A582 Fallacies of World Government < EXTENSION OF REMARKS HON. LAWRENCE H. SMITH OF WISCONSIN IN THE HOUSE OF REPRESENTATIVES Wednesday, January 31, 1951 Mr. SMITH of Wisconsin. Mr. Speaker, Frank Chodorov, editor of Analysis, in December 1950, wrote an inspired article for his paper entitled “One Worldism.” Under leave to extend my remarks, I am including the article in question: Onz WoRLDISM Five years ago the organization of the United Nations was ushered into the world as the guarantor of peace, It has failed. Despite that obvious fact, there are many whose faith in some sort of a superstate as an instrument of peace is unshaken, and who lay the failure of the UN to the limita- tions put upon it by the autonomy of its members. That is to say, they believe in peace through authoritarianism; the more authoritarian the more peace. History cannot give this faith the slightest support. The glory that was Rome did not prevent its parts from coming into conflict with one another nor from rising up against the central authority. Even our American coalition of commonwealths came near breaking up in war, and uprisings have all but disintegrated the British Empire. Cen- tralization of power has never been a guar- antor of peace. On the contrary, every such centralization has been accomplished by war and its career has been one long preoccupa- tion with war. The best that can be said of any coalition of states is that it can keep smoldering fires from breaking out only so long as one of its members can exercise control over the others. It can maintain an armed truce, The UN has not done even that, simply be- cause no one state has shown sufficient strength to take control, The two most pow- erful members have been in contention aince its beginning and are now poised for a test of arms to determine the issue. Noth- ing ie more certain than that the rivalry of these two powers will shortly reach the breaking point, that the UN shall collapse or shall be succeeded by another coalition in which one or the other will be on top. The UN—it 1s moonshine to think other- wise—consists of two hostile camps, one held together by the American dollar, the other by fear of the Soviet Army. Nelther law, morality, nor ideology is a cementing influence. If the American dollar is with- drawn the West will break up, its members entering into new alinements dictated by expediency; if the Soviet power shows weak- ness, Titoism will splinter the Red empire. In short, it is evident now—even as it was to any one with some familiarity with the history of alliances—that the high moral purpose written into the charter of the UN charter is but a fairy tale. World pence is not to be achieved through this monstrosity. Like the League of Nations to which tt suc- ceeded, or the Holy Roman Empire, or any of the political coalitions in the history of the world, the UN is incapable of giving the world peace simply because it rests on the ‘unsound assumption that peace is a function of politics. The fact is that peace and poli- tics are antithetical. When we look into the nature and sub- stance of peace, and make comparison with the business of politics, we see how silly is this faith in the superstate. It is as irra. tional as the religions of totemism, animism, or fetishism. It is another magic-religion in which the hope of man for a better life rests on the mystic powers of an inscrutable authority, which must be propitiated into seeing things as man sees them. Just as primitive man sought the answers to all his questions in the totem pole, so does modern man look to political power to solve the problems of life. In both cases we have the same flight from self-reliance, the same escape from individual responsibility, the same mother-complex. That is the only way one can explain this blind faith in the effi- cacy of political power. The superstate idea is the most advanced form of this religion. The psychological identity of primitiviem and statism is only obscured by the ritual- ism of charters, constitutions, and protocol. SOCIETY 18 PEOPLE Peace is the business of society. Society is a cooperative effort, springing spon- taneously fron. man’s urge to improve on his circumstances. It ts voluntary, completely free of force. It comes because man has learned that the task of life is easier of accomplishment through the exchange of goods, services, and ideas. The greater the volume and the fluidity of such exchanges the richer and fuller the life of every mem- ber of society. That is the law of association; it is also the law of peace. It is in the market place that man’s peace- ful ways are expressed. Here the individual voluntarily gives up possession of what he has in abundance to gain possession of what he lacks. It is in the market place that society flourishes, because it is in the market place that the individual flourishes. Not only does he find here the satisfactions for which he craves, but he also learns of the desires of his fellowman so that he might the better serve him. More than that, he learns of and swaps ideas, hopes, and dreams, and comes away with values of greater worth to him than even those congealed in material things. Society has no geographical limits; it is as big as its market place, its area of exchanges. The Malayan and the American are auto- matically enrolled in the same society by the exchange of rubber for a jukebox, and even the difficulties of language are overcome when a New Yorker confronts a Chinese menu, South American music became the idiom of the North American dance floor because auto- mobiles are swapped for coffee and bananas. Society is the organization of people who do business with one another. The law of association—the supreme law of society—is self-operating; it needs no en- forcement agency. Its motor force is in the nature of man, His insatiable appetite for material, cultural, and spiritual desires drives him to join up. The compulsion is so strong that he makes an automobile out of an oxcart, a telephone system out of a drum, so as to overcome the handicaps of time and space; contact is of the essence in the market place technique. Society grows because the seed of it ts in the human being; it 1s made of man, but not by men, The only condition necessary for the growth of society into one worldism is the absence of force in the market place; which 14s another way of saying that politics is a hindrance to, and not:an ald of, peace. Any intervention ts the sphere of voluntary ex- changes stunts the growth of society and tends to its disorganization. It is significant that in war, which is the ultimate of politics, every strategic move is aimed at the disorgan- ization of the enemy’s means of production and exchange—the disruption of his market place. Likewise, when the State inter- venes in the business of society, which is production and exchange, a condition of war exists, even though open conflict is prevented by the superior physical force the State is able to employ. Politics in the market place is ltke & bull in the China shop. APPENDIX TO THE CONGRESSIONAL RECORD POLITIOS. 18 FRICTION The essential characteristic of the State 1s force; it originates in force and exists by it. The rationale of the State is that con- flict 1a inherent in the nature of man and he must be coerced into behaving, for his own good. That is a debatable doctrine, but even if we accept it the fact remains that the coercion must be exercised by men who are, by definition, as bad as those upon whom the coercion is exercised. The State is men. To cover up that disturbing fact, the doctrine of the superpersonal State is invented; it is more than human, it exists distinct from the people who staff it. That fiction is given plausibility by clothing it with constitutions, laws and litanies, like “my country right or wrong.” A religion of authoritarianism is pullt up around an idol. But, ritual does not give divinity to a golden calf. The hard fact remains that the priesthood of the State are just men, and the coercion they employ reflects their human capacities and frailties. They can- not get away from those limitations. What- ever badness is in them will show up in their use of force. They are not made good by the power to impose their will on other men. Getting down to the facts of experience, political power has never been used for the general good, as advertised, but has always been used to further the interests of those in power or those who can support them in this purpose. To do so it must intervene in the market place. The advantages that po- litical power confers upon its priesthood and their cohorts consists of what it skims from the abundance created by society. Since it cannot make a single good, it lives and thrives by what it takes. What it takes de- prives producers of the fruits of their labors, impoverishee them, and this causes a feeling of hurt. Intervention in the market place can do nothing else, then, than to create friction. Friction is incipient war. Now, if the business of the state is to cause friction within any given segment of society, any one country, by what logic can it be shown that a world-state will prevent friction? If a small state is an evil, as the one-worlders insist, why should a big state be a good? Can an institution that Is essen- tially antisocial be made prosocial, by en- Jargement? No matter how high the totem pole it is not God. Reason and fact ore at great disadvan- tage in confronting blind faith, and those who worship at the shrine of authoritari- anism will not be shaken by argument. Yet, one cannot help asking how the superstate will employ its army; the worshipers admit that an army ia necessary to its proper func- tioning. The army will certatnly be used to suppress something, to stop some people from doing something that to them seems good. For instance, there are many people in the world who practice polygamy, some who practice polyandry and a few who go in for monogamy. Will the omniscient priesthood of the superstate use its army to enforce a uniform conjugal practice? In that case, of course, friction will result. Or, if it is decided that the world has too much oll—the over-production theory— will the army be sent to Texas or to Iran to shut down the excess wells? When such frictional situations are brought up, the devotees of authoritarianism answer that everything will be resolved by the demo- cratic process—a process that has never stopped war. ONE WORLD-—-ONE MARKET PLACE One worldism is not an impossible ideal; but, it is not attainable through the medium of political power. On the contrary, the organization of the world into a single society --which ts what the one-worlders really want—can be acomplished only if people can rid themselves of the fetish of authari-
APPENDIX TO THE CONGRESSIONAL RECORD tarlanism. If men could come to a bellef in themselves, if they could lose faith in the golden calf of politics, if they could once reach the maturity of manhood, the law of association would do the rest. It is not necessary to plan or build a world society; it is only necessary to remove the obstruc- tions to its growth, all of which are political and all of which stem from faith in authori- terianism. Our own country furnishes an illustration. In the beginning, before Americans had been completely converted to this political pagan- ism. it was stipulated that their market place shall be as large as the country; the erection of trade barriers between the com- ponent commonwealths was prohibited. As the frontiers of the country were extended the market place grew apace, and, in time, goods, men, and ideas moved without hin- drance from the Atlantic to the Pacific, from Mexico to Canada. Therefore, an American society grew up. It was not planned; it grew. Several times the little separate polit. ical establishments set up blocks to trade at their respective borders, causing friction, but on the whole their efforts have beon frustrated by the spirit of free trade. (It might be well to mention, in passing, that the prime cause of the Civil War was protec- tionism, which {s a dogma of authoritarian- ism.) Let us look at a contrary example. Europe, which, outeide of Russia, compares in size with the United States, is cross-checked with tariff barriers, and Europe has been a battle- field for centuries. Political particularism has prevented the flowering of an European society. It ia impossible for such a thing to get going in an area darkened by pass- ports and customs regulations. Time and again the doctors of political sclence have prescribed some sort of political union for the ills of Europe, on the assumption that such a union will be followed by a customs union. Quite the contrary; the borders be- tween countries lose all meaning if the peo- ples can do business with one another; which ig another way of saying, if the states get out of the way of society. No political union can set up & soctety in Europe; that can only come from uninhibited higgling and haggling in 8 common market place. If thelr sense were not dulled by their idolatry, the One Worlders could draw & sound conclusion from these two examples; namely, that the only way to a world society is through free trade. This does not mean that free trade alone would guarantee world peace, for there are other political institu- tions that make for friction, but, it would go along way. After all, if the customer is al- ways right, how could he be an enemy? A Letter to Mr. Truman eee EXTENSION OF REMARKS or HON. ROBERT A. TAFT OF OHIO IN THE SENATE OF THE UNITED STATES Monday, February 5 (legisiative day of Monday, January 29), 1951 Mr. TAFT. Mr. President, I ask unanimous consent to have printed in the Appendix of the Record, an address entitled “A Letter to Mr. Truman,” de- livered by Rabbi Abba Hillel Silver, at the Temple, Cleveland, Ohio, on De- cember 17, 1950. There being no objection, the address was ordered to be printed in the Recon, as follows. A Lerrer To Mr. TeuManw (By Rabbi Abba Hillel Silver) Were I inclined to write a letter to Presi- dent Truman at this time, when letter writ- ing seems to have become a rather explosive avocation, I would dwell on two matters: First, the manner in which his choleric let- ter writing and emotional outbursts of re- cent months are affecting his own status and that of the American people in the world at a time when, to use his own words, we are the leaders of the free world, and the eyes of the world are upon us; and sccondly, about the implications of the national eraer- gency which he haa proclaimed, not so much as far as the American people are concerned, but as far as he himself and his administra- tion are concerned. Every citizen is called upon to put aside his personal interests for the good of our country. What does this spell out for the President himself and for those in whose hands are ‘he lives and for- tunes of 150,000,000 of American citizens? The first matter, that of the letter writing, is the lesser in importance by far, except as it has revealed an overcharged and uncon- trolled spirit which has greatly troubled the American people. Long ago Samuel yvohnson wrote; “In a man's letters his soul lies na- ked.” The soul exposed in Mr, Trumans letters of recent date gives very little evi- dence of that wisdom and calroness which he solicited of the American people in bis ad- dress the other evening. This has caused many Americans to wonder apprehensively whether major decisions of the Chief Execu- tive in far more serious realms of national and internetional affairs are similarly deter- mined by temper, pique, and resentment, and are likewise made in a headlong and im- petuous fashion. Everyone realizes, I am sure, the terrible strains and burdens of the office of the President of the United States, especially in these dreadful times. No one envies Mr. Truman the heavy and nigh overwhelming responsibilities which are his. The Amerti- can people is inclined to overlook an occa- sional outburst of irritability on the part of ® greatly harassed public official. However, when this irritability appears to be by way of becoming chronic and expresses iteejf in language which is not permissible even to a private citizen, there is proper cause for dis- quiet and criticism. The President of the United States, for as long as he holds that exalted office—and it is the most exalted and illustrious office in the world—is never @ private citizen. He never can dissociate himself from his office. Whatever he says or writes or does has to a greater or lesser degree public significance and repercussions. What a@ music critic writes about Margaret, good or bad, is of little importance, of little im- portance, indeed, but what the President of the United States writes to a music critic, or to anyone else, and the manner of his writing, can bring a sense Of shame and dis- may to the entire Nation and make the office of the President of the United States the laughing stock of the worid. There is much sound counsel to be found in our Bible to which I should like to draw the attention of the President. The Bible counsels men not to give way to gusts of anger, temper, and paasion. If these ad- monitions are applicable to ordinary citizens, how much more 6o are they to men who cocupy high position, whose every word is freighted with consequence. Thus, we read in the Bible: “It is the discretion of a man to be slow to anger and it is his glory to pass over a grievous wrong.” One who was himeelf a ruler of men, Koheleth, writes in his book: “Be not hasty A583 PT to get angry, for anger rests in the bosom of fools." The wise Hillel, likewise a leader of men, frequently cautioned his fellow men: “Guard your temper.” And the rabbis de- clared: “The speech of tho wise is always a clean and decent speech.” Were I inolined to write a letter to Mr. Truman, I would in all good will and earnest- ness bring these matters to his attention and suggest that he do not write letters when he is angry, and that all of his letters, like all of his speeches, should be checked by @ second party before they are mailed, and, above all, not to make public statements “off the cuff.” His latest ad lib about the use of the atomic bomb fell upon the world almost with the destructive effect of an atomic bomb and sent Minister Schumann hurrying to London and Prime Minister Attlee flying to Washington. Our President owes it to himself and to our country in these desperate times to avoid anything that might cause unnecessary irritation and resentment among our peo- ple, or that might lower the dignity of the high office which he sought and to which the citizens of the United States elected him. What has happened has not been good for the morale of our people and cannot serve as aon inspiring example for the emulation of our youth. I pass on to the second and more serious matter about which I should like to write to President Truman. In his address to the country the other evening, he summoned the American people to unity and self-sacrifice because of the grave danger in which our country finds itself. ‘Those of us who work in the Government,” he stated, “will do our best, but the outcome depends, as it has always depended, on the spirit and energy of our people.” In my humble judgment there has been very little wrong with the spirit and energy of the American people. They did not fall, either in unity or in the spirit of sacrifice, either in the First World War or in the Sec- oni World War. Whatever was asked of them they performed, competently and pa- triotically, They gave their sons to the war, and thetr daughtcra—as many as the Gov- ernment demanded. On the battlefields our fighting men gave an excellent account of themselves, and withdrew from no sacrifice in Ife or blood. Our shops, our mines, our mills were adequately manned. Whatever taxes our Government imposed upon our people they paid. Whatever restrictions and rationings were imposed upon them were complied with. There never was and there is not now any reason to doubt the loyalty, the patriotism and the readiness to sacrifice on the part of the American people in de- fense of their country or their freedom. I doubt whether the proclamation of a state of national emergency was really required to make the American people aware of how serious the present situation ts. The American people is not illiterate. They read their newspapers, they listen to their radio, they know what is going on in Korea; they know what is going on in the United Nations, Their sons are even at this moment fighting and some of them dying in Korea, But they, the American people, do not make our foreign policy. They did not send our armies unprepared into Korea. They were not consulted as to whether we should go into Korea. According to our Constitu- tion, Congress, and Congress alone, has the power to declare war and make peace. The Congress of the United States was not cone sulted about sending our troops tnto Korea. President Truman alone decided this grave iasue by the simple device of calling this ine tervention not a war, but a police action. This police action has already cost our people 40,000 casualties.
