,
address delivered on September 23, 1933, by Hon. WILLIAM
an overwhelming majority of which have constituted a belated
LEMKE, a Representative in Congress from the State of North
recognition of the importance of silver in international monetary
Dakota.
policies. In some instances the Tory press has signalized this
recognition by saying that it is a mere political gesture intended
There being no objection, the address was ordered to be
to allay the agitation of inflationists. This view misses the whole
printed in the RECORD, as follows:
point of the action.
Members of the Farmers Union, farmers, and friends, we do
It is not in any sense, a cure-all that the President is accepting.
not know where we are going, but we are on our way-our civi-
It is a part of a general monetary policy. Altogether too much
lization is in a transition. Whether we wish it or not, we are
levity has been indulged in with regard to the claims of silver,
going from the old to a new civilization. We are discarding our
although such .levity is quite understandable. The advocacy of
old clothes-the clothes of the Mellons, the Hoovers, and the
silver has often seized upon its friends with the same evangelistic
Morgans-and putting on new clothes-the new clothes of
fervor as do such doctrines as the single tax. The ramifications
125,000,000 men, women, and children. How well these new
of the subject have led to so much writing and speaking about it
clothes, this new civilization, will fit us depends upon our vision,
that the very volume of advocacy has obscured its importance.
courage, and intelligence; whether the change will be for better
A series of definite governmental acts throughout the world
or for worse depends upon us-the American people. This new
since 1920 has driven the price of silver down by approximately
civilization will be ours; it will not be under-the control of the
75 percent. These included the debasing of silver by Great Britain
international bankers-the house of Morgan. Our sails are set;
and other countries and the attempts of India and Indo-China
we are sailing unknown seas.
to go on the gold standard. One-half billion ounces of melted
On March 4 our President delivered the greatest inaugural ad-
silver were dumped on the world market after 1924.
dress ever given to the American people. He told us on that day
The London agreement provides that the silver hoarding coun-
that we were going to drive the money changers out of the tem-
tries agree to limit their offerings of silver in the world market
ple. Do not get excited, because 2,000 years ago the Nazarene
for 4 years. Various governments have agreed to stop debasing,
also drove the money changers out of the temple, but they got
and, in some instances, to increase the proportion of silver in their
back in; and so, on March 9, within a few minutes after it con-
subsidiary coinage. The United States practically takes its entire
vened, the lower House of Congress passed a bill authorizing the
silver production out of the world market.
printing of $2,000,000,000 of paper money for the money changers.
Such a program is in no sense analogous to Bryan's free-silver
This bill was not printed, and less than 5 percent of the Members
program of the nineties. It carefully avoids the dangers involved
of Congress knew its content.
in Bryanism by making it certain that Gresham's law cannot op-
This' unseeming haste on the part of Congress is nothing new.
erate. It increases the purchasing power of a large part of the
For years Congress has always promptly passed any legislation
248
CONGRESSIONAL RECORD-APPENDIX
JANUARY 8
desired by Wall Street and the international bankers. But when
Then there is the lunacy or just plain craziness which would
the farmers, the laboring people, or the veterans ask for legisla-
have us believe that all our troubles are due to the machine age,
tion which would be for the welfare and benefit of all the people,
This seems to me to be the reasoning of intellectual pygmies
then there is years of endless debate and delay-then Congress
What we need is more labor-saving machines, not less. When I
seems to be deaf, dumb, and blind. This was as true of the
was a youngster and had to put up hay and help harvest and
special session of Congress as of the preceding sessions.
thresh grain I used to pray that someone would come along with
It was the President's intention that this $2,000,000,000 should
sufficient inventive genius to invent a machine to do this work.
be taken and distributed to the four corners of the United States.
I hope that the day is not distant when every farm and every
It was his intention to supply sufficient money-units of ex-
home in this land will have electric lights and when the wife will
change-to transact the Nation's business-but did Wall Street
press a button and electricity will do the washing. I hope that in
and the international bankers take it? They did not. They re-
the future we will have machines that will do the thinking for
fused to take it, because the President felt that they should pay
some of the men we have in responsible positions in Washington.
one half of 1 percent interest or tax to the Government of the
We need more machines, not less, but the benefits must be dis-
United States for the use of this money.
tributed to all. To that extent I am a technocrat.
Of course, the small bankers throughout this Nation would
What, then, is the cause of this catastrophe that has befallen
have been glad to get this money at one half of 1 percent interest
us? It is caused by the monopolization-not of the wealth of the
or tax, but they were in no position to take advantage of this law
country but of the medium of exchange-the monopolization in
and the only way they could get it was through Wall Street and
the hands of a few financial monarchs of the money of the coun-
the international bankers, and they declined it. At the time that
try-the unit of exchange. This was brought about by a skillful
Congress adjourned only $50,000,000 of this two billion had been
manipulation of the currency, by monopolized tariffs, by gambling
taken, and about 3 weeks ago only one hundred and fifty million
in stocks and bonds and the necessities of life. It was brought
had been taken, and this one hundred and fifty million is not
about first by virtually doubling the money in circulation through
in circulation. I have endeavored in vain to get one of these new
the Federal Reserve bank during the war and then by a cruel,
bills, but have been unable to do so.
brutal, and inhuman deflation by virtually cutting the money in
We cannot blame Wall Street and the international bankers for
circulation in two.
not taking this money for the reason that our Uncle Sam prints
When we entered the World War our financiers had already bet
the Federal Reserve notes and gives them to Wall Street and the
on the wrong horse over in Europe to the extent of billions of
international bankers through the Federal Reserve Banking Sys-
dollars; they had given the allied governments credit for war ma-
tem for seven tenths of 1 cent per bill-the cost of printing. It
terials, food, and clothing to that extent. President Wilson real-
makes no difference whether that bill is a dollar bill or a $1,000
ized that in order to win the war the Government-in other words,
bill, or whether they keep it for 1 year or 20 years-all they ever
the people of this Nation, you men and women-would have to
pay Uncle Sam for it is seven tenths of 1 cent per bill, the cost
assume that indebtedness for which our financiers had given credit
of printing.
in the way of war materials, food, and clothing to the allied gov-
Who is this Uncle Sam that is so generous to Wall Street and
ernments. That is how our foreign indebtedness arose. Our
the international bankers. Why, that is the tall gentleman with
Government never loaned a dollar directly to the allied govern-
the high hat and striped trousers. It is you, the American peo-
ments. It merely gave them a credit, and the international bank-
ple-it is the Government of the United States. Our Govern-
ers manipulated that credit in such a way that they got billions
ment prints the money and gives it to Wall Street and the inter-
of dollars out of the $22,000,000,000 of Liberty bonds we bought,
national bankers through the Federal Reserve System for nothing
and the United States Government-which means us-was sub-
save the cost of printing. This, in violation of the constitutional
stituted as the creditor of the allied governments in place of the
provision which provides that the Government shall coin money
international racketeers that had bet on the wrong horse. If
and regulate the value thereof." This clearly means that the Gov-
these international gamblers had not bet on the wrong horse to
ernment of the United States should do the money and credit
that extent, this Government never would have gotten into the
business of the country, but, instead, the money and credit busi-
World War. It would have been over before we got started.
ness of the Nation has been turned over by our Government to
President Wilson knew that in order to win the war our
Wall Street and the international bankers. The amount of this
Government would have to sell billions of dollars of bonds. He
paper money given by the Government in the form of Federal
knew that there was not enough money in circulation among the
Reserve notes, Federal Reserve bank notes, and national bank
people to enable them to buy these bonds, so he suggested to the
notes amounted, in round numbers on April 30, 1933, to
heads of the Federal Reserve bank that they increase the money
$4,300,000,000.
by issuing Federal Reserve notes and putting them in circulation
After your Government had given all this money to those bank-
among the people. Thereupon the local banks throughout this
ers for nothing, it found it necessary to borrow back some of the
Nation took your note and my note and Tom, Dick, and Harry's
money that it gave away. It had to sell bonds. The amount of
note, stamped on the back of them payment guaranteed put
these bonds at the time that the special session of Congress met
them in a nice bundle, sent them to a Federal Reserve bank, and
amounted, in round numbers, to $21,000,000,000. These bonds
received Federal reserve notes, dollar for dollar, in exchange.
bear on an average 4-percent interest, are tax exempt, and both
At the time that we entered the war there was in circulation in
interest and bonds were payable in gold. In other words, these
the United States approximately $4,000,000,000. It is estimated
bankers used the $4,300,000,000 paper money which your Govern-
that 1 billion of this was in foreign nations, that another 500
ment gave them for nothing as a revolving fund with which they
million had been lost since the Government began to make money,
bought the $21,000,000,000 of bonds. So that when the special
some 156 years ago, lost in the fields, destroyed in homes and
session of Congress met they had the $21,000,000,000 tax-exempt
buildings that have burned, leaving about 2½ billion dollars in
4-percent interest-bearing bonds and also had the $4,300,000,000
actual circulation. This was increased during the war to approxi-
of money-the money that your Government gave them for noth-
mately $5,700,000,000. In round numbers, the increase or inflation
ing. At that time your Government was so broke that it could
was approximately $2,000,000,000; the circulating medium-money
not pay its Congressmen, and had to issue and sell to the same
actually in the United States-was more than doubled by the
bankers additional certificates of indebtedness.
issuing of Federal Reserve notes.
The special session of Congress did not give the relief to the
With this additional money, with this extra $2,000,000,000 as a
people that they expected or were entitled to. Many of the laws
revolving fund, we bought $22,000,000,000 of Liberty bonds, bought
passed in the special session of Congress are still largely make-
new farms, new homes, and made countless improvements. There
believe and not real relief. This Nation is still in agony-it is
was plenty of money with which to measure the muscular and
hungry-millions are still in want in the midst of plenty-in the
brain energy of our people; prosperity was almost universal in this
midst of the so-called surplus of food-and yet for some strange
land of ours, and we had the highest standard of living of any
reason the hungry cannot get any of this surplus. Unthinking
nation.
people call it overproduction-reasoning and intelligent people
But disaster was awaiting us; in 1920, while Woodrow Wilson
know that the trouble is underconsumption. They know that the
was a sick man, the international bankers stole the Federal
law of supply and demand still exists-they know that the supply
Reserve bank; suddenly and without warning the Federal Reserve
is here and that the demand is here, but that for some strange
bank began its deflation policy; it suddenly and without warning
reason the law of supply and demand does not function.
called upon your local bank, my local bank, and Tom, Dick, and
There seems to be a sort of national and international lunacy
Harry's local bank throughout this Nation to pay these notes they
which makes intelligent people talk of overproduction and surplus,
had guaranteed. It was at that time that your local bank was
when in fact the so-called surplus is due to underconsumption.
compelled to call upon Tom, Dick, and Harry to pay those notes it
By lunacy I mean just plain ordinary craziness. It is that kind
had guaranteed, and it was at that time that the prosperity of this
of national craziness which impelled the Secretary of Agriculture
Nation was wrecked.
to take his picture with a mule in the doubtful occupation of
It was at that time that the price of the farmers" wheat went
destroying property-of destroying cotton-when those who
down from $2 and $3 a bushel to 80 cents; it was at that time that
planted this cotton are still in rags-when there is hardly a man,
the farmers' steers went down from $125 apiece to $25. By the
woman, or child in the United States that does not need some
end of 1921 the Federal Reserve bank had called in approximately
new clothing that could have been made out of this cotton, and
$1,000,000,000 of the Federal Reserve notes that it had issued in
when there are still millions of men and women unemployed who
exchange for your note, my note, and Tom, Dick, and Harry's note.
would eagerly take this cotton and make it into finished prod-
The first industry to feel the effects of this deflation was Ameri-
ucts-into clothing. It is against international law, even in war
can agriculture. The farmer, being unorganized, was the first to
time, to wantonly destroy property. To the credit of the mule
fall victim to the deflation. He was virtually slaughtered. He
be it said that he refused to become a party to this transaction-
was made the shock absorber of deflation; and had he been able
he declined to step on the cotton that his hoof had been trained
to carry the burden the entire cost of the World War would have
to spare. History will record which in this particular transaction
been thrown upon his shoulders. But, as usual, greed knew no
was the greater statesman, the mule or the Secretary of Agri-
limit-the load it placed upon the farmer became intolerable, and
culture.
he broke down under it.
1934
CONGRESSIONAL RECORD-APPENDIX
249
Most of the farm indebtedness was created during the World
seven tenths of 1 cent per bill, secured largely by bonds-the Gov-
War; during the period of inflation when there was plenty of
ernment's indebtedness. Why not refinance the farmers at 1½
money to measure the muscular and brain energy of our people;
percent secured by better security than debts, by the farms of this
when everybody was at work and when prices were high. Before
Nation?
the price-fixing act became effective and prior to deflation the
When the Frazier bill becomes a law then there will be issued
farmers were getting as high as $3.89 per bushel for no. 1 dark
and put into circulation, among the people, several billions of
northern wheat in Minneapolis and other agricultural products
dollars of new money-Federal Reserve notes. It will again give
were selling accordingly. At that time a thousand bushels of
purchasing power to the people, the farmer will pay his banker,
wheat would have paid an indebtedness of $3,890. Today, 1,000,-
his merchant, his lawyer, and his doctor, and they in turn will pay
000, 2,000,000, or 3,000,000 bushels of wheat will not pay that same
their bills, and all will start in again repairing and improving their
indebtedness, because the farmers are selling it far below the cost
homes, unemployment and starvation will cease, the enforced
of production. What is true of wheat is true of practically all
idleness of 12,000,000 men and women will disappear, and we will
agricultural products. The selling price of practically all agricul-
hear no more of overproduction, consumption will again be nor-
tural products since 1922 has been below the cost of production.
mal-real prosperity-the kind we had in 1919 will again return.
As a result, one may start from the Canadian line in the State
When this bill becomes a law and the Government refinances
of North Dakota and travel south to the Gulf of Mexico, crossing
the entire existing farm indebtedness of 8½ billion dollars, then,
the States of North Dakota, South Dakota, Nebraska, Kansas,
we repeat, the Government will make a profit of 6 billion 345
Oklahoma, and Texas, and all along the line he will see deserted
million at 1½ percent interest in 47 years. But that is not all.
farm homes, broken fences, tumble-down barns, unpainted houses
The farm indebtedness will be decreased by three fifths in 47
in sad need of repair-the very surroundings bespeak poverty and
years because of the low rate of interest. For example, let us
despair where once there was prosperity, hope, and plenty. He
say there is a farmer whose farm is still worth $12,000, who is
will learn of hundreds and thousands of mortgage foreclosures,
indebted $10,000 and paying 6 percent interest on the indebted-
past and pending; he will meet hundreds of thousands of fathers
ness, and that his creditors are proceeding to put him out of
and mothers whose sons and daughters have gone into the already
business. Is there any place where he can protect his home and
overcrowded cities; he will hear from their lips that before the
get refinanced? There is not.
period of deflation they were worth from $25,000 to $50,000, happy,
He cannot get it from the banks because he has no purchasing
prosperous, and contented, and now have either become tenants
power left. He cannot get it from the insurance companies be-
or are about to be evicted, with no place to go. The special
because they bought too many foreign bonds from the interna-
session of Congress did nothing worth while for these people.
tional bankers, who not only bet on the wrong horse to the extent
Such a condition affects not only the farmers, but the Nation
of 15 billion dollars before the war, but who since have sold 15
as a whole. It is a national calamity-it is a disgrace to the
billion dollars of more or less worthless foreign bonds to our
twentieth century and can only be explained by a complete
bankers, trust companies, and insurance companies and charged
breakdown-no; by a complete bankruptcy of political and eco-
them from 3 to 14 percent commission on the swindle.
nomical leadership. We have an overproduction of just one
When the Frazier bill passes, then the Government will issue
thing in the United States, and that is an overproduction, a
Federal Reserve notes and take up this farmer's $10,000 indebted-
superabundance of ignorance on fundamental issues. We have
ness at 1½ percent interest and 1½ percent principal on the
heard of short selling, but one thing is sure-as a Nation in
amortization plan, and to secure the payment take a first mort-
this depression, we are long on short thinking.
gage on his farm. The Government will pay his mortgagor, his
We have at our fingers' tips all that is necessary to bring about
banker, his merchant, his butcher, his grocer, his lawyer, his
doctor, and his school teacher. Yes; his school teacher, because
the greatest prosperity and happiness that this Nation has ever
it will take up his past due taxes. And these in turn will pay
seen. We have too much to eat, so much that one half the
their obligations, and there will then again be sufficient money
farmers of this Nation have lost their homes, and the other half
in circulation to do the money business of this Nation.
are about to lose them in producing it. Again, we have so much
Now, what does this farmer do because of this favor? He
raw material of every kind and description that we do not know
what to do with it; and yet, we have millions and millions and
pays his Government $300 a year for approximately 47 years, or
pays $14,100 to the Government in 47 years, and the farm is
billions of human wants. There is hardly a man, woman, or child
his, free and clear of encumbrances. But we said that it would
in this land that does not need some new clothing or other neces-
reduce his indebtedness three fifths in 47 years. Let us see how
sities, and then there are 12,000,000 men and women out of em-
that is accomplished. Let us suppose that this farmer could
ployment who are eager and willing to take this raw material
find someone that could loan him the $10,000 and save his home
and make it into finished products for us; and yet, the great
at 6 percent interest straight. Then in 47 years he would have
American engine is stalling.
paid $28,000 in interest and still owe the original $10,000, making
Then what is the trouble in this Nation? The trouble is we
$38,000 for what he can get under the Frazier bill for $14,000.
have not enough money in actual circulation to measure the
In other words, the Frazier bill will give this farmer $24,000 new
muscle and brain energy of our people, and we have done nothing
purchasing power within the 47 years. What does that mean
up to this time to remedy the situation.
to you business and professional men and women? It means
I will ask my conservative friends: What is money? What are
that this farmer will again buy paint to paint his home, that he
its purposes and its functions? Money is not gold; it is not
will buy the things that he is so much in need of, and that the
silver. Money as such has no intrinsic value; it is a unit of ex-
wheels of progress will start moving.
change, a measure of values, a common denominator with which
Let us now compare the Frazier bill with the one passed by the
we measure the comparative values of commodities; it is a yard-
special session of Congress, written in New York by an over-
stick with which we measure the comparative values of the things
scholastic college professor who was brought up in the atmos-
produced by the energy of a people. Money is made by law;
phere of money changers. Under this bill, if all the farm indebt-
demonetize gold today and remonetize silver, and gold would be
edness is refinanced, the farmers of this Nation will pay $12,492,-
worth less than silver. Of course, the international bankers want
500,000 in 39 years to the coupon clippers. The difference that
the single gold standard, because they can and have monopolized
the farmers will have to pay in interest between the Frazier bill
it, to the misery of millions and all but the destruction of our
in 47 years and under this bill in 39 years is $6,147,500,000. Under
Nation.
the Frazier bill the Government will make a profit of $6,345,-
The gold standard is the result of a superabundance of ignor-
000,000, and to that extent lessen our taxes that we will have to
ance on the part of the former lawmakers of this Nation. Uncon-
pay, while under this bill the coupon clippers will make a profit
sciously and under pressure these lawmakers were gotten under
of $12,492,500,000.
the control and influence of the international bankers. It was
In addition, under the Farm Refinance Act passed by the special
the international bankers that originated the phrases sound
session of Congress, the farmers will have to buy $47,500,000 of
money fiat money "inflation ", and debasing the currency."
stock in the Federal land bank. On top of that they will have to
These are the phrases behind which the international bankers and
pay 1 percent for administration-that is, if all the farmers could
Wall Street have found refuge and perpetuated a monetary
qualify under that act. The truth, however, is that not over
system that is a disgrace to an intelligent people.
10 percent of the farmers can qualify, because they are restricted
Let us now come to the remedy, the Frazier bill. The Frazier
to 50 percent of the value of the land and 20 percent of the
bill provides that the United States Government shall refinance
insured permanent improvements.
existing farm indebtedness at 1½ percent interest and 1½ per-
This is the price that the farmers and the people of this Nation
cent principal on the amortization plan, not by issuing bonds but
are asked to pay in order to make the Federal land bank and the
by issuing Federal Reserve notes secured by the best securities
joint-stock land bank's bonds good. This is the bill that had its
on earth, first mortgages on farm lands, better security than gold
scholastic birth in New York. It is not real, but make-believe
or silver because you can not eat gold or silver, but you can eat
legislation. The Frazier bill will have to be passed to take its
the products that grow on the farm, therefore your life depends
place in order to save the farms for the farmers.
upon the farm; it is the best security on the face of the earth.
We offer as a further remedy the Norris-Simpson amendment to
If our Government has enough intelligence to do this, it will
the Agricultural Adjustment Act. This amendment was prepared
make a profit of $6,345,000,000 at 1½ percent interest in 47
by John A. Simpson, national president of the Farmers' Union,
years, the time required for amortization of the farm indebted-
and was adopted by the Senate in spite of the opposition of the
ness. This bill asks nothing new. During the war the Govern-
Department of Agriculture, but was finally eliminated from the
ment virtually doubled the money in actual circulation by issuing
bill in the conference committee. This amendment provided that
Federal Reserve notes, secured by commercial and agricultural
the farmers be guaranteed the cost of production for that part of
paper-promissory notes-endorsed by the local banks. Since the
their product which is consumed within the United States. Surely
war the Government has scaled down and refinanced the indebted-
anyone who has the welfare of this Nation at heart cannot object
ness of the allied governments so that on an average it amounts to
to the farmers getting the cost of production for that part of their
less than 1 percent interest. The Government has printed 4
product which is consumed within the United States. No honest
billion 300 million of paper money and given it to the banks at
man or woman expects to eat or wear or drink the things that
No. 4-11
250
CONGRESSIONAL RECORD-APPENDIX
JANUARY 8
the farmers produce below the cost of production. If this bill
of our Nation and of the world. We are more interested in not
had become a law, the farmers would now be receiving $1.50 a
debasing American manhood and womanhood.
bushel for their wheat and similar increases for all other farm
There must be an immediate expansion of the currency or the
products consumed within the United States. There is no over-
Blue Eagle will be the bluest bird in America. We suggest to the
production of wheat this year-there is, in fact, a shortage. If
President that he give us a rational expansion of the currency by
this amendment had become a law, it would not now be necessary
remonetizing silver by Executive order under the provisions of the
for the Department of Agriculture to out-Sanger Mrs. Sanger and
law passed by the special session of Congress, and that he expand
teach pigs birth control-millions that are now unable to eat pork
the currency under other provisions of that law.
would be able to eat it.
To the farmers of this Nation I will say that they will never get
We recommend, to relieve unemployment, the enactment of the
justice at the hands of Congress unless they cooperate and organ-
30-hour week for employees in industry, insurance for unemploy-
ize. I, therefore, suggest that they.join the Farmers' Union, whose
ment, old-age pensions, and such other reasonable relief legisla-
national president, John A. Simpson, is one of the real great men
tion as is worked out and demanded by organized labor. Society
of this Nation. He is one of the real farm leaders who never
at present has to take care of millions of unemployed-why not
cringes or surrenders the farmers' interest in order to gain the
give them an opportunity to make good for themselves?
smiles and good will of some official or politician in Washington.
Finally, we recommend the passage.of the Patman-bill-the pay-
John A. Simpson represents the hope and aspiration of at least 85
ment of the soldiers' compensation in cash; not by issuing bonds
percent of all the farmers of this Nation, and numbers his friends
but by issuing Treasury notes. These notes can be redeemed
in the millions among the business and professional men and
within a few years without any increase in taxes by applying the
women. His monthly radio addresses are eagerly awaited and lis-
money accumulated and accumulating on the veterans' insurance
tened to and discussed by millions each month. No other farm
policies, together with that now used in payment of premiums on
leader knows the farm problem as John Simpson-he does not
these policies.
belong to the high-salaried, silk-stocking, tax-eating brigade of
During the special session of Congress I witnessed several hun-
so-called farm leaders' and is not a yes man." Farmers
dred of our beragged, tired, hungry, disheartened veterans with the
throughout this Nation join the Farmers' Union-organize a local
flag of this Nation marching by the House Office Building with
in your community today. For all instructions write to E. E.
policemen directing them off the Capitol Grounds, and I cannot
Kennedy, secretary of the National Farmers' Union, Kankakee, Ill.
help but think of the difference when these boys proudly marched
To the veterans and to the workingmen may I say cooperate
forth to defend this Nation's honor and future glory, how we
with the farmers of this Nation, and especially with the Farmers'
lauded and praised them then, and what miserable and con-
Union. This organization is and has been your friend through
temptible treatment we have given them since and are giving
sunshine and through rain.
them now.
While these boys went forth, willing to give their lives and their
H.R. 6131
limbs for this Nation, many of the stay at homes wrapped the flag
of glory around them and grabbed everything in sight. They made
millions and billions out of the blood, the tears, and the agony
of an agonized world. During the war we made 17,000 new million-
SPEECH
aires and a few billionaires. But when these boys returned and
OF
asked. not for a just compensation but merely a few paltry dollars
with which to get a start in life again, then we yelled that if they
HON. JOHN W. McCORMACK
insisted upon that they would wreck the Nation; that the national
credit and honor was at stake.
OF MASSACHUSETTS
The treatment of our soldiers and veterans during the war and
since the war is a national disgrace. Quoting from the Chicago
IN THE HOUSE OF REPRESENTATIVES
Tribune of May 21, 1920:
Friday, January 5, 1934
Every soldier knows the training camps were located not for
training purposes but to bring money to favored communities.
The House in Committee of the Whole House on the state of the
Every soldier knows that of the money not deliberately mis-
Union had under consideration the bill (H.R. 6131) to raise rev-
spent, fully one half was wasted, because it was administered
enue by taxing certain alcoholic liquors, and for other purposes.
by miserable incompetents appointed for political advantage.
Every soldier knows what an infinitesimal fraction of war-
Mr. McCORMACK. Mr. Chairman, the gentleman from
time expenditures ever reached the battlefield.
Massachusetts [Mr. TREADWAY] and the gentleman from
Every soldier knows that both comfort at the rear and
Minnesota [Mr. KNUTSON] have another object in view in
his safety on the battlefield was sacrificed.
the introduction of this amendment, and that objective is
" Every soldier knows that throughout the war his interest was
sacrificed to that of the slacker and profiteer.
political in its character.
Every soldier knows that the only suggestion of national
The purpose is to try to have a (Democratic-controlled
economy has been to economize at his expense."
House for the first time in the history of the country use the
At the time that the economy bill was up, I suggested that so
force of the internal-revenue laws for tariff purposes. For
far as crucifying the veterans was concerned, it was false economy.
I suggested you could not bring back prosperity by adding to
the many years that the Republican Party controlled the
human misery. I suggested that we should practice economy
House they never advocated any such precedent as this.
where it ought to be practiced. I suggested that we should give
Our tariff laws are in part for the purpose of protection.
the President authority to suspend the interest on the bonds of
the United States for a period of 3 years. That would have put
Our tariff laws are also in part for the purpose of enabling
the burden of economy where it belonged-upon those who
infant industries to establish themselves and also to protect
profiteered and made millions out of the blood, the misery, and
established American industry against competition from
the tears of an agonized world. Why not in this crisis, if this
cheap foreign labor and from cheaply produced foreign
Nation's credit and honor are at stake, suspend the interest on
goods. Our internal revenue laws were never designed for
these bonds?
To stop the interest on these tax-exempt bonds, I introduced
and such purpose. If this amendment is adopted, it will
a bill in Congress creating the Bank of the United States. When
simply result in a message to the American people and to
this bill becomes a law, the $4,300,000,000 of paper money now
the American business man that an overwhelmingly con-
given to the bankers, largely to the international bankers for
nothing, save the cost of printing, will be taken over by the
trolled Democratic House has adopted an amendment, for
Government of the United States and used as a revolving fund.
probably the first time in the history of our country,
It will permanently retire the twenty-three billion 4-percent
whereby the internal revenue laws are used indirectly for
interest-bearing tax-exempt bonds, and save the Government and
the American people over a billion dollars a year in interest
tariff purposes.
alone. The interest thus saved in 2 years would more than pay
Mr. TREADWAY and Mr. LEHLBACH rose.
the soldiers in full. In addition, the Bank of the United States
Mr. McCORMACK. In just a moment I will yield.
would make a net profit of over six hundred million a year on
I have no objection to a 37½-cent increase on champagne.
doing the money and credit business of the Nation at less than
1 percent interest, thus saving to the American people several
I never drank in my life. So the question of what is to
billion dollars that they are now paying in higher rates of interest
be paid for champagne by way of taxation or tariff does
to the international bankers.
not concern me personally, except insofar as I want a fair
In conclusion permit me to state that the public and private
and an honest and an equitable tax imposed. That is
debt in this Nation is about $250,000,000,000-the total property in
the United States-I mean physical property and not debts-even
something that concerns me as a legislator.
at the high values of 1919, was estimated at $146,000,000,000, and
The adoption of this amendment imposing 5 cents on
is now worth about $70,000,000,000. How are you going to pay
domestic-produced champagne or still wines and 42½ cents
$250,000,000,000 with $70,000,000,000? It cannot be done, unless
we first put more money into actual circulation-not by doubling
on imported-while I have no regard for imported wine-
it in the hands of a few international bankers and Wall Street
will result in the use of the internal revenue laws for tariff
racketeers, but by putting it in circulation among the people of
purposes, and I submit that this is not the proper place
this Nation. Call that inflation or debasing of the currency, and
make the most of it; it will nevertheless be a blessing to the people
to bring about legislative action which is intended to give
1934
CONGRESSIONAL RECORD-APPENDIX
251
assistance to an infant industry or afford protection to
political design, and would probably vote for it as a tariff
American industry.
measure, but the internal revenue laws should not be re-
Mr. LEHLBACH. Will the gentleman yield?
sorted to, and a Democratic-controlled House should not
Mr. McCORMACK. I yield first to my friend on the
permit it to be incorporated in our laws under the guise of
committee, the gentleman from Massachusetts.
an amendment to our internal revenue laws. [Applause.]
Mr. TREADWAY. I yield to the gentleman from New
Jersey.
H.R. 6131
Mr. LEHLBACH. I want to ask the gentleman this ques-
tion. Is it not a fact that in the last Congress the Ways
SPEECH
and Means Committee, of which the gentleman now speak-
ing was a member, in a Democratic House brought in inter-
OF
nal revenue taxes or excise taxes on imported coal and oil
HON. VINCENT L. PALMISANO
and copper?
