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The original documents are located in Box D6, folder "Ford Press Releases - Banking,
1968" of the Ford Congressional Papers: Press Secretary and Speech File at the Gerald R.
Ford Presidential Library.
Copyright Notice
The copyright law of the United States (Title 17, United States Code) governs the making of
photocopies or other reproductions of copyrighted material. The Council donated to the United
States of America his copyrights in all of his unpublished writings in National Archives collections.
Works prepared by U.S. Government employees as part of their official duties are in the public
domain. The copyrights to materials written by other individuals or organizations are presumed to
remain with them. If you think any of the information displayed in the PDF is subject to a valid
copyright claim, please contact the Gerald R. Ford Presidential Library.
Digitized from Box D6 of The Ford Congressional Papers: Press Secretary and Speech File at the Gerald R. Ford Presidential Library
CONGRESSMAN
NEWS
GERALD R. FORD
HOUSE REPUBLICAN LEADER
RELEASE
--FOR IMMEDIATE RELEASE--
January 25, 1968
Remarks by Rep. Gerald R. Ford, R-Mich., Prepared for Delivery on the Floor of
the House, Thursday, Jan. 25, 1968.
Mr. Speaker, I ask unanimous consent to revise and extend my remarks. Mr.
Speaker, a page one story in the New York Times this morning reveals that
organized crime has moved into Wall Street through the device of loan-sharking.
I ask unanimous consent that the New York Times story be printed in the
Congressional Record immediately following my remarks.
Mr. Speaker, the testimony now being given before a committee of the New
York Legislature on loan-sharking and organized crime points up the need for
swift action by the Congress to swing federal investigators into action against
loan-sharking--one of the principal sources of revenue for the crime syndicates.
We have a vehicle for that purpose in a bill due to come to the House floor
shortly--the Truth-In-Lending Bill which yesterday was granted a three-hour
open rule by the House Rules Committee.
The Truth-In-Lending Bill is urgently needed, and there will be Republican
support for it in the House as in the Senate As reported out of committee,
however, the legislation would not touch upon the tremendous problem of loan-
sharking.
I wish to announce that Republicans will offer an amendment to the Truth-In-
Lending Bill to give additional protection to the man who has to borrow money.
Our amendment will zero in on the lending of money at illegally high rates of
interest. It will unleash federal agents in a drive to rid the country of the
scourge of loan-sharking and to weaken the financial underpinnings of organized
crime.
It seems safe to predict that the House will overwhelmingly approve this
amendment There now is no federal loan-sharking statute on the books.
Mr. Speaker, the Republ Jcan loan-sharking amendment has been carefully
prepared by Rep. William B. Widnall, senior Republican on the Banking and
Currency Committee, and Rep. Richard H. Poff, member of the Judiciary Committee
and chairman of the House Republican Task Force on Crime.
(more)
QERALD FORD LIBRARY
-2-
The loan-sharking proposal first was offered in a bill introduced last
December by all members of the Task Force, the senior Republican on the
Judiciary Committee, Rep. William M. McCulloch, and me.
Mr. Speaker, the Republican amendment to the Truth-In-Lending Bill would
make it a violation of federal law for anyone to lend money at illegal rates of
interest. The interest rate involved would be deemed illegal whenever it
exceeded the rate permitted in a particular state. Federal penalties of a
$10,000 fine or 10 years in jail would apply whenever such a loan interfered
with or affected interstate commerce, or whenever any part of the loan transaction
or efforts at collecting the loan or interest on it crossed state lines.
Mr. Speaker, evidence of the infiltration of Wall Street by loan sharks
and mobsters underscores the urgency of immediate action to bring the full force
of federal investigative power into play against loan-sharking and all it
entails.
Mr. Speaker, the House Republican Task Force on Crime has spent months
in preparing this loan-sharking legislation. The legislation resulting from
this group's efforts deserves the careful consideration of the House. The
loan-sharking amendment merits ringing endorsement.