A584 Our allies likewise were not consuited. In his speech last Friday evening the President said that we muat work with a sense of real partnership and common purpose with the other free nations who need our help as we need theirs, These partnera were ignored when President Truman ordered our troops into Korea. The question is, Why? The United Nations, too, were not con- sulted. It is the prime responsibility of the United Nations, not of the United States, to resist aggression in the world. It was only after President Truman launched our mili- tary effort in Korea that the United States asked for the approval of the United Nations. This is not the procedure outlined in the Charter of the United Nations. Why did not our Government wait for clear directives from the United Nations in the matter of Korea? Why did not our Govern- ment ascertain before we moved in who else was going along and to what extent and with how many troops? Why did we not learn of the widespread reluctance of the other free nations of the world to become involved in Korea, as was later evidenced by the rather slim and purely token participation on the part of only a few of these nations? Why did we not learn about this widespread re- luctance before we committed ourselves to what has proved to be one of the most costly and disastrous enterprises in all the military history of the United States? Why? ‘ The strong suspicion entertained by many Americans that the Korean move was in- spired by domestic political considerations connected with an approaching fall election has not been satisfactorily resolved. The administration had for some time, prior to fast June, been attacked and badgered, especially by the Republican opposition, with charges of Communist sympathies, with re- sponsibility for the victory of the Commu- nists in China and the defeat of Chiang- Kai-shek, and with widespread infiltration of Communists in the State Department and other Government departments. For weeks on end, before the Tydings committee of the Benate, wild charges were made by irresponsi- bie political gentry and by publicity seekers of the type of Senator McCartuy. The ad- ministration found itself on the defensive, with an important congressional election ap- proaching. The invasion of South Korea by the North Koreans last June offered & tempt- ing opportunity to demonstrate to the coun- try that the administration was all-out anti- Conmimunist, and that it was ready to strike at communism wherever it raised its ugly head. It must have been assumed that the undertaking would be in the nature of a amall-scale police action, that it would be brief and not too costly, and that the North foreans would take to their heels as soon as they saw the American soldiers coming. President Truman also dispatched the Seventh Fleet to patrol the Strait of Formosa to see to it that the Chinese Communists did not take over Formosa, thereby intervening not alone in Korea, where a clear case of aggression could be established against the North Koreans, but also in the Chinese civil war, where the victorious Chinese regime had already been recognized by Great Britain, India, and other countries. Along with the intervention in China, we also promised to send aid to the French in Indochina where they were fighting to preserve French impe- ¥ial interests in that country, The adminis- tration reversed its former line and per- mitted itself to be swayed by domestic politi-+ al considerations and to be intimidated by the rantings of ex Communists, ex isolation« ists, pro-Fascists, and cranks of all kinds, and maneuvered itself and the American people into the disastrous Korean adventure. t Was it the American people that failed in Korea? Why was our military intelligence so auity? Why did it underestimate so cata~ phically the fighting numbers and the Dghting quality of the North Korean Armies, $o the point where we were almost driven into the sea at Pusan? And why did the same thing happen a second time, and more disastrously, a8 our soldiers were advancing 80 confidently toward the Manchurian bor- der, having been assured of an easy victory and the prospect of returning home by Christmas? Was our intelligence aware of the size of the Chinese Armies on the Man- churian border waiting to strike at us? If aware, why were our men, who were so vastly outnumbered, ordered to move on to the Manchurian border? If unaware, why are the military commanders who are responsible for this shocking blunder continued in thelr posts to this day? Did our State Department know that China would enter the war? If it did, what prepa- rations did it make to meet {t? Why was the American people lulled into a false sense of security by inspired spokesmen who in £0 many words assured them that China would not fight? If our State Department did not know whether China would enter the war, why did it take the dangerous gamble to move our forces beyond the thirty-eighth parallel? Why did it choose to ignore the clear declaration of the Chinese Foreign Min- ister and of Nehru of India, who warned the American people that !f we crossed the thir- ty-elghth parallel, China would come into the war? Why did we move beyond the thirty-eighth parallel? Why are we asking for a cease fire now when the Chinese and North Korean armies are advancing across the thirty-etghth parallel? Why did we not ask for it when we had reached the thirty- eighth parallel? Why did we reject the pro- posal of a neutral zone between Korea and Manchuria, which was favored by our allies? These mistakes, these blunders, these fail- ures, military and political, are not to be charged to the American people, although the American people, of course, will in the final analysis, pay the entire cost. These are the responsibilities and failure of the Govern- ment and of the administration and of those outside the Government and in the opposi- tion party who provoked the Government to hasty action, and of those in Government who succumbed to the provocation, who fondly believed that an easy-going victory against the Communists in Korea would be a@ strong political weapon in thelr hands against the opposition in an approaching election, The American people is now belng asked to give many more billions of dollars to our Military Establishment, to build up the mil- itary strength of our country. The House of Representatives has already voted an addi- tional $17,800,000,000 emergency defense bill. This will bring our total defense budget for the year to almost $42,000,000,000. I suppose that conditions being what they are, with the President of the United States warning ‘us that our homes, our Nation, all the things we believe in are in great danger, the ap- proval of such military expenditures is a foregone conclusion, and no patriotic Amer- ican would wish to stand in the way. But the American people has a right to ask why we received so little in terms of fighting ef- fectiveness for the many billions of dollars which they gave to the Military Establish- ment during the past few years. The Amer- ican people has never been niggardly with its Armed Forces. What became of the @50,000,- 000,000 which was given to the Armed Forces during the past 4 years? Why were we sO unprepared in June 1950? Before the Second World War, in 1939, we spent on our Armed Forces a billion four hundred million dollars. In the last 3 years——peace years, mind you-—we epent on the average of $13,000,000,000 annually. Yet we were unprepared. The President said the other evening that on June 25 of this year we had less than 1,500,000 men and women in our Army, Navy, and Air Force. Thirteen billion dollars is & powerful lot of money to spend on such a small Aghting force, In 1941, when our APPENDIX TO THE CONGRESSIONAL RECORD Army and Navy numbered a million and three-quarters men, we spent $7,000,000,000. In 1960 we were spending twice that amount on a smaller Army and Navy and Air Force. Is the unpreparedness of our Armed Forces so glaringly demonstrated in the Korean affair due to the fallure of the American people to provide adequately for them, or is it the failure of the men at the top to get a dollar’s worth of defense for every dollar paid by the American taxpayer? Have those who work in the Government really done their best, as the President promises they will do in the future? I cannot escape the feeling that these glaring, tragic fallures have heen at the top— lack of consistency, courage, and statesman- ship on the part of our political leaders, and blunders, waste, and poor management on the part of our military commanders and administrators. Theirs is the major respon- sibility for the plight in which the American people finds itself today. There is always the tendency on the part of our political and military leaders, when thelr policies or their actions result in failure, to shift responsibility from their own shoulders to those of the American people. Somehow it 1s always the American people who are responsible for all that goes wrong. It is proper to alert the American people today to the grave dangers in which they find themselves, as the President has done, but more is needed to meet the dire emer- gency—much more. In the first place, there must be self-examination at the top level. A sense of omniscience ts not conductive to sound government, nor is impatience and fr- ritability with suggestions and critictsm, and narrow partisanship and a desire to make political capital out of grave international situations. There is in my judgment need for a re- examination of our entire foreign policy which has been going from bad to worse ever since President Truman, on his own responsibility announced the so-called Tru- man doctrine and pledged our Country to resist communism all over the world, a commitment on which we are simply not able to make good and One which our allies are unwilling to back up. A reexamination of our entire foreign policy 1s called for. It is no loss of face for a government which has pursued a policy which has been found wanting or inadequate or dangerous to re- consider and reexamine and adopt a new policy, It is far better to change to a sounder policy than to be unchanging in catastrophic wrong-headedness, Finally, there is need for o reorganization of our Military Estab- lishment with an eye to greater economy and efficiency. Without leadership a people perishes, It is to leadership that we must look for our salvation, a leadership which will match words with action and which will treat the American people as mature people who know the score. In his address the other evening the Presi- dent announced four things which the American people must do and will do in this crisis. I am in perfect agreement with all these four things. First, he sald, we will continue to uphold and, if mecessary, to de- fend with arms, the principles of the United Nations, the principles of freedom and Jjus- tice. Fine. But please, let the United Na- tions decide when the principles of free- dom and justice are endangered, and what should be done about it. That is its busi- ness. Let the deliberations and decisions and actions be collective—not unilateral. Let us not act first and then get the approval of the United Nations for our actions. The United Nations has assumed the responsi- bility of keeping law and order in the world. Please, let us not have a private Truman doctrine of our own. Let us not do our own private policing, Let us not jump into Formosa or Indochina or Korea or else- where—and there are a hundred potential
APPENDIX TO THE CONGRESSIONAL RECORD danger spots in the worid—until the United Nations directs us, along with all other na! ; to act. We must avoid not only aggression, which we are not likely to in- dulge in, but aggressiveness as well. Let us strengthen the United Nations, Let us chan- nel whatever help we can give to the world through the United Nations. Let us strengthen this international organization, which is the sole hope of a stable world to come. . Secondly, the President sald he would con- tinue to work with the other nations to strengthen our combined defenses. Excel- lent. But let us be practical about it. Let us make sure how far the other nations are prepared to go along and how much they are prepared to pay out of their own re- sources to strengthen their own defenses. Of course, they will permit us to help f- nance their military establishments, but they may not be willing to use them every time we think they should. Let us not drain our own resources too far to equip other nations militarily. Let us think first and foremost and always of our own defenses. Again, in our eagerness to organize the world against the Soviet Union and line up the free nations of the world against Com- munistic dictatorship, let us not undermine our moral position in the world by allying ourselves with Francos and Fascists and Titos and Nazis in Europe and reactionaries in Asia. It makes the Voice of America sound hollow in the ears of the world. In the long run that will undo everything that We are trying to do. The President urged us further to build up our Army, Navy, and Air Force and to make more weapons for ourselves and our allies, By all means, let us build up to full strength, but let us not bankrupt ourselves by trying to arm half the world against the other half. Our resources are not limitless. Our Gov- ernment is already $257,000,000,000 in debt. It is the hope of the Soviet Unton that we will destroy ourselves through bank- ruptcy and sink our military strength into the great Serbonian bog of Asia. The President finally urged that we ex- pand our economy and keep it on an even keel. Nothing is more important than that, We must guard against inflation through greater production, higher taxes, and through price and wage control. In this connection, an American has the right to ask why the President of the United States did not use up till now the powers which were clearly his to control prices and wages, and why he permitted our country to move into the dangerous inflation spiral in which we al- ready find ourselves. These are some of the things about which I should like to write to Mr. Truman, I should also like to draw his attention to some words which he himself uttered the other evening and suggest that in those words lies the right direction of statesman- ship in these dire days. He said, ‘There is no conflict between the legitimate interests of the free world and those of the Soviet Union that cannot be settled by peaceful means, and we will continue to take every honorable step we can to avoid general war.” This is quite different from the dogmatism, the rantings, and the war-mongering of so many others which are so frequently heard these days. Stalin, too, has declared more than once that the Communist world and the capitalist world could live side by side in one world, Truman does not trust Stalin. Stalin does not trust Truman. Hence the impasse. But it is clear that only in the direction of oou- rageous and continuous exploration of every avenue for reaching understandings if only plecemeal, only in the direction of negotia- tion, earnestly sought and welcomed, lies the hope of the world. Negotiation is not appeasement, Let not the American people he into closing thelr minds at the sound of the word “appeasement.” It ts to- day a tabu device to paralyze thought and wise diplomatic action. There should be urgent and continuous exploration of every opportunity for coming to an understanding with the Soviet, a nation which we cannot defeat 1n war any more than it can defeat us. Our defeat in Korea is not a fatal defeat, Bataan and Dunkerque did not determine the outcome of the Second World War. We are @ strong and powerful Nation. We can become stronger and even more powerful, We are faced with most grave and menacing problems, and while we should do all that is practical and necessary to build up our mili- tary strength, we should bear in mind always that the bastc solution lies not on the battle- field. It will have to be found at the confer- ence table. Our appeal to our national leadership in Washington, which we make in all good will, for we are all involved in one common des- tiny, is to be courageous and unafraid, not to be swayed by partisan political consid- eration and not to allow itself to be stam- peded by warmongers, fanatics and cranks, and by those who would push us into war for reasons which have nothing to do with love of country. There are those in our country who do not want an understanding with Russia. There are those even in high Gov- ernment posts who are ardently advocating a preventive war with Russia. There are those who will try to sabotage any possibility of agreement. These are our real enemies, When our President will give the American people the kind of leadership they need and crave for, the American people will back him up 100 percent. The American people have always rallied to the defense of their country whenever it found itself challenged and en-~ dangered. Senate Bill 349 EXTENSION OF REMARKS HON. HOMER D. ANGELL OF OREGON IN THE HOUSE OF REPRESENTATIVES Monday, February 5, 1951! Mr. ANGELL. Mr. Speaker, I am just in receipt of a letter under date of Jan- uary 29, 1951, from the Honorable Doug- las McKay, Governor of Oregon, advis- ing me that at a meeting of the Natural Resources Advisory Committee of the State held on January 24, 1961, the pro- visions of this bill were discussed, This committee is deeply concerned over the provisions of title 2, section 215, para- graph C of the bill which would seem to authorize the bypassing of State, munic-~ ipal, and other local laws and believes that for that reason the bill should be modified to obviate this undesirable fea- ture. The following is a copy of the let- ter; STATE or Onkcon, EXscutTrve DsPARTMENT, Salem, January 29, 1951. Congressman Hower D. ANGELL, House Office Building, Washington, D. C. Dean Homze: At the meeting of my natu- ral resources advisory committee on Janu-~ ary 24, 1951, certain sections of Senate bill 349, which related to the construction and operation of community facilities and com- munity services for defense housing proj< ects, were discussed. The committee, which consista of the executive heads of State de- nts concerned with the development and conservation of natural resources, was A585 particularly concerned with the provisions of title 2, section 205, in which the Housing and Home Finance Administrator ia author- ized, without regard to any Federal, State, or municipal laws, ordinances, rules, or regu- lations, to do all things which he determines necessary or desirable in the public Interesta for and in the planning, acquisition, con- struction, and maintenance of housing or community facilities. “Community facilities,” as defined in title 2, section 215, paragraph C, include water- works, sewers, sewage, garbage and refuse dic~ posal facilities, police and fire protection fa- cilities, public sanitary facilities works for treatment and purification of water, schools, hospitals and other places for the care of the sick. recreational facilities, streets and roads, and day-care centers. The committee, by unanimous vote, ob- jected to the provisions granted to the Hous- ing and Home Finance Administrator in re- gard to public water supplies, public water supply systems, sewers, scwage treatment works, public sanitary facilities, and water treatment or purification. The State of Ore- gon has been endeavoring for a number of years to remedy sanitary conditions in our streams and for public places. It has been conscious of the necesaity for the conserva- tion of its netural resources and for the pro- tection of public health and, as stated above, planned programs for the improvement of water supplies and abatement of stream pollution are now under way, and for the Government to step in and ignore these things will not only disrupt the State's pro- gram but we will Jose much valuable educa- tion on that subject that we now have. The committee feels that it is very much against the public policy for the Federal Gov- ernment to disregard State or municipal laws. Also, the committee feels that if public hous- ing is constructed along this line it might be some time before we will be able to make ® clearance and thus we will continue to have & disregard of sanitary authorities. It 1s the beltef of the committee that pub- lic policy, as expressed by paragraph 8 of sec~ tion 2, is sound. It reads aa follows: “Any department or agency performing functions hereunder shall, in carrying out such functions, consult with the appropriate State and local agencies having responsi- bilities in connection with the planning, pro- vision, construction, or operation of com- munity facilities or services, so that, insofar as practicable, community facilities assisted or provided pursuant to this act may be inte- grated with State and local programs for such facilities and services.” It is my earnest request that everything possible be done to change this act before it becomes a law. Sincerely, Douvaas McKar, Governor, FEPC EXTENSION OF REMARKS or HON. HENRY D. LARCADE, JR. OF LOUISIANA IN THE HOUSE OF REPRESENTATIVES Monday, Januarz' 8, 1951 Mr. LARCADE. Myr. Speaker, under Jeave to extend my remarks in the Con- ORESSIOWAL Recorp, I wish to include the following editorial from the January 31, 1951, issue of the Southwest Citizen pub- lished at Lake Charles, La.: Way Rock Tue Ser or Bratz? For a number of years now, the New Deal's Fair Employment Practices Commission has
A586 been a hot political potato. The greatest opposition to it has come from the South and passage of the bill has been effectively prevented in Congress. The ostensible purpose of the FEPC is to protect minorities in competition for jobs and to assure them a square deal. What the pill actually does, however, is to give bu- reaucrate virtual contro] of the hiring and firing in private industry. For instance, if the member of a minority group—and there are, hundreds of these groups for they consist not only of persons of certain races but also those of various political and religious complexions—applies for a job as a bookkeeper and is not hired, he may, if he thinks he did not get the Job because of his minority status, take his case to the bureaucrata who could force the em- ployer to give specific reasons why the com- plainant didn’t get the job. And if these reasons are not satisfactory, the employer can be forced to hire the man he rejected if, in the opinion of the Government, he 1s qualified to hold the job. Our own feeling is that the proprietor of & business is entitled to hire or fire his workers as he sees fit and that it is not the Government's business what his reason its. If a businessman doosn't want to employ a Negro, an Indian, a Republican, or a member of any other minority group, he should not be forced to do it or even to be required to give his reasons therefor. The South has borne the brunt of the fight against the FEPC and has thus been saddled with the public opprobrium gen- erated by the professional tub-thumpers who get paid in money or in votes for their noise. Yet there is no real southerner who bears any ill will toward the Negro or who will not do more than his share to educate him, to give him work for which he is qualified, to help him get started in his own business. And we note on every side that the Negroes who are making the greatest progress eco- nomically are those who are getting the help of the southern white. Precious few of them are helped by the righteous orators who would exploit their minority status for political profit. We believe it can be said truthfully that, on the whole, the white and colored elements of our southern population get along to- gether very well. Our Negroes have always participated enthusiastically in every local civic drive and program to improve our com- munity. The white population has volun- tarily instituted, ahd is largely paying for, a program for better educational and sanita- tion facilities for our Negro friends. The end effect will be that colored men and women will continually improve their quali- fications for better jobs. The white people know this and encourage it. And this effort will be continued, The passage of an FEPO bill thus ts an extremely controversial matter and tempers will boil if such an attempt would be made now. It would seem unwise to push such proposed legislation through Congress when our entire energies should be voted to the far more serious problems of organizing our national defenses and guiding the ship of state through the shoals of foreign threats. It would seem prudent to avoid intense wrangling over what are essentially peace- time side issues. It should be the logical Purpose of everyone from President Truman down, to do all possible to promote a national unity of purpose. Yet it is now reported that the President, who has failed to get an FEPC through Con- gress, will create it by executive flat. Under the cloak of the war emergency, he is pre- paring to order FEPC into effect as a wartime necessity solely by means of a White House order. This may or may not be politically astute but the effect will be damaging to the Nation's effort for it would breed grave senti- ments of distrust in his leadership. ‘We hope that the President will reconsider the matter or that those advisers around him will succeed in persuading him that now is no time to rock the ship of state. An Irresponsible Budget EXTENSION OF REMARKS HON. ZALES N. ECTON OF MONTANA IN THE SENATE OF THE UNITED STATES ‘Monday, February 5 (legislative day of Monday, January 29), 1951 Mr. ECTON. Mr. President, I ask unanimous consent to have printed in the Appendix of the Recorp an editorial entitled “An Irresponsible Budget,” written by Henry Hazlitt, and published in Newsweek for January 29, 1951. There being no objection, the editorial was ordered to be printed in the Recorp, as