« ПретходнаНастави »
I urge that my perfecting amendment, There are other amendments on the Extensive hearings and study by the because that is exactly what it is, be same subject pending, depending on the Foreign Relations Committee under the adopted.
disposition of this amendment. Al distinguished leadership of Senator FULMr. SPARKMAN. Mr. President, act- though I do not think it will call for too BRIGHT produced an aid bill which we are ing for the chairman of the committee long a debate, it will be discussed in some now debating. [Mr. FULBRIGHT), we shall be pleased to detail, because we are dealing with a very I have consistently advocated the fulltake the amendment to conference. serious matter in connection with the est participation of the United States in
The PRESIDING OFFICER. The Alliance for Progress program. I sug international affairs. I continue to bequestion is on agreeing to the amend- gest that this amendment be made the
gest that this amendment be made the lieve that the United Nations is our best ment of the Senator from Louisiana to pending amendment, and that we pro
pending amendment, and that we pro- hope for improving relations among nathe committee amendment in the nature ceed to discuss the whole question of mil tions-for providing moral leadership of a substitute, as amended.
itary aid to Latin America, using this as and peacemaking, peacekeeping The amendment to the amendment the basic amendment, tomorrow.
chinery in times of crisis. The U.N. has was agreed to.
Mr. MANSFIELD. That is satisfac
That is satisfac- saved inestimable American lives and Mr. ELLENDER. Mr. President, I tory with me. I thought I had under dollars since its inception. move to reconsider the vote by which the stood the Senator from Oregon to ask Our system of alliances and our mutual amendment to the amendment was the Senator from Alaska whether he
the Senator from Alaska whether he security program are equally vital to our agreed to.
was going to withdraw the amendment national interest. Mr. MORSE. Mr. President, I move which he asked to have read. I may We are the world's most powerful to lay that motion on the table.
have misunderstood him. That is why nation—the custodian of freedom for The motion to lay on the table was I made the statement I did.
our own people and for others throughagreed to.
Mr. MORSE. The Senator either mis- out the world. This irrefutable fact imMr. MORSE. Mr. President, I should understood the question, or I misspoke. poses upon our Government awesome like to address myself to the Senator There had been a discussion of which
There had been a discussion of which and burdensome responsibilities. from Alaska for a moment. Does the amendment was to be called up first. I There can be no serious thought of Senator from Alaska wish to offer his asked him whether he wished to bring
asked him whether he wished to bring abrupt withdrawal from our basic comLatin American military aid amend- up his amendment before I offered my mitments, both military and economic. ment now, before I offer mine?
amendment, on this general subject. I We must continue our effort to shape Mr. GRUENING. Mr. President, I judge he wants to offer his amendment and enlarge the free world into an ever wish to call up my amendment No. 235, first. If his amendment is defeated, I stronger and more cooperative economic, and ask that it be stated.
shall offer another amendment. There military, and political unit. The PRESIDING OFFICER. The are several amendments on the subject. It is clearly in our interest-our selfish amendment offered by the Senator from Mr. MANSFIELD. That explains the interest if you must-to do so. In so Alaska, for himself, and other Senators, situation.
doing, we continue to thwart Soviet ecoto the committee amendment in the na I now ask unanimous consent that the nomic and military expansion while at ture of a substitute, as amended, will be Senate stand in recess until 12 o'clock the same time we broaden the oversea stated. tomorrow morning
markets for the goods and services of the The LEGISLATIVE CLERK. It is proposed Mr. DOUGLAS. Mr. President, will American economy and strengthen our to insert between lines 8 and 9 on page the Senator withhold that request? allies' military resistance to communism. 41 the following:
Mr. MANSFIELD. I withhold that re For these reasons, I shall vote for a (d) Section 505(a) of the Foreign As- quest.
continuation of our aid program on sistance Act of 1961 (Public Law 87–195) is
MOTION TO RECONSIDER
final passage. hereby amended by changing the period at
Mr. DOUGLAS, Mr. President, I In the meantime, I shall continue to the end thereof to a cc nma and
adding the enter a motion to reconsider the vote
enter a motion to reconsider the vote appraise the many amendments offered following proviso: “Provided, That, except (1) to the extent necessary to fulfill prior whereby the amendment of the Senator to this bill in accordance with the concommitments and (2) to the extent that the
from Kansas [Mr. CARLSON] to the com- stitutional responsibility of the Congress President finds, with respect to any Latin mittee amendment on page 53, line 20, to determine broad policy, and in acAmerican country, that the furnishing of was agreed to.
