APPENDIX TO THE CONGRESSIONAL RECORD by a Godless, tyrannical, communistic dicta- torship in the United States. The American Communist, on the basis of his own teachings and his own statements, must be placed in the same category as the Ku Klux Klan, the now defunct German- American Bund, and other totalitarian groups. Instead of the K. K. K.’s hooded nightshirt, the American Communist is cloaked in stealth and intrigue. As common criminals: seek the cover of darkness, Com- munists, behind the protection of false fronts, carry on their sinister and vicious program, intent on swindling and robbing Americans of their heritage of freedom. The Communist movement in America dates back to 1919. Its party, like a whirling dervish, has changed its name and its party line whenever expedient. Never has it aban- doned its fundamental principle of Leninism by falling in displaying maximum flexibility in its tactics. It has operated underground, on the sur- face, and behind hundreds of fronts. Party members are constantly admonished, “What- ever changes we may make * * * the fundamental objectives and characteristics of our party will remain,” and “what Com- munists do not change, of course, is their strategic aim, the proletariat revolution and socialism.” No member of standing in the party, which bases itself upon the principles of scientific socialism, Marxism-Leninism, can hide behind the shield of ignorance of the true revolutionary intent of the American Communist Party. Its latest constitution specifically provides, “All members shall strive to acquire an understanding of the funda- mentals of Marxism and at all times aim to apply Communist consciousness, under- standing, responsibility, and initiative in their work and activity.” In short, become a revolutionist, for that is what Marxism stands for. Karl Marx was the Creator of modern communism; V. I. Lenin was the strategist who translated Marx’s theory into action. As “Marxism-Leninism * * * guides our party and the masses in the struggle,” the Communist Party fervently brings its “Marxist-Leninist analysis of the United States as an imperialistic country to the masses.” Hence, last fall the party launched an in- tensive training program for the 15,000 new party members, as well as for the older ones. In September and October, teachers were selected and given speciai training. The 8-month training program, scheduled for November, was based on self-study guides, including a glossary of terms, central ques- tions, and supplementing facts prepared by the national educational department. Text- books included such standard Communist works as the Communist Manifesto, History of the Communist Party of the Soviet Union, the writings of Marx, Lenin, Stalin, and the writings and speeches of American Commu- nist leaders. No party school would be com- plete without regular references to the Dally Worker, Political Affairs, the monthly theo- retical organ of the party, and other Com- munist publications. Every Communist is taught the basic prin- ciples of organization, agitation, and propa- ganda, for the teachings of “Marx, Engels, Lenin, and Stalin * * * enable the party to direct the struggles of the working class along the correct line and to gain victories while avoiding unnecessary sacrifices.” “these teachings the Communist Party is able to find the best methods of struggle * «¢ * against capitalism,” as the party “leads the working class in the fight for the revolutionary overthrow of capitalism for * © the establishment of a Socialist Soviet Republic in the United Sta American Communists are the first to ad- mit that before they can foment their revo- lution, certain conditions must be met. These ore outlined by Lenin, “for revolution it is essential, first, that a majority of the workers * * * should fully understand the necessity for revolution and be ready to sacrifice their lives for it; secondly, that the ruling classes be in a state of governmental crisis which draws even the most backward masses into politics * * ° weakens the government, and makes it possible for the revolutionaries to overthrow it rapidly.” To that end the Communists are eternally on the alert to mobilize and extend their forces; then either to create or to seize upon @ crisis as a springboard to revolution. A Communist pamphleteer proclaimed that they go to legislatures, not to secure legis- lation to aid capitalism, “but to be a mon- key wrench in their machinery, preventing it from working smoothly.” A former Com- munist Party organizer quite openly ad- mitted that a good economic situation does not serve the Communist Party, as it “real- izes that a revolutionary movement can only be built among the people who have a griev- ance, real or imagined or invented.” Every strike is closely watched by Com- munist observers, for out of every struggle the workers can gain experience that will teach them the correctness of its revolution- ary policies and tactics and win their confi- dence and support. The world's foremost authority on com- munism has already laid down the party line to American Communists: “I think the moment is not far off when a revolutionary crisis will develop in America, and when a revolutionary crisis develops in America that will be the beginning of the end of world capitalism as a whole. It is essential that the American Communist Party should be capable of meeting that historic moment fully preparec and of assuming the leader- ship of the impending class struggle in America. * * * For that end we must work in order to forge real revolutionary cadres and a real revolutionary leadership of the proletariat, capable of leading the many millions of the American working class to- ward the revolutionary class struggles.” The Communists propose that a crisis will develop, either out of an imperialist war or out of a domestic situation. If their tactics are proper, the ground is prepared for action when war comes, It can be delayed by an- swering the call: “Workers in ammunition plants, go on strike. Shut down your plants. Prevent governmental strikebreakers from resuming work. Railroad men, refuse to handle war materials or transport troops. Marine workers, do not load either men or ammunition. Truck drivers, refuse to assist in war work. Workers of other industries, help the strikers. Farmers, refuse to give your foodstuffs and raw materials to be used for the slaughter.” This Communist teacher then observes: “If the workers rise in this way against war, the capitalists with their armed forces will try to break the deadlock. There will be attacks on strikers. The workers will. have to offer resistance. We Communists do not close our eyes to the fact that this means civil war,” and “victory in the civil war spells the doom of the capitalist state.” The American Communists publicly avoid admitting plans for revolution by force and violence, as this antagonizes good Americans. Among themselves they admit, however, that some form of violence is unavoidable. They were so concerned over the thought of force and violence that at one of their con- ventions the Communists adopted a resolu- tion designed “to smash once and for all the superstition * * * that our party is an advocate of force and violence.” Hypo- critically the party said, “The revolution does not simply happen; it must be made.” In the training schools operated by the Communist Party the instructors are certain to tell their students to deny, if questioned by the FBI, their revolutionary intent with force and violence, and then in the same breath will admit that they oan never create a communistio government without revo- lution, A537 While Attorney General the Honorable Francis Biddle, after a lengthy review of the background and aims of the party in 1942, ruled, “The Communist Party of the United States of America, from the time of its in- ception in 1919 to the present time, is an organization that believes in, advises, advo- cates, and teaches the overthrow by force and violence of the Government of the United States.” For this, he incurred the party's wrath and condemnation. The party's record in recent months makes this decision all the more important today. For the Communist record is clearly one of “flip-flops,” which gives positive evidence to the torce of theses and resolutions of the Third World Congress of the Communist International in 1921, which provided, “The unconditional support of Soviet Russia is still the main duty of the Communists of all countries.” William Z. Foster, chairman and chief Communist spokesman in the United States, put it this way, “In supporting the Soviet Union, the Communists in a given country are thereby also furthering the best inter- ests of their own people.” Foster's observations were consistent with those he made on one occasion before a con- gressional committee, when, in response to the question as to whether the Communists “look upon the Soviet flag as their flag,” he said, ‘‘The workers of this country and the workers of every country have only one flag, and that is the Red flag.” Two day after Germany and Russia be- came partners in the rape of Poland the party line was fixed by the issuance of a manifesto urging, “Keep America out of the imperialist war,” as it was not a ‘war against fascism.” The American Communists threw every possible obstruction in the way of our defense effort. New front organizations were created to carry on the campaign “Keep America out of war,” to block lend-lease, the draft, and the buildin, up of our armed forces. The American Communists employed every stratagem and tactic to impede the defense of America. That line was followed until the German invasion of Russia on June 21, 1941, and then, overnight, the Communists buckled down to the business of all out production. Their new slogan became: There can be no excuse for interference with production to aid the Soviet Union and its Allics. But once the war was over they reverted to form. Earl Browder, for years the foremost party spokesman, was expelled trom the party on charges of “revisionism.” ‘The Commu- nist Political Association, created to per- petrate the fiction that the party had no revolutionary aims, was dissolved after 14 months’ existence. The party assumed its old name. The Communists promptly charged our Government with following “an imperialist program * * * leading to the growth of reaction * * * to anti-Soviet incitements and toward the outbreak of a new world war.” American foreign policy was referred to as “The enemy” in the Daily Worker, and Wil- liam Z, Foster took the stump campaigning against “American imperialism” and “Ameri- can monopoly capital.” Communists spokes- men in Latin-American countries echoed with denunciation of ‘Yankee imperialism.” The disloyalty of American Communists is no longer a matter of conjecture. The aims of the American Communists of ultimately destroying our democratic form of government call for work on many fronts. To reach their objectives they must mobilize a force willing to follow their leadership. Their traditional point of attack is through trade-unions, The good American labor lead- er and the patriotic American union member have a single objective—namely, the better- ment of the worker—the obtaining of greater security and improved economic positions. But not the Communist. He is first a Marx- ist—a Leninist—and as such he seeks to in- filtrate the ranks of labor, not for the purpose
A538 of bettering labor, but for the purpose of using labor for the revolutionary purposes of the Communist Party. They employ many tactics in winning their points. Communists are thoroughly schooled in implementing the directive of Lenin: “e © © to agree to any and every sacrifice, and even, if need be, to resort to all sorts of devices, maneuvers, and illegal methods, to evasion and subterfuge, in order to penetrate into trade-unions, to remain in them, and to carry on Communist work in them at all costs.” In other words, followers of Lenin are urged to employ trickery, deceit, law- breaking, withholding, and coloring truths to accomplish the Communist aims. They are tireless workers, excellent organ- izers, thoroughly trained in all phases of union activities, persuasive talkers, and zealots beyond words. They capitalise on the seeming apathy of union members in follow- ing union business. While “plants grew to employ ten, twenty, and thirty thousand workers * * °* their local unions rarely attracted more than a few scores at member- ship meetings. The ized minority of Communists, who made it a point to attend meetings with their followers, thus were able to maneuver themselves into positions of importance. In one key war plant with a total personnel of 8,500, an American unionist lamented that he and his associates endeavored to oust the Communists, only to meet defeat despite the fact that there were less than 200 Commu- nists in the union. Another unionist observed from years of experience that Communists would follew the party line when it conflicted with union in- structions. In recent months, Communist leaders have been advocating a “conoentration policy of the entire party, which must bring about a decisive change in the work of all the pro- gressives in the A. F. of L.” One thing is cer- tain, the Communists will try to infiltrate and change the policies of the labor leaders who are characterized by William Z. Foster as “these antediluvians entrenched in the A. F. of L.” The word has been widely circulated that the party program calls for the infiltra- tion of thousands of Communists into the ranks of the A. F. of L. Obviously, the party will not wish to publicize their membership goals. A. F. of L. President William Green and his associates know the Communist Party for What it is. The American Federation of Labor, to its credit, has rcpulsed with char- acteristic American frankness and vigor the infectious germs of Communist paralysis. Their biting denunciations of it have won them the antipathy of the Communists. The same is true of those anti-Communist leaders in the CIO who are the targets of undercover attacks by the Communists. For years, the Communist Party has been trying to penetrate the unions of railroad workers. In fact, William Z. Foster has been blunt in expressing himself on the subject. A few years ago he told a meeting of Com- munist leaders, “I unhesitatingly say this is the most important 1,000,000 workers in the United States. You can have a strike of steel workers for 6 months, and the country could limp along somehow. * * * We have seen coal miners’ strikes last for many months, but let the railroad workers go on strike, and at the end of 3 days the country is in a state of prostration economically. This is how powerful the railroad workers are.” Apparently, the Communists feel that the time is ripe fo: an offensive against railroad workers. The organizer assigned to the na- tional railroad committee. of the party has revealed that the strike of last May has * * © created conditions in the industry favorable to building ths party, and that in @ recent conference a campaign had been decided upon to bring 500 new railroad workers into the party. Last October, the same organiser an- nounced the creation of a special monthly paper, the Railroad Worker's Link, in a statement headed by Lenin's observation, “A newspaper is not only a collective propa- gandist and collective agitator, but also a collective organiser.’ The Communist ratfi- road program, among other things, calls for “nationalization of the railroads” and for a “socialist reorganization of our country.’ The Communists will undoubtedly seek to recruit party members among railroad work- ers by seeking to shake their confidence in their leaders with the old Foster charge, “e ¢ © it ts the union leaders’ policy to sneege every time the railroad owners catch a cold.” Regardless of the economic basis of many of the recent strikes, the Communist sees in each a Marxian lesson and is not the least re- luctant to boast that in the strike struggles the positive and influential role of the Com- munists is to be found and in some of the trade unions the Communists play a key role in helping shape vital strike strategy and tactics. The revolutionary aims of the Communist Party furniah the explanation for their an- tipathy to religion, which was branded by Marx as an opiate. The Communists contend that religion and religious institutions hold the masses in check ahd blind them to de- plorable conditions by the hope of a reward after death. William Z. Foster in 1931 stated, “Our party considers Feligion t to, be the opium of the people * * * we carry on propaganda for the Liquidation of these prej- udices amongst the workers.” But since this view has met with so much opposition, the Communists now, in their publle utterances, try to explain their position by saying it was @ sectarian position of the party, and that they now stand for freedom of worship. But in the same breath they say they also stand for education against beliefs in the super- natural that will remove the religious prej- udices which stand in the way of organizing the masses for socialism. In their scheming manner they hold that, as Marxists, they must seek ways to unite church people, when possible, “on issues however moderate and always with sensitive regard for their deep-going religious feel- ings,” in order to win them for “democratic advance”; in other words, to hoodwink church people while they would undermine the church. Despite their claims for freedom of religion they “do not consider religion to be a private matter as it concerns members in our revolutionary party.” Regardless of their explanations, the truth remains that atheism is as fundamental a doctrine with Communists as the existence of God is to all religious faiths. One or the other must inevitably triumph. Marzism- Leninism as a way of life for the American Communist stands for Godlessness, a dis- torted sense of morality, and the subjugation of freedom of thought, act, and deed to the dictatorship of the proletariat. The youth work of the Communist Party reveals the same deceit and trickery that characterise the communistic approach. For years the Young Communist League was used as a recruiting field for party members and as a proving ground of Communist lead- ers. Then the Young Communist League could no longer conceal] its real purposes from American youth and had served its useful- ness to the party. In mid-October 1948, the Young Com- munist League dissolved, only to be reacti- vated the following day under the high- sounding name, American Youth for Democ- racy, with Carl Ross, former head of the Young Communist League in New York, as its executive secretary. This new front then things establishing danaibly to combat juvenile delinquency. , these centers could be termed Communit youth-recruiting centers. APPENDIX TO THE CONGRESSIONAL RECORD The importance which the Communists place on youth work is reflected by a party lecture outline in a youth leadership course which concludes with the admonition, “We need a Communist youth movement which can furnish leadership for mass work.” The Communist view on veterans is identi- cal. They want them for party work. When they champion the veterans’ cause they do it because it serves the Communist cause. Proudly pointing to an alleged 15,000 Com- munists who served in the armed forces, they regard such of them as have come back into the party as a nucleus around which to bulld in the future. Traditionally, they have vili- fied and smeared the principal veterans’ or- ganizations who put loyalty to their country above subservience to totalitarian philoso- phies. Increasingly, the American Communist has aimed his efforts at enlisting the support of the American Negro. Under the guise of championing a just cause, the Communist seeks to further his own diabolical ends. Much is promised, little given. The class- conscious Communists recognize Negroes as merely allies of the American working class. Communists attempt to supersede the thor- oughly worthy American Negro organizations as the Negroes’ champion. Many liberals seeking to better the Negro’s plight, who will have no part of the Communists’ real program and whom the Communists cannot influence, are labeled Trotskyites. Doubt is adroitly Yaised by the Communists concerning these American leaders in Negro organizations, in an effort to discredit them. The record would clearly indicate that the American Negro recognizes the fact that the Communists are seeking to use him in devel- oping the class struggle. Communist officials lament the low percentage of Negro party members. American Communists exact a high degree of loyalty from their members and not only teach discipline but demand it. Once a party member deviates he at once becomes the target of a campaign of mass hatred and is designated as a class enemy or a labor spy. Recommended methods of treatment include the publication of the enemy's pic- ture in the Daily Worker, organized agitation against him among the workers, a mobiliza- tion of the women and children in the block where the enemy lives to make his life mis- erable, the boycotting of his children. In short, the enemy will be purged through real mobilization. The Communists teach that: “Attacks upon our party are attacks upon all labor. Every oppressive move against the Communist Party must be combated as a violation of the Bill of Rights, The newspaper liars are out to foment a war tension between us and the Soviet Union. Under cover of attacks against the Communist Party the assault against everything progressive is being made.” That their defensive tactics have been successful is found in the fact that any exposure of communism is Red baiting in certain circles, A countertactic calls for the labeling of anti-Communist statements as denunciations of liberals and progressives. Their reasoning that Hitler criticized the Communists, hence anyone else who criticizes communism is a Hitlerite, is illustrated almost daily in their publications when they label anti-Communists as Hitlerites, Fas- cists, or Nasis. If we are to preserve the American way of life, the menace of communism must be met and ite forward march halted. Truth was our propaganda in World War I. It is the best weapon to use against Red fascism in America today. A Communist, steeped in stealth, trickery, and deceit, can- not long survive the truth. The rays of the spotlight of public opinion focused on communism will have the same curative effect that X-rays have upon cancerous growths, if applied in time.