follows: AN IRRESPONSIBLE BUDGET (By Henry Hazlitt) Senator Byrrp was using the language of restraint when he declared that President Truman's budget of $71,000,000,000 for the next fiscal year was “the very height of fiscal irresponsibility.” Mr, Truman no longer seems to attach any meaning to fig- ures, or even to pledges. He has repeatedly promised “rigid economy in nondefense ac« tivities.” And he solemnly continues his lUp-service to ‘‘strict economy” in the very budget in which, as Senator Byrp points out, proposed nondefense spending is increased “to the highest level in the history of the Nation.” Mr. Truman threw in practically the whole Fair Deal spending program—compulsory health insurance, bigger unemployment ben- efits, Federal subsidies to education, includ- ing nursery schools, more public power proj- ects, including the St. Lawrence seaway, more Government housing, more handouts to foreign countries for “economic recov- ery,” and on top of all this, the Brannan farm plan, the year-to-year cost of which is indeterminable, It may be doubted whether Mr. Truman seriously intended this as a budget or meant it only as a campaign document—so that, in 1952, he can tell the pressure groups that he asked for everything, and only a niggardly Congress denied it. The response of Congress to this budget ‘was much milder than it should have been. Senator Byron's estimate that it could be sliced by $7,000,000,000 was very moderate, Representative Taser's contention that it could be cut by $4,000,000,000 was even more so. I hazard the guess that with proper Federal policies and proper administration of spending, the whole €16,000,000,000 dif- ference between the proposed $71,000,000,000 of spending and the $65,000,000,000 of pro-~- spective tax ylelds could be cut, making it possible to balance the budget without in- creasing taxes any further. And the result could be both more production and better dofense. Mr, Truman still talks of Government ex- penditures as if they came out of some fourth dimension and bought more things than were bought before. All they do is to change the direction of spending. What the Gov- ernment pays out to Paul it must take from Peter. What it spends on Government proj- ect X it must take away from unborn or unexpanded private projects Y and Z. For every speech Mr, Truman makes on how APPENDIX TO THE CONGRESSIONAL RECORD many “new needs” he is meeting by his $71,000,000,000 of e ditures, mittiong, of mute inglortous tasbayers could make a speech on how many old and new needs they will be unable to meet because these billions will be taken away from them. It is not enough for Government to prove (though it seldom attempts even this) that every dollar it spends meets some vague “need” or other; it must show that every dollar it spends meets a greater need than it would have met if the man who earned it had been allowed to spend it on his own family or for his own projects. Nor should we allow the magic word “de- fense” to save a proposed expenditure from serious scrutiny. Once Congress permits the administration to set up sacred and un- touchable category of expenditures, it will find the administration shoving every pro-~ posed expenditure possible under that cate- gory. Today “defense” covers a multitude of fiscal sins. If there is any fiscal responsibility in Cona, gress itself, it will return Mr. Truman's 1952 budget to him without approval and request him to submit a responsible, balanced budget with a certain specified number of billions sliced off the expenditure side. It will bind itself, in return, not to increase by its own appropriations either the total or any indi- vidual item of this revised budget. But it will not bind itself not to make any fur- ther reductions in individual items when the individual appropriation bills come be- fore it. And its separate committees—in- cluding the Armed Services and Military Affairs Committees—will increase their tech- nical and research staffs and make a far less perfunctory scrutiny of expenditure requests than they have in the past. Senator Lodge’s Exposé of Soviet Planning EXTENSION OF REMARKS HON. BURNET R. MAYBANK OF SOUTH CAROLINA IN THE SENATE OF THE UNITED STATES Monday, February 5 (legislative day of Monday, January 29), 1951 Mr. MAYBANK. Mr. President, I ask unanimous consent to have printed in the Recorp, an editorial entitled “Too Clever for Vishinsky,” published in the Charleston (S. C.) News and Courier of November 21, 1950. The editorial deals with one of our distinguished colleagues, the Senator from Massachusetts (Mr. LoncE). There being no objection, the editorial was ordered to be printed in the Recorp, as follows: Too CLEVER FoR VISHINSKY Henry Carnot Loncz, United States Senator and delegate to the General Assembly of the United Nations, veteran soldier, too, who fought for the defense of Russia against the Nazis, in his statement last Sunday ex- posed Soviet planning, laid baye to the world the doctrine that Andret Vishinsky, Russian Foreign Minister, is uproariously setting forth in orations, Senator Lopez pointed to the declaration of the “great Lenin,” as the Communists call him, that “a just war is not an aggres- sive war but a Mberating war which is de- signed to defend people from foreign attack and from attempts to enslave it, or the lib- eration of people from capitalistic slavery”— 8 declaration that Vishinsky had incorpo-
APPENDIX TO THE CONGRESSIONAL RECORD rated in one of his deliverances wit Prova. ih endorsement, n eR enator Longe stripped naked, he pilloried, Vishineky as committed to belief that a war to demolish the capitalistic or free enter- prise system in the United States would be a “Just war,” not a “war of aggression.” This Communist scheming is not new to the Americans but Mr. Lopaz pinned down Vishinsky with his own words. Were the Russians to begin a war to free the Americans from capitalism it would stnk the Russian people deeper in poverty even though the Kremlin were victorious. It would reduce the Americans and their allies to pauperism. Defense preparations are now making the Americans poorer, In such 4 war, were it won by Communist nations, only the chieftains, the moguls, the masters, the overseers, would profit. From the Russian point of view all able- bodied Americans drawing wages, whether bus drivers, weavers, doctors, preachers, or presidents of factories, are wicked capitalists, oppressors of the people. To Comrade Vi- shinsky the 75-cent-an-hour Amertcan is a capitalistic felon, an enslaver of the masses— and Comrade Vishinsky, Comrade Malik, Comrade Stalin, and the other whip handlers, scourgers in Moscow, are enjoying the life of princes of the blood. A czar by any other name can live as well. Senator Lopasg is too clever for a Vishinsky. One cannot hide from him, Spies and Laws EXTENSION OF REMARKS HON. KENNETH B. KEATING OF NEW YORK IN THE HOUSE OF REPRESENTATIVES Friday, February 2, 1951 Mr. KEATING. Mr. Speaker, favor- able editorial comment continues to press for early action on a bill to permit the FBI and other investigative agencies to intercept communications in order to apprehend spies, traitors, saboteurs, and disloyal elements in our country. The people are justifiably aroused over the reversal of the conviction of Judith Coplon, a former Federal employee hold- ing a highly responsible position, Un- less Congress acts promptly, we may see the release of many other against whom the evidence of criminal acts is over- whelming, but who can evade punish- ment on technicalities. Under leave to extend my remarks, I include editorials, endorsing a measure I have introduced, from the Pittsburgh (Pa.) Press, the Champaign-Urbana (iil.) Courier, and the Rochester (N, Y.) Times-Union. The editorials follow: {From the Pittsburgh (Pa.) Press of January 18, 1961] Srizs anpD Laws Congress has passed, at the Justice De- partment’s request, a bill authorizing FBI agents to make errests without warrants in cases involving espionage, sabotage and other felonies, Another bill, mtroduced by Congressman K. B. Keatina of New York, would legalize FBI wiretapping to obtain evidence against suspected spies and saboteurs. Both measures result from the New York Federal Appeals Court decision which voided Judith Coplon’s conviction for stealing secret Government information and giving it to a Russian agent. The court held that, al- though her gutit was clear, Miss Coplon had been deprived of the constitutional right to due process of law because: 1. FBI agente, who arrested her without & warrant, failed to prove as present law requires that this was necessary to prevent her escape. 2. The Government failed to prove that FBI wiretaps led to none of the evidence used in obtaining her conviction, Present Federal law makes it a crime to intercept and divulge communications. Yet the FBI does intercept—does tap wire—in its work of protecting the country from spies, saboteurs and other public enemies, It first must get permission from the At- torney General, who acts by authority of an executive order issued by President Roosevelt in 1940. But if information the FBI obtains by wiretapping is divulged by its use as evi- dence in court, that can give a guilty spy pasis for a successful appeal from convic- on. That is a ridiculous situation. If FBI wiretapping was essential to na- tional security in 1940, it is more essential now. It should be legalized. Information obtained by this method should be made admissible as evidence. And safeguards against its abuse, and for the rights of inno- cent persons, should be provided. The Keating bill proposes that the FBI be required to obtain wiretap permits from Federal courts, upon showing of good reason to believe that information thus obtained is necessary to proper investigations. This would seem a much better safeguard than the present requirement for permits from the FBI's boss, the Attorney General. [From the Champaign-Urbana (Ill.) Courler of Decem) r 24, 1960] Review WiRe-TaP Ban Heightened concern over the national se- curity may lead, {t now appears, to a review of the use of wire taps as a means of gather- ing evidence against spies, traitors, and saboteurs. Representative KeENNetH B. KEaTING, of New York, made the first step when he introduced a bill to permit Federal Bureau of Investigation agents to obtain Federal court orders for wire tapping, tf national security appears involved. Some modification of the doctrine which bans the use of wir tap evidenc> cleurly 1s needed. Representative Katine calls the rule absurd and it certainly proved so re- cently when Judith Coplon’s conviction for plotting to spy on this country for Russia was overruled on grounds that part of the e\.dence against her was gained by wire- tapping. The proposed change now becomes a mat- ter of practical necessity. As the law stands, it permits spies to conduct their nefarious profession over American telephones. Gov- ernment agents may suspect the tenor of the conversation, but are not authorized to listen in. Permission to tap wires should be doled out sparingly, surely, for the private rights of the citizen must he guarded. The author of the bill, however, has provided against a possible danger of too free a use of the privilege when he asks that FBI men and military Intelligence agents secure court per- mission before using the tapping system. Fact is, the average citizen conducts busi- ness over the telephone of less importance than is ordinarily believed. If his conversa- tion was really important, he would protest more vigorously than he does the party-line systems in use in al] rur:l areas and in many city systems. {From the Rochester (N. Y.) Times-Union] Krartina Bru Saovr Pass A teapot tempest is still on the question of allowing the FBI to tap tele< . A587 phone conversations of suspected foreign agents. With thousands of American boys already lying in Korean graves, we think it's high time to start helping instead of hindering the FBI. But many well-meaning persons still raise the bloody shirt of “martyred” civil Uberties at such a suggestion. Obviously, no sane person wants to atart scrapping civil lberties wholesale. From Bunker Hill to Wonju our soldiers have fought to preserve a system of government whose core fe the protection of the rights of the individual. There are inconsistencies in the objections reised to FBI wire tapping. For example, it’s permissible for an FBI man to eavesdrop on & conversation in a restaurant, but he can’t ecvesdrop on a telephone conversation. Police of many States can use wiretap evidence on minor crimes, but the FBI can't use it tn efforts to guard our Government against enemy espionage. Representative Keatina has introduced a bill to remedy the situation. By making permission of a Federal judge necessary for such wiretapping, the bill attempts to pro- tect the public against un ~arranted invasion of its rights. This long overdue measure should be passed quickly. ° Fighting Inflation EXTENSION OF REMARKS or HON. IRVING M. IVES OF NEW YORK IN THE SENATE OF THE UNITED STATES Monday, February 5 (legislative day of Monday, January 29), 1951 Mr.IVES. Mr. President, I ask unani« mous consent to have printed in the Ap- pendix of the Recorp, a statement en- titled “Fighting Inflation,” published by the Life Insurance Association of Amer- ica. The statement is datec January 1951. There being no objection, the state- ment was ordered to be printed in the Recorp, a8 follows: Ficurina Inr.catron Since the autumn of 1938 we have been experiencing a price inflation which has brought about a decline of 43 percent In the purchasing power of the dollar, with the largest part of this decline taking place since the end of World War II. This steady depre- ciation in the purchasing power of our money has infilcted hardship and privation on many whose incomes are fixed or relatively con- stant, and it has seriously reduced the real value of accumulated savings. The inflation which we have already experienced is bad enough, but with the outbreak of war in Korea we are suffering an acceleration in the upward movement of prices. The basic cause of this development is that the demand for goods and services by the American people and Government, supported by a record-breaking volume of money out- standing, is running far ahead of the avail~ able supply at existing price levels. With the very high employment of labor and other resources which exists in our economy today, there is little opportunity for a rapid ine crease in national output to meet the exe panding requirements of our military pro- gram. To an important degree, therefore, it is necessary to divert current output from civilian markets to the military program.
A588 Under these circumstances, in order to pre- vent serious inflation we civilians must com- pensate for the increasing demand of the Government by restricting our demand to the supply of goods and services which can be made available at present price levels. The 88,000,000 Hfe-insurance policyholders have a vital stake in urging upon the Gov- ernment that a stif? program be employed to fight inflation, This arises from the fact that an erosion of the purchasing power of the dollar cuts into the value of savings which policyholders have accumulated through life insurance. As a matter of fact, of course, inflation exerts an exceedingly adverse effect upon most savers, but it must not be as- sumed that inflation will affect only accu- mulated savings. The aistory of past infla-~ tions demonstrates clearly that when prices rise at a rapid rate they generally outstrlp increases 1n wages and salaries and other forms of current income. Moreover, experience also teaches us the lesson that every inflationary boom has ulti- mately led to a collapse. An economic col- lapse would be disastrous in that it would play into the hands of the Communist world and would involve in itself a serious threat to our freedom, It is noteworthy that Nikolal Lenin, the prophet of modern communism, held that debauching the currency is the best way to destroy a country. Alarmed at the rise in prices which got un- der way with the outbreak of war in Korea, Congress acted promptly in passing the De- fense Production Act and in enacting an increase in personal income taxes. In addl- tion, the Federal Reserve Board and the vari- ous Government housing agencies have acted quickly to tighten consumer and real estate credit. The measures taken so far are com- mendable, but they must be broadened and strengthened if we are to win the battle against inflation, We believe that inflation can be stopped and held in check if steps along the nes outlined below are taken in time by the Federal Government. For the present, at least, inflationary pressures can be halted through the use of indirect controls without the need to resort to direct controls such as general price and wage ceilings and ration- ing. Indirect controls, if stern enough, have the great advantage of getting at the heart of the inflationary process which lies in the excessive effective demand for goods and services. They also have the advantage of not interfering with the freedom of choice of individuals. On the other hand, direct controls deal merely with the symptoms of inflation without getting at the basic causes, and for this reason should be employed only as @ last resort. Even then, to be effective they must be accompanied by powerful in- direct controls. THE MEASURES WHICH SHOULD BE TAKEN BY GOVERNMENT The basic reason for the inflation we have been experiencing ie that our money supply has expanded faster than the supply of goods end services, so that the key to an effective fight against rising prices is a well-rounded program by Government directed toward re- @ucing the active money supply in the hands of the public. The volume of bank deposits and currency held by the public has risen from $63,300,- 000,000 at the end of 1939 to 8173,000,000,- 000 at the end of October 1950 with a sharp increase of @5,900,000,000 occurring from the end of March through October of this year. Furthermore, in recent months money has been turning over at a much faster rate. The measures adopted by Gov- ernment, therefore, should restrict not only the current income of the public but also the accumulated money ‘supply. These measures should include the following: Increased Federal taxation: The military Prepuredness program in its present dimen- sions and all other Government expenditures should be carried on a pay-as-you-go basis, The taxes chosen to raise additional revenue should be geared to cut directly into the mass purchasing power which has given rise to inflationary forces. A broad extension of excise taxes, or the imposition of a general spending tax, should be given careful consideration. This form of taxation is a direct deterrent to spending and an encouragement to saving both be- cause of the tax itself and because of the psychology of it, The tax should not be applicable to necessities such as food and clothing at the minimum level. A further rise in personal income taxes, when required, should be levied across the board on a straight percentage increase. A sharply graduated income tax will fall short in ylelding revenue and will weaken the incentive which is needed for harder and more efficient work to increase produc- tion. It should not be forgotten that over a period of time expanding production is probably the most effective way to combat inflation. When it becomes necessary to place a heavier tax burden upon corporations, this should be done by increasing the present corporate income tax. An excess-profits tax should not be employed because it is dis- tinctly inflationary in that it leads to ‘unnecessary corporate expenditures and dis- courages efficiency and increased produc- tivity. Reduced Government expenditures: As all individuals and business concerns will be called upon to cut their expenditures dras- tically, clearly it follows that all nonmilitary expenditures by the Federal, State, and local governments likewise should be cut to the bone. This requires, particularly at the Fed- eral level, a searching reexamination of the peacetime functions of Government and the elimination or pruning of many activities. With the additional demands of our military program the burden of Government expendi- tures will be crushing without continuing to carry many items which were put into the Federal budget in the postwar period. Furthermore, although our military program must be sufficiently large to play our proper role in the preservation of freedom through- out the world, at the same time rigorous care should be exerted to insure that military expenditures are made efficiently and with & minimum of waste, Tightened monetary and credit controls: A pay-as-you-go tax program is the corners stone in the fight against inflation, but it is not enough to do the job. Its restrictive effects could be defeated by an expansion of credit and a resultant increase in the money supply, as well as by the spending of liquid assets which are now held in very large volume by the American people. The action which has already been taken by the Government to curb real-estate and consumer credit is highly commendable be- cause much of the current inflationary boom lies in the housing and durable-consumer- goods fields. While we do not like to see housing, automobiles, or any other such goods denied to anyone, it 1s to the best in- terest of all of us that the Government re«~ strictions have been put into effect, It is imperative that the real-estate and con- sumer credit controls be watched carefully in order to insure that they have the desired restrictive effect, but it is not enough to rely solely on selective credit controls, The Federal Reserve Board should have freedom to employ its general credit-con- trol powers in order to exert its maximum influence in the fight against inflation, Steps which have already been taken by the Federal Reserve Board to raise the redis- count rate, and its efforts through open- market operations to tighten commercial bank credit and thus to bring about a rise in short-term interest rates, have been in the right direction. The same is true of the Treasury's recent decision to raise the rate APPENDIX TO THE CONGRESSIONAL RECORD on 5-year notes. The guiding principle here should be that the Federal Reserve must be permitted to restrict bank credit even though as a result interest rates must rise. Neither the Government nor the American people can afford a policy of easy money and low interest rates in a perlod of strong inflation. Anti-inflationary public-debt manage- ment: Through pubkiic-debt management the Treasury can and has influenced the money supply. Much of the Federal debt issued during the war and postwar period ts lodged in the commercial banks or the Federal Re- serve banks with the resultant effect of & greatly expanded money supply. During the next several years the Treasury will be faced with heavy refunding of maturing debt, and its policy in managing this debt should be directed toward getting a substantial part of the debt out of the banking system into the hands of savers. The constructive effect of this policy would be to reduce the money supply in the hands of the general public. Any new issues of Government debt should be placed outside the banking system, In order to accomplish these goals, it will be necessary for the Treas- ‘ury to make its securities more attractive to all types of investors, which means essen- tially a higher rate on Government securities, Strong wage-price policy: The Govern- ment, through concerted efforts by its varl- ous branches and by means of appeal to public opinion, should strive to prevent further developments of the wage-price spiral. This means not only the avoidance of wage and salary increases designed to keep up with the cost of living—it also means the avoidance by business of un- warranted price increases. The various measures of indirect control urged in this statement will fail unless at the same time the Government, with the cooperation of Jabor and management, succeeds in holding down the wage-price spiral. By the same token, if the controls urged herein are used fully, much of the cause for the wage-price spiral will be removed. COOPERATION BY INDIVIDUALS AND BUSINESS The measures outlined above can go far toward fighting further price inflation, but in the last analysis their success will depend upon a thorough understanding by individ- uals and business of the forces which give rise to inflation along with the measures needed to combat it. With this understand- ing the American public and business can be counted upon to cooperate with a deter- mined program by Government along the lines set forth here to fight inflation. The main elements of action by individuals and business concerns in the fight against inflation are clear. Both groups should Keep their spending for nonessentials at an absolute minimum, and should bend every effort to increase their current savings, EXx- isting savings of individuals in the form of war bonds, bank deposits, and in other liquid forms should continue to be held out of the spending stream. Business concerns, as well as individuals, must refrain from hoard- ing goods. Scrupulous care should be exerted by both groups to conform with rules and regulations promulgated by the Government to control such things as real estate and consumer credit. Finally, labor and management should co- operate in stopping a further rise in the wage-price spiral. Real sacrifice by all of us is needed to wage a successful fight against inflation. The objective is so compelling that we must make that sacrifice, and tt will be made only Lf effecttve controls com- pel it to be made. SUMMARY Since the autumn of 1939 we have exper- fenced @ decline of 48 percent in the pur- chasing power of the dollar, and with the outbreak of the Korean War we are now suffering an acceleration in the upward