cordance with what I believe to be in the military assistance under this Act is neces I shall call this motion up at a time best long range interest of the United sary to safeguard the security of the United satisfactory to the Senator from Massa- States and its allies. States, and so informs the Congress, no
chusetts or the Senator from Kansas. Foreign aid can, when handled wisely, further military assistance under any provi
Mr. MANSFIELD. Mr. President, I succeed in doing what it sets out to do. sion of this Act shall be furnished to any Latin American country.”
withdraw my request. I understand the When the program is mishandled, un
Senator from Maryland (Mr. BREWSTER] realistic, administered without policy diMr. DIRKSEN. Mr. President, may I desires to make a speech.
rection and clearly defined goals, it is an ask the majority leader and the sponsor For the information of the Senate, unwarranted and unwise burden. The of the amendment, which involves a there will be no further votes tonight, pocket of the American taxpayer must rather broad policy, whether it is pro- only speeches and remarks.
not be an international grab bag. posed to consider and dispose of this
Mr. BREWSTER. Mr. President, the Our sincere and genuine desire for amendment tonight?
Senate has now been considering the freedom and liberty for all people should Mr. MANSFIELD. Mr. President, it is 1963 foreign aid authorization bill for 11 not be thwarted by corrupt and dictamy understanding that the distinguished days.
torial governments of the peoples we senior Senator from Oregon may possi This debate is the culmination of the seek to help. We cannot continue to inbly have an amendment pending. If most searching review of the program vest in countries whose leaders will make that is the case, it is the intention of the since its inception with the Marshall no effort to affect the land and social leadership to move to have the Senate plan in 1948.
reforms essential to a climate of growth. adjourn until tomorrow at 12 o'clock. The intensive study was first under Recent events in South Vietnam give
Mr. MORSE. Mr. President, the taken by the distinguished Committee graphic credence to the allegation that amendment offered by the Senator from under Gen. Lucius Clay. The report of we have too often supported despotic, Alaska opens up the entire issue of mili- this Committee suggested certain guide- authoritarian regimes which are contary aid to Latin America. The Senator lines be established for future aid spend- stantly—and for good reason—threatfrom Alaska offers this amendment in ing. It argued that we have been at- ened by internal revolt. keeping with his long-expressed convic- tempting too much for too many with too These convictions have formed the tion on the floor that he thinks military little concern for quality and too much basis for my votes on the amendments aid does more harm than good, that there for quantity.
thus far considered. is a great deal of money in the pipeline This report prompted a reduction of I have voted to improve the climate for anyway, and that he would eliminate the budget request
the budget request by almost $420 private investment opportunities in such aid. million.
countries receiving our aid.
I have voted to lower the authoriza- was Prof. Arthur Bloomfield, professor outstanding financial experts has been tion for the Development Loan Fund and of economics at the University of that in the event we have a tax cut and to require annual reconsideration of this Pennsylvania.
the economy is stimulated, the Federal program. The language in both the
Both of these men indicated that the Reserve Board and the Treasury will folClay report and the Foreign Relations balance-of-payments problem, which low policies which will have the effect of Committee report indicates the neces- was so serious in the second quarter of pushing interest rates up and keeping sity for a continual review of this pro- this year-probably more serious than the economy under some restraint. gram with major reorganization and re- ever in our history—and which was at an Many of us feel this would mean that orientation,
annual rate of about $4 billion a year or the two principal Government economic Such a revamping cannot be assured more, stated that the reason for the vast weapons would be in opposition to each unless the Congress withdraws its improvement in the third quarter was other. Fiscal policy would be used to blanket authorization for succeeding primarily due to the administration's expand the economy, and the monetary years and makes clear its desire that announcement of its interest equaliza- policy would be used to contract it. In future aid programs be more selective tion tax proposal, and that this had a other words, one would be stepping on and rely more on the facilities of multi- very distinct and immediate effect on the gas, and the other would be putting lateral agencies such as the Interna- the outflow of capital.
its foot on the brake, and the tax cut tional Bank for Reconstruction and De
I believe that the country and Mem- which is supposed to stimulate the ecovelopment. The United States cannot bers of the Senate should be aware of nomy would be limited. be expected to continue to bear the total this conclusion by these two eminent A number of economists have made aid burden nor continue to assist nations economists, and should recognize that studies of the many tax cuts that we now economically prosperous.
