« ПретходнаНастави »
to double the waste treatment construc- able and distinguished Senator from to insure that industry does its part in tion grant program then in operation- Maine [Mr. MUSKIE] will take my bill the fight for clean water? and in 1961 President Kennedy signed into consideration as he prepares for the I say we cannot do less. such an act into law.
next step in the battle to make our Na- We are the stewards of the Nation's Last spring I suggested to the Depart- tion's water clean. There is no doubt in resources. We have the responsibility to ment of Health, Education, and Welfare my mind that the United States owes a insure that future generations can enjoy that Connecticut would be an ideal debt of gratitude to the junior Senator what their forefathers possessed-and State in which to develop a meaningful from Maine. He has fought long and what we have come so perilously close pollution control program to serve as
hard for clean water, and his dedication to destroying forever. a model for the rest of the Nation. to this cause has meaning for the entire The PRESIDING OFFICER. The bill Highly industrialized, with a concenNation.
will be received and appropriately trated population drawing on a fixed I believe that my bill represents a referred. water supply, with both salt and fresh realistic assessment of a national need. The bill (S. 2481) to amend the Fedwater pollution problems, Connecticut Clean water is no luxury—it is essential eral Water Pollution Control Act, as has within its boundaries a microcosm to our Nation's future. The sooner we amended, to increase the share of Fedof all the Nation's pollution control realize that fact, the sooner we will con- eral financial assistance for construction headaches. quer the problem.
of municipal sewage treatment works The response of the Department of But municipal waste treatment facil- and to authorize increased appropriaHealth, Education, and Welfare was en- ities are not alone the answer. They are tions for the purpose of making such couraging. Under the Hudson-Cham- needed—they must be built--and the grants, and for other purposes, introplain metropolitan coastal comprehen- funds to build them must be provided. duced by Mr. RIBICOFF, was received, sive water pollution control project Conquering pollution will be a gigan- read twice by its title, and referred to which began this year, the Housatonic tic undertaking, requiring the coopera, the Committee on Public Works. River and Connecticut's Hudson River tion of every level of government and tributaries are being studied now. Next the best efforts of industry. We cannot year, the New England drainage basins merely point the finger of scorn at in- FOOD AND AGRICULTURE ACT OF project will be started—and encompass dustry and say "Do something about
1965—AMENDMENT the remaining waters in Connecticut. pollution.” We must squarely face the
AMENDMENT NO. 428 These projects will lay the groundwork fact that pollution control is expensive -
Mr. CARLSON. Mr. President, I suband provide the study leading to the de- and that industries make economic judg- mit an amendment, intended to be provelopment of a model water quality man- ments, not esthetic ones. agement program. Under the leadership I believe industry has come to realize posed by me to the bill (H.R. 9811) to
maintain farm income, to stabilize of Gov. John Dempsey, Connecticut is the good sense—and the utter necessityalready taking important steps to clean of assuring clean water. But substan- prices and assure adequate supplies of
agricultural commodities, to reduce surup the pollution in its rivers.
tial outlays of capital for pollution conWe have begun. We shall have a
We shall have a trol devices do not bring additional pluses, lower Government costs and prostudy. And we are building the founda- profits. In fact, if some firms within an mote foreign trade, to afford greater eco
nomic opportunity in rural areas, and tion for an action program. industry install equipment while others
for other purposes. I ask that the But although we need further study, do not, those willing to shoulder an and although we need to do further re- economic burden for the good of the amendment be printed and lie on the search on advanced pollution control community may find themselves at a table until the Senate considers the bill. techniques, this is also the time for accompetitive disadvantage within their
This amendment, if adopted, would
permit a man and wife who owned and tion. We know a a great deal about industry.
operated land individually previous to controlling pollution now. The question We must also recognize that there is a is: Are we willing to spend the money limit
to the effectiveness of the demand their marriage to operate the previously to do it? by a State: “Clean up or else.” The “or owned land independently after mar
riage under the farm program. If we are to save what water we have else” may well turn out to be a decision
The PRESIDING OFFICER. The left, we have no choice. If we are to by an industry to move to another amendment will be received and printed, prevent further despoiling of our preState—where controls are either unnec
as requested by the Senator from Kansas. cious water resources, we must act now. essary or not required. As a nation, we can afford the cost- The ultimate solution to the problem and I believe the Federal Government of industrial pollution must lie some- NOTICE OF PUBLIC HEARING ON must, of necessity, contribute a signifi- where between the two extremes. We THE NOMINATION OF LAWRENCE cant portion to the effort. can fairly demand that industry clean up
FRANCIS O'BRIEN, OF MASSACHUI, therefore, introduce, for appropriate its pollution only if we extend a reason
SETTS, TO BE POSTMASTER GENreference, a bill to amend the Federal able and equitable means of doing so.