# # #
CONGRESSMAN
NEWS
GERALD R. FORD
HOUSE REPUBLICAN LEADER
RELEASE
--FOR IMMEDIATE RELEASE--
January 25, 1968
Remarks by Rep. Gerald R. Ford, R-Mich., Prepared for Delivery on the Floor of
the House, Thursday, Jan. 25, 1968.
Mr. Speaker, I ask unanimous consent to revise and extend my remarks. Mr.
Speaker, a page one story in the New York Times this morning reveals that
organized crime has moved into Wall Street through the device of loan-sharking.
I ask unanimous consent that the New York Times story be printed in the
Congressional Record immediately following my remarks.
Mr. Speaker, the testimony now being given before a committee of the New
York Legislature on loan-sharking and organized crime points up the need for
swift action by the Congress to swing federal investigators into action against
loan-sharking--one of the principal sources of revenue for the crime syndicates.
We have a vehicle for that purpose in a bill due to come to the House floor
shortly--the Truth-In-Lending Bill which yesterday was granted a three-hour
open rule by the House Rules Committee.
The Truth-In-Lending Bill is urgently needed, and there will be Republican
support for it in the House as in the Senate. As reported out of committee,
however, the legislation would not touch upon the tremendous problem of loan-
sharking.
I wish to announce that Republicans will offer an amendment to the Truth-In-
Lending Bill to give additional protection to the man who has to borrow money.
Our amendment will zero in on the lending of money at illegally high rates of
interest. It will unleash federal agents in a drive to rid the country of the
scourge of loan-sharking and to weaken the financial underpinnings of organized
crime.
It seems safe to predict that the House will overwhelmingly approve this
amendment. There now is no federal loan-sharking statute on the books.
Mr. Speaker, the Republican loan-sharking amendment has been carefully
prepared by Rep. William B. Widnall, senior Republican on the Banking and
Currency Committee, and Rep. Richard H. Poff, member of the Judiciary Committee
and chairman of the House Republican Task Force on Crime.
(more)
-2-
The loan-sharking proposal first was offered in a bill introduced last
December by all members of the Task Force, the senior Republican on the
Judiciary Committee, Rep. William M. McCulloch, and me.
Mr. Speaker, the Republican amendment to the Truth-In-Lending Bill would
make it a violation of federal law for anyone to lend money at illegal rates of
interest. The interest rate involved would be deemed illegal whenever it
exceeded the rate permitted in a particular state. Federal penalties of a
$10,000 fine or 10 years in jail would apply whenever such a loan interfered
with or affected interstate commerce, or whenever any part of the loan transaction
or efforts at collecting the loan or interest on it crossed state lines.
Mr. Speaker, evidence of the infiltration of Wall Street by loan sharks
and mobsters underscores the urgency of immediate action to bring the full force
of federal investigative power into play against loan-sharking and all it
entails.
Mr. Speaker, the House Republican Task Force on Crime has spent months
in preparing this loan-sharking legislation. The legislation resulting from
this group's efforts deserves the careful consideration of the House. The
loan-sharking amendment merits ringing endorsement.
# # #
30 January 1968
IIIIIII
U. S. HOUSE
REPUBLICAN POLICY
COMMITTEE
OF REPRESENTATIVES
REP. JOHN J. RHODES, (R.-ARIZ.) CHAIRMAN
1616 LONGWORTH HOUSE OFFICE BUILDING
TELEPHONE 225-6168
10
HOUSE REPUBLICAN POLICY COMMITTEE STATEMENT ON CONSUMER CREDIT
PROTECTION LEGISLATION
The House Republican Policy Committee supports Consumer Credit Protection
legislation.
Today, consumer credit totals more than $95 billion. Of this amount, $76
billion is represented by installment credit. Over $31 billion is in automobile
paper. The Federal Reserve Board has estimated that as of September 1967, revolving
credit reached $5.3 billion. The American Consumer is paying approximately $13
billion a year in interest and service charges.