OF MARYLAND
Mr. McCORMACK. Yes; but the internal revenue tax
was the same
IN THE HOUSE OF REPRESENTATIVES
Mr. TREADWAY. I understood my friend and colleague
Thursday, January 4, 1934
to say in the opening of his remarks
The House in Committee of the Whole House on the state of the
Mr. McCORMACK. It was a tariff provision.
Union had under consideration the bill (H.R. 6131) to raise reve-
Mr. LEHLBACH. No; it was not. It was an excise tax.
nue by taxing certain intoxicating liquors, and for other purposes.
Mr. McCORMACK. But it was applied at the port of
Mr. PALMISANO. Mr. Chairman, to a certain extent I
entry.
agree with the committee on this bill. I feel that a $2 tax
Mr. TREADWAY. I understood my colleague and friend
is a reasonable tax. I am also in accord with the committee
to say at the opening of his remarks, that no tariff item
insofar as the wine tax is concerned, but I differ with the
had ever appeared in an internal revenue bill. I now hold
committee on the so-called beer tax.
in my hand a copy of Public Document No. 154, Seventy-
In looking at the bill you get the impression that the tax
second Congress, entitled
on beer was $6 prior to prohibition, and that they are reduc-
An act to provide revenue, equalize taxation, and for other
ing it now to $5, a reduction of $1. The truth of the matter
purposes.
is that the tax from the year 1862 until the year 1914 was
And let me call my colleague's attention to the fact, as
$1, with the exception of a year or two immediately after
did my colleague from New Jersey, that the Democratic
the Civil War and a year or two immediately after the
Party was in control when this law was enacted, and on
Spanish War, at which time the tax was increased to $2.
page 100 of the act I find, under section 4, the articles enu-
The following was the tax before prohibition: The tax on
merated and the last line reads:
beer from 1862 to March 3, 1863, was $1 a barrel; from
The tax on the articles described in this paragraph shall apply
March 3, 1863, to March 31, 1864, 60 cents a barrel; from
only with respect to the importation of such articles.
April 1, 1864, to June 13, 1898, was $1 a barrel; from June
[Applause.] I submit this fact for the correction of the
14, 1898, to June 30, 1901, during the Spanish-American
statement of my colleague that there never has been a
War, the tax was raised to $2 a barrel; from July 1, 1901,
tariff provision in an internal revenue act.
to June 30, 1902, it was reduced to $1.60 a barrel; on July
Mr. McCORMACK. What my friend has said does not
1, 1902, it was again reduced to $1, and continued at this
cause me to change my statement a bit. I said we had
rate until October 22, 1914.
never before used the internal revenue laws for tariff
I contended before the Ways and Means Committee, as
shown at page 355 of the committee hearings, when they
purposes.
Mr. TREADWAY. But it does inpugn the truth of the
were considering the Collier bill, that we would not obtain
under the $5 tax a 5-cent glass of beer. I contended at that
statement.
time that beer would sell at from $10 to $12 per barrel whole-
Mr. McCORMACK. The tax imposed under that provi-
sale. In the city of Baltimore beer is selling today from $12
sion was imposed at the point of entry. This is a tax col-
to $14 a barrel. At that time our colleague, Mr. Ragon, who
lected internally. That was an increased tariff duty in a
is now on the Federal bench, had this to say, at page 356,
revenue bill, and I opposed that also, collectable at the port
speaking about the nickel glass of beer:
of entry, and the additional tax imposed under this pro-
Mr. RAGON. As I recall, the representatives of the breweries
posed amendment means that it will be collected internally
testified that if we make that tax no higher than $5, they can still
throughout the country. One was a tariff provision in a
furnish the nickel glass of beer. One of them said that what this
revenue bill, and this is the use of internal revenue laws
country needed now more than anything else was a 5-cent glass
of beer.
for tariff purposes. Both are bad, but there is a clear dis-
I contended that that was not so. I stated that you could
tinction between them.
not obtain a nickel glass of beer under those circumstances.
Now, I maintain this is the first time in the history of the
I am asking you, Mr. Chairman, whether you have a
country that through the use of the internal revenue laws
nickel glass of beer in your city or in your State. We. have
of this country, if this amendment prevails and becomes a
it in the city of Baltimore, yes, in the residential section
part of the law, that the internal-revenue law has been used
where cheap rent prevails, but the men who sell a 12-ounce
for tariff purposes.
glass for a nickel are not making a living. They are just
I want to call my colleagues' attention to the fact that
simply working for the breweries.
if this is successful we are starting on another legislative
Let us provide a small profit for the little man who is
journey which is liable to bring many injurious results.
trying to make a living honestly. Give them a tax of $2 on
If we are going to use the internal revenue laws for
beer, and, in my opinion, you will permit them to make a
tariff purposes on this product, why can it not be used on
living.
other things? Why can it not be used on every other raw
Bear in mind that in April, when beer was permitted, we
or finished commodity produced or imported into the United
had in Baltimore, taking that city as an example, two
States? We will simply be starting another vicious indirect
breweries operating. Perhaps a $5 tax at that time was
tariff circle.
somewhat justified, because they would profit by it and the
I submit this is a tariff question, and the matter should
breweries would profit. Today in the city of Baltimore we
be confined to the field of tariff. A Democratic-controlled
have eight breweries. What is the consequence? They are
House, no matter what our personal views may be with
laying off men. They are not producing any more because
reference to there being an increased duty on champagne,
the men cannot pay 10 cents for a glass of beer.
should not adopt such an amendment. I am in sympathy
Let me just give you some information in reference to
with the objective sought by the amendment, outside of its
the reduction of income. Some of the Members will recall
252
CONGRESSIONAL RECORD-APPENDIX
JANUARY 8
I stated on the floor of the House when there was discussion
first instance, but in the second instance make him protect
about $225,000,000 and $250,000,000, that you would not get it.
himself by getting a bond from his tenant that the law will
In July this amounted to $16,644,557.30; in August, $16,301,-
not be violated; and in the event the place is closed down
018.49; and in November, $8,040,943.55. You can see now
I say that the man must give a bond to protect the rent to
when there is more production your income is less. My
the landlord.
contention is that if you reduce the tax to $2 you will give
If the States will adopt a law of this kind, we will never
the farmer an opportunity to sell more grain and you will
have the cry that we had when we asked for the repeal of
cause increased employment in the breweries. You will
the eighteenth amendment. We want temperance; we must
allow the man who desires to sell a legitimate glass of beer
get temperance in the States by a high-license system and
to make an honest living, and you will receive as much
by divorcing the breweries and the distilleries from the retail
revenue from the $2 tax as you are collecting now on a
trade. -[Applause.]
$5 tax.
[Here the gavel fell.]
Mr. MAY. Will the gentleman yield?
Mr. PALMISANO. I yield.
Mr. MAY. Does not the gentleman think we would get
Great Lakes-St. Lawrence Deep Waterway
infinitely more revenue if the tax was $1 instead of $2, in
the same way that you get more revenue from a 1-cent
EXTENSION OF REMARKS
postage stamp on first-class mail than you get from 3 cents,
OF
and for the same reason that when the railroads were per-
mitted to reduce their passenger rates to 2 cents a mile
HON. ALFRED F. BEITER
instead of 3 cents they took in more revenue?
OF NEW YORK
Mr. PALMISANO. I am not prepared at this time to ad-
IN THE HOUSE OF REPRESENTATIVES
vocate cutting the tax down to $1, as it was before pro-
Monday, January 8, 1934
hibition. I think living conditions, at the time I spoke
of, from 1862 up to 1914, were quite different from what
Mr. BEITER. Mr. Speaker, I was informed this morning
that the Great Lakes-St. Lawrence Deep Waterway Treaty
they are today. The working man demands more salary
is on the calendar of the United States Senate fo rconsid-
and I believe that the men and women who are working in
eration within the next few days. If, by any chance, the
the breweries and conducting retail stores and SO forth, are
entitled to a living wage, and I believe a tax of $2 at this
treaty be ratified, it would be a financial tragedy for the
time to protect the Government is a fair tax.
country at large and for the individual taxpayer.
The grave danger confronting us at this moment is
Mr. MEAD and Mr. HEALEY rose.
that the treaty has been backed and is being promoted by
Mr. MEAD. The gentleman's main point is with respect
a well-organized and strongly financed minority, while the
to imposing a tax sufficient to permit the sale of a whole-
large majority of the people who do and should oppose it
some 5-cent glass of beer?
Mr. PALMISANO. That is right, and that is what I con-
are unorganized.
tended in the special session.
The treaty should be given no further consideration until
an official economic survey has been made by a competent
Mr. HEALEY. My question was along the same line.
unbiased United States commission and it can be proved
Does the gentleman feel that if we reduced the tax on beer
to $3 or $2.50 that that would result in a 5-cent glass of
beyond doubt that there will be adequate return on the
gigantic investment that would be required.
beer?
Mr. PALMISANO. You would get a 5-cent glass of beer
It is interesting to consider what are the principal factors,
and I believe the Government would get as much revenue
communities, and individuals which favor and advocate the
as it will get under a $5 tax.
St. Lawrence canalization and what benefits will accrue
We have been talking about the bootlegger and one thing
or may accrue to these factors and to the remainder of the
and another here this afternoon. I stood on this floor advo-
United States.
cating the repeal of the eighteenth amendment, not be-
For many years there has been maintained in the city
cause I personally cared for drink. I advocated it because
of Washington an organization whose only duty has been
of temperance, and the only way you are going to get
to work for and advocate the canalization of the St. Law-
temperance is to have personal responsibility, and the only
rence River. This is the Great Lakes-St. Lawrence Tide-
way you can get personal responsibility is to say to the
water Association. This association has been maintained
States, Cut out the gallonage tax, cut out the excise tax,
by legislative appropriations and donations from lesser or-
and have a good, strong, high liquor license tax, and keep
ganizations in, according to its own statements, 23 States,
the distilleries and the breweries away from the retail
extending from Ohio even to the State of Washington on
trade."
the Pacific coast.
When you do this it will mean that a man who attempts
A large part of the propaganda which has been put out
to get into the business must invest from $2,000 to $5,000
by the said association has consistently stated that this
and if he violates the law you take that license away from
canalization would reduce the cost to American farmers of
him and close up his place of business. From my experi-
exporting grain, thereby increasing the income to the
ence I can guarantee that you will have no violators and
farmer and increasing the value of his holdings. Definite
you will have no bootleggers, because they will not tolerate
active effort to secure this canalization was started shortly
them.
after the war, while Mr. Hoover was Secretary of Commerce,
So I say that when the proper time comes let us adopt
and the basis of the then argument was that the railroads
an amendment.
had been, and would be in a few years, incapable of handling
[Here the gavel fell.]
the traffic to the seaboard from the interior of the United
Mr. DOUGHTON of North Carolina. Mr. Chairman, I
States; that congestion of traffic would thereby be relieved
yield the gentleman 2 additional minutes.
and freight rates reduced. Thirteen years after those prog-
Mr. PALMISANO. Let us adopt an amendment making
nostications the traffic conditions, as assumed, are reversed,
it $2 or $2.50 and let us go back to our various States and
and the railroads are begging for enough freight to pay oper-
advocate a high license tax with a provision that when they
ating expenses.
are convicted of violating the law they will be barred from
These various States which have supported the said Tide-
ever going into the business, and if they own the property,
water Association consist of what may be called the north-
padlock it, if you please, or prevent them from selling liquor
central portion of the United States, and they have been
or beer on such property. I believe in some cases where a
told many times about how much they would be improved
landlord is interested you might make an exception in the
commercially and economically by the canalization of the
1934
CONGRESSIONAL RECORD-APPENDIX
253
St. Lawrence, often being told that it would save 10 cents
The proponents for the St. Lawrence canalization have re-
per bushel on their grain freight rates. Believing in this
peatedly stated that it would save 10 cents a bushel on
propaganda, they have supported this association with their
export grain, but they have never told how this can be
funds.
done when grain is being shipped from Duluth or Port
It will be remembered that a few years ago there was a
Arthur to Montreal for 5 cents or to New York City for 6
tremendous flood in the Mississippi Valley and that some
cents; nor how this amount can be saved when the entire
lives were lost; that there was much suffering and destruc-
cost from the upper Lakes to Liverpool is less than 12 cents
tion of property. Following that catastrophe, funds were
per bushel. Neither have they told their constituents, who
provided by the Federal Government for research and en-
are a few hundred miles from the Lakes and where most of
gineering; following this, many millions of dollars were
the grain is grown, that they were handicapped before
appropriated, and work is now progressing upon plans not
reaching lake ports.
only to mitigate further fiood damage but also to provide
It is realized that corn and oats are produced in the United
water transportation on the Mississippi River and its main
States in greater volume than wheat. In the United States
tributaries, including the Missouri, Ohio, and Illinois Rivers.
in 1928 there was produced three times as many bushels of
Let us now study the St. Lawrence proposition in con-
corn as of wheat, but a large proportion of the former
junction with the Mississippi-Ohio-Missouri work, and also
reaches the consumer in the form of meat, while the latter
in connection with the grain production and movement of
still contains its identity in the loaf of bread. For this rea-
our northerly neighbors.
son wheat is used as a basis of comparison for export as
Beginning in the southerly portion of the proponent area,
well as for transportation over long distances in the United
we will take the wheat-growing State of Kansas-the great-
States.
est wheat-growing State in the Union-and find that the
It is a well-known fact that the great prairie Provinces
center of this State is practically the same distance in a
of Canada, viz, Manitoba, Saskatchewan, and Alberta, are
straight line from the Great Lakes at Chicago that it is
primarily grain-growing areas; also that our mid-West and
from the ocean at New Orleans, but that it is much nearer
central Northwest are foremost in this production. Neg-
to the Missouri and the Mississippi Rivers than to either
lecting the recent hectic years let us study the decade from
of these ports. If the people in the Mississippi Valley really
1919 to 1928 to get an idea of what happened in wheat
believe that the improvement of that stream for navigation
production.
would be of material benefit to them, to the extent of a
In 1919 there was produced in the United States
large portion of the cost of its improvement, why should
934,265,000 bushels of wheat and in Canada 193,260,000
they be SO interested in the canalization °of a river in the
bushels of wheat. In 1928 there was produced in the United
northeasterly portion of the United States which in order
States 902,749,000 bushels and in Canada 566,726,000
to reach they must cross the other improved waterway;
bushels. While the United States showed a decrease of
moreover, what benefit can accrue to the farmer of Kansas
about 28,000,000 bushels, equal to about 3 percent, Canada
when the cost of shipping a bushel of his grain to the
showed an increase of 373,000,000 bushels, or about 200 per-
nearest Great Lakes port is greater from 30 to 60 percent
cent. Of this Canadian total, 96.1 percent was produced in
than it is for the farmer in any of the Northwest Provinces
the three above-mentioned Provinces. If the United
of Canada which lie east of the Rocky Mountains?
States, with a population of 120,000,000, has a surplus with
Now let us see what great benefit can accrue to our people
a production of 902,000,000 bushels, how much more of a
in the Dakotas and Montana from the canalization of the
surplus must Canada have with a population of 11,000,000
St. Lawrence. Certainly they, like the others, cannot expect
and a 556,000,000-bushel production?
the canalization of the St. Lawrence to make it cheaper to
In 1928 the 3 mentioned Provinces of Canada produced
get their grain to our Atlantic seaboard. Therefore they
544,598,000 bushels of wheat, and the 16 States from Ohio
must have been sold upon the idea of export grain and its
to Idaho produced 664,920,000 bushels. Of this latter
influence upon other grain sales.
amount but 12½ percent could reach Lake ports with rates
Maj. Theron M. Ripley, Buffalo, N.Y., an outstanding
equal to those from Manitoba, and only about 40 percent
American engineer, who has made a life study of water
of this total production can reach the Great Lakes with a
supply and power, canals and drainage, makes the following
rate as low as the grain from any of the above-named
statement:
Canadian Provinces.
A comparison of the rates from these States to Duluth with
In view of the foregoing facts relative to the transporta-
those in the Provinces of Manitoba, Saskatchewan, and Alberta to
tion rates to the Great Lakes, would it not be advisable for
Port Arthur, from which points the rates east are the same, shows
those who are personally interested in protecting and
that from neither of the Dakotas can grain reach Duluth for as
small a rate as from many points in the Province of Manitoba,
enlarging the market for the Middle West farmer, to make
excepting along the easterly border of North Dakota; and that an
a careful study not of Lake rates but of rail rates to the
average rate for each of these States is as large or larger than
Lakes? Would it not be well to ascertain why it is that his
the rates for the entire wheat-growing area of Saskatchewan and
Canadian neighbors can have their grain carried 1,250
that they are in competition even with wheat grown in Canada
under the shadow of the Rocky Mountains.
miles for 15.6 cents a bushel, while he must pay 23.7 cents
Although the center of Montana is 330 miles nearer to Duluth
a bushel to have it carried 930 miles; or why his Canadian
than the center of the wheat-growing area of the Province of
neighbor can have his wheat carried to Lake Superior, a
Alberta to Port Arthur, nevertheless the rate between the first two
places is 50 percent greater than between the latter. In other
thousand miles distant, for 14.4 cents a bushel, and he must
words, the wheat reaching the ports of the Great Lakes from the
pay the same amount of money per bushel for a carriage
large wheat-growing areas in the United States is already at a
of 344 miles?
disadvantage with our neighbors to the north to the extent of 5
As a partial answer to the foregoing questions, attention is
to 15 cents a bushel before it is loaded upon a lake steamer. How
do the proponents of this waterway improvement expect this dif-
called to the following quotations from Senate Document
ference to be overcome by improving the St. Lawrence?
No. 107, Seventieth Congress, first session, which was printed
The preceding statements are important enough to be em-
under date of March 15, 1928 (these rates are in force
phasized. In 1930 a revised report was put out by the
January 1934).
United States Corps of Engineers and the Bureau of Opera-
The rates on grain for export from the western Canadian
Provinces to Canadian Atlantic and Pacific ports are lower than
tions of the Shipping Board, and contains the following:
the corresponding rates for export from the northwestern part
It is well known that a saving of as little as one fourth of a
of the United States to American Atlantic and Pacific ports.
cent per bushel will serve to divert substantial movements of
These rate differences appear to be due directly
grain. Indeed, the situation is such that the grain shippers must
to certain charter provisions of the Canadian Pacific Railway.
constantly be alert, not only with respect to the actual rates over
That railway was, in 1897, granted a charter to build a line from
the various routes but also the conditions affecting the prompt-
Lethbridge, Canada, through the Crowsnest Pass into British
ness of movement, the situation at the terminal elevators, etc.
Columbia, and was given a subsidy of $3,500,000 and a land grant.
254
CONGRESSIONAL RECORD-APPENDIX
JANUARY 8
In return it agreed
to reduce the then existing rates
The Use of Our Remaining Public Domain
from the western Canadian Provinces to Lake Superior ports by
3 cents per 100 pounds, and to maintain such reduced rates in
perpetuity unless otherwise authorized by the Canadian Govern-
EXTENSION OF REMARKS
ment.
OF
The three western Provinces of Manitoba, Saskatchewan,
and Alberta produce 96 percent of all Canadian grain pro-
HON. EDWARD T. TAYLOR
duction. We quote again:
OF COLORADO
The rail policies of Canada and the United States are somewhat
IN THE HOUSE OF REPRESENTATIVES
different. In this country there is private ownership and manage-
ment of common carriers, and such carriers are wholly dependent
Friday, January 5, 1934
upon revenue derived by them from transportation. Practically
all the railroads mileage in Canada is owned by two systems, the
STATEMENT OF HON. HAROLD L. ICKES, SECRETARY OF THE
Canadian National and the Canadian Pacific. The former em-
INTERIOR
braces most of the weaker and high-cost lines and is owned by
the Government of Canada. In 1925 the Canadian National failed
to earn enough to pay interest on its debt by $42,197,664. and
Mr. TAYLOR of Colorado. Mr. Speaker, under leave to
in 1926 failed to earn its interest by $29,894,072
These
figures do not reflect in full the extent to which the Canadian
extend my remarks in the RECORD, I insert a statement by
National failed to earn its operating expenses and a reasonable
Hon. Harold L. Ickes, Secretary of the Interior, on the sub-
return upon its investment, as the deficits shown do not cover
ject of the orderly use, administration, improvement, and
such part of the investment in the Canadian National, which is
represented by any other form of capital than interest-bearing
preservation of our public lands. His statement is in the
form of an interview which appeared in the Saturday Eve-
debt.
The Canadian Pacific is thus in a position to charge lower rates
ning Post of December 23, 1933. The bill to which the
than would be possible if rates were made in Canada as they are
Secretary refers is H.R. 2835, introduced in the House on
in this country, with a view to providing a fair return upon the
aggregate value of all railroad properly including the weak lines
March 10, 1933, at the extra session. It was a copy of the
as. well as the strong.
bill as it passed the House and failed in the Senate in the
In 1931 the deficit of the Canadian National Railway was
Seventy-second Congress. I have eliminated the defective
in excess of $84,000,000. In other words, the people of Can-
provisions he mentions and reintroduced the bill as H.R.
6462 on January 5, 1934. The Secretary's most timely,
ada paid over $1,600,000 a week, in taxes, in order to operate
thoughtful, and public-spirited statement is as follows:
their railroad.
Computed on a per mile-of-road basis, railway tax accruals in
THE NATIONAL DOMAIN AND THE NEW DEAL
Canada in 1926 were approximately $267 per mile and in the
(An interview by Marquis James with Harold L. Ickes, Secretary
United States, $1,591 per mile. If the tax accruals in the United
of the Interior)
States were on the same basis per mile of railroad as in Canada
Here is a small piece of paper containing a few lines hastily
they would have been approximately $330,000,000 less.
written with a lead pencil. It is unsigned, but perhaps you might
If relief is to be given to grain growers of our Middle
recognize the angular handwriting of the President of the United
States. Let me read to you what he has written:
West and Northwest, in order to put them on a parity for
Total dams and ditches, $13,500,000; hydroelectric, 6,000,000;
export with our Canadian neighbors, the foregoing facts
first year, $4,500,000; acres to be irrigated, 60,000; elimination sub-
demonstrate that a subsidy should be paid to the railway
margin, 300,000; subtract 60,000; total elimination, 240,000."
I intend to preserve this paper. It is interesting now. To my
carriers large enough to permit them to lower the rates on
grandchildren it will be more so, as one of the acorns from which
grain to the lake ports or the seaboard in parity with their
great oaks have grown.
competitors to the north. Such a subsidy would not only
The foregoing sets forth, in its shirt sleeves, the latest and most
benefit the farmers but permit the railroads to maintain
authoritative advices I have at hand on a pertinent phase of the
spacious subject of our national domain and its conservation.
their equipment, retain their employees, and prevent many of
The President jotted it down as we talked a few days ago. As
the security holders from going bankrupt.
everyone knows, reclamation of farming lands by irrigation is one
In 1931 the Court of Chancery of the State of New York
arm of the diverse policy of conservation. That means bringing
in more acres of tillable soil, and, quite naturally, the question
wrote:
arises: Why should we add to the sum of farming lands on the
Railroads are public improvements from which the public de-
edge of the desert when, to get rid of the surplus of farm produce,
rives a benefit, and the legislature can appropriate the private
we are having farmers in the old-established agricultural belts
property of an individual for the purpose of such improvements,
plow under standing crops? If that were all there is to irrigation,
or may authorize an individual or a corporation to thus appro-
there would be no excuse for it; and such, indeed, has been the
priate it upon paying the just compensation to the owner for the
old irrigation policy.
same.
But under the new set-up the case takes on a different color.
This quotation is one of the bases upon which Chancellor
By this policy, for every acre brought in by reclamation there will
be withdrawn from cultivation, or attempted cultivation, sub-
Walworth based an opinion relative to the right of a railroad
marginal lands of equal producing capacity, the ratio being about
corporation to take private property. Attention is called
5 acres withdrawn for every acre brought in.
particularly to the first part of this quotation: Railroads
The President's memorandum portrays a hypothetical example.
We engage to spend on irrigation dams and ditches $13,500,000,
are public improvements.
say, and for hydroelectric equipment $6,000,000 more; the first
If the lawmakers can justify themselves in creating
year's expenditure being $4,500,000. Assume that ultimately this
statutes which will turn over public money to farmers or any
will transform 60,000 desert acres into crop-bearing soil, every
other private individuals, how much more would they be
acre of which, productively, will be worth 5 acres of submarginal
land. Thus 300,000 acres of poor land will be retired, and we shall
justified in turning over public moneys to a corporation
have 240,000 fewer acres in production than before.
operating a public improvement." It would be much better
WHAT THE NEW LAND POLICY WILL DO
to give the grain grower a chance for equal competition
This exemplifies a good land policy, a good conservation policy,
than to hand him a dole of a few dollars, and then take
a good social policy. Think what it will mean to the poor devils
part of it away from him in taxes to pay for waterway im-
now eking out a squalid existence on soil which, in this, country,
provements which would not help him and for which no
one has no business trying to farm, to put them on land where,
with the same or less effort, they can enjoy their share of the de-
proof of their economic justification has been confirmed.
sirable things of life. In 1929, which was a pretty good farm year,
This and fiction, theory and condition, hope and belief are
28 percent of all the farms in the United States produced less than
at present so thoroughly mixed in general discussions of the
$600 apiece; and this production comprised only 3.38 percent of
proposed canalization that a thorough unscrambling must
all farm products sold in the United States. Forty-nine percent
of our farms produced less than $1,000 apiece, and this production
be made before any step, which cannot be retraced, is
was less than 11 percent of tfhe national cash farm income.
taken.
This shows where approximately half of our farm population
I have endeavored to place these facts before you, so that
stands today. As for their influence on production and on the
when the details of the project are submitted to the Mem-
surplus-why, it amounts to only slightly more than the effect
of a couple of good seasonable rains in the Corn Belt.
bers of the Senate you may be able to render them your
We are ascertaining for the first time the amount of poor land
verdict in the dispassionate light of fact and reason.
that should be retired from cultivation, and in round figures it
1934
CONGRESSIONAL RECORD-APPENDIX
255
seems to foot up to something in the neighborhood of 25,000,000
genesis of the great sheep and cattle wars in the early days of the
acres.
powder-stained West. Animosity between sheepmen and cattle-
We have learned to take the bird's-eye view and to zone our
men is not uncommon today, but instead of shooting it out, as
cities, directing that in this area we shall have residences, in this
they did in the olden days, they have recourse to the local courts.
retail stores, in this manufacturing. We now undertake to achieve
These courts can determine who shall use the range as between
a grand vision of the whole country, saying that this land shall
rivals, but they cannot restrict the extent of its use. Thus the
be cropped, this shall be range, this shall be forest, this shall be
fundamental evil of the destruction of the range continues.
worked for minerals. In this way, and no other, can we properly
The cattlemen, like the oilmen, the coalmen, the timber-
conserve-that is to say, use wisely-our natural resources and
men, and every one of us who has had anything to do with
provide for a more equable distribution of their bounties.
the utilization of our resources of nature, have played a short-
We have reached the end of the pioneering period of go ahead
sighted game. We are all tarred with the same stick, and in
and take. We are in an age of planning for the best use of
no quarter of the country have we learned our lesson except
everything for all. We must ultimately pull out from low-scale
when those natural resources have been exhausted or seriously
agricultural production, with its attendant evils of low-standard
depleted. Why are so many of the leading conservationists
living, some millions of acres of submarginal lands. One fifth as
Easterners? Take President Roosevelt, Gifford Pinchot, T. R., Rex-
many good acres will take care of the people now scratching them
ford Tugwell, Henry Morgenthau, Jr.-all are from east of the
for an existence and will open for these people the gates of a
Appalachians, where the people are now paying so dearly for
happier life. The abandoned acres should pass back to the con-
the acts of their lusty pioneer forebears. Our cattlemen have
trol of the Federal Government to be administered for the benefit
merely carried on a great American tradition.
of the Nation as a whole. In the East this land largely should
It is illegal to fence the national grazing range, but during
be added to our national forests.
the war, when it was necessary to overlook a number of precedents
In the West, generally speaking, it should revert to the public
and ignore a good many laws, permission was granted to erect
domain as an addition to our grazing ranges. The Indians, who
fences on parts of the public domain in Arizona and in New
are badly in need, should also get their share. By such redistribu-
Mexico. When the emergency passed, the fences were ordered
tion this soil will be of vastly more service to society than as crop
down. Pressure was brought to bear and the fences stayed
land whereon a sizable proportion of our farming population
where they were, making, in effect, private preserves of the
struggles in vain to make a decent livelihood.
public range. Order has succeeded order, but the fences remain.
As to water power, the alternative is to turn it over to private
I have directed that they shall be removed, and intend that this
interests for exploitation or to retain it is a public trust for
order shall be obeyed, even if it means some activity on the part
public use. I believe in developing public resources for the benefit
of the United States marshals. I do not anticipate, however,
of the public, and do not see why we should hand them over to
that this will be the case. I feel that we shall soon have a
someone and tell them to make a profit. Almost all reclamation
new deal for the public domain that will mean so much for the
projects are susceptible of water-power development.
cattle industry and SO much for the country that this small, if
BIG WRITER TO BE BIG RIGHTER
vital, issue of the fences will solve itself in the right way.
And one more parenthetical word about the Indians. They
TRUE CONSERVATION
bring up a conservation problem of a special sort-a matter of
human and spiritual values rather than material values entirely.