APPENDIX TO THE CONGRESSIONAL RECORD movement of prices. The basic cause of this development is that the demand for goods and services by the American people and Government, supported by a record-break- ing money supply, ts running far ahead of the available supply of goods and services at present price levels. Eighty-three million life insurance policyholders, in the interest of protecting the value of their insurance, have a vital stake in urging upon the Govern- ment that a stiff program be employed to fight inflation. The main elements of this Program, which must be directed toward reducing the money supply in the hands of the public, are as follows: 1, Federal taxation should be geared to carry the military preparedness program, at least in its present dimensions, and all other Government expenditures on a pay- as-you-go basis. Taxes should be directed toward Mimiting civillan spending to the available supply of goods and services at existing price levels. 2. All nonmilitary expenditures by the Federal, State, and local governments should be cut to the bone and every effort should be made to insure that military expenditures are made efficiently and with a minimum of waste. 8. Selective credit controls such as those to control real estate and consumer credit sl.ould be employed as fully as necessary to restrict credit in certain boom areas, and the Federal Reserve authorities must have free- dom to use their general credit control pow- er, to curtail the money supply even though as & result interest rates must rise. Neither tha Government nor the American people can afford a policy of easy money and low interest rates in a period of strong inflation. 4. In refunding the public debt, Treasury policy should be directed toward getting a substantial part of the debt out of the bank- ing system into the hands of savers, thus reducing the money supply held by the gen- eral public. New issues should be made at- tractive enough to be placed outside the banking system. 5. The Government and business should pursue vigorously a policy of discouraging further rounds in the wage-price spiral. These steps can be employed effectively by Government to halt inflation, but only if individuals and business concerns coop- erate fully by cutting their spending to the bone and by increasing their savings, as well as by conforming in letter and spirit to the regulations issued by Government. It will require real economic sacrifice to combat the forces of Communist aggression success- fully without incurring further inflation, but the American public, given sound leadership by Government, can be counted upon to make that sacrifice. The Single Supply Catalog: An Essen- tial Conservation Measure in Mobiliza- tion Planning EXTENSION OF REMARKS HON. CLARK W. THOMPSON OF TEXAS IN THE HOUSE OF REPRESENTATIVES Monday, February 5, 1951 Mr. THOMPSON of Texas. Mr. Speaker, recent editorial comments in- dicate the impression prevails that noth- ing is being done toward the preparation of the single supply catalog for the Federal Government which was recom- mended by the Hoover Commission as an essential conservation measure. Ac- cordingly, I inquired into the present status of this work. It is indeed grati- fying to report the results of my inquiry to the Congress, The supply catalog is now 45 per- cent complete, by the end of September 1951 it should be 75 to 80 percent com- Plete, and the scheduled date of comple- tion of the entire work is July 1, 1952. Already published in one form or other, and available for use of Government and industry, are 870,293 items. The preparation of the catalog has necessarily included a vast program of simplification. For example, 1,000,000 gages of various types have been reduced to 186,000, of which 80,000 have been cataloged or published. In addition to several hundred persons working on the stock catalog in Wash- ington, there are more than 4,000 throughout the country. This staff, un- der the direction of the Munitions Board, is vigorously pushing to meet the sched- uled dates of completion. In view of the pending world crisis, conservation of our resources assumes a greatly increase significance in connec- tion with mobilization. A most illu- minating address on this broad subject, delivered on November 29, 1950, at the annual dinner and honors night of the American Society of Mechanical Engi- neers in New York by Dr. Howard Coon- ley, Chief Conservation Planning Spe- cialist of the National Security Resources Board, was published in the January 1951 issue of Mechanical Engineering. Dr. Coonley’s paper admirably sum- marizes the general conservation prac- tices as developed in World War II, espe- cially with respect to the supply cata~ log, and should remove much of the confusion in the public mind as to the scope of these activities. To make Dr. Coonley’s timely contri- bution more readily available to the Con- gress, the executive branch of the Fed- eral Government, and the Nation at large, I am extending my remarks to in- clude the full text of the indicated ad- dress which follows: Tue ROLE of CONSERVATION IN MOBILIZATION PLANNING (By Howard Coonley) mservation is not an American charac- teristic. Our people have ingenuity, adapta- bility, and driving power, but we are not by nature accustomed to make much out of Uttle, to see how far we can stretch the cloth which is within easy reach. In short, we lack a apirit of thrift. It should not require & war or even a threat of war to make us aware of the necessity to save. When I sat down to consider how I could impress upon this audience tonight their responsibility for the conservation that is essential if our country and our way of life are to survive, I realized that it would be wise to turn to our benefactor Noah Webster to define the word I am using as my text. The result of my investigation was not com- pletely satisfying. Noah says: Conservation is, frst, a process of conserving or preserving; second, official care or supervision as of a river or forest; third, Keeping as of bees or domestic animals; and, fourth, making of conserves or preservos. The conservation that I have in mind goes far deeper than these definitions. In our present crisis it is the ingredient that will expand the output of our mills and our machinery that urgently important addi- tional amount which is needed to take care of civilian as well as military requirements, A589 and thereby safeguard our Republic and as- sure the survival of the demorratio nations of the world, whether our destiny be the ter- rors of another war or the blessings of long years of peace. Tam undertaking tonight to tell you briefly what your Government's present program is in the field of conservation and what ts proposed for the future. SIX ASPECTS OF CONSERVATION The National Security Resources Board, to which I am giving a substantial portion of my time as chief conservation planning spe- Clalist, 1s not an operating agency such as was the War Production Board. Ita reaponsi- bilities and ite authorities are limited to the area of mobilization planning, to the co- ordination of Government activities, and to the inauguration and stimulation of such activities where necessary. Conservation as practiced in World War IL and as it must be considered in mobilization planning may be divided into six broad categories. First on the list I should place standardiza~- tion. Perhaps I should combine with stand- ardization, specifications, for in Washington the two have quite different meanings. There, specifications are thought of as sched- ules set up for immediate production and procurement; standards are rules and regu- lations designed for longer-term use, They have the framework of permanency. Sim- plification is an important corollary of stand- ardization. In these areas of standardiza- tion, specifications, and simplification, our ASME is deeply interested and plays a vital role. My second category might be stated as measures to determine and safeguard sup- plies of critical materials. This ts a subject that should have our complete backing whether or not an emergency is threatened. Third on my Mst is the development of substitutes wherever necessary and possible, This should be the natural habit of prudent industrialists. In fourth position I place a program of salvage and savings at the source. Fifth is a cataloging of supplies under a system of standard identification to avoid duplication and waste. And last but not least I place international cooperation in conservation measures, And I say last but not least deliberately, for it 16 my firm conviction that lasting world peace must be built upon an interchange of goods, services, and techniques on a basis of mutual benefit and friendly understanding. In a brief statement of this kind I can only touch the high spots of my subject. Yet you should know and I hope you will ap- prove and support the mensures that are being taken, USE BEING MADE OF RETIRED EXECUTIVES The handful of specialists (I feel I can properly call them experts) that are respon~ sible for the National Security Respurces Bonrd’s conservation activities have been— with one exception—recruited from that great group of recently retired executives who are still charged with the necessary physical energy, and who have the priceless attributes of experience and knowledge to make them outstandingly valuable to our conservation planning efforts. I am letting no opportunity go by to recommend to other Government agencies that they turn to the rich field of the recently retired for the as- sistance they need in their expanding activi- ties. Zam further tempted to pause in my thesis long enough to say that it would be well, as it may be necesasry, for our leaders of business to reappraise their theories of the mandatory retirement age for members of their organizations. One of the outstanding industrial economists attached to a great and successful corporation tells me that a recent survey indicates the useful years of life of our men and women workers are
A590 rapidly increasing due, undoubtedly, to greater understanding of proper foods and broader knoWledge of preventive medicine. He predicts that within the next generation the period of efficient service will have in- creased by 16 years over our earlier estimate. I believe it is in a large part due to the wis- dom and maturity of our little band of “minute men” that we have been so uni- veraally welcomed by all Government agen- cles. ’ YUNCTION OF THE CONSERVATION SPECIALISTS But to return to the work being done by our small group of specialists; our main duty is to keep open the channels of con- tact with all Government agencies to learn what each is doing in the area of conserva- tion: to assist wherever possible; to offer sug= gestions where they are sought or needed; to develop methods of coordination and stim- ulation. One of the first groups with which I be- came associated after I came to Washington im March of this year was the Interdepart- mental Standards Council. In December 1949, this Council was eet up to coordinate and direct the standardizing activities of all Government agencies and to prevent du- plication and discrepancy. Sixteen Federal agencies, both military and civil, are repre- sented on this Council, of which 8. J. Kaidan- ovsky of the General Services Administration 4s chairman. The conservation planning specialists of the National Security Resources Board who have wide industrial experience and many contacts both within and outside of the Fed- eral agencies are very active in the delibera- tions of the Interdepartmental Standards Council. They have been able to offer guid- ance on problema of international as well a8 national scope and to suggest important opportunities for developing standards which justify the attention of the Council. One of their chief concerns is closer cooperation between Government and industry. There is far too little known by one group about the accomplishments of the other in the field of conservation, of which standardiza- tion is a tool. A group of Maison engineers Such as the conservation specialists can per- form a very valuable function in bringing Government and industry closer together for the accomplishment of common objectives. The most active participation in the In- terdepartmental Standards Council on the part of the military comes from the Stand- ards Agency of the Munitions Board of which Col. A. E. Michelsen is chief. This agency is another miniature group whose functions are similar to those of the American Stana- ards Association in that they develop no standards but provide the machinery through which the three divisions of the De-+ partment of Defense determine what stand- ards are to be developed, select the members of the committees that do the actual work, and pass Judgment on the standards when they are completed. At the present time the Standards Agency of the Munitions Board is reviewing several of their standards for drawings and drafting- room practices and ts planning on an expan- sioh of these standards. In this program, we of the National Security Resources Board are giving them every encouragement. For ‘We can conceive of no conservation measure that would prove of greater value to the mobilization effort than « unified set of in~ Gustrial-military standards in this impor~ tant area. Had there been available in World War II such & group of standards, millions of dollars and hundreds of thou- sands of skilled man-hours would have been saved. As sponsor for ASA Committee Zi4, ASME has an outstandingly important post- tion in this area. It is my deep hope that some way will be found for Committee Z1¢ and the Munitions Board Standards Agency to work together on this project, so that the standards may be truly representative of the best industrial as well as military thinking. DEVELOPMENT OF A SUPPLY CATALOG I will not attempt to speak further to- night on the need of a monthly list of critie cal materials, classified as to their current eriticality or on the programs of substitutes for critical materials, on both of which our group is working. It isa matter which I am pursuing vigorously. But I do want to re- fer to the developments that are under way of a supply catalog, to which I referred as the fifth on my list of categories. Confusion, delay, and unnecessary work were experienced during World War II be- cause of the lack of a common language to describe the Government’s supply needs. You all know the now famous story of 4 combat vessel turning 500 miles off its course to replace a broken bearing only to find that several bearings of the same dimensions were on board but stocked under different item numbers, At one time, 11 naval agencies and 3 Army agencies attempted to solve this exasperating problem by each developing its own system. Immediately after the war the Secretary of the Navy submitted this prob- Jem to the member bodies of the American Standards Association. As a result a stand- ard method of testing bearings has been agreed upon. Another standard on dimen- sions and tolerances is about to be issued, and a numbering system is approaching completion. The antifriction-bearing inci- dent is one of countless though less striking examples of the difficulties that have arisen because of the lack of a supply catalog. The need for uniform Federal cataloging has long been recognized. Supply systems of Federal agencies have traditionally contained thousands of apparently different items when in reality many of them were thought to be different only because of the lack of uniform item names, descriptions, and stock numbers. As early as World War I, expert- ence showed that the lack of a common lan- guage to identify the same item, or similar items, used by different branches of our Armed Forces, caused duplication and waste. A Federal Standard Stock Catalog was pub- lished in a@ single series of volumes from 1930 to 1935. These volumes, together with the supplements that followed, contained only 350,000 items. Five million items are in- cluded in the supply lists of today. Use of this first catalog was limited to a few Gov- ernment agencies that found it practicable to adopt a uniform system. By the begin- ning of World War II, most Federal agenctes had developed separate cataloging systems thought to be best suited to their indivigual ‘use. Technological advances made during World War II flooded the various Federal supply systems with so many new items that the work of cataloging fell far behind that of procurement. As a result, identical articles were listed by separate branches of the same service under different numbers and descrip- tions and frequently under varying names, Out of the avalanche of demand for an ade- quate Federal supply catalog, facilities and appropriations for its development were ulti- mately provided. The Federal catalog program is at present the joint responsibility of the Munitions Board Cataloging Agency, which represents Military Establishments, and the Federal Supply Service, which represents civilian agencies. Authority for coordination of the program has been delegated to the Munitions Board Cataloging Agency by the General Services Administration. The cooperative efforts of these agencies are expected to re- duce the 3,500,000 supply items estimated to be in our military supply systems and the 2,500,000 supply items estimated to be in the supply systems of the Federal civilian agen- cles to approximately $3,000,000. In other APPENDIX TO THE CONGRESSIONAL RECORD words, the first goal in the cataloging pro- gram is to eliminate approximately 2,000,000 duplicate items. IMPORTANCE OF THE CATALOG It is obvious that the intelligent use of a uniform catalog will preclude the purchase of thousands of unnecessary items, but that is only the start of the conservation of ma- terials that can be realized. A decrease in the nymber of items purchased by the Fed- eral Government means less demand on our industrial capacity and less stress on over- worked transportation facilities. It means savings in storage space, with a consequent decrease in warehouse construction and less demand for scarce building materials. It means fewer people required to handle Fed- eral supplies. It means tremendous savings in taxpayers’ dollars. And since a uniform catalog system is designed to facilitate de- livery of the right item in the right place, at the right time, it will save precious lives in time of war. Under the impetus of the war in Korea, the then Secretary of Defense Louis Johnson called for greatly accelerated effort in catalog- ing items of military supply. In a memo- randum addressed to the Secretaries of the Army, the Navy, and the Air Force, in Sep- tember, he asked that within a year catalog- ing be completed in certain selected cat- egories, that contribute most significantly to national defense under conditions of either total mobilization or partial mobilization, It is estimated thas from 75 to 80 percent of the items in military supply fall within these categories. In this work the conservation specialists of the National Security Resources Board have played an important part. Largely through our efforts technical and trade-asso- ciation executives are being called upon for assistance and advice, with the result that the catalog when completed will reflect to a large degree industrial practices. When you who are active in the industries that are still to be covered are requested to partici- pate in this important undertaking, I trust you will recognize the obligation and the opportunity, and give freely of your time and experience. THE FIELD OF COORDINATION Perhaps the most important activity that will be undertaken by the National Security Resources Board in the field of conservation will be the re-creation of a Conservation Co- ordinating Committee which proved so help- ful in World War II. In September 1942, Donald Nelson asked the Undersecretaries of the Army and Navy and the chairman of the Maritime Commission to appoint repre- sentatives to meet with the director of the then Conservation Bureau of the War Pro- duction Board to discuss ways and means of cooperating in an all-out drive for con- servation. Later thie small group was ex- panded to include Lend-Lease, Treasury Procure, the Aircraft Coordinating Commit. tee, and the Board of Economic Warfare, and was given the name of the Conservation Coordinating Committee. The deliberations of this committee which resulted in broad unified programs of conservation were carried out with great success and with complete understanding and cooperation. Several weeks ago, Chairman Symington agreed that a similar committee should be set up under the chairmanship of the NSRB to include representation of all three divisions of the Department of Defense, the Munitions Board, the National Production Authority, and other Government departments and agenices that have a major concern with materials, facil- ities, manpower, and production. I have been spending my time for these several weeks visiting the heads of these depart- ments and agencies so that the purposes and programs of the Conservation Coordi- nating Committee should be understood and
APPENDIX TO’ THE CONGRESSIONAL RECORD the ropriate representatives selected when tne invitations from Mr. Symington are received. Nineteen departments and agencies will be represented. I am happy to say that the pian has met with enthusiastic approval In this somewhat disjointed outline I hope I have given you a preview of a united effort to make the most we can out of the materials, facilities, and manpower that are available to our Nation. The results should be fully 4s helpful in peace as in war. a . A Young German Speaks Up EXTENSION OF REMARKS or HON. LOUIS B. HELLER OF NEW YORK IN THE HOUSE OF REPRESENTATIVES Wednesday, January 24, 1951 Mr. HELLER. Mr. Speaker, under leave granted to extend my remarks in the Recorp, I include the following ar- ticle sppearing in the New York Times of January 31, 1951: A YounG German Speaxs Up An 18-year-old German youth has become a hero of his people. Brought before 1 Com- munist tribunal in East Germany for dis- tributing anti-Communist posters and in- juring a policeman trying to arrest him, this young man, Josef Flade, told the court, “I love my liberty more than my life.” When sentenced to the guillotine he calmly assured his judges that “thousands will avenge my death.” This act of courage hes stirred all Ger- many as it has not been stirred since the heroio stand of Western Berlin during the Russian blockade. A wave of anger and protest not only in Germany but elsewhere in the world has now compelled the Com- munist regime to commute the sentence to 18 years’ imprisonment. This means, of course, that Flade is likely to be shipped to Siberia to die a slower death. But his trial and conviction have made a mockery of Com- munist freedom and justice, and have brought home a warning which, more than the anonymous fate of millions, will, by its individual impact, make the Germans wary of Communist traps. What is more, the in- cident shows that even in East Germany the Russians still feel the necessity of ylelding, at least on the public record, to the impact of popular opimion when !t is aroused suf- ficiently, Stop That Leak EXTENSION OF REMARKS HON. JOHN L. McCLELLAN OF ARKANSAS . IN THE SENATE OF THE UNITED STATES Monday, January 22 (legislative day of Monday, January 8), 1951 Mr, McCLELLAN. Mr. President, I ask unanimous consent to have printed in the Appendix of the Recorp an article by the Honorable Lindsay C. Warren, Comptroller General of the United States, entitled “Stop That Leak,” which appeared in the January 1951 issue of the DAR magazine. Mr. Warren's outstanding career as @ public servant in the House of Repre- sentatives and as Comptroller General is known to each and every one of us. I recommend his article for reading by every Member of Congress and by every American, I am informed by the Public Printer that the manuscript js estimated to make approximately 2% pages of the ReEcorp, at a cost of $205. There being no objection, the article was ordered to be printed in the Recorp, as follows: Srop THat LeaK——TEeamwork tn WASHINGTON Makes THE Taxpayer’s DotiAR Go FourTHEe (By Lindsay ©. Warren) The Korcan conflict has rudely awakened America from any dream of life-ss-usual in the immediate future. A strong national defense has never been more urgently needed, The long arm of military necessity already has reached into thovsands of homes. It will reach into every home, and touch each of us in some way. It will take an even larger share of our time and our effort and our money than it has before. Americans never have siirked their as- signed tasks in any fight. They stand ready to take up thvir belts to back up the firing line. They do not stint where their way of life is at stake. But they have always in- sisted that the time and the effort and the money they give freely Le well used, partic- ularly where it can mean the lives of fight- ing men, In these critical days, we should take a good look at what has gone beyore. Now is the time to profit from past experlence—not later. The hard lesson of past mistakes must be turned to our own advantage. We must search out and eliminate waste, and find new and better ways of doing whatever needs to be done. Every weapon must be brought to bear. One of the most powerful weapons we command is our great national wealth, It is unmatched in world history. But, great as it is, it is by no means inexhaustible. Properly harnessed, it immeasurably strengthens the sinews of war. Wasted or misdirected, {t can cost terrible hardship and even thousands of lives. It must he conserved, and carefully applied. These are the watchwords of our leaders today. The whoie Government is enlisted in the cause. The Congress worked day and night to enact wise legislation to provide the wherewithal to meet the emergency situa~ tion. The President has asked