APPENDIX TO THE CONGRESSIONAL RECORD Lincoln Day Address by Hon. Henry Cabot Lodge, Jr., of Massachusetts EXTENSION OF REMARKS HON. HENRY CABOT LODGE, JR. OF MASSACHUSETTS IN THE SENATE OF THE UNITED STATES Friday, February 14, 1947 Mr. LODGE. Mr. President, I ask that there be printed in the Appendix of the Rrcorp a speech delivered by me on February 12 at the Lincoln Club in Louis- ville, Ky. There being no objection, the address was ordered to be printed in the Recorp, as follows: It is a very great pleasure to be here in Kentucky and to have the honor of address- ing this influential organization. I appre- ciate this opportunity to be with you for many personal reasons; I heve lived in Ken- tucky as a soldier at Fort Knox and have traveled through part of this beautiful State. Then my life has been enriched by close friendship with Kentuckians whom I have met in college, in public life, and in the Army. To one Kentuckian, your own won- derful Dr. Fred Rankin, of the University of Kentucky, I owe a debt of gratitude of the sort which cannot be repaid. As a Republican, I am naturally well aware that Kentucky was one of the States to start the Nation-wide Republican trend by elect- ing Governor Willis. We outside of Ken- tucky have heard good reports of his admin- istration and of the service in the Senate of Senator Stanfill. Now, Kentucky is ably represented in the House by Congressman MeEapE and Congressman MorTon, and, of course, by former Senator Rossion, whom 1 first met when I was a young newspaperman in Washington and with whom I have kept in friendly touch ever since. Let me particularly and personally con- gratulate you and the voters of this State on having sent Senator Cooper to represent you in the United States Senate. Although we have only served together a few short weeks, I have come to appreciate his sound judg- ment, his independence, and his fine char- acter. He has, to a very remarkable degree, won the esteem of his colleagues. I predict big things for him. So you see there are strictly personal rea- sons why I am glad to be here. Then there are civic and patriotic reasons, because who can be in Kentucky at any time—and least of all on February 12—without thinking of Abraham Lincoln whose birthplace at Hodgen- ville I have, in common with so many mil- lions of other Americans, visited. To speak in Kentucky without basing one’s thought on Lincoln would be almost an irreverence, Carl Schurz, biographer of Abraham Lin- coln, said that Lincoln had a “weird mix- ture of qualities and forces.” What were some of them? First, there was his hatred of cruelty, which we see in his early childhood when he re- proved some of his boyhood acquaintances for cruelty to a dumb animal. This same hatred of cruelty appears in his fight for the down-trodden man, and we see his greatness of heart in his letter to Mrs. Bixby, who, in losing her five sons in the War Between the States, had, as Lincoln said, “laid so costly & sacrifice upon the altar of freedom.” He loved his fellow man. Such love must be the guiding motive of those who govern in a demooracy. Secondly, was his honesty. Horace White, of Iilinois, a contemporary of Lincoln’s and an active Republican of that era, says this: “The popular conception of Mr. Lincoln, as one not seeking public honors, but not avoid- ing public duties, is a post bellum growth very wide of the mark. He was entirely hu- man in this regard, but his desire for political preferment was hedged about by a sense of obligation to the truth which nothing could shake, This fidelity to truth was ingrained and unchangeable. In all the speeches I ever heard him make—and they were many— he never even insinuated an untruth, nor did he ever fail when stating his opponent’s position to state it fully and fairly. He often stated his opponent’s position better than his opponent did or could. To say what was false, or even to leave his hearers under a wrong impression, was impossible to him. Within this high enclo- sure he was as ambitious of earthly honors as any man of his time. Furthermore, he was an adept at logrolling or any political game that did not involve falsity. I was secretary of the Republican State Committee of Illi- nois during some years when he was in active campaign work. He was often present at meetings of the committee, although not a member, and took part in the committee work. His judgment was very much de- ferred to in these matters. He was one of the shrewdest politicians in the State. Nobody had had more experience in that way; nobody knew better than he what was passing in the minds of the people. Nobody knew better how to turn things to advantage politically and nobody was readier to take such advan-~ tage, provided it did not involve dishonorable means. He could not cheat people out of their votes any more than out of their money.” Such a principle is a charter for the endur- ing freedom of a people truly and enduringly free. Such a charter should be, and will be, the charter of the Republican Party, not for today or for a single adventure, but for all the times that are to come. Third on my list was his desire to unite the people. It was Lincoln who asked the famous question: “Must a government of necessity be too strong for the liberties of its people or too weak to maintain its own existence?” According to Schurz, his was “the leadership which does not dash ahead with brilliant daring, no matter who follows, but that which was intent upon rallying all the available forces, gathering in the strag- glers, closing up the column, so that the front may advance well supported.” Lincoln expressed his passion to unify the people in his ringing and solemn utterance: “A house divided against itself cannot stand, I believe this Government cannot endure permanently half free and half slave. I do not expect the Union to be dissolved; I do not expect the house to fall; but I do expect it will cease to be divided.” In our contracted modern world, where we live shoulder to shoulder with other nations having different views of life, how vital it is for us never to be a house divided. These then are three pinnacles of Lincoln's life: First, his loving kindness for his fel- low men; second, his honesty; and, third, his passion to unify the people. There is, of course, one more, You may call it, as history has, a radical trait. Phillips Brooks, the great clergyman of Boston, described it in these words: “The union of the mental and moral into a life of admirable simplicity is what we most admire in children; but in them it is unset- tled and unpractical. But when it is pre- served into manhood, deepened into re- lability and maturity, it is that glorified childlikeness, that high and reverent sim- plicity, which shames and baffles the most accomplished astuteness, and is chosen by God to fulfill his purposes when he needs a ruler for his people, of faithful and true heart, such as he who was our President. “Another evident quality of such a char- acter as this will be its freshness and new- ness, if we may so speak. Its freshness or readineas—call it what you will—its ability to take up new duties and do them in a new A539 way, will result of necessity from its truth and clearness. The simple natures and forces will always be the most pliant ones. Water bends and shapes itself to any chan- nel. Alr folds and adapts itself to each new figure. They are the simplest and most in- finitely active things in nature. So this na- ture, in every virtue of its simplicity, must also be free, always fitting to itself each new need. It will always start from the most fundamental and eternal condition and work in the straightest, even although they be the newest, ways to the prescribed purpose. In one word, it must be broad and independent and radical. So that freedom and radical- ness in the character of Abraham Lincoln were not separate qualities but the neces- sary results of his simplicity and childlike- ness and truth.” This man “of freedom and radicalness,” let us well remember, reminded his fellow coun- trymen that “this country with its institu- tions belong to the people who inhabit it. Whenever they shall grow weary of the exist- ing government they can exercise their con- stitutional right of amending it, or their revolutionary right to dismember or over- throw it.” We cannot be timid and be worthy of Lincoln, There is one final word from him, one word of thunder that comes breaking out trom the past to help us today: “The dogmas of the quiet past are inadequate to the stormy present. The occasion is piled high with difficulty, and we must rise with the occasion. As our case is new, 80 we must think anew and act anew. We must dis- enthrall ourselves.” “Think anew and act anew’’—pretty good words for Republicans, indeed for all Ameri- cans, to remember. “Think anew and act anew”’—thoughts which, judging by the election returns last November, were uppermost in the minds of a very large number of voters. Well, what should we think and how should we act? We can think of many ways in which we should not act—certain examples which we should not follow. I remember an incident which took place in 1930 which illustrates my point. That was the year that the Dem- ocrats took over control of Congress for the first time in many years. An energetic young newspaperman was anxious to find out what the Democratic program was going to be for the forthcoming session and sought an interview with a very senior Congressman who was known to be affable and approach- able. The reporter said to the Congressman: “I suppose you Democrats will have some very important decisions to make now that you have gained control of the Congress.” “Oh, yes,” said the Congressman with em- phasis. ‘We will have some mighty impor- tant decisions to make. In fact, I have just now been thinking about one of the most important things—one of the things which we should do first.” The reporter braced himself to receive an enunciation of policy on foreign affairs or the balancing of the budget. “Yes, Congressman,” he said. should that first policy be?” Without hesitation the veteran legislator replied: “To get rid of the Republican elevator operators in the Capitol.” Ladies and gentlemen, that is a good ex- ample of how not to do it—and of course I say that without regard to which party's elevator operators are involved. Well, when we say “think anew and act anew,” what do we mean? We can answer this question in two ways— by the kind of program we adopt and by the attitude of mind and of character of our elected Republican policy makers. Remem- ber, of course, that we are not yet in control of the Government of the United States of America. I say “not yet” because I not only “And what
A540 hope—I also believe—that the Republicans will conduct themselves in such a way as to win the Presidency in 1948. Until that oc- curs, it should be remembered that the Re- publican Congress is not all-powerful. We can enact sound legislation; we can seck to offset and prevent ill-advised actions by the administration; we can Jay down intelligent plens for the day when we do take Over; we can investigate suspicious episodes in the recent past—but the President still has the veto power and the executive branch still administers the laws which Congress enacts. Then there are some important areas of Government in which partisan competition would be definitely out of place. The con- duct of foreign relations, for example, ines- capably involves the issue of life and death for the American people. We rightly sup- port an American foreign policy of vigor- ously building up and strengthening the United Nattons. Our armed forces too are indispensable to the conduct of foreign re- lations. In both cases the bipartisan ap- proach must be continued. Partisanship not only stops at the water’s edge; it also must stop at anything involving the very life of the citizen. What of domestic policy? In Massachu- setts the Republican State committee d2- veloped a slogan last fall, which attracted much favorable attention. The slogan said: “Had enough? Vote Republican.” The re- turns showed that evidently many voters had indeed had enough—in fact they had had too much of confusion, of corruption, of un-Americanism and of general incompe- tence. But this slogan, effective though !t was, only tells half of the story—the negative half. In pursuance of this slogan we must clean up the mess in Washington. That means the rooting out of corruption, the elimina- tion of waste, the abolition of overlapping and duplication, and the intelligent assign- ment of functions to the executive branch. This is a Job which cannot be done over- night. In fact, on most of these things the facts are not known. We need investiga- tions by men of the highest ability and in- tegrity to find out what the truth is regard- ing the present governmental tangle. To- day it is difficult to prune out surplus dead- wood without cutting down a valuable tree. No reorganization of the executive branch of the Government has taken place since the war. Congress has tried to streamline itself; it is high time this was done for the execu- tive branch as well. If you will forgive a personal note, I have introduced a bill for a commission to reorganize the executive branch which is to report by January 1949, just in time for the opening of the Eighty- first Congress. Now is the time to begin such a study, just as the partisan composition of our Government is changing. But there is another half of the story. The same voters who agreed that they had “had enough” did not intend that in voting Republican they were voting for reaction. We were not put in office in order to put back the clock. We were, in'my judgment, sent there in order to wind it up, get the crumbs and rats’ nests out of the gears and get it going again. In a word they were voting to make their Government once again an effec- tive agency for translating into action the aims and the aspirations of the American people. That is the very basic truth. All of us who were in the services during the war and who have seen the rest of the world at first- hand know very well that the fundamental reason why popular government has ao largely disappeared in the Old World is be- cause it was no longer able to give effect to the popular will, When that happens people are ready for the dictator. The Amer- ican voters in November 1946 were deter- mined that this should not happen here, We Republicans are on probation. Many people did not vote for us so much as they voted against the things they did not like. And, once we have cleaned up the mess and made an effective Government in Washing- ton, there are some more positive steps to be taken. We must develop a balanced budget, because with Government finances in & healthy condition, there will be new jobs and better living for all. If the balancing of the budget permits, we should seek to reduce taxes, bearing first in mind those with fixed incomes whose standard of living has been so grievously cut by the inflation of prices for all the necessities of life. We must also ease those “taxes on ambition” which lessen economic opportunities for those who reed them most. The American community must guard it- self against stoppages in essential industries which threaten the health—and even the life—of the men, women, and children of this country. But remember that true in- dustrial does not and can never be brought about by legislation. There must be no hate-filled action—oniy honest treatment of labor and management for the good of all the people of whom labor and management are a part. Our prime reliance for the well-being of the citizen must always rest on having a private-property economy. We believe he prospers better under such a system, and we know that without a private-property econ- omy & political democracy is impossible. The two go hand tn hand. Destroy private property by direct or indirect action and you destroy human freedom. But there are chinks which our private-property economy does not always reach, and there are certain things which it is more convenient for us to have government do—and government, We hope, will under Republican guidance be- come an efficient tool to do whatever the People want it todo. For example, there are useful steps which government can take in the field of public health without in any way bringing to the needy and the sick dangers of so-called socialized medicine. One such step is to make a free distribution to the needy sick of certain medicines the value of which is proven and which are beyond the financial reach of many persons. Nor is it disputed that government has an obligation toward aged persons who come to the end of their lives without adequate means, just as government has the duty to help effectively in easing the present acute housing shortage which is striking such a blow to family life in America. There are many reasons for believing that Government funds should be user to facili- tate scientific research, but not under con- ditions which impose governmental domi- nance of scientific thought. Then, we know that in the past few years the United States, universally known as the richest Nation in the world, has actually be- come a have-not nation. We are no longer self-sufficient in many vital minerals. Never again will we be able to supply our own military needs in time of war from our own ofl resources. Careful study should be given to the proposition of acquiring foreign oll for our routine consumption so that our own do- mestic resources may be conserved. Some of these measures may require the expenditure of funds, but if something is necessary to the continued well-being of the Nation it is not true economy but foolishness to refuse to do it. We do not favor foolish economy; what we oppose is any kind of waste or duplication. I sum up in a few brief phrases: 1, Continuation of bipartisan approach to foreign policy and national defense. 2. Root out corruption, eliminate waste, abolish overlapping, and get plans ready for a complete overhauling of the Government in January 1949. : APPENDIX TO THE CONGRESSIONAL RECORD 8. Government finances to be put in healthy condition, making possible better liv- ing for all. 4. Protective measures against stoppages in essential industries which endanger the life and health of everyone. 5. Measures in the fields of public health, social security, housing, and scientific re- search to meet situations not adequately reached by our private-property economy. 6. Vigorous program to acquire abroad essential mineral and other products, the shortage of which now make us a have-not nation. 7. Public officials to have a selfizss atti- tude and to seek to unify the people. In other words, my friends, we are em- barked on the most constructive possible program—that of getting our great country going agrnin. We know that we have the natural resources and the human resources in America so that all can have a good life— if only things are organized right. It's really & pleasant picture. All that is needed is some leadership in Government which is in- telligent, unselfish, and courageous. Pro- grams in themselves are not enough. The attitudes of those who carry them out are also vitally significant. For an attitude we cannot do better than to go back to Lincoln’s character—to his human, loving kindness, his honesty, his pas- sion to unify the people. May we love our fellow men as Lincoln did. May we who are officeholders be selfiess, as he was, and remember that we are personally unimportant; that we are not elected in order to try to hang on to office for dear life; that we are political expendables. May we, all of us, in and out of office, Republicans and Democrats alike, unite as Americans. A united American people, filled with a flamelike faith in our country’s future, can overcome all obstacles and advance to greater heights of material and spiritual well- being than any previous organization of human beings has ever known. America’s Effort for World Peace EXTENSION OF REMARKS HON. A. WILLIS ROBERTSON OF VIRGINIA IN THE SENATE OF THE UNITED STATES Friday, February 14, 1947 Mr. ROBERTSON of Virginia. Mr. President, on the evening of February 11 last, in Winchester, Va., at the fiftieth anniversary banquet of the Charles Broadway Rouss Volunteer Fire Com- paby, our distinguished colleague the junior Senator from Florida [Mr. Hor- LAND) delivered an able, timely, and illu- minating address on the subject Our Na- tion’s Effort for World Peace. I ask unanimous consent that the address may be printed in the Appendix of the Recorp. , There being no objection, the address was ordered to be printed in the Recorp, as follows: OUR NATION’S EFFORT FOR WORLD PEACE As we survey our accomplishments since VJ-day in the field of international relations, particularly from the standpoint of measur- ing our progress toward peace, I fee] that there is much in the record from which we may derive great satisfaction. We should not, of course, be starry-eyed idealists who fall to realize that we are up against the hardest task in international relations that