the balance of payments may be im- have had in this country, and they have I have voted to restore $75 million of proving sharply and may now be within found that when these tax cuts have the original cut in funds for the Alliance the control of the administration. been coupled with monetary ease, they for Progress. I did so, firm in my con
I say this because, as a member of the have been expansionary, and that when viction that the unusual importance of Joint Economic
Committee, I am proud the tax cuts have been coupled with this area to American security demands of the fact that the proposal for the monetary restraint of the kind the Feda long term venture of extraordinary interest equalization tax was first made eral Reserve Board indicates it will folcomplexity and scope.
at a meeting of our committee on Febru- low, then the result has been that a tax I have supported amendments barring ary 1 of this year by the newly appointed cut has not been stimulating, but has aid to countries engaged in or supporting member, at that time, of the Federal resulted in a deficit. aggression against the United States or Reserve Board, George W. Mitchell, who The reason why I call this subject to nations receiving American assistance.
is superbly qualified as a monetary the attention of the Senate is that many I have joined with a unanimous Senate specialist.
of us sometimes feel that our nonlegisin barring aid to Communist countries.
Mr. Mitchell said at that hearing be- lative committees, which have a primarWhile I have refused to grant to the
fore the Joint Economic Committee: ily investigative function—whether it be President discretionary authority on these two matters, I have refused, and
The United States has the largest and most the Select Committee on Small Business accessible capital market in the world, and
or the Joint Economic Committee, or will continue to refuse, to tie the hands it ought to be kept free of exchange restric
some other committee-have very little of the Chief Executive in other areas
tions. It is proper and desirable that capital influence. It seems to me that if the where freedom to act and to act quickly poor developing countries should utilize this Joint Economic Committee had never to adjust policy to circumstances—is market to meet a portion of their enormous
done anything else, the fact that it was surely in the interest of the United needs for foreign capital. It is not so clear,
an instrumentality in giving birth to an States.
however, that it is either necessary or deIn accordance with my conviction that sirable for advanced countries, with balance
apparent solution to our very serious of-payments surpluses, to have recourse to balance-of-payment problem makes the the best hope for reduction of American
our capital market on the recent large scale work of the committee very worthwhile aid lies in the expansion of American
while they restrict and hamper entry of out- and makes its contributions most importrade, I have voted to extend most fa side borrowers to their own capital markets. tant. vored nation treatment to Poland and If these countries are unwilling to open their Yugoslavia. These governments do not
capital markets, possibly we should look now receive American aid, but the imtoward tax measures that might help to rem
RECESS TO 12 O'CLOCK NOON edy this unbalanced position. In general, provement of trade relations with these
TOMORROW we need to explore the possibilities of varinations continues to serve our interest.
ous tax measures that might, consistent with Mr. MORSE. Mr. President, I move The primary justification for the tre our obligations as an international good that the Senate stand in recess until 12 mendous investment that American tax neighbor, and with the status of the dollar as
o'clock noon tomorrow. payers make in foreign assistance is the a world reserve currency, discourage capital safety and security of the United States. movements that appear to flow uphill to
The motion was agreed to; and (at 8 As an arm of American policy, this countries that are already capital rich.
o'clock and 45 minutes p.m.) the Senate
recessed until tomorrow, Thursday, Noprogram serves us best when it clearly Governor Mitchell had this concep- vember 14, 1963, at 12 o'clock meridian. serves our interest. I hopefully pre
I hopefully pre- tion, and I believe that it is certainly one dict that our deliberations and votes will reason why the administration has made produce a final bill which does precisely the very wise proposal of an interest
equalization tax, which has had such a I further hope that our final vote may profound effect on our balance of pay
Executive nominations received by the come soon so that we may turn our at ments.
Senate November 13 (legislative day of tention to the other pressing matters I should like to call the attention of October 22), 1963: which must be acted upon before the end the Senate to the fact, if the interest
IN THE ARMY of this session.
equalization tax does have the effect of The Army National Guard of the U.S. discouraging capital outflow and does officers named herein for appointment as Rereally solve our balance-of-payments dif
serve commissioned officers of the Army, unJOINT ECONOMIC COMMITTEE'S
ficulties, it will be particularly incumbent der the provisions of title 10, United States KEY ROLE IN SOLVING U.S. BAL
Code, sections 593 (a) and 3392: upon the money managers of our econoANCE-OF-PAYMENTS PROBLEM my to use their new freedom to follow a
To be brigadier generals Mr. PROXMIRE. Mr. President, yes- monetary policy that will encourage Col. Alfred Carlisle Harrison, 0311380, Adterday, the Joint Economic Committee economic growth and economic develop- jutant General's Corps. had before it two of the outstanding ment domestically.