In 1928 my predecessor in charge of the Department of the
Creek Indians of the old generation in Oklahoma have a word
Interior obtained authority from Congress to undertake an experi-
for the Secretary of the Interior that contains a certain amount of
ment. Some of the poorest grazing land in Montana lay in the
irony. Translated, it means big writer." A century and a half
Mizpah River-Pumpkin Creek area in the southeastern part of the
of wrongs perseveringly visited upon the Indians have done much
State. It had been abused until it hardly was fit for anything.
that is beyond repair. But as long as I am big writer, there will
The Department obtained permission to segregate 108,000 acres,
be no more thievery of Indian water rights and a dipping into
part of it public domain and part privately owned, but of little use
tribal funds for the construction of fancy roads and bridges for
to the owners. This land was withdrawn from grazing and given
white tourists to ride over.
a rest. Then it was leased to a privately organized association for
Since 1904 our unreserved and unappropriated public lands have
$20 a section-a section being a square mile, or 640 acres. The
shrunk from 473,000,000 acres to 173,000,000. Much of this vast
association undertook to lease it to cattlemen at $1.25 a head.
domain was taken up as farm and cattle-raising homesteads. That
It put up fences, made water holes, dipping sheds, and other
a considerable part of it was unsuited for those purposes, the pres-
improvements; and it regulated grazing. The result after 3
ent state of the agricultural proprietor and of the small stock
years is that there is twice as much grass in the Mizpah as be-
raiser who has tried to make out on a homestead of 640 acres,
fore, although the carrying capacity has been increased from
bears conclusive testimony. With all good intentions, the Govern-
3,000 to 5,000 head. Moreover, I have been told that the calves
ment has been a party to an unsound business allurement from
last year weighed on an average 12 pounds more than in any
the effects of which a great many of our citizens have suffered
previous year before grazing was regulated on that range.
and are suffering. Thiswrong we propose to correct, making the
This is true conservation, which, I repeat, does not mean hold-
Government a party to the retirement of poor lands from cultiva-
ing a public resource in idleness, but using it wisely.
tion and to the voluntary relocation of the people who are trying
The success of the Mizpah River-Pumpkin Creek experiment has
to cultivate them on better properties.
brought numerous requests from different parts of the West for
Moreover, I propose to exert my influence to retain our 173,000,000
permission to form similar associations and work out the grazing
acres of public domain, and whatever may be added to it, under
problem under Federal supervision on other segments of the
the control of the Federal Government, rather than to grant it to
public domain. I feel, however, that rather than deal with the
the States in which it lies. One school of conservationists favors
matter piecemeal, it would be wiser to deal at one swoop with
this latter course. I oppose it because I feel certain that the
the whole public domain by giving this Department authority to
selfish and short-sighted influences which have done so much to
regulate grazing on it, which, as a matter of fact, should have
plunder our public domain and bring upon our heads the problems
been done many years ago. Accordingly, last March there was
that now vex us would find it much simpler to have their way
presented in the House of Representatives by Mr. TAYLOR of
with State governments than with the National Government.
Colorado a bill whose objects were defined in this language: To
Especially will this be true when the arm of the Federal Govern-
stop injury to the public grazing lands by preventing overgrazing
ment is strengthened by the contemplated reforms which I hope
and soil deterioration; to provide for their orderly use, improve-
within a few months will have the sanction of law.
ment, and development; to stabilize the livestock industry upon
The public domain, exclusive of mineral properties, performs an
the public range, and for other purposes."
important function in our social and economic scheme. These
This bill was prepared in collaboration with the Department of
173,000,000 acres are situated largely in the 11 Western States of
Agriculture and had the benefit of its long experience with this
Arizona, California, Colorado, Idaho, Montana, Nevada, New Mex-
problem. In the national forests, which are under the jurisdiction
ico, Oregon, Utah, Washington, and Wyoming, and these States
of the Department of Agriculture, grazing is regulated, and there
produce about half of the sheep and one sixth of the cattle that
has been no such deterioration of the range as has occurred on
are raised in our country. By a decision of the United States
the public domain. This bill was passed by the House, but the
Supreme Court, the public lands are a grazing common for the
Senate did not have time to act on it before adjournment. When
use of the public.
Congress convenes again in January this bill will be punctually
reintroduced.
THE IMPORTANCE OF A BLADE OF GRASS
The proposed legislation gives the Government an authority
The Department of the Interior is charged with the administra-
over its grazing lands that it should have possessed long ago, and
tion of these lands but has very limited authority to control their
will do for this great domain all and more than has been done
use. The result has been tragic. Many years ago a member of the
in Montana by means of the Mizpah experiment. As drawn,
Geological Survey contemplated the bleak prospects of a grazing
however, the bill contains one serious defect. This is a provision
range, upon which the very roots had been eaten, and recom-
that the act shall be ineffective in any State without the approval
mended that there be some authority to regulate grazing. He
of the legislature of that State, and further provides that State
pointed out that without such regulation overgrazing destroyed
lands may be lumped with Federal lands in a jointly adminis-
the cover. Next season one found the grass depleted, and the
tered project. I am opposed to this for the same reasons that
stock ate out the roots. Then erosion set in, the headwaters of
I am opposed to transfer of our public domain to State control.
the streams silted up, and there were floods below-all traceable
The local political pressure for a return to the old evils would
back to overgrazing.
be a thing not easily resisted. But with this one section amended,
As matters stand now, there is no authority to prevent over-
I hope and expect that this great piece of legislation will be en-
grazing. I can go out with a thousand cattle and pick a range
acted at the coming session of Congress, and I cannot neglect this
bare of everything that a cow or a steer will eat. You can follow
opportunity to urge my fellow citizens to support it.
with a herd of sheep. Sheep browze more closely than cattle, and
To the lay mind, the word conservation" usually connotes
they can subsist on a range where cattle will starve. Sheep will
the work that has been done to preserve our forests and to create
eat and tread out the roots of the grass. This situation was the
and maintain our national parks; and this, indeed, is an im-
256
CONGRESSIONAL RECORD-APPENDIX
JANUARY 8
portant aspect of the problem. A forest is the most highly de-
Suppose that you owned 5 acres. Would you go out and cut
veloped of the natural social organizations of the vegetable king-
down every tree and burn it in the fireplace? We have 5 acres
dom and the most useful. A forest is a community of trees, as a
at our place in Winnetka, north of Chicago. When the house was
city is a community of human beings, and had there been no
built in 1916, a few trees had to be removed. These filled the
forests in this country there would be fewer cities.
cellar with firewood. Since then I have cut down only dead trees
and worked up the windfalls, and the cellar is still filled. And J
JEFFERSON MISSED HIS RECKONING
do not have a billboard on the front lawn.
In a forest there is a struggle for existence, it is true, with each
We must get a sense of personal responsibility toward the na.
tree fighting to obtain its share of the good things of the uni-
tional resources as a whole. That is all there is to conservation.
verse, but, on the other hand, a forest is a cooperative commu-
If we do not, we waste; and if we waste, we find ourselves in the
nity in which each tree helps its neighbor and contributes its
hands of the sheriff, as the coal industry has done.
part to the common protection of the young. A forest perpetu-
BUYING BACK A GIFT
ates the richness of its own soil. Its influence on streams averts
floods and droughts. It sustains a population of animals and
Conservation is economy. Consider Chicago. The early fathers
has made large sections of this continent habitable for man,
were open-handed go-getters. They pressed miles of the beautiful
aside from the contributions to man in the form of fuel and
Lake front upon a railroad. Our generation is taxing itself hun-
building materials. The disappearance of forests has rendered
dreds of millions of dollars to get back that lake front. When we
millions of acres of our country so inhospitable to man that
cut down a tree that has been a hundred years growing and make
wisdom suggests that the residents move out and give this land
a house of it, we think we are being progressive. But, unless steps
an opportunity to recruit its life-sustaining powers as a part of
are taken to replace that tree, another generation will pay a heavy
the public domain.
cost for our lack of imagination and of regard for the rights of the
Seven eighths of the eight hundred and odd millions of acres
other fellow.
of virgin forest within the bounds of the United States already
One afternoon I got to my home in Winnetka earlier than usual,
have been destroyed, and, though abuses continue in what re-
and while walking about the grounds I found a woman inside the
mains, the lumbering interests have awakened to the grave nature
fence filling a market basket with flowers.
of affairs. Originally lumbering was centered in the Eastern
I asked her if she was aware that she was on private property
States. These forests denuded, it moved into the Hardwood Belt
The inquiry did not disturb her. " Oh", she said, I thought
in the Middle States and into the Lake region. Then it went
it would be all right."
south. Now it is on the Sierra slopes and the Pacific Northwest,
That's the trouble. We've always thought it would be all right.
which is the last stand. Wasteful lumbering and fires have de-
We are not woods broke. We see something lovely or useful-
stroyed these forests, which, with the buoyance of youth,
and we reach and take. A century of this, and behold the evils
pioneer American enterprise deemed inexhaustible. As thought-
that have followed in its train; depleted timber and mineral re-
ful a man as Thomas Jefferson reckoned that it would take
sources; depleted ranges, erosion, and floods; millions of acres
civilization 100 generations to march from the Appalachians to
rendered unfit to support human life decently. Now, what are we
the Pacific. He missed it by 95 generations.
going to do-go out and correct these conditions, complex as they
About half of the timber available for lumbering is in private
have grown, and painful and expensive as readjustment at this
hands, and half lies within the Federally owned and protected
late date may be in some of its details, or shall we fold our arms
national forests. That in private hands supplies 97 percent of
and say that these things are the way of the world and no help
the current lumber production. Of late years lumber com-
can be found for them?
panies have undertaken reforestation on a large scale.
NATIONAL FOREST ADDITIONS
The Sugar Industry in the Philippine Islands
I am unwilling, however, to intrust the entire problem to
private owners. If it had not been for the far-seeing and compe-
tent administration of our national forests by the Department of
EXTENSION OF REMARKS
Agriculture, the situation would be much worse than it is. There
OF
should be large additions to our national forests, which now cover
barely one fifth of our possible timber-growing areas. The young
HON. PEDRO GUEVARA
men of the Civilian Conservation Corps have in 6 months accom-
plished as much that will enhance the happiness of coming gen-
RESIDENT COMMISSIONER FROM THE PHILIPPINE ISLANDS
erations as has been accomplished by all other agencies dealing
with reforestation in the past 15 years. They have planted trees
IN THE HOUSE OF REPRESENTATIVES
on national land, State land, county land, and private land.
Monday, January 8, 1934
Nature and time will do the rest. And most people thought that
this work was simply an excuse for taking a quarter of a million
idle youngsters off the streets.
STATEMENT OF HON. RAFAEL ALUNAN RELATIVE TO THE
Moreover, $20,000,000 from the C.C.C. funds have been set aside
SUGAR INDUSTRY OF THE PHILIPPINES
for the purchase of new lands to be added to the national forests.
The National Forest Reservation Commission has in mind the
acquisition of approximately 42 tracts aggregating 7,280,000 acres.
Mr. GUEVARA. Mr. Speaker, under leave to extend my
This will exhaust the fund. These units are located in 14 States,
remarks in the RECORD, I include the following statement re-
the westernmost of which is Minnesota. Four of these States—
Missouri, Illinois, Kentucky, and Mississippi-now contain no
garding the sugar industry of the Philippines prepared by
national forests.
Hon. Rafael Alunan, president of the Philippine Sugar Asso-
In the far West, territory is being added to the national forests
ciation and formerly secretary of agricultural and natural
under the General Exchange Act by swapping land for land and
resources and secretary of finance of the government of the
land for stumpage. No money payments are involved.
The conservation of scenic values is one of the most interesting
Philippine Islands:
and worthwhile of our efforts, and it is a thing that cannot be
PRIOR TO AMERICAN OCCUPATION
done by the Federal Government alone. It must reach down to
Long before America went to the Philippine Islands, the sugar
every village and community in the land. Grand Canyon, Yosem-
industry was in a highly developed state, Philippine sugar being
ite, Glacier Park, Acadia, the Great Smokies-the very names ex-
able then to compete in the world's markets. In 1855 the Philip-
pand the heart. But what would they have meant to us if the
pines exported 53,172 short tons of sugar. By 1875 the sugar ex-
Government had not taken them in hand? Private interests will
ports of the islands had increased to 141,218 short tons, and in
exploit anything. They would put a sign on the Washington
1895 the Philippines reached its record of sugar exportation under
Monument if you would let them. How often have you gone
the Spanish regime, exporting 376,401 short tons of sugar that
through the country and seen a beautiful, majestic boulder turned
year, a figure which was not exceeded until 1922.
into an advertisement?
During the 6 years of warfare caused by the Philippine revolu-
We are approaching a time when we shall have more leisure.
tion in 1896 and the conflict with the United States lasting until
What better use can be made of it than just wandering about,
1902, the sugar industry was ruined and paralyzed to such an ex-
looking at the scenery? Take the range: North in the summer,
tent that for over 10 years after American occupation sugar ex-
South in the winter, California at all times. But we must edu-
ports of the islands decreased to negligible quantities.
cate our people to a sane use of leisure. For one thing, I hope to
FIRST 10 YEARS UNDER AMERICAN SOVEREIGNTY
see the system of national parks greatly enlarged. There are in-
spiring, beautiful places in nearly every State in the Union which
In the Treaty of Paris, providing for the cession of the Philippine
could be set aside as national parks with profit to all.
Islands by Spain to the United States, the following provision was
They should be joined by great roads. The other day I listened
included:
to Senator Byrd, of Virginia, as he sketched his vision of a road
Article IV. The United States will, for the term of 10 years
a hundred feet wide from the Shenandoah to the Great Smoky
from the date of the exchange of the ratifications of the present
National Park. The President amplified the picture. He said he
treaty, admit Spanish ships and merchandise to the ports of the
would like to see the road begin at the Canadian border in Ver-
Philippine Islands on the same terms as ships and merchandise
mont and sweep down through the Green Mountains, through
of the United States."
the Berkshires and to the Blue Ridge, joining the Senator's project.
In view of this provision of the treaty, free trade between the
This would be a great thing, a great thing for the interior life of
United States and the Philippines could not be established until
our people. There shouldn't be a billboard in sight. The right-of-
the expiration of the 10-year period provided for in said treaty.
way should be landscaped and planted like the Bronx River Park-
However, in view of the appalling condition of the sugar in-
way and contiguous systems leading north from New York City.
dustry of the islands as a result of the ravages of war and revo-
It costs little to set out trees when a road is built. Then, in 25
lution, in response to the pleas of the American Civil Governor
years, see what you have.
and American members of the Philippine Commission, Congress
1934
CONGRESSIONAL RECORD-APPENDIX
257
passed, on March 8, 1902, the Philippine Tariff Act, providing,
Puerto Rico, Java, Formosa, and other sugarcane producing
among other things, that articles that were the growth and
countries when those countries changed their methods of manu-
product of the Philippine archipelago going into the United States
facture from the antiquated mills to the modern factories. For it
were given a reduction of 25 percent of the rates of duties im-
is a well-known fact that the wooden carabao mills then in vogue
posed by the United States under the Dingley Tariff Act of 1897.
in the islands could only extract 30 or 40 percent of the sugar
FREE TRADE WITH THE UNITED STATES
content of the cane while the modern sugar central factory re-
On August 5, 1909, Congress passed the Payne-Aldrich tariff law,
covers as much as 92 to 95 percent of the sugar in the cane.
establishing free trade with the Philippine Islands and allowing
Had the cane harvested in 1895, which turned out a production of
sugar free entry into the United States to the extent of 300,000
431,000 short tons, been milled by the modern centrals now
tons.
established in the islands, the result would have been a produc-
tion of about 1,100,000 short tons.
During the consideration by Congress of this legislation propos-
ing free-trade relationship between the Philippines and the United
For the 5-year period, 1902-3 to 1906-7, Cuba produced an
States the Philippine people opposed the adoption of this measure,
average of 1,300,000 tons. Ten years later, from 1912-13 to
and through their Philippine Assembly, on March 27, 1909, adopted
1916-17, Cuba almost trebled its production to 3,100,000 short
tons.
a joint resolution petitioning Congress not to establish free trade
on the ground that, in the words of the petition,
Free
Puerto Rico, for the 5-year period, 1897-1901, produced annually
trade between the United States and the islands would in the
an average of 69,000 short tons. Five years later, 1902-6, it
future become highly prejudicial to the economic interests of the
more than doubled its production to an annual average of 155,000
Philippine people and would bring about a situation which might
short tons, and still 5 years later, from 1907-11 it quadrupled
hinder the attainment of the independence of the said people."
its production to an annual average of 285,000 short tons.
It is pertinent to record here the statement of the venerable
Hawaii had an average production for the 5-year period
former Senator Elihu Root, who, when addressing the Senate on
1895-99 of 227,000 short tons. The following 5 years, from
this subject in connection with the passage of the Payne-Aldrich
1900-1904, its production increased to 362,000 short tons, or an
bill in 1909, establishing free trade with the Philippine Islands,
increase of 60 percent, and for the next 5 years, from 1905-9
expressed the Republic viewpoint in the following words:
Hawaii had an average production of 470,000 short tons, or more
Mr. President, we have some duties to the Filipinos. I am
than double its production of the past 10 years.
sure no Member of this body really desires to bring about a
The modernization of the sugar industry of the islands, which
separation between the Philippine Islands and the United States
has taken place in the past 2 decades, has now been completed
by making our administration of the government of those islands
with the establishment of 44 modern sugar factories, with a nor-
a failure, by making the guardianship of the United States the
mal productive capacity of 1,400,000 short tons, in the districts
cause of injury rather than a benefit, the cause of disaster and
where formerly thousands of antiquated muscovado mills were in
operation for centuries.
poverty rather than of prosperity and growth.
The die is cast, Mr. President, upon which we have the re-
There has been very little increase in the acreage for sugar-
sponsibility for the Philippine Islands. No action of ours can
cane in the Philippines since the Spanish regime. In 1895, when
reverse it. The good faith, the good name, the honor of the
the Philippines produced its record production of 431,000 short
American people are all pledged to lead the people of the islands
tons, there was planted to sugarcane that year at least 500,000
on bypaths of growing prosperity and capacity for government to
acres of land, as compared with 596,000 acres planted in 1921,
the point where they will be capable of supporting and governing
and 633,000 in 1931. As a matter of fact the recent increase in
production was mainly due to increased yields resulting from
themselves.
We cannot fulfill that high duty by giving them money.
the substitution of the old native cane with new higher yielding
cane varieties.
Gifts of money tend to reduce the independence of
EFFECT OF THE AMERICAN TARIFF
the individual character. We cannot fulfill the duty of making
the islands unsuccessful in business, by retarding and confining
By virtue of the free-trade relationship which exists between
their industry. We can fulfill it only by giving to them the
the Philippines and the United States, practically all of the Philip-
opportunities to national power, to grow in the accumulation of
pine sugar exported abroad goes to the United States where it
property and the diffusion of wealth, lying at the foundation of
enjoys a preferential-tariff immunity of 2 cents per pound, as
civilization. We can fulfill that duty by making the people of
compared with Cuban sugar, and 2.5 cents per pound, as com-
the Philippines at once prosperous and intelligent."
pared with foreign sugar. With the tariff preference Philippine
In 1913, when the Democratic Party came into power, Congress
sugar can compete with Cuban sugar and other foreign sugars in
enacted the Underwood-Simmons Tariff Law. on October 5, 1913,
the American market. If subjected to a tariff of 2.5 cents (or
which moved the restrictive provisions of the previous law of
even 2 cents) gold per pound, Philippine sugar could not be mar-
1909 with respect to sugar and tobacco. Congressman Underwood,
keted in the United States at the present time.
who sponsored the bill, explaining the removal of these restric-
The Philippine sugar industry has thus been developed within
tions on the floor of the House, stated as follows:
highly protective tariff walls both at the market in the United
The change in this paragraph of the bill is largely striking
States and at the place of production in the Philippines, with the
out the limitation on the importation of sugar, filler and cigar
result that the industry cannot survive world's competition if the
tobacco, and wrapper tobacco. We may leave the limit where it
American tariff protection is withdrawn.
is, but we would leave it where it is to the shame of every
POLITICAL, SOCIAL, AND ECONOMIC EFFECTS
American citizen. We could not honestly face those dependent
Being the most important industry, sugar has brought to the
people who give us free trade in their markets if we close our
people of the islands immense benefits affecting their social, eco-
doors here. Because we do not want to stand and face that world
nomic, and political life. These benefits may be summarized as
in such a position as that and say (to the Filipinos) that under
follows:
our law we command you to open the door, SO that American
(1) With the investment of approximately 250 million dollars
goods can flow into your country, because we have the power to
the country has increased its wealth-producing capacity. This
do it, and then turn around and say to them that on the only
investment turns out an annual production of sugar valued at
thing they can import, practically, into our country and make a
approximately $75,000,000, which is approximately 40 percent of
market for, we will close our doors and prevent them developing
the total value of all agricultural products of the Philippine
their trade. I say that no true-born American citizen who faces
Islands, including rice and other food products.
this question fairly and squarely and understands the situation
The investment in this industry is controlled by Filipino and
will consent to that."
American investors. Part of the investment made by the Filipinos
That statement of Congressman UNDERWOOD has since been the
was borrowed from their national bank, with encouragement from
guiding policy followed by Congress in dealing with Philippine
American officials. Very little of the capital may be called foreign
products coming into this country.
The establishment of free trade had the immediate effect of
capital. The total aggregate investments in the Philippine sugar
industry amount to $251,512,535, as follows:
attracting American capital into the islands for the development
of the sugar industry. In 1910 a group of Americans obtained
Investments in centrals
$84, 535
concessions in the Island of Mindoro, a heretofore undeveloped,
Investments in lands
140,000,000
uninhabited property, and constructed the first modern centrifu-
Crop loans
22,500,000
gal sugar factory in the Philippine Islands. Two years later two
Miscellaneous investments
5,000,000
other American companies established sugar centrals at Calamba,
on the Island of Luzon, and at San Carlos, on the Island of
Total
251, 512, 535
Negros.
Of the total of $84,012,535 invested in centrals, 40 percent is
Thus, the modern development of the sugar industry was ini-
American investment, 37 percent Filipino, 22 percent Spanish,
tiated by pioneering American business men and American capi-
and 1 percent cosmopolitan, as shown in the following table:
tal, for it took a decade to convince the Philippine farmers of
the advantages of improving their sugar production and manu-
Percent-
facture along modern methods, and not until 1918-21 were the
Number
Total in-
age of
Filipino producers convinced of the necessity of modernizing
Nationality
of centrals
vestments
total in-
their methods of manufacture and began to establish six so-called
vestments
" bank centrals with the financial aid of the Philippine National
Bank.
American
12
$33,815,650
40
The result of this change, the replacement of these thousands
of primitive, inefficient, wooden carabao mills by modern centrals
Filipino
22
31,127,894
37
Spanish
9
18,276,574
22
and factories, together with the recent improvement in methods
Others
2
792,417
1
of cultivation and planting of higher yielding cane varieties, sugar
production in the Philippines in the past two decades has nat-
Total
45
84,012,535
100
urally doubled and trebled as has happened in Cuba, Hawaii,
No. 4-12
258
CONGRESSIONAL RECORD-APPENDIX
JANUARY 8
The investment classified as Spanish includes investments made
Philippine market has been strengthened recently by the Philip-
by two of the oldest established companies in the islands-one
pine Legislature passing six amendments to the Philippine tariff
established 75 years ago and the other more than 50 years ago-
law increasing the advantages of American products in that
so that it is generally considered in the Philippine Islands that
market.
these are Philippine investments. Moreover, many of the holders
Today the Philippines is the best market for American cotton
of the stock of the centrals classified as Spanish are in fact
goods, dairy products, canned sardines, and galvanized iron sheets.
As sugar constitutes 63 percent of the total value of all exports
Filipinos. Of the 45 centrals in the Philippine Islands, approximately 24,
of the Islands, the purchases of the Islands from the United
or more than one half of them, are small mills, with capacities
States are mainly paid for by the sugar exported to this country.
ranging from 150 to 750 tons of cane per day. Most of these mills
INCREASING POPULATION
are financed by a group of Filipinos, while a few others were
When the United States went to the islands, the Philippines had
established by cosmopolitan investors, including Filipinos, Ameri-
but a population of around 7,000,000. However, after 35 years of
cans, and others. No Chinese are financially interested in the
American guidance, during which time we have improved our sani-
mills.
tary service, our population has doubled until it is now approxi-
Practically all the lands devoted to the cultivation of sugarcane
mately 14,000,000. The Filipinos are becoming more and more
in the Philippines are tilled by Filipinos. Filipinos engaged in
Americanized in tastes and in habits, so that if their progress
sugar cultivation in the Philippines, including their families,
continues, it is reasonable to expect that in 10 or 20 years from
number 2,000,000.
now our population will have increased to 20,000,000 or 30,000,000
Unlike other sugar-producing countries, which must rely on
people, all of whom will have acquired the American ways of liv-
foreign labor to grow sugar, the Philippines depends solely upon
ing, and who will constitute probably the best customers of
native labor for its production of sugar. It is to be noted in this
America in the world. Recognized experts claim that the Philip-
connection that, considering the social value of the sugar industry,
pines, properly developed, can support a population of from 60,-
the Philippines can claim that all of the benefits accruing to the
000,000 to 70,000,000, or approximately half the inhabitants of the
people who grow the cane goes to 100 percent Filipino labor, owing
United States.
allegiance to the United States, a record which cannot very well
be matched by other sugar-producing countries supplying sugar to
LIMITATION OF PHILIPPINE IMPORTS INTO THE UNITED STATES
the United States.
The foregoing facts and data demonstrate the absolute de-
(2) Of the 48 provinces, 17, with a population of over 7,000,000
pendency of Philippine sugar upon its free entry into the United
people, or more than half of the total population of the islands,
States. They also demonstrate the truth that the political, eco-
are directly or indirectly dependent upon the sugar industry. At
nomic, and social life of the Filipino people mainly depend upon
least 2,000,000 farmers, laborers, and their families depend for
the status of the sugar industry, which supports the Philippine
their livelihood upon the growing of sugarcane.
government to the extent of 60 percent of its revenue.
(3) The sugar industry more than any other industry in the
Recognizing, however, the overproduction of sugar the world
islands has been responsible for uplifting the standard of living
over, which brought about the present depression in the sugar
of the Filipino people. Recognized authorities place the stand-
industry, and appreciating the feelings of the domestic sugar pro-
ard of living of the Filipino people 300 percent above that of the
ducers here toward an unlimited expansion of the Philippine sugar
peoples of their neighboring countries.
industry, the sugar producers of the Philippine Islands are ready
(4) The money spent by the centrals and the planters for the
to cooperate and assist in the stabilization of the sugar industry
purchase of supplies and materials required by the sugar industry
either through a limitation of Philippine sugar imports to this
amounts annually to approximately $30,000,000, or over 60 per-
country, based on the past year's imports, or through a quota sys-
cent of the total money in circulation in the islands.
tem, such as provided for in the proposed marketing agreement,
(5) The sugar industry is the main support of the Philippine
agreed to by the producers of the areas supplying sugar to the
Government. For every dollar of value of sugar produced in the
United States.
This and other similar adjustments or balancing of the benefits
Philippines the Philippine Government derives in sales tax and
derived from the economic relationship between the United States
other taxes approximately 20 cents. The value of 1,283,000 short
tons produced for the past crop aggregates $75,000,000, from which
and the Philippines will, in my humble opinion, bring about a
harmonious and mutually advantageous economic intercourse be-
the Philippine Government will derive a revenue of $15,000,000.
tween the two countries.
The income of the Philippine Government for 1933 is estimated
at $24,000,000, SO that it derives 60 percent of its revenue from
the sugar industry.
(6) In 1932 the value of sugar exported from the Philippine
Federal Old-Age Pensions
Islands constituted 63 percent of the total value of all their
exports, as may be seen from the following table:
EXTENSION OF REMARKS
Value of principal exports from the Philippines for the calendar
OF
year 1932
HON. THOMAS O'MALLEY
To all countries
To United States
OF WISCONSIN
IN THE HOUSE OF REPRESENTATIVES
Value
Percent
Value
Percent
Monday, January 8, 1934
1. Sugar and by products
$60,359,000
63.31
$60,145,000
99.64
2. Coconuts and manufactures of
15,455,000
16.21
12,063,000
78.05
3. Tobacco and manufactures of
6,399,000
6.71
3,243,000
50.68
RADIO ADDRESS OF HON. JENNINGS RANDOLPH, OF WEST
4. Manila hemp and manufactures of
5,675,000
5.95
1,893,000
33.35
VIRGINIA
5. Embroideries
3,267,000
3.42
3,252,000
99.53
6. Lumber and timber
835,000
.87
173,000
20.74
7. Hats
591,000
.62
435,000
73.71
Mr. O'MALLEY. -Mr. Speaker, under the leave to extend
8. Pearl buttons
244,000
.26
244,000
100.00
9. Other exports
2,514,000
2.64
1,200,000
47.73
my remarks in the RECORD, I include the following radio
address delivered recently by Hon. JENNINGS RANDOLPH, of
Total
95,339,000
100.00
82,648,000
86.69
West Virginia:
The world has just passed through 4 years of experience which
(7) The success of the cooperative system which has charac-
has tried the very souls of men and women. During this walk
terized the production of sugar in the Philippines has made the
through the valley of the shadow .we have learned many lessons
people realize the advantages of cooperative efforts among small
which we needed to learn, and it seems to me that one of the
producers and farmers. In other words, the sugar industry of the
greatest lessons which have come out of these 4 years of hard-
Philippines has become a model for a modern scientific develop-
ship has been the positive evidence that we are our brother's
ment of their other agricultural industries.
keeper whether we realize this fact or not. I have heard an of
AMERICAN-PHILIPPINE TRADE
experienced hunter of big game say that during the time
Since the United States took over the Philippine Islands in
drought when water is scarce in the jungles of the big game
1899, America's trade with the Philippines has increased 40 times,
countries, the fiercest of animals take their turn at the only
from a little over $5,000,000 in 1899 to over $200,000,000 in 1929.
waterhole and that they do no killing there because they instinc- for
United States sales to the Philippines since American occupation
tively realize that harmony and cooperation are essential
have increased 91 times, from $1,350,000 in 1899 to $92,600,000 in
1929. On the other hand, United States purchases from the
survival. During the past 4 years the whole of the human race has we
Philippines increased 32 times, from $3,935,000 in 1899 to $124,-
literally been driven to civilization's common waterhole, and as te,
465,000 in 1929.
gathered around this watering place we were forced to coopera
These figures show a most significant fact; that is, that the
the rich and the strong giving aid to the weak and the poor.
purchasing power of the Philippine people for the products of
Seeing the absolute necessity of this form of friendly cooperation,
American farms and industries have increased at a relatively
the President of the United States began immediately after enter- of
greater rate than their sales to the United States.
ing office last March to create plans for the sole purpose for
Under the free-trade relationship between the United States and
distributing fairly the necessities of life and the opportunities
the Philippines, American exporters have practically a monopoly
earning a living.
of the Philippine market. In other words, 97 percent of Amer-
I am deeply grateful because I can truthfully say, as I speak
ican products entering the Philippines are protected by the
to you today, that the President's program of business recovery
Philippine tariff. This monopoly of American exports to the
through organized cooperation has brought us out of the darkness
1934
CONGRESSIONAL RECORD-APPENDIX
259
of the jungle in which we have been lost for the past 4 years, and
country on this earth; we have an abundance of everything that
now that we have learned the practical value of mass cooperation
human beings can use, both the necessities and the luxuries; we
it is both our duty and our privilege to appropriate this knowledge
live in one Nation of this world where every form of freedom is
and to use it for our future guidance. If friendly cooperation is
given the greatest possible expression; and I say to you, my
helpful to people caught in the maelstrom of a great world eco-
friends, that we have no right to enjoy these great blessings with-
nomic upheaval, it will be equally helpful in the time of pros-
out a willingness to share them with aged people who, by the
perity, when we do not face the necessity of fighting shoulder to
very nature of their physical beings, are not able to appropriate
shoulder to defeat our common enemy, poverty.
their share without our cooperation.