APPENDIX TO THE CONGRESSIONAL RECORD our Nation has ever confronted. But we have made so much sound progress that I feel completely out of sympathy with those citi- zens who are wailing that the effort for peace has already been lost and that we are pur- suing a hopeless objective. This defeatist attitude is not justified and will not furnish us the inspiration to continue unremittingly on the long, difficult, and continuing path which undoubtedly les ahead of us, but which we must safely traverse, by using every means afid resource in our command and all the patience and wisdom that we can possibly muster. The objective for which we strive—permanent peace for a war-weary world—is so infinitely worth while for our- selves, our children, and all of mankind as to challenge our greatest efforts and our most devoted service. In looking back on the record already made, one of the outstanding facts is that we have been able to avoid some of the major mis- takes which we made following the end of World WarlI. In conducting with the leaders of our allies his historic conferences during the war, the late President Roosevelt was careful to recognize the interest and con- stitutional jurisdiction of the Senate in for- eign affairs. You will recall that he took with him, to assist and advise him in every step which was taken, Senators CONNALLY and VANDENBERG, the Senate spokesmen for the two major political parties. Likewise, in the San Francisco Conference, which per- fected the planning for the United Nations organization, the full participation of these Senate leaders was invited and given. Largely as a result of this considerate and wise ap- proach, which since Mr. Roosevelt's death has been consistently followed by President Tru- man, our Nation speedily entered the United Nations organization and became its chief sponsor. We joined the World Court and the World Bank, took a leading part in UNRRA, and attained such leadership and prestige in the international approach to peace that the other nations of the earth felt that the headquarters of the United Nations, the new world capital, should be located nowhere else than in the United States. This bipartisan approach to the problems of the war and to the establish- ment of the United Nations was continued and extended to cover the general fleld of foreign policy. It was evidenced under the eminent and firm leadership of Secretary Byrnes in the negotiation of the peace treaties, five of which are now being signed. It was evidenced by the appointment and the speedy confirmation of Senator Austin, a Republican, to represent our Nation off- cially in the United Nations organization. It is apparently surviving the present diffi- cult test resulting from Republican control of both Houses of Congress, while the execu- tive department of the Government is headed by a Democratic President. The immediate and unanimous Senate confirmation of Gen- eral Marshall as the new Secretary of State was enheartening. I thought that the an- nouncement last Friday by two leading Re- publicans, Senators VANDENBERG and MILLI- xIN, that they expected to continue to sup- port the reciprocal-trade-agreement policy of our Nation should give strong assurance to the world that we shall continue the bipar- tisan handling of our economic relations with other nations. In yet another respect we have shown clearly that we learned lessons from our fall- ures following the First World War, which is that we have insisted upon the diligent prosecution and punishment of war crimi- nals, both in Europe and in Japan. Many of the leaders have already paid the supreme penalty or received other punishment. Many others are being reached methodically and fairly by our trial tribunals. It has been a source of astonishment to much of the world that these tribunals have been so insistent upon fair trials that there have actually been some acquittals of individuals who were pre- sumed, at least by the public, to have been guilty of war crimes. In many other fields our accomplishments have, in my humble judgment, earned the confidence and respect of the rest of the world. The fact that we went ahead with our plans for granting free- dom to the Philippines must have made it crystal clear to the people of East Asia and the Pacific that we have no imperialistic de- signs in that area. I feel that it will be good policy for us to continue in this fair and even generous treatment of the Filipinos, most of whom stood by us so loyally, by aid- ing them substantially in their heavy task of rehabilitation and by according to their fighting veterans the same kind of consid- eration that we accord to our own returned servicemen, After all, they fought shoulder to shoulder with us in those desperate days on the Bataan Peninsula and they kept up guerrilla warfare throughout the yeurs of the Japanese occupation so as to remain a con- stant thorn in the side of the Imperial Japanese staff. In the case of the reorganization and de- mocratization of Japan, which by the way is the only place where our American genius for organization has been given relatively free rein, we have made such great progress that even we ourselves have been astonished by it. In the case of our relations with many small nations on this side of the earth, not only in Latin America but likewise in our dealings with little Iceland, with the Danes in Greenland, and elsewhere, we have shown a willingness to be fair which, I am sure, must have impressed all of the small nations of the earth. We have seen Great Britain, the na- tion to which most of us look as our mother- land, begin the long and difficult task of straightening out her imperial relations and recognizing the fact that many of her for- mer dependencies desire to be independent and are entitled to their freedom. Great Britain is withdrawing from Egypt. She has assured Burma that she may be free, either within or without the Empire. She has of- fered relative freedom to India, and the di- vided races of that great and unhappy land are even now striving to work out the govern- mental machinery under which they may practice self-government. Only the future will disclose how important a part in the reaching of these difficult decisions by Great Britain has been the British desire to retain the friendship and sympathy of the United States. Many difficulties still lie ahead, but the point is that we have made real progress, and I think that we should take comfort from that fact, and work on with redoubled vigor to solve the vexing problems, some of the most difficult of all, which still lie ahead, par- ticularly the reaching of full understanding with Russia. While all this progress has been made, we have done one more thing which marks a complete departure from our path following the First World War, in that we have not abandoned our leadership in military experi- mentation but have gone ahead in a pains- taking way to continue to develop the weap- ons of modern war so that the rest of the world may see that we do not intend to again become weak or defenseless. The experi- ments with the atom bomb at Bikini, the continued work with jet-propelled planes which are now traveling at almost supersonic speeds, our continued experimentation with rockets and with planes and missiles which are guided by remote control, the announce- ment of our work in developing the means for bacteriological warfare—all of these well- publicized steps have impressed the world with the fact that we expect to remain strong and they are also constant reminders of the fact that modern warfare and any war of the future has for the human race such ter- rible power of destruction that all peacefully inclined men must do their utmost to build a stable framework upon which war will be A541 avoided and world peace attained and pre- served. While we have thus been moving toward peace in our international activities, more slowly and more painfully than we had hoped but nevertheless surely and perseveringly, it has become increasingly clear that there are domestic problems which require prompt so- lution if we are to preserve our own strength and self-respect and at the same time con- tinue to enjoy the prestige and opportunity for leadership which we now hold in the minds of other nations. One of the foremost of these domestic problems is that of setting our public financial affairs in order. I have no quarrel with those in the im- mediate prewar years who felt that deficit spending was necessary for us to overcome the greatest depression which the world has ever seen, nor can we question the judgment of those who felt that we must draw upon our every resource in order to win the war, re- gardless of the financial cost. But now, in these days when we are experiencing the best business that our Nation has ever enjoyed and when there is need for every useful article that we can manufacture and every bit of food that we can produce, at such a time us this it seems to me to be an imperative neces- sity that we promptly balance our budget, live within our means, and begin an orderly retirement of our huge national debt which is far the largest per capita that exists in any nation. Our failure to take this step would not only destroy the confidence of our prudent citizens in their Government, and most citizens are inherently prudent, but it would also serve to destroy the belief that is prevalent throughout the world that our Na- tion is the strongest financial power in the world and has the ability to manage its pub- lic business in such a way as ta conserve and enhance our strength rather than to devour it. Our potentiality for leadership in the quest for permanent peace is very definitely at stake in this matter. To me it is encouraging to note that so many of our leaders in both parties are adding their voices to the voice of your dis- tinguished senior Senator who so long has been calling for sounder business manage- ment in our Government and for better handling of our fiscal affairs. The convic- tion that this problem must be solved is found in the leaders of both of our national poltical parties. President Truman had al- ready gone far in the direction of pruning the budget before January 8, when the new Congress met. Since that time it has be- come increasingly apparent not only that a majority of both parties are insisting upon the effecting of large economies in govern- ment, some of which may be passed on to the individual taxpayers, but also that this policy follows the conviction of the great body of our citizens throughout the Na- tion. The States in general had had an oppor- tunity to learn this lesson during the war years, and most of them emerged from the war in the strongest financial condition of their history. In view of the number and size of their postwar problems, it seems rea- sonably certain that the States will insist upon prudent and economical handling of their public business. The Nation is just now having its chance to take this same step, and I think it is reasonably clear that it will take the step and will restore the former strength and prestige to our national finan- cial structure. As a second domestic problem which de- mands attention I mention the necessity of returning to the States and local govern- ments and to the people many of the powers which have been taken away from them either because of war necessity or otherwise and which can better be administered by State or local agencies. We do not, of course, fear our National Government; it is only one of our hands functioning to serve us in those fields where a National Government can best
A542 serve. Our other hand represents State and local government, serving us in the fields where local government can best serve. It has been axiomatic in our Nation since its very beginning, and I hardly think I need to make this point in the Old Dominion State, that that government is soundest, most economical, most serviceable, and most dem- ocratic which is kept as close as possible to the people who are served by it and who finance ite activities. That axiom of govern- ment is just as sound today as it was in the days of the founding fathers, and I think I can see in the utterances of many of our leaders of both parties and in the present attitude of the general public an insistence that we return to sound fundamentals of democratic government and to the preserva- tion of States’ rights. The recent return of the Employment Service to the States is a step in the right direction. The fact that the people of 13 of the States have seen fit to send their wartime governors to the United States Senate—a phenomenon which has not been equaled in 8 long, long time, if ever—is an indication to my mind that the general public expects @ reversal of the trend toward further cen- tralization of power in Washington which has been manifest during the last generation. The wartime governors, individually and col- lectively, on many occasions were forced to stand up for the rights of their States to function as soundly run units of Govern- ment. There are other indications, which I could mention of this trend, which I think is important, for the National Government is going to have a terrific burden of its own if it lives up to its obligations of leadership for peace amongst the other nations of the earth and of proper handling of the problems of government which are truly national and which are increasing as science creates more and more activities which cut across State lines. There is still another domestic problem which I think calls out for early attention, both for our own sakes and for the sake of maintaining our leadership in the quest for world peace, and that is the need for prompt and effective handling of the difficulties growing out of industrial disputes and work stoppages, particularly in our vital indus- tries. I do not think that any intelligent American would change, if he could, our established doctrine that neither men nor money can be forced to work, and that col- lective bargaining shall always be emphasized as the first and preferred method of ap- proach. Nor do! think any intelligent Amer- ican wants to abandon the progressive course which we began in 19338, providing for the handling of labor disputes through public machinery of quasi-judicial character. It would be unthinkable to return to the old cutthroat days when labor and indus- try fought out their quarrels with every sort of violence while the public looked away and hoped for the best. But it has become increasingly clear that the legal machinery set up under Federal law to handle labor disputes has not functioned either fairly or effectively and that our labor laws must be so revised as to give equally fair treat- ment to labor and industry and so as to always keep in first position the safeguard- ing of the interests of the general public. Many of the abuses which have come into being under the too often one-sided admin- istration of the labor laws must be brought to an end. The leaders of both political parties recognize the pressing need for solv- ing this problem and its solution ts even now being laboriously and conscientiously attempted by Congress on a nonpartisan basis, as the insistent effort for new labor legislation cuts squarely across party lines. Surely the public has, whenever the chance was given, expressed itself in favor of ure gently needed amendments of the present law. It is my definite conviction, based on what I see and hear at Washington and on my belief as to what is the attitude of the publio generally, that strong and effective action will be taken by the present Congress. Such action in this domestic field is funda- mental, as I see it, to our retention of the confidence of our own people and the re- spect of other nations of the earth. And 80, on this date almost 18 months after VJ-day, it seems rather clear that wherever we turn we see clear evidence of the fact that our Nation has doggedly set about the doing of its full part as a recognized world leader in winning a permanent peace which has be- come decidedly more necessary to al] man- kind than it has ever been before. In the fleld of international relations we have ac- complished a great deal and we have done s0 through a bipartisan effort which bids fair to continue and which is a marked departure from our course of action following World War I, or at any other time in our Nation's history. In the field of domestic readjust- ment, in safeguarding and strengthening our Government at home so that it may continue to have the confident loyalty of all Americans and the high respect of all other peoples and nations of the earth, we have done much and we are even now in the course of other activities which bid fair to be completed in the near future. Most thinking Americans realize that we have embarked upon the greatest effort that has ever been made by our Nation or, for that matter, by mankind. And yet the stakes are so high that we dare not give to this effort anything less than our full strength, our greatest wisdom, and our continued zealous service. It is my hope and prayer that this greatest of all free people will persevere in its present effort to make this single objective—the attainment of world peace—ite big and continuing task throughout the long years of patient, hard work which must lie ahead. We know that certainly no other people or nation have it within their power to lead successfully to the attainment of this supreme prize toward which the hearts of men, women, and chil- dren all over the world have been turning for countless centuries. May we of America, by our dedicated effort, bring it to pass that our own Nation with its incomparable citizenship and its unsurpassed material resources shall be the means through which the blessings of permanent peace may be attained for all mankind. Retirement of Ralph K. Davies From Public Service EXTENSION OF REMARKS HON. CLARENCE F. LEA OF CALIFORNIA IN THE HOUSE OF REPRESENTATIVES Wednesday, February 12, 1947 Mr. LEA. Mr. Speaker, under permis- sion granted by the House, I place in the Recorp a resolution adopted by the Na- tional Petroleum Council on January 21, 1947, in reference to the services of Hon. Ralph K. Davies in directing operations of the Government as to the production and supply of petroleum for military purposes during the war. On December 80, 1946, the Petroleum Subcommittee of the Interstate and For- eign Commerce Committee of the House, of which the members were Clarence F. APPENDIX TO THE CONGRESSIONAL RECORD Lea, chairman, Lyle H. Boren, Oren Hare ris, John B. Sullivan, Charles A. Wolver- ton, Pebr G. Holmes, Carl Hinshaw, and Clarence J. Brown, filed its final report recording the activities of the Govern- ment and the petroleum industry in the supply of its oil and oil products for military and civilian purposes during the war. The facts therein recited give a remarkable story of accomplishment. So many industries made such notable contributions to the success of the war effort that I am loathe to give any one of them the highest honor of all. I believe, however, that no industry made a more essential or successful contribution to winning the war and the saving of human lives than the petroleum industry. Hon. Ralph K. Davies, Deputy Petro- leum Administrator for the Petroleum Administration for War, performed a de- voted service of marked ability in organi- zation, leadership, and securing coopera- tion of the industry and the Government in this gigantic effort. During the war the Allied and neutral nations, outside of Russia, produced 7,500,000,000 barrels of oil. Over 75 per- cent of this came from American sources. It may help us to visualize the extent of this accomplishment if we realize that to transport this vast volume of the total production at one time would require 20 trains of tank cars, each completely en- circling the globe. Mr, Davies, who has now retired from public service, in his work of organizing and directing this vast effort, gave an ability and patriotic devotion which has merited the tribute paid him in the reso- lution adopted by the National] Petroleum Counci] on the 21st of January, and which resolution is as follows: Whereas Ralph K. Davies, as the first Direc- tor of the Oil and Gas Division of the Depart- ment of the Interior of the United States, has now successfully completed the initial organ- ization of that Division, and through the creation of a National Petroleum Council blazed a new peacetime trail for governmen- tal and industrial cooperation in the public interest; and Whereas despite having every right and personal reason to leave the public service after more than four grueling years directing all of the major operations of the Govern- ment in relation to the petroleum industry throughout the Second World War, Ralph K. Davies remained at his post during the difi- cult first year of peace both to fulfill com- pletely his promises to the petroleum indus- try to end wartime controls when hostilities were ended and to launch what is confidently expected to be the beginning of a new era of Government-industry cooperation for the welfare and security of the Nation, ita people and all branches and segments of the petro- leum industry; and Whereas now that his great tasks have been completed, Ralph K. Davies has announced his return to private life: Now, therefore, be it unanimously Resolved by the National Petroleum Coun- cu in meeting assembled in the city of Washington on this 21st day of January 1947, That this council hereby records its very great appreciation for the public service ren- dered by Ralph K. Davies to the Nation and the entire petroleum industry in organizing and creating a partnership between the Gov- ernment and the petroleum industry; and be it further unanimously