extraordinary powers to lead us in the crisis. Sweeping powers already have been given him to re- organize the executive branch, to consoli- date functions and cut off those which are unnecessary, and to replace outmoded meth- cds with modern ones. Vigorous action ale ready has been taken, but much remains to be done. It is being done under forced draft, to be ready for whatever the future brings. Mr. and Mrs. Citizen Taxpayer, and all the little Taxpayers, have a very special interest tn all this. Already barely able to lift groaning heads under the assault of record peacetime spending, they face even heavier going. They look to their Govern- ment to see that it is not in vain. As Comptroller General of the United States and the agent of the Congress, that is my vital concern. The General Account- ing Office which I head ts the Congress’ own agency to check on the financial deal- ings of the Government. It is the great bulwark erected by the Congress against illegal and improper spending. Its task, and mine, is to see to it that the public moneys are utilized effectively, as directed by the Congress which controls the purse strings. A591 It has been said, aleo, that the Comp- troller General is the personal Washingtot representative of every taxpayer. That is an apt expression of my feeling of respon- sibility. The fight against waste of the tax- payers’ hard-earned dollars is never ending. I intend to stay in the thick of it. Hardly less than the actucl firing line, it is one for our children and our children’s children. They will be called upon to pay for any weakening on our part now. That is why readers of this article have a very real and personal place in the fight. Now, let’s take a look at some of the things that have been and are being done with the public moneys. One bogeyman should be dispatched at the start, It is the popular misconception that fiscal mat- ters are at best a dry subject, to be avoided at all cost. It is, unfortunately, a mental block to full understanding of how our money is used. At the risk of oversimplifi- cation, much of it can be easily dispelled, The General Accounting Office—GAO in the Government vernacular—is one of the three central fiscal agencies of the Govern- ment. It is a part of the legislative branch. The other two are the Trensury Department and the Bureau of the Budget. They are in the executive branch. These three central fiscal agencies together do for the United States just about the same job every housc- wife does for her home. The money to run the Government is kept in the Treasury. It can be paid out of tha Treasury only as Congress directs, by appro- priations. It ie spent, or disbursed, by dis- bursing officers. The Bureau of the Budget prepares and presents the plan for use of the moncy to carry on the business of the Government. The plan, approved and financed by the Congress, is executed under direction of the President. The General Accounting Office checks up for the Congress on receipts and expendi- tures. It watches where the money goes, to see that it is spent legally. More than $40,000,000,000 being paid out annually, in- volving 2,000,000 Government officers and employees, is subject to audit by the Genoral Accounting Office. Obviously, no household budget would be worth while without definite knowledge of what household income and expenses are. The operation would soon collapse. That is equally true of Government finances. Yet, during my 16 years as a Momber of Con- gress before accepting the office of Comptrol- Jer General in 1940, I was forcibly struck by the lack of such essential information. No one could tell exactly how much was com- ing in from where, or how much was being spent for what. Finding the answer to this perplexing prob- lem was one of my first concerns as Comp- troller General. The vast expenditures of World War II emphasized the need for prompt and vigorous action. With untold future demands facing us, solution of the problem is of paramount importance to every American. The trouble was readily diagnosed. It was deep-seated in the hybrid atructure of Fed- eral accounting and financial reporting. That structure had been built, layer on layer and tier on tier, without any coordinated plan or supervision. No single agency or office had authority to enforce any correc- tive measures. It had Just “growed like Topsy.” With the trouble Isolated, the next and biggest step was to bring order out of chaos in the accounting and financial reporting. Bimply stated, this means that those who receive and spend the money must be shown how to set down in their books of account clear and accurate records of how much money comes from what sources, and how much of it is spent for what purposes. Then
A592 their transactions can be verified by an in- dependent audit. They can be held respon- sible for any illegality. The audit is made by the General Accounting Office, which, be- ing in the legislative branch, is entirely free of any dominance or influence from the ex- ecutive branch where the bulk of the spend- ing js done. Also, with proper accounting the public business can be more effectively planned and carried on, and the President, the Congress, and the taxpayers can be re- liably informed of the state of the country’s finances. The Secretary of the Treasury and the Di- rector of the Bureau of the Budget came forward to join me in a concerted attack on this great task. Together we set up and nearly 3 years ago put into actual opera- tion a joint program to improve and mod- ernize accounting and financial reporting throughout the Government. All of the agencies were invited to participate as part- ners in the program, and have responded enthusiastically. A special staff of highly skilled technicians was eset up in the General Accounting Of- fice to spearhead the program. They are working right in the agencies, in cooperation with their people. They are furnishing ad- vice and all possible assistance to modernize and streamline accounts there and tie them in with others and with over-all Government accounting. Tremendous progress already has been made under this joint accounting program, Each day brings substantial savings to the taxpayers and the promise of even greater ones in the future. The program is widely regarded as one of the most significant con- tributions in many years to economy and efficiency in government. Although the joint accounting program already has yielded valuable returns, the work done has pointed up, also, weaknesses in the laws on the subject. New legislation has been badly needed to achieve maximum results. As the designated agency of the Congreas on these matters, and one of the three central fiscal agencies, the General Accounting Office proposed such legislation in this session of Congress. The Treasury Department and the Bureau of the Budget, 4s the other two central fiscal agencies, par- ticipated in the drafting and strongly sup- ported the measure. ' The Congress enacted a new Budget and Accounting Procedures Act of 1950. It pro« vides additional means to bring about the complete revamping and modernization of Federal budgeting, accounting, and financial reporting, It is particularly timely as a new and potent weapon to strengthen our hands against the waste of public funds. Some idea of the benefits which will come from the improvement and modernization of accounting and financial controls throughout the Government can be gained from what has been accomplished, in a smaller field, with Government corporations. World War I spawned s number of them, and many others were created in the ensuing years. They Operated at public expense, but were not sub- ject to financial control by the Congress. Bome stayed in existence long after their work was completed. For example, one of them set up to requisition material for 1917— 18 atrplanes, still was being liquidated 30 years later, In 1045 there were 101 of these corpora- tions In what I told Congress was “an un- segregated, sprawling crop of Government functions and functionaries.” Often their charters were wide enough to drive a team of horses through. Some of the largest of questionable expenditures had been made by corporations, What was needed was to bring them under financial control of the Congress. Congress passed the Government Corpora- tion Control Act in 1945. It made the corpo- rations subject to a commercial-type audit by the General Accounting Office and pro- visions of law relating to the Federal budget. Annual reports of audits are sent to the Con- gress. They have helped reduce the number of corporations by more than one-third, and to persuade them to pay millions upon mil- lions in dividends into the Treasury. It is not to be thought that the General Accounting Office itself has been overlooked in the program for greater economy and effi- ciency. It is not an office of professional do-gooders holding ttself sacrosanct from panaceas prescribed for others. Quite to the contrary, !t is the first place we look to see if new and better ways of doing our own job can’t be worked out and passed on for the benefit of other agencies. This inward turning of our scrutiny has wrought amazing changes. A Rip Van Winkle, waking today, would not recognize the General Accounting Office of old. Hide- bound, antiquated procedures have been junked, and modern practices are replacing them. It ts a continuing process, directed always toward greater efficiency and economy in our own operations so that we may help others achieve the same goals. Each day the Office strives to do more and more of its growing duties, with less and less expense to the taxpayers. War-swollen payrolls stood at nearly 15,000 early in 1946. That figure now hes been reduced by about one-half. Yet, at the same time far greater and more effective services are being ren- dered to the Congress, to other Government agencies, and to the taxpayers. By setting our sights higher, we are using our ammuni- tion in more telling ways. The best evidence of the accomplished re= sults of this streamlining is the ever-increas- ing number of requests and calls for reports, advice, and assistance of the General Ac- counting Office. In 1 year, more reports are sent to Congress than in all of the years together before I came to the Office. Close cooperation and a helpful approach with the agencies in the executive branch have brought a similar response from that source, Several other laws recently passed are acaroely less important, from the standpoint of potential economies and increased effi- elency, than the Budget and Accounting Procedures Act mentioned previously. These, too, are parts fitting into the over-all pattern of coordinating and sensibly placing various Government functions which greatly affect the Public Treasury. One of the new laws is the Post Office Fi- nancial Control Act. Under an old law, the accounting for the Post Office Department has been done in the General Accounting Office. One of the basic principles of the joint accounting program is that the agen- cles are responsible for the keeping of their own accounts. Consistent with that prin- ciple, this new law provides for the Depart. ment to keep its own accounts on & busl- nesslike basis, subject to audit verification by the General Accounting Office. Another one of these new laws is the Federal Records Management Act. It im- poses on the Administrator of General Serv- ices the responsibility of leadership in an ase sault on the mountainous stacks and tomes of Federal records that threaten to en- gulf us. The very size and volume of the piles of records, papers, documents, letters, reports, and the like is Mkely to completely defeat any value they may have had when made. Some idea of the magnitude of the problem and of the task undertaken may be gleaned from testimony given before a congressional committee by an expert. He showed that if Just one page were added to each veteran's file in the Veterans’ Administration, the total thickness of the files would be in- APPENDIX TO THE CONGRESSIONAL RECORD creased by one and a quarter miles, And that is the only one of hundreds of agencies. This law will provide the means to scale and reduce the veritable mountain of Gov- ernment records. Its aims are threefold. First, what ts called the birth rate of rece ords will be controlled, Only useful and necessary ones will be created, and those wiil be in proper form. Second, records now in being but not serving any useful purpose will be eliminated. Third, more effective use will be made of those in existence or created hereafter which actually are neces- sary. The approach to the records management problem in this act has been likened to that which is working so well under the joint accounting program. Although primary au- thority to guide and coordinate the program 1s vested in the Administrator of General Services, all of the agencies also have been assigned their own special responsibilities and will participate as full partners. The General Accounting Office has given and will continue to give its full cooperation to get this program under way and make it a com= plete success. 80 much for some of the work being done to realize on past experience in handling public funds. All of these activities are cal-~ culated to lighten the load on the taxpayers. They will pay handsome dividends in the form of real economies of operation and re- duced waste, red tape, and duplication and Overlapping of functions, A great many other lessons, learned the hard way, should be kept fresh in our minds. They are the waste, extravagance, weak- nesses, and ineptitude which plagued us in two world wars, If continued or repeated, they can seriously impede our dofense ef- Torts, and might end in defeat. With such Practices rampant, the risks are multiplied. They must be rooted up and stamped out at all costs. The great majority of World War II ex- Ppenditures were for perfectly reasonable and proper purposes. But some were poorly con- ceived and executed; some were wasteful or wildly extravagant; some were so utterly ri- diculous as to indicate a reckless disinterest in the national welfare; and some were actu- ally criminal, The scandalous waste was so shocking that even in the press of wartime business my sense of duty forced me to report to Con- gress how certain officers and employees were dishing out and giving away the property and money of the United States with reckless abandon. Contracting officers were obli- gating the Government for payment of hun- dreds of billions of dollars. Many of them, of course, were capable and efficient. How- ever, some were highly inept and inefficient, Some showed unmistakable disposition or habit to ignore the taxpayers’ rights. And some were downright thieves and crooks! Our auditors found these officers allowing payments under cost-plus contracts for such extraordinary items as vitamin pills, juke boxes, and a $225 set of false teeth. These were not isolated instances; only the locale and things involved varied, One aircraft manufacturer used some parts to make planes, charging the Govern-~ ment $10,000,000 for them under a cost-plus contract. The money was paid out, and ev- eryone was happy—particularly the con- tractor. That ts, until the General Account- ing OMfice auditors came along and discovered that the parts actually had been bought and paid for by the Government from a different contractor. Every cent was collected back. Another manufacturer charged the Gov- ernment more than $1,000,000 as costs in- curred under a cost-plus war contract. We found that he had been reimbursed for the identical costs long before, under previous contracts. This money was promptly re- covered,
APPENDIX TO THE CONGRESSIONAL RECORD Three Ailes are in my office, pulled at ran< dom from many records of war contract uyer- payments. In the first case a single bill was overpaid by $185,500. In the second the same thing happened, to the tune of $222,000. In the third a bill for $20,000 was paid twice, The General Accounting Office got back every cent in these and thousands of other Iike cases. Small wonder that I strongly disapproved of the cost-plus type of contract and the way it was handled. Everyone was taken care of but the Government and the taxpayer. It ‘was enough to make the blood boll. I told the Congress from my seat it looked as though everybody and his brother were out to get the Government during the lush war years. These few examples are not intended to imply that we condone or countenance pica- yune obstruction, I see no economy in spending $100 to audit a @25 item, Nor should the purpose and the objectives of necessary audit controls be distorted so as to hamper an all-out war effort. General Ac- counting Office activities during World War II were geared to the war effort. I think it can be said with full justification that they in no way hindered that effort, but, in tact, were @ real contribution. For instance, every cent spent on the Man- hattan Project was carefully audited. High- est commendations were given by the mill- teary on the way it was done. The auditors didn’t ask, and didn't care to know, what was being produced. That project and many others of highest military priority involved billions upon billions of expenditures passing the watchful scrutiny of our auditors. Every conceivable type of payment and every kind of purchase and cost flowed by in an endless stream. Not once was the trust violated. While on the subject of collection of illegal and erroneous payments, the General Ac- counting Office is one Government agency which pays its own way. It has caused the recovery and replacement in the Treasury of more than 6700,000,000 just in the 10 years since I became Comptroller General. That is more than two and one-half times the cost of running the Office for the same period. But even this stupendous amount recovered in cash is relatively small beside the untold sums saved because the very existence of the Office prevents many more excesses. The sure knowledge that this independent con- gressional agency will examine into financial dealings is one of the most powerful of all deterrents to improper ones. One of the most unfortunate schemes ever contrived to short change the taxpayer was the method adopted to settle terminated war contracts. Long before the end of hostilities some people urged that broad concessions must be granted to aid in reconversion to peacetime production. Cries of impending chaos if war contractors were not assured of all they might ask for terminated contracts led to legislation on the subject that was full of holes. Those who propagated it, view- ing the profiigacy of wartime contracting, seemed to think we had best “let the tall go with the hide.” I appeared before every congressional Com- mittee having jurisdiction and warned that an independent audit of these proposed bil- lion-dollar termination settlements was es sential to prevent tremendous losses. But the Contract Settlement Act of 1944 left such an audit completely out of the scheme of things. It directed that terminated contracts be set- tled by the very contracting officers who, as a class, had clearly demonstrated their in- capacity for such an important assignment. Worse, it made the settlements final and conclusive. The act wrote the General Accounting Of- fice out of the picture, to all intents and XCVII~—App.——38 purposes, The Office could not even look for or question or collect back excessive pay- ments. It could step in only where there was fraud, and then only after the settlement Was consummated. The Hmitations imposed ‘nade it virtually impossible to prove it even where it was reasonably certain that settle- Ments were induced by fraud. All that I warned of came about when terminated war contracts were settled under this act. Practically forbidden by law to rectify any of the damage, nevertheless the General Accounting Office found out enough to show by overwhelming evidence that the finality provision in the law was a@ whopping big mistake that was costing the taxpayers hundreds of millions of dol- lars. The percentage of excessive payments and fraud reached an unprecedented high in the experience of the Office. Contract termination settlements for World War II are about wound up. It is hoped that there will never be @ recurrence of the costly results of this piece of hasty legislation. Such a law never again should be put on the statute books. There was one unexpected, though per- haps small, bonus from the experience with World War II contracts. It was the actual knowledge gained of the unbelievably low moral standards of some officers and em- Ployees entrusted with the conduct of offi- cial business in a great emergency. During the war I informed Congress of the dangerous habit of many officers and employees who accepted, or even themselves sought and solicited, wining and dining and expensive entertainment and all kinds of favors from war contractors. Such famll- jarity gives rise to a feeling of obligation, at the very least, and has a strong tendency to improperly influence those officers in the performance of their official duties for the Government. Heads of agencies issued direc~ tives strongly condemning it. But it per- sisted among the smal) fringe which is always ready to turn even national peril to personal profit. Instance after instance has been found of former Government officers going to work for the very firms whose contracts they had handled while with the Government. The dealings in these cases are, of course, closely scrutinized, but obviously if any illegal or improper motive is present the guilty one generally has been clever enough and had ample opportunity to cover his tracks. Existing statutes on the subject have had ® salutary effect. Unfortunately, they are not broad enough to cover the present situ- ation, and there has been a recent tendency to weaken them, particularly in wartime when they are most needed. Of course, no one would urge a law to penalize perfectly legal and ethical steps of Government em- ployees to obtain private employment, or of private industry to obtain qualified em- ployees. What should be guarded against are set-ups of the kind which are contrived at the expense of or risk of loss to the tax- payers. After careful consideration of all phases of this matter, upon the special request of a United States Senator, I recently sub- mitted suggestlons for legislation designed to strengthen the law in this respect, while at the same time not in any way hampering normal and legal business activities. These are a@ few of the more important things I have learned in over a quarter of a century in Washington. They are facts, pure and simple. They are not offered or in- tended to imply any undue criticism, or any pride of accomplishment. They will have served their purpose, and more, if from them we have gained the knowledge to save each of our taxpayers just s few dollars on his or her yearly tax bill, A593 Price Fixing Is An Economic Narcotic— The Record Proves It EXTENSION OF REMARKS or HON. HOWARD H. BUFFETT OF NESRABKA IN THE HOUSE OF REPRESENTATIVES Monday, January 29, 1951 Mr. BUFFETT. Mr. Speaker, under leave to extend my remarks, I am enclos- ing a letter that appeared recently in the Washington (D. C.) Times-Herald. In six paragraphs the writer has summed up the high lights of price- fixing attempts over 4,000 years of history. As he indicates, price fixing has never worked. As a hot war economic nar- cotic, it may have merit. Under current conditions, it is at best a pious humbug; at worst, a cunning betrayal of trusting and patriotic citizens. Vorcr or THE PEOPLE CONTROLS The history of controls is a record of 4,000 years of enslavement, Hammurabi (2285- 2242 B. OC.) had wage controls for boatmen, reapers, threshers, shepherds, laborers, ar- tisans, bricklayers, tillers, stone cutters, milk- men, and carpenters. He regulated builders’ fees and warehousing, and rentals of cows in milk, calves, oxen, wagons, freight and passenger boats. He brought nothing but poverty, destitution, and high taxes to the land between the two rivers. The Hittite code (1350 B. C.) attempted to establish wage and price control but they had to be abolished. Henry WI and George It tampered with the prices of grain and bread until an indignant Parliament kicked the royal edicts out the window, Edward II tried to control the production of seafood with the result that all fish disappeared from the markets of the British Isles. France tried to put under’ iron control 39 necessities of life through the Committee of Public Safety. The law had under national compulsion “all who help handle, transport, and retail products of prime necessity.” The people resisted these compulsions, Finally the battle became so violent that a counter- revolution took place, and on July 23, 1704, Robespierre, Suint-Just and Oouthon were beheaded as enemies of the people. The Roman Emperor Diocletian tried the same game. Hig words read like Truman talks, Diocletian’s system was based on the highest motives of making the whole nation participate “in the blessings of that peace for which we have laboriously striven.” It was necessary for the rulers like watchful parents of the whole human race to help the people from above. Finally on May 1,306 A. D., the Romans gave Diocletian a swift kick in the pants. The previous partial controls of Ti- berius, Commodus, end Alexander Severus also ended in failure, A little perusal of American history shows we tried controls as far back as the Rev- olutionary War. On April 8, 1778, the Con- tinental Congress record states: “It hath been found by experience that limitation on the prices of commodities is not only ineffective for the purpose proposed, but likewise pro- ductive of very evil consequences to the great detriment of the public service and grievous oppression of individuals.” There must be some other answer besides regimentation. RVSSELL KeININGOHAM, Richmond, Va.