ERAL Water Pollution Control Act. My bill I have proposed legislation to give the would quadruple the current Federal necessary economic incentives to indus- Mr. MONRONEY. Mr. President, as effort in this area-increasing from $100 try in S. 1670. That bill would permit chairman of the Committee on Post Ofmillion to $400 million the annual Fed- taxpayers who buy treatment equipment fice and Civil Service, I wish to announce eral contribution to State and local waste to deduct its cost over 36 months— that the committee will hold a public treatment plant construction programs. rather than the entire useful life of the hearing on the nomination of Mr. LawIn addition, the bill would increase the equipment.
rence Francis O'Brien, of Massachusetts, maximum grant allowed each
I understand that the administration to be Postmaster General, at 10 a.m., munity from 30 percent of the cost of has had the use of economic incentives Wednesday, September 1, 1965, in room the project to 50 percent—and remove for pollution control under considera- 6202, New Senate Office Building. all maximum dollar limitations now in tion since last February. In fact, the
Anyone wishing to testify on this nomthe law.
President ordered that such a study be ination may arrange to do so by calling Under my bill Connecticut could re- made in his message on natural beauty. the committee staff, 225–5451. ceive $5,285,200—as opposed to the Despite the President's obvious interest $1,321,300 allocation under the present in this area, the Council of Economic Ad- NOTICE OF RECEIPT OF NOMINAlaw. By State and local matching of the visers has not come to grips with the
TION BY COMMITTEE ON FORFederal contribution we will double these problem. It has procrastinated and de
EIGN RELATIONS amounts. And as a nation we will be layed. I recognize that it is never comable to maintain the $800 million annual fortable to grasp the nettle—but grasp Mr. FULBRIGHT. Mr. President, as effort needed to bring our communities' it we must, if we are to solve the problem chairman of the Committee on Foreign treatment facilities up to date. of pollution.
Relations, I desire to announce that yesMr. President, my bill represents what The time for a decision is long over- terday the Senate received the nominaI believe we must do to solve our pollu- due. Can we afford as a nation an addi- tion of John A. Gronouski, of Wisconsin, tion problems. I would hope that the
I would hope that the tional $50 to $150 million in tax relief to be Ambassador Extraordinary and
Plenipotentiary of the United States of eign Relations Committee, Senator FUL- myself and that it demeans the process
of honest debate in the Senate on probIn accordance with the committee rule, It was even implied that last week's lems of foreign policy. this pending nomination may not be con- exchange between the chairman and Mr. FULBRIGHT. Mr. President, I sidered prior to the expiration of 6 days myself on the question of the Dɔminican appreciate what the Senator from Conof its receipt in the Senate.
Republic was simply another manifes- necticut has said. As he has correctly tation of this so-called feud rather than stated, on the great majority of the is
an honest expression of opposing view- sues before our committee, we are in NOTICE OF HEARING ON NOMINApoints.
agreement. He has given me his proxy TION OF SIDNEY O. SMITH, JR., I know that talk of a feud between on numerous occasions. Occasionally OF GEORGIA, TO BE U.S. DISTRICT two Senators makes interesting news- there occurs a difference of point of view; JUDGE, NORTHERN DISTRICT OF paper copy.
and both of us may be inclined to overGEORGIA
But, if it will help at all, I want to state our personal point of view. But Mr. EASTLAND. Mr. President, on
assure my friends of the press that there that has nothing to do with our personal behalf of the Committee on the Judici- never has been any feud between the feelings.
chairman of the Foreign Relations Com- I reciprocate what the Senator has ary, I desire to give notice that a public mittee and myself, and there is none said. I have the highest regard for hearing has been scheduled for Wednestoday.
him as a Senator and as a member of day, September 8, 1965, at 10:30 a.m., in room 2228, New Senate Office Building, the Senator from Arkansas whom I re
I have the greatest respect, indeed, for the Foreign Relations Committee. I re
gret that the press tends to interpret on the nomination of Sidney O. Smith, Jr., of Georgia, to be U.S. district judge, gard as one of the ablest and most these differences as a personal feud. I northern district of Georgia, vice wil- original thinkers in the Senate in the appreciate what the Senator has just sphere of foreign policy.
said. liam Boyd Sloan, retired.