APPENDIX TO THE CONGRESSIONAL RECORD Resolved, That this council express to Ralph K. Davies its unstinted confidence in his integrity, intelligence, leadership and never-failing devotion to duty. Nomination of David E. Lilienthal EXTENSION OF REMARKS or HON. JOHN J. SPARKMAN OF ALABAMA IN THE SENATE OF THE UNITED STATES Friday, February 14, 1947 Mr. SPARKMAN. Mr. President, I ask unanimous consent to have printed in the Appendix of the Recorp an edito- rial from today’s New York Times, en- titled “Mr. Lilienthal’s Training.” There being no objection, the editorial was ordered to be printed in the Recorp, as follows: MR. LILIENTHAL'S TRAINING When President Truman was trying to find a competent Chairman of the United States Atomic Energy Commission he turned to Chairman David E. Lilienthal, of the Ten- nessee Valley Authority. His reasoning was sound. TVA was the biggest civilian peace- time entzrprise the Federal Government had ever undertaken. It was a training ground for a bigger enterprise. What do we want of the AEC? We want it to be nonpolitical. Under Chairman Lilienthal (as under Chair- man Arthur E. Morgan and Chairman Har- court A. Morgan) it has been absolutely non- political. We think the case is proved that this is why Senator MCKELLAR does not like Mr, Lilienthal. No politics, no patronage. We want AEC to be efficient. Under Mr. Lilienthal TVA has mastered the Tennessee River with dams, built transmission lines, acquired 700,000 customers, made contracts with 138 municipal and cooperative systems, increased the average residential use of elec- tricity in its area to 50 percent above the national average. TVA is a success. We want AEC to control the dangerous uses of the split atom. We do not want it to set up a great centralized power. We do not want it to stifle business enterprise. Under Chairman Lilienthal, TVA has stuck to the policy of decentralization. No law, except the law of falling water and the laws of elec- tricity, chemistry, and physics, has been im- posed upon the Tennessee Valley. Local initiative and local enterprise have been en- couraged, not stifled. Great businesses have entered the valley since TVA came in, or have grown from smaller businesses. Hundreds of little enterprises have started and flourished. We want national security. TVA has given that, too. During the war TVA power fed into an interconnected system from the Great Lakes to the Gulf of Mexico, It fed the aluminum mills, the chemical factories, the airplane factories in the valley itself. It fed the Oak Ridge atom plants from the genera- tors of dams constructed in world-beating time. This was one kind of security, And no secrets—especially no secrets about the great atom fission plants—leaked out. This was another kind of security. Mr. Lilienthal would not say that he alone, or chiefly, was responsible for TVA’s modera- tion, good sense, efficiency, democratic poli- cies, patriotism, But he would have had to bear the blame if these qualities had been violated. If politics is not the determining factor in the decision now facing the Senate, he will be confirmed, and so will his four associates and their general manager, Carroll Wilson, Nomination of David E. Lilienthal EXTENSION OF REMARKS HON. WAYNE MORSE OF OREGON IN THE SENATE OF THE UNITED STATES Friday, February 14, 1947 Mr. MORSE. Mr. President, I ask unanimous consent to have printed in the Appendix of the Recorp an editorial en- titled “The Attack on Lilienthal,” pub- lished in the New York Times of Febru- ary 12. There being no objection, the editorial was ordered to be printed in the REcorp, as follows: THE ATTACK ON LILIENTHAL Senator WHERRY, of Nebraska, who has be- come majority whip in the upper branch of Congress by virtue of his party's victory in the last election, has announced that he will vote against confirming the Presi- dent's appointment of David E. Lilienthal as Chairman of the Atomic Energy Commis- sion. “Friends of Senator Tarr” are quoted as saying that he will do the same. Senator Brrioces, of New Hampshire, is out in opposi- tion. And there is now speculation in Wash- ington as to whether a major controversy may not develop over the ratification of an appointment which seemed only a few days ago to command all but unanimous approval. What is the reason for this sudden change? Senator WHerry’s argument is that this vastly important position in the Govern- ment should not go to any man about whom “a shadow of doubt” can be raised. But it is clear enough that this nomination would have been sent from the committee to the Senate long ago except for the opposition from the unyieldingly bitter senior Senator from Tennessee, KENNETH MCKELLAR, who has fought Lilienthal for years over the question of political patronage at TVA. The character, the loyalty, and the special ability of this particular nominee to handle this particular job have been endorsed by trusted leaders who are in a position to know both the man and the nature of the job. They have been endorsed by Dr. Vannevar Bush, wartime director of the Office of Sci- entific Research and Development, which initiated the whole project of the search for the key to atomic energy. They were en- dorsed yesterday, and warmly endorsed, by Secretary of War Patterson, who also knows something of the project and the problem. The charge that TVA employed many Com- munists while Mr. Lilienthal was in control of its activities has been exploded on the evi- dence of former Representative Joe Starnes, of Alabama, who was chairman of the sub- committee of Congress which investigated this very charge under the all-seeing eye of Mr. Dies and found it false. There remains the accusation that TVA is a Government monopoly and that Mr. Lilienthal served as its director. This much is true. But the work of the Atomic Energy Commission is also to be a Government monopoly, and a very tight one, and the efficiency of Mr. Lilienthal at TVA speaks for itself in the record of achieve- ment of that mammoth organization, It is difficult to avoid the suspicion that the battle over Mr. Lilienthal’s appointment was as good as ended last week until some Republicans thought they saw in the slow- motion tactics of Mr. MCKELLAR an oppor- tunity to make political capital at the ex- pense of the administration. If that is a fair appraisal of the situation, it should be coupled with a fair warning that in that way lies danger for a party newly come to power on Capitol Hill. A543 Nomination of David E. Lilienthal EXTENSION OF REMARKS OF HON. GEORGE D. AIKEN OF VERMONT IN THE SENATE OF THE UNITED STATES Friday, February 14, 1947 Mr. AIKEN. Mr. President, I ask unanimous consent to have printed in the Recorp an article appearing in to- day's Washington Post which has a bear- ing on the subject of the confirmation of the nomination of David E. Lilienthal. It is entitled “Grudge Fight,” and is writ- ten by Marquis Childs. There being no objection, the editorial was ordered to be printed, as follows: WASHINGTON CALLING (By Marquis Childs) GRUDGE FIGHT While the question of the confirmation of David Lilienthal is important as an issue of immediate policy, it is even more important as a symbol. So much of the confusion and conflict of our time adheres around it, It cuts 80 many ways. On the political side, it puts an important segment of the Republican leadership in the strange position of following the lead of vin- dictive Senator KennetH McKe.iar. Senator KENNETH WHERRY would have it otherwise, but the facts speak for themselves. It was McKELar’s grudge fight, abetted by the Hearst-McCormick-Puatterson press, that set this policy. The Republicans who follow along are merely saying, “Me, too.” Except in a glancing way, the core of this controversy has not really been touched on. Behind the noisy clamor over communism is a struggle to get all power production back into private control. Not Lilienthal, but the Ten- nessee Valley Authority is the real target of this attack. Back of that is an even more Significant triangle of conflict. Private control over atomic power is the objective of a little group who, if the whole story could be bared, would be seen to be inspiring the fight against Lilienthal. That helps to explain the otherwise inexplicable anger with which cer- tuin Senators turned on Under Secretary ot State Dean Acheson when he went before the Atomic Energy Committee. Their anger was directed at Acheson for releasing the Acheson-Lilienthal report, which recommended nutting control of atomic energy under an international au- thority. The group that helped to draft that report included distinguished scientists and businessmen who worked under the chuir- manship of Lilienthal. They concluded, in effect, that this power was 80 overwhelming it could not be left to the exploitation of private interests. Private competition would inevitably mean private monopoly. And a monopoly of that kind would finally be a dictatorship. Under the plan they proposed, atomic power would be available to private business just as TVA power is available at a low cost to private business throughout the Tennessee Valley, It was TVA power which made pos- sible the expansion of the private aluminum industry and the production of more air- planes by private firms than the world had ever dreamed possible. TVA is grounded in a natural resource, in the rivers that run to the sea. In the same way, atomic power derives from the very stuff of life and from the complex knowledge and skills of thousands of men and women, Incidentally, the atomic power project that is
A544 @ going concern today cost $2,000,000,000 of the taxpayers’ money. It would be interesting to be able to identify those who are exploiting the attack on Lilienthal. They, of course, keep dis- creetly in the background. They know how to employ the technique of the smear and the irrelevancy. For example, the irrelevant, trivial complaints that came years ago from A. BE. Morgan, a former member of the TVA Board. These complaints were shown to have been without any substance whatsoever. Yet Morgan is brought back before the congres- sional committee, and the old jealousies and rivalries are aired once again. One thing this controversy demonstrates is the way in which communism can be used to distract and divert us. It can condition decisions that should be made on the basis of what ts best for us as a nation. The reality of communism is one thing, as we learned—or should have learned—from the espionage case in Canada, where the matter was handled with dispatch and efficiency. But the hysteria provoked by the smear is something quite different. Hysteria can cor- rupt our decisions so that we act in fear and not in reason. The probability is that Lilienthal will be confirmed. If he fails of confirmation, then the possibility of finding other civilians who would be willing to submit to this form of Indian torture is slight. That raises still another point. The shadow of stalemate between a Republican Congress and a Democratic Chief Executive has already fallen across this critical year. If the next 18 months are to be given over to futile wrangling, then our position and prestige before the world will rapidly vanish. At times you have a little of the feeling that it was at this point in the movie that you came in. Perhaps the film of the twen- ties is to be run off again, but faster, much faster, this time. America’s Foreign Economic Policy EXTENSION OF REMARKS HON. IRVING M. IVES OF NEW YORK IN THE SENATE OF THE UNITED STATES Friday, February 14, 1947 Mr. IVES. Mr. President, recently in Rochester, N. Y., Mr. Eric Johnston de- livered an address which is most perti- nent in its bearing on international economic affairs and in its analysis of and in the way it treats this fleld of economic relations. It is so important that I think it should become a part of our Recorp, and I therefore ask unani- mous consent that it be printed in the Appendix of the REcorp. There being no objection, the address was ordered to be printed in the Recorp, as follows: One of the big question marks before the world today is this: “What is America's foreign economic policy?” If that question sounds dull, let me assure you the subject is far from dull. It’s real, it’s vital, and it’s here before us now. Within the next few months we must give our answer. America and 18 leading com- mercial nations will gather at Geneva in April to try to work out a mutually bene- ficial program for world trade revival and expansion. This will be the world’s first postwar trade conference. This meeting lacks the glamour, the fan- fare, the public interest of the conference in San Francisco where the United Nations was born. Yet this meeting will have a vital effect upon the course of our postwar economic life. And it means more than that—it is tightly bound in with the whole scheme to insure a peaceful world. We are the host at the Geneva Conference and the world is looking to us for construc- tive economic leadership. We have decisions to make—vital decisions that affect every American. Are we going to continue our reciprocal-trade policy? Are we going to make new concessions to countries which make new concessions to us? Are we really pre- pared to take the necessary measures to pro- mote freer international trade? The questions which I raise are the ques- tions which were put to me when I was recently in England. My British friends knew I was a Repub- lican and they wanted to know what Repub- ican policies were going to be. You must remember, gentlemen, that in the last 14 years England hasn't seen very many American Republicans. I suspect it will see a few more from now on. Our friends over there have long memories. They wondered whether the Republicans would plant a thick hedge of new, high tariffs around America; whether the history of a quarter century ago would repeat itself. They reached down in Davy Jones’ locker and dredged up the Smoot-Hawley Act and the Fordney-McCumber Act. They asked whether those old Republican-authored tariff laws were really dead or just in cold storage. I couldn't answer those questions then. I can't answer them now. I can’t speak for the leadership of the new Congress. As a Republican, I know what I would like to see. AS a businessman I know what I would do. I’d like to see our reciprocal-trade program continue. For the continuation of an American re- ciprocal-trade program will determine whether we shall have world economic co- operation or economic chaos. It will de- termine whether we shall have international trade expansion or international trade stag- nation. But the United States alone cannot assure the success of the Geneva Conference. If the British are worried about our foreign economic policy, so are we worried about Britain's economic policy. And that goes for the rest of Europe, too. The most disturb- ing sign on the international horizon today is the tendency in many countries to go back to the self-defeating doctrine of economic nationalism, There is a large and alarming sentiment in England against Britain’s traditional policy of freer trade. This takes two forms: one is a move for higher curbs on imports and the other is a move to tighten the system of trading preferences within the Empire. If this trend grows it will dim the chances for success at Geneva, and it will enormously weaken the position of those in America who advocate freer trade as the keystone of world recovery and world peace. . I should like, therefore, to put a frank question to the British, in the same spirit as they asked questions of me: Is Britain prepared to join with other na- tions in lowering the massive dam of bar- riers, quotas, and restrictions that impedes the natural flow of commerce? This is not an academic question. It is pertinent and real. Britain today has some pretty stiff barriers against foreign products. Because of my association with the motion- picture industry, I am naturally familiar with the restrictions which Britain imposes on American films. We, in America, have none against British or other foreign films. Yet, on the eve of the Geneva Conference, what is occurring in Britain with respect to film restrictions? There is great, and fre- quently unfair and abusive, agitation to im- APPENDIX TO THE CONGRESSIONAL RECORD pose even greater restrictions on the showing of American pictures. I must remind our friends abroad that they can’t expect America to make all the concessions. America alone can't give the world freer and expanded trade. But let us not use the statements of some of our British friends as an alibi for the revival of economic isolationism in this country. And that goes for all of us. Two years ago at San Francisco, the com- munity of nations laid the foundations for Political cooperation. Under the horrible urgency of war, it was universally recognized that unless this step was taken civilization could not survive. In a reversal of its traditional policy, the United States joined with all its heart and soul in the construction of the United Nations. We worked hard to create the United Na- tions. We've worked even harder since to make the idea work—and we're making progress. We know the American people are willing to share world-wide political responsibility. We are making a contribution to peace. Our foreign political policy is bipartisan and nonpartisan. The elephant and don- key, hitched side by side, are pulling to- gether. We have discovered that we get along best in the world when we deal with foreign political affairs as a united people and on & permanent basis instead of shifting our course with each change in political power here at home. We have learned that we cannot play politics with international peace. When our representatives talk in the United Nations, they know and everyone else knows they have the American people behind them. At home, those same spokesmen are Democrats or Republicans. In the halls of the United Nations they are just Americans interested in peace. So we have faith in the United Nations. ' But, gentlemen, let me give you this warn- ng: The temple of the United Nations will be a hollow structure in a world of want, hun- ger, and misery. Geneva may, therefore, be as important as San Francisco. You can't have political cooperation without economic cooperation. Without one, the other will collapse. The most compelling condition for peace is the revival of normal trade. The best environ- ment for peace is a prosperous world. What, then, can the Geneva meeting ac- complish to turn us away from a world of economic stagnation and chaos? In the first place, 1t can do in the economic order what San Francisco did in the political or- der. It can contribute to world economic cooperation by practical, joint agreements to reduce trade barriers. With this decisive step it can start the work of trade recon- struction. It can halt at once the disturbing trend back toward economic nationalism and isolation. It can establish rules and conditions under which goods and commodities may start flowing in the normal channels of commerce between nations. It can revive the princi- ple that commerce between countries should serve the economic needs of the countries involved and not be employed as a weapon for political purposes. In pinning our hopes on the Geneva meet- ing, we must not expect too much. We must not anticipate that it will bring about immediate world prosperity any more than the United Nations can assure the immediate ushering in of permanent world peace. Geneva simply marks the turning point which will determine the future course of world trading policy. It will determine whether we go forward or backward. We must not assume that reciprocal-trade pacts constitute the panacea so eagerly
APPENDIX TO THE CONGRESSIONAL RECORD sought by mankind. They are nothing of the sort. They simply represent a workable formula for helping to solve a very vexing problem, They involve the kind of give and take on all sides without which any kind of international understanding is impossible. Now we come to another question. From the standpoint of our own self-interest, this is the most important question of all. What good are reciprocal-trade pacts to the United States? shall try to answer this as simply and as honestly as I can. During the recent global war, we built up in this country the greatest production plant the world has ever known. This plant can produce at least half as much again as we ever produeed before. Now we face a supreme task. We have created this gigantic mass-production ma- chine, but mass production needs mass mar- kets, both at home and abroad. That is true of us. It is true of every other industrial nation. What I am saying is that American pros- perity depends in large measure on a high level of world prosperity. The reverse is also true. Britain and other commercial nations need a prosperous America as a market for their goods. Each nation has a stake in the prosperity of the other. That prosperity is dependent on an expanding trade. Since the Middle Age., trade among the nations has been the expansionary force in the econ- omy of each. That force has been dynamic, That force has made jobs and built cities. That force has made whole industries. It has lifted liv- ing standards. It has brought luxuries to doors where only poverty camped before. Through the ages, the story remains the same. The merchants and the people of the China seas and the merchants and peoples of Europe had their first taste of real pros- perity through interchange of goods and services, History teems with the struggle of man to reach the Indies. Trade, indeed, butlt more than industries and cities. The pursuit of trade found continents—and built nations. That is the history of trade. The future is vastly more important and promising. A nation today which attempts to live by itself economically is the modern version of the hermit in the cave. He sought the cave to escape from it all; perhaps he sought it through some misguided sense in self- reliance. But his life in the cave was neither comfortable nor complete. He had inde- pendence, perhaps, but he was dependent on scanty rations; he had a high degree of in- dividualism, but a low standard of living. The simple moral is just this: Self-sufi- ciency today inevitably leads to lower living standards. It is just as important to tell what re- ciprocal-trade pacts are not as it is to tell what they are. This whole business of America’s foreign-trade policy is so beclouded by confusion and distortion that it could easily founder on the rocks of public mis- understanding. These pacts are assailed by critics on the right and critics on the left for totally dif- ferent reasons. The fear has been expressed, and I think honestly so, by a great many people that the p of these agreements is to tear away the last vestige of America’s tariff structure. The charge is made that the basic purpose of the Geneva meeting is to force free trade upon the nations of the world, especially upon America. That charge is based on unreality and it has absolutely no basis in fact. Such a course would be unthinkable. It would be as absurd to tear down our whole tariff structure to promote world trade as it would be to scuttle the Army and Navy to promote world peace. No responsible person has any such insane goal in mind. The sole purpose of the Geneva meeting is to work out a sensible policy that will pro- XCIII—App.