The American Consumer must have the information that is required to understand
and compare the vast number of credit plans that are now available. Full disclosure
of credit charges, add ons, fees and service charges would permit the Consumer to
compare and decide for himself the reasonableness of the overall charge and to deter-
mine the payment method best suited to his particular financial situation.
As reported from Committee, H.R. 11601 does not meet the problem of loan
sharking which preys so heavily upon the poor. A Republican amendment will be offered
that will make it a violation of federal law for anyone engaged in interstate commerce
to lend money at rates of interest held to be illegal under the statute of the State
in which the transaction takes place. This will permit federal law enforcement to
assist the States in ridding our Country of loan sharking and in denying to organized
crime one of its principal sources of revenue.
This amendment and the Consumer Credit Protection legislation merits the
broadest possible support. We urge its adoption.
21 February 1968
IIIII
U. S. HOUSE
OF REPRESENTATIVES
REPUBLICAN POLICY COMMITTEE
REP. JOHN J. RHODES, (R.-ARIZ.) CHAIRMAN
1616 LONGWORTH HOUSE OFFICE BUILDING
TELEPHONE 225-6168
10
HOUSE REPUBLICAN POLICY COMMITTEE STATEMENT ON THE GOLD COVER
AND THE BALANCE OF PAYMENTS
President Johnson's request that Congress remove the gold cover is a tragic
confession of failure. Seven years of Democratic spendthrift policies have reduced
this Country from a fiscal strongman into a hat-in-hand supplicant whose currency is
dependent upon the restraint and forebearance of others. World confidence in the
dollar has been shaken and the international monetary system is in serious trouble.
In this emergency, the stopgap measures and subterfuges of the Johnson Admin-
istration are inadequate and dangerous. Basic and fundamental changes - a complete
redirection of our fiscal affairs - must be effected without further delay.
At the close of the Eisenhower Administration, this Country enjoyed cost-price
stability, a federal budget surplus and a strong international economic position.
The dollar reigned supreme "Good as Gold" was an accurate as well as an apt des-
cription of our currency. Today, by every meaningful measure, the stability and the
economic balance of that period have been dissipated by fiscal and monetary misman-
agement. For example:
Percentage
December 1960
December 1967
of Increase
Net Public & Private Debt
$890.2 billion
$1,430.2 trillion
+60.7%
U. S. Government Debt
$290.4 billion
$345.2 billion
+18.9%
Fed. Govt. Spending (Annual Rate) $ 93.0 billion
$167.5 billion
+80.1%
Yearly interest on Federal Debt $9.2 billion (FY60) $13.5 billion (FY68) +46.0%
Interest Rates
AAA Corp. Bonds
4.41
6.19
+40.4%
High Grade Municipal Bonds
3.73
4.49
+20.4%
Taxable Federal Bonds
4.02
5.36
+33.3%
3 Mos. Treasury Bills
2.928
5.012
+71.2%
Consumer Price Index (1957-59)
100.0
118.2
+18.2%
Foreign Short Term Dollar Holdings $21.3 billion
$32.4 billion
+52.1%
Gold Reserve
$17.8 billion
$12.0 billion
-32.6%
(exom)
(over)
The extent of our monetary problem is best illustrated by contrasing the
situation as it existed in February 1961 with our present situation.
In his February 6, 1961 balance of payments message, President Kennedy
stated:
Our gold reserve now stands at $17.5 billion. This is more than
1 1/2 times foreign official dollar holdings and more than 90 percent
of all foreign dollar holdings. It is some two-fifths of the gold stock
of the entire free world."
Today, our gold reserve stands at $11.884 billion, only three-fourths of
the foreign official dollar holdings of $16 billion and less than 40 percent of all
foreign dollar holdings of $32 billion.