Our relationship in the committee has Mr. DODD. I am deeply grateful to At the indicated time and place per- been a most cordial one; and I believe my chairman. sons interested in the hearing may make the record will show that I have voted
Mr. MANSFIELD. Mr. President, I such representations as may be pertinent. alongside the committee chairman far have listened with great interest to the
The subcommittee consists of the Senator from North Carolina (Mr. ERVIN),
more frequently than I have taken issue colloquy between the Senator from Conwith him.
necticut [Mr. DODD) and the Senator the Senator from Nebraska [Mr. HRUS
The chairman of the committee enjoys from Arkansas [Mr. FULBRIGHT). KA), and myself, chairman. a deserved reputation as a man who says
I do not believe it was necessary for what he thinks, and he has never hesi- them to set the record straight so far as NOTICE CONCERNING NOMINA- tated to espouse a viewpoint simply be- their colleagues are concerned, because
TIONS BEFORE COMMITTEE ON cause it was unpopular. I hope the press if the time comes when a Senator canTHE JUDICIARY
will accord me the courtesy of believing not express what he is individually
that I, too, am governed by the dictates thinking, or exercise initiative or reMr. EASTLAND. Mr. President, the of conscience when I take stands that sponsibility, it will be a sad day for the following nominations have been re- may be controversial.
Senate. ferred to and are now pending before
That the chairman and I should have Nonetheless, I am delighted that these the Committee on the Judiciary:
differences on certain aspects of foreign two outstanding Members of this body George M. Stuart, of Alabama, to be policy is only natural and proper; and if went as far as they did in making this U.S. marshal, southern district of Ala
we sometimes voice these differences on statement, though, I repeat, it was not bama, for a term of 4 years, reappoint- the floor of the Senate, I believe that in
at all necessary so far as their colleagues ment;
doing so we have, on both sides, made are concerned. Richard E. Eagleton, of Illinois, to be some contribution to the process of pub
Mr. DODD. I am deeply grateful, Mr. U.S. attorney, southern district of Il- lic debate.
President, to the majority leader. He is linois, for a term of 4 years, vice Edward
I am certain that the Senator from a kind and generous friend, and I appreR. Phelps, term expired; and
Arkansas has never taken issue with me ciate his kind remarks about me and the David G. Bress, of the District of Co- for purely personal reasons or because of chairman of the Foreign Relations Comlumbia, to be U.S. attorney for the Dis- any so-called feud; and I am equally cer
mittee. trict of Columbia for a term of 4 years, tain in my own mind that, if I have vice David C. Acheson. sometimes taken issue with the chair
EXECUTIVE SESSION On behalf of the Committee on the Ju- man of the Foreign Relations Commit
Mr. MANSFIELD. Mr. President, I diciary, notice is hereby given to all per- tee, my remarks have stemmed from move that the Senate proceed to consider sons interested in these nominations to honest conviction rather than from any executive business to consider two nomifile with the committee, in writing, on imaginary personal animus. or before Tuesday, September 7, 1965, In the heat of debate, in the Senate or tee on the Judiciary.
nations just reported from the Commitany representations or objections they anywhere else, harsh words are some
The VICE PRESIDENT. The quesmay wish to present concerning the times exchanged. This is regrettable. tion is on agreeing to the motion of the above nominations, with a further state. However, the great majority of harsh Senator from Montana. ment whether it is their intention to ap- words exchanged in the course of debate pear at any hearing which may be are not the product of personal ill-feel- Senate proceeded to the consideration of
The motion was agreed to, and the scheduled. ing, but are, instead, a manifestation of
executive business. a weakness which afflicts most human be
The VICE PRESIDENT. If there be COMMITTEE MEETING DURING THE ings who are active in debate and public no further reports of committees, the SENATE SESSION discussion.
clerk will state the nominations.
I know this is so, because I have been On request by Mr. Hart, and by unan- an advocate most of my life. I underimous consent, the Committee on Fi- stand as well as any man how regret
U.S. COURT OF APPEALS nance was authorized to meet during the table statements can sometimes be gensession of the Senate today.
The legislative clerk read the nominaerated by heated debate, and I have my- tion of Edward M. McEntee, of Rhode self, unfortunately, been guilty of such Island, to be U.S. circuit judge, first mistakes on occasion.
circuit. ALLEGED FEUD IN FOREIGN RELA
I, therefore, wish to request of the The VICE PRESIDENT. Without obTIONS COMMITTEE
Senate press corps that they examine our jection, the nomination is confirmed. Mr. DODD. Mr. President, over the statements, both past and future, on past several days, a number of items their objective merits, rather than spechave appeared in the press suggesting ulating about personal motives.