A5#4 An Outstanding Job EXTENSION OF REMARKS or HON. WALT HORAN OF WASHINGTON IN THE HOUSE OF REPRESENTATIVES Monday, February 5, 1951 Mr. HORAN. Mr. Speaker, under leave to extend my own remarks in the Appendix of the Recorp, I am pleased to include three short articles from the annual progress edition of the Spokane Spokesman Review. This year's progress edition is truly journalistic and printing art. All of the stories are short and very comprehensive. Each page is richly illustrated in full color The three articles included are short subjects with which, by their nature, Members of Congress are familiar and should prove interesting. Wortp's Most Uskrun RIVER Key to the economic development of the Pacific Northwest, including its inland em-~- pire, is Columbia River. This stream and ita tributaries drain 259,- 000 square miles, of which 220,000 square miles are within the United States. The other portion constitutes the southeastern eorner of Britiah Columbia. That part of the Columbia Basin east of the Cascade Mountains comprises about 240,000 square miles, depending on the ex- act spot between Bonneville Dam and The Dalles where the line is drawn. Waters of this basin were used to turn g@tietmmil] and sawmill wheels more than 6 century ago. Hydroelectric development came in the late 1880's, first on Spokane River. Spokane, less than 16 yeara old at the time, was one of the first really electrified Cities tn the United States, and the first in the West . Waters were used for irrigation early in the last half of the nineteenth century, the Walla Walla Valley being the cradle of this development. Mormon settlera from Utah also introduced irrigation into the Salmon River country. Steambosts plied the rivers and many of the lakes long before railroads penetrated this part of the country. Firat surveys of the Army engineers, look- ing toward development of the Columbia’s main stream as far up as the international boundary, had navigation as the primary consideration, power as a secondary objec- tive, and irrigation only as an incidental But in the last 85 years @ program for comprehensive development of the basin has been shaping up, finally coming into official recognition as a joint project of the several Btates, the Army engineers, and the Interior Department's Bureau of Reclamation. It embraces power, irrigation, navigation, ficod controi, and fisheries, Gevern] ideas havo been advanced as to how this over-all objective may best be ac- complished. They include an improved vol- untary association of interests such as now exigts, an interstate and international com- pact under congressional sponsorship, a Fed- eral authority or administration, and a superdistrict similar to the hundreds of dis- tricts that have already reclaimed 38,700,000 acres between the Cascades and the Rockies. The number of separate projects grows from year to year as new possibilities are Tecognived, so that any estimate of the po- tential irrigated acreage or the possible power development is subject to change with every scientific advance. A few years ago, for instance, the ultimate goal was 8,500,000 irrigated acres, and 80,- 000,000 kilowatts of electrical energy. But both figures may be revised upward by a few simple devices such as sprinklers for irrigation (see page 24, part 4), and ar- rangements by which water already used for irrigation may be dropped through numerous amall plants to produce still more juice, These possibilities involve another contro. versial question—to what extent revenues of power may be used to subsidize reclama- tion projects in which the farmers could hardly charge enough for their products to make the. irrigation installations profitable by themeelves. That also brings in a question as to uni- form power rates. ‘ More than 130 big and little dams now pour juice into a power pool that extends from central Utah to the British Columbia coast, The Federal and municipal systems, pub- He utilities and private industrial planta al- ready joined into that Northwest power aid each other by displacements of electrical energy rather than by transmission over long distances. The installations, including several steam plants, extend tar beyond ‘she Columbia Basin iteelf—into the Missouri Basin in Mon- tana, into the Balt Lake Basin in Utah, and to the swift-flowing short rivers of the Wash~ ington and British Columbia coasts. Power hook-ups with California hydroelec- tric systems are considered probable within the next 5 years. Even before that, the independent systems on Kootenay River in British Columbia are likely to be added to the grid. Existing power planta in the Northwest grid develop a total of 5,300,000 kilowatts, of which more than 38,000,000 kilowatts are within the basin. Plants now under construction or author- ized—including a few that have hard sledding because of objections by fisheries or other in. teresta—will add about 3,750,000 kilowatts. That includes a Washington Water Power Co. proposal at Cabinet Gorge, on Clark fork of the Columbia (Pend Oreille River), just below the Idaho-Montana State line. Idaho Power Co. and Montana Power Co, are also building new plants in their respec- tive areas, mostly on the upper Snake River, a tributary of the Columbia, and on the upper Missouri. ONE DOZEN INTERNATIONAL RIvERS Twelve rivers cross the international boundary between the Rockies and the Cas- cades—three of them more than once. Farthest west is the Similkameen, which rises in Washington, flows north across the line and returns after recetving the waters of the American-sourced Pasayten and Ash- nola, The Okanogan, which rises more than 100 miles north of the border, receives the Similkameeon at Oroville, Wash. Kettle River, rising at Mount Monashee, 80 miles above the border, crosses the line thrice~at Ferry, Danville, and Laurter. The main Columbia crosses the line between Waneta, B. O., and Boundary, Wash., just below the mouth of the Pend Oreille, which has crossed into Canada some 1 mile east. Kootenay rises tn Canada, enters the States at Gateway, Mont., and leaves at Porthill, Idaho. Two of its tributaries, the Yak and Moyle, rise in the Dominion and enter the States. Another, Wigwam River, rises in the States and flows into Canada, Finally, Flathead River rises in the Canadian Rockies and enters the United States, and as it is the principal branch of the Pend Oreille, 1¢ might be sald to cross the border twice. Creeks and minor forks would make the lst even longer. APPENDIX TO THE CONGRESSIONAL RECORD One Hunprep and Krawry Biuiton Bosrp Fexr Growine ' Thirteen billion board feet of Idaho white pine extend from the eastern suburbs of Spokane, across Idaho into Montana and southward about to Kooskia, Idaho, Washington has about a billion feet, Mon- tana half as much again. The rest is in Idaho. It is the greatest stand of white pine on earth. Yet this is only about 8 percent of the standing timber of the inland empire, esti- mated by forest and lumber company experts ag 180,000,000,000 board feet of potential houses, bridge timbers, pole lines, furniture, apple boxes, packing cases, ships and tooth- picks—not to mention paper such as that on which these words are printed. Taking the region as a whole, new timber is being grown as fast as ripe timber is cut. Literally, these foresta are eternal. Trees are cut, but the foreats under intelligent logging practices and the expanding sua- tained yleld program will reseed themselves and last forever. “Boxing the compass” from the gorge where the Columbia breaks through the Cascades, you find the Ponderosa pine divid« ing the landscape with the Douglas fir. The latter is predominantly a coast tree, but grows also on the east side of the Cascades, up through the Okanogan and across the Canadian line. Larch becomes an important factor in Okanogan County. Ponderosa continues eastward almost to the Idaho tine, mixed in with cedar, hemlock, and the true firs. Typical operation is Columbia Lumber Co. at Kettle Falls, Wash., which cute 80 percent Ponderosa, 20 percent larch and fir. Yakima county has better than 9,000,- 000,000 feet of standing softwood, Okanogan about the same. In Montana, Flathead and Lincoln fn the northwest corner have better than 20,000,- 000,000 feet together, Idaho's leading timber counties are Clear- water and Idaho, with about 28,000,000,000 board feet between them. Swinging west tnto Oregon, you find about 30,000,000,000 board feet in the Blue Moun- tains, where Ponderosa pine predominates, and some of the area's largest milis are situated. The California Tie Cmeenmmeeen’ EXTENSION OF REMARKS HON. HENRY M. JACKSON OF WABHINATON IN THE HOUSE OF REPRESENTATIVES Friday, February 2, 1951 Mr. JACKSON of Washington. Mr. Speaker, under leave to extend my re- marks, I wish to include the following editorial by Gus Norwood, executive sec- retary of the Pacific Northwest Public Power Association, together with a letter to Mr. Ford Northrop from the Secre- tary of the Interior, and Mr. Northrop’s reply: {From the Pacific Northwest Public Power Bulletin) Waar Witt Be Tue Patce? The Bureau of Reclamation’s proposed Cal- ifornia intertie appears to have appreciable economic, engineering and national defense merit. However, the Bureau uses these rea- sons merely a8 camoufiage to hide the real purpose of exacting a large toll gate profit which will subsidize the Central Valley pro- ject at the Northwest power user's expense.
APPENDIX TO THE CONGRESSIONAL RECORD The Bureau now sells Shasta power to Pacific Gas & Electric at 5.2 mills average and that company is a fairly willing customer in order to insure that no other customer steps in. The 188-mile, 230,000-volt Klamath Falls- Shasta intertie would cost $6,000,000 on which operating expense, interest, amortization, and line loases might run 8 percent or @480,000 per year. If the line carries 600,000,000 kilo- watt-hours southward each year, the Bu- reau's cost would be only 0.8 mills per kilo- watt-hour or at most 1.0 mill. Since Call- fornia rivers are low or dry in summer when irrigation pumping peaks demand the most power, the Bureau would be able to sell all Northwest summer dump as firm power and obtain at least 5.2 mills, and by taking off 1.00 mill for its costs, the Bureau could pay Bonneville Power Administration 4.2 mills for each kilowatt-hour at the California boundary. In Nght of these facts the Bu- reau’s offer to pay the Northwest only 1.55 mills is ridiculous and outrageous. But that is not all, Last year the Bu- reau’s powerful lobby killed the authoriza- tion of Hells Canyon dam as a Corps of Engi- neers project. And furthermore the Bureau intends to kill the authorization of Hells Canyon dam unless a huge subsidy is pro- vided from power for the Mountain Home irrigation project, The Bureau's plan is to have the Northwest absorb the artificially high priced Hells Canyon power by increas- ing the $17.50 (the Bureau never did like this low rate) wholesale rate. Then the North- west is expected to transmit Hells Canyon power 400 miles, absorb line losses and down- price the power at the California boundary to 1.55 mills thereby enabling the Bureau to clean up a net profit of 26.5 percent annually on the $6,000,000 intertie in addition to a similar profit at the dam. No private power company has ever made such outrageous toll gate charge proposals. The Pacific Northwest needs the revenue from the California intertie or from an equivalent summer industrial load in order to keep wholesale BPA rates from jumping at least 20 percent in 1954. But the Northwest should insist on at least 2.6 mills per kilowatt-hour at the California boundary for another reason, namely, as a partial safeguard against de- veloping in the Bureau or in the Interior De- partment (in which the Bureau is the domi- nating force) any notion of squatter's rights on Northwest power, It is still our power and the Bureau can take it or leave it at the price desired by Northwest people. This whole situation, particularly as it illustrates the Bureau's domination over the Interior Department, suggests the need tor asking Congress to amend the Bonneville Act to make the Bonneville Power Adminis- tration a business-type, power wholesaling corporation independent of the Interior De- partment. We also think the Army should build Hells Canyon Dam, My Drar Mr. Norrurop: I have recom- mended to the President that the Federal budget for fiscal year 1952 include » request for authority and funds for construction by the Bureau of Reclamation of a 230,000-volt electric transmission line, which will con- nect the Bureau's Shasta project in Call- fornia with the Columbia River Power Sys- tem. I call this matter to your attention pur- suant to my conversations with you in Everett, Wash., on March 29, 1950. You will recall on that occasion we discussed the mat- ter of this interconnection in some detail, At that time I told you that it was not my intention to seek authority for this intertie in the immediate future, and that I would communicate to you promptly any change of policy tn this regard. During the -past few. months interna! {onal developments have made it necessary to re~ consider this matter in the light of our rapidly developing defense requirements, Accordingly, the Defense Power Administra~ tion, which has been established within the Interior Department, has made a careful study of the Oregon-Callfornia tnterconnec- tion, and has certified it as essential to the defense power program. The President is reo- ommending authorization by the Congress as @ defense measure, The Oregon-California interconnection will provide relief to the serious power shortage that exists, and will continue for some time to exist, in the Pacific Northwest. This area will have important defense industries de- pendent, to the extent of approximately 300,000 kilowatts, upon interruptible power. Tn order to advance the production of alumi- num, magnesium, and other metals and chemicals, including additional aluminum plant capacity scheduled for the region, the interruptible power supplies should be made firm as rapidly as posstbie, and additional firm power supplies should be provided. The Oregon-California interconnection will make substantial contributions to these objectives. Specifically, the Northwest power pool will gain 200,000,000 to 400,000,000 kilowatt-hours for a 6 months’ low-water period through the flow of steam energy from California, to be delivered over the Oregon-California inter- connection. On a 12 months’ basis, the kilo- watt capacity to the Northwest will be in- creased on the order of 100,000 kilowatts, There will be gains of similar magnitude in the California area through tho displacement of oll-fired steam generation by unusable exces.: hydro from the Columbia River sys- tem. There will be a still further gain in revenues accruing to the Federal Govern- ment from the sale of energy which otherwise would be unsold. These are benefits which cannot be over- looked from a defense standpoint, Without them possible curtailment of power deliveries in the Pacific Northwest could be much more drastic than otherwise would be necessary. As you know, I have been fully conscious of the concern which some intereste in the Northwest have felt relative to the policy implications arising from the construction of this line. However, I believe pending defense power-load developments in the region should provide a basis for considerable reassurance. I shall be pleased to have any comments or suggestions you may have to offer on this matter. Sincerely, Oscar L. CHAPMAN, Secretary of the Intertor. PresIDENT NoRTHROP DraFrs NWPPA REPLy ON INTERTIE My Dear SECRETARY CHAPMAN: I very much appreciate your January 4 letter, in which you indicate that the Defense Power Ad- ministration and the President have made a determination that a 230,000-volt intertie between the Columbia River Power System and the Shasta project is essential to the na~ tional defense. On this subject I have noted (1) the Federal Power Commission report dated February 1950; (2) the address of Mr. William Dittmer, of the Bonneville Power Administra- tion at the Eugene meeting of the BPA Ad- visory Council on April 29, 1948; (8) the ad- dress of Mr. Ben Creim, then Regional Power Manager, United States Bureau of Reclama- tion, Sacramento, at the Port Angeles con- vention of the Northwest Public Power Aasso- ciation on August 12, 1048; and (4) the ad- Gress of Mr. Holland H. Houston, engineer for the Public Service Commission of the State of ‘Washington, at that same convention and as later published in the November 1948 issue of Electrical West. : A595 On the basis of this information there. would appear to be an sppreciable hydro- logical and electrical load diversity between the central California power system and the Northwest power pool. However, it is also appreciated that the load centers of the two Power systems are separated by great dis. tances, and that these diversities, appreciable as they appear today, will be considerably less in the future as there is a leveling off of the differences between power resources and loads within each power system. Four factors appear to be in operation to reduce the present diversities: (1) As the central California system becomes more de- pendent on steam generation, the hagard of a dry year will diminish; (4) it is apparent the winter peak and energy loads in central California are rapidly overtaking the tradi- tional summer peak caused by irrigation pumping; (3) as the Paolfic Northwest adds upstream reservoir storage, the seriousness of a low-water year will lessen; and (4) the growth of Northwest irrigation loads and in- terruptible industrial loads will reduce sum- mer surplus energy. I am not in the best position to fully evaluate the effects of these factora in reducing the diversities between the two regions on the economic feasibility of an intertie or on what might be the proper period for amortizing the cost of the new facilities. In thinking how best to define the rela- tionships which would be involved in inter- regional power transfers, I would like to submit the following principle as a premise: Just as there have developed in each river basin certain riparian rights and a right to the consumptive use of water, and just as such use of water within each region has become recognized es being the best use in the national interest, so also the rights of each region to prior use of its power must be regarded as the proper index of how such power can best be used in the national interest. Thus, the regional and national interests are identical, In order to provide reasonable protection to the Pacific Northwest in regard to its greatest resource, namely, low-cost power, I trust that those who draft the necessary enabling legislation will give consideration to the following: 1, That this line shall not be authorized without prior establishment of at least the governing principles and policies which will apply to power transactions and financial accounting for benefits and obligations. 2, That no power shall be exported from either region if that power can be used within the region in which it was generated, and in any case that no prime power be exe ported. 8. That power scheduling shall be on a day to day basis only, and that any contracts entered into which may depend on imported power shall provide that the prower is inter- ruptible. 4. That exported Northwest power shall be priced at the California boundary on the basis of the market value at the point of consumption in California less allowance for line losses and carrying charges on the fae cilities in California. Under present power marketing conditions, Northwest power shall be considered worth not leas than two and one-half (2.5) billa per kilowatt-hour at the California boundary. In stating the position af the Bureau of Reclamation, Mr, Ben Creim, in his August 12, 1948, Port Angeles address, gave as one of the purposes of the Oregon-California intertie “an improvement in the basic feasi~ bility of the very necessary Central Valley Project (the repayment schedule for which was predicated on ot] at a dollar a barrel).” I would like to state as a matter of record that the Northwest Public Power Assoctation, through resolution of its Board of Trustees, does not subscribe to the use of power Tevenues for subaidizing irrigation. Rather
A596 our view, like that of the President’s Water Resources Policy Commiesion, ts that the full benefits from the power resources of & region shall accrue to the power users of that region. The Federal Power Commission report on the intertle states: “Under normal condi- tions, the transfer of firm power from Call~ fornia to the Pacific Northwest would not be economic, owing to the relative high cost of hydro power with {tts steam support in California. It was concluded, therefore, that only secondary or steam-replacement power should be considered in this study.” From this statement it would appear that instead of delivering steam generated energy from California to the Northwest as you pro- pose it would be more advantageous to build a steam plan near the Northwest load cen- ter, which could be assumed to be the lower Columbia River area. Thus there would be saved the higher costs due to transmission capital outley and large energy losses, and the use of critical materials required in the construction of transmission facilities. A steam plant near a load center is a valuable factor in furnishing continuity of service as well as eliminating much of the cost of trans- mission. It is my beltef that a steam plant can be built in approximately the same length of time that is required to construct an industrial plant which would be engaged in the production of materials and equip- ment needed for war purposes. Before making final plans for construc- tion of the intertie, which would use scarce materials and manpower, there should be full explanation of how delivery of energy and payment for the same will be handled. The Bureau of Reclamation hos no steam genera- tion plants, therefore it must be assumed that the Pacific Gas and Electric Co. will furnish energy to a California power pool. The company must first state that it can and will supply energy, and second that the price will be equal or less than the cost of steam energy at the Northwest load center. I understand that the Shasta Dam res- ervoir has never been full. This would tndl- cate the Bureau does not have any, or at least very litle, hydro which it could spare. In considering the possibility of sending 200,000,000 to 400,000,000 kilowatt-hours over & 6-month low-water period to the North- west from California, I am reminded, for comparison, that our small electric system of Eugene sold in 1950 to its general retail cus- tomers the total of 203,000,000 kilowatt- hours. Mr. Holland H. Houston points out in his address, that, at the historical rate of in- crease in use of power the optimistic hydro potential of the Northwest will be exhausted by the year 1972. When it is considered that two decades is a short time in the life of the Northwest, and that it takes from 4 to 6 years’ time to build a major hydro plant, it is not to be wondered that the people of the Northwest are concerned about their most important resource, Long before the year 1972, consideration must be given to pre- paring for dry years through the building of steam plante. Should not now be the time to build a steam plant in a Northwest load center? | If the full benefit of the intertie could be assured to the power users of the respective regions on a fair and understanding basis, there would undoubtedly be greater support for the advantages which this interconnec- tion might give, and there would be less op- tion because of fears in the minds of lorthwest people that some of their most valuable resource, low-cost power, would be lost to the region. I thank you for the opportunity of com. menting on your proposals and explanations, Respectfully yours, ¥, Forp Norrsrop, President, Northwest Public Power Assoctation, JANUARY 19, 1961, There Should Be One Basic Policy EXTENSION OF REMARKS HON. CHESTER E. MERROW Or NEW HAMPSHIRE IN THE HOUSE OF REPRESENTATIVES Monday, February 5, 1951 Mr. MERROW. Mr. Speaker, under leave granted to extend my remarks in the Recorp, I include therein the follow- ing editorial from the Carroll County In- dependent, published in Center Ossipee, N. H., Friday, February 2, 1951, entitled “There Should Be One Basic Policy”: Trere SHOULD Br One Basic Pouicy There 1s more argument and uncertainty about the present draft laws and status of men subject or not subject to draft than per- haps any one phase of our current rearma- ment program. Students in high schools and colleges do not know whether to walt to be called, or to volunteer now and pick the branch of the service they want. Brilliant students headed for medical, dental or scientific schools do not know ff they can secure de- ferment. Educators say that 18-year-olds should or should not be drafted. Farmers want exemption for their sons and manu- facturers want exemptions for certain skilled men. Before there 18 any talk about exemptions there should be one basic policy, that a man on becoming 18 years of age, or graduating Trom high school or academy, whichever comes last, Owes 18, 21 months, or 2 years service to his nation. No man should be