——35 mote greater exchange of goods and services without injuring the internal economy of this or any other nation. There is another charge, pressed with equal vehemence. Its basis is less honest. This is the stale old tale about dollar diplomacy— now transformed into the high-sounding epithet of American imperialism. ‘This is the charge that the United States is forcing its trade and ita dollars upon bankrupt nations in order to control their political destinies. T have no patience with that charge and I have no hesitancy in calling it what it is. It is a lie. It ts an unworthy accusation brought against this country for unworthy motives. I hope that you in this audience and all other Americans will not be timid in meet- ing this baseless accusation. America has no apology to offer for its efforts in world re- construction. Not in the spirit of boasting, but in the spirit of truth, we are justified in telling the facts. Suppose we review them. This Nation sought no territorial gains from the recent war. It has not sought repa- rations from prostrate enemies. In a sense, it is paying reparations by helping the finan- cial rehabilitation of the German and the Japanese peoples. It has made a loan to a former enemy country—lItaly. It contributed heavily to the support of UNRRA. It has played a fair and decent part in every organ- ized effort of the nations to stimulate post- war reconstruction, I know of no other instance in history where a nation has contributed so hand- somely and so unselfishly to world recovery after a great war. That is not a record of American imperial- ism—that is a record of humanity of which every American may be proud. Those who advance the charge of Ameri- can imperialism know its falsity just as well as you and I know it. But they have a pur- pose in making it. If they can choke off these efforts at international trade revival, they can isolate capitalism in America. And the isolation of capitalism in America happens to be their goal at this moment. They fear that a revived Europe may turn its face away from statism to assume its rightful place in the community of free nations. As a Republican, I sincerely believe that this issue of reciprocal trade provides the supreme issue for my party. There may be more spectacular issues before this present Congress, but there will be none more im- portant. I believe that a return at this time to the outmoded high protective tariff policy would be disastrous for the country. I believe that such a policy, adopted now, would repay a whirlwind of economic disasters a few years from now. The theory of economic isolation is simply unthinkable for the greatest creditor nation in the world. The Republican Party is rightly looked upon as the conservative party of the coun- try. It is a striking fact that it was given the reins of power at a time when almost the entire world was marching steadily toward the left. There is no need of disguising the fact— the left-wingers are in power in Europe be- cause the conservatives fell down on the job. These conservative groups failed to move with the times, they lost touch with the people, they insisted on conserving every- thing in the old order, whether good or bad. They bungled a large part of Europe into socialism or something worse. The price paid for their stubbornness is almost beyond comprehension. They lost, not a battle, but @ continent. But conservatism in America draws its strength from a system of capitalism which benefits all the people. We want to keep that system and make it even more respon- sive to the popular need. We want to keep it as other peoples may wish to emulate it. As the majority party of the country, the Republican Party's role now changes from A545 one of opposition to one of leadership. In evidence of this new leadership, I hope the Republican Party will embrace a reciprocal- trade program. It should not be a grudging, half-hearted acceptance. It should be a full and hearty acceptance of a program which affords the best chance for a flourishing for- eign trade. ‘We have now come to the critical stage of postwar readjustment. In America, we are determined upon peace. And we know that we cannot maintain here an oasis of prosperity with the rest of the world in a desert of despair. That gives us a big stake in the Geneva conference. It is not a partisan stake. It is an all-American stake. That's why we need a united foreign eco- nomic policy just as we have a united for- eign political policy. Our American delega- tion at Geneva will speak with greater force and authority if it has the joint backing of both parties. It must speak with the clear, decisive voice of all the people. It must speak the voice of America. Tribute to Hon. Ralph E. Flanders, of Vermont, by Hon. William Benton EXTENSION OF REMARKS or HON. GEORGE D. AIKEN OF VERMONT IN THE SENATE OF THE UNITED STATES Friday, February 14, 1947 Mr. AIKEN. Mr. President, on Janu- ary 17 the Committee for Economic De- velopment gave a luncheon in New York in honor of my distinguished colleague the junior Senator from Vermont [Mr. FLANDERS]. At that time a tribute was paid to Senator FLANDERS by Assistant Secretary of State William Benton, and I ask unanimous consent that the re- marks of Mr. Benton on that occasion be printed in the Appendix of the RECORD. There being no objection, the re- marks were ordered to be printed in the ReEcorp, as follows: We are gathered today to honor RALPH FLANDERS, of Vermont. In my early work with Paul Hoffman in setting up the CED, he said, “RALPH FLANDERS is the one man in the country with the back- ground, the leadership, and the rare qualities of mind and temperament for the role as chairman of CED's research committee; with him responsible, our research program is bound to succeed.” Ra.pH FLaNnpErs’ whole life had trained him for that assignment—he was the right man, in the right place, at the right time. Others may match his skill as an engineer or may rival him in his famed improvements and inventions on lathes and screw machines. There are other businessmen, with not in- considerable prestige, who have never seen Vermont, and there are even others who match his firm allegiance to the Republican Party. But there is no other in the business community, known to me, who combined so many qualities fir this particular assign- ment—including breadth of vision and depth of mind, patience and tolerance, and a rare skill based on tact and humor as a presiding officer. RatPH PLanpers is one of the best-educated men I know. I once asked him whether this was because he had spent his life in Spring- field, Vt., where he had had time to read— and to think—and both the time and the courage to write. Yet he wears his learning
A546 lightly, like a service chevron on his sleeve. I remember once, when one of the CED econ- omists remarked, ‘“‘We have arrived at a di- chotomy.” Mr. FLANDERS instantly rapped the gavel and said, “Just a mfnute. I don't want any more words like that to whizz by me.” RaLPH FLANDERS’ character has been the hallmark on CED research, which has helped give it a reputation for integrity and objec- tivity unparalleled in the history of American business. You must live in Washington to Giscover what a priceless asset this is to the CED. It is my honor, Senator FLANDERS, a8 you give up your role as the leading intellectual statesman of New England’s business com- munity, and merely become one of the 96 senior statesmen of Congress, to present to you this scroll on behalf of the CED board of trustees. However, in your fifty-odd vears of reading in Vermont you may not have mastered the CED version of Old English script. I shall therefore translate this for you: “Whereas RALPH EDWARD FLANDERS, busi- nessman, banker, engineer, author, econo- mist, statesman, and one of the founders of the Committee for Economic Development, has been selected by his fellow citizens to represent the State of Vermont in the Senate of the United States of America; and “Whereas the duties and responsibilities of the high office that he has assumed through public mandate will require and receive from him the fullest exercise of his outstanding abilities; and “Whereas the acceptance of this public of- fice and the obligations inherent therein have compelled him to relinquish his duties as vice chairman of the board of trustees of the Committee for Economic Development and as chairman of its research and policy committee; and “Whereas his wise guidance, impartial chairmanship and sincere devotion to the general public welfare have contributed uniquely to the development of CED policy recommendations and research reports de- signed to assist in the solution of both tran- sitional and long-range critical problems confronting the Nation; and “Whereas his broad knowledge and ex- perience, his mature wisdom, human under- standing and mellow humor have clarified many an issue, enlightened many a long and wearisome discussion and earned for him the admiration, respect, and affectionate re- gard of each and every one of his associates: Therefore be it “Resolved, That the board of trustees ac- cept with profound regret his resignation from these two offices and tender to the Honorable RALPH EpwarD FLANpERS their deep appreciation and sincere admiration for his outstanding contribution to American en- terprise and the American public; and fur- ther be it “Resolved, That they extend to him their warmest wishes for his success in his new duties as a Member of the Senate of the United States, knowing that the qualities of heart and mind that have made it a pleasure and a privilege to work with him will continue to be effectively exercised for the future welfare of the people of our Na- tion.” Mr. Senator, the most crucial problems in world history await you in Washington. Never was there a man better prepared for the role you are about to assume. The country needs you, the Senate needs you, and there are even some of us who will agree that the Republican Party needs you. So to you, RALPH FLANDERS, I propose a symbolic toast: To your courage, and to that fidelity you bring to your trusti—and may those with whom you will be working in Washing- ton listen to you and learn from you, and share your humility and partake of your pen- etrating insight—as have all of Us who have been privileged to be associated with you in the Committee for Economic Development. The Palestine Decision EXTENSION OF REMARKS HON. ALBEN W. BARKLEY OF KENTUCKY IN THE SENATE OF THE UNITED STATES Friday, February 14, 1947 Mr. BARKLEY. Mr. President, I ask unanimous consent to have printed in the Appendix of the Recorp an editorial from the Washington Post of February 6, entitled ‘Palestine Decision.” I do not necessarily adhere to every statement in the editorial, but it is a very thought- ful editorial, and I ask that it be printed. There being no objection, the editorial was ordered to be printed, as follows: PALESTINE DECISION To Mr. Bevin, now that both the Anglo- Arab and the Anglo-Jewish conferences have ended in deadlock, goes the responsibility for producing a unilateral policy for Pales- tine. It is a fateful assignment. Hitherto Mr. Bevin has not been noted for his aptness in handling the situation in Palestine. He is reputed to feel that a delay is in order until the 7-day notice that the British admin- istration in Palestine has served on the Jew- ish Agency has expired. The due date is next Monday. By then the Jewish Agency is expected to cooperate with the administra- tion in rounding up the terrorists. But, if Mr. Bevin expects this cooperation, he is as lacking in imagination and a sense of reali- ties as the men on the spot in Palestine. The Jewish Agency, no matter how much it condemns the terrorism, will clearly not be put in the position of turning spy and in- former. It is too close to the terrorists in opposition to British rule in Palestine to do any such thing. The cooperation asked by the British would be equivalent to a sponsor- ship of civil war by the Jewish Agency itself. Nor is it likely that the counterterror insti- gated by the British will browbeat the Jewish Agency into acceptance of the kind of federal state under British administration which goes under Mr. Morrison’s name and which Mr. Bevin is said, more or less, to have in mind. Both the Morrison plan and intimida- tion have run their course, and the line of true statesmanship must be sought elsewhere. It would seem that the wise thing would be to outline a policy without regard to what is going on in Palestine. Palestine is the kind of problem the unmanageability of which has increased by delay and indecision. Partition, it has long been our view, is the only possible device for application to Pal- estine, and even that, in the circumstances of present tempers and passions, would have to be imposed. As long ago as 1937 it was laid down as just by the British Peel Com- mission. But what could have been done then without much difficulty, and even in 1945 with a good chance of success, is now, admittedly, full of danger. Arab intran- sigence has thriven on British indecision, and many Zionists have become whole hog- gers. Yet the nettle must be grasped, not in terms of a phony partition such as was represented by the Morrison plan, but in those of the Peel Commission. Only a par- tition admitting of a viable state for Jewish Palestine will do—that is to say, one giving an autonomous Jewish Palestine access to the highlands of Galilee and the empty space of the Negeb. The parallel between Palestine after this war and Ireland after the last is becoming uncanny. Repression in Ireland created a terrorist movement which went from oppo- sition to the British to opposition to parti- tion. It developed so alarmingly that the British Government simply had to turn to conciliation, as they will have to do in Pal- APPENDIX TO THE CONGRESSIONAL RECORD estine, if only to allay the growing discon- tent on the part of the British people, who are impatient over police commitments out of their straitened circumstances. Unfortu- nately, as Emerson said of British colonial rule nearly 100 years ago, “Whenever an abatement of their power is felt, they have not conciliated the affection on which to rely.” This proved to be the case in Ireland. It may, alas, happen in Palestine, for ex- tremism has fed on itself for too long a time to take kindly either to the British or to partition. The only British hope of sow- ing seeds of tranquillity is to come out with @ declaration for a just partition, and let time strengthen the inherent wisdom and Justice of it. A just partition, it seems to us, could not fail to evoke American support, as was implicit in the President’s statement to Ibn Saud on October 4. Such a statement of British policy would pave the way for American aid, especially in river-valley de- velopment, which is the only means that will promote the healing that one day will have to be undertaken. Peace With Brotherhood EXTENSION OF REMARKS oF HON. ELBERT D. THOMAS OF UTAH IN THE SENATE OF THE UNITED STATES Friday, February 14, 1947 Mr. THOMAS of Utah. Mr. -President, I ask unanimous consent to have included in the Appendix of the REcorp a poem entitled “Peace With Brotherhood,” written by James Patrick McGovern, and published in the Christian Advocate No- vember 21, 1946. There being no objection, the poem was ordered to be printed in the REcorp, as follows: PEACE WITH BROTHERHOOD (By James Patrick McGovern) Christ, the atom bomb, the wandering Jew, Like trumpets sounding at walled Jericho, Warn today of mankind’s final throe, Save peace with brotherhood be born anew. Again the martyred Jew is doomed to roam— Now at the nadir of his destiny Since Christ, his kin, gave life to set man free Upon high quest as prophet but at home, International by choice and fate For fifty hundred years in war and peace The Jew as man, not Jew, sought pain’s sur- cease— The citizen where freedom ruled the state. Like Christ by love, or atom bomb by fire, Gentile and Jew will live or light earth’s pyre. Liberty, Equality, Government for the People EXTENSION OF REMARKS or HON. ROBERT A. TAFT OF OHIO IN THE SENATE OF THE UNITED STATES Monday, February 17, 1947 Mr. TAFT. Mr. President, I ask unan- imous consent to have printed in the Ap- pendix of the Record a speech which I delivered in Charleston, W. Va., on Feb- ruary 12, 1947,
APPENDIX TO THE CONGRESSIONAL RECORD The PRESIDENT protempore. With- out objection, this very excellent speech will be printed in the Recorp. Pellow Republicans, we meet tonight to commemorate the birthday of the first Re- publican President, a man whose principles have inepired the Republican Party from that day until now. A hundred years ago Abra- ham Lincoln entered national politics and sat in the House of Representatives through the years 1847 and 1848. He had come up the hard way. He was a country lawyer in a provincial town. With little knowledge of national problems, yet he had thought through the fundamental principles of Amer- ican Government. Those principles stood out more clearly then—as they stand out more clearly today—in the small towns and rural districts where they had not been com- plicated by the economic forces of large- scale commerce and manufacturing. His service in Congress for the brief period of 2 years attracted little public attention. He did not hesitate to oppose the Mexican War, although it was exceedingly popular in his home district. He voted to restrict slavery, although it might have made impossible any further advance in national polities. No one could doubt his courage or his determina- tion to express the opinions which he had formed after careful consideration. His session in Congress undoubtedly gave him a picture of national affairs which im- proved his judgment in future years. Cer- tainly by the time he became President, he had a comprehensive philosophy of govern- ment which colored every act. No one has ever stated that philosophy more clearly than he. Conditions have changed since his day, particularly in the economic field, but the Rep-iblican Party atill holds those principles as a torch to lead it through the tangled problems of the modern economic and bu- reaucratic forests. It seems to me that in the Gettysburg Address Lincoln summed up the basic principles of the American Govern- ment: That the Nation was “conceived in liberty,” that it was “dedicated to the prop- osition that all men are created equal,” and that the ultimate purpose of free and equal government was that it should be “for the people.” Liberty, to me means first, liberty of the individual to choose his own occupation in life and to live and conduct his business as he sees fit so long as he does not thus inter- fere with the liberty of others; and, second, the liberty of communities to govern them- selves, to decide what the scope of their gov- ernment activities shall be and how their children shall live and be educated. Equal- ity means equal opportunity to get started in life, and equal justice under law before impartial . tribunals. Government for the people means that the Government shall abhor special privileges and shall be con- cerned with the welfare of all the people no matter what their economic status. REPUBLICANS HAVE TAKEN OVER Our problems today are more complicated than the problems which Congress and Lin- coln faced in 1647. There are six times as many people. Production has increased far more than that and achieved infinitely far more complexity. In our desire to solve some of these economic problems, and improve material welfare, we have wandered away from our basic principles without solving the new problems. In the last 14 years the in- dividual has been the forgotten man and his liberty has been no concern of any New Deal planner. Every program has been based on arbitrary government action, with unlimited power backed by unlimited money. Every law has been drawn to avoid any re- course to the courts which could assure jus- tice. While there has been constant weep- ing for the plight of the low income groups, the p 8 for social security have been ineffective and badly administered. Many sound precedents and many accepted prin- ciples have been swept away, and nothing has been substituted in their place. It is the task of the Republican Party to work out a sound solution of present-day prob- lems within the basic principles which, for more than 150 years, steadily built this coun- try to be the freest—and the most power- ful—country in the world today. What are the basic problems today, and how can they be worked out within the prin- ciples of Abraham Lincoln? The first problem and a practical one is to keep our economic machine running at a speed high enough to support a constantly increasing standard of living, but not at an artificial and inflated speed which can only be maintained for a brief period and then produce maladjustments leading to defla- tion. We have had recurrent economic de- pressions in this country causing hardship and poverty from 1800 on. Perhaps we know enough about economic forces today to pre- vent or alleviate those stoppages. This is not an emotional problem. Our joint commit- tee on the economic report proposes to make a complete study of the causes of depres- sions and try to formulate the principles on which government can act, and can urge the people to act. In the long run, better ma- chinery can help, but the result will depend even more upon the ability and the good sense of those who are administering the Gov- ernment at the time. The firet basis for Government action must be sound finance. We have not balanced the Budget for 16 years. The Republican Party proposes to see that it is done in the next fiscal year. The President has submitted a budget calling for the collection of taxes in the huge sum of 639,000,000,000, and the ex- penditure of $37,000,000,000 for Government expenses for the year beginning the first of next July, the third postwar year. This is four times the expenditures of the Govern- ment just before the war. If we add local and Federal taxes, it imposes a tax burden of $€50,000,000,000 a year on the American people, nearly one-third of the national income. That means that every man and woman is working one day in three for Government. Since it is impossible to distribute the burden with perfect equality, it falls with crushing force on some industries and some groups of people. It discourages incentive and expansion. Such a tremendous burden in time of peace must lead gradually to the socialization of industry. The President says the expenses cannot be reduced. The Re- publicans propose to reduce them by four and one-half to six billion dollars this year and more next year. With this reduction it will be possible to lighten the tax burden by a sum equal to 20 percent of the personal income-tax yield, or $38,500,000,000, and still devote two or three billion dollars to the reduction of the national debt. This program I believe to be essential. We cannot have free expansion of our commerce and industrial system if it has to carry the burden of a government taking one-third of the national income. Since there will be a deficit in the fiscal year ending July 1, 1 do not believe there should be any tax leg- islation which will result in a lesser income to the Government before July 1, 1947, thereby increasing the Truman deficit of 1947. The program I have outlined will not be easy to carry out. The very people who ap- plaud our reduction of the over-all expendi- ture will descend upon Washington later and insist on more expenditures in the field of their own special Interest. For years the people have been taught that the Federal Government is an inexhaustible well of dol- lars, Every local official in the United States and every foreign prime minister seems to think the Federal Government is a lavish spendthrift. We all have inflated ideas of Government spending ability. The man on the street doesn’t distinguish between a mile lion and a billion. Even learned Congress- Adi? become confused. There must be no increase in the national debt, but rather a steady decrease if we are to maintain sol- vency, and on the solvency of the Govern- ment and the people's belief in its solvency depends the successful operation of our eco- nomic machine. The Government has not balanced ite Budget for 16 years. Before it tries to regulate other people, it certainly must put its own affairs in order. The problem of stability seems to me to rest primarily on a continuing balance hbe- tween competing forces, a balance between taxes and Government spending, a balance between wage levels and price levels, a balance between savings and consumption, a balance between agricultural and industrial income. Wages and prices must be in proper rela- tionship. If the price level rises faster than the wage level, buying power ceases and pro- duction falls. If the wage level rises above the price level, there is no profit in business operation and all expansion, at least, ceases. Such a general increase in all wages and sal- aries as was promoted last year by the ad- ministration could only create confusion, higher costs and higher prices, threatening a continuing inflation which throws many other factors, like white-collar salaries, and the cost of living, out of line. Such a general and unjustified increase as occurred last year brought about no increase in real wages, because it forced prices up about as mUch as wages. Today the best we can do, apparently, is to stabilize wages and prices at about 50 percent over prewar. Of course to the extent that we can in- crease the productivity of the worker, we can increase wages without increasing prices. I hope that we may create a special committee after the passage of our labor bill, to study the whole problem of employer- employee relations and their effect on pro- ductivity. Today profits have been high in many industries, low in others. Where there are profits, they ought to be reflected immediately in a reduction in prices rather than a further increase in wages. Only thus can the whole people get the benefit. I am confident that competition is rapidly being restored to a point in which it will force such a@ reduction in prices where consistent with adequate production. A stable economy depends also on equality between agricultural income and industrial income. The Republican Party has 2 years in which to develop a permanent agricultural policy, designed to promote an average price level for agricultural products comparable to the prices which have to be paid for in- dustria] products. It is not an easy task, but many solutions heretofore proposed are before us for consideration. While government has to take an interest in these various relationships, it cannot undertake a detailed regulation of commerce and industry, or of prices and wages, and hope to maintain our principles of liberty. We must have a proper incentive for men to put their brains, their energy, and their money to work with an opportunity for gen- erous reward. We have built up this coun- try and created jobs by inducing men to go out and start new industries, to develop new ideas, to put a few men to work and then hundreds and then thousands. We have seen during the war how Government con- trol checked incentive, and finally broke down after the war through the very in- ability of any mind to deal from one central point with the vast detail of economic ma- chinery in a nation of 140,000,000 people. The removal of business control] had a far less upsetting effect on production and stability than did the general increase in costs pro- moted by Government planning interference in 1946. The Government has always exer- cised a control over credit inflation in its various forms. It can exercise an influence in many other fields without detailed regu- lation and intereference with the freedom of enterprise,