U.S. DISTRICT COURT that there is some kind of feud between I feel that such speculation does in- The legislative clerk read the nominathe distinguished chairman of the For- justice to the committee chairman and tion of William O. Mehrtens, of Florida,
to be U.S. district judge for the southern section 1 of this Act which permits the tele- SEC. 4. Nothing in this Act shall be condistrict of Florida.
casting of all or a substantial part of any strued to deprive any players in the orgaThe VICE PRESIDENT. Without ob
professional football game on any Friday nized professional team sports of baseball,
after 6 o'clock post meridian or on any football, basketball, or hockey of any right jection, the nomination is confirmed.
Saturday during the period beginning on to bargain collectively, or to engage in other Mr. MANSFIELD. Mr. President, I
the second Friday in September and ending associated activities for their mutual aid or ask unanimous consent that the Presi
on the second Saturday in December in any protection. dent be immediately notified of the con- year from any telecasting station located SEC. 5. Except as provided in section 1 of firmation of these nominations.
within seventy-five miles of the game site this Act, nothing contained in this Act The VICE PRESIDENT. Without ob- of any intercollegiate or interscholastic shall be deemed to change, determine, or
otherwise affect the applicability or nonjection, the President will be notified football contest scheduled to be played on such a date if
applicability of the antitrust laws to the forthwith.
"(1) such intercollegiate football contest organized professional team sports of base
is between institutions of higher learning, ball, football, basketball, or hockey. LEGISLATIVE SESSION
both of which confer degrees upon students SEC. 6. Section 3 of the Act of September
following completion of sufficient credit 30, 1961 (75 Stat. 732), is amended to read On request by Mr. MANSFIELD, and by hours to equal a four-year course, or
as follows: unanimous consent, the Senate resumed “(2) in the case of an interscholastic “Sec. 3. Section 1 of this Act shall not the consideration of legislative business. football contest, such contest is between apply to any joint agreement described in
secondary schools, both of which are section 1 of this Act which permits the tele
accredited or certified under the laws of the casting of all or a substantial part of any APPLICATION OF THE ANTITRUST State or States in which they are situated professional football game on any Friday LAWS AND THE FEDERAL TRADE and offer courses continuing through the after 6 o'clock post meridian or on any Satur
twelfth grade of the standard school curric- day during the period beginning on the secCOMMISSION ACT TO ORGANIZED ulum, or the equivalent, and
ond Friday in September and ending on the PROFESSIONAL TEAM SPORTS
“(3) such intercollegiate or interscholastic second Saturday in December in any year
football contest and such game site were Mr. MANSFIELD. Mr. President, I
from any telecasting station located within announced through publication in a daily seventy-five miles of the game site of any ask unanimous consent that the Senate newspaper of general circulation prior to intercollegiate or interscholastic football proceed to the consideration of Calendar
March 1 of such year as being regularly contest scheduled to be played on such a date No. 446, Senate bill 950. scheduled for such day and place."
ifThe VICE PRESIDENT. The bill will
"(1) such intercollegiate football contest
So as to make the bill read: be stated by title for the information of
is between institutions of higher learning, the Senate.
both of which confer degrees upon students The LEGISLATIVE CLERK. A bill (S. 950) Be it enacted by the Senate and House of following completion of sufficient credit to make the antitrust laws and the Fed- Representatives of the United
States of Amer. hours to equal a four-year course, or ica in Congress assembled, That, (a) except
“(2) in the case of an interscholastic footeral Trade Commission Act applicable to as otherwise provided by subsection (b), the
ball contest, such contest is between secondthe organized professional team sports Act of July 2, 1890, as amended (26 Stat.
ary schools, both of which are accredited of baseball, football, basketball, and 209); the Act of October 15, 1914, as amended
or certified under the laws of the State or hockey and to limit the applicability of (38 Stat. 730); and the Federal Trade Com
States in which they are situated and offer such laws so as to exempt certain aspects mission Act, as amended (38 Stat. 717), shall
courses continuing through the twelfth
grade of the standard school curriculum, or of the organized professional sports of be applicable according to their terms to the
the equivalent, and baseball, football, basketball, and hockey, organized professional team sports of base
ball, football, basketball, and hockey, except and for other purposes.