allowed to spend more than 6 years in high school or academy, to complete the work, the Treason being obvious. With the basic principle accepted, then it will be time enough to talk about exemp- tions. It might be well to exempt the top 5 percent, or top 10 percent of men of high mental capacity who are going to medical, dental, and scientiNc schools, The Nation can allow no gap in the classes of men coming from these schools. They are absolutely necessary for national defense. Obviously such men would be subject to a 2-year draft as soon as they receive their diplomas and be assigned to such duties where they will make their talents most valuable. We cannot hope to mcet the Russians or the Chinese on a man to man basis. There are just too many of them. Even if our men could meet and defeat them when out- numbered 3 to 1, they would still win, for they can feed riflemen into the lines in- definitely. To hold the Russians and the Chinese by power politics, or by actual combat, we mnust overmetch them witb technical ability, That is, our superior machines and fewer men must hold their ordinary machine and greater number of men. One swift way to national suicide is to take young men who promise to be outstanding physicists, mathematicians, chemists, and electrictans and put them into the ranks. Some may see that this is class legislation. Tt is not. Brains just do not care where they are born, or tn what clase of society or in what race, Handsome is as handsome does. It ia impossible to take a student and by drafting and attempting to train men by hurry-up methods, APPENDIX TO THE CONGRESSIONAL RECORD There ts no substitute for slow thorough steady training, done in an unhurried manner. Tf we had had such a policy of universal military training, begun in 1912 and carried through to date, it is almost certain the First and Second World Wars would never have been fought. Now it is quite possible that we are headed straight for the third world war, all because of lack of such @ policy, carried through on a long time, permanent basis, Veterans’ Administration Hospital at Deshon, Pa. EXTENSION OF REMARKS oy HON. EDWARD MARTIN OF PENNSYLVANIA IN THE SENATE OF THE UNITED STATES Monday, February § (legislative day of Monday, January 29), 1951 Mr. MARTIN. Mr. President, I ask unanimous consent to have printed in the Appendix of the Rzcorp an editorial entitled “Our Deshon Hospital Takes it on the Chin,” published in the Butler Eagle of February 2. There being no objection, the editorial was ordered to be printed ‘in the Recorp, as follows: Our DesHon Hosrrray TAKES It ON THE CHIN Senator Epwarp Martin, in filing a pro- test with General Gray, VA Administrator, against closing the medical and surgical por- tions of Butler's Deshon Hospital, takes the position that this hospital facility 1s needed now more than ever. He has asked for a complete report, in- quiring how the action can be justified. Senator Martin recalled that when the State sought to acquire the hospital, the Veterans’ Administration resisted at every atep. Deshon, under present orders, is to be re- duced from an 855-bed hospital to 500-bed capacity for tuberculosis patients only, Butler's Deshon Hospital is the only hos- Pital operated by the Veterans’ Administra- tion for the treatment of tuberculosis in the three States of Pennsylvania, New Jereey, and Delaware. Within 90 days, more than 200 patients must be transferred to Aspinwall and Erie, with a &0-percent reduction in the hospital Bi e It ts diMcult to understand the reagon for the unexpected ruling. Why was it necessary to launch construc. tion of two huge VA hospitals in Pittsburgh to cost many millions of dollars when Deshon could easily have been enlarged? Could this be politics? Everywhere, you are told, veteran hospitals are crowded to capacity, but it turns out that 100 beds are vacant at Butler and 200 beds are unused at Aspinwall, We understand Butler's Deshon never was filled to capacity since it was taken over by the Veterans’ Administration a number of years ago. “It seems absurd to be spending millions of dollars for additional bed capacity when the Butler hospital is available,” Senator Maatin said tone fienator Maxrrmn said makes sense uA Ever since Butler's institution was built at a cost of several millions, it has been Kicked around, first by the State, then by the Army, and finally by the Veterans’ Administration.
APPENDIX TO THE CONGRESSIONAL RECORD Jesus, Prince of Peace EXTENSION OF REMARKS HON. DANIEL A. REED OF NEW YORK IN THE HOUSE OF REPRESENTATIVES Monday, January 29, 1951 Mr. REED of New York. Mr. Speaker, under leave to extend my remarks in the CONGRESSIONAL ReEcorp, I am inserting the sermon of Rev. James W. Fifield, Jr., minister of the First Congregational Church, of Los Angeles, which he deliv- ered on December 3, 1950: JESUS, PRINCE OF PEACE This sermon has been rankling within me for a long time, Last Friday a widow whose 19-year-old son has presumably been killed in Korea, telephoned me expressing shock, sadness, and also bitterness. When she said, “There is nothing much that I can do but bear my sorrow, tor no one will listen to any- thing I can say,” I resolved to be her spokes- man. I think her bitterness is justified. Our casualties in Korea already are the third largest of any war in our history. The day in which Jesus walked the earth as the Prince of Peace was not unlike our own. He indicated people must live togeth- er in order to live at all. Palestine had actu- ally been fertilized by its best blood. The Assyrians and Babylonians had recurrently come from the north, the Egyptians from the south, and finally the Romans had made their conquest of Palestine. For generations there had been armistice after urmistice but no peace. Americans have been stunned by the de- velopments within our country and the world during these past years. A friend of mine said two wrestlers banged their heads together so hard that they fell down sense- less. The first one to come to and get up, jumped on the other, and won the bout. Our people, like those wrestlers, have been stunned. We hope that they will wake up before our mortal enemy pounces upon them. We have not wanted to belicve that there was betrayal in high places for we have al- ways kept a halo around certain offices in our country. Even when we disliked things that were happening and were suspicious of things we saw, we were unwilling to “throw mud” because of patriotic devotion. Here's a letter from a man who has just gone back into the Army after 3 years of civillan Hfe. He comments that it is an “unrecognizable Army.” He says that they have nothing to fight a war with and no will to fight one anyway. In my contacts with personnel at Army installations, I have heard young lads inquire, “What are we going to fight for?” They feel it is unfair to send them out to fight without adequate preparation to win another victory when the splendid victory so heroically won in World War II has been literally thrown away. Their question, “What would we fight for?” is not easy to answer. If there were clear and righteous issues and honorable, com- petent leadership, all would be ready to make whatever sacrifices were required and eagerly. There is deepening anxiety everywhere and especially among more thoughful people, War budgets are expanding. Matériel and personnel are being drafted. New appropria- tions are being rushed. The use of atom bombs is being considered. The crisis comes nearer each passing day and our Nation, having been unprincipled in its policies, must now reap as tt sowed, according to the teachings of Jesus and the laws of God. We encouraged Russia's dream of world- domination. At Yalta and other conferences, our leaders betrayed us, sold us out, insisted that Stalin take even more than he had dared request, incredulous as that seems, We do not yet know the extent of our com- mitments because our State Department has resorted to secret diplomacy. We imple- mented Russia’s visions with money and matériel, as well as by the betrayal of our allies in her behalf, Our betrayal of China and of European nations now behind the Iron Curtain is one of the blackest pages in American history. In South America, Eu- rope, and the Orient, we have tried to pur- chase power, friendship, and good will with money, ignoring the Christian precept that spiritual values cannot be bought with money Tasting power, we have made com- mitments which we cannot possibly keep. “The chickens are just beginning to come home to roost” Korea is only the first of our pledges calling for redemption. Other com- mitments made by our officials represent be- trayals of a rank and desperate sort. We have used the United Nations as a screen, just as England and France used the old League of Nations. The League was con- ceived by idealists with the finest of motives but, alus, it was doomed through misuse. No doubt, the originators of the United Nations included many noble idealists. But Alger Hiss and others, who are at least suspect, implemented the vision in ways which caused the United Nations to hamstring the free world. It is not right for those gullty of treason or suspect to be out on bail when our boys are being killed tn Korea. Some of you still believe in the United Nations. I respect the sincerity of your be- Hef but do not share it. Use your own judg- ment concerning the United Nations. We dare not be unrealistic or impractically ideal- istic in such matters when our boys are dy- ing in Korea. There sre only two real powers in the world today—the United States and Russia. The other allies do not really count in determi- nation of major issues. The United Nations is what America wills it to be. It ts certainly true that the United Nations would not move contrary to Americn’s will, because America’s withdrawal would mean its total collapse. In practical effect it is the United States and Russia that are fighting in Korea. While we have been engaged in this inter- national debacle the moral and spiritua) ulti- tude in our Nation has dropped to a new low, in part because of the example of the Federal Government. The mass corruption of the population is the fault of pressure groups, unscrupulous politicians, and boss rule. Many in this congregation today stoop to things they would not have done a year or two years ago. Business ethics, social ethics, personal ethics are often gutter level, as re- fiected by comic sheets, gangster movies, radio programs, magazine articles, etc. It is prob- able that American morals are at the lowest level in our Nation's history, including the carpetbagger era at the close of the Civil War, Many of the things which I am saying you have been thinking but have not said, be- cause, stunned, like the wrestlers, you hoped they were not true or because you did not wish to offend. Perhaps you trusted our leaders because you or your relatives are on Government payrolls or receiving subsidies. Many have become unspeakably beholden to our Government, This situation is so serious that there is no easy solution. However, the situation is not hopeless, and with courageous action and God's help, our Nation and our civilization can yet be redeemed, The pattern for re- demption and for effective, practical action is as follows: (1) First, repentance for past sins and er- rors. The starting point to forgiveness and redemption is repentance. There is no other starting point. This is no time for arrogance in high places or low, We need to admit the folly of our ways, and to repudiate leaders who have betrayed us and our Allies, whether A597 knowingly or in ignorance. We cannot have too much sentiment about leaders in Wash- ington when our youth are being killed in Korea. (2) We must clean out our own fifth col- umn. In Government this means that every person, either guilty or even suspect, should be summarily and immediately eliminated. This includes those who profess a so-called socialism which is velled communism. But we must, also, eliminate those guilty and suspect of communism in our trade unions, our schools, our colleges, our newspapers, our magazines, our business organizations and even our church officiaries. We must ready ourselves for a finish fight—the stake being survival. (3) We must aid every responsible nation that fights communism regardless of whether there is any other point of agree- ment in culture or religion or politics. We need every ally on which we can count in this great moral struggle. (4) We must find ways and means to en- ist anti-Communists behind the iron cur- tain and make them effective as rebels, arm- ing them and directing them. This may be one of the most important steps which can be taken, (5) We must break relations with Russia, We should never have recognized her present regime. We must, also, break relations with her satellites and drive out all Russian agents and agents of all satellite nations from our country. We must stop shipping matériel to Russia or to any satellite nation or to any other nation which will not give solemn as. surance that 1t will not reach Russia or a satellite of Ruasia. (8) We must eliminate Russia from the United Nations. If that cannot be done, then the United States must withdraw from the United Nations, and promptly. We must stop the daily insults and intrigues which emerge from hostile, plotting, scheming, dangerous delegates and hangers-on at the United Nations. (7) We must require all our allies to take the same steps, terminating their associa- tions with those whom we plainly label as our enemies. The resources of the United States cannot continue to support enemies or even neutrals. They must be used only for ourselves or for our allies in this great con- flict. It {fg not easy to speak thus of the United Nations. Sufficient to say that if those who set up this organization conspired to make it a handicap for world peace, they have suc- ceeded too well. Our so-called bypartisan foreign policy has been no foreign policy at all. Stalin ts the foulest dictator and anti-Christ of all re- corded history. He has been responsible for the murder of more than 15,000,000 persons. It is asserted on presumably responsible au- thority, that the Communists, who are now mopping up in China, are murdering ten thousand a day, so that Mao Tse tung, al- though second to Stalin as a murderer, is daily increasing his score. Until recently our Government's official position was that the Communists in China were not Communists ot all; that they had no relationship to the Kremlin in Russla, and that they were only agrarian reformers. During the last 18 months, the policy of our State Department has been to let the dust settle, and it has settled all over us, It is the Chinese Com- muniste, directed by Moscow, that are killing American soldiers in Korea. Tf, as Gen. Omar Bradley states, all our Armed Forces are presently engaged in Korea where we are suffering serious reverses, then it is fair to say that the victory of World War IJ, achieved by the devotion of our fight~ ing men, has been utterly thrown away, The billions spent for armament, etc., have been wasted and our huge debt has bought only destruction of American honor and ideals plus concentration of puwer in
A598 unworthy bureaus and persons. This is be- trayal. Critical and extreme as the words sound, it is falr to eay thet this Nation which, under God, had a special place of privilege and responsibility in the sun, has sold its giortous birthright for a mess of pot- tage and the pottage smells. Thia crisis has been as much, or more, our making as Russia’s. Indeed, Russia could not have done what she has to develop it without our active cooperation and even our leaders’ prodding. There have not only been international blunders, but immoral sins against God which call for penitence and contrition. We must entreat God to forgive us for failing to meet our great responsibill- ties and opportunities as a Nation and must remember that we, individually, constitute our Nation. All the blame for its mistakes cannot be put on its leaders, The process of redemption, therefore, must start in us with positive and affirmative action. Each of us must vow to do and think and say only that which is wholly true and honorable without any compromise or any exception. We need to listen again to the voice of conscience fl- luwinated by the teachings of Jesus concern- ing the laws of God. The time for wiehful thinking is past. There must be an end to all shades of gray. Things must be black and white—not right or left but right or wrong. We must respiritualize our family life and our home relationships. After that we must realine our relationships with individuals and organisations, revitulizing our devotion to the good and severing all other relations. What Iam proposing is a herculean task, but it might save civilization. Nothing less will. Unless courageous, moral, and spiritual ac- tion of a sort which will secure the help of God is taken, we shall drift on and on along the road to Communist world domination in which life will become mere existence, in which God will be banished, or damned, and in which dark ages will again be the lot of humanity. By next May a billion two hun- dred million souls, more than half the people of this planet, will probably be within the orbit of Communist control. This need not be. We should not be defeatist. We can- not give up the future of our children and grandchildren to such a despicable outlook. God forbid~-no, not God forbid. We must not put the responsibility for this upon God. Rather, let us, with God's help forbid and prevent this terrible tragedy. It is time for the American people who, like the wrestlers have been stunned beyond expression, who have felt the very things they were seeing couldn’t be true, who have been betrayed; to wake up, get right with God, and, realistically, face the situation. However well we have been doing, it has not been well enough for the forces of good and of God are losing ground daily tn the world. Each of you must do better and at once. I shall endeavor to do better, too, This ser- mon is an earnest effort to help sound the alarm, I hope you will quote it widely, but accurately. “If this be treason, then make the most of it.” Let us pray. Address of President Truman at Dedica- tion of Chapel of the Four Chaplains EXTENSION OF REMARKS or HON. JOHN W. McCORMACK OF MASSACHUSETTS IN THE HOUSE OF REPRESENTATIVES Tuesday, February 6, 1951 Mr. McCORMACKE. Mr. Speaker, under leave to extend my remarks in the Recorp, I include the following address of President Truman at the dedication of the Chapel of the Four Chaplains, re- printed from the New York Times of February 4, 1961: This chapel commemorates something more than an act of bravery or courage. It commemorates a great act of faith in God. ‘The four chaplains in whose memory this shrine was built were not required to give their lives as they did. They gave their lives without being asked. When their ship was sinking, they handed out all the life preserv- ers that were available and then took off their own and gave them away in order that four other men might be saved. Those four chaplains actually carried out the moral code which we are all supposed to live by. They obeyed the Divine Commands ment that men should love one another. They really lived up to the moral standard that declares: “Greater love hath no man than this, that ® man lay down his life for bis friends.” CONQUERED DEATH BY FAITH They were not afraid of death because they knew that the word of God is stronger than death. Their bellef, their faith, in His word enabled them to conquer death. This is an old faith tn our country. It is shared by all our churches and all our de- nominations. These four men represented the Protestant, the Catholic, and the Jewish beliefs. Each of these beliefs teaches that obedience to God and love for one's fellow man are the greatest and strongest things in the world. We must never forget that this country was founded by men who came to these shores to worship Gog as they pleased. Catholics, Jews, and Protestants, all came here for this great purpose. They did not come here to do as they pleased, but to worship God as they pleased, and that is an important distinction. The unity of our country comes from this fact. The unity of our country fs a unity under God. It is a unity in freedom, for the service of God is the perfect freedom. If we remember our faith in God, if we live by it as our forefathers did, we need have no fear for the future. Today many people have become fearful. If we reaffirm our common faith we can over- come these fears. This doos not mean that we can always be sure what the future will bring. We cannot always know what the outcome of evente will be. As President Lincoln once said: "The Almighty has His own purposes.” But we need not be afraid of the outcome if we go on trying to do the right thing as God gives us to see the right. That is what we are trying to do in the world today. We are trying to establish world peace, so that all men can live together in brotherhood and in freedom. And to do that, we are working with other nations to create the rule of law in the world. What does this rule of law mean? Let me give you an example. In the early days of our western frontier, law and order were not yet established. Disputes were settled in favor of the man who was quickest on the draw. Outlaws terrorized whole communi-~ ties, Men who wanted to see law and order pre- vail had to combine against the outlaws. They had to arm themselves. At times they had to fight. After they had put down law- less violence, the courts took over and justice was established. And then it was possible for all citizens to got on with the important work of building up their own communities, pav- ing the streeta and building new schools, and giving all people a chance at the right kind of life. APPENDIX TO THE CONGRESSIONAL RECORD ‘This ts just what we are trying to do today in the international field. If we can put a stop to international aggression, order can be established and the people of the world can go ahead tpl speed with the constructive tasks of peace. We are not trying to do this job by our- selves. We could not do it by ourselves if we tried. We are acting as one member of a whole community of natlons dedicated to the concept of the rule of law in the world. As in all other communities, the members of this community of nations have many different ideas and interests and do not all speak with one voice. Some are cautious and some are impatient, We cannot always have our own way in this community. But we have a tremendous responsibility to lead and not to hang back. Fate has made this country 8 leader in the world. We shirked our responsibility in the 1920°s, We cannot shirk it now. We must assume that responsibility now, and it will take everything we have—all the brains and all the resources that we can mobilize. Leadership carries with it heavy responsi- bilities. Good leaders do not threaten to quit if things go wrong. They expect coop- eration, of course, and they expect everyone to do his share, but they do not stop to mensure sacrifices with a teaspoon while the fight ts on. We cannot lead the forces of freedom from behind. The job we face is a hard one. Perhaps it will be harder in the few years immediate- ly ahead than it will be in the years there- after. If we can get over the present crtsis successfully—if we can restrain aggression before it bursts out into another world war, then things will be easier in the future. And I think we can do this. We can't be sure, of course, but there is good reason to hope for success. In recent months, the United Nations has been faced by a serious challenge. But it is mecting that challenge courageously, and {t 1s still man’s best hope of establishing the rule of law in the world. NOTES EISENHOWER REPORT General Eisenhower has brought home the report that the people of Europe, in spite of thetr difficulties and their many problems, want to preserve their freedom. He has told us of the effort they are making. They are working very hard, and if we all work to- gether, we can be successful. When things look hard, there are always a lot of people who want to quit. We had people like that in the Revolutionary War, and we have had them in every war and every crisis of our history. Thomas Paine called them the summer soldiers and sun- shine patriots. If we had listened to them, we would never have been & free and in- dependent nation. We would never have had @ strong and prosperous country. We would not be strong enough now to stand up against Communist aggression and tyranny. The sacrifices that are being made today by the men and women of this country are not belng made in vain. Our men are in Korea because we are trying to prevent a world-wide war. The men who have died in Korea have died to save us from the terrible slaughter and destruction which another world war would surel,’ bring. Their satrifices are being made in the spirit of the four chaplains to whose mem- ory this chapel ts dedicated. They are be- ing made in defense of the great religious faiths which make this chapel a place of worship. These sacrifices are made for the greatest things in this life, and for the things beyond this life. T have faith that the great principles for which our men are fighting will prevail.