Having gone through this despairing depression, and having
Not long ago I read a set of textbooks entitled The Law of
seen and felt the effects it has produced in terms of misery and
Success written by Napoleon Hill. I was deeply impressed by
human suffering, I was truly grateful to Dr. J. E. Pope for inviting
his analysis of the six basic fears which *tend to confound and
me to speak to you on the subject of what I conceive to be one
undermine the efforts of human beings. The thing that im-
of the most commendable and necessary forms of cooperative
pressed me most about these fears was the fact that four of them
effort. I have reference to the great movement which is sweeping
were very directly related, these four being (1) the fear of old age,
this entire nation, the object of which is to provide old-age pen-
(2) the fear of ill health, (3) the fear of poverty, and (4) the fear
sions for men and women who have reached the late afternoon of
of death.
life without the means necessary to sustain them.
I never stopped to analyze the damage done by these fears
A group of thoughtful and far-sighted men and women have
until I read Mr. Hill's statement in which he pointed out that
organized the National Old Age Pension Association, whose aim
any one or more of these may lead to insanity, or to the com-
and purpose are to secure the necessary legislation to insure men
mitment of crime, or to various forms of cheating at trade. It
and women against starvation in old age. Their leader, Dr. Pope,
seems to me that the two most dreadful of these are the fear of
has given me a very clear outline of the legislation they are seek-
poverty and the fear of old age. There is a direct connection
ing and I wish to tell you why I favor the program and why I
between these two. The fear of old age generally is brought about
believe you should do the same.
by its close relationship to the possibility of poverty which may
First. The idea of pensions for old people who can no longer
come with it. Through the 4 years' depression we had an oppor-
work and who must become public charges is in full harmony with
tunity to catch a fleeting glimpse of what can happen to people
the new deal philosophy of our national leader. The President
who stand in fear of poverty
*
even to young, healthy
has already sounded the death knell of child labor. We have im-
people who had not yet felt the approach of old age. We know
proved working conditions and hours of labor and the basis of
that this terrible fear caused thousands to lose initiative and
compensation, all of which has met with the hearty approval of
ambition and quit trying. We know also that large numbers of
the American people, and I am sure that I voice the opinion of
people took their own lives because they could not bear the
every charitably inclined person when I say that the new deal
thought of facing old age in poverty.
should be extended to include practical help for the aged.
I do not know how my colleagues here in Congress feel about
Second. The plan and purpose of providing pensions for the
the subject, but for my own part I have seen enough of the mis-
aged is, as I conceive the facts, in full harmony with the Golden
ery of old age and poverty to cause me to cooperate wholeheartedly
Rule laid down by the Master as a sound rule of human conduct.
with those earnest men and women who are endeavoring to
I am sure that there is no person who would wish to face old
relieve old people of the suffering which comes from fear of pov-
age burdened by the misery of poverty. We cannot truthfully say,
erty and old age. I conceive it to be my duty to help provide
in behalf of civilization, that it has produced a race of human
this protection for your mother and your father and my own
beings who do unto others as-if they were the others, as long as
mother, should they need financial aid from their Government in
we permit the old and decrepit people to be sentenced to poor-
the late afternoon of life.
houses.
As Dr. Pope has explained the program of the National Old Age
Third. The old-age pension plan is inspiring because it serves
Pension Association to me I understand it to advocate, broadly,
the very commendable purpose of helping to keep self-confidence
these five worthy ends:
and courage alive in the hearts of men and women in the hour of
First. Provision for the payment of a pension of $30 per month
adversity. I have heard it said that a man is never whipped until
to every resident American citizen on and after the age of 65 years.
he accepts defeat in his own mind, and I believe this to be true.
Second. Persons 65 years 'of age or over who refuse to accept
I earnestly believe, therefore, the old-age pensions would have
retirement from active competitive earning not to be allowed pen-
the effect of kindling anew the fires of hope in the breasts of
sions until such a time as they actually retire.
those who have met with temporary defeat, thus enabling them to
Third. Any person above the age of 40 and under 65, who is a
carry on and to reestablish themselves without becoming public
citizen of the United States, who, by reason, of physical or mental
charges.
inability, cannot earn a livelihood, shall be paid the sum of $20 per
Fourth. The old-age pension plan is sound because it gives the
month.
individual a chance to profit by rendering useful service to others.
Fourth. The Congress of the United States shall require each
Apropos to this thought a very distinguished philosopher once said:
and every person, male or female, between the ages of 21 and 45,
Help thy brother's boat across and lo! thine own hath reached
on and after the passage of the old age pension act, to pay into
the shore." That is sound philosophy because it pays dividends
the Post Office Department, through the Postal Savings Division, a
in terms of happiness as well as in terms of material knowledge.
very small percentage of all gross earnings from salaries, wages,
I would add slightly to the thought of the philosopher whom I
hire, or from any other source, whether it be from salary, commis-
have quoted by saying, Help thy father's and thy mother's boat
sions paid, from dividends earned, or from profits arising from any
across, as well as thy brother's."
transaction; the returns to be made monthly together with the
Fifth. I believe the old-age pension plan to be good because our
payment of assessments such as the Congress may levy against
own President has said that he is sympathetic toward this prin-
such earnings or income.
ciple, and I am sure that he meant what he said because he signed
Fifth. The President of the United States shall appoint a direc-
the old-age pension law while he was Governor of New York,
tor of pensions, to become the chairman of the United States Pen-
providing help for the aged of that State.
sion Board, the other members of the board to comprise the Post-
Sixth. I believe this is the proper time to provide old-age pen-
master General, the Secretary of the Treasury, and the Secretary of
sions because it is an era of practical reformation during which
Labor, the said board to have the power to scale downward the
civilization is undergoing many needed refinements leading in the
assessment of tax against earnings, as the occasion and conditions
general direction of helping the poor and the weak to compete suc-
of the pension fund may seem to warrant. In other words, if it
cessfully with the rich and the strong. I believe it just as essential
is found that less than one half of 1 per cent of earnings of all
to give financial aid to old people as it is to call a halt on un-
persons over 21 and not over 45 will suffice, they shall then be
scrupulous Wall Street bankers and the privileged classes who have
authorized to reduce the scale of rate of assessment accordingly.
been exploiting all of the people in every way that was available.
You have, in these five proposed principles, the sum and the
We have backed the President solidly by public opinion in his at-
substance of what will be required in order to permit the aged
tempts to curb those who had gained control of most of the
people of this country to approach their declining years without
wealth; now let us back those who are laboring for the purpose
the fear of poverty.
of protecting old people who, through no fault of their own, face
My object in speaking to you on this subject is to inform you,
a common enemy which is just as merciless as any human being
as fully as I can in the few minutes which have been allotted to
who exploits his fellow men
the enemy of old age and
me, of the plan for providing pensions for old people and to ask
poverty.
that you communicate with me by letter, offering any suggestions
Seventh. I am personally in favor of the old-age pension pro-
you may have in mind for the improvement of this proposed
gram because I have observed during the past 4 years that no one
program. I have given you a brief outline of my own personal
is immune against poverty; that riches have a way of doing the
reasons for favoring this proposal, but I shall of course be guided
disappearing act; that the rich and the poor may be made to
also by the wishes of my constituency in the Second Congressional
change places without warning; and having made these observa-
District of West Virginia, when the time comes to vote on legisla-
tions I have been forcefully impressed by the thought that there
tion providing this pension protection to unfortunate old people.
is no such reality as enduring independence; that we are all de-
May I not suggest, therefore, that those outside of my district who
pendent upon others in one way or another. It seems to me that
may be listening, communicate with their own Representatives in
the worst possible foe of dependence is that experienced by the
Congress, conveying to them your wishes and your suggestions in
aged person whose physical infirmities make it impossible for him
connection with this important plan.
or her to conceive plans and translate them into life's necessities.
Before closing I wish to assure you all that we who represent
Eighth. Lastly, I believe in the movement for old-age pensions,
you here in Washington, approach our task at this session of
because it is in harmony with my conception of practical applied
Congress with greater hope and courage than we had at the
Christianity. I do not believe that the Nazarene would condemn
last session, and out hopes are not based upon ephemeral causes.
old people to a poorhouse. I believe that He would be shocked by
Millions of men have been put back to work since Congress
the very thought of imprisonment for life in a poorhouse; there-
adjourned last summer and the words business depression have
fore, I, too, am shocked by the thought. We live in the richest
been pushed off the front pages of newspapers all over the country
260
CONGRESSIONAL RECORD-APPENDIX
JANUARY 8
and their place has been filled by the words business recovery."
trade as the world's money metals. Hence they have received
We have genuine cause to be thankful throughout the length and
the name of the precious metals."
width of this great country of our, because we have weathered
It is the legal function of money that gives to the metal its
the worst storm that most of us have ever known. Our national
great value. It is the legislator who bestows upon the metal this
leader has demonstrated, through his message to Congress this
function. The legislator can withdraw the money function and
week, and by the expression on his face and the tone of his voice
thereby destroy the metal's great value. Hence the term, in-
that he, too, approaches the new year in a spirit of hope and
trinsic value," applied to money, is misleading. Its value is
courage.
almost entirely extrinsic. Aristotle says:
There is no escaping the fact, my friends, that we are safely
Money itself is only a frivolity, a futility; it has value only by
established on the road that will lead us back to happiness and
the law and not by nature inasmuch as a change of agreement
prosperity. Let us not forget, then, our obligation to those poor
among those who use it can depreciate it completely."
old persons who fear the poorhouse more than the average persons
If an example be needed to prove conclusively the accuracy of
feared the business depression. We have passed through the
the great philosopher's conception of money, we have it in the
worst and we now have it behind us, but there are millions of
monetary history of the last 60 years as regards silver.
worthy old men and women in this country who now and in the
Bimetallism is the privilege of unlimited coinage of both gold
future will face a real cause of fear a hundred times greater than
and silver as full legal tender money, at a ratio of weight fixed by
the fear of depressed business.
law. This does not mean, as some suppose, redemption. or con-
Ingratitude is among the more reprehensible of human quali-
vertibility, of one metal by or into the other. Both metals stand
ties!
on a perfect equality before the law. In the United States the
Let us not be ungrateful for our delivery from the fear of
silver dollars and silver certificates at present outstanding-four
poverty, and let us demonstrate our gratitude for this great
hundred and sixty-five millions in all-always stood at a parity
blessing by helping to provide protection to those who are not
with gold by reason of their equal legal tender quality for all
in position to provide it for themselves.
debts. There is no good reason to doubt that the whole amount
There is plenty in this world for all of us. We cannot take
of silver belonging to our Government, including the silver bul-
anything with us when we cross the Great Divide. Moreover, the
lion, could be paid out-were specie payments resumed-in dol-
riches which most people accumulate come as the result of some
lars or in certificates, and retained in circulation at par with gold,
form of cooperation from others. It is a great blessing to possess
as was the case, prior to our going off the gold standard, with the
riches, but it is a greater blessing to possess, also, a heart that
silver dollars and certificates then outstanding.
is willing to use riches in behalf of those who are helpless.
Turgot, the great economist, and minister of finance to Louis
XVI, said:
Gold and silver are constituted money, and universal money,
" Honest Inflation
by the nature of things, independently of all convention and all
law."
Daniel Webster said in the United States Senate, in 1836:
REMARKS
Gold and silver is the money of the Constitution. The consti-
tutional standard of value is established, and cannot be over-
OF
turned. To overturn it would shake the whole system. Gold and
silver at rates fixed by Congress constitutes the legal standard of
HON. BENNETT CHAMP CLARK
value in this country, and neither Congress nor any State has
OF MISSOURI
authority to establish any other standard or dispose of this."
Michel Chevalier, in the preface of his French translation of
IN THE SENATE OF THE UNITED STATES
Humboldt's Gold and Silver, said:
By reason of the part which gold and silver play in all the
Monday, January 8, 1934
transactions of mankind, in the contracts between States and
individuals
every important change in the value of gold
and silver is a serious event, a sort of revolution."
ARTICLE BY EDWARD TUCK IN SCRIBNER'S MAGAZINE, EN-
The correctness and wisdom of these views appear never to have
TITLED HONEST INFLATION
been questioned until after the great discoveries of gold in Cali-
fornia and Australia, at which time this same Michel Chevalier
Mr. CLARK. Mr. President, I ask unanimous consent to
began to advocate silver monometallism. In 1859 he published
his once famous work on The Probable Fall in the Value of Gold,
have inserted in the RECORD an article appearing in Scrib-
in which he argued in favor of the demonetization of gold by
ner's Magazine entitled Honest Inflation by Edward Tuck,
reason of its enormously increased production. Significantly
founder of the Tuck School of Business Administration at
enough, it was Richard Cobden who wrote the preface to the Eng-
lish translation of this work (published by Appleton in 1859), and
Dartmouth College.
in it reiterated Chevalier's statement that the production of gold
There being no objection, the article was ordered to be
had amounted in 10 years to about as much as the entire produc-
printed in the RECORD, as follows:
tion of the world during the 356 years which intervened between
the date of the discovery of America by Columbus and the year
HONEST INFLATION
1848. The gold monometallists of later days have never had half
(By Edward Tuck, the founder of the Tuck School of Business
so specious an argument against the fitness of silver to serve as
Administration at Dartmouth College)
money as that argument against the fitness of gold. However,
The firm and judicious resistance which President Roosevelt
gold was not demonetized, and the historian Alison, writing at the
has offered to inflation has a sound basis. He recognizes that
same time and describing the previous distress and the subsequent
merely to add to the already swollen volume of promises to pay can
prosperity, said:
avail nothing against the day of reckoning when paper money
The era of a contracted currency and consequent low prices
comes to its ultimate redemption. The basis for the demand for
and general misery, interrupted by passing gleams of prosperity,
inflation rests upon the growing world conviction that the real
was at an end."
cause of present economic conditions is monetary. To this
Many writers on economics today cite statistics of deposits and
monetary morbus", as Cernuschi called it, is due the present
prices compared with those of previous periods, seeking to prove
collapse in prices, stagnation in business, and increase in poverty
thereby that the actual volume of gold suffices for the present
in all countries.
needs of commerce and money circulation. If this is the case,
A correct idea of the nature and functions of money in general
how does it happen that not a single important nation can pay
is a necessary preliminary to the proper appreciation of the merits
its obligations, either of maturing bonds or of its demand notes,
of the conflict between bimetallism and monometallism which is
in gold coin? Even in France, nominally still on the gold stand-
now more and more agitating the commercial world.
ard, napoleons are unobtainable except by purchase in the market
Money is an instrument of valuation, established by law,
at a premium equivalent to the price of gold in London.
to measure, compare, and exchange values, and to serve as a
It was Cernuschi, the great master of monetary science in the
legal tender for debts. The material of money is in principle
past century, who developed fully the argument based on the dis-
unimportant, except so far as it is liable to affect the aggregate
location of foreign exchanges and pointed out the disastrous con-
amount in existence-the total monetary mass. The value (pur-
sequences thereof to the industries of the gold-standard nations.
chasing power) of money is increased or decreased, ceteris paribus,
He established the complete scientific theory of bimetallism and
in inverse proportion to its volume. Indefinite issues of paper
gave to it, in all modern languages, its appropriate name.
money create redundancy and depreciation. Comparative fixity
The people begin to realize that the annual increase in the pro-
or limitation of supply is therefore requisite to give reasonable
duction of gold is not keeping pace with the expansion of the
stability to the value of money. Paper money can be increased
world's production of staple commodities, and especially with the
in amount indefinitely, at the will of the sovereign or of the
prodigious increase in existing debts. Chief among these debts
legislators, while metallic money is susceptible of only a limited
are those of the governments of all countries in seeking to supply
and measurable annual increase, which distributes itself among
the deficiency of metallic money by vast issues of paper promises-
the nations. Added to the total accumulated monetary mass
to-pay money " on demand", which are universally dishonored,
existing throughout the world, this increase forms but a very
but to which the paper inflationists insist the United Statos shall
small percentage, and serves barely to supply the needs of con-
add still further.
stantly increasing population, production, and commerce. For
This world-wide paper-money inflation exists today to an un-
these reasons it is agreed that metallic money alone constitutes
limited excess and with augmenting depreciation in coin value.
a safe standard of value. From very early days, gold and silver
Under these circumstances what the world must now have to
have been selected by nations whose civilizations are built upon
enable it to carry its burdens, to save it from general repudiation
1934
CONGRESSIONAL RECORD-APPENDIX
261
of debt and universal impoverishment, to raise prices, and to stim-
GRESSIONAL RECORD. The mint law was revised, the standard sil-
ulate commerce and enterprise is a virtual doubling of the annual
ver dollar being dropped from the list of coins. The question
supply of additional real money, furnished not by the unlimited
came up for debate in Congress in 1878, when Senator Thurman
capacity of the printing press but by the combined mines of the
said:
precious metals, both gold and silver. Until 1873 the coinage of
When the bill was pending in the Senate we thought it was
both metals, at a fixed parity, as legal tender money was free and
simply a bill to reform the mint, etc., and there was
unlimited in the United States and in France. Every successive
not a single man in the Senate, I think, unless a member of the
large increase in the production of either or both metals brought
committee from which the bill came, who had the slightest idea
increased prosperity and wealth, as, for instance, the gold dis-
that it was even a squint toward demonetization."
coveries in the Klondike and the Rand in the late 1890's and,
This statement was confirmed by several other Members of both
earlier, the Comstock lode in silver.
Houses.
This increase in the coinage of both metals, with its vivifying
Even better proof of these facts is furnished by a letter written
power, was never considered money inflation. It was, in fact, the
by John Sherman, our distinguished Secretary of the Treasury, to
supply of a needed expansion of basic metallic money for increas-
W. S. Groesbeck, one of the American delegates appointed by Con-
ing population and commerce. It is manifest today that gold
gress to the International Monetary Conference, held in Paris in
alone does not suffice to satisfy this constantly growing need and
August 1878, in which, referring to the leading part he had taken
thereby the world is now threatened with financial ruin.
in the demonetization of silver in 1873, he said:
To the demonetization of silver, first by England in a fit of
"At that time the wisest among us did not anticipate the sudden
extreme insularity after the triumph of Waterloo, and subse-
fall of silver or the rise of gold that has occurred. This uncer-
quently by the United States, Germany, and (in consequence)
tainty of the relation between the two metals is one of the chief
France, may unquestionably be traced the present universal col-
arguments in favor of a monometallic system, but other argu-
lapse. The eminent American economist, Prof. Francis A. Walker,
ments, showing the dangerous effect upon industry by dropping
author of a standard work, Money, published in 1877 and 1891,
one of the precious metals from the standard of value, outweigh
declared with emphasis:
in my mind all theoretical objections to the bimetallic system."
The history of the century would be searched in vain for a
Thus was the demonetization of silver unwittingly accomplished
political blunder of equal enormity."
in the United States, not because it was cheaper than gold but,
Fully 60 years ago the most acute and erudite students of mone-
on the contrary, because it was the more valuable of the two
tary science warned the world of the inevitable consequences of
metals. The effect, however, of thus closing our mint to silver
this extrusion of silver as a joint monetary standard with gold.
was not immediately apparent, specie payments having been
In the month of April 1870, Wolowski, a distinguished French
suspended since 1862 and not resumed until 1879.
economist, before a French currency commission, pointed out
In studying the question of bimetallism one should keep
with remarkable accuracy the inevitable fall in price of all com-
clearly in mind: First, that money is not the value for which,
modities, as well as the great decline in the value of agricultural
but the valuer by which, commodities are exchanged and debts
land and the increased burden of mortgages, which the demoneti-
are paid. Money is only a counter, a marker, a measure of value,
zation of silver would entail. He said:
and is not by nature value itself. Second, that the precious
What the proposed change means is a veritable monetary revo-
metals, gold and silver, acquire their great worth because they
lution, and the worst of revolutions-one that leads to the
are used as money-not that money as money derives its value
unknown. Violent attacks are being made in our day on property.
from the material of which it is made. As Paulus, a great Roman
There is little to fear from open attacks upon the laws of human
jurist, said: Money circulates with a power which it derives, not
society that have grown up with man, emanating from his very
from its substance, but from its quantity." Third, that the ma-
nature. But I do not feel that there is the same security when it
terial of which money is made is not in itself the standard, but
is a question of attacks which are the more perilous because those
the register in which the standard is recorded. The material of
who make them are often not aware of their serious nature. Such
money bears a similar relation to value that the dial of a clock
would be the proposed measure regarding the demonetization of
does to time. Hence the term double standard is an erroneous
silver."
one in a strict verbal sense. It is not the standard that is double,
In 1871, 2 years before our own country demonetized silver,
but the metals in which the standard is registered. The two
Ernest Seyd, well-known English author of Bullion and Foreign
metals conjointly, possessing equally the debt-paying function at
Exchanges, made this remarkably accurate forecast:
a fixed ratio of weight, form one standard, one money. Daniel
It is a great mistake to suppose that the adoption of the gold
Webster understood this, as his careful language, above quoted,
valuation by other States besides England will be beneficial. It
unmistakably indicates. His words are: Gold and silver
will only lead to the destruction of the monetary equilibrium
constitutes the legal standard of value." It was to cor-
hitherto existing, and cause a fall in the value of silver from
rect the misconception caused by the use of this misnomer
which England's trade and the Indian silver valuation will suffer
double standard that Cernuschi originated, in 1869, the name
more than any other interests, grievous as the general decline of
bimetallism" which covers the real principle at issue as per-
prosperity all over the world will be. The strong doctrinism exist-
fectly as any single word can do.
ing in England as regards the gold valuation is so blind that,
The present generation of Americans look upon bimetallism as
when the time of depression sets in, there will be this special
Bryanism, and do not take the trouble to study the history or
feature: The economical authorities of the country will refuse to
the science of money, as well understood long prior to the Bryan
listen to the cause here foreshadowed; every possible attempt will
campaign. As late as in May 1894, a cable message was sent to
be made to prove that the decline of commerce is due to all sorts
the Lord Mayor of London by leading United States Senators of
of causes and irreconcilable matters. The workman and his strikes
both parties, as follows:
will be the first convenient target; then speculation and overtrad-
We desire to express our cordial sympathy with the move-
ing will have their turn. Later on, when foreign nations, unable
ment to promote the restoration of silver by international agree-
to pay in silver, have recourse to protection, when a number of
ment, in aid of which we understand a meeting is to be held today
other secondary causes develop themselves, then many would-be
under your Lordship's presidency. We believe that the free coin-
wise men will have the opportunity of pointing to specific reasons
age of both gold and silver by international agreement at a fixed
which in their eyes account for the falling off in every branch of
ratio would secure to mankind the blessing of a sufficient vol-
trade. Many other allegations will be made, totally irrelevant to
ume of metallic money, and, what is hardly less important, secure
the real issue, but satisfactory to the moralizing tendency of
to the world of trade immunity from violent exchange fluc-
financial writers."
tuations."
At the foundation of our Government all Europe used what was
Among the signers were1: John Sherman, Nelson W. Aldrich,
then called the double standard the coinage of gold and silver
Shelby M. Cullom, W. B. Allison, Henry Cabot Lodge, W. E.
at a fixed ratio of weight. Our own original standard money unit,
Chandler, D. W. Voorhees, Calvin S. Brice, George F. Hoar, O. H.
as declared in 1792, was the Spanish silver dollar of 412½ grains.
Platt, A. P. Gorman, and David B. Hill.
Gold coinage was authorized, rated to it in the proportion of. 1
Between that year, 1894, and 1900, Bryanism, aided by the
ounce of gold to 15 ounces of silver. We changed this ratio in
Republican campaign, completely perverted public opinion regard-
1832 to 16 to 1. France had always been bimetallic, and from 1785
ing silver, and it still so continues.
the two metals were coined there in the ratio of 15½ of silver to 1
In March 1871 the Franco-German war was ended, France paying
of gold. This difference of ratio in the two countries gave to
in gold a war indemnity of 1,000 million dollars. In the following
silver a money advantage at the French mint of 3 percent as com-
July the German Empire, which had previously been on a silver
pared with our ratio of 16 to 1. The effect of this difference was
basis, established, after the example of England, a national gold
that, in accordance with the Gresham Law, all our silver, the
standard, limiting the existing aggregate issues of silver coins and
dearer money (and our silver bullion), was immediately exported
requiring that the silver in excess of that amount should be with-
to France for coinage at the Paris mint to secure the 3 percent
drawn from circulation and sold. The French mint, which under
profit, the cheaper metal, gold, remaining the sole metallic money
the bimetallic law of 1803 was obliged to exchange the two metals
in circulation in the United States. Under these circumstances
one for the other on demand without limit, became alarmed lest
the coinage of silver dollars at our mint appeared to be a useless
it should be overwhelmed with the German silver and at once
expense.
slackened the coinage of silver, ultimately entirely abolishing it.
Early in 1872 a bill for the codifying of the United States mint
Then, and then only, the decline in the price of the metal silver
laws, which had been before the two preceding Congresses, was
from the legal parity began, as shown by the statistics of all mints,
reintroduced. From it the clause providing for the coinage of
silver dollars was omitted, seemingly only for the reason that the
1 Editor's note: These Senators were primarily representatives
silver ounce coined was immediately shipped to France to secure
of Eastern States and conservative interests, as may be seen from
the 3 percent profit above described. This accomplished the de-
following identification:
monetization of silver in the United States, although it was not
John Sherman, Republican, Ohio, Secretary of the Treasury
so intended, as plainly shown by debates published in the CON-
under Hayes, Secretary of State under McKinley. The Sherman
262
CONGRESSIONAL RECORD-APPENDIX
JANUARY 8
reaching in 1932 the lowest figure on record. This continuous fall
whatever legal parity, whether 20 to 1 or 16 to 1, was established
in the price of the metal was caused not by its overproduction
by the United States. The debt-paying power of silver becoming
from the mines but largely by the sale in the open market of
equal to that of gold at the legal ratio, nobody would part with it
demonetized money from different nations, including France. The
at a lower valuation. An advance of price in all commodities
yearly product of the mines since 1900 up to 1930 has been esti-
would at once ensue as the result of the increasing supply of
mated in fine ounces as from 8 to 13 times to 1 of gold. In
real money. We see already the beginning of this in the higher
fact, the production of silver compared to that of gold has not
prices which have accompanied the late rise in the price of silver.
been as high as 16 to 1 for nearly 40 years past, and of this pro-
The world is now ready for the remonetization of the metal, which
duction 80 percent is estimated as being the byproduct of other
would be followed immediately, gold and silver standing on the
metals.
same plane as monetary units, with buoyant markets everywhere.
Money has never been defined as a value in itself but only as a
On the other hand, increased issues of paper money in the
measure of value. It has been called a vehicle to facilitate the
United States can have no effect on world markets, creating only
exchange and distribution of the world's products." The smaller
redundancy at home and increased depreciation by comparison
the number of those vehicles", the larger naturally must be the
with the nominal gold equivalent. The United States cannot be
load put upon each. This in monetary language means lower
willing that its money issues should follow in the steps of the
prices of all values. That is the situation of Europe and America
French assignats. The wealth of all France was supposedly
today. The vehicles are overloaded, and the number of them must
assigned" as security for a currency the ultimate complete
be greatly increased.
repudiation of which became a necessity.
To carry on commerce between the nations of the world there
We are deceiving ourselves in saying that the American dollar
needs to be an international unit of value, and that unit must be
has now greatly depreciated in value. We have, legally speaking,
a metallic one. During our Civil War, European currencies being
only one dollar in the United States, which is the gold dollar of
on a gold basis, while the United States had a depreciated paper
23.22 grains. We use as current legal tender money the Govern-
money, our foreign commerce was regulated through the gold
ment and reserve bank notes bearing on their face the promise
room in New York, where gold was bought and sold to supply the
to pay dollars on demand. It is this promise to pay which is
needs of foreign commerce and dealings in securities. Following
not good. and is now worth only 65 percent (approximately) of its
the Civil War and prior to our resumption of specie payments in
face value. It is Uncle Sam, and not the "American dollar who
1879, the exporter of cotton sold it at a gold price in Liverpool or
in these days of peace and plenty, should bear the discredit of
Havre, and bought it in New Orleans at the greenback price.
insolvency.