Col. Erwin Case Hostetler, 0336226, Ad
jutant General's Corps. economists in the world on the subject The fact is that interest rates have
Col. Robert Louis Stevenson, 0343589, Adof balance of payments. One was Prof. been kept at a relatively high level, in jutant General's Corps. Friedrich Lutz, professor of economics spite of the fact that we have heavy un Col. Thomas Roberts White, Jr., 0348796, at the University of Zurich; the other employment. The speculation of many Adjutant General's Corps.
in the grade of major general, which were
sent to the Senate on July 18, 1963: Executive nomination confirmed by Executive nominations withdrawn
Col. Alfred Carlisle Harrison, 0311380, Adthe Senate November 13 (legislative day from the Senate November 13 (legisla- jutant General's Corps. of October 22), 1963: tive day of October 22), 1963:
Col. Erwin Case Hostetler, 0336226, Adju
tant General's Corps. FEDERAL TRADE COMMISSION
IN THE ARMY
Col. Robert Louis Stevenson, 0343589, AdPhilip Elman, of Maryland, to be a Federal The following officers of the Army National jutant General's Corps. Trade Commissioner for the term of 7 years Guard of the United States for appointment Col. Thomas Roberts White, Jr., 0348796, from September 26, 1963.
as Reserve commissioned officers of the Army Adjutant General's Corps.
The Cotton Bill: A $500 Million-Plus price that is paid for American cotton by statements in the RECORD purported to Gain for American Consumers competing mills in other countries.
show how much money some of the larger For it was shown to our committee firms would receive.
that a rise or fall in the cost of cotton A private research firm conducted a EXTENSION OF REMARKS
is almost invariably and completely ac study of the relationship of the price of OF
companied by a rise or fall of the same cotton to the price of cloth. Its findings HON. HAROLD D. COOLEY degree in cotton cost prices. The Depart are on pages 8, 9, and 10 of the commit
ment of Commerce established this as a tee report. I urge you to read it all. OF NORTH CAROLINA
fact in the hearings of our committee. I especially urge Mr. FINDLEY to read the IN THE HOUSE OF REPRESENTATIVES
I am not addressing my remarks to- report. Over a period of 38 years—inWednesday, November 13, 1963
day particularly to the farm problem, be- cluding war and peace-depression and Mr. COOLEY. Mr. Speaker, on Fri
cause we all know that a reduction in prosperity—cotton cloth prices have day last, November 8, the gentleman from consumption of cotton in the United gone up and down with raw cotton prices. Illinois, Representative FINDLEY, charged, States means contracting acreage allot- Let me read to you just one sentence in a statement entered into the RECORD ments and disaster in the cotton growing from the report: of the House that H.R. 6196—the cotton
areas of the country. I am directing my When consideration is given to the long bill—provides multimillion-dollar pay- remarks primarily to what it means to span covered, the varying political and ecoments to textile mills. He contended consumers and to all of those people in nomic conditions during this time period,
the great and minor depressions, the two that the bill provides for such payments the highly populated areas of the coun
wars and the two postwar periods, this record as subsidies to the mills. I ask the indul- try who are dependent upon the textile
verges upon the unbelievable. gence of the House to set the record industry for their livelihood. straight.
Our price support program has result Certainly those of us who believe in the H.R. 6196, now awaiting action in the ed in American cotton being higher private, competitive, free enterprise sysHouse, does not subsidize domestic cotton priced than foreign grown cotton. To tem will agree that competition among mills. It simply makes American cotton preserve our export markets, the Goy- the 5,000 companies which manufacture available to our own mills at the same
ernment since 1956 has made American textiles in the United States will force an price as American cotton is sold to for- cotton available to foreign mills at prices immediate and comparable reduction in eign mills, and thereby removes a Gov- far below the domestic price. Currently, cotton cloth prices when the price those ernment-imposed cost disadvantage un- cotton is sold for export at $42.50 a bale companies pay for cotton is reduced. der which our own mills have been ago- less than it can be bought by domestic Any person who says the textile indusnizing since 1956.
mills. The American mill must pay one try will be subsidized or receive a windMr. Speaker, the greatest benefactor third more for American cotton than its fall under H.R. 6196 either does not know under this legislation will be the Amer- competitor in Hong Kong or in any other the facts or refuses to accept them. ican consumer. Americans will enjoy foreign land. Since 1939, American mills H.R. 6196 in addition to great benefits lower prices for American-made cotton have been prohibited from buying foreign to consumers and millions of off-form goods, at savings amounting to more than grown cotton in excess of 30,000 bales a wage earners will do the following things $500 million a year.
year-less than the amount consumed by directly for cotton: Moreover, the legislation will revitalize U.S. mills in 1 day.