“(3) such intercollegiate or interscholastic that neither such Act shall apply to any
football contest and such game site were anThe VICE PRESIDENT. Is there ob- contract, agreement, rule, course of conduct,
nounced through publication in a daily jection to the present consideration of or other activity by, between, or among per
newspaper of general circulation prior to the bill? sons conducting, engaging, or participating March 1. of such year as being regularly
scheduled for such day and place.” There being no objection, the Senate in any one of the organized professional team proceeded to consider the bill, which had sports of baseball, footbal, basketball, or
Mr. MANSFIELD. Mr. President, it hockey to the extent to which such contract, is my understanding that the senior been reported from the Committee on
agreement, rule, course of conduct, or activ. Senator from Indiana (Mr. HARTKE] the Judiciary, with amendments, on
on ity relates to page 1, line 3, after the word "That,", to
(1) the equalization of competitive play- would like to take the floor for 10 to 15 insert “(a) except as otherwise pro- ing strengths;
minutes, if the Chair will recognize him. vided by subsection (b),"; on page 2, (2) the employment, selection, or eligibility Mr. JAVITS. Mr. President, will the after line 17, to insert a new subpara- of players, or the reservation, selection, or Senator yield? graph, as follows: assignment of player contracts;
Mr. MANSFIELD. I yield to the Sen(3) the right to operate within specificator from New York. (b) The exemption conferred by subsec
geographic areas; or tion (a) shall not apply to any agreement, (4) the preservation of public confidence talk for about 10 minutes when the Sen
Mr. JAVITS. I, too, would like to plan, or arrangement under which any club
in the honesty in sports contests. administering a professional sport team may
(b) The exemption conferred by subsec
ator from Indiana has finished, and behave an exclusive or preferred right to negotiate for the services of any college plan, or arrangement under which any club business.
tion (a) shall not apply to any agreementfore the Senate returns to the pending student if such agreement, plan, or arrange- administering a professional sport team may The VICE PRESIDENT. The Chair ment would permit such club to enter into
have an exclusive or preferred right to nego- will try to accommodate the senior Sena professional athletic contract with any student who has matriculated, at a four- such agreement, plan, or arrangement would
tiate for the services of any college student if ator from New York. year college granting degrees, before the permit such club to enter into a professional
The Senator from Indiana is recogearlier of the following dates: (1) the date athletic contract with any student who has
nized. of the conclusion of the fourth academic
matriculated, at a four-year college granting year following his matriculation, or (2) the
degrees, before the earlier of the following PRESERVING WORLD PROSPERITY: date of the conclusion, during the fourth
dates: (1) the date of the conclusion of the academic year following his matriculation, fourth academic year following his matricu
A NEW ROLE FOR THE INTERNAat the college at which he first matriculated, lation, or (2) the date of the conclusion, dur
TIONAL MONETARY FUND of the scheduled intercollegiate season of the
ing the fourth academic year following his professional sport to which he has been matriculation, at the college at which he
Mr. HARTKE. Mr. President, I insigned.
first matriculated, of the scheduled intercol- tend today to continue the growing naAnd, on page 3, line 24, after “Sec. legiate season of the professional sport to tional and international debate over the
balance-of-payments position of the 6.", to strike out “Nothing in this Act which he has been signed. shall be deemed to amend or otherwise
SEC. 2. As used in this Act, “persons" means United States and the financial situation affect the Act of September 30, 1961 unincorporated association or any combina
ary individual, partnership, corporation, or of the free world. (75 Stat. 732)." and insert:
The signal achievement of United tion or association thereof.
States international financial policy in Section 3 of the Act of September 30, 1961 SEC. 3. Nothing in this Act shall affect any the past 15 years has been the elimina(75 Stat. 732), is amended to read as cause of action commenced prior to the follows: effective date hereof in respect to the orga
tion of the U.S. balance-of-payments “Sec. 3. Section 1 of this Act shall not nized professional team sports of baseball, deficit accomplished in the second quarapply to any joint agreement described in football, basketball, or hockey.
ter of this year. For the past 15 years,
with the exception of the Suez crisis year been the dollars which our payments moded economic theories and scantily of 1957, the United States has run bal- deficits have been supplying to the rest supported power aspirations of the deance-of-payments deficits on a scale un- of the world. The question we must
of the world. The question we must flation-minded agents of Economic Gaulsustainable by any other nation. For face—the question on which the Senate
face-the question on which the Senate lism—the central bankers of Continental the past 8 years, as least, these balance- must be heard is: What will happen to Europe. And, second, we must beware
. — of-payments deficits have put the the growth of world trade and our own lest our renewed drive toward a prosAmerican Government on the defensive continuing prosperity if we cease to sup- perous, growing, and cooperative free in dealing with our foreign short-term ply the rest of the world with those world economy be sabotaged by “beggar creditors. But the firm and prudent vitally needed dollars?