A548 A few war controls remain. They should be eliminated as rapidly as possible, but it may be necessary to carry over a few where great war shortages still persist, notably sugar, rubber, and rents. A great increase in the price of these articles and in rents might not completely upset the price level, but it would be a disturbing factor. In the case of sugar and rubber the increased price would go, for the most part, to foreign countries. If it is found necessary to continue rent control, it must be adjusted to give an ade- quate return to landlords on the money they have saved and invested in houses and apartments. One of the phases of economic activity which has always been the subject of Gove ernment action by statute, tariff or other- wise, is that of foreign trade. Of course a substantial foreign trade is highly desirable, though the foreign market is not a large percentage of the domestic market. Our foreign trade, however, is certain to be sub- stantial regardless of tariffs if our domestic economy is prosperous—witness imports of more than $4,000,000,000 in 1929 when tariffs were almost at their peak, the highest peace year in our history. The question we have to consider is how far we shall promote foreign trade beyond its usual scope by re- ducing tariffs so that foreign industries can undersell the products of established Ameri- can industries. Without any change in our present tariff rates, we will have a substan- tial trade. Probably three or four billion dol- lars’ worth of merchandise will have to be im- ported because we do not produce it here. American tourists are likely to spend a billion dollars a year in travel. American loans and investments abroad are likely to average a billion dollars a year for many years. So, without further tariff reduction, we would be making available some five or six billion dol- lars to foreign nations to come and spend for goods in this country. This is in addition to some $20,000,000,000 made available by authorized loans and advances under the Bretton Woods agreements, the Export- Import Bank, and the British Loan agree- ment, Should we further lower our tariffs? The whole tariff question, it seems to me, is a question of degree. Tariffs should permit the importation of goods in fair competition with American production. They should not be so high as to amount to an embargo, but they should not be so low as to depress seri- ously any existing American industry able to provide a substantial part of American con- sumption. Perhaps by free trade we might increase our imports several billion dollars and perhaps ultimately increase our exports by the same amount but the additional ex- ports in such an amount, perhaps one per- cent of our total production, seem to me a small gain compared to the danger of throw- ing thousands of men out of work and de- stroying established industries. I should be opposed to a return to con- gressional tariff making with the inevitable logrolling which accompanies that process, I should favor delegating to a commission the power of fixing tariffs within wide statu- tory limits, with a definite rule that no tariffs should be reduced to such an extent as would do serious harm to American in- dustry supplying a substantial part of the American demand for its product. We can- not afford to give our competitors the finest machinery made on credit to be used by workmen receiving less than half the wages paid in this country; and then permit the resulting product to be sold at prices to put our workmen out of their jobs. American costs are substantially higher in many fields, and foreign workmen are willing to accept a standard of living far below that which we maintain in this country. The action of the Tariff Commission could well be supplemented by reciprocal trade agreements if the additional reductions made are found by the Tariff Commission not to violate the same standard. Nor do I see any reason why the most-favored-nation principle should apply to every reciprocal- trade agreement. We may well wish to help out a special situation where economic dis- tress would otherwise result without giving the same advantage to the entire world. The trouble with the present Reciprocal Agreements Act is that it places complete dis- cretion in the President to make any reduc- tions without any standard whatsoever being prescribed, regardless of the effect of such reductions on American industry and Amer- ican standards of living. The present act, as amended in 1945, in fact, permits the President to establish almost complete free trade, certainly a tariff schedule below that of the Underwood tariff which was consid- ered a tariff for revenue only. It is an un- limited delegation of legislative power af- fecting the vital welfare of the country. In short, our first task is to maintain a stable and expanding economy, increasing the standard of living of our people by con- tinually increasing productivity through the most modern methods. But in performing this task, liberty must still be the guiding principle of the Nation. We want no detailed control of prices, wages, or distribution. We are determined to pre- vent any monopoly control by industry which destroys the liberty of economic law and may destroy the liberty of the people themselves. We want no arbitrary control by labor lead- ers restricting the liberty of the individual to work, or upsetting the proper relation be- tween the income of industrial employees, of farmers, and of white-collar workers. In recent years, through the support of Gov- ernment, through Federal] laws, through bu- reaucratic regulations, through court deci- sions, and through the partiality of the Executive, labor leaders have acquired the power to make unreasonable demands and get away with them. The people in the last election showed their clear belief that such powers must be curbed, because they are contrary to liberty and equality, The Republican Party proposes to enact laws which will restore equality in collective bargaining so that neither side may be in the position to make unreasonable demands. I am opposed to compulsory arbitration, be- cause I believe it involves Government wage fixing and destroys liberty. The basis for free relations between labor and employer must be free collective bargaining, equal responsibility, and equality in power. The threats to liberty today from business and labor, however, are minor compared to the threats to Mberty from Government. Government has become the one big monop- oly. Every war power must be eliminated. If any continue in special fields, they must expire in 1948. The President asked for au- thority to continue his powers under the Second War Powers Act if he found a na- tional emergency to exist. The Republican Party has served notice that the day of emer- gencies is over. Government, like all its citizens, must be subject to equal justice under law. It is equally important to restore justice and equality to all individuals and all groups. Hereafter, every man should have his day in court and a fair hearing before an impartial judge. The decision of a Gov- ernment board with a distinct bias toward the Government or toward some protégé of the Government should never again be final. It isn’t as easy today to determine what equality is as it was in the days of Lincoln, but equality before the law is, and must be, the constant goal of the Republican Party. APPENDIX TO THE CONGRESSIONAL RECORD Finally, Republican policy must be deter- mined by Lincoln’s determination that gov- ernment “be for the people.” Lincoln had a profound sympathy for the common man and for the poorest of the common men. He knew what poverty meant. He had a warm heart for every widow and for every unfor- tunate. Our economic welfare, as a whole, depends on the successful continuation and equal operation of the economic machine, but no matter how successful that may be, there will be millions of low incomes and millions of persons, through misfortune or perhaps through thetr own fault, living be- low the minimum standards which we think of as American. I am convinced that the American people believe that a nation as wealthy and productive as this one can pre- vent extreme hardship and poverty, Aid to the unfortunate 1s no new principle in An- glo-American government. We have recog- nized it in our poor laws and in our giving of free medical care in general hospitals and otherwise. Such assistance is primarily the concern of State and local government. But the Fed- eral Government cannot turn its back on the problem. Its financial resources are much greater than the State. It can set an ex- ample and suggest a remedy. It can give the State assistance so that systematic programs may be developed to see that the lowest in- come groups all have minimum subsistence, shelter, medical care, and education. Such programs must not undertake to interfere with the power of the State and local com- munity to determine their own policies and administer their programs. The place of the Federal Government should be only one of advice and assistance. Not only will such a program help the unfortunate parent, but even more impor- tant it can help equalize somewhat the op- portunity for the children of the unfortunate parent. We cannot give equality of mental capacity, but we can hope that every Ameri- can child has reasonably decent home sur- roundings, reasonable medical care and enough education so that he at least under- stands the opportunities which are open to him if he goes further. The Republican Party has a great oppor- tunity. In the principles of Abraham Lin- coln, it finds its aspirations. They will not solve all our problems, but ® constant con- cern for their integrity is vital if America is to go forward along the lines of progress established by our forefathers. This is no turning back to former days. It is a program of progress toward peace and prosperity with- in the eternal principles of liberty, equality, and humanity. Address by Hon. Robert E. Hannegan at Testimonial Dinner in His Honor EXTENSION OF REMARKS HON. SCOTT W. LUCAS OF ILLINOIS IN THE SENATE OF THE UNITED STATES Monday, February 17, 1947 Mr. LUCAS. Mr. President, I ask unanimous consent to have printed in the Appendix of the Recorp an address delivered by Hon. Robert E. Hannegan, Postmaster General of the United States, at a testimonial dinner given in his honor by the postal supervisors of New York at the Waldorf Astoria Hotel in New York City, on February 6, 1947,
APPENDIX TO THE CONGRESSIONAL RECORD There being no objection, the address was ordered to be printed in the Recorp, as follows: Postmaster Goldman, Mayor O'Dwyer, dis- tinguished guests, and friends, it is always dificult to speak the language of the heart. We feel so much more than we can say. The kinship of loyalty and service is so warm and close in the Postal Department that this gathering is like the thanksgiving of a large family. In these warm respects you pay to me there is really a greater testimonial to your own unselfish devotion and dynamic striv- ings for postal progress. Here is proof that our work goes beyond dollars and directives. Here is proof that our postal family main- tains an active partnership between our headquarters and field staff. All ranks are represented here tonight. All ranks share with me in the glory of our achievements—and the promise of our fu- ture. Deep down in all of us is the guiding be- lief that no man can better his own organt- gation without bettering himself. Your own er—in this the largest and best-run post office in the world—is a prime example of that. Postmaster Goldman has a passion for constructive action—and under- standing of his fellow workers. He has known no clock nor calendar in performing the thousand and one duties that fill his day. New York City knows his worth. The Na- tion—through President Truman and the War Department—has honored him with the Medal of Merit for his outstanding zeal in moving matis to the troops. He said then as he would say now that any reward for his achievements belongs in greater part to you men and women who worked with him in the Government's greatest business or- ganization and the Government's proudest service. That's the keynote—service—that mott- vates all our activities. As postal supervisors, you have been in the front ranks in providing the good sense and good will that puts heart into Government enterprise Now, as makers of the peace and pioneers of the future, we are making new plans and facing new horizons. All of us want the postal service to make progress in a way that sets the pace rather than following the leader. We accept our right and responsibility of leadership to serve the new opportunities of business, to help in rolling back frontiers of our social and cultural life, to reach the far places of the world more quickly with life-giving mes- sages and materials. We want to widen the pathwaye of com- merce and communication, whether in the air, on the land, or over the seas, by plane, rail, ship, or truck. We have come to realize that our pioneer- ing in the air has paid rich dividends in new business and, more importantly, new hopes for the human family. We know that if rightly developed the air-mai) service will maintain prosperity at home and help to fortify peace throughout the world. In the past year we have created ambitious programs to increase the use of air mall both at home and abroad. And for tomorrow we are mapping plans for even further advance- ment. Last October 1 we undertook the far- reaching objective of carrying domestic air mail at 6 cents an ounce, “Wings for & Nickel.” Many were quick to say that it was a dar- ing step; others in the face of rising costs and wages termed it reckless. I never shared their dim view of the future of 5-cent air mail. I recommended that reduction because I believed that we could realize important col- lateral objectives without loss of revenue. I tried to impress upon my associates in Wash- ington and you on the front lines in the field that nickel air mail could succeed only if the volume showed a sharp rise. I knew we could get that volume only if our message got home to the American people. I never had the least doubt that the fundamental principle was correct. Time and again American business has proved that more production plus more vol- ume lowers the unit cost and spreads the availability to more users. Our problem then—as it is now—was to persuade greater numbers of people to use our product. Again we turned to the experience and initiative of good American business. We used advertising as the vital spark in bring- ing our message to the people. The Post Office Department is not only a group of producers—it is also a group of salesmen. The figures on that air-mail advertising program tell an eloquent story. In Septem- ber of last year 4,850,000 pounds of dumestic air mail were dispatched. In December there were 8,100,000 pounds—almost double. I know that the December volume may rep- resent a great deal of Christmas mail—but month after month there has been a steady gain. Millions have heard the message of “wings for a nickel.” They know now that they can send mail by air—better, faster, cheaper. We have not stopped our promotional ac- tivities. To speed the Nation’s commerce, to insure its defense by improving our avia- tion fleet, and to expedite mail between our people, however remote the community, we need greater air-mail volume. I am relying upon the same ingenuity and rcsourceful- ness that sparked our pust efforts to keep us alert and active in expanding air-mail volume today and tomorrow. We sought to pioneer new concepts in the dispatch of our international mails, In lowering the international rates last Novem- ber, we found when the December reccipts were in that our volume had almost doubled. Here again Christmus mails played their part. But it is encouraging to note that the inter- national mail leaving New York for the first half of January is 50 percent greater than for the first half of last October. When our postal department took the lead in lowering international rates, what did other countries do about it? Since we have reduced our international tates, 22 countrics have followed our lead: Already, under an arrangement with Switz- erland, air parcel post from that country fs being received here. We are notifying other postal administrations throughout the world that we stand ready to receive their air parcel post. These are some of the vital preliminary steps which we are taking to clear the way for one of our major operations—sending American parcel post abroad by air. The day before yesterday, I sent a petition to the Civil Aeronautics Board, asking that a reduced and special rate for air mail ship- ment of newspaper and news magagines to foreign countries be granted. In my round-the-world flight with Gael Sullivan, I witnessed the news-hunger of many of our own nations and thousands of our friends in other nations—but the news ‘was sometimes months old when they got It. While I hope within 6 months to see for- eign air parce] post a reality—we shall pass, within a few weeks, an historic milepost in our postal progress, with the inauguration of the foreign air letter, to be sent anywhere in the world for 10 cents. A549 This atr-letter sheet, similar to the V-mall, has attracted the interest of hundreds of business houses and thousands of postal users who want a convenient, swift, and cheap means of getting their messages to foreign lands. The benefits of this air letter to our people will be tremendous. Because of the uniform size and weight—and the large volume—140 of them to make up a pound—they will pay their own way in De- partment revenues. All this is on the asset side of the ledger * © © and what of our Habilities? The Post Office is confronted with a huge and mounting deficit. The postal pay in- creases of the past 2 years will have added close to a half billion dollars to our expendi- tures by next year. President Truman, in his budget messuge, in referring to the postal deficit, directed that a study be made with a view to postal rate revisions. This we are now doing—but this, I assure you—neither President Truman nor the Con- gress wants any rate revision studies sent to the Congress that would jeopardize the se- curity of employees or impair the Kind of service we are now giving the people of this Nation. The final judgment on rate revision will rest with the Congress—and while our fact- finding may reveal certain inequities, I know that Congress will not reach any hasty deci- sion in setting forth their ideas on postal rate revision. We are committed to a program of helping to balance the budget and reduce our na- tional indebtedners—but the people of this Nation never expect and never want “too little and too late” from the Post Office. New conditions mean new challenges. We will never be satisfied with the sterility of the status quo. Our morale for the great tasks ahead is the highest in our history. Never in our time will the spiritual assets of loyalty, in- itlative, and coopcration be more needed than now. Our deeds must match our drcams—our performance must equal our promise. But it is not only in the performance of the post office that we may take pride and feel the satisfaction that comes of a job well done. Look at America. Take stock of this Na- tion today, only 2 years aftcr the greatest conflict the world has known. What do we find? We see a Nation firmly and courageously assuming her rightful leadership in the quest of the world for lasting peace. We see the foundations for that peuce solidly laid, the structure rising, stone upon measured stone. We see an orderly return to the wavs of peace, a reconverted economy, a free people at work, And through these years of ordeal by fire, we sce the American way preserved, a system that we can hold as an example and as an inspiration before the groping world. It is this broad perspective that I ask you to view with me today. Satisfaction? More than that—for we can- not appraise; we cannot compare; we cnn- not hark back to those gaping pitfalls that lay in our Nation’s path only a short time ago without a deep sense of gratitude. But who has kept us on our course? Whose the firm and skillful hand at the helm of this Nation that has guided it past the haz- ards? Whose the courage to stand up be- fore all the adversities that loomed ahead to see America through this crisis? Two years ago Harry 8. Truman became President of the United States. He was a man of proved abilities. Through his 10 years in the United States Senate, he had shown consistently sound judgment.
