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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 ared aug 2, 2 8 form, - Jelegram besent Wednesday- from Do you grant it? a R7, ANY in' LOBOR be ht /EZ /52 E2 sermit stiplerf GID MORE orpine une тизназяя 3HT 4 over doel гэтая тизмиязуо 2I2 The word his home VS gery Best sale Petrden 11.4, Jue Easy Hos 10' you Byroe nachville (e.e. Tenn 21 How Thit 16th Henry F. /nw= Rainey workipe. EΓH (wello) Salem one 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 E 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- MO 56 38 100 100 62 290 as 64 64 36 38 155 50 76 40 G6 46 96 26 135 54 20 20 120 290 40 48 34 185 85 62 105 20 48 96 17 68 60 62 17 34 St 40 46 280 60 14 % 150 185 IT 48 74 36' 64 11 36 11 52 180 44 36 II . 26 92 280 58 270 46 38 150 60 60 145 180 IIS II 44. 72 37 46 62 19 38 92 100 92 19 19 46 38 8 32 IS so 58 16 8 64 % 24 15 58 16 32 48 16 2 270 125 34 50 an a 260 as 60 42 34 34 140 13 110 36 44 8 260 170 42 18 56 36 88 68 95 56 18 54 18 44 48 135 23 36 260 165 58 250 120 25 30 84 15 165 66 $ 18 30 45 105 42 32 54 42 160 84 32 84 52 40 34 32 250 34 46 56 17 34 90 30 22 42 17 60 64 240 115 B4 * 17 99 340 34 155 52 36 40 50 100 240 40 54 7 80 52 155 28 44 TO 80 125 38 62 230 30 14 32. no 23 30 30 7 56 21 as 14 28 42 14 & 7 16 32 230 50 16 60 9 9 52 50 76 16 38 36 38 9 120 95 32 230 76 220 42 145 76 9 36 as 20 # LAS 38 58 105 28 26 48 65 50 48 30 80 13 52 140 IIS 13 15 30 28 28 72 26 39 220 13 36 40 34 2/0 36 72 15 72 40 15 90 30- 56 100 to 210 19 36 34 48 NORMAL 135 no 75 35 54 2/0 68 200 95 I° T TO % 85 NORMAL THE 130 105 00 56 200 190 + % 42 44 42 64 32 90 & 190 25 80 30 26 32 30 64 64 100 190 24 22 13 26 24 120 55 180 40 42 = 24 13 , 40 44 120 II 22 13 32 33 26 30 $ II 48 85 34 95 30 7 115 DE 40 28 60 65 60 16 75 180 30 46 24. 38 38 115 7 28 170 12 24 32 22 80 170 12 110 90 12 24 5 20 50 28 38 10 5 56 40 28 15 110 10 20 30 44 170 36 70 10 5 26 36 36 160 $ 60 56 + 8 34 28 26 15 30 85 42 22 34 36 = 22 160 26 to 26 34 52 11 20 14 II 22 150 100 52 52 20 65 6 15 + 32 100 26 40 28 34 55 150 36 80 g 18 27 70 g 24 32 150 20 95 32 140 24 10 20 48 48 10 13 95 36 7 24 48 30 10 60 20 32 75 18 65 26 90 22 18 TB 24 30 4 40 50 30 90 22 96 140 16 130 30 8 4 44 32 28 * 12 70 8 16 24 8 4. 22 18 55 28 " 9 18 is ** 34 5 60 24 28 9 3 9 22 18 130 16 20 16 5 120 12 6 80 28 45 16 26 65 11 5 20 26 26 6 80 32 20 14 22 35 20 55 40 40 16 8 16 7 28 7 14 50 120 75 26 24 21 7 20 110 18 8 $ 15 8 16 30 18 14 $2 40 24 Ho 10 18 50 70 20 18 36 14 14 % 110 24 36 22 70 45 28 100 14 10 , * 5 55 18 65 30 22 " + 3 34 7 9 65 12 , 10 6 14 IG & 3 100 16 45 18 16 22 32 35 32 12 32 20 60 20 zo 12 12 50 40 90 16 90 60 20 14 10 24 90 12 40 6 12 14 10 16 55 25 6 18 6 14 18 14 28 18 28 5 28 30 20 45 12 80 55 5 10 15 35 5 14 22 10 18 80 3 35 3 so 12 10 7 80 10 3 16 10 14 50 20 70 16 40 # + 12 5 10 24 16 24 5 3 12 45 * 24 70 5 30 12 10 2 8 20 25 4 2 16 14 64 45 18 70 30 4 4 60 12 14 10 14 35 8 12 2 + 3 40 OF 14 8 8 8 10 20 20 20 $ 40 10 4 25 16. 8 4 12 4 10 60 25 12 12 30 5 8 10 35 20 50 + * + 12 15 3 8 12 35 L4 50 6 8 16 6 10 3 , 3 2 10 6 16 Ф 50 6 30 10 6 25 4 20 30 8 12 40 20 8 10 3 6 * IS 3 3 6 25 de 6 6 40 8 4 6. 10 6 8 12 8 12 12 20 8 25 6 10 30 15 2 I 8 3 15 6 4 * 20 '4 4 2 4 6 2 - 6 21 4 I 1 6 10 6 2 15 9 N 0 4 30 4 4 20 10 4 15 4 8 8 8 10 I 2 15 4 4 6 2 2 5 4 4 4 I 10 4 20 2. 10 2 2 2 4 2. - 10 - 2. 10 2 5 3 5. 2 2 4 - 4 2 4 4 2 2 2 to 1 5 - ? 2 S - 10 5 2 O 0 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 13 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 3 100% 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.