Hence he was a seller of gold, while the importer of merchandise
Bimetallists demand that the two metals be declared by law
was, for the same reason (reversed) a buyer. At the present time,
to be not of a fixed relative market value, but of the same utility
no nation on either side of the Atlantic having a currency redeem-
in debt-paying power, în a fixed ratio-the mints to be freely open
able in gold, all foreign commerce and exchange dealings are in
to the coinage of both-thus reestablishing silver in the position
the greatest confusion. No man knows from day to day what may
which it held in common with gold from the beginning of history
be the market value of his merchandise or of his investments. At
until 1873 (always by legislative authority), and restoring the
the recent economic conference in London, President Roosevelt
conditions under which, prior to that date, all debts-State, cor-
was severely criticized for refusing an attempt to stabilize the
poration, and individual-were incurred, and a supposed normal
moneys of the United States and England, but he was right. To
level of prices was established. In other words, they claim that
try to do it would be like an attempt to stabilize two balloons.
the exchangeability' of silver for debt, equally with gold, should
Metallic moneys can be stabilized by their proportionate weight,
be restored by legal enactment, with free coinage, in a fixed ratio,
but not so the unlimited products of the printing presses. It is
which will stand the test as against the novel and disastrous
only from the mines of gold and silver that there can be fur-
experiment of the present generation in endeavoring to live and
nished automatically a needed yearly additional supply of metallic
prosper on a single gold basis. Silver must be again assigned
real money, which is estimated at from 1 to 2 percent of the exist-
a place in the monetary systems of the nations. The new-fledged
ing monetary stock.
theories of a managed currency of paper money are vain and
In the great debates on bimetallism which took place in the
empty. Nature alone, and not man, can be trusted with the vital
United States and in Europe during the latter half of the past
problem of the world's money supply.
century, both Democrats and Republicans were members of the
Even if all this were less indubitable, there remains another
different monetary conferences held in London and in Paris, with
reason for now turning to bimetallism in the United States. The
a view to the restoration of bimetallism by international agree-
inflationists of today are demanding, first of all, an expansion of
ment. The United States was then a large debtor to Europe. For
our present currency, and they want it through the agency which
this reason it was believed by the majority of our delegates that
most largely appeals to the mentality of the machine age, namely,
silver could be restored and a stable parity of exchange maintained
the printing press. If they succeed, we shall witness nothing but
only by an agreement between the United States, England, and
a still further diminished value of our currency in foreign markets.
France. Today, the United States, having become a creditor
If, on the other hand, we mutilate our gold coins, by cutting their
nation with immense increase in wealth and power, is abundantly
weight in half, we dishonor ourselves and enrich the growing
able to solve the problem alone. I venture to predict that if
multitude of European hoarders of gold who are accumulating the
bimetallism were adopted by us, the course of events would force
metal for this event. But, vastly more important still, we per-
the acceptance throughout Europe of silver money on an equality
petuate the present inability of China and India to buy our agri-
with gold at the American ratio in protection of those nations'
cultural and other products by continuing the nonrecognition of
own commerce, especially in connection with the Far East and
their silver money.
South America. The world-wide price of silver would advance to
Bimetallism is not an expedient. It is a world-wide specific .for
Act (1890) was a compromise bill providing for the purchase of
the ills which have befallen all nations. The remonetization of
four and one half million ounces of silver per month, Treasury
silver will immediately produce the increase in the circulating
notes to be issued in payment. In 1893 the Voorhees bill repealed
medium which inflationists are demanding. It will be inflation,
the silver-purchase clause but affirmed bimetallism as national
but it will be honest inflation, because it will be supported by an
policy.
ultimate redemption in a metal which has been recognized as
Nelson W. Aldrich, Republican, Rhode Island (1881-1911). Au-
precious by hundreds of millions of people throughout the ages
thor of the Aldrich plan from which the Federal Reserve Act was
and is now the metallic basis of the medium of exchange among
evolved. Senate leader for many years.
hundreds of millions of people whose markets we wish to enter.
Shelby M. Cullom, Republican, Ohio (1883-1913). Committee
Bimetallism will open these doors to us, because it will provide
of which he was chairman created Interstate Commerce Com-
us with an instrument of exchange which will be immediately and
mission.
constantly advantageous.
W. B. Allison, Republican, Iowa (1872-1908). Member of Finance
Lord Balfour, as long ago as in 1892, speaking in Manchester,
Committee of Senate for 30 years, identified with Bland Silver
pointed this out. He said:
Act, involved in all currency discussions of period.
"I also believe that the bimetallic solution is possible and
Henry Cabot Lodge, Republican, Massachusetts (1893-1924).
adequate. I don't give it to you as a cure for every industrial
Senate leader for many years; headed fight on League of Nations;
evil. I don't come forward as a quack with a universal remedy.
chairman of Foreign Relations Committee of Senate.
I don't tell you that it will drive bad trade forever from these
W. E. Chandler, Republican, New Hampshire (1887-1901). A
shores and give every man who desires to work a chance of working
" war Republican, Secretary of Navy under Arthur, credited with
for a good day's wages, and every man who desires to invest the
tactics which brought about election of Hayes over Tilden.
certainty of a profitable investment. I paint no such visions for
D. W. Voorhees, Democrat, Indiana (1877-97). It was his bill
you. I put no such promise before your gaze. But I do say
which affirmed bimetallism as national policy.
that for a great commercial country a sound instrument of ex-
Calvin S. Brice, Democrat, Ohio (1891-97). A conservative. Had
change is a matter of the first necessity. I do say that the instru-
large railroad and banking interests.
ment of exchange which you actually have is a bad instrument,
George F. Hoar, Republican, Massachusetts (1877-1904). Fa-
and I offer you for your acceptance an instrument which, if not
mous Senate leader, had large part in framing bankruptcy and
perfect, is at all events practicable and is incomparably better
antitrust legislation.
than any which you are likely to obtain by any other means
O. H. Platt, Republican, Connecticut (1879-1905).
of which I have any knowledge."
A. P. Gorman, Democrat, Maryland (1880-98 and 1903-06). Di-
In view of the increasing growth of bimetallic sentiment
rected Cleveland's campaigns. Outstanding Democratic leader.
throughout Christendom at the present time, it is neither wise
Swung Democratic votes for free silver in return for silver Re-
nor useful to attempt longer to stifle it under the weight of an
publican votes against Force bill.
intolerant dogmatism. The opinion of the great mass of the
David B. Hill, Democrat, New York (1892-97) Succeeded Cleve-
agricultural classes of both Europe and America, supported by dis-
land as Governor of New York. Author of the phrase, after Bryan
tinguished economists and statesmen in every country, deserves a
was nominated, "I am a Democrat still-very still."
respectful hearing.
1934
CONGRESSIONAL RECORD-APPENDIX
263
The Problems Before the Regular Session of the
for the relief of our people and I believe most of my colleagues
will do likewise.
Seventy-third Congress
Mr. KURY. Congressman Ellenbogen, what other problems do
you think will engage the attention of this Congress?
Congressman ELLENBOGEN. Mr. Kury, these problems are SO
EXTENSION OF REMARKS
numerous that I can only give some of them at this time.
Later on, I hope to discuss them more fully in this series of
OF
broadcasts. Here are some of them:
HON. HENRY ELLENBOGEN
The Veterans of the Spanish American War and of the World
War are not receiving the benefits to which in fairness and in
OF PENNSYLVANIA
justice they are entitled. Economy measures affecting them have
IN THE HOUSE OF REPRESENTATIVES
been altogether too stringent. The Congress should pass laws
which will provide more equitable treatment and more just bene-
Monday, January 8, 1934
fits for our veterans.
Workers of all classes, labor and white collar, skilled and un-
skilled, trained and professional, must be protected against long
RADIO INTERVIEW BETWEEN HON. HENRY ELLENBOGEN, OF
hours and miserable pay. The sweatshop must be uprooted and
PENNSYLVANIA, AND FRED H. KURY, WASHINGTON CORRE-
destroyed.
SPONDENT OF THE PITTSBURGH PRESS
Our income-tax system needs drastic changes. Taxes should
be assessed according to ability to pay. Increase surtaxes on
swollen incomes. Raise inheritance taxes on large estates.
Mr. ELLENBOGEN. Mr. Speaker, under the leave to ex-
Strengthen the gift-tax laws to prevent the evasion of the in-
tend my remarks in the RECORD, I include the following:
heritance taxes. On the other hand, taxation must cease to be
Mr. KURY. Congressman ELLENBOGEN, since this session of Con-
an ever-increasing burden on the back of the great middle class
gress is one of the most important sessions ever held and since
of our people. Furthermore, we must eliminate the wasteful
its legislation will have far-reaching and lasting importance for
use of the taxpayer's money, whether it be appropriated for ordi-
every citizen, you might first wish to speak about the attitude of
nary expenditures or for emergency relief.
Congress itself. What would you say is the spirit in which the
Congress must call a halt to the evasion of the income-tax laws
Congress of the United States is tackling the present session?
by selfish persons of great wealth; there must be no manipulation
Congressman ELLENBOGEN. This session of Congress should be
of the people's money or of our financial markets at the ex-
different from any other. This Congress has to understand-and
pense of the innocent investor of modest means. The money of
understand clearly-that the temper of the people has changed.
depositors and the investments of the people should at all times
Our people demand and are entitled to a new deal not only from
be safe. Our' banking laws must be altered to prevent for all
the President and his Cabinet, who execute the laws, but also
time the recurrence of such panics as we witnessed last March.
from the Members of Congress, who make them. We want legis-
Reductions in charges for electricity, for gas, and for trans-
lation not for the privileged few but for the people as a whole.
portation, more stringent regulation and supervision of utilities
And we want to give particular attention to the impoverished
are urgently needed.
middle class and the underprivileged who are with us in such
The American people, through the Congress of the United
States and the President, must deal prudently but firmly with
large numbers.
The Congress must so conduct its affairs that the people will
our foreign debtors; some of them have deliberately compromised
instinctively feel that a new spirit prevails and that Congress
their honor to protect their pocketbooks. These are the duties
is guided by one concern alone-the actual and immediate needs
of the Congress of the United States-as I see them.
of the great mass of the citizens of this country.
As for myself, I pledge that every ounce of my strength, all
The program before this session of Congress can be expressed
the energy that I have, my education, my training and my ex-
in one sentence: Congress must pass legislation to promote recov-
perience shall be devoted to these measures. To you, the people
ery, to assist our people pending recovery, to stamp out the abuses
of Pittsburgh and of Pennsylvania, I pledge that your interest
of the selfish few, and to assure that America becomes again,
and your interest alone, shall guide my thoughts and my steps
as in the past, the land of opportunity for all and of special
and shall determine my actions in the Congress of the United
States.
privilege for none.
Mr. KURY. Congressman Ellenbogen, what do you consider the
Mr. KURY. I thank you. Your interpretations and views of the
most pressing problem before Congress?
problems of the regular session of the Seventy-third Congress are
Congressman ELLENBOGEN. The needs of the unemployed-this
most enlightening.
above all else. The creation of opportunities for work must have
the first call on Congress.
The Federal Government must, and it will, continue to con-
Relief for Veterans
tribute its share for the relief of the unemployed, so that no
man, woman, or child in this country goes hungry; but, beyond
that, further billions should be allotted for public and civil
EXTENSION OF REMARKS
works to give jobs to those now unemployed until private indus-
OF
try and private enterprise can absorb them.
Mr. KURY. Next to unemployment, what problem do you feel
HON. LOUIS LUDLOW
presses for instant attention, Congressman?
Congressman ELLENBOGEN. The plight of the owner of real
OF INDIANA
estate-particularly the plight of the owner of a home or of a
IN THE HOUSE OF REPRESENTATIVES
small farm-must and will be alleviated. Although thousands of
homes and farms have been saved from foreclosure, the relief
Monday, January 8, 1934
afforded by the Home Owners' Loan Corporation has been pain-
fully slow. This is now being speeded up, but in order to provide
true relief for home owners, the law must be changed and for
LETTER OF HON. LOUIS LUDLOW, OF INDIANA, TO THE
that purpose I introduced two bills at the very opening of Con-
PRESIDENT
gress last Wednesday, and I expect to introduce further bills on
this subject, probably tomorrow.
At this point I want to say that if the home owner, if the farm
Mr. LUDLOW. Mr. Speaker, believing that there is
owner wants to save his home, he should, he must, take a real
danger that great injustice will be done to thousands of
interest in these bills, become acquainted with their provisions,
worthy veterans who are now employed, or who hereafter
and organize support for them in his community.
In future broadcasts I shall discuss this topic and shall explain
will be employed, under the Civil Works Administration, I
the bills which I have introduced.
have today sent a letter to President Roosevelt suggesting
Mr. KURY. What important social legislation are you going to
to him the advisability of issuing an Executive order exempt-
sponsor, Congressman ELLENBOGEN?-
ing Civil Works Administration workers from Veterans'
Congressman ELLENBOGEN. A system of old-age pensions deserves
immediate consideration by the Congress of the United States.
Regulation No. 10, which would cut off of the pension rolls
People who have given the best years of their lives in honest
many veterans engaged on civil works and would reduce
and industrious labor and who have contributed to the wealth
the pensions of many thousands more to $6 a month. My
of the country, deserve better treatment than as objects of charity.
I am going to bring this problem strongly to the attention of
letter to the President follows:
Congress, and with the support of the people of this country we
DEAR MR. PRESIDENT:
can obtain laws which will guarantee a greater measure of security
I am taking the liberty of bringing to your attention what
for people of old age than we have ever known before.
seems to me to be an obvious injustice to many thousands of
Mr. KURY. Do you believe that the Congress will follow the
worthy veterans who are now employed. or who hereafter are to
leadership of President Roosevelt?
be employed, as workers under the Civil Works Administration,
Congressman ELLENBOGEN. In this emergency unity of purpose
as I believe you will want to correct this situation by an Executive
and of action are imperative. Our people have confidence in the
order when it is brought to your notice.
President and in his policies. They demand that the Congress
To my surprise I have just learned that paragraph X of Vet-
support the President. I, for one, shall fully support his measures
erans' Regulation No. 10 is to be so construed that all veterans
264
CONGRESSIONAL RECORD-APPENDIX
JANUARY 8, 1934
(of whom there are many thousands) who are working on tempo-
other than their own words, and all reports, documents, and
rary Civil Works Administration projects and who are drawing
other matter authorized to be inserted in the RECORD shall
pensions will be dropped from the pension rolls or will have their
pensions reduced to $6 per month while so employed. The Vet-
be printed in 61/2-point type; and all roll calls and lists of
erans' Regulation to which I refer is as follows:
pairs shall be printed in 6-point type.
No person holding an office or position, appointive or elective,
4. When copy is submitted to Members for revision it
under the United States Government, or the municipal govern-
ment of the District of Columbia, or under any corporation, the
should be returned to the Government Printing Office not
majority of the stock of which is owned by the United States,
later than 9 o'clock p.m., in order to insure publication in
shall be paid a pension or emergency officers' retirement pay, so
the RECORD issued on the following morning; and if all of
long as he continues to draw a salary from such employment,
except (1) those receiving pension or emergency officers' retire-
said copy is not furnished at the time specified, the Public
ment pay for disabilities incurred in combat with an enemy of
Printer is authorized to withhold it from the RECORD for 1
the United States or for disabilities resulting from an explosion
day. In no case will a speech be printed in the RECORD of
of an instrumentality of war in line of duty during an enlistment
the day of its delivery if the copy is furnished later than 12
or employment as provided in Veterans' Regulation No. 1 (a), part
1, paragraph 1; (2) those persons so employed whose pension is
o'clock midnight.
protected by the provisions of the act; however, the rate of pen-
5. The copy of speeches containing large tabular state-
sion as to this class shall not exceed $6 per month; (3) those
ments to be published in the RECORD shall be in the hands of
persons whose salary or compensation for service as such em-
ployee is in an amount not in excess of $50 per month; and (4)
the Public Printer not later than 6 o'clock p.m. on the day
widows of veterans."
prior to their publication.
Realizing how harshly this regulation, unless amended, will bear
6. Proofs of leave to print" and advance speeches will
upon thousands of veterans who are now receiving the first wages
not be furnished the day the copy is received, but will be
they have earned in many months, I called upon the legal depart-
ment of the Veterans' Administration for an official opinion as to
submitted the following day, whenever possible to do so with-
their status, and Mr. J. O'C. Roberts, the solicitor of that Admin-
out causing delay in the publication of the regular pro-
istration, in a letter to me advises as follows:
ceedings of Congress. Advance speeches shall be set in the
It is the understanding of this office that persons employed on
RECORD style of type, and not more than six sets of proofs
Civil Works Administration projects are Federal employees. Being
Federal employees, they are subject to the provisions of paragraph
may be furnished to Members without charge.
X, Veterans' Regulation No. 10."
7. If copy or proofs have not been returned in time for
Therefore, Mr. President, unless you change the situation by an
publication in the proceedings, the Public Printer will insert
Executive order all pensioned veterans, except battle casualties,
the words " Mr.
who are employed on Civil Works, will have their pensions cut
addressed the Senate (House or Com-
off entirely unless on March 20 last they were drawing pensions
mittee). His remarks will appear hereafter in the Appen-
for direct service-connected disabilities or unless they are Spanish
dix and proceed with the printing of the RECORD.
War soldiers over 62 years of age, and these two classes will suffer
8. The Public Printer shall not publish in the CONGRES-
a reduction in pension in every instance to $6 a month unless
they surrender their Civil Works employment. This, if allowed to
SIONAL RECORD any speech or extension of remarks which has
proceed, will inevitably create many glaring inequalities, and will
been withheld for a period exceeding 30 calendar days (ex-
breed a feeling of injustice in the hearts of the veterans employed
clusive of Sundays and holidays) from the date when its
on Civil Works, many of whom have not had a day's employment
for years and whose income now as Civil Works employees is very
printing was authorized: Provided, That at the expiration of
temporary and very small. Unless the regulation referred to is
each session of Congress the time limit herein fixed shall be
modified the Civil Works employees will be subjected to a reduc-
10 days, unless otherwise ordered by the committee.
tion of pension to exactly the same extent as a veteran who is on
9. When leave has been obtained to print (1) a speech not
the regular Government rolls who .draws a much larger salary and
enjoys all the retirement rights and other privileges of permanent
delivered in either House, (2) a newspaper or magazine
employment, and it is also true that those veterans who are in
article, or (3) any other matter not germane to the proceed-
outside employment are not subjected to any reduction whatsoever
ings, the same shall be published in the Appendix, but this
in the amount of their pensions.
I feel certain, Mr. President, that the mere statement of the
rule shall not apply to quotations which form part of a
fact as to how this regulation would operate will appeal to your
speech of a Member, or to an authorized extension of his
sense of fairness and justice and to your well-known desire to do
own remarks. The official reporters of each House shall
right by all men, and I respectfully ask you to consider the advisa-
indicate on copy and prepare headings for all matter to be
bility of issuing an Executive order to correct this situation.
Very sincerely yours,
printed in the Appendix, and shall make suitable reference
LOUIS LUDLOW.
thereto at the proper place in the proceedings. Any Member
may, upon request noted on the manuscript, have an author-
LAW AND RULES FOR PUBLICATION OF RECORD
ized extension of his own remarks printed in the Appendix.
10. Illustrations shall not be inserted in the RECORD with-
CODE OF LAWS OF THE UNITED STATES
out the approval of the Joint Committee on Printing.
TITLE 44. SECTION 181. CONGRESSIONAL RECORD; ARRANGEMENT,
STYLE, CONTENTS, AND INDEXES.-The Joint Committee on Print-
Requests for such approval should be submitted to the Joint
ing shall have control of the arrangement and style of the
Committee on Printing through the Chairman of the Com-
CONGRESSIONAL RECORD and while providing that it shall be
mittee on Printing of the respective House in which the
substantially a verbatim report of proceedings shall take all
speech desired to be illustrated may be delivered. Illustra-
needed action for the reduction of unnecessary bulk, and
shall provide for the publication of an index of the CONGRES-
tions shall not exceed in size a page of the RECORD and shall
SIONAL RECORD semimonthly during the sessions of Congress
be line cuts only. Copy for illustrations must be furnished
and at the close thereof. (Jan. 12, 1895, c. 23, § 13, 28 Stat.
to the Public Printer not later than 12:30 p.m. of the day
603.)
preceding publication.
Pursuant to the foregoing statute and in order to provide
11. The permanent RECORD is made up for printing and
for the prompt publication and delivery of the CONGRES-
binding 30 days after each daily publication is issued; there-
SIONAL RECORD, the Joint Committee on Printing has adopted
fore all corrections must be sent to the Public Printer within
the following rules, to which the attention of Senators,
that time: Provided, That upon the final adjournment of
Representatives, and Delegates is respectfully invited:
each session of Congress the time limit shall be 10 days,
1. The Public Printer will arrange the contents of the
unless otherwise ordered by the committee.
RECORD as follows: First, the Senate proceedings; second,
12. The Public Printer shall insert the contents of the
the House proceedings; third, the Appendix: Provided, That
daily Appendix in its regular place in the proceedings of
when the proceedings of the Senate are not received in time
each House when printing the bound edition of the CONGRES-
to follow the arrangement, the Public Printer may begin the
SIONAL RECORD.
RECORD with the House proceedings.
2. The Public Printer shall begin the proceedings of each
CONGRESSIONAL DIRECTORY
House and the Appendix on a new page, with appropriate
The Public Printer, under the direction of the Joint Com-
headings centered thereon.
mittee on Printing, may print for sale, at a price sufficient to
3. The Public Printer shall print the verbatim report of
reimburse the expense of such printing, the current Congres-
the proceedings and debates of the Senate and House of
sional Directory. The money derived from such sales shall
Representatives, as furnished by the official reporters of the
be paid into the Treasury and accounted for in his annual
CONGRESSIONAL RECORD, in 71/2-point type; and all matter in-
report to Congress, and no sale shall be made on credit.
cluded in the remarks or speeches of Members of Congress,
(U.S. Code, title 44, sec. 150, p. 1424.)
JOE T. ROBINSON, CHAIRMAN
United States Senate
CONFERENCE OF THE MAJORITY
March 9, 1934
INTERIOR DEPT.
MAR 13 1934
PERSONAL
OFFICE OF
THE SECRETARY
To The President
The White House
Washington, D. C.
My dear Mr. President:
A day. or two ago, I informed you that the Public Works
Administration has totally failed to function in Arkansas. With
the exception of the Federal aid to highways and certain levee
construction work, no operations under the Public Works
Administration have been commenced. A single project - I believe
it is a bridge project - costing $20,000 has been closed. All
others that have been approved are being held up. The reasons
assigned being chiefly technical, but actually to penalize
the State for its alleged policy of repudiation. As a matter of
fact there has never been any actual repudiation. A circumstance
arose in which certain road bonds and other obligations of the
State came into default. A refunding Act was passed some two
or three years ago, which was not acceptable to the bond holders
and this quite naturally resulted in the complaint that the
repudiation of the obligations was in prospect. Nothing of this
kind was intended, but I admit the matter was badly handled.
Some months ago the General Assembly-passed a Refunding
Bill which has the approval of the bond holders. It reduced
interest rates, but there was no scaling down as to principal.
The fact is that all the creditors are pleased with the arrange-
ment.
The former Chief of the Finance Division assigned as the
reason the condition of affairs in connection with the State
Obligations. While Mr. Ickes never confirmed the attitude of
Mr. Mansfield on this subject, it is fully apparent that the
State is being boycotted and of course I must take every remëdy
To The President
Page 2.
within my reach to correct this.
I thought you would like to be more definitely
informed from the interest you manifested on the subject a day
or two ago and perhaps will be able to give some directions or
make suggestions regarding it.
With personal regards, I am
Yours sincerely,
Jr. I Ariman
THE WHITE HOUSE
WASHINGTON
My dear Senator Robinson:
I have your letter of March 9 regarding the activity of
the Public Works Administration in Arkensas, in which you
suggest that the State is being boycotted because of the circum-
stance that certain of its road bonds and other obligations came
into default some time ago,
I have investigated this matter st some length, and I can
assure you that this has not been the case, Every Arkansas
project has been considered on its merits by the Public Works
Administration, and the P.W.A. Finance Division has recommended
approval of every application which offered reasonable security.
In the case of State projects, the security for which would be
the faith and credit of the State, necessarily the fact of de-
fault had to be taken into account. In such cases the Finance
Division recommended approval subject to action on the part of
the State which would lead to & satisfactory agreement BE to
the default of bonds, as without such action it could not be
held that the State's credit presented 8 reasonable security
for a new loan, As you suggest in your letter, progress is
being made along this line.
So for as the municipal applications were concerned, such
projects were studied without regard to the financial condition
of the State government. While a number of these applications
could not be regarded as affording reasonable security, that
determination in each instance was guided by the same principles
which determined such & conclusion in the cases of other States.
The principal difficulty in Arkanses has not been È legal
one, except to the extent that constitutional and statutory
restrictions limited the borrowing power of Arkansas municipal-
ities on general obligation bonds, Consequently, except in a
few cases, Arkansas cities and towns could not or would not
pledge their full faith and credit, and undertook to finance
their projects through the use of revenue bonds. This resulted
- 2 -
in making the burden of security rest entirely upon estimated
revenues, and accordingly it use necessary to scrutinize such
applications, since the failure of enticipated income to now
sure up to expectations night result in a default on the bonds.
Hotwithstanding this, however, muserous applications were ap-
proved, end in no case mas the future marketability of the
bonds in question considered a requisite to reasonable security.
1 sisable portion of the applications, from the
dollar and cents standpoint, cane from institutions of higher
education. 4s to this type of loan, neither the full faith
and credit of the State, not of any of its political subdivisions,
was pledged in repayments revenues from the project must be
looked to for the service of the Government Lonn. The Public
Works Administration would therefore occupy only the position
of & general creditor in case there was a deficiency in the
revenues to be derived from the project. A number of such
loans more approved because it use felt that social cousiders-
tions and the excellent moral risk would offect the lack of
full technical security.
I feel sure th to you will agree with me, after having
Looked into this matter, that there is no foundation shatso-
over for the suggestion that the Public Borks Administration is
endervoring to boycott the State of Artnces, and that the only
source for any such thought would be in the ninds of those was,
to quote your letter, handled the refunding situation bodly.
So too, I do not think 10 fair to say that the Public Works
Administration has failed to function in Arkansos. Through
Hereh 10, 1934, Public Works funds amounting to $26,554,942 had
been allotted to Arkansas, of which $5,857,208 represented 22
non-Federal projects. This vas a larger amount then van allotted
to a good any States, both proportionately and in the aggregate.
The figures which I have seen indicate pretty clearly that, on
the bests of its population and unexployment, Arkansas has been
very liberally trested indeed.
et
So for as the status of approved applications is con-
cerned, I find that contracts are being sent out E.S. rapidly
68 possible, and that the Public Works Administration is
writing for the applicants to forward their bond transcripts.
Cortain contracts involve very difficult points on which the
Public Works Administration is actively working, end as these
contracts are completed end sent out to the field, signed and
returned for execution, 1 feel sure that projects will get
under way just as coon 88 the westher will permit. It is
vitally important, though, that the applicants cooperate on
their part, and expedite the signing of contracts and the
preparation of their transcripts.
In connection with the amount of work under contract,
I think 15 only fair to point out that on Harch 10, 1954 only
53 percent of the highway funds which had born allotted to
Arkansas under Section 204 of the Recovery Act ware under
contract. The average for the country at large $21.85 about 75
percent.
This money use made available last June. It represented
on outright grant and did not require any of the formalities
or compliestions which the State law prescribes in the case of
a bond issue. The fact that such # relatively small percentage
of money has been put to work efter nine months would seen to
indicate that a certain lack of local interest any be respon-
sible for the conditions of which you complain.
Summing up, I would may, first, that there is no warmot
for the statement that Arkensas has been boycotted because of
road bond defaults; that the State has received very generous
treatment DO for as allotments are concerned; that contracts
are being sent and closed just as rapidly us possible; and
that the State itself has not been particularly aggressive in
puttingits Public Works emery under contract.
Very sincerely,
Franklin D. Roosevelt
Non. Joe T. Robinson,
United States Senste,
Washington, D. c.
THE WHITE HOUSE
WASHINGTON
Ti73
4/14 34
Memo. for Mr. McIntyre:
Senator Robinson of Arkansas says he has
received following telegram from Mr. George
Donaghey, a former Governor of Arkansas.
"I and delegation of prominent Arkan-
sans are contemplating coming to
Washington early next week, hoping
to confer with President upon proposed
recreational areas for Arkansas
STOP Can such conference be arranged
STOP This movement if successful will
jump Arkansas forward twenty years,
and when explained you will enthuse
over it. 11
The Senator has wired Mr. Donaghey that
he will confer with McIntyre on it on his
return from Florida and see if it can be arranged.
The Senator says he is not familiar with
this plan but in view of the prominence of
party, if President will arrange to see them
he will appreciate it.
RB
Jalks Sen to Robina See. 4/16
mecadite
76/5/30
Gao. W. + Danajhy this Jamer Sur
11 am tiday.
To talk areas
November 15, 1934.
473
Dear Joe:
Many thanks for your note.
Mao is wiring you suggesting Novem-
ber 26 to come to Warm Springs. You
helped tremendously in the states you
went to. I can hardly believe the
election Day results yet.
As ever yours,
Honorable Joe T. Robinson, #
413 Post Office Building,
Little Rock, Arkansas.
rfb
JOE T. ROBINSON, CHAIRMAN
United States Senate
starm
CONFERENCE OF THE MAJORITY
Little Rock, Arkansas
Hald
413 Post (ffice Building
November 9, 1934
PERSONAL
My dear Mr. President:
The result of the election must be very
gratifying to you as it certainly is to me.
I have just this morning returned from cam-
paigning in Indiana, New Mexico and Nyoming.
I shall be in readiness to come to you at
Narm Springs when you call me, but would appreciate a
few days notice, particularly if Mrs. Robinson is to
accompany me.
Accept my congratulations for the splendid
support which the voters of the Country are giving you.
with greetings and good wishes, I am
Yours sincerely,
In T. Advison
To The Fresident
The White House
Washington, D. C.
June 2, 1934.
Hon. Joe T. Robinson,
United States Senate.
Dear Senator Robinson:
Personal and Confidential.
This complies with your request to give you a brief summary
of the work of our department and to advise you approximately
the number of appointments we have secured for the Democratic
Leaders since our division was set up in the Department of
Agriculture in June, 1933.
Honesty compels me to admit that so far as appointments
are concerned, very little was accomplished during the first
six months, because at that time every position in the AAA
under $2600 required Civil Service status. Last December,
however, Mr. Wallace waived the Civil Service requirements in
two of the divisions and permitted us to make recommendations
for appointments to them. We soon convinced them we could give
them better qualified people than they were getting under
Divil Service and since then we have been getting a larger
percentage of the appointments for our people.
I am attaching a copy of our quota sheet as of May 15,
1934, which shows some 2000 appointments as of that date (about
250 have been made since then). It also shows how they are
distributed among the various states and the effort we are
making to equalize the appointments according to population.
Since April 9 we haveplaced over seven hundred people
in the Agricultural Adjustment Administration, all of whom
have been properly endorsed by the Democratic Leaders. For
the first nine months due to the shortage of help in our office,
we could not answer all our mail and were unable to even notify
the leaders when appointments were made to people they sent us.