A550 But above all else, Harry Truman had in him & granite courage and the quiet quality of good will. This he possessed, and this he has retained. To those overwhelming responsibilities that suddenly descended on him in April of 1945, he applied himself with a level-headed wisdom that was already known to us, with courage and determination, and with a co- operative spirit toward his fellow citizens. You may recall that at the time he took over as President, there was a great buzz of speculation. Would Truman go to the right? Would he go to the left? Would he travel a middle course? These were shallow questions, raised by shallow minds. The facile bandying about of such oversimplified labels showed how lit- tle these questioners understood the man who had become President, For with Harry Truman, it was never a question of right or left. As he saw his re- sponsibility then, as he sees it now, his choice lies not between right and left, but only between right and wrong. From the course that is best for America as he sees it—and that is the only “right” that Harry Truman knows—he has never deviated. And he never will, Immediately after assuming the Presi- dency, he was confronted with an important decision—the use, in war, of the atom bomb. But the lives of hundreds of thousands of American boys were at stake. And Harry Truman did not hesitate a moment in his decision. On the night that Harry Truman took his oath, he told America the San Francisco Con- ference to adopt a United Nations charter would be held on schedule. And from that time on, the story of world peace was a story of personal courage, of integrity, of statesmanship on the part of President Truman. Three months after he became President, he went to Potsdam to confer with the chiefs of state of our allies in war. And at that meeting it was largely through the states- manship of Harry Truman that a sound co- operative relationship, looking toward the end of the war and to the peace beyond, was established among the great powers. Thereafter, almost daily he was faced with decisions of grave importance, crucial to America and crucial to the world. And day after day, the challenge was met, the decision made. The series of mighty strides may well make us proud as we look back on them. Here are some of the steps that were taken to alleviate the sufferings of a world at war and to rule out forever any recurrence of that horror from the future of a world at peace: An international bank and world monetary fund were set up. A loan was made to Great Britain. Aid was given to the starving peoples of Wwar-devastated areas. The reciprocal trade agreements were ex- tended. A Secretary of State was appointed—James F, Byrnes—who faithfully carried out Presi- dent Truman’s policy of firmness, patience and good will, When the post of Secretary of State became vacant recently, a statesman—one of the greatest of his time and of all time, a true soldier of peace as he was a skilled and gal- lant man of war—was appointed, Gen. George C. Marshall, We in America know that a world yearning for peace has not yet completed its task. We know there are dangers. We know there are men who seek to undo the good work that has already been done. But we know, too, that in this crucial hour, while the citadel is rising, a sentry stands on Buard, clear-eyed and alert. We know that George Marshall is on the job. And that citadel of the world's hope is safe, In meeting the all but superhuman task of bringing our economy through an orderly change-over to peace, and in surmounting other vast domestic problems, President Tru- man has exercised the same courage and in- tegrity, the same quiet quality of good will, as he has shown in the field of foreign policy. It was right, as Harry Truman saw it, to stand by the men who came back to us after defending their country at war. As a result, we now have the GI bill of rights and a whole program for assistance to veterans. As a precaution against abuses, control of atomic energy has been retained in civilian hands. Back in December of 1945 he urged upon Congress a merger of the Nation's armed forces. In this he was vigorously opposed. But the President was convinced of the im- provement in defense and the greater econ- omy whieh his plan meant. Courageously, he stuck to it. Today, those who formerly opposed him have become convinced and have accepted the basic proposition of merger. A plan, agreed upon by both the Army and Navy, is now before Congress. Under the President’s leadership, we have moved ahead with other big strides for the public welfare and protection. For the development of atomic energy, and as a precaution against abuses, a Federal commission has been established. The con- trol of that commission is in civilian hands. It was a decision of Harry Truman that maintained rent control, protecting millions of American families against profiteering in a time of housing shortage. In the aftermath of war, it was inevitable that the country would face pressures for higher prices and higher wages. This meant labor-management disputes. Almost daily, the President was plagued with these problems, But he met them head- on, and in every situation he squared his de- cision with his own concept of what was best for America. That came first. And no special interest, no strong-arm tactic, was allowed to prevail against it. Harry Truman was looking out for—and taking action for— the good of the whole people, Tcday, with the President's personal example before them, labor and management are finding their way toward agreement. We have emerged into a time of good will. A few weeks ago the President sent to Con- gress three messages—on the state of the Nation, on the economic prospect, and on the budget. In these messages, with the same sound judgment, the same spirit of American team- work that have marked his every official act, he has outlined his policy in such matters as taxes, Government expenditures, labor legis- lation, employment, military security, hous- ing, and protection for the small business- man and the farmer. In his decisions on all these matters, he has chosen to be guided, not by right as dis- tinguished from left, but by right as distin- guished from wrong. Addressing himself to a Congress domi- nated by a majority of the opposition party, the President sald: “The power to mold the future of this Nation lies in our hands—yours and mine, joined together. * * * On some domes- tic issues we may, and probably shall, dis- agree, That in itself is not to be feared. It is inherent in our form of government. But there are ways of disagreeing; men who differ van still work together sincerely for the common good.” Those are words of high statesmanship, because they are words that put country ahead of everything else. There is no higher form of statesmanship than the simple ac- knowledgment of brotherhood, regardless of party, under a free flag. APPENDIX TO THE CONGRESSIONAL RECORD Time and again the people of this country have seen President Truman's judgments confirmed by the course of events. Only recently we have had several strik- ing instances of this. Consider, for example, his view on taxes. His political opponents, as part of their campaign in the election of last November, promised to end the excise taxes on luxury goods, Harry Truman counseled against abandon- ment of those taxes. Who was right? A few days ago, Congress voted to continue the luxury taxes, and the very men who had promised to repeal them in their election campaign now switched position, and voted to retain them. Or consider the question of a reduction in income taxes. The President's political op- position promised the people to cut income taxes 20 percent “across the board.” The President already has pointed out to Congress the danger of promising a reduc- tion in taxes before making certain that this can be done without unbalancing the Budget. He has opposed any reduction in taxes that will mean failure to reduce the national debt. And he has strongly urged that persons of small income be made the major beneficiaries of any tax reduction, Who was right? Now, we find the Republican opposition weukening in its ill-advised stand. We hear the belated admission that budget-balanc- ing must come before tax reduction. And Republicans, themselves, are attacking the “across the board” feature and urging their own leadership to abandon it. Another great question bearing on this Nation’s future is our commerce with the outside world. President Truman has called the attention of Congress to the proposed organization of nations to promote world trade, and has pointed out that America’s reciprocal trade agreements will be vital to the success of this effort. But economic isolationism is finding its voice again. Within the past few days, a virulent attack has been Jaunched by certain Members of Congress against the reciprocal trade agreements. Who 1s right? Well may we pray that the majority of the Eightieth Congress, for the sake of hu- manity, will accept the advise of the Pres- ident and vote for the trade of the world which is so vital to the peace of the world. To those of the opposition who decide to follow Harry Truman’s better Judgment, we say: “For your reversal of position, for correct- ing your own errors of the past, we have only praise. May you, for America’s sake, always do so. The only difference now between your position and that of the President is that he was right the first time.” More and more, the people of America are confronted with these proofs of the wisdom and foresight of Harry Truman. Now that they see our economy back on an even keel, less than 2 years after the war, now that they realize how many were the obstacles along the road, the people are wondering: How has this come about? Do nations automatically emerge unscathed from a great world conflict: If you think so, look at a map of the world. Try to put your finger on one world power—outside of our own—one great na- tion whose people, whose economy, whose very soul has not been seared and left bear- ing scars for generations hence. America has not won back toward peace and prosperity by resting on her historic laurels or by dropping her destiny in the lap of fate. How, then, has it come about? We have won back, we are winning back, because we have had sound leadership, We
APPENDIX TO THE CONGRESSIONAL RECORD are on our way toward peace and prosper- ity because the leadership of President Harry Truman has been # leadership of integrity and good will, of courage and foresight. It is true that tn the beginning many Americane did not know the abilities of this man who had become President. From the day he took over, voices were raised against him by men long-embittered, men who were blinded by, their own narrow political bias. Without waiting for the test of office, they spoke in belittlement of his stature. They do not do so today. The peopie of America have learned that Harry Truman wears well. At all times when the good of the country was at stake, they have seen him set an example for these critics by rising above political animosities. The bitterness and hate that might otherwise have spread and undermined our strength as a nation, he has checked at the very source. With the philosophy of good will, he has disarmed the haters and the champions of strife and distrust. The world is hungering for more of that kind of leadership. The world needs more statesmen with vision and a firm, unswerv- ing stride. Here m America we shall march on with President Truman toward our goal as a pros- perous people, a strong and secure Nation. We have gone far and fast, but the task of leading us to peace and plenty is not ac- complished in a day nor & year. Until that work is done, we are ready to call upon our President again as the man who has proved himself fit for the job. Amer- fea will give him the support and loyalty that he deserves of us all, through the years ahead. Jim Camp EXTENSION OF REMARKS HON. CLYDE R. HOEY OF NORTH CAROLINA IN THE SENATE OF THE UNITED STATES Monday, February 17, 1947 Mr. HOEY. Mr. President, I ask unanimous consent to have printed in the Appendix of the Rucorp an article written by Kays Gary, a staff writer of the Shelby Daily Star, Shelby, N. C., and which appeared in that newspaper on February 4, 1947, describing the success of Jim Camp, a Negro farmer in Cleve- land County. I wish to place this article in the Recoap because it illustrates what Negroes are accomplishing throughout North Carolina and the South. Jim Camp lives in my own county, and I have known him al! his life. He has risen from the position of an ordinary tenant farmer to the ownership of 785 acres of fine farm land, all of which he has bought and paid for through his own industry, energy, and thrift. His suc- cess is another illustration of the fine treatment accorded the honest and am- bitious Negroes in the South and the op- portunities which are open to them. His last purchase of land was made a few weeks ago, when he paid $23,000 in cash for 226 acres of land which he purchased to add to his total farm of 785 acres. There being no objection, the article was ordered to be printed in the Recorp, as follows: Success Srorny or a Neczo Tenanr PARMER— dm Camp AcQuin§Is ONE OF COUNTY'S Larozs?T Farms py THRtrt, Har Work (By Kays Gary) Fifty years ago in the mind of a tiny, ebony-faced lad there was born the determi- nation to own a plantation in the white Man's world, It couldn't happen in the South—in the middie of the land lashed by the criticisms Of a liberal society for its raciul intolerance— but yesterday in Cleveland County, James Camp, Negro, swung astride his five-gaited horse and began a gallop over a part of a 785-acre farm—all his. 4 DREAM BORN It began in the late 1890's when the land- lord of the boy’s father singled him out as @ favorite and allowed the ragged child to ride on a prancing saddle horse with him on regular treks over the spacious, rolling farm- land. Behind the half-moon grin and sparkling eyes of the youngster was born this Gream—to someday duplicate the success of his first white friend. And yesterday James Camp would give the credit for his accomplishment to the inspira- tion of John Mintz, the white man, to the keen, but humble, support of his wife, Plorence Hardin Camp and to Pranklin Delano Roosevelt. The dogged, determined Gecades of Jim Camp’s labor would not be mentioned by him. Today, it appears, little seems to be Jacking from the original dream. There is the Camp sawmill, the fish pond, the 300 acres of tim- beriand, the 185 acres which this year pro- duced 160 bales of cotton, the 80 acres of gtain, other acres of pasturage, livestock, me- chanical farm devices, and a modern home. Still Jim Camp will be found in the late afternoon building single-handedly a new tenant home—making a total of 23 houses on his land. It 1s all there because a tremendous price was paid in scrimping, saving, doing without, laboring day and night for pennies, buying a scrap of land with the pennies and, with the profits, the buying of another scrap of land. To accomplish the building of this little plantation, James Camp had to run away from home at the age of 19, after he failed in attempts to persuade his father to buy his own farm. He began by splitting cordwood at 35 cents per cord, taking his pay in food from Schenck's store. His next important move was the acquiring of Florence Hardin as his wife, and the two, with three chickens, a wheelbarrow and horse and buggy began the etruggle for independence. Camp and his wife settled closely by Shoal Creek church, near his own home place, and near his present. home site. In the early down he left for labor and returned late at night. His wife found food in molasses and fruit and greens. “Money food” was taboo. Money went for the first down Ppay- ment of 47 acres of land that belonged to the Pink Wood place. Now, rest perhaps? Now, maybe there would be plenty of food? Not yet. The Camps had to buy fertilizer to make their crops the best. That was the process for endless years as small plots were added to the Camp farm— and then bigger ones. A few weeks ago, Camp pulled out a checkbook, a pencil, wrote out a check for $23,000, cash payment in full after a previous @5,000 “clincher” for the largest land purchase to date—226 acres ad- joining his estate. “It's all in one piece,” sighed Jim, “where I can see it.” But this, the story of the acquisition of Jends that put him in the top dozen of in- dividual landowners in the county—white or Ad51 black—ts simply the beginning. It would seem thus far, a story of grasping for him- self, for his wife and son. There wouldn't seem & possibility for any beneficence. But go to the home of James Camp, that modern 13-room structure 6 miles south of Shelby on highway 18. In the kitchen you'll find a little boy who constantly went wrong in Shelby. Jim Camp took him in, taught him to work, and now Jim is to the lad what John Mintz was to Jim years ago. CARPENTERING Ride over to an adjoining plot where a new house ts being butit. There you'll see a grown Negro boy who couldn't get along elsewhere. You'll see him asking James Camp where this ptece fits, where that beam goes, eagerly. He wants to learn the carpen- tering trade, and Camp is showing him. Look 100 yards from the homestead, and you'll see the Camp Negro School, named “Camp” by the county commissioners, be- cause he gave the land, because, in his own words, “My race needs help bad, mighty bad.” Attend the Negro Sunday school nearby, and you're likely to hear the voice of Plo- rence extolling the virtues of principled liv- ing, or a parent-teachers’ meeting where her warning, ‘‘Buy a cow before a car,” will reverberate from the walls of the rooms. Por, man and wife, the Camps believe that if a person, white or black, wents something badly enough, and if it’s right. he can have it, for a price. But the Camps’ leadership isn’t all in preaching. The farm’s available for teach- ing, for cooperation with farm authorities in showing neighboring Negroes how to make the most of the least. At every annual fair the Camp exhibits depict in facts, figures, and charts the means by which a man can truly become master of his own fate on the farm. The living example should be enough. Quiet, modest, fearful any publicity might “make us seem proud,” the Camps showed the reporter through their home. There's run- ning water, automatic heat, modern furni- ture, a gleaming white kitchen. In an ideal, spic-and-span cellar, shelves are lined from fioor to ceiling with canned goods. No meat has been bought by this family—no meat or flour—for 23 years. It all comes from the farm. In the maze of outbuildings and barnyard wander 14 mules—several others are out with the 16 tenant families on his place. There are four milk cows, but right now Jim is in the process of starting his own registered Hereford herd. He wouldn’t hear a price for his giant tractor which has for 8 years roamed the vast tract doing all types of work. He has an- other on the way from the factory. A truck does the hauling work. Jim Camp becomes almost reverent when the name of the late Franklin Delano Roose- velt is mentioned. ‘He did me and my peo- ple a heap of good,” he says, “He showed us a lot of things about how to get along.” For that reason, he supports to the limit the farm programs inaugurated by the late President. The Camps have one son, J. B., now in Agricultural and Technical College for Ne- groes, at Greensboro, studying agriculture. J. B., back from service in Italy, wants his own farm—not his father’s. More than that he wants not 785 acres, but 1,000. He does not bet, but if he should for those who know the Camp blood best—there'd be no one with money to say differently. Young Jim has ridden on the horse with his father. He has listened carefully through the years to his mother. He will buy a cow before a car.
A552 Management of the Debt EXTENSION OF REMARKS HON. FRED L. CRAWFORD OF MICHIGAN IN THE HOUSE OF REPRESENTATIVES Monday, February 17, 1947 Mr. CRAWFORD. Mr. Speaker, the national debt is of growing concern to all of our thinking citizens who are in- terested in the preservation of our Re- public. At the recent annual meeting of the American Coalition of Patriotic So- cieties, the program included a discus- sion of this vital subject and it was my privilege to address this well-known or- ganization. Under the unanimous-con- sent order extended me, I include my remarks on that occasion: Mr Chairman and American friends and fellow citizens, I feel greatly honored. This is a real privilege for me to come here and meet with this group today, because I have been wanting to get better acquainted with you for many, many months, some years, and without dealing with a lot of miscellaneous remarks, I want to directly give you in a few words what I have to present. They may be somewhat heavy following this grand luncheon, but we have here in this group a type of literacy that has come here from different parts of this country, and I can- not afford to let you go away from Washing: ton without getting these thoughts before you Last summer it was my privilege to be in Rome for a few days and I visited with His Holiness, Pope Pius XII. We had a very friendly conversation, the substance of which was this: “You people who have the chance to get out and look around. see what is going on in the world, make these contacts and meet these people that you do meet, and thus have the opportunity to put two and two together, when you return home there will be a very great responsibility upon you to say some things to your fellow citizens who did not have the same opportunity that you had.” That is a philosophy in which I very much believe. In other words, I think that all of us must walk in the light which falls before our feet, and I think it is our responsibility to seek light and to use it, and to spread it wherever we go, and not craw! within our shell and hold back the good things of earth from others who are not quite so fortunate. Certainly this group and this organization seek light, and you walk in it after you get it, 80 1 fee] perfectly at home here with you today. It seems to me that there are three ques- tions in which every American citizen is vitally concerned today, and three questions which are immediately before the Congress. I refer specifically to the matter of material alterations in the several labor-manage- ment-general-welfare laws which we have, such as the Clayton Act, the Norris-La- Guardia Act, the Wagner Labor Relations Act, the Fair Labor Standards Act, the Walsh-Healey Act, and we might go as far back as the Sherman antitrust law. It seems to me that those acts must all be considered by you, by management, by labor, by all interested in the general wel- fare, by the Congress of the United States, by the White House, and by the agencies of Government, as we face this problem or question or program of matertally altering the present labor laws of the Federal Gov- ernment, Another thing that all of us are vitally in- terested in—I cannot imagine anybody in this group not being interested in it—is the question of the revision of the revenue laws as they relate to corporate enterprise, to Capital gains and/or losses, to normal tax and surtax on individuals, to the exemptions and credits allowed our people classified in the different groups. My third point is the question of the man- agement of the present Federal interest- bearing debt. I am not now specifically re- ferring to the question as to whether or not we are going to permanently arrest the growth of that debt; I am referring to the management of the present debt, assuming that it does not grow any more. I think it can conservatively be said that as to how this present debt is managed or mismanaged during the next 25 to 50 years, will determine the effective wage which our people receive, the price level of our homes, of our equities, of our life-insurance poll- cies—that is, the buying power of those— the economic or buying power or value of our savings in whatever form they may be, whether invested in trust funds or in build- ing and loan associations or time deposits in the banks, or in the form of different in- surance contracts. In other words, briefly, the management or mismanagement of the present Federal debt will, in my opinion, during the next 25 to 50 years determine the social and economic status of our people here in the United States. Let’s take these three questions and very briefly deal with them, and if it is agreeable with the chairman and with you, the audi- ence, I will stop soon enough so that we can spend a few minutes here in questions and answers, so if you think of something you want to usk a question on as we go along, feel free to do that. Let me give you a few hitching posts. To start with, referring to the January 16— this month— statement of the Federal Treas- ury, we have a $278,000,000,000 total gross public debt and guaranteed public obliga- tions. We start out with that figure. If we make our chairman here the Secretary of the Treasury for a few minutes, I want to show you what he is up against and what you are up against as citizens of this great country. He has that problem of management. What is that problem, very briefly? In my hand is a broken-down analysis of the debt which shows that within 1 year from last September 30 he has to refinance seventy-four billion five hundred million of that tota) which comes due within 1 year. Let's bring this right down to earth. Suppose you, a family, have a $50,000 debt that the family is responsible for; you have forty thousand of