The steadily deteriorating monetary situation has been of growing concern
to Republicans. On March 10, 1965 the Republican Coordinating Committee called
attention to the fact that, "One of the most urgent matters of public business
facing the United States was, and will continue to be, competent management of our
balance of payments, gold outflow and international monetary problems the present
Administration is putting us in a position of dealing from weakness rather than
strength."
On August 30, 1965, the Coordinating Committee recommended a nine point
program that called for the responsible use of fiscal and monetary policies, the
realistic reductions of government overseas economic and military programs and the
implementation of steps to increase the return flow of dollars. Again in April
1967, the Coordinating Committee issued fourteen recommendations that would, if
implemented, insure sound growth and economic stability. Republicans in Congress
made repeated efforts to reduce nonessential spending and successfully led the
fight to cut $5.8 billion from the President's 1968 appropriation requests.
Unfortunately, the Johnson Administration did not heed these warnings or
implement a program of fiscal restraint at home or abroad. Since 1965 it has en-
gaged in fiscal excesses that will increase the administrative budget expenditures
from $96.5 billion to $147.3 billion in fiscal 1969. Nondefense spending will
(more)
increase $24.2 billion (52 percent) and employment in the executive branch will
increase by 454,747 (more than 20 percent). The budget deficit in fiscal 1968 will
total at least $19.8 billion for an astounding total of more than $60 billion in
just eight years.
The balance of payments problem was permitted to deteriorate until in the
fourth quarter of 1967 the deficit was at a catastrophic annual rate of about $7.5
billion. The histcric U. S. trade surplus declined until in the fourth quarter of
1967 imports almost equalled exports. In December alone, our Country lost $925
million in gold and our gold stock dropped to its lowest point in 31 years.
Now we are face to face with a monetary crisis of unknown proportions. The
removal of the gold cover is at best but a stopgap measure. Fiscal stability and
confidence in the dollar must be restored. The outflow of gold must be brought
under control through the implementation of responsible economic policies. We reject
the Johnson Administration's position that this Country can permit its gold supply
to be siphoned off completely.
The balance of payments deficit must be eliminated. However, the Admin-
istration's proposed controls and restrictions on foreign investment and travel may
be self-defeating. In recent years, receipts from direct investments abroad have
been exceeding outflows by $1.5 to $2 billion. Restrictions on foreign travel are
contrary to the basic right to travel, impose an additional financial burden on
those who can afford it the least and invite serious retaliation by other govern-
ments.
We must adopt policies that will encourage a return by this Country to a
trade surplus position that is both historic and absolutely essential. The adverse
effect on the balance of payments of foreign aid and U. S. military expenditures in
Western Europe must be mitigated. Exports and foreign tourism in the United States
must be encouraged. International monetary arrangements must be strengthened.
Recently, the Johnson Administration indicated that at long last it is ready to
(over)
give more than lip service to these proposals. We hope so - action, not more words,
is needed.
There must be a return to fiscal sanity at home. The Administration's ex-
pansionary budget for 1969 must be cut. Spending priorities must be established
and then adhered to.
We recommend the immediate enactment of legislation that would impose a
ceiling on government spending except for additional expenditures that might be
necessary for Vietnam.
We are concerned that removing the gold cover may be construed by the
Johnson Administration as sanctioning in advance the dissipation of our remaining
gold supply, in lieu of making the hard decisions that are necessary to restore
international confidence in the dollar. We believe that a program of domestic
fiscal and monetary reform would do more than any other thing to bolster foreign
confidence in the dollar and reduce pressures on our gold stock.
The removal of the gold cover without making fiscal and monetary reforms
will simply paper over our basic problems, delay a return to fiscal responsibility
and make the monetary crisis more severe and even harder to handle in the future.
REPUBLICAN
REpublican NATiONAL COMMiTTEE
HAPIONAL COMMINSION
1625 EYE STREET, NORTHWEST, WASHINGTON, D. C. 20006
NATIONAL 8-6800
NEWS
FOR RELEASE
March 18, 1968
Monday
STATEMENT OF
THE REPUBLICAN COORDINATING COMMITTEE
Washington, D. C.