We now have the use of the Stenographic Pool, however, and
during the past three months we have been keeping up with
correspondence fairly well and have notified each party leader
when an appointment was made to a person recommended by them.
-2-
I am attaching copy of letter along the general line that
we are now sending out to each Senator, Congressman, or State
Leader, when appointments are made of their people; also copy
of letter that we are now writing to each person who receives
an appointment reminding him to thank the leaders who endorsed
him.
I am also enclosing copy of letter accompanying our
report this week to the National Committee covering appointments
to supervisory positions in the CCC camps, showing 82 appointments
to those positions last week and a summary showing that in the
past six months we have secured supervisory positions in those
camps for 1342 of our people.
In addition to these appointments we have secured temporary
positions for 262 people in connection with the Agricultural
Construction Work at Beltsville, Maryland, and have also secured
appointments for quite B. few people in other departments where
we were not able to take care of them here. No record, however,
has been kept of the latter.
Summarizing the above, it shows that we have secured
positions for approximately 4000 democrats, most of which has
been accomplished in the past six months.
It goes without saying that these results couldnot have
been accomplished without the help of Secretary Wallace, Mr. Davis,
and Dr. Tugwell. I have nothing but praise and commendation
for the splendid cooperation that they have been and are now
extending this office, and through me, to the Administration
Leaders. They deserve our hearty cooperation.
Trusting this is the information you desire, and thanking
you for the cooperation you have extended our office, I am
Sincerely yours,
Julien N. Friant,
Special Assistant to the Secretary.
Enclosures.
COPY OF LETTER WRITTEN TO SENATORS AND STATE LEADERS
NOTIFYING THEM OF APPOINTMENTS
June 2nd, 1934.
Hon. Joe T. Robinson,
United States Senate.
Dear Senator Robinson:
A short time ago you sent Mr. Philip B. Pollock to
us with a request that we assist you in securing a position
for him in the Agricultural Adjustment Administration.
I am pleased to advise that we have been successful
in placing him in the position of Assistant Audit Clerk at
a salary of $1,620 per annum.
Because of your interest in Mr. Pollock it was a
pleasure for us to do this.
Sincerely yours,
Julien N. Friant,
Special Asst. to the Secretary.
COPY OF LETTER WRITTEN TO APPOINTEE REMINDING
HIM TO THANK THOSE WHO ENDORSED HIM.
June 2nd, 1934.
Mr. James C. Tipton,
1899 Ingleside Terrace,
Washington, D. C.
Dear Mr. Tipton:
A short time ago we recommended you to the Agri cultural
Adjustment Administration and a little later had the pleasure
of approving your appointment to the position of Junior Field
Auditor.
It was a pleasure to us to do this because of the fine
recommendations you brought us and because from a study and
analysis of your training and experience as shown by your
application, we were convinced that you are well qualified
for the position to which you were appointed. We feel sure
that by your work you will justify not only our judgment, but
our confidence in you.
Please pardon us for mentioning it, but if you have
not already done so, we suggest that you write a letter thank-
ing each of those who wrote us in your behalf. We are sure
they will appreciate it and know they deserve it.
Trusting you are enjoying your work and are successful
in it, I am
Sincerely yours,
Julien N. Friant,
Speci al Asst. to the Secretary.
COPY OF REPORT TO NATIONAL COMMITTEE ON CCC APPOINTMENTS
May 29, 1934.
Mr. Emil Hurja,
Assistant to the Chairman,
Democratic National Committee,
Washington, D. C.
Dear Emil:
Enclosed herewith is a copy of the weekly report on
appointments to supervisory positions in C.C.C. camps. The
report covers the week of May 21-26 and includes the names of
82 men who were appointed upon the recommendations of advisors,
as shown.
I believe this will bear out my prediction of a short time
ago that we would soon see a marked increase in appointments in
this field. As when we discussed this matter in your office, I am
still of the opinion that this source of appointments is worthy of
every consideration.
Our records indicate that we have secured supervisory positions
in 0.0.0. camps, during the last six months, for 1342 men at salaries
which ranged from $110 to $200 per month. We shall keep you advised
as reports of appointments are received from the Forest Service.
Sincerely yours,
Julien N. Friant,
Special Asst. to the Secretary.
STATE ALLOTMENT OF POSITIONS
100% EQUALS 1000 PLACES
MAY 15, 1934
6Z
42
64
74
901
49
57
201
871
STATE
ALABAMA
ARIZONA
ARKANSAS
CALIFORNIA
COLORADO
CONNECTICUT
DELAWARE
DIST COL
FLORIDA
GEORGIA
IDAHO
ILLINOIS
INDIANA
IOWA
KANSAS
KENTUCKY
LOUISIANA
MAINE
MARYLAND
MASS.
MICHIGAN
MINNESOTA
MISSISSIPPI
MISSOURI
MONTANA
NEBRASKA
NEVADA
NEWHAMP
NEWJERSEY
NEWMEXICO
NEW.YORK
NCAROLINA
N.DAKOTA
OHIO
OKLAHOMA
OREGON
PENNA.
RHODEISLAND
SCAROLINA
S.DAKOTA
TENNESSEE
TEXAS
UTAH
VERMONT
VIRGINIA
WASHINGTON
W.VIRGINIA
WISCONSIN
WYOMING
STATE
300
195
50
68
110.
1954
25
300
30-
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56
38
100
100
62
290
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STATE
ALABAMA
ARIZONA
ARKANSAS
CALIFORNIA
COLORADO
CONNECTICUT
DELAWARE
DIST.COL.
FLORIDA
GEORGIA
IDAHO
ILLINOIS
INDIANA
IOWA
KANSAS
KENTUCKY
LOUISIANA
MAINE
MARYLAND
MASS.
MICHIGAN
MINNESOTA
MISSISSIPPI
MISSOURI
MONTANA
NEBRASKA
NEVADA
NEW HAMP.
NEWJERSEY
NEWMEXICO
NEW YORK
N.CAROLINA
N.DAKOTA
OHIO
OKLAHOMA
OREGON
PENNA.
RHODEISLAND
S.CAROLINA
S.DAKOTA
TENNESSEE
TEXAS
UTAH
VERMONT
VIRGINIA
WASHINGTON
W.VIRGINIA
WISCONSIN
WYOMING
STATE
100%
17
4
14
48
10
13
3
4
12
19
5
66
30
22
17
23
16
7
14
34
37
22
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34
6
13
3
5
33
4
101
24
7
53
21
9
66
6
12
7
18
42
6
4
17
14
16
26
3
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201.5
%
44
7
39
37
IT
31
7
62
42
56
11
85
51
59
21
60
64
13
74
77
54
51
34
53
16
21
5
12
35
11
139
90
II
72
41
19
100
9
49
9
57
61
20
I
87
20
42
34
5
201.5°
Mr. Willis
Donot release
ADing Press Intettigine
2069
com.
P P.LS L (mmo Prounell)
n
M.V.F.
7
send by to byto
Robinan
Senator
Ri
Ri
Personal
473
E.
January 30, 1935.
Dear Joe:-
Many thanks for your message of birthday
greetings.
I want you to know how much I appreciate
x202
the splendid fight you have made. Will you be good
enough also to convey my personal gratitude to your
+419
fifty-one colleagues who also voted for adherence
PPF
by the United States to the World Court? All of you
copy tor 48
have kept faith with the Republican and Democratic
Party Platforms. More than that; you have done a
service for the cause of peace and in doing this
you have shown personal and political courage.
AB to the thirty-six Senators who placed
thémselves on record against the principle of a
World Court, I am inclined to think that if they
ever get to Heaven they will be doing a great deal
of apologizing for a very long time -- that is if
God is against war -- and I think He 1s.
Affectionately and sincerely,
Hon. Joseph T. Robinson,
#
United States Senate,
Washington, D. C.
January 30,1935
Hon. Joseph T. Robinson
United States Senate
Washington, D.C.
Dear Joe:-
Many thanks for your message of birthday greetings.
I want you to know how much I appreciate the splendid fight
you have made. Will you be good enough also to convey my personal gratitude
to your fifty-one colleagues who also voted for adherence by the United
States to the World Court? All of you have kept faith with the Republican
and Democratic Party Platforms. More than that; you have done a service
for the cause of peace and in doing this you have shown personal and
political courage.
As to the thirty-six Senators who placed thems eves on record
against the principle of a World Court, I am inclined to thani think
that if they ever get to Heaven they will be doing a great deal of
apologizing for a very long time -- that is if God is against war --
and I think He is.
Affectionately and sincerely,
Dear Jun
202
[Jan.30, 1935]
accept Will my yun thanks h juad and grangh x
Carvery any personal and
fratitude A zunr is calliagns
who natud fm adherwe with
her tel cunat? all of yun
and hma Damvergte hipt (nith with The
Rmaly platkorms. Mire Than
that: your has clane a
for the linse nb pauce, and
in during ithan Shawn personal
andpolitival camage.
GENERAL SERVICES ADMINISTRATION
National Archives and Records Service
FRANKLIN D. ROOSEVELT LIBRARY
HYDE PARK, N. Y.
GENERAL
SERVICES
as D the 36 who voted
primiple of h morkl
current I am instrud W Think
that it therapr Tair X is Hanerer
mja the whicher
Hamay to, they will for duig
a lato of give
— Phutso 20 if Sail
is afringther - and I thmuk
he is.
GENERAL SERVICES ADMINISTRATION
National Archives and Records Service
FRANKLIN D. ROOSEVELT LIBRARY
HYDE PARK, N. Y.
444
COPY
PPF413
February 15, 1935
MEMORANIUM FOR
SENATOR JOSEPH T. ROBINSON
In the matter of this alumimm plan] for development
in Arkansas and Alabama, it seems to me that Mr. Gaudy should be
told that neither you nor I can have anything to do with it. It may
be a good project and again it may not. It seems to me that Public
Works and R. F. C. should be the sole Judges of its merit.
In any event, I want to make it clear that G. Hall
Roosevelt, even though he is only a distant cousin of mine, should
have nothing whatsoever to do with this, even though his connection
with it is a wholly legitimate business one.
F. D. R.
Letter to Senator Robinson from R. J. Gaudy, 155 North Clark Street,
Chicago, Ill., with data, re Standard Aluminm and Alloy Company.
See 1050 for first carbon
JOE T. ROBINSON, CHAIRMAN
United States Senate
JUN THE WHITE HOUSE
CONFERENCE OF THE MAJORITY
RECEIVED 19 1935.
DE
June 16, 1935
Rx
Elt
7
My dear Mr. President:
It was very gracious and thoughtful of you to send
me the bound volume, one of fifty copies, of your address
delivered in the House of Representatives, May the 22nd
1935. Undoubtedly it will be included among the State
papers of outstanding importance. During my recent visit
to Arkansas many citizens referred to the message with
approval, ever where some of them took a contrary view to
that which you expressed relating to the Cash payment of
Adjusted Service Certificates. The volume is particularly
prized because it is appropriately autographed.
With cordial greetings and regards, I am
Yours sincerely,
Ja. P.Rdmson.
To The President
The White House
Washington, D. C.
P.P.F.
THE WHITE HOUSE
473
WASHINGTON
PRIVATE & CONFIDENTIAL
X598
March 18, 1935.
MEMORANDUM FOR SENATOR ROBINSON
I am sending you -- for your
eyes only - two reports on conditions
in eastern Arkansas. It seems to me
that they sound rather reassuring.
Will you let me have these
letters back for my files?
Letter from General T. G. Ashburn, Pres., Inland
Waterways Corp., 1016 Munitions Bldg., Wash. D.C., 448
3/13, to Mr. McIntyre,
F. D. R.
enclosing, in response to President's request for
confidential information re Arkansas, letters from
E. C. Hornor, Helena, Ark., 3/11, stating that sec-
tion free from disorder of any kind on the whole
and no trouble among the levee workers; and from
Edwin Bevens, Helena, Ark., 3/11, reporting no dis-
satisfaction with the Administration in his section.
Speaks of work of Norman Thomas locally.
605
TELEGRAM
The White House
PPF
Mashington
WX 7-2-35
[ 7-2-37 ]
FDRL (RLJ)
Memo. for M.H.M.
PK
Senator Robinson this noon introduced a substitute court
bill. Possibly the President will be interested in the provision
of the bill which refers to the Supreme Court. This provision
reads as follows:
"Sec. 1. Section 215 of the Judicial Code of the United
States is hereby repealed and reenacted to read as follows:
'Sec. 215. The Supreme Court of the United States
shall consist of a Chief Justice and eight associate
justices, any six of whom shall constitute a quorum;
provided, however, the number of justices may be
increased by the appointment of an additional justice
in the manner now provided for the appointment of justices,
for each justice, including the Chief Justice, who at
the time of the nomination has reached the age of
seventy five years, but not more than one appointment
of an additional justice as herein authorized shall be
made in any calendar year, provided that the authority
to appoint for any calendar year shall not lapse by
reason of the rejection of the nomination, delay in
confirmation, inabilitybto nominate during an adjourn-
ment of the Senate or withdrawal of the nomination in
a succeeding calendar year: And when such additional
justice, or justices, shall have been so appointed no
vacancy caused by the death, resignation or retirement
of a justice (except the Chief Justice) who has reached
the age of seventy five years, shall be filled, unless
the filling of such vacancy is necessary to maintain at
not less than nine the number of justices who have not
reached the age of seventy five. The number of appoint-
ments so made shall not, at any time, increase the
total number of justices by more than two-thirds of
the permanent membership of the court. If the number of
members of the Supreme Court is in excess of nine not
less than two-thirds of the membership shall constitute
a quorum. As used in this Section, the term justice'
shall not include a justice who has retired from regular,
active service.' ft
Early.
P.P.73
7.
August 16, 1935
Dear Senator:
This is to remind you of and
thank you for your acceptance of the President's
invitation to meet with him at the White House,
Sunday evening at eight thirty o'clock.
Very sincerely yours,
STEPHEN EARLY
Assistant Secretary to
the President
Honorable Joe Robinson,
United States Senate,
Washington, D. C.
ste-pls
1
ppt.
six
Hyde Park, How York,
September 11, 1935.
By cear Benetor:
3 have your letter of September third with
respect to Carroll Cone, and want to assure you that
I will keep your recommendation in mind.
with kind regards,
Very sincerely yours,
Bonorable Joe T. Robinson,
United States Senate,
mashington, D. C.
COMMERCE
Recommending Mr. Cone for appointment as Director of
Aeronautics.
/ at copy filed 3-P
Poughkeepsie, N. Y.,
September 11, 1935.
MEMORANTION FOR SECRETARY ROPER:
Respectfully referred for your considers-
tion.
M. H. MOINTYRE
Assistent Secretary
to the President
mwd
Letter of 9-3-35 to the Pres. from Senator Joe T. Robinson,
recommending Carroll Cone for appointment as Director of
Aeronautics.
THE WHITE HOUSE
WASHINGTON
March 13, 1936
PERSONAL AND CONFIDENTIAL
My dear Senator:
H73
No reply has been made to this and I
doubt whether any should.
The President, however, wanted me to
show it to you and talk to you about it.
The only disadvantage about just
ignoring it - and that's what it rates - is the
fact that he may later on make it public and say
that the President refused to come out for Robin-
son.
My own idea about it is to find an
indirect reply by the President, saying something
publicly that would convey the answer.
I would like to talk with you about it
Monday when we discuss the Arkansas trip.
Sincerely yours,
Secretary
to the President
Honorable Joseph T. Robinson,
United States Senate,
Washington, D. C.
Enclosure
4
in
473
March 15, 1936
PERSONAL AND CONFIDENTIAL
My dear Senator:
X 598
No reply has been made to this and I
doubt whether any should.
X PPT-869 PPF 65
x
"
The President, however, wanted the to
X 300 ank.1
show it to you and talk to you about it.
The only disadvantage about just
ignoring it - end that's what it rates - is the
fact that he may later on make it public and say
that the President refused to come out for Robin-
son.
My own idea about it is to find an
indirect reply by the President, saying something
publicly that would convey the answer.
I would like to talk with you about it
x 200-r
Monday when we discuss the Arkaneas trip.
Sincerely yours,
M. H. McINTYRE
Assistant Secretary
to the President
Honorable Joseph T. Robinson,
#
United States Senate,
Washington, D. C.
X
mwd
Enclosure Letter of 3-8-36 to the Pres. from J. Rosser Venable, Little
Rock, Ark., asking the President, "Do you intend to endorse
Robinson in your speech in your visit to Arkansas?" and stat-
ing that. this question must be answered by Pres. personally.
Lince Roed Ark
ma 81936
Dear
t am
intered to endorse Robinson w
a paint black question Do you
your arkansas? speech ? in your visit to
This question must he
ausomend by you personally
J.Rasser Venable
"Arbusos's nex rus. Senator"
Refusal to answer may
cause some political warry
Literary Diqual show you 60 % and
Relivian is fer less is strengths
STANDARD FORM No. 14A
APPROVED BY THE PRESIDENT
MARCH 10, 1926
5WU Pn FROM
The White House
Mashington
TELEGRAM
4 OFFICIAL BUSINESS-GOVERNMENT RATES
9570
JULY 3 .1936
HONORABLE JOE T ROBINSON
U.S. GOVERNMENT PRINTING OFFICE
JEFFERSON ISLAND CLUB
Sherwood, Md.
PPF
473,
THE PRESIDENT REGRETS EXCEEDINGLY THAT IT WILL NOT BE
POSSIBLE FOR HIM TO JOIN YOU FOR LUNCH ON MONDAY STOP
SOME MATTERS HAVE COME UP HERE IN WASHINGTON WHICH MAKES
IT IMPERATIVE THAT HE RETURN TO WASHINGTON EARLY MONDAY
MORNING REGARDS
M. H. McINTYRE
Assistant Secretary to the President
mismole
300-A
(Envel. marked "personal & confidential")
should not be ignored.
P.P.F.
g-tititi
Also states complaints against WPA are mis-handled and
tion; suggests 2 Demos. should be placed on the Bd.
ing election"; feels Democrats do not receive fair considera-
throw obstacles in the way of Demo. success in the approach-
administrative officers of Social Security Bd. who "gleefully
Pers. & Conf. let. from JOE T. ROBINSON, 10/1/36, regarding
about this at your convenience?
MEMORANDUM FOR
Elitt
x5qf
F. D. R.
Will you speak to me
GOVERNOR WINANT
October 7, 1936.
WASHINGTON
THE WHITE HOUSE
0141
May 12, 1936
CONFIDENTIAL
R.
2.2.822
MEMORANDUM FOR ACTING DIRECTOR BELL:
The President asked me to take
X
this up with you and see what you think.
Will you return this with your recommen-
dations.
M. H. McINTYRE
Assistant Secretary
to the President
mm
Confidential Memo to the President from Joe T. Robinson,
Re S 630, pending before the House Committee on Agriculture,
to authorize the reduction in interest on loans by the RFC
to levee, drainage etc. districts for refinancing purposes.
Will appreciate the President's calling the matter to the
attention of Congressman Jones, Chairman.
PPF
STEVE:
473
I think you should get
this over to Sen. Robinson the first
thing this morning.
F.D.R.
Lile
DEPARTMENT OF STATE
Toorud lote the to +
OFFICE OF THE SECRETARY
WASHINGTON
Jan. 27, 1936.
Dear Mr. President:-
the R's to contact they alud
I enclose a few rough notes which I have made
for Senator Robinson's speech. I have sent them along
to him, and thought you might be interested in the
P.P.
a
marked paragraph on page 2.
B.
473
Sincerely yours,
Greeshille
x598
The President,
X X20
The White House.
PPF676 PPF 676
1925
the
January 27, 1936.
MEMORANDUM FOR
PPE 3146
HONORABLE JOSEPH T. ROBINSON.
X1150
The so-called Liberty League, of course, has
the most perfect right to dine and to offer entertaining
speeches for public consumption, as on last Saturday
evening in Washington. The American people, however,
have an equal right to know and understand the real back-
ground and significance of this widely advertised
occasion. It is entirely fair to say that the Liberty
League is to all practical intents and purposes the du Pont
League, since it is largely, if not chiefly, financed by
the du Ponts and their personal affiliates and interlock-
ing relationships.
In the second place, this was a du Pont sponsored
dinner occasion, judging by the presence and conspicuous
position of most members of the entire du Pont family
and their personal affiliates or associates. The fact
that a dinner largely representing vast accumulated
wealth and vested interests was thus staged, even though
intended to affect public opinion, is still entirely
within the rights of those sponsoring the same.
It is fair also to say that the du Ponts at
this dinner are speaking for what the President in his
Jackson
- 2 -
Jackson Day speech described as the "small but powerful"
group of business men whose social, business and economic
philosophy was that which dominated the Hoover adminis-
tration and piloted the nation to unparalleled disaster
in 1928-32. It is assumed that they were honest in
their wholly narrow and unsound ideas then as now.
Evidently the du Pont dinner on Saturday evening
was speaking for the Mellon-Grundy-du Pont-Hoover
group in charge of the nation up to and during the
depression of 1929-33. This they have a perfect right
to do, but there should be no misunderstanding as to the
identity and the objective of those who evidently dominate
the policies and the course of the so-called Liberty League.
They know that the supreme objective of the
Roosevelt administration is democracy, economic security,
and social justice; and that in view of the devastating
Hoover depression, it is necessary for the federal gov-
ernment to inaugurate both a temporary emergency program
and a long-view or permanent program, the former gradually
disappearing or merging into the latter as emergency
conditions disappear, save in those instances where new
economic or social conditions and their reforms render
patently necessary the permanent adoption of portions or
phases of the temporary program. It is patent that
those
- 3 -
those whose narrow, shortsighted, and selfish economic
policies were more than any other single factor
responsible for the panic, should not again be placed in
charge of the federal government, still clinging as they
are to those identical ideas, plans and policies.
This group of "small but powerful" business men
have a perfect right to segregate themselves and seek
again to foist their suicidal economic philosophy upon
the nation, as they did during the Hoover adminis-
tration, but they must not and shall not do so in disguise
or under false pretense. They cannot and shall not assume
a self-righteous attitude and, wrapping themselves in
the American flag, pretend to the American people that,
like the Pharisee, they are different from what they
really are, and that they are not like other men.
Since when have our du Pont friends secured a monopoly
either in the American flag or in the patriotism of
this great Republic? Who gives them the right to
desecrate the names of Jackson and Jefferson by invoking
their names in support of their vested interest, monopolistic,
and chiefly selfish ideas?
The fantastic nature of their attack was in the
climax of those who were speaking for them to the effect
that America of today is Russia of today. Every school
child
- 4 -
child in every civilized nation knows the utter absurdity
and falsity of this imputation. The du Ponts would not
have been allowed to stage this Belshazzar occasion,
nor any of its wide high-sounding publicity in Russia,
where there is no freedom of the press, or of speech,
or of religion, or right of trial by jury, or of petition,
or of peaceful assemblage, or of personal or property
rights or of personal liberties of scarcely any kind or
description. And yet the solemn comparison of this
nation today with Russia was about as accurate and fair
as many other statements and solemn conclusions in the
speech-making at the du Pont dinner.
PPF
THE WHITE HOUSE
WASHINGTON
473
March 13, 1936.
MEMORANDUM FOR
SENATOR ROBINSON
The enclosed is part of a
letter from a prominent and very
successful New York business man.
Obviously I cannot use his name but
he puts in writing verbal rumors that
come from other good sources.
In strict confidence, I am
wondering whether it is worth con-
sidering that you or Alben Barkley
use this - or part of it - in a speech
over the air within the next few
weeks. If something in the way of
a market attack or a break comes to
pass in the late spring or summer
or early fall, we would have a
record which might be helpful in
showing the cause.
F. D. R.
P.P.F.
473
October 26, 1936.
Dear Joe:-
It is good to get your letter and
since October sixteenth things seem to be
continuing the improvement.
I am going into Pennsylvanis next
Thursday for a last whirl and to Wilmington,
Delaware, just to assure myself that the
Du Ponts are not broke!
In regard to the Middle West, I
have but one slight worry and that is Indiana.
I cannot get it out of my head that we are
weaker there than in Ohio and Illinois.
The New England trip brought out
the most amazing tidal wave of humanity I have
ever seen. I think we have a real possibility
in Massachusetts and some chance in Connecticut
and Rhode Island.
Keep up the good work.
As ever yours,
Honorable Joseph T. Robinson,
Little Rock,
Arkansas.
NO.
PHONES
NO 266
LAW OFFICES
GROVER C. JAMES
JOPLIN NATIONAL BANK BUILDING
JOPLIN, MISSOURI
ASSOCIATE ATTORNEYS
J. D. JAMES
ROBERT E. SEILER
October 24, 1936.
Mr. H. M. McIntyre,
Assistant Secretary,
The White House,
Washington, D. C.
( letter re his
Dear Mac:
end Tillman
B. parks, for Bd
an 7 of
appeals
in 8 single envelope that you bring both the
I am sending and to ask the President two letters Sent to Treasury
messages to his personal attention.
Everything seems to be moving in our favor
in the matter of the Election. I have never before
seen such enthusiasm as is manifested by the audiences
I have addressed. My itinerary has carried me through
Pennsylvania, Ohio, Indiana, Illinois, Michigan, Iowa
and Missouri.
With greetings and regards.
Sincerely yours,
Joe T. Robinson
JTR:w
NO.1
PHONES
NO.266
LAW OFFICES
GROVER C. JAMES
JOPLIN NATIONAL BANK BUILDING
JOPLIN, MISSOURI
ASSOCIATE ATTORNEYS
J. D. JAMES
ROBERT E. SEILER
October 24, 1936.
Honorable Franklin D. Roosevelt,
The White House,
Washington, D. C.
My dear Mr. President:
I have now completed my itinerary,
having visited Pennsylvania, Ohio, Indiana, Mich-
igan, Illinois, Iowa and Missouri. To my very
great pleasure it is indicated that you will carry
every one of these states, although my knowledge
of the details is hardly a sufficient basis for a
reliable conclusion. Your visits to Michigan and
Chicago are still talked about by the people with
great enthusiasm. If Farlby could have some
financial assistance sent direct to Frank Murphy,
it would be a very kind thing to do and would pro-
duce wholesome results.
I have every confidence of an over-
whelming vietory on the Third.
Receive my cordial greetings and
best wishes.
Sincerely yours,
JoeT Robinson
JTR:w
South Bend, Indiana
October 16, 1936
The President
White House
Washington, D. C.
Dear Mr. President:
Perhaps you will be interested to know about my obser-
vations and conclusions touching the campaign in certain areas.
I was agreeably surprised at the enthusiasm displayed
upon the occasion of my meeting in Philadelphia. The auditorium
was packed, more than 3000 people were unable to gain admission,
and there was every evidence that the organization is functioning
like clockwork. I made a wager that you will not carry Phila-
delphia by 50,000 majority, stating that it would make me happy
to lose the bet. Kelly and his associates think that the majority
may even exceed 50,000 in that city. This needs no comment. I
still cannot believe it possible.
In Ohio our cause has been gaining ground during the
last month, and when you pass through the state many proofs will
be exhibited. Canton, where I spoke, was formerly a Republican
stronghold. There is no doubt in my mind that the National
Ticket will carry it by & large majority.
I have not had much opportunity to size up the situa-
tion in Indiana. On arrival yesterday I drove about the city and
talked with a number of citizens, including some in charge of
filling stations. They did not know my interest and it is assumed
that their responses were uninfluenced by my identity. All that
I heard is favorable. This is pleasing because, as you know,
South Bend frequently has gone overwhelmingly Republican.
It has been gratifying to note the remarkable receptions
accorded you.
With greetings and good wishes, I am
Sincerely yours,
JTR/t
PET
File
433
of
January 28, 1937.
Dear Colonel Halsey:-
Thank you for sending to me
Senator Robinson's remarks on the floor
of the Senate, which I have shown to
the President. He appreciates your
thoughtfulness in sending them along.
With every good wish, I am
Very sincerely yours,
Administrative Assistant
to the President.
pr7
Colonel Edwin A. Halsey, >2959
United States Senate,
Washington, D. C.
JR: IW
Mr. Robinson. Mr. President, will the Senator yield for just a moment?
Mr. Baileyl I yield.
Mr. Robinson. I thank the Senator. I am compelled to leave the Chamber in a few
moments.
I repudiate the implication which has been injected into this debate
that the Constitution of my country and yours renders the national Government powerless
to relieve distress and suffering of the people who constitute its citizenship. If
that doctrine was ever entertained by any considerable number of lawyers or others
in this country, it has long ago been abandoned; and instead of indulging in the
hope that the U. S. will go back, as ome here have suggested, to a theory and a. practice
that disarm the greatest power we possess in the face of peril, I express the hope
that our national government will go forward rather than backward.
We now have a situation in which 500,000 people in the U. S. have
been driven by floods from their homes in terror. The doctrine of the veto message
cited by the Senator from Vrrginia is that those people should not rely on the
national government for assistance; that the national Government should have and exercise
no power to render them aid; that all power that exists, and all assistance that should
be extended must come from the neighbors/out that most of the neighbors are in the
of those who are in distress; and yet it is pointed
same situation as those suught to be relieved by legislation of the character now
pending.
There is practically no limitation on the appropriating power of the
Congress except that which is imposed by conscience and a sense of duty. The National
Gc vernment has the power to prevent farmers from starving or from being driven onto the
relief rolls by lending them money with which to plant and to make crops. There is not
the slightest likelihood that the Government will ever go back to the doctrine that the
Constitution of this country renders the U. S. powerless in time of great peril to aid
its citizens.
Of course the Congress must exercise its very great powers in good
conscience and in good faith, and of course there are dangers that grow out of the
employment of such powers in any other way than that suggested. No real danger lies
in using all the powers which exist, whether they be State, national, or individual,
in times when the lives and the property of millions. of people are imperiled (Applause)
Let us get the idea out of our minds that we are doing anything wrong
when we use the power we have to help people who are suffering. It is a doctrine which
can not be shielded behind the Constitution or under the flag of our country. The
Federal Government has the power, and has exercised that power, and it will continue
to do SO. I would hide my face in shame if I held that there is no power, save that
possessed by those who are helpless, to face the storm and perih. (applause) The
Congress must be the judge when the necessity for action exists. And when it acts,
no permanent harm will come to anything or anybody worth preserving and protecting.
Mr. Glass rose.