my neighbor” policies adopted as despolicies of the Johnson administration The threat to world prosperity inher- perate expedients to preserve markets have at last given us the initiative, an ent in the elimination of the U.S. bal- and currencies from liquidation and deinitiative commensurate with the un- ance-of-payments deficit is not that pression. precedented economic strength and eco- there will be a general, uniform, world- Let us make no mistake about it, in nomic prosperity of this country. wide shortage of dollars with which to today's interdependent world depression
Our prosperity today is both great and finance trade. The threat is, rather, in one country threatens disaster for growing greater. We are enjoying the that one or more vulnerable nations will all others. We are not in an economic longest peacetime period of economic experience a liquidity squeeze due to the depression today—nor is any other inexpansion in our history—55 months of maldistribution of dollars in the free
maldistribution of dollars in the free dustrially developed nation. But the continuous expansion. And the whole of world economy.
world economy. And the ultimate dan- time to preserve prosperity-as the histhe industralized world has shared in ger is that a liquidity squeeze in one tory of the last 4%2 years demonstratesthat prosperity.
country will generate crisis liquidations is to head off the threat of depression There are two fallacies which we must in others as the threatened nations seek
in others as the threatened nations seek before it becomes actual. avoid in viewing the future from our to protect their currencies and econ- Great Britain is now undergoing the present peak of economic well-being.
well-being. omies by cashing in their international beginnings of a severe economic slowFirst, we must not adopt the fatalistic assets for dollars or gold.
down. This slowdown has been deliberassumption that there is a mysterious That is precisely what happened in the ately and explicitly induced by the Britkind of economic "law of gravity.” What crisis year of 1931. Then, a French pro- ish Government to reduce the demand goes up—in terms of income, of produc- voked liquidity crisis in Austria, set off for imports and, thus, to protect the tion, of profits—need not come down. a chain reaction of liquidations in Ger- pound. But the result of an economic
Second, we must avoid the overopti- many, Britain, the United States, and, slowdown in Great Britain is to deprive mism which assumes that prosperity is finally, France herself. The post-World Britain's basic industrial suppliers-donow our birthright and needs no tend- War I monetary system was shattered,
mestic and foreign-of markets. Steel ing. For, the truth is that the past 412 currencies were universally and destruc- that cannot go to Liverpool from Wales years of prosperity are the result of tively devalued, and economic downturns or Hamburg will go to Philadelphia or careful watching, constant attention, and in various nations were transformed into Detroit or other distressed places, such as timely action on the part of the admin the greatest worldwide economic depres
the greatest worldwide economic depres- New Jersey--and at distress prices. istration. Time and again, under both sion in history. It is this chain reaction Moreover, the $3 billion plus of British President Kennedy and President John- of liquidation which the U.S. Govern- assets, both private and official, that are son, our Government has seized the ment must prevent—and certainly, sitting in New York are already being initiative-with liberalized depreciation above all, we must not provoke.
called home to bolster the British econguidelines and investment credits, with Already, Great Britain has been iden- omy and the British pound. And presa massive income tax cut and a care- tified as the potential weak link in to- sures are growing on the British Governfully gaged excise tax cut-in the con- day's chain of world prosperity and
day's chain of world prosperity and ment to match its domestic retrenchtinuing struggle to maintain our eco- liquidity. On August 12, the distin- ment with a pullback from its internanomic impetus That record of initia- guished Senator from New York (Mr. tional responsibilities in the Middle and
. tive in economic and financial policy and JAVITS] made a major contribution to
Far East. The one sure way to guaraction is, perhaps, the finest achievement our understanding of the problems antee that balance-of-payments equilibof the Johnson administration. which Great Britain faces, while at the
rium in the United States will not be But threats to our prosperity come not same time he took the lead in proposing
same time he took the lead in proposing maintained is to force Britain to liquidate only from within our domestic economy. specific policy initiatives to aid the Brit- its dollar holdings, to compel Britain's We are part of a free world economy and ish Government's vigorous, long-term
ish Government's vigorous, long-term suppliers to dump in New York or Inour fate is intimately and intricately program of modernization. In the diana what they cannot sell in London linked to that of the rest of the free spirit of bipartisanship in international
and to create a strategic vacuum in Maworld. And the overriding threat to free affairs, I would like to take this oppor
free affairs, I would like to take this oppor- laysia into which U.S. troops—and dolworld prosperity—and thus to our own- tunity to associate myself in every way
lars-must fiow. lies in the functioning of the interna- with the perceptive analysis and far- It is not, therefore, only out of contional monetary mechanism which ties reaching recommendations of my distin
cern for the achievement of our longtogether all the interdependent, national guished colleage from New York. The term foreign policy aspirations that I segments of that free world economy. It six-point program for economic, finan- speak today. I speak today, as well, out was in the spirit of the Johnson admin- cial, and political cooperation with Great of fear for the jobs of American workers, istration's entire approach to economic Britain offered by the senior Senator
for the profits of American enterprise, and financial problems that Treasury from New York provides a new and
and for the revenues of the American Secretary Fowler seized the initiative in needed point of departure for American
Government. These are the three calling for an international conference policy toward Europe and, indeed, to
sources of our economic and financial to improve the functioning of the free ward the entire free world.