First. On the domestic market it would the whole cotton industry, in which more What will H.R. 6196 do to correct this remedy a price disadvantage which is than 10 million Americans are associated situation? It will make cotton available largely responsible for a competitive loss in the production of cotton on the farms, to American mills at the same price it of 1,700,000 bales in annual rate during in ginning, marketing, transporting, mill- is made available for export to foreign the past 3 years—a loss which is now ing, and in the manufacture and mer- mills. It is beyond me to see how any continuing with no end in sight. chandising of cotton goods.
fairminded person could possibly object Second. It would eliminate the twoThis legislation will protect the liveli- to giving the same treatment to an price system and thereby remove the hood of the millions of people who work American industry which we accord to its main cause of rising cotton textile imwith cotton.
foreign counterpart. It is absolutely im- ports which have reached the equivalent Mr. FINDLEY is a member of the House possible for an American mill to be com
of 693,000 bales in annual rate during Committee on Agriculture and accurate petitive with foreign-made goods when the first 7 months of 1963. These iminformation is available to him. For it is forced by its government to pay one ports are delivering our domestic market some reason unknown to me he has third more for its raw material on top to foreign cottongrowers and, in addichosen to oppose the cotton bill, and has of a substantially higher wage scale. tion, they are generating powerful oprefused to avail himself of the facts or to Laws, which the Congress of the United position to the export subsidy upon which attempt to understand the purposes upon States passed, have created what Presi- our whole export market now depends. which this legislation is proposed.
dent Kennedy so aptly has called this Third. It would remove the necessity, He apparently has not read the com- unique burden. The President himself otherwise inevitable, of reducing the mittee report.
has asked for the elimination of the statutory minimum acreage allotment Had he listened to the testimony be- grossly unfair cost disadvantage which below 16 million acres, possibly even in fore the committee and had he studied has been legislated on this American the next Congress. This season, even the report it would be evident to him in industry. H.R. 6196 would do away with under the optimistic offtake estimates a way that denies contradiction, that the the cotton cost difference between U.S. of the Department of Agriculture, the American consumer of textile goods and foreign textile producers.
minimum allotment is producing 1.2 milnot the textile mills-will be the great A subsidy to the textile industry. This lion bales more than can be sold, and the beneficiary in bringing the cost of raw is utter nonsense. Such a charge is com carryover will reach 12.4 million bales cotton to American mills down to the pletely irresponsible. Mr. FINDLEY'S next August 1.
Fourth. It would protect the income This week Capt. Edward Dwight, com- people send their trading stamps to Al of the farmer.
mand test pilot, graduate aeronautical Reid who then uses them to buy items Fifth. It would remove such imminent engineer cum laude, boxing champion such as toys and games for the two risks as the following:
who nearly tied the world 100-yard track hospitals. The loss of a great source of foreign record—a Negro American—was named Al Reid says, "I licked every stamp." exchange;
to the exclusive astronaut club. On this To date, this amounts to over 50,000. The creation of new depressed areas man we will pin our hopes—black and This is certainly a highly original idea. all over the Cotton Belt;
white-for national prestige in the lunar Moreover, it is one that other comThe impact of acres diverted from cot- probe.
munities can use in order to bring comton upon the markets of other farmers; Nobody means to say that all Negroes forting items to the children and adults
Conversion of more cotton plants to are astronauts—nor whites—and per- in our hospitals.
might on the average outperform the
Fiscal Policy: Debt and Taxes you accentuate these differences by eduCivil Rights: Dr. Haldane Reviewed cating, employing, housing, and accom
EXTENSION OF REMARKS modating only the very able.