Mr. Bailey. Mr. President, I shall be very happy to yield to the senior Senator
from Va.; but I did desire to conclude.
Mr. Glass. I will not interrupt the Senator. I will speak in my own time.
Mr. Bailey. I shall be through in just a moment.
Mr. Robinson. Mr. President, I apologize to the Senator from N. C. for talking
so much of time, but, as I stated in the beginning of my remarks, I shall be compelled
to leave the Chamber soon.
EDWIN A. HALSEY
SECRETARY
United States Senate
PPF
473
Dear Mr. Roosevelt:
This is a copy of Senator
Robinson's remarks on the floor of the
Senate today, which you may wish to
show to your father.
E.A.H.
Fev
PPF
473
August 23, 1937.
My dear Mr. Robins:-
I am very grateful to you for
sending me that interesting correspondence with
my sincere friend, Joe Robinson.
It is part and parcel of a
vicious campaign of misrepresentation on the
part of certain newspapers and many other re-
actionaries to make it appear that Senator
Robinson was not wholeheartedly in favor of
judicial reform extending from the lawyers to
the courts -- up to and including the Supreme
Court itself. He well knew the forces ar-
raigned against us and he was wholeheartedly
with us.
I am glad, indeed, to have
copies of these letters. They confirm what
I had never doubted.
Very sincerely yours,
R. W. Robins, Esq.,
Conway,
Arkansas.
Letter given to T. G. C. for Speech Material
COPY
June 11, 1937.
PPF
CONFIDENTIAL
473
MEMORANDUM FOR
SENATOR (JOSEPH) ROBINSON
This amendment suggested by
Senator (Charles 0.) Andrews stating that
the Supreme Court shall be composed of a
Chief Justice at large and one Associate
Justice from each of the Circuit Courts
of Appeal is, of course, clearly unconstitutional,
as the Supreme Court is a constitutional office
and not a legislative office except as to numbers.
The same purpose can, of course, be arrived at by
the establishment of Presidential custom.
The suggested amendment on the yellow
sheet is lovely in theory and constitutional
but in practice it would not work fairly. For
example, in the Ninth Circuit there are seven
States and there are seven members of the Cir-
cuit Court of Appeals. But California has more
population and more business in the Circuit Court
of Appeals than all the other six States put together.
I only told Senator Andrews that I hoped
that he would talk with you.
F. D. R.
Ret. Son. Andrews emendment to Sec. 1 of S. B. 1392.
Also suggested addition to this emendment on yellow sheet.
SEE 41-A - for first carbon
P.P.F.
(Official Files)
473
P.P.F.
473
FOR THE PRESS
IMEDIATE RELEASE
July 15, 1937
The President today addressed the following letter to
Senator Alben W. Barkley of Kentucky:
"July 15, 1937.
"My dear Alben:-
"I am glad you called my attention to certain events
of yesterday and today. Lest there be any misunderstanding
in regard to judicial reform, please let me clarify the situa-
tion.
"Since the untimely death of our Majority Leader,
I had hoped with you that at least until his funeral services
had been held a decent respect for his memory would have
deferred discussion of political/legislative matters.
and
"It is, therefore, with regret that I find that ad-
vantage is being taken of what, in all decency, should be a
period of mourning.
"Because of this situation, however, I am compelled
in the public interest, though against every inclination, to
write to you. I do this because you are the Acting Majority
Leader in the Senate.
"Over four years ago it became apparent to the
American people and to the leadership of the new Administration
of the National Government and to the newly elected Congress
that grave problems of many kinds called for great reforms. The
American people, in an overwhelming majority, rocognized the
need for bank reform, for agricultural reform, for labor reform,
for housing reform and for judicial reform.
"I cite the above merely as examples. Other lesser
reforms went hand in hand with them as national needs. The
Congress and the Administration effected during the first four
years many of these reforms. The reform of the processes of
justice, the need for which was nothing new, was recommended by
me on February fifth of this year. The timo had come to act.
"In my Message to Congress I set forth objectives.
With these objectivos the overwhelming majority of the poople
of this country were in accord. With those objectivos the
overwhelming majority of the Congress were in accord.
- 2 -
"Proposed tentative legislation was drawn at that
time to facilitate discussion of methods in both Houses of the
Congress and discussion commenced immediately in the Congress
and throughout the country.
"Let me make clear once more the objectives. They
constituted improvements in the process of justice in all Federal
courts, from the lowest to the highest. Those improvements
included systematic addition of younger judges to all such courts
in which there were judges beyond retirement age who had not
taken advantage of retirement privileges -- for the dual purpose
of helping the older judges give a maximum of justice in a minimum
of time, and of keeping the social viewpoints of the courts abreast
of changing conditions. Those improvements also contemplated ade-
quate machinery for supervision by the Supreme Court of the ex-
peditious dispatch of business by the lower courts, and for getting
constitutional questions to the Supreme Court without delay.
"These were the objectives. At no time have I or
any member of my Administration insisted that the method or
methods originally proposed be sacred or final except to point
out that action was of immediate necessity and, therefore, that
the process of constitutional amendment was an impossibility if
the objective was to be attained within a reasonable time. It
is, of course, clear that any determined minority group in the
nation could, without great difficulty, block ratification by
one means or another in at least thirteen states for a long
period of time.
"Objectives can be obtained by constitutional legis-
lation and both the original bill and Senator Robinson's bill
were clearly constitutional.
"There was the other reason for action by legislation
rather than by constitutional amendment. The situation of the
civilized world has been, for several years, at a point of
extreme danger. This has been caused by three factors --
aggression and arnament, economic crisis and major social needs.
"The United States is happily free from any thought
of aggression or armament for aggression, but the people of the
United States have called for economic security and for major
social improvements. National safety demands them.
"About a month ago Senator Robinson advised me that
some new form or forms of method were called for if the ob-
jectives of judicial reform were to be attained. I told him
that in my judgment the bill he proposed would be a satisfactory
method of attaining such objectives. I told him further what I
-3-
had told to all others who have asked my opinion -- that on the
Congross of the United States falls the primary responsibility
for the adoption of methods but that on the Prosident falls the
responsibility of recommending objectives. This is in accordance
with the Constitution.
"To abandon any reform of the judicial processes at
this session of the Congress means an abandonment of the ob-
jectives.
"An abandonment of judicial reform, including, of
course, all the Federal Courts, because of the inability of a
majority of Senators or a majority of Representatives to agree
on method and reach a vote, places the rosponsibility squarely
on the Congress of the United States,
"May I, therefore, tell you very simply once more
that the objectives of the President, and, I believe of the
groat ma jority of our citizens, remain the same, and that I
believe that it is the duty of the Congress, and especially of
the members of the mr jority party in the Senate and the House
of Representatives, to pass legislation at this session to
carry out the objectives."
"Very sincerdy yours,
(s) "FRANKLIN D. ROOSEVELT'
"Honorable Alben W. Barkley,
"United States Senato,
"Washington, D, C."
JOE T. ROBINSON, CHAIRMAN
United States Senate
CONFERENCE OF THE MAJORITY
January 21, 1937
To the President
The White House
Washington, D. C.
Dear Mr. President:
The enclosed communication to me from
the E. Ingraham Company showing that in the industrial
narmall
center of Hartford County, Connecticut, the report of the
Manufacturers' Association indicates employment to be 109%
of January 1, 1929, and as to Bristol the employment appears
to be 118%. There exists there, of course, a lack of
skilled labor as appears to be the condition existing almost
everywhere else.
Your inaugural address sounded like the
words of old Andrew Jackson. It rang like a fire bell.
PP7200
Sincerely yours, Imangural leongrate "ye"
473
X 598
January 23, 1937.
Dear Joe:-
Many thanks for lettting me see
the enclosed. There is no question in my
mind that in practically every industrial
*264
center skilled labor and most semi-skilled
*
407
labor is employed as well as in 1929. The
problem comes with some of the semi-skilled
and several millions of the unskilled. I
incline to the thought that if in some way
we can accomplish, by legislation, a short-
ening of hours for the unskilled, a large
part of the unemployed will be taken off
y 805792 372
the relief rolls.
Next week I hope to talk with
you about this.
As ever yours,
Honorable Joe T. Robinson,
United States Senate,
Washington, D. C.
P.P.F.
m Mcdityne
shitt
7
FOR THE PRESS
IMMEDIATE RELEASE
July 14, 1937.
BY THE PRESIDENT
In the face of a dispensation so swift in its coming
and so tragic in the loss it brings to the Nation, we bow in sorrow.
A pillar of strength is gone. A soldier has fallen with face to
the battle.
I personally mourn the passing of a greatly beloved
friend whose fidelity through long years never wavered. Those who
knew Joseph Taylor Robinson best recognized in him the qualities of
true liberal thought. Mindful of the needs of the underprivileged
he was devoted always to improvement of the lot of the masses.
In his going Joe Robinson has left a record as high
in achievement as it was faithful in performance. He never temporized
with principle nor bargained where the public interest was the issue.
But, day by day, through long service in high office, he brought to
the National Councils the contribution of great learning and sound
wisdom - a leadership inspired by courage and guided by consummate
common sense and a devotion to duty given without selfish interest.
And so death found him at the last with hope unfaltering,
with vision undimmed, and with courage unafraid. Of him well may it
be said: He has fought a good fight; he has finished his course; he
has kept the faith.
pp7 473
fill
In the Senate of the United States
July 15, 1937.
Resolved, That invitations be extended to
the President of the United States and the
members of the Cabinet, the Chief Justice and
Associate Justices of the Supreme Court of the
United States, the Diplomatic Corps (through
the Secretary of State), the Chief of Staff of
the Army, the Chief of Naval Operations of
the Navy, the Major General Commandant
of the Marine Corps, and the Commandant
of the Coast Guard to attend the funeral of
the Honorable Joseph T. Robinson, late
a Senator from the State of Arkansas, in
the Senate Chamber, at 12:00 o'clock noon,
Friday, July 16, 1937.
Attest:
Secretary.
Order of Services at the Funeral
of
Joseph T. Robinson
Late a Senator of the United States from the
State of Arkansas
Order of Serbices at the Funeral
of
Joseph T. Robinson
Late a Senator of the United States from the State of Arkansas
The services will be held at 12.00 o'clock noon Friday, July the
Sixteenth, Nineteen Hundred and Thirty-seven.
The body of the late Senator JOSEPH T. ROBINSON will be placed
in the Senate Chamber prior to the services.
The President of the United States and his Cabinet, the Chief Justice
and Associate Justices of the Supreme Court, the Diplomatic Corps, the
Members of the House of Representatives, the Chief of Staff of the Army,
the Chief of Naval Operations of the Navy, the Major General Commandant
of the Marine Corps, and the Commandant of the Coast Guard have been
invited to attend the services in the Chamber, and will occupy the seats on
the floor of the Senate assigned them by the Sergeant-at-Arms.
The President and his Cabinet will meet in the President's Room.
The Supreme Court will meet in the office of the Secretary of the Senate.
The Diplomatic Corps, the Chief of Staff of the Army, the Chief of
Naval Operations of the Navy, the Major General Commandant of the
Marine Corps, and the Commandant of the Coast Guard will meet in the
Senate Reception Room.
The Vice President's Room will be reserved for the members of the
family of the late Senator and the officiating clergy, whence they will be
escorted to seats on the Senate floor.
Seats will be reserved for those entitled to them upon the floor, to
which they will be shown by the attachés of the Senate.
July 16, 1937
PP7
473
My dear Mr. Hossler:
The President has asked me to express
his sincere appreciation of your courtesy in sending
him the photograph. He is indeed grateful for your
X pp 79.00
kind thought of him.
X PP79-76
Very sincerely yours,
Anns Lessam
M. A. LeHand
PRIVATE SECRETARY
Leo G. Hessler, Esq.,
1141 Connecticut Avenue,
Washington, D. C.
1141 CONNECTICUT AVENUE WASHINGTON. D.C. TELEPHONE METROPOLITAN 1411
Hessler
Studio
PORTRAITS
July 14, 1937
President Franklin D. Roosevelt
Care of Mr. Marvin H. McIntyre
White House
Washington, D.C.
Dear Mr. President:
Would you kindly accept, with my compliments, this
portrait of Senator Robinson, which I believe is his
latest posed photograph, having been made only a short
time ago.
Knowing your deep devotion and personal regard for
this famous statesman, I felt you might like to have
this print.
Very truly yours,
HESSLER STUDIO
LGH/ GPS
STANDARD FORM No. 14A
APPROVED BY THE PRESIDENT
FROM
MARCH 10. 1926
The White House
Dictated to EWS by
Mashington
TELEGRAM
OFFICIAL BUSINESS-GOVERNMENT RATES
July 14, 1937.
XPPF-4471
U.S. GOVERNMENT PRINTING OFFICE 113669
Hon. Carl E. Bailey,
Governor of Arkansas,
473
Little Rock, Ark.
The whole nation joins with me in expressing to you
and the people of Arkansas our sympathy and sense of loss
in the passing of a great leader and public servant.
FRANKLIN D. ROOSEVELT.
XPP755
P. P. F.
473
July 16, 1937.
Dear Uncle Fred:-
Just a line to thank you for
your very nice telegram. Joe is a great
loss and his death is very sad, particularly
as he was really enjoying the fight having
got the Senate to agree to the executive
day. We shall all miss him.
Affectionately,
Honorable Frederic A. Delano, xpp7 72
Interior Building,
Washington, D. C.
MEMO FOR THE P. S.
Will you prepare a little
line to him?
F. D. R.
TELEGRAM
The White House
Mashington
7WU. RA. 36- 1:35 p.m.
Newburgh, N. Y., July 14, 1937
THE PRESIDENT.
I feel more than sorry that you have lost a staunch and
loyal friend; indeed, the Right Bower of your Administration.
This should make many others feel that more than ever they
owe you their loyalty.
Frederic A. Delano.
TELEGRAM
The White House
feb
pp 7
Mashington
473
2WU. RA. 14- 9:27 a.m.
Cambridge, Mass., July 14, 1937
THE PRESIDENT.
Feel for you very deeply in your loss of a devoted
and valiant aide.
Felix Frankfurter.
X PP7140
P. P. F.
March 17, 1938
473
My dear Mrs. Robinson:
It was good to get your telegram of March
tenth and Mrs. Roosevelt and I are delighted that
X400 ark.
as
you are 80 happy in your new post.
We send you our best wishes.
Very sincerely yours,
Mrs. Joseph T. Robinson, #
RB/mma
Acting Postmaster,
Little Rock,
Arkansas.
March 17, 1938
Ky dear Mrs. Robinson:
It mag good to get your telegram of March
tenth and Yrs. Roosevelt and I are delighted that
you are so happy in your new post.
Ee send you our best wishes.
Very sincerely yours,
RB/mma
Mrs. Joseph T. Robinson,
Acting Postmaster,
Little Rock,
Arkanses.
TELEGRAM
haca
The White House
nice are they
13wumc 42DL 504pm
Mashington
pl
SU Little Rock, Ark., March 10,1938.
THE PRESIDENT.
Notice has been received of my appointment as Acting Postmaster
for Little Rock. I am deeply grateful to you for this honor and
recognition. My best wishes to both you and Mrs.Roosevelt for
your continued good health and happiness. Sincerely.
Mrs.Joe T.Robinson.
p.p.m
THE WHITE HOUSE
WASHINGTON
toyn
4/22/38
and
sent
4-27-38
MEMORANDUM FOR MISS LeHAND:
ofce
Mrs. Joseph T. Robinson saw the Pres-
ident this morning and requested a photograph,
autographed to her, to be used in her office.
She is postmistress in Little Rock, Arkansas.
Will you please have this done?
J
H
March 29, 1938
P.P.F.
My George C. Bailey, X
Chairman Joe T. Robinson
Memorial,
473
Lonoke, Arkansas.
Dear Mr. Bailey:
I have your letter of March 15. 1938. with reference
to & memorial to the late Senator Joseph T. Robinson. pro-
posed to be eracted at Lonoke, Arkansas.
Senator Robinson was for many years my personal friend,
loyal and steadfast, just as he was your friend and the
friend of the State and nation he served so long and 60
well, and I am glad to know of the purpose of your Committee
to perpetuate his memory in some way that will be most
fitting and appropriate and will best express the affection
of his fellow countrymen everywhere.
You ask ne to advise you whether the expense of this
memorial could be handled through a bill providing for
Federal aid. If Congress in its wisdom should see fit to
authorize such expenditure of Federal funds, there would be
no question of its legality. The propriety, however, of
such a procedure, in view of the precedent that it would
thereby establish, might in the opinion of Congress be
subject to serious question.
Knowing Joe Robinson R.S I did, the quality of his
statesmanship and the unselfishness of his service, I very
much doubt, could he speak his thought today, if he would
desire that an appropriation of Federal funds should be
made for such a purpose.
Sincerely yours,
HLF/mlr 3/25/38.
with
THE WHITE HOUSE
WASHINGTON
March 21, 1938.
MEMORANDUM FOR
THE ACTING DIRECTOR OF THE BUDGET
BUREAU OF THE BUDGET
FOR PREPARATION OF REPLY
MEMO. FOR THE PRESIDENT:
FOR MY SIGNATURE.
Herewith is draft of reply for your sig-
nature, as requested in your memorandum of
F. D. R.
March 21.
DWB
Acting Director.
MAR 28 1938
Letter from Geo. 0. Bailey, Chairman,
Joe T. Robinson Memorial, Lonoke, Ark., 3/15/38
to the President. Refers to plan for the
construction of a Joe T. Robinson Memorial
in his home town of Lonoke. The architectural
drawings of the Memorial Building will be
the Joe T. Robinson Historical Room and 2
Library and Tower. This structure is to be of
stone and the cost is estimated at $250,000.
Would like to know whether the expense of this
Building can be handled through some bill
calling for Federal Aid.
GEO. C. BAILEY
GLYNN C. BAILEY
H. W. BAILEY
L. H BAILEY
PRESIDENT
VICE-PRESIDENT
SECRETARY
TREASURER
Bailey Hardwood Lumber Co.
WAGON & FURNITURE STOCK, CAR
OAK, HICKORY, GUM, ASH & ELM-
MATERIALS, HEAVY OAK TIMBERS,
CLEAR DIMENSION STOCK
SWITCH TIES, SAWDUST
LONOKE, ARK.
March 15, 1938
Hon. Franklin D. Rocsevelt
President of the United States
Washington, D. C.
My dear President:
A committee has been appointed for the purpose of
building a Joe T. Robinson Memorial here in his
home town of Lonoke. As Chairman of this committee
I have recently taken up this matter with our two
Arkansas Senators, Senator Caraway and Senator Miller.
The architectural drawings of the Memorial Building
will be the Joe T. Robinson Historical Room and a
Library and Tower. This structure is to be of stone
and the cost is estimated at $250,000.00.
Knowing Senator Robinson was very near to you, we
would deeply appreciate having your advise as to
whether the expense of this Building can be handled
through some bill calling for Federal Aid.
It is a great pleasure indeed to be a member of this
Committee and we are very anxious to see a Memorial
constructed here in honor of our beloved friend, the
late Senator Joseph T. Robinson.
Thanking you for your kind consideration in this matter,
I am
Sincerely yours,
Geo.
Joe/T. Robinson Memorial
GCB:sdh
JOE T. ROBINSON, CHAIRMAN
United States Senate
CONFERENCE OF THE MAJORITY
July 2nd, 1937
fie P.P.
473
Dear Mr. President:
* +19 41+ mie
I am sending by special messenger
a copy of the draft of the substitute court reorganization
bill as agreed upon. It will be submitted to the Senate
today immediately on convening and will be printed.
I hope to take the bill up Tuesday or
Wednesday.
Sincerely yours,
J.R.Anson.
To the President
The White House
Washington, D. C.
Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled,
TITLE I
SEC. 1. Section 215 of the Judicial Code of the United States is
hereby repealed and reenacted to read as follows:
"SEC. 215. The Supreme Court of the United States shall
consist of a Chief Justice and eight associate justices,
any six of whom shall constitute aquorum; provided, how-
ever, the number of justices may be temporarily increased
by the appointment of an additional justice in the manner
now provided for the appointment of justices, for each
justice, including the Chief Justice, who at the time of
the nomination has reached the age of seventy-five years,
but not more than one appointment of an additional justice
as herein authorized shall be made in any calendar year,
provided that the authority to appoint for any calendar year
shall not lapse by reason of the rejection of the nomination,
delay in confirmation, inability to nominate during an
adjournment of the Senate or withdrawal of the nomination
in & succeeding calendar year; and when such additional justice,
or justices, shall have been so appointed no vacancy
caused by the death, resignation or retirement of a
justice (except the Chief Justice) who has reached
-2-
the age of seventy-five years, shall be filled,
unless the filling of such vacancy is necessary to
maintain at not less than nine the number of justices
who have not reached the age of seventy-five. The
number of Supporery appointments SO made shall not, at
any time, increase the total number of justices by
more than two-thirds of the permenent membership of
the Court. If the number of members of the Supreme
Court is in excess of nine not less than two-thirds
of the membership shall constitute a quorum. As used
in this section, the term 'justice' shall not include
a justice who has retired from regular, active service."
SEC. 2. (a) An additional judge of any court of the United
States other than the Supreme Court may be appointed, in the
manner now provided by law, and to the same court, for each
judge, appointed to hold his office during good behavior, who
at the time of nomination of the additional judge has reached
the age of seventy years.
(b) The number of judges of any such court shall be
increased by the number appointed thereto under
the provisions of by subsection (a) of this section but no vacancy
shall be created an the death, resignation or retirement of a
judge of such court (other than a chief justice) whose continuance
in office has occasioned the appointment of an additional judge.
*
-3-
No appointment shall be made under subsection (a) which at
any one time would result in (1) more than twenty judges in
regular active service, in addition to those otherwise authorised
by law, or (2) an addition of more than two judges to the number
otherwise authorised by law to be appointed to any circuit court
of appeals, the Court of Claims, the United States Court of
Customs and Patent Appeals, or the United States Customs Court,
or (3) more than twice the number of judges otherwise authorized
by law to be appointed for any district or, in the case of judges
appointed for more than one district, for any such group of
districts.
(c) Three-fifths of the judges of each of the following
courts shall constitute & quorum thereof: the United States
Court of Appeals for the District of Columbia, the Court of
Claims and the United States Court of Customs and Patent Appeals.
(d) An additional judge shall not be appointed under the
provisions of this section when the judge who has reached the
age of seventy years is commissioned to an office as to
which Congress has provided that a vacancy shall not be filled.
$EC. 3. (a) Any Circuit Judge may be designated and assigned
from time to time by the Chief Justice of the United States
for general service in the circuit court of appeals for any
circuit. Any district judge may be designated and assigned
-4-
from time to time by the Chief Justice of the United States
for general service in any district court, or, subject to
the authority of the Chief Justice, by the senior circuit
judge of his circuit for general service in any district
court within the circuit. A district judge designated and
assigned to another district hereunder may hold court
separately and at the same time as the district judge in
such district. All designations and assignments made here-
under shall be filed in the office of the clerk and entered
on the minutes of both the court from and to which a judge
is designated and assigned, and thereafter the judge so
designated and assigned shall be authorized to discharge
all the judicial duties (except the power of appointment to
a statutory position or of permanent designation of a
newspaper or depository of funds) of at judge of the court
to which he is designated and assigned. The designation
and assignment of & judge shall not impair his authority to
perform such judicial duties of the court to which he was
commissioned as may be necessary or appropriate. The
designation and assignment of any judge may be terminated
at any time by order of the Chief Justice or the senior
circuit judge, as the case may be.
-5-
(b) After the designation and assignment of a judge
by the Chief Justice, the senior circuit judge of the
circuit in which such judge is commissioned may certify
to the Chief Justice any consideration which such senior
circuit judge believes to make advisable that the desig-
nated judge remain in or return for service in the court
to which he was commissioned. If the Chief Justice deems
the reasons sufficient heshall revoke, or designate the time
of termination of, such designation and assignment.
(c) In case a trial or hearing has been entered upon
but has not been concluded before the expiration of the
period of service of a district judge designated and
assigned hereunder, the period of service shall, unless
terminated under the provisions of subsection (a) of this
section, be deemed to be extended until the trial or hear-
ing has been concluded. Any designated and assigned district
judge who has held court in another district than his own
shall have power, notwithstanding his absence from such
district and the expiration of any time limit in his designa-
tion, to decide all matters which have been submitted to him
within such district, to decide motions for new trials, settle
-6-
bills of exceptions, certify or authenticate narratives of
testimony, or perform any other act required by law or the
rules to be performed in order to prepare any case so tried
by him for review in an appellate court; and his action thereon
in writing filed with the clerk of the court where the trial
or hearing was had shall be as valid as if such action had
been taken by him within that district and within the period
of his designation. Any designated and assigned circuit
judge who has sat on another court than his own shall have
power, notwithstanding the expiration of any time limit in
his designation, to participate in the decision of all matters
submitted to the court while he was sitting and to perform
or participate in any act appropriate to the disposition or review
of matters submitted while he was sitting on such court, and his
action thereon shall be as valid as if it had been taken while
sitting on such court and within the period of his designation.
have
(d) When any (c) Judge The Expense. is assigned Count to duty outside of
his District Proctor, or Circuit It his be subsistence Anty (1) allowance shall be
by
to
information
ten dollars per diem.
and states or litigation in the district courts and circuit courts of
appeals, and such other information as the Supreme Court may from time
to time require by order, and it shall be the duty of any judge, clerk,
or marshal of any court of the United States promptly to furnish such
information as may be required by the Proctor; (2) to investigate the
need of assigning district and circuit judges to other courts and to
- 8 ?
make recommendations thereon to the Chief Justice; (3) to recommend,
with the approval of the Chief Justice, to any court of the United
States methods for expediting cases pending on its dockets; and (4)
to perform such other duties consistent with his office as the Court
shall direct.
(b) The Proctor shall, by requisition upon the Public Printer,
have any necessary printing and binding done at the Government Print-
ing Office and authority is conferred upon the Public Printer to do such
printing and binding.
(c) The salary of the Proctor shall be $10,000 per annum, payable
out of the Treasury in monthly installments, which shall be in full
compensation for the services required by law. He shall also be al-
lowed, in the discretion of the Chief Justice, stationary, supplies,
travel expenses, equipment, necessary professional and clerical as-
sistance, and miscellaneous expenses appropriate for performing the
duties imposed by this section. The expenses in connection with the
maintenance of his office shall be paid from the appropriation of the
Supreme Court of the United States.
SEC. 5. There is hereby authorized to be appropriated such sums
as are necessary to carry out the provisions of this Act.
- 8 -
SEC. 6. When used in this Act--
(a) The term "circuit court of appeals" includes the United
States Court of Appeals for the District of Columbia; the term "senior
circuit judge" includes the chief justice of the United States Court of
Appeals for the District of Columbia; and the term "circuit" includes
the District of Columbia.
(b) The term "district court" includes the District Court of the
District of Columbia but does not include the district court in any
Territory or insular possession.
(c) The term "judge" includes Justice and the term "chief justice"
shall include the presiding judge of the United States Court of Customs
and Patent Appeals.
TITLE II
SEC. 101. Whenever in any court of the United States in
any suit or proceeding to which the United States or any agency
thereof or any officer or employee thereof, as such officer or
employee, is not a party, the constitutionality of any statute of
the United States is drawn in question, the court having juris-
diction of the suit or proceeding shall certify such fact to the
Attorney General if the court is of opinion that & substantial ground
exists for questioning the constitutionality of the statute.
The court shall afford the United States an opportunity for presen-
tation of evidence (if evidence is otherwise receivable in such suit
or proceeding) and argument. In the suit or proceeding the United
States shall, subject to the applicable provisions of law, have the
same rights as a party to the extent necessary for & proper presen-
tation of the facts and law relatingtothe constitutionality of the
statute and shall have the right to become a party to such proceeding,
case or controversy.
SEC. 102. Whenever any judgment, 101 decree, or order in any suit or
proceeding referred to in Section A is based in whole or in part
upon a decision that any statute of the United States is unconstitutional
as therein applied, the United States, irrespective of whether
or not it had previously presented evidence or argument under
101
the provisions of Section A shall have the same right to appeal
therefrom as any party to the suit or proceeding. Within sixty
- 2 -
days after the entry of any such judgment, decree, or order, whether
final or interlocutory, the United States may also appeal therefrom
directly to the Supreme Court, in which event any appeal or cross-
appeal therefrom by any party to the suit or proceeding taken pre-
viously or taken within sixty days after notice of the appeal by
the United States shall also be or be treated as taken directly to
the Supreme Court. Such appeals to the Supreme Court shall, on
motion of the United States, be advanced to 8. speedy hearing. This
section shall not confer upon the United States any right of review
by the Supreme Court unless a party to the suit or proceeding also
takes an appeal.
103
SEC. 1. Within sixty days after the entry of any judgment,
102
decree, or order referred to in Section A. the United States, irres-
pective of whether or not it had previously presented avidence or
101
argument under the provisions of Section A' say appeal therefrom
directly to the Supreme Court. Such appeals will lie if no appeal is
taken by any party to the suit or proceeding and such appeals shall,
on motion of the United States, be advanced to a speedy hearing.
If the United States appeals to the Supreme Court under the pro-
102
visions of Section t. but no appeal is taken by any party to the
suit or proceeding, the appeal of the United States shall be re-
garded as an appeal under this section. If this section, or any
provision thereof, is held invalid, the remainder of this Act and
the other provisions of this section shall not be affected thereby.
- 3 -
104
SEC. 1. In any sult or proceeding in any court of the United
States to which the United States or any agency thereof or any officer
or employee thereof, as such officer or employee, is a party, in which
the decision in against the constitutionality of any statute of the
United States, the United States, within sixty days after the entry of
& final or interlocutory judgment, decree, or order, may, in its dls-
cretion, in its own name or in the name of such agency, officer, or
employee, as the case may be, appeal therefrom directly to the Supreme
Court, in which event any appeal or cross-appeal by any party to the
suit or proceeding taken previously or taken within sixty days after
notice of the appeal by the United States shall also be or be treated
as taken directly to the Supreme Court. Such appeals shall, on motion
of the United States, be advanced to a speedy hearing. This section
shall not apply to any judgment, decree, or order of et district court
of the United States which may, under existing provisions of law,
be appealed directly to the Supreme Court.