strength-wages, profits, and tax revworld's monetary mechanism. And it is We must not allow the initiative in
enues. All three are threatened by the in that same spirit that he is in Paris relations between Europe and America
relations between Europe and America incipient liquidation of world prosp today seeking to transform that initiative to fall by default to General de Gaulle.
that had had its first blossoming in Britinto action—with the full backing of the We can and must continue to move to
ain. It may shortly be too late to ask, as President. ward that close and cooperative work
all great innovators in history have The free world today critically requires ing relationship with our like-minded asked, “what is to be done?” American initiative on the whole range allies that has been the cornerstone of
What is to be done? of international financial and economic our whole international economic pol- First, we must head off the deflationary problems. As many wise and informed icy—from the Bretton Woods Confer- pressures which Britain's economic slowobservers—both within and without our ence of 1944 to the Kennedy round tariff down may generate. Presidential exempGovernment and both within and with negotiations of today. But there are tion of Britain from the interest equaliout our Nation-have pointed out, that two prerequisites if we are indeed to zation tax, on the clearly justifiable one dynamic factor in international achieve that partnership of friendship
achieve that partnership of friendship grounds that the tax's application to liquidity which has been financing the and alliance which is our goal. First, Britain threatens international monetary tremendous growth in world trade has we must not be deterred by the out
we must not be deterred by the out- stability, is a step that can and should
be taken at once. Administration en- tial allocation of credits would go to par- International Monetary Fund by the memcouragement of private American invest- ticipating countries in direct proportion ber nations, apportioned according to the ment in Britain and private business co- to each nation's gold subscription; each recent allocation of quotas.
Mr. HARTKE. operation between the two countries can nation's monetary authority would have
Mr. President, the also be undertaken swiftly. Above all
, full discretion to determine what access, views are many and varied on the likelithe determination must be maintained if any, to the new addition to the world hood that the threat which I have identithat a stable pound at its present value money supply should be granted to that fied today will become realities. There is as crucial to our interests as it is to nation's importers.
is even an opinion, common among the Britain's.
I send to the desk a resolution propos- heirs of those central bankers of ConBut heading off today's crisis will not ing a study of the feasibility of utilizing tinental Europe who initiated the last alone insure that we will have the time trade credits issued by the International worldwide liquidation and depression, to accomplish our long-range goals of Monetary Fund to facilitate interna- that there is too much liquidity in the international monetary reform and closer tional trade.
world. More common is the outlook that free world economic cooperation.
The PRESIDING OFFICER (Mr. Wil- any liquidity squeeze anywhere is suffiSecond, we must make sure that future LIAMS of New Jersey in the chair). The ciently far in the future to make undeflationary trade and financial crises do resolution will be received and appro- necessary such intiatives as that pronot arise. In our own interest and in priately referred.
posed in the resolution which we have the interest of the free world, we must The resolution (S. Res. 142), sub- just introduced. do our best to guarantee that an end to mitted by Mr. HARTKE (for himself and It should be enough, Mr. President, to dollar outflows does not mean an end to other Senators) was received and re
cite the adage that an ounce of preventrade expansion. The critical need of ferred to the Committee on Foreign Rela- tion is worth a pound of cure. Last year, the world economy today, in the years tions, as follows:
the pound of prevention required to save before fundamental monetary reform can
the British pound amounted to more
S. RES. 142 be accomplished, is for internationally
than $3 billion. But I will go further.