OF EXTENSION OF REMARKS
RIGHT EQUALITY NOT IDENTITY
HON. THOMAS B. CURTIS
IN THE HOUSE OF REPRESENTATIVES acted a resolution which should lay this OF CALIFORNIA issue to rest:
Wednesday, November 13, 1963 IN THE HOUSE OF REPRESENTATIVES Be it resolved, That the American Anthro Mr. CURTIS. Mr. Speaker, it is not Wednesday, November 13, 1963
pological Association repudiates statements often that I put speeches of mine in the
now appearing in the United States that RECORD. Recently, though, I have made Mr. LEGGETT. Mr. Speaker, a seg- Negroes are biologically and in innate mental regationist colleague of mine from Texas ability inferior to whites, and reaffirms the
several speeches on Federal fiscal policy inserted material a few weeks ago into fact that there is no scientifically estab- which express my views on the subject of
lished evidence to justify the exclusion of tax reform and the Revenue Act of 1963. his opposition to civil rights legislation any race from the rights guaranteed by the With unanimous consent, I wish to place
Constitution of the United States. The in the RECORD at this time the speech I on the basis that men are only equal in basic principles of equality of opportunity made before the annual conference of the eyes of God and that civil rights and equality before the law are compatible the National Tax Association on Tueslegislation is erroneously premised on the with all that is known about human biology. day, November 12, in Milwaukee, Wis.: basis that all men are physically iden- All races possess the abilities needed to partical in ability and intelligence. Prof. ticipate fully in the democratic way of life
FISCAL POLICY: DEBT AND TAXES J. B. Haldane is the authority cited and in modern technological civilization. (By the Honorable THOMAS B. CURTIS, Resupporting the basic thesis that races are I will support the bipartisan civil
publican, Second District of Missouri) different and unequal. rights legislation among other reasons
It is my belief that the purpose of taxation With the major civil rights bill ex- because I think it basically unjust that
is to obtain the revenues necessary to pay for
the goods and services we wish to receive pected to reach the House floor the first counties like Jefferson County, Miss., through the mechanism of political governhalf of December, I thought I would with a census population of 1,666 white ment. I think that tax policy should be as make a further effort to see if we could persons and 3,540 Negroes have a voter neutral as we can possibly make it in its not get our facts straight before the registration of 1,643 white-98.6 per economic impact. I hold that to deliberately debate.
cent-and zero Negro; and like Greene use a tax system to produce economic results PROFESSOR HALDANE REVIEWED County, Ala., having a total of 1,649 by indirection damages the tax system in at
taining its primary objective and damages I researched Dr. Haldane's 1938 work white persons and 5,001 Negroes with a on heredity and politics. He there voter registration of 1,979 white-120
the very process of representative govern
ment. points out very clearly that on most in- cent. The pending legislation is not
percent—and 275 Negroes-5.5 per Likewise, I feel that the purposes of govtelligence tests the Asiatic peoples do as
ernment debt which, in essence, is deferred well as Caucasians. On the other hand, aimed at establishing identity of races tax collection should be spelled out directly. the averages of Indian and Negro peobut merely equality of legal rights.
And debt should not be used indirectly to ples are below. Haldane points out that
Compassion and simple fairness dic
achieve other economic results.
We have great latitude in governmental it is obviously nurture or environment tate that the sovereign States of Mis
decisionmaking to produce the economic and not nature or heredity that accounts sissippi and Alabama yield to the inter
results we seek directly, through expendifor the difference. He points up that in ests of a better America on this issue. ture policy. Here is where policy can be the Army intelligence tests, Negroes
made after forthright public debate. Why tested below Caucasians in both the
should we shy away from the direct way of North and the South, but on the average
doing things, to act by indirection, unless
Al Reid, Newspaperman With a Heart northern Negroes tested equal to or
those who are in charge of running the Govhigher than southern whites.
ernment are seeking to confuse the process EXTENSION OF REMARKS
of government decisionmaking? Haldane concludes:
President Kennedy stated that the proMy own view is that probably there would
posed Revenue Act of 1963 was the most imbe slight differences found in the results of HON. ROBERT R. BARRY portant measure to face the Congress in the intelligence tests if all peoples were brought
OF NEW YORK
past 15 years. I countered by stating that if under a precisely similar environment, but
the economic and political philosophy underI would hesitate to say in which direction
IN THE HOUSE OF REPRESENTATIVES
lying this proposed Revenue Act prevailed, they would be found, except to suggest that Wednesday, November 13, 1963 it was probably the most important measure as the intelligence tests have all been devised
that has faced the Congress in its 177 years by whites, they would be likely to show a
Mr. BARRY. Mr. Speaker, Mr. Al
of existence. certain superiority of whites over Negroes Reid, distinguished writer and corre Surely it has now become clear to the *** it is quite likely that Negro examiners spondent of the Home News & Times general public that the fate of the Revenue could design tests on which their own race in Yonkers, N.Y., has been leading a Act of 1963 is wrapped up in a major and could beat the whites.
worthwhile effort to help the Cross revolutionary theory of fiscal policy called Haldane suggests that we could learn Country Hospital in Yonkers and the
planned deficit financing, rather than in the
details, important as they may be, of the tax something from the racetrack where Lawrence Hospital in Bronxville.
bill itself. horses of many colors are rated exclu He calls this effort “Operation Trading This is not just a matter of the soundsively on their performance.