105
SEC. $. The Attorney General is authorised by himself or by
counsel designated by him, to appear and argue in cases described in
101
Section A and to invoke appellate jurisdiction in CARDS described
102,103,104 102, 103, 10H
in Sections 106 ~ / and A.
Title
SEC. 1. As used in this tot, the term "court of the United
States" means the courts of record of Alaska, Hawaii, and Puerto
Rico, the Customs Court, the Court of Customs and Patent Appeals, the
Court of Claims, the District Court of the United States for the
District of Columbia, any district court of the United States, the
United States Court of Appeals for the District of Columbia, any
- 4 -
any circuit court of appeals, and the Supreme title Court.
SEC. 107 T. If any provision of this Ass, or the application
thereof to any person or circumstances is held invalid, the remainder
of the Act and the application of such provisions to other persons or
circumstances shall not be affected thereby.
TELEGRAM
file [7-2-37]
The White House
FDRL (RLJ)
WX 7-2-35
Mashington
Memo. for M.H.M.
PK
Senator Robinson this noon introduced a substitute court
bill. Possibly the President will be interested in the provision
of the bill which refers to the Supreme Court. This provision
reads as follows:
"Sec. 1. Section 215 of the Judicial Code of the United
States is hereby repealed and reenacted to read as follows:
'Sec. 215. The Supreme Court of the United States
shall consist of a Chief Justice and eight associate
justices, any six of whom shall constitute a quorum;
provided, however, the number of justices may be
increased by the appointment of an additional justice
in the manner now provided for the appointment of justices,
for each justice, including the Chief Justice, who at
the time of the nomination has reached the age of
seventy five years, but not more than one appointment
of an additional justice as herein authorized shall be
made in any calendar year, provided that the authority
to appoint for any calendar year shall not lapse by
reason of the rejection of the nomination, delay in
confirmation, inability to nominate during an adjourn-
ment of the Senate or withdrawal of the nomination in
a succeeding calendar year: And when such additional
justice, or justices, shall have been SO appointed no
vacancy caused by the death, resignation or retirement
of a justice (except the Chief Justice) who has reached
the age of seventy five years, shall be filled, unless
the filling of such vacancy is necessary to maintain at
not less than nine the number of justices who have not
reached the age of seventy five. The number of appoint-
ments so made shall not, at any time, increase the
total number of justices by more than two-thirds of
the permanent membership of the court. If the number of
members of the Supreme Court is in excess of nine not
less than two-thirds of the membership shall constitute
a quorum. As used in this Section, the term 'justice'
shall not include a justice who has retired from regular,
active service. "
Early.
P.P.F.
July 6, 1937
473
x598
MEMORANDUM FOR SENATOR ROBINSON
Dear Joe:
That was a magnificent speech of yours
today on the Court Bill.
I enclose for your eyes only, a letter
to me from Harry Hopkins with a memorandum
attached. Would you be good enough to read
it and speak with me about it at your convenience?
Incidentally, this involves, to a certain extent,
the problem of the unemployment census and I
want to talk with you about that also.
3-B mig
F. D. R.
fdr/tmb
Let. from HARRY HOPKINS, 7/1/37, with memo. re unemployment.
264
444-6
0.873
Hyde Park, New York
August 31, 1940
My dear Mrs. Robinson:
Please accept my heartfelt thanks for your
very gracious letter of August fifteenth. For all that
you say - and in such generous terms -- concerning my
leadership, I as indeed appreciative. I an likewise
grateful to you for all of your personal good wishes
to Mrs. Roosevelt and to me. Be assured that we heartily
reciprocate.
*208-a
1 also desire to acknowledge receipt of your
X309-#
letter advising ae of the character and qualifications
of Honorable Heartsill Ragon, United States District
Judge for the Western District of Arkansas, for appoint-
ment to the bench of the Circuit Court of Appeals for
+
the Eighth Judicial Circuit. I want you to know that
your recommendation of Judge Ragon for this responsible
position will be given very careful consideration when
the time for making an appointment is imminent.
Very sincerely yours,
#
Mrs. Joseph T. Robinson,
Little Rock,
Arkansas.
won ...W
STELL to
Sept
&
osen
Dear mr. President:
THE WHITE HOUSE
AUG 19 8 57 AM '40
RECEIVED
your acceptance of ihe
many friends who wish see
nonination has pleaked your
one country carry on she Groad
and humane Johncies you have
so definitely establis since
you came inli office.
I know that in your 000ml
heart you nonld hadr preferred
to retrie to privale life after
While- Conse
eight shrenwons and shat in the
acceplance of she mas
promp ted Solely from a high
perise of duty to your combry.
an experienced leader and no
now as nevn bufore, me need
one knows she needs of om
country fatter Than you
my but misher attend you
in I all your we dertaking and
and may Lappiness and euccest
have con tissued good
pray for you That you atth
be your remard.
bust mishes to you and Jone.
Hith cordial greeting and
Ronsevelt, I am
Suncerely
E milda
august 151940
August 30, 1940
Respectfully referred to the
Department of Justice.
STEPHEN EARLY
Secretary to the President
Let. to Pres., 8/15/40 from
Mrs. Joseph T. Robinson,
Little Rock,
Arkansas.
Recommends Hon. Heartsill Ragon, U. S. District Judge for the
Western District of Ark., to be considered for appointment to the
Circuit Court of Appeals for the Eighth District.
Letter re alone ant to Instice - attached letter
from mrs. Robineon retained in file
P.P.F.
November 18, 1940
473
My dear Mrs. Robinson:
I deeply appreciate that nice mes-
sage from you and Mr. and Mrs. Grady Miller.
Mrs. Roosevelt joins me in hearty thanks for
the good wishes you extend to us.
Very sincerely yours,
FRANKLIN D. ROOSEVELT
Mrs. Joseph T. Robinson, #
Little Rock,
Arkansas.
mb
WESTERN
1201
SYMBOLS
CLASS OF SERVICE
DL=Day Letter
This is a full-rate
Telegram or Cable-
NT=Overnight Telegram
gram unless its de-
dicated by a suitable
UNION
LC=Deferred Cable
ferred character is in-
NLT=Cable Night Letter
symbol above or pre-
ceding the address.
R. B. WHITE
NEWCOMB CARLTON
J.C. WILLEVER
Ship Radiogram
PRESIDENT
CHAIRMAN OF THE BOARD
FIRST VICE-PRESIDENT
The filing time shown in the date line on telegrams and day letters is STANDARD TIME at point of origin. Time of receipt is STANDARD TIME at point of destination
CGN AA376 35 SC 5 EXTRA=LITTLEROCK ARK
HON FRANKLIN D ROOSEVELT=
WHITE HOUSE WASHDC=
11-18 11-18-40 HB
WE REJOICE IN YOUR GREAT VICTORY AND THAT OF THE AMERICAN
PEOPLE. OUR AFFECTIONATE REGARDS TO YOU AND MRS ROSSEVELT
AND BEST WISHES FOR YOUR CONTINUED GOOD HEALTH AND HAPPINESS=
MRS JOE T ROBINSON
MR AND MRS GRADY MILLER.
my Dear mrs. Robinson
no
THE COMPANY WILL APPRECIATE SUGGESTIONS FROM ITS PATRONS CONCERNING ITS SERVICE
pr.7 473
THE WHITE HOUSE
WASHINGTON
February 4, 1941
MEMORANDUM FOR THE PRESIDENT:
Mrs. Joseph Robinson called
me from Little Rock Saturday afternoon.
She is very anxious that her brother
Grady be given the Senate appointment
to finish out the term. She says
that Governor Miller? is in Washington
and she knows that a suggestion from
you to him would be well received.
She asks me if I would let her know
what you thought.
M. A. L.
her branker 7 ?.
THE WHITE HOUSE
X
WASHINGTON
February 7, 1941
MEMORANDUM FOR THE PRESIDENT:
Mrs. Robinson wanted you
to give him this suggestion.
M.A.L.
PS
Governor hiller is going
to give me a suggestion
but he has not as yet-
ROBINSON, Hon. Joe T.
Little Rock, Ark.
11-20-33
The President on the above date wrote to Mr. Robinson stating that he has
asked Mr. Farley to take up the matter of Superintendent of Insurance for the District
with the two new commissioners.
SEE 51-N
PP.4
473
Robinson, Hon. Joseph T.,
U. S. Senate,
Washington, D. C.
March 13, 1934, Ack'd.
Sends the President a bass.
SEE P.P.F. 9-R
#
4x
ROBINSON, Hon. Joseph T. (Sen. - Ark.)
April 18, 1934
President writes he's sorry about Mr. Robinson's mother-in-law, and sends sympathy.
- Will take up the matter of Jeffery with Cordell Hull - Letter from Sen. Robinson,
April 12, suggesting appointment of R.E. Jeffery, Newport, Ark., as Minister of Uruguay.
SEE -487-B
COPY
December 14, 1934.
My dear Senator:
473
Before receiving your letter of Decem-
H
ber eleventh, I had determined that it would be
advisable to keep General MacArthur as Chief of
Staff in order that his services and experience
might be utilized in connection with legislation
and bugetary matters engaging the attention of
the forthcoming session of Congress.
I want to assure you, however, that I
will be glad to keep in mind your recommendation
of Major General D. C. Nolan.
With kindest personal regards,
Very sincerely yours,
Honorable Joe T. Robinson,
413 Post Office Building,
Little Rock,
Arkansas.
mwd
SEE - 25-T (for first copy)
ROBINSON, MR. & MRS. JOSEPH T.,
Little Rock, Ark.
December 24, 1934.
Extends holiday greetings.
See P.P.F.1000-R
P.P7:
4 M3
ROBINSON, HON. JOSEPH T.,
U.S. Senate, Wash., D.C.
Senator Robinson enclosed a letter from Dr. W.T. Lowe, addressed
to himself, Mrs. Caraway, Congressman W.J. Driver, Tillman B. Parks, John L.
McLellan, Claude A. Fuller, J.E. Miller& D.T. Terry in re Public Utility
Concerns in the U.S. and copy of his reply to Dr. Lowe.
See 293
P.P.7.
473
HON. JOSEPH T. ROBINSON,
U.S. Senate, Wash., D.C.
Jan. 15, 1935. (Ackn.)
On the above date the President acknowledged and thanked Hon. Joe T.
Robinson for the ducks which he sent him.
See P.P.F.9-R
PP7.
473
COPY
January 30, 1935.
Lid
Dear Joe:-
Many thanks for your message of birthday
greetings.
I want you to know how much I appreciate
the splendid fight you have made. Will you be good
enough also to convey my personal gratitude to your
fifty-one colleagues who also voted for adherence
by the United States to the World Court? All of you
have kept faith with the Republican and Democratic
Party Platforms. More than that; you have done a
service for the cause of peace and in doing this
you have shown personal and political courage.
As to the thirty-six Senators who placed
themselves on record against the principle of a
World Court, I am inclined to think that if they
ever get to Heaven they will be doing a great deal
of apologizing for a very long time -- that is if
God is against war and I think He is.
Affectionately and sincerely,
Hon. Joseph T. Robinson,
United States Senate,
Washington, D.C.
SEE - P.P.F. 473 (for first carbon)
ROBINSON, HON. JOSEPH T.,
U.S. Senate,
Wash., D.C.
Feb. 8, 1935. (Ackn.)
On the above date the President p rsonally acknowled ed
receipt of the quail sent to him by Senator Robinson.
See P.P.F.9-R
P P.7
473
FLETCHER, Rep. Duncan U.
Chairman, Banking and Currency Committee.
May 14, 1935
The President wrote him a private long hand letter on the subject of
the Banking Bill and requested him to talk with Sen. Joseph T. Robinson
or Sen. James F. Byrnes in reference to the matter.
See P.P.F. 1358
To"
473
MARKHAM, Gen. Edward M.
August 8, 1935.
President referred, by memo., for preparation of reply, for his signature,
a. telegram from Sen. Joseph T. Robinson, of Aug. 7, re the importance to citizens
of Clarendon, Arkansas to have approved the allotment by NEC for $292,000 to strengthen
the levee there. President wrote Sen. Robinson, on Aug. 14, saying that the appli-
cation of the War Department for the inclusion of this project in the relief program
had been approved by the WPA. Said it was also approved informally by the Advisory
Committee on Allotments at its meeting on Aug. 6 and was to come before the Committe
for formal approval at its next meeting on Aug. 13. President assured him that mat-
ter would receive prompt consideration.
P.P.F.
SEE 132
473
INTERIOR, SECRETARY of
September 19, 1935.
We referred for preparation of reply a telegram from Sen. Joseph
T. Robinson stating proposed public works project pertaining to Little Rock
Water Supply System is of very great importance. Asks that same be acted on
soon.-President, on Oct. 2, wrote the Senator that the PWA advised him that
an official notification of the approval of this project would be forthcoming
in the near future.
P.P.F.
SEE 466-B-Miscel.
473
ROBINSON, Sen. Joseph T.
September 27, 1935.
Wires President urging favorable consideration of application
of Greenwood, Arkansas water works project.-President, on Sept. 28, wired
the Senator that this project had been approved.
P.P.F.
SEE 466-B-Miscel.
473
ROBINSON, Sen. Joe T.
Oct. 23, 1935
Wires President from S, S. PRESIDENT GRANT, via San Francisco, re Little Rock water
project, suggesting original project be carried out, and believes it unnecessary and
impractical to require city to duplicate existing distribution system. -- The Fres-
ident wrote Sen. Robinson Nov. 8 that he has asked the officials of the Public Works
Administration to investigate question raised by Sen. Robinson concerning Little Rock
Water Project. Says original application from City of Little Rock showed that the
City had entered into contract with Arkansaw Water Company for sale of water under
certain conditions. Explains suggestion that application calling for construction or
acquisition of a distribution system as well as for construction of reservoir be sub-
mitted.
P.P.7.
SE% - 466-B Miscel.
473
COPY
February 27, 1936.
Dear Ed:
I have shown the President the extension of
remarks by Senator (Joseph) Robinson. He was delighted.
You will notice on your memorandum to me that the President,
in his own handwriting, has offered a substitute for the
caption you suggested. He likes, "Coming Back - Proof
of it".
With kindest regards,
Very sincerely yours,
STEPHEN EARLY
Assistant Secretary to the
President.
Colonel Edwin Halsey,
Secretary, United States Senate,
Washington, D. C.
Enclosure: Note from Halsey to Mr. Early, calling attention to en-
closed extension of remarks by Senator Robinson, re substantial better-
ment brought about by Administration - and suggesting that it be cir-
culated generally in pamphlet form under captain "Prosperity Regained".
The President suggests "Coming Back - Proof of 1t".
P.P.F.
SEE 180-for first carbon.
473
COPY
April 20, 1936.
PERSONAL
MEMORANDUM FOR
THE SPEAKER
SENATOR JOSEPH T. ROBINSON
Can you get the National
Resources Board bill out and put it
through? I think it is very important,
in order to stop wild raids for Public
Works at the next session.
F. D. R.
SEE 1092-for first carbon.
P.P.F.
473
COPY
April 20, 1936.
copy
MEMORANDUM FOR
THE POSTMASTER GENERAL.
I understand Senator Robinson is about to
introduce a bill providing for a more extended
sale of postal saving stamps and certificates to
children.
I realize that this may mean more bookkeep-
ing because of the smaller amounts that would be
accepted and also because the age limit of chil-
dren permitted to make purchases would be reduced.
Nevertheless, I think it is a good plan and would
encourage savings, and I hope that both the Post
Office Department and the Treasury Department will
approve.
F. D. R.
Copy to:
The Secretary of the Treasury
Senator (Joseph T.) Robinson.
(copies of above memo. sent as indicated; also copy
sent to Mrs. Roosevelt, with which was returned let.
to her from Sen. Jos. T. ROBINSON, 4/15/36 to her re
the matter, trans. let. from Mrs. Malcolm Gannaway,
2112 Izard St., Little Rock, Ark. urging same.
P.P.F.
SEE 19-D-for first copy.
(Official)
473
COPY
April 30, 1936.
MEMORANDUM FOR
SENATOR (JOSEPH) ROBINSON
I think this will interest
you.
F. D. R.
Let. from Secy. Morgenthau, 4/28/36; has noted
Pres.'s memo. of 4/20 to PMG re S. 4494 (A Bill
to provide for the sale of postal-savings stamps
and certificates to children in school and for
other purposes.) endorses principles in this bill.
SEE 19-D-for first carbon
(Official)
P.P.F.
473
ROBINSON, Senator Joseph
May 5. 1936.
President, by memo., referred to him a letter from the Postmaster General
dated May 2, advising the Post Office Department feels there is considerable merit
in movement for more extended sale of postal savings stamps and certificates to
children. The Postmaster General endoreses the bill of Senator Robinson. President
made certain comments to Senator Robinson re this Bill.
P.P. F.
SEE 19-D (Official)
473
ROBINSON, Hon. Joseph T.
United States Senate
May 1, 1936
The President sent memo to Senator Robinson enumerating some of his objections to
the Copeland Flood Control Bill, and stating that Section 3, setting forth condi-
tions of cost of flood control projects, does not conform to regulations of the
Mississippi Valley Commission or National Resources Board. Makes recommendations
concerning Joint Resolution to replace this Bill.
SEE - 132
P.P.F.
473
The President wrote to the following named Senators on
November 21, 1936, telling them how happy he is in their election
(or reelection) to the Senate, and stating, "Iam looking forward
to our association in Washington and I shall hope to see you soon. II
Johnson, Ed. C.
Colorado P.F.
Bankhead, John H.
Alabama
Robinson, Joseph T.
Arkansas
Hughes, James H.
Delaware
473
Pepper, Claude
Florida
Andrews, Charles O.
Florida
Russell, Richard B., Jr,
Georgia
Lewis, J. Hamilton
Illinois
Harring, Clyde L.
Iowa
Gillette, Guy M.
Iowa.
Logan, M. M.
Kentucky
Ellender, Allen
Louisiana
Brown, Prentiss M.
Michigan
Harrison, Pat
Mississippi
Lundeen, Ernest
Minnesota
Murray, James E.
Montana
Smathers,
V. H.
New Jersey
Hatch,
Carl A.
New Mexico
Chavez, Dennis
New Mexico
Bailey, Josiah W.
North Carolina
Lee, Josh
Oklahoma
Green, Theodore F.
Rhode Island
Byrnes, James F.
South Carolina
Bulow, William J.
South Dakota
Bachman, Nathan L.
Tennessee
Sheppard, Morris
Texas
Glass, Carter
Virginia
Neely, M. M.
West Virginia
Schwartz, W. H.
Wyoming
It is indicated that these letters were signed by the President at
Port of Spain, Trinidad, Nov. 21, and were transmitted to Mr. Forster
by memo of that date.
SEE - PPF 869
February 9, 1937
P.P.F. 473
My dear Joe:
Thank you very much for your letter of
February second in the interest of the Honorable
Tilman B. Parks, whom you endorse for appointment
to the vacancy now existing on the United States
Employees Compensation Commission. I do want you
to know that your statements in Mr. Parks' behalf
will have my earnest consideration.
Very sincerely yours,
Honorable Joe T. Robinson,
United States Senate,
Washington, D. C.
RB/mwd
See 81-a-Preha
ROBINSON, Hon. Joe T.
United States Senate
February 15, 1937
Transmitting to the President Resolution adopted by the Arkansas State Legislature
expressing appreciation of the State of Arkansas for the President's visit there
June 10, 1936. -- The President replied February 20 that he was much touched by
this resolution, and asks that he express his appreciation to the members of the
Legislature.
P.P.F.F.
SEE - PPF 3264
473
ROBINSON, Senater Joseph
Feb. 16, 1937.
President sent him a confidential memorandum transmitting
a memorandum addressed to Mrs. Roosevelt from Food and Drug Administra-
tion, dated Feb. 13th, from C. W. Crawford, Acting Chief, in which Mr.
Crawford encloses a memorandum on S. 5, the Copeland Bill to revise the
Federal Food and Drugs Act, which Mr. Crawford understands is to be re-
ported to the Senate on Monday by the Committee on Commerce. The Pres-
ident expressed his views re the Copeland Bill.
SEE 375 (Official File)
P.P.
473 4 73
AGRICULTURE, The Secretary of
February 26, 1937
The President, by memo, referred to him for his confidential information, letter
(copy) from Senator Joe T. Robinson, dated February 19, 1937, regarding Senate Bill
No. 5, introduced by Senator Royal S. Copeland, "To prevent the adulteration, mis-
branding, and false advertisement of food, drugs, devices, and commetics, "etc.,
certain features of which bill were assailed by C. W. Crawford, Acting Chief of the
Food and Drug Administration, Department of Agriculture, in memo to the President
which was referred to Sen. Robinson on Feb. 16 by the President. Sen. Robinson's
original letter remined.
P.P.F.
SEE - 375
473
ags
ROBINSON, Joe T.
United States Senate
Washington, D. C.
3-11-37 (ack.)
Sent the President a bass. Ack. by the President.
See
P.P.F. 900R
PP7
473
rlv
ROBINSON, Senator Joe T.
pp
7
4-20-37
473
Wrote to the President stating that a number of prominent citizens, including
Mr. Hollins N. Randolph and Mr. Ira Nelson Morris, are profoundly concerned in plans
to revive interest in War Debts, and he promised to speak to the President on the
subject. Said that their thought is that if the subject were well handled it might
result in making satisfactory arrangements at least with some of the powers, and he
expressed his willingness to discuss this with the President.
-----
Attached is the
President's Memo for Mr. Jas. Roosevelt, April 22, 1937 re possibility of seeing
Senator Robinson at teatime, Sunday afternoon, April 25, and to see if he wants to
come alone or if he wants to bring somebody with him.
SEE 212 (Official File)
COPY
MEMORANDUM FOR
June 8, 1936.
SENATOR (JOSEPH) ROBINSON
SENATOR (JOHN H.) BANKHEAD
I think you will both be
interested in this report to me from
our old friend, Edward G. Lowry. I
am assuming that there is little
liklihood of action on a Farm Tenant
Bill at this session, but I hope that
by next January I can have, with your
help. a well worked out plan to be
taken up early in the next session.
F. D. R.
P.S. Joe - When you have read this,
will you sent it on to John (H.)
Bankhead and ask him to return
it to me? No hurry - a month
from now will do.
Let. to President from EDWARD G. LOWRY, Wash.
5/8/36, transmitting report on his trip, through
Southern States, tenant farmers, etc.; existing
conditions.
Papers to Senator Robinson.
P.P.F.
SEE 1650-for first carbon.
473
Roper, Hon. Daniel C.
Secretary of Commerce
June 9, 1937
Transmitting to Mr. McIntyre copy of his (Roper's) letter of June 5, 1937 to
Senator Joseph T. Robinson, re latter's desire to have Commercial Attache Sam E.
Woods appointed Minister to Prague. Attached is copy of Senator Robinson's reply
dated June 8. -- Mr. McIntyre was instructed to "Tell this good news to Senators
Robinson & Harrison". - Secretary Roper indicated that he would stand in the way
of Mr. Woods' promotion.
SEE - 2725
P.P.F.
473
WATSON, Colonel Edward M.
June 11, 1937
Mr. McIntyre referred to him for suggestions, calling attention to the President's
penciled notation: "Mac & Pa Watson to prepare reply," letter addressed to the
President June 9, 1937 from Senator Joe. T. Robinson, recommending Colonel Kyle
Rucker for appointment as Judge Advocate General, which appointment will be due
this fall. -- In accordance with draft submitted by Col. Watson on June 22, the
President wrote Senator Robinson on June 23 that in October, 1935, he made it a
policy, from which he has not deviated, to appoint chiefs of branches only from
officers having four years to serve. This action was at recommendation of the
War Department and for the good of the service. Says Col. Rucker will have only
one year and two months to serve on November 30, when this appointment is filled.
Says the Chief of Staff has confidentially informed him that Col. Rucker is
physically unfit to fill position mentioned. Regrets not being able to report
more favorably on Col. Rucker's chances for this appointment.
P.P.F
SEE - 25-V
473
CARAWAY, Senator Hattie W.
Dec. 17,1937
Writes to the President enclosing an article by Mr. H.L. Nunn, Pres.,
Nunn-Bush Shoe Co., which appeared in the Milwaukee Journal on Dec. 5. -- On
Dec. 20, the President replied thanking for the article about wages and hours of
work. Says it all boils down to one or two comparatively simple factors. Says
the buying power is the annual income of the family and in this connection, as
Joe Robinson realized, the annual income of workers in the South is so low that
they have little purchasing power, little to pay in the way of taxes and that
therefore, education and sanitation have greatly suffered in the South. Discusses
this in regard to the legislation increasing wages and lowering hours of work.
SEE - P.P.F. 5456
P.P.F.
473
Speech Material
filed 8-30-39
Note to the President from Edwin A. Halsey, Secretary, U.S.
Senate, dated Sept. 15, 1938, enclosing speeches by Senators Joseph T. Robinson and
Alben W. Barkley, which may give him (the President) a thought for his forthcoming
speech. These speeches are in regard to the country's economic difficulties.
See P.P.F. 1820
act
P.P.F.
473
ROBINSON, Hon. Joseph T.
June 20, 1935
The President wrote him on the above date, in connection with the Copeland-Bland Bill;
indicating that it has all sorts of provisions about not only cash subsidies, but also
further loans. Expressed the hope that he (President) will have a chance to go over
the whole subject and get an infinitely better bill drafted, before it comes up in the
Senate. Informed him that he desires to have a conference of House and Senate and get
up a very much simplified, practical bill which will give us a merchant marine on our
own terms, and not on the terms of the ship companies or ship builders.
I'dd
SEE - 1660
473
ROOT, Elihu
N.Y.C.
Jan. 28,1935
Writes President he's afraid the World Court protocol without the Johnson
Resolution is up against the same thing that has killed every general arbitration
treaty since Cleveland's time. Discusses this subject. President replied Feb.
9th, thanking for letter, saying that at the outset, early in January, when they
all decided to take up the Resolution, Senator Jos. T. Robinson, Sen. Key Pittman
and himself expected defeat by a close margin but decided that it was better to
undertake ratification then rather than to wait until the hurly-burly of the clos-
ing days. Despite final outcome of World Court vote, thinks Sen. Robinson made
a courageous and intelligent fight. President expresses a wish to see him oc-
casionally, saying he has heard of his fine spirit.
SEE - P.P.F. 2201
P.P.F.
&
473
WORKS PROGRESS ADMINISTRATION, ADMINISTRATOR of
July 17, 1935.
The President, by memo., sent to him for preparation of reply a
telegram from Sen. Joseph T. Robinson, of July 17, 1935, suggesting the establish-
ment of a rural road program under work relief program.--President, on July 23, re-
plied to the Senator saying he was advised by the Works Progress Administrator that
such a program was being followed in a comprehensive manner under his administration.
President said he agreed with the Senator that this type of work was peculiarly adapt-
ed to Rural Roads and that it offered an opportunity for highly useful employment un-
der the Works Relief Program.
P.P.F.
SEE 129
473
cox, Hon. James M.
Atlanta, Ga.,
April 6, 1943.
Writes the President enclosing a news clipping dealing with the Southern Insurrection.
States that sometime ago a man (who is going to write a book on Presidential Campaigns
asked him for any interesting pictures of the affair of 1920. States he found a nega-
tive in the Dayton office which he does not recall ever seeing before. This is a pic-
ture of the President and he is sending the President a opy. States that he also has
come across a picture of Joe Robinson. Comments very favorably upon General Arnold N.
Krogstad, who he says has been doing a swell job.--The President wrote Mr. Cox on April
10th thanking him for his letter, The President commented upon the picture saying that
he thought that he and Mr. Cox were well preserved. The President said he was glad to
know about General Arnold N. Krogstad and hoped to have a chance to see him one of
these days. The President said he hoped to Heaven that our politics will be shortly
rid of their pettiness. The President said that sometimes he got awfully discouraged
when he saw what was going on on the Hill. The President said that neither the Demo-
crats nor the Republicans have fighting leadership up there. The President said,how-
ever, that he still believed in representative democracy and that he should be de-
lighted to see the photo of Joe Robinson.
SEE P.P.F. 53
AS
P.P.F.
473
BROWN, Captain Wilson - Naval Aide to President,
March 17, 1936
Writes Miss LeHand asking her to tell the President that both
Admiral Standley and Admiral Andrews are opposed to the proposed legislation
in behalf of Captain Frank R. McCrary, USN, because they feel it would be EL very
harmful precedent. - Attaches copies of Private Relief Bill No. 487, approved
March 2,1929, in behalf of Captain Walter R. Gherardi, USN, and a H.R. Report. --
On April 13, the President referred to Captain for draft reply, a letter written
Mr. McIntyre from Senator Joe T. Robinson on April 6, asking whether a bill he
would wish to introduce in behalf of Captain McCrary, is in line with the bill
approved March 2,1929 in the case of Captain Gherardi. Encloses two memos. - -
Captain Brown replied on April 14, enclosing draft, also a memo from Adolphus
Andrews, Chief, Bureau of Navigation, disapproving this legislation. - The
President wrote Senator Robinson on A ril 14, quoting the memo of Admiral Andrews.
SEE - 2079 (Official)
P.P.F.
WAR, The Secretary of
May 22, 1936
Mr. McIntyre referred to him for draft of reply, letter from Senator Joe T.
Robinson, to the President May 20, 1936, endorsing Brigadier General Alfred T.
Smith for promotion to grade of Major General. -- Draft submitted by the Acting
Secretary of War, May 28, and accordingly President wrote Sen. Robinson that he
has taken this matter up with the Secretary of War, who assures him that Gen.
Smith's record will receive very careful consideration in this connection.
SEE - 2174
P.P.F.
473
AGRICULTURE, The Sec. of
May 9, 1939
Mr. Early referred for draft of a reply, letter of May 6 to Mr. Early from
Ray S. Gibson, Associate Attorney, U.S. Dept. of Agriculture, Fort Worth, Texas,
who says he is writing at suggestion of Mrs. Joe T. Robinson, and wants reinstate-
ment with Agriculture. -- Sec. Wallace replied May 16, submitting draft. ---
On May 18, Mr. Early wrote to Mr. Gibson that Mr. C.B. Wilson was the choice to
be retained. Discusses this matter in detail. Regrets that Agriculture Dept. has
found it necessary to dispense with his services.
SEE - 3670 (Official File)
P.P.F.