Whereas United States prosperity and ecoacceptable media for the international nomic growth depends upon a soundly grow
If those who hold that little or no urtransfer of goods. ing free world economy based, in turn, upon
gency is required in the effort to over
haul the international monetary system Mr. President, the resolution which I a stable international monetary system; am submitting today on behalf of myself
Whereas the present international mone- are correct and I do not believe they and other Senators is based upon a pro- tary system, known as the gold exchange are-taking out the insurance policies posal formulated and presented on July States dollar's role as the number 1 inter
standard, is founded upon the United which I have proposed today will still 18 to the International Payments and national reserve currency and the number
cost us nothing. And such action will, Exchange Subcommittee of the Joint 1 medium for the international exchange of
in any case, have positive benefits-inEconomic Committee by the distin- goods, services, and capital;
cluding closer cooperation between proguished senior Senator from Minnesota Whereas expanding free world trade and gressive-minded governments around the [Mr. MCCARTHY] and myself. The dis- continuing free world prosperity depend upon world, the first real step toward internatinguished Senators from Alaska (Mr. an adequate and growing supply of inter- tionalizing the burden which the dollar BARTLETT), from Utah (Mr. Moss), from national liquidity, of which the United States bears today almost alone and the first dollar is a key component;
real demonstration that aid can make Ohio [Mr. YOUNG), from Montana [Mr.
Whereas chronic United States balance-of- trade. If, on the other hand, the critics METCALF], from Texas [Mr. YARBOROUGH), payments deficits have raised questions with from Pennsylvania [Mr. CLARK], from regard to the role of the United States dollar
of urgency prove to be wrong—as I have Illinois (Mr. DOUGLAS), and from New as a stable store of value and medium of ex
said I believe they are—but no action Jersey [Mr. WILLIAMS) have joined in change and, thereby, have called forth the has been taken, the consequences will sponsoring this resolution. Its aim is to President's emergency balance-of-payments be, in a word, disastrous.
Mr. President, I ask unanimous confulfill the need of the world economy for program which has successfully restrained an additional increment to the world's of-payments surplus in the second quarter until the close of business on Friday for
the outflow of dollars and produced a balance- sent that the resolution lie on the desk money supply—without placing an addi
of 1965; tional burden on the dollar.
additional cosponsors. Whereas the elimination of the United
The PRESIDING OFFICER. Without Simply put, our resolution would re- States balance-of-payments deficit, by removspectfully request the President to ing a critical, annual increment to the free objection, it is so ordered. authorize a study of the feasibility of world's supply of liquidity, threatens the con- · Mr. JAVITS. Mr. President, I compliproposing an expansion of the functions tinued growth of free world trade and the ment my colleague the Senator from Inof the International Monetary Fund to continued maintenance of free world pros- diana, on the care and attention which include the issuing of trade acceptances perity;
he is giving to this very grave problem, and credits against shipment of goods in stability requires internationalization of the of the world.
Whereas long-term international financial which concerns the economic condition international trade. The mechanism of burden of financing world trade which the such an expansion of the International dollar and the British pound now bear large
I agree with him that we should not Monetary Fund's authority is quite sim- ly alone; and
necessarily have a sharp recession and ple. Gold that would otherwise be pur
Whereas the International Monetary Fund depression, though some form of correcchased from our Treasury to lie sterile in exists as an internationally accepted insti- tion in a free economy is always necescentral bank vaults around the world tution dedicated to the elimination of in- sary. It is our duty to cushion its effect would be deposited in the International potential for expansion to meet the changing
ternational monetary disturbances, with the on the individual. Monetary Fund. On the basis of the new needs of the Free World economy: Now, with the use of unemployment insurance,
I am strongly for that course of action, gold subscription, the International therefore, be it Monetary Fund would be authorized to Resolved, That the President is respectfully social security, manpower retraining, and issue trade credits up to an internation- requested to cause an immediate joint study the many other forms of help which we ally negotiated multiple of the amount of to be undertaken by the appropriate agencies will make available and are making gold subscribed. The backing of the of the Government, including the President's available to place a concrete base under
Council of Economic Advisors, the Depart. the economy and to see that no person in credits would be in part the gold subscription and the rest, as with all bankment of the Treasury, and the Board of Gov
this country suffers. However, essenernors of the Federal Reserve System, to deer's acceptances, the actual goods whose termine the feasibility of proposing the ex
tially, if we were wise and able, we could transfer is being financed.
pansion of the International Monetary anticipate the swings and materially deal No discretion would be granted the Fund's role to include the issuance of trade with them so that they would not have International Monetary Fund to deter- credits and banker's acceptances to the des- the sharp effect that they are always in mine the volume of trade credits out- ignated banking institutions of the member danger of having. standing. No question of loss of sover
nations of the International Monetary Fund I believe, laying that aside, that they
against the shipment of goods in internaeignty would be involved for any nation.
are far from perfect now. We face a tional trade; the supply of such credits to No intervention of the International be equal to an internationally determined grave economic situation with respect to Monetary Fund in the banking system of multiple of an internationally determined the British pound and the British ecoany nation would be allowed. The ini- subscription of gold to the account of the nomic situation, which could rock the