it financed on a 15- to 30-year mortgage and ten thousand in short-term paper that you have got to meet. That would be one problem. But suppose you twist that around and you have $40,000 of short-term paper to meet and only $10,000 financed on a long- term basis, and you are short on income; you can see that last proposition is a differ- ent problem from the first. Our Secretary of the Treasury here has @ certain group of securities aggregating seventy-four billion five hundred million that he must refund or refinance or pay off one way or another, either by refunding oper- ations or by collecting taxes, within a year. That isn’t all. On top of that seventy-four billion five hundred million, he has another €57,500,000,000, representing saving certifi- cates which you, the people of this country, hold, and which are a demand call upon him for dollars at any time you desire to exercise that call, and at any time within 60 days after which you become the owner of a sav- ings certificate you can go to the Treasury and say, “Mr. Secretary, I want my currency,” and he has to hand you the currency if you APPENDIX TO THE CONGRESSIONAL RECORD want it to meet the contractual provisions set forth in that savinge certificate. The sum of those two items subjects the Treasury to a call within 1 year from last September 30 of $132,000,000,000 of refunding operations. Where is he going to get the money? That is a very practical question. He has to meet those calls, if you make the call, and if you hold your savings bonds and do not cash any of them in, he still has to raise seventy-four and one-half billion. That gets into the management of this debt. Let me give you one or two hitching posts on this. When you jump down now into an- other group of securities, Treasury notes, Treasury bonds of short-term duration, we find that between September 80 last and De- cember 81, 1950, our Secretary here must re- fund (including payable on demand paper) one hundred and fifty billion. Now, how is he going to do it? Well, he can help sustain @ tax take-away from you and bring in some of it, provided you can stand the tax burden, but that will be a very small amount of the total because you have only got 1947, 1948, 1949, and 1950. That is only 4 years. If he brought about the balancing of the budget and took 84,000,000,000 away from you each year in excess of the budget needs in the 4 years, he would only raise sixteen billion of the one hundred and fifty required; so he still has a financing problem on his hands, Of course, if you make no demand calls on the Treasury, that will very greatly assist the Treasury in handling his problem. He can resort to the printing press and turn out sheer printing-press money and hand to you, in exchange for those bonds as they mature and let you take the economic con- sequences of such printing-press financing, and certainly the Secretary of the Treasury is not going to advocate that—not this Secre- tary of the Treasury. He can go and reissue, or I should say 1s- sue, new bonds or refunding bonds to be sold—to whom? Why, he can sell the re- funding bonds to you individuals and have you issue a check or draw th. currency out of the bank and bring it to him and pay off that bond, and thereby diminish your buy- ing power as related to real estate or come modities or securities issued by the corporate enterprise of this country, or consumer goods on the market. You decrease your immediate buying power by handing the dollars to him and taking his promise to pay in exchange, and thereby you deflate your momentary buying power or speculative power measured by your bank account or currency in hand. That would be a very constructive step for you, the individual citizen and you, the Sec- retary of the Treasury, to follow. But in the event you, the citizens of this country, do not participate in the purchase of these re- funding issues, and if he brings out refund- ing issues instead of issuing printing-press money, where is his market for the bonds to be sold? Commercial banks, insurance com- panies, savings institutions of different kinds, and Government trust funds, we might say. To the extent the Treasury sells these new refunding issues to the commercial banks, that is, practically speaking, the equivalent of using printing-press money, because as, he says to you, the banking fraternity of this country, ‘You take $10,000,- 000,000 of these new issues and credit my account for $10,000,000,000 and I will start @Grawing checks against that accouunt to- morrow afternoon,” to that extent you, the commercial banks, create $10,000,000,000 worth of demand deposits against which the Treasury begins to draw checks, and he hands them out to people, and as they are trans- ferred into the hands of those people they become buying power. So, I believe this group would go along with me on the proposition that the Treasury should not sell the re-
APPENDIX TO THE CONGRESSIONAL RECORD funding issues to the commercial banks in a manner which brings about increased de- mand deposits, thereby expanding your po- tential inflationary base. I think you will go along with me to the effect that the Treasury, in putting out the new bonds, should do everything that is necessary to be done to get these refunding bonds into the hands of you, the private citizen, thereby evidencing your belief in the purpdses for which this debt was created and your willingness to carry those secu- rities until maturity date arrives, and thereby sustain your Government on a sound eco- nomic basis. What is the Treasury to do? You say, “I will take some more of the Treasury bonds if the Treasury will increase the interest rate on the new issue.” Group (a) here are in- terested in buying the new issues; group (b) here have all the old issues that they can carry. If the Treasury puts out a new issue at a higher rate than similar term bonds of the old issue carry, what do you think will happen to the merket value of the old bonds which this group holds the day the new bond with the higher interest rate goes on the market? The market on your bonds drops to bring your effective interest rate on old bonds substantially in line with the earn- ings on the new bonds. That presents quite @ great difficulty to the Treasurer if the only way he can sell you the refunding issues is through raising the interest rate. That ts one problem. Forget that you are investors and all of you are taxpayers, and here is a §$278,000,000,000 debt. The Secretary of the Treasury says: “If I raise the interest rate on bonds issued by the Treasury, then I have got to raise the tax burden on the people to bring in more money with which to service the debt, which is carrying a higher interest rate, and I haven't got the political courage to do that, so I am not going to raise the interest rates.” But you say: “I am not going to buy the bonds unless I get an increased interest rate. I am going to put my money over in indus- try, expand the plant capacity, increase the machinery, the productive capacity, so that more workers can have more tools with which to produce goods, and thereby bring about greater production of goods, and on the basis of greater per capita production participate in greater income in the way of increased wages and salary.” That throws the burden back to the Treas- urer, and he says, “How am I going to finance this debt—refinance it, if you please?” So you see how that all ties into this ques- tion of the inflation of prices, the inflationary movement, the inflationary forces we hear a great deal about—and which, by the way, are not yet behind us, because it comes back to the question, “How is the Secretary of the Treasury to manage this debt?” Emergency Action Is Needed—Now! EXTENSION OF REMARKS HON. ROBERT F. RICH OF PENNSYLVANIA IN THE HOUSE OF REPRESENTATIVES Monday, February 17, 1947 Mr. RICH. Mr. Speaker, under leave to extend my remarks in the Rrcorp, I include the following editorial from the Potters Herald, of East Liverpool, Ohio, of February 13, 1947: EMERGENCY ACTION I8 NEEDED—NOW ! Present-day conditions in Washington are comparable to the days of Rome when, it is said, Nero fiddied while Rome burned. Briefs, under oath, embodying the protests of hundreds of thousands of American citi- zens, industrial workers, miners, fishermen, farmers, employers, and others were filed last December with the State Department's Com- mittee for Reciprocity Information pro- testing against further reductions in tariff rates on competitive imports. In addition, hundreds of representatives of these American citizens, in January, per- sonally appeared before this same commit- tee, and, under oath, presented substantial reasons why no further tariff rate reduction should be agreed to until ©. study had been made of the effects of the tariff rate reduc- tions already made. There is evidence, we believe, which leads us to the conclusion that these protests and these appeals have fallen on closed ears. The Congress of the United States is now the last court of appeal. The Official evidence, presentea to the Congress by Government agencies, warrants the Congress acting now. It will be too late to act or to go through the motions of try- ing to act after solemn and binding obliga- tions have been entered into with foreign governments wherein the United States has agreed, for a period of some 3 years and 6 months, to permit of the dumping into American markets of competitive imports at total delivered costs, tariff duties paid, which @re less than American costs of production of comparable or competitive goods. America's industrial workers, especially those workers, such as the pottery workers, who are dependent for their livelihood on the production of goods which fompete in Amer- ican markets with competitive products of workers of Other countries, realize that un- leas tariff duties are levied on competitive imports which equalizes the differences in labor costs of production they are deprived of their work opportunities. America's industrial workers realize the value of and seek full employment. We know that we cannot have full em- ployment if competitive imports can be de- livered into our own markets at total costs, tariff duties paid, which are less than the labor costs of production of our products. We are not exclusionists, but we insist that present tariff rates are inadequate. Our contentions are sustained by the official re- ports of the Tariff Commission to the Con- gress of the United States. We do not oppose the entry into America's markets of competitive imports. We do op- pose the entry of competitive goods at total delivered costs which are less than our costs of production. The world has been at war for the past 8 years. During at least 5 of those years there has been little, if any, commercial trading in the accepted meaning of that word. The United States Tariff Commission, in an official presentation to Congress has re- ed: “The economic conditions through- out the world were so disturbed in 1939, as the result of preparations for and actual outbreak of war, that the statistics of United States imports for that year cannot be taken as indicating what would have been the ef- fect of these (tariff) duty reductions under peacetime conditions; the import data for the war years are still less indicative of what would have been these effects,” on competi- tive imports, The United States Tariff Commission has also advised the Congress “that comparative data on wages and productivity for the United States and foreign countries are frag- mentary, and, on the whole, quite unsatis- A553 factory.” “Few studies have been made that furnish an adequate comparison of worker's earnings and productivity in manu- facturing industries between different coun- tries.” The United States Tariff Commission has also officially advised the Congress that: “The approximate average unit value at the factories of the emall amount of medium- priced china made in the United States in 1937-39 was @450 per dozen pieces. The landed duty-paid average unit value of ware of similar grade imported from Japan was 40 percent of that figure ($4.50) and that from Germany and Czechoslovakia was about 60 percent of it.” (64.50). “According to official figures, the average hourly earnings of pottery workers in 1945 was 90 cents in the United States and 28 cents in the United Kingdom. “Japan’s chief competitive advantage lay in her low wage rates. In 1989 the aversge direct daily wage for a 10-hour day was about 50 cents, to which should be added perhaps 10 cents for social benefits.” It stands to reason that the Tariff Com- mission, the agency of Government which supposedly supplies the State Department and those entrusted with the negotiation of trade treaty agreements with other coun- tries, through which tariff rate reductions are agreed to, in view of these official admissions, cannot supply the data which will justify any further tariff rate reductions at this time. The international “do-gooders” of our State Department, temporarily in control of our economic affairs, blandly ignore these findings of the Tariff Commission and the protests filed and the appeals made, and con- tinue their preparations for a meeting in Geneva, Switzerland, in April with repre- sentatives of 18 other nations. There is only one purpose in this meeting. There is no concealment of the intent. It has been well advertised that the purpose of this meeting is to agree to a reduction in tariff rates, irrespective of the merits therecf. There has been nothing said that tariff rates will be maintained or built on the basis that such tariff rates, levied on competitive imports, shall be such as will equalize the difference in the labor costs of production of the different countries. Almost every other country protects its competitive industries by levying tariff duties on the basis of the value of the competitive articles in their own markets. Uncle “Sap” Sam still adheres to the policy of levying import duties on competitive imports on the values of such products in the country where- in they were produced. This system grants to the lower-wage-and- lower-living-standard countries a decided ad- vantage not alone over the products of the United States, but also those produced in the more progressive countries, with higher liv- ing standards, such as England. At this Geneva meeting the United States will be represented by those who considered it good trading to reduce our tariff rates some 15 percent in return for a reduction of some 2 percent in the tariff rates of another country. Of course, it is highly probable that the negotiators for the other country also agreed to enlarge their purchases of Ameri- can cotton at some 4 cents a pound less than the same American cotton is sold to Ameri- can cotton mills for. This 4 cents a pound cotton export sub- sidy is not paid by the American cotton pro- ducers. It is paid out of the Treasury of the United States. Im other words, the taxes paid, by Ameri- can pottery workers, in part, are uscd by our Government officials to promote the sale in American markets of competitive pottery ar- ticles of other countries, as the Tariff Com- mission reported, at delivered costs, tariff
A554 duties paid, of from 40 percent to 60 percent of American costs of production of com- petitive wares. Surely, no one will contend that such im- portations will insure full employment for American pottery workers or will permit a condition wherein the products of American pottery workers will have an equal oppor- tunity of sale in our American markets. We find that despite the official evidence presented to the Congress, that some of our officials contend that nothing can be done before June 1948 when the present law ex- Pires. We are aware, and we believe that the Congress is advised, that the trade-treaty agreements which our State Department in- ternationalists and do-gooders plan to enter into with these 18 other nations will tie the hands of the United States Government for @ period of 8 years and possibly an additional 6 months, from April 1947 to October 1950. Admitting that the present law does not expire until June 1948, and assuming that such law will not be renewed or extended, we believe that we should play fair with the American people and with foreign nations. We contend that Congress can and should now adopt legislation or take action which will, in substance, advise the State Depart- ment Officials, the American people, and for- eign nations, that no tariff rate in any trade agreement will be honored by the Congress which tariff rate does not equalize the dif- ferences in the labor costs of production of competitive American and foreign goods sold in American markets, after the expira- tion of the present law. We believe that the American people, and we know that America’s industrial workers will give very little credit to those who, if they fail the American people now, will, in 1948, claim that they can do nothing to re- lieve the distress of America’s unemployed workers until the trade-treaty agreements entered into in April 1947, expire in April or October of 1950. Surely the majority of the Congress of the United States is sufficiently interested in maintaining full employment for America’s workers to, take such action now as will per- mit them to be in a position to correct, at least in 1948, such reductions in tariff rates as they will find necessary in 1948, Address of Lt. Gen. R. A. Wheeler, Before Red River Valley Improvement Asso- ciation EXTENSION OF REMARKS HON. OVERTON BROOKS OF LOUISIANA IN THE HOUSE OF REPRESENTATIVES Monday, February 17, 1947 Mr. BROOKS. Mr. Speaker, under leave granted to extend my remarks in the Recorp, I include the following ad- dress of Lt. Gen. R. A. Wheeler, Chief of Engineers, before the Red River Valley Improvement Association, February 10, 1947, Shreveport, La.: It was with deep regret last year that I ‘vas forced to forego the pleasure of accepting your cordial invitation to attend the conven- tion of the Red River Valley Association and to participate in the program. I was corre- spondingly glad this year when Congressman Overton Brooxs conveyed your renewed in- vitation, affording me this second opportu- nity. It is delightful to be here, and it is a privilege to address this gathering. For more than a score of years now—since your aasociation was organized in 1925—we have worked together in @ common cause. It has been your purpose, as it has been the purpose of the Corps of Engineers, to con- trol and to improve the Red River system— to transform it from the character of master- at-will of this rich valley, and give to it the proper role of benign servant—a servant of ever-expanding usefulness to the people. The activities of your association in recent years were spearheaded by a citizen whose absence today is noted with deep regret by all of us. I refer to Mr. Claudius M. Dickson, whose death last November closed a career of sterling service to this valley, The growth and accomplishments of your association during the 6 years he served as your presi- dent, bespeak his able leadership in advanc- ing and broadening the trail blazed by his predecessor, the late W. H. Hodges, and other officials who pioneered the work of this association. The expansion of the association to four- State proportions—to include with Louisi- ana, the States of Texas, Oklahoma, and Arkansas, through which the Red River flowsa—was a noteworthy step. The establishment of a four-State plan- ning committee, consisting of the State engi- neers of Louisiana, Texas, Oklahoma, and Arkansas, provides a medium for the closest possible cooperation between Federal and State agencies, and coordination of Federal and State activities. It assures that the State and local points of view are fully repre- sented in any discussion of plans and work to be undertaken by the Corps of Engineers in the Red River Valley. With these achievements of your associa- tion ‘there also t have come a great per- sonal satisfaction to your late president dur- ing his final year in office when the two major objectives in your worthy program achieved tangible recognition. The Congress, in 1946, authorized substantial expenditures for both flood control and navigation improvements in your valley. Mr. Dickson's active interest will be missed not only in this association and in the valley, but also in the offices of the Corps of Engi- neers, where his opinions were highly re- spected, and his vision was greatly admired. The congressional Representatives and Senators from the great are of the Red Riv- er Valley have attained national stature by their vigorous and thoughtful activity in be- half of Federal waterway improvement. It is regrettable that one of the stanchest leaders among this distinguished group— the Honorable JouN H. OverTon, senior Sen- ator from Louisiana—has been prevented from being with us today by the press of congressional duties. I assure you that it was as much a satisfaction to the Corps of Engineers as it was to your association and to the people of Louisiana that the author- ized lateral canal from the mouth of the river to Shreveport was named by Congress the “Overton-Red River Waterway.” As you know, the Corps of Engineers car- ries out its river-and-harbor improvements and flood-control works only upon congres- sional authorization, following requests for such work from the people, expressed gen- erally through organizations like your own, This democratic process under which we work contemplates that the people shall make known, through their congressional representation, the types of work desired, and have full opportunity to express them- selves fully upon any recommended works before they are eligible for construction. This democratic process also precludes the possibility of initiating any works contrary to the desires of the people themselves, ir- respective of how useful or promising such APPENDIX TO THE CONGRESSIONAL RECORD works may appear in the eyes of planners who do not dwell within the area affected by such works. Various matters allied to the basic work of flood control and river-and-harbor im- provements have been progressively added to the stope of our work. Congressional di- rectives have called for full reports, not only on flood control and navigation possi- bilities, but also on the potentialities of such kindred benefits as the provision of water for irrigation, hydroelectric power, recreation, elimination of pollution, the res- toration and preservation of fish and wild- life, and water conservation in the interest of domestic, municipal, and industrial use. Soll conservation and headwater drainage are also supplementary to, and complemen- try to, flood-control measures. In regard to navigation improvement and flood control, the Red River presents a two- fold problem that demands all the engineer- ing resources of the Corps of Engineers. On the one hand, the normal river levels are too low to permit modern navigation on more than a relatively short distance of the river. Furthermore, we have found that even with all existing and all authorized and recommended reservoirs fully operating the low-water flow in the river is insufficient to maintain adequate navigable depths by open- channel operations. Canalization of the river proper has also been found impracti- cable. Consequently, until the authoriza- tion of the Overton-Red River waterway, navigation improvements were confined to a systematic clearing of the river banks, snag- ging, dredging shoals, closing outlets, revet- ting caving banks, and preventing injurious cut-offs, As authorized, the Overton-Red River waterway will be a $42,000,000 lateral canal which will make possible modern barge navi- gation from the mouth of the river up to Shreveport, giving this city and the Red River Valley direct connection with the great Mis- sissippi River waterway system. The pro- posed waterway includes a channel 9 feet deep and 100 feet wide from the Mississippi River through Old River and Red River, and thence by a lateral canal along the right bank of the Red River. It will extend through land cuts and existing waterways and along the south bank of the Red River flood plain to Shreveport. The plan contemplates 9 locks, with cham- bers 55 feet wide, 650 feet long, and 12-foot depth over the sills. A pumping plant on Red River near Shreveport will supply water adequate for maintenance of pool level in the terminal basin and uppermost pool, and for lockage during low-flow periods in: Bayou Pierre, Benefits from the estimated $42,000,000 Federal expenditures and the estimated $2,000,000 cost to local interests are figured at $3,500,000 annually. The principal com- modities that will move on this new low-cost waterway will be petroleum and petroleum products, manufactured iron and steel, fer- tilizers, grain and cotton, with a large variety of other commodities in smaller volume. Our engineers view the proposed canal as an increasingly Important branch of the Na- tion's existing waterway system. Experience on the Nation’s waterways indicate clearly that commerce on the canal will be increased above present estimates, and that industrial development of the Red River Valley will be definitely encouraged. Certainly, it needs no stretch of the imagination to visualize the substantial economic improvement to the Red River Valley that will result when this waterway is completed. Low-cost, all-water transportation to Shreveport will prove a primary asset in enabling this progressive city to become a greater distributing center for the many products that can be shipped here by barge and are needed in the Red River