This weekend's necessity of revising our international gold
system derives entirely from mismanagement of our domestic finan-
cial and economic affairs by the Johnson Administration. The
international speculation that forced action at this time is
merely a recognition of this mismanagement.
If the new two-price structure for gold is to become the
means of transition to a durable international monetary system,
the basic policies which have led to the dollar's plight must be
changed. The President must proceed at once to restore credibility
and confidence in the fiscal practices of our government. People
around the world, including governments and private individuals,
must again be persuaded that it is better to hold dollars than
gold.
Warning of an imminent international monetary crisis was
made emphatically in a report on the gold drain by the Republican
Coordinating Committee in August 1965, and it has been repeated
consistently since that time.
-2-
The Administration must put into effect at once the sizable
cuts in spending for which the Congress and the Republican Party
have been calling. It is urgently necessary for the President to
come forth with meaningful specific proposals for major reductions
in non-essential government spending. Until he does, there can be
no expectation that the Congress and the American people will
accept a tax increase. The budget must be brought close to balance
and the deficit in our international payments must be
sharply reduced if we are to restore faith in the dollar and
avoid another crisis.
Getting domestic spending under control, and establishing
a structure of priorities to meet pressing human needs at home
and our obligations abroad, is the first order of business for
our nation. The Republican Coordinating Committee calls on the
Administration for an immediate return to fiscal sanity and
monetary discipline.
###
CONGRESSMAN
NEWS
GERALD R. FORD
HOUSE REPUBLICAN LEADER
RELEASE
FOR RELEASE IN WEDNESDAY PM'
May 8, 1968
President Johnson has blamed the Democratic-controlled 90th Congress for
home mortgage interest rates that have reached what he called "the highest point
in 50 years. "
I am certainly not an apologist for the Democratic majority in the Congress.
If the President wants to berate the Democrats in Congress for not passing an
income tax increase up to this time and say that this is the reason for high
interest rates on mortgage funds, I really should not demur.
But I nevertheless feel the American people should be given the facts with
regard to high interest rates on home mortgage money. So I called the Federal
Housing Administration.
In signing legislation which removes the 6 per cent interest rate ceiling
on FHA and VA loans, President Johnson said that while the "need for homes is
always there, no mortgage credit was to be found." "We could have avoided this
if we could have passed a tax increase." He said that by refusing to approve a
tax increase Congress has let interest rates go from "5½ per cent to 7 per cent
and even 8 per cent--the highest point in 50 years."
An FHA spokesman informed me that conventional interest rates last were
5½¹/2 per cent in early 1966 and increased steadily from that time on. They have
fluctuated between 61/2 and 7 per cent for the last six months to a year and are
7½ per cent now, he stated. This means that conventional interest rates on home
mortgage funds have been at least 61/2 per cent for about 12 months. The FHA spokes-
man said they were "higher in the latter half of 1966 when the bottom dropped out."
FHA interest rates were 5½1/2 per cent from Feb. 7, 1966 through April 11, 1966;
5.75 per cent from April 12, 1966, through Oct. 2, 1966; 6 per cent from Oct. 3, 1966
through May 7, 1968; and now 6.75 per cent by administrative action taken Tuesday.
The President rejected the idea of an income tax increase in 1966, when the
interest rate spiral started--nor did he at that time try to hold down federal
spending as a curb on inflation and steadily rising interest rates. He first pro-
posed an income tax increase in his January 1967 State of the Union Message but did
not send Congress a specific tax increase proposal until August 1967. By that time
conventional interest rates were--in the words of the FHA spokesman- 'fluctuating
between 61/2 and 7 per cent" and the FHA and VA rates were 6 per cent.
I don't like to defend the Democratic majority in the Congress, but I do
wish the President would get his facts straight before he gets out his bull whip
even to use on his own party.
# # #