Stamps.” Under this charitable plan, ness of the economic theory that cutting tax
rates already insufficient to produce the jerked away when we who differ on this to receive for the discipline they exercised revenues needed to meet our Federal ex matter speak, and so our arguments have not in saving and the risk they take for the saved penditures will stimulate the economy to been heard.
dollar they invest. What sort of confidence greater economic growth. It goes to the Let me establish a basic point of agree do they have in their own personal and basic question I posed at the beginning of ment. Hoarding is the real enemy of eco business economic future? People hoard if my remarks. Should tax policy be used to nomic growth. If people, and that includes they are uncertain, and the greater the unachieve these kinds of economic purposes? the people's servant-government-do not certainty, the greater the tendency to hoard.
In one sense, what I seek to point out spend, economic activity indeed will decline. A governmental fiscal and monetary policy may seem to be quibbling. There is little It is very important to emphasize that in has more to do with hoarding than any other question that our present Federal tax struc vestment money is money spent—not hoard factor. ture has gone beyond the point of diminish ed money. Investment money is spent for A government policy which says it will ing returns and is slowly eating away the capital assets, and training and gathering spend if its people are too stupid to spend very base upon which it relies for its future together manpower. Investment money and then seeks to finance the increased Govrevenues. In other words, our tax structure comes only from savings. The savings can ernment spending, not through taking the is creating considerable economic impact, be generated internally or externally. Use savings of the people, through increased and of the wrong kind, just in trying to do of external savings is borrowing someone's taxes (which, of course, would create probits indisputed job of collecting revenues to else savings.
lems of its own), but through selling more meet our ever increasing and seemingly in The President's statement that his opposi- Government bonds, is only going to aggravate satiable Federal expenditures.
tion is opposed to all borrowing-all debt, uncertainty and encourage an ever greater Furthermore, when tax rates are high, whatever its kind or source, is untrue. As incident of hoarding. This would set off however one alters any specific in the tax a matter of fact, I have been seeking for a dangerous spiral all of its own, even if an code one is bound to produce considerable sometime, without success, to have a full inflationary spiral did not accompany it. economic impact as a byproduct, for good or study in the Joint Economic Committee on Indeed, at a certain point, a deflationary for ill. However, I contend this is no the economic aspects of Federal debt to es spiral might set in and this could only be quibble. There is considerable difference in tablish what aspects are economically de broken by massive Government intervention, the end product in writing tax laws to gain sirable and what are not, and particularly which would deprive us of the right to call revenues as efficiently as possible with the what criteria should we establish to de ourselves a free society. minimum amount of impact upon the eco termine the proper levels of Federal debt. Debt, whether corporate, personal or govnomic decisions in the marketplace and to Why have the President and Dr. Heller ernment, is related to two things. Assets to deliberately interject Government economic avoided a straightforward discussion of the secure the debt and earning capacity to pay decision into the marketplace through the economic part the Federal debt plays in our off the debt. Innovation, which is the sole use of the tax structure.
society? I think it is fair to suggest it is source of economic growth, is financed by Indeed, I still have my doubts about how because the present level of Federal Govern savings largely of one's own, not of someone long the neo-Keynesians are going to stay in mental debt is the real villain in our econom else. The financing can be a mix of partly agreement with the neutralists on the theory ic picture right now and any further increase one's own savings and partly the savings of that our Federal income tax rates are so high in this debt through further deficit financing, someone else. The more risky the venture is, they are creating economic damage. To use as the President would have us engage in, the greater the part of the savings will tend tax policy for economic purposes most ef would make our unemployment picture and to be one's own. Also, the more risky the fectively, one needs to have high rates to our balance of international payments sit venture, the higher the return must be for start with. Otherwise, the differentials writ uation worse. If this happened, the great the borrowed dollars. So, the greater the inten in the tax laws are ineffective in forcing economic growth we have been experiencing novation, the greater is the economic beneeconomic decisions.