APPENDIX TO THE CONGRESSIONAL RECORD Rayburn’s Record eed EXTENSION OF REMARKS oF HON. HERBERT C. BONNER OF NORTH CAROLINA IN THE HOUSE OF REPRESENTATIVES Tuesday, February 6, 1951 Mr. BONNER. Mr. Speaker, under leave to extend my remarks in the REc- orD, I include the following editorial from the Raleigh News and Observer: RAYBURN’S RECORD Sam Raysurn, of Texas, has just passed the tenure record for a Speaker of the House of Representatives of 8 years plus, set a century ago by Henry Clay, of Kentucky. There is more to the Rayburn record than mere length of tenure. As Speaker he has a dual responsibility, to serve as the impartial presiding officer for the whole House and, at the same time, furnish effective leadership for his own party in a body where controver- sies sometimes become bitter. These two functions are difficult to com- bine without neglecting one at the expense of the other. Sam RAysurn has never failed to measure up to both responsibilities. The House may have had better presiding officers and the Democratic Party may have had a better leader, although no names come to mind readily in either category. But the House has never had a Speaker more highly regarded by both his own party and the op- posing party, and it will be a long time, if ever, before it does. The country hopes that Mr. Speaker Ray- BURN will remain in his present post for a long time to come. Education in Literature, Art, and Music EXTENSION OF REMARKS oF HON. CHARLES R. HOWELL OF NEW JERSEY IN THE HOUSE OF REPRESENTATIVES Tuesday, February 6, 1951 Mr. HOWELL. Mr. Speaker, I intro- duced a bill today to authorize the Com- missioner of Education to bring to Wash- ington, D. C., theater productions of land-grant and State and other accred- ited colleges and universities. One of the purposes of general educa- tion should be understood in terms of performance, of behavior, not in terms of mastering particular bodies of knowl- edge. It is the task of general educa- tion to provide the kinds of learning and experience that will enable the student to attain certain basic outcomes, among them the following: To understand and enjoy literature, art, music, and other cultura) activities as expressions of per- sonal and social experience, and to par- ticipate to some extent in some form of creative activity. It can scarcely be necessary to urge the importance of literature in the pro- gram of general education. Man's con- suming interest is in man, and in this in- terest literature can serve. By means of great novels, poems, plays, and essays one can participate vicariously in many events that one’s own life does not en- compass, and so can gain as in no other way imaginative insight into the emo-« tions, drives, and aspirations of one’s fellow men. Literature sets forth both the heights and the depths that man can reach. It is an avenue of communication with the great minds and the great souls of yesterday and of today. It can do as much as any other single form of ex- perience to broaden and deepen the per- ceptions and sympathies of the individ- ual. This consequence does not, however, follow from the study of details of liter- ary history, literary biography, literary techniques, or any other of the accom- paniments to literature that make up specialization in the subject. The con- tribution of literature to insight and emotional maturity will come from one’s own reading of the world’s literary treasures, and from reflection upon them. The world’s literary treasures are not those of the West alone. They include the great intellectual statements of men everywhere and in all ages. There is probably no better way of promoting the intellectual and spiritual unity of man- kind than through free trade in endur- ing literary expressions. And in the graphic and plastic arts, too, man has recorded much of his thought and feeling about life through color, form, and sound. A signal defect in much of American education, and in American culture, is its failure to rec- ognize that music, painting, sculpture, the dance, the drama, and others of the arts are authentic statements of expe- rience. One of the tasks of American democ- racy is to heighten and diffuse esthetic sensibility and good taste, to make our people sensitive to beauty in all its varied forms: in the commodities and services of everyday life, in private and public buildings, in community and re- gional planning. The study of the arts in general edu- cation should not be directed toward the development of creative artists of ex- ceptional gifts, though it may in some instances lead to this. It should aim at appreciation of the arts as forms of hu- man expression, at awakening or in- tensifying the student's sensitivity to beauty and his desire to create beauty in his everyday surroundings, at develop- ing bases for discrimination and in- terpretation, at inducing sympathy with arts and artists and active concern for their welfare. Support of the arts can no longer be left to the patronage of wealth; active encouragement of artistic expression in its various forms must be- come the responsibility of all citizens. Before completing his general educa- tion, the student should acquire a meas- ure of skill in at least one of the arts or crafts, in some form of musical expres- sion or in dramatics. Participation in creative activity, even at a low level of proficiency, is one of the best means to understanding and appreciation of artistic expression, A599 Why Have Scientists Been a Weak Link Against Communism? EXTENSION OF REMARKS or HON. FRED L. CRAWFORD OF MICHIGAN IN THE HOUSE OF REPRESENTATIVES Friday, February 2, 1951 Mr. CRAWFORD. Mr. Speaker, aside from the CoNnGresSIonaL Recorp itself, the function of full and free public discussion has been served by none of the American press so well as by the oldest of our business periodicals, the Commercial and Financial Chronicle, established in 1839. Dr. Melchior Palyt, an ably conservative contributor to the columns of that paper, has recently voiced a fear, shared by the conservative element in Congress, that the diplomacy of the Kremlin may be leading us into “history’s greatest trap” in Europe. That which seems to be most blind- ing in this danger, has been our own conceit over the discovery of a source of energy which does not utilize but rather explains the solar radiation that warms the surface of the earth. We have been at once paralyzed with fear and puffed with pride by the demagoguery of the scientists who devised and steered the Atomic Energy Act to passage (in the Senate without even a record vote), a state of affairs hardly conducive to sound public judgment at a time when well considered action is imperative and we must act, but not over-act. “Our real problem,” says some invited comment in the columns of the Chron. icle, “is how to stop the war of attrition by other than military containment on the long Russian periphery where it will cost us so much more than it does the Soviet that it is we, not they, who could not sustain a long war, but would be caught in domestic disorder. Only then could a bombing coup de grace become good Soviet tactics. It is in this context that we cannot afford to sit tight. How can we change the context so that the Voice of America will spread itself at no expense at all just because it is the patent truth and not a meaningless jum- pe on ‘facts’ supposed to offset Soviet es ” If we are to avoid biting off more than we can chew, it would be well to listen to the relatively few scientists who see, as does the scientist-author of the re- cent best seller, “Science is a Sacred Cow,” by Dr. Anthony Standen, the dis- tinct limitations upon the attainments of science. To bring this matter of the illu- sions of science before the Congress, I have obtained permission to quote fur- ther from Alden Potter's caustic but pertinent comment in the Chronicle, as follows: The danger of entrapment lies, indeed, in the element of truth, not in communism (or soctalism), but in the hope to which the Kremlin can cling, of industrial disorder due to conditions of monetary instability, that is inflation. The Soviet system has by no means found a way to eliminate inflation, even in peace. It has, on the contrary, tried to meet its effects by much the same sort
A600 of meastires here threatened, summed up by President Truman as the "police state.” By such means it has eliminated one of the greatect dangers in modern war, namely, law- lessness in labor strife, by eliminating strikes ag measures of collective “bargaining.” With this advantage—for war—their prob- lem is to a0 manage as to compel us to face that denger before their similar inflationury situation can be made to collapse into an- arehy by our tactics. Both systems are high- ly susceptible; but it is not enough that the pot should call the kettle black in either cage. The winner will be that side which remodels the system to take it out of the woaty category of inflationary methods of finance. Before that can be accomplished it becomes necessary to rule out socialistic remedies, that ts, the elimination of private property or “monopoly.” This will have to be approached, not ‘“‘experimentally’— history proves nothing; there is always the idea that the cure for soctalistic failure is more sociniism—but with the certainty of logic and reason. The fact that revolution in economic theory is imperative has been so tersely stated in Price Control by F. 8. J. Jervis that it deserves a quote: “It is painfully obvious that in economic matters the democ-~ racy is at present not merely uneducated, but miseducated; not merely, like the Afri- can bushman, unable to count above five, but dogmatically convinced that five is the sum of two and two” The fact is that neither Jatssez faire nor a socialist estate has pre- sented any evidence of being effective in dealing with this cultural lag in modern industrial society. By finding an actual solu- tion for it, through submitting it to care- ful, open-minded study devoid of tradi- tional predilections-—the writer has attemped to promote such study in “When and How Do Figures Lie?” in the Chronicle for July 5, 1945—the justification fur the Kremlin’s cynical hopes and our own defeatism on this score would be swept aside and the whole morale of the intelligentsia who are pri- marily responsible for the utopian fallacies of socialism, could thus be shifted overnight to the side of capitaltem—but not, indeed, to side with any such anarchistic laissez faire as is presented by the Marxian ideal of a fully “withered” state, or the similar Keynesian utopia of & decline in interest to mero when paradise arrives to facilitate sav- ings ad libitum and go assure an adequate “capitaliatic’—but in a profit- and interest- free “capitalism”—investment solution for all problems in life by removing poverty and inflated prices all at one fell swoop of un- Umited supply to satisfy all demand. Thia naive, money-free theory of price level is what the Soviet has attempted to validate; but it has failed so often and so largely that one may well suspect that the Politburo looks with cynical glee upon the American delu- sion that the way to global law and order is by such Point Four plenty and “perfect” com- petition as robs price of any meaning and retires a monetary-profit system of competi- tive trading to the limbo of a primitive past when everyone was 8 ‘“chiseler” and science, “the endless frontier,” was being frustrated by the profit motive from fulfilling its self- appointed mission as a sacred cow that could never be milked dry (and so permit infla- ion). It is, indeed, their bitter-end resistance to any and all suggestions that Utopia is im- possible, even to their sacred cow, that has made our scientiata, seeking abundant Man- hattan Projects as a way to abundance (at least for them and their Science Foundation) into convinced Socialists or even self-styled Communists. This latest pressure-group lobby offera, indeed, an abundance of every- thing except common sense and moral stam. ina. This was well demonstrated by Lord Stamp's retort to their “optimistic” view that only “The Frustration of Eotence” (a book by well-known British “liberal” scientists) by “monopoly capitalism” prevents the para- dise they have prepared. But his advice went in one ear and out the other, leaving free play for an insufferable conceit and an ego so inflated in the atomic technician that he ignores plain proof that population can outstrip anything that technology can pro- duce. * * * Gerald Wendt, editor of “Science Illustrated,” has illustrated this utopian materialism (which with Bishop Ox- nam puts the material cart before the moral horse by saying that law and order depend upon better Hving standards, or “belly before brain in brotherhood”) by this fatuous as- sertion in a “Harper's” article: “In that mastery (of atomic energy) is lodged the one great hope for a decent standard of living everywhere.” Contrast this fools’ paradise with the re~ straint expressed by the “Rockefeller Foun- dation Review” for 1948 (p. 26): “Inherent in our systematic efforts to promote the wel- fare of mankind there may be an assump- tion that by taking thought we may add a cubit to our stature. * * * Some such hope ia implicit, if not explicit, in Socialist doctine, but it is implied also in the domi- nant attitudes of American society. ‘Plan- ning’ and ‘control’ are the common coins of American politics, American business, Amer- ican education, and American sclence, de- spite the concurrent emphasis upon liberty, individualism, and democracy. The bom- bastic phrase, ‘contro! of nature," is a byword of the literature of the day. Do we mean that because we have learned to navigate the tides we shell also control them? * * * Where do we think we shall stop—with the control of the speed of rotation of the earth, of ita revolution about the sun? Shall we alao learn to contro] the chain reaction in the sun wh 2nce comes all our life and power? Pride goeth before a fall, All our efforts will promote only disaster if they are not done in the humility appropriate to our ignorance, never forgetting that we have not made the earth or the heavens above it.” The trouble is that organized science has developed no policy to see these differences through to a conclusion and then pursue that conclusion on into others even though these may tread on the toes of their sacred cow. It seems fair to charge that as a pres- sure group science abandoned ita reverence for the truth and joined the demagogues when it produced the Bush report and lately the. Gordon Gray report, to the President, presenting itself as an “endless frontier” capable of utopian service to mankind, even into the globaloney of Potnt Four, all of which is implictt in the bureaucratic pa- ternalism of the UNO with its might-makes- Tight implications. That this would be no step toward world peace was foreseen clearly by the “Chronicle” on July 7, 1945, when it said editorially: ‘Neither agreements reached at San Francisco nor mechanisms there devised will have much bearing on the course of world affairs or in the maintenance of world peace.” It has proved worse than that; what we have taken into our gates is a Trojan horse in war. Ascientific utopia and freedom from want was its outer framework—its false pre- tense. It was science that set the stage for all this—for the naively generous appease- ments at Tehran, Yalta, and Potsdam, and the disbandment of our armies and substi- tution of ECA. It is science that owes, not us alone, but humanity (including espe- cially that segment in Korea), not merely ite apologies, but a reversal of Modern Ma- te-ialism (see “Philosophy for the Future,” Macmillan, 1949, the American counterpart of Britain's “Frustration of Science”) so as to point out’the truth that the “cultural Jag” is a moral, not a material, lag in general welfare. It is not enough that the communistic personnel which organized UNESCO under Julian Huxley (specifically in the case of Dr. APPENDIX TO THE CONGRESSIONAL RECORD Joseph Needham, original head of the science se.tion) te now out of control. The utopian materialiam—communistic paternaltam—im- plicit in the bureaucracy of the UNO, must be fully recanted. Then, and then only, need we no longer fear that the Kremlin can wage @ successful cold war by boring from within and taking advantage of the naive scientism which sells itself down the river before it betrays democracy for no reason but its welfare-state “ideals” that ar. grounded in falsehood and hypocrisy. The world is finding socialism to be a flop. Only our own scientific utopians sre pre- serving it as the nidus of subversive revolu- tions to be appeased and as something to Aight about while glorifying the same uto- pians for their patriotic (and profitable) provision of the weapons of mass destruction, The betrayal of truth penetrates beyond our own national welfare and prevents the moral and intellectual atmosphere neces- saiy to worldwide understanding and peace through law and order, that is, through what ultimately must be a world government and not a nationalistic federation like the UNO to adjust imperialist disputes, each by nego- tiations having no law but only the come promises of power politics to govern the out- come. In the final analysis, of ideology rather than of power, it 1s not Jn any isolated nationalism that we can sit tight or stand pat. A common denominator that doca not rest on power politics, but on truth, is essen- tial in the conduct of the uncompronusing diplomacy of peace. India and the United States EXTENSION OF REMARKS HON. HUGH D. SCOTT, JR. OF PENNSYLVANIA IN THE HOUSE OF REPRESENTATIVES Tuesday, February 6, 1951 Mr. HUGH D. SCOTT, JR. Mr. Speak- er, under leave to extend my remarks in the Recorp, I include the following ad- dress entitled “India and the United States,” by Dean Carl B. Spaeth, of Stan- ford Law School, before the Los An’eles Bar Association, November 30, 1959, as published in the Los Angeles Daily Jour- nal, December 2, 1950: This is a report on a conference in which I participated in India during the month of October. The Lucknow conference was held under the auspices of the Institute of Pacific Rela< tions. The conference was concerned with Nationalism in the Far East and, in partic- ular, with the international consequences of that nationalism. The countries represented included almost all of the independent nations of the Far East as well as Great Britain, Canada, France, and the United States. My colleagues around the table during the 2 weeks were Indians, Pakistani, Indonesians, and Japanese, as well as representatives from Ceylon, a spokesman. for the Bao Dai regime of Indochina, and representatives of Australia and New Zealand, With the exception of the representative of Bao Dal, who spoke only French at the conference, and some of the Japanese dele- gation, all the participants had an excellent command of English. Neither the Soviet Union nor Communist China was repre- sented. The principal delegations were composed of representatives of business, and the profes. sions, former government officials, and schol- azs who have devoted most of their lives to the study of far eastern affairs. No votes