in spite of poor fiscal policy in the post- fits to the society. So we must encourage The neo-Keynesians have joined the neu World War II decades would be seriously not deter risk taking if we are to have maxitralists only recently in urging rate reduc hampered, not enhanced. The President and mum economic growth. tion, and I am not at all sure it was not his advisers have failed to identify the tre Debt backed up by physical assets tends forced upon them for practical political con mendous economic growth going on under siderations necessary if they were to surplant their very noses because they have been us
to be less risky than debt backed up by an
ticipated earnings. our traditional policy of tax neutrality with ing incomplete aggregate economic statistics
President Kennedy and Dr. Heller have that of using it as a major economic tool.
never designed to measure true economic After the principal has been established, they growth. They call our economy, which is
sought to relate Federal Government debt to can then increase the rates again. suffering from serious growing pains-we
personal debt, to corporate debt and to local Burning in my mind is the phraseology have been growing so fast—tired, lethargic,
and State governmental debt. They do this used by the President in his message to the and in need of a shot in the arm.
to allay the fears of our people about the
Federal debt. Congress first advocating tax rate reduction.
They identify obsolete, inefficient, and unHe said that if releasing spending power to
Then wanted plant equipment as idle plant capac
This is a fair subject for debate. the private sector through tax reduction did ity, as if it could be put to good economic
why do they pose the analogy and then renot produce the economic growth he sought, use if we only had more purchasing power.
fuse to discuss it? Indeed, we might well increased Government spending was the alThey identify the unemployed, concentrated
relate the assets and anticipated income be
hind these various kinds of debts to see how ternative. The objective is to increase total
as they are among the obsolete skilled, unspending, Government plus private; if the skilled, and semiskilled people, as manpower
they stack up. A cursory examination of private sector does not do the spending, then available for immediate economically mean
the composition of the Federal debt reveals Government must.
It ingful employment. They count on the in
that it comes off a very poor also ran. When one grasps this line of thought, it efficient, unwanted, and obsolete plant ca
doesn't even make the finish line. is not difficult to understand why President pacity and the obsolete skilled, unskilled,
The bulk of our Federal debt, just as the Kennedy has fought so bitterly the attempts and semiskilled manpower to sop up the in
bulk of Federal spending, is for the defense of some of us in the Congress to tie the tax creased purchasing power they would inject
of our country. And this is as it should be. bill to expenditure reform by deeds rather into our economy through tax cuts accom
But defense expenditures create little or no than words.
panied by increased Government expendi- capital assets and what assets there are cerThe President won a temporary victory in tures so no additional inflationary forces
tainly produce little or no earnings. Military the House when an intent of Congress was will be let loose. This is whipping the sea
hardware must go on the books at $1. Most put in the tax bill in lieu of a requirement for following its tides.
military buildings, being single purpose that the expenditure rates be cut. It is important if we are to carry forward liquidity and consumer purchasing power are
They ignore the fact that corporate buildings, must also be listed at a very low
value. Most of that small portion of the the debate on this fundamental fiscal policy at all time highs and that today the question
Federal debt which has created wealth or to understand where the areas of agreement of spending vs. hoarding is related to the earning power has resulted from the Federal and disagreement lie.
motivation for spending, not to the capacity expenditure policies which are under the I find the President and Dr. Heller, the to spend. Why are our corporations not in
most controversy. Indeed, there is a great Chairman of his Council of Economic Advesting in their own endeavors here in the
deal to be said for the point that if the purvisers, have created a series of straw men
United States to the extent that they have poses of the expenditure is to create wealth which they have been attacking with great the power to do so? Why are personal and and earning power the matter should be vigor.
corporate funds increasingly being sent handled in the private sector and not the While they do battle with these straw men, abroad for investment, so that the adminis governmental sector. Government is not the however, they carefully avoid the real op- tration now asks Congress to impose an ex partner of the people. It is the servant. ponents. The success they have achieved is cise tax on these investments to keep them Local and State governmental debt, it is essentially one of getting their story to the at home? To encourage them to be idle to be noted, almost invariably relates to spepublic and preventing their opposition from to be hoarded?
cific wealth creating expenditures, for highbeing heard. They have the microphone, as I think it is about time we looked into the ways, schools, sewers, community facilities, it were, of the national news media so that question of what makes men hoard by being etc., and is often reflected in sinking fund their arguments and their version of the idle themselves and letting their money and and revenue bonds. This kind of debt, aside battle done against the straw men is heard their assets be idle. I suggest that it has from reflecting the creation of real wealth, around the country. The microphone is directly to do with what return they expect is also a device for spreading the cost of the