A POLICY FOR VIETNAM

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP67B00446R000300180034-3
• Release Decision: RIFPUB
• Original Classification: K
• Document Page Count: 10
• Document Creation Date: December 15, 2016
• Document Release Date: October 6, 2003
• Sequence Number: 34
• Publication Date: June 4, 1965
• Content Type: OPEN

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June 4, 1965 CONGRESSIONAL RECORD - APPENDIX
In history I doubt if any political scien-
tist or historian would say that the leg-
islative branch of Government was pre-
dominant. Certainly the executive, since
the early 1930's, has become stronger and
stronger and has become a more pre-
dominant branch of our Government.
In more recent years our Supreme Court
and the judicial branch of Government
has become stronger and stronger and
in some instances, in my opinion, has en-
tered into the legislative field.
The question before us 'really involves
the power of the Congress, our power
as an equal coordinate branch of the
Government. We, the Congress, should
be jealous of our constitutional prerog-
atives. We should, guard with every ef-
fort we can put forth the rights we have
as legislators.
I have no objection, nor does anyone
of whom I know on the minority side,
to the extension of this act. We feel that
under the circumstances it has been a
constitutional delegation to the Presi-
dent. But we do feel there should be
periodic reexaminations of the use of this
power of reorganization.
I understand, from the gentleman from
California, that an amendment will be
offered at the close of the debate in the
Committee of the Whole to extend the
act, rather than permanently, for a pe-
riod of 31/2 years.
.. Mr. 1IOLIFIELD. Mr. Chairman,
will the gentleman yield?
Mr. ERLENBORN. I yield to the gen-
tleman from California.
Mr. , HOL,IFIELD. Does the gentle-
man not believe that this is a reasonable
compromise between those who feel
that 2 years should be the time limit and
those who believe the act should be ex-
tended on a permanent basis?
Mr. ERLENBORN. I do not, for two
reasons.'
. First is the fact that it would bind a
future Congress, if we made the exten-
sion more than 2 years. Second, I be-
lieve a fatal error in picking this
particular time-I believe it is really 3
years and 7 months-is that it would
make the act expire on December 31,
1968. I believe that using this particu-
lar period of time, which the other body
has and. which the gentleman proposes
In his amendment, would almost guar-
antee that the power would lapse, be-
cause it would lapse at a period of time
when Congress would not be in session.
The next session would begin in Janu-
ary of 1969. Therefore, the power would
lapse, and it would take some period of
months for Congress to extend the
power.
Mr. HOLIFIELD. If the gentleman
will yield further, I will say it is cus-
tolnary to extend acts some time before
the expiration dates. There would be
nothing to prevent our committee,
Whieh is a diligent committee, from. ex-
tending _the time prior to the expiration
of the act.
Mr. ERLENBORN. I would say to the
gentleman I understand from a reading
of the hearings in the other body the
purpose of the extension for this period
of time was to make it coextensive with
the term of the President, so when a
new President came into office the new
President could reexamine this power.
I submit to the gentleman if the exten-
sion occurs in 1968, before the expira-
tion of this time, the Congress will not
know who the new President is. So this
argument is no longer valid.
Mr. RUMSFELD. Mr. Chairman, will
the gentleman yield to me?
Mr. ERLENBORN. Yes. I yield to
the gentleman from Illinois.
Mr. RUMSFELD. I want to commend
and congratulate the gentleman from
Illinois for this very fine presentation
and analysis of this rather complex
question. I certainly concur in much
of what he has said., I quite agree with
him that while the proposed 31/2-year
extension is a considerable improvement
over a permanent extension, the 2-year
extension, which he was discussing and
which was discussed in great detail in
the minority views, is certainly prefer-
able. Again let me acknowledge the
very thoughtful contribution which has
been made by the gentleman from
Illinoisi
EXTENSION OF REMARKS
OF
HON. JEFFERY COHELAN
OF CALIFORNIA
IN THE HOUSE OF REPRESENTATIVES
Wednesday, June 2, 1965
Mr. COHELAN. Mr. Speaker, in a
special statement to the House of Com-
mons, reported by Karl Meyer in this
morning's Washington Post, British For-
eign Secretary Michael Stewart has
clearly outlined a reasoned and reason-
able path to peace in Vietnam.
Mr. Stewart has suggested:
First, a conference under whatever
auspices can be agreed-a ceasefire could
either precede such a conference or be
achieved at the conference.
Next, a settlement which assures South
Vietnam against any form of aggression.
Once so assured, South Vietnam would be a
country in which there would be no for-
eign troops or bases and which was tied to
no military alliance.
And third:
The future relationship between North
and South Vietnam should be a matter for
free decision of the peoples of both
countries.
Mr. Stewart stated to the House of
Commons that the barrier to peace in
Vietnam is the "refusal of the Govern-
ments of North Vietnam, China, and the
Soviet Union to negotiate at all."
He also made clear that his proposals
had not been specifically agreed upon
with the United States, but as Karl
Meyer points out, they are in accord with
stated American policy.
Mr. Speaker, it is clear that negotia-
tions and a diplomatic settlement are
essential if peace and independence are
A2895
to be secured in South Vietnam. Foreign
Secretary Stewart has outlined a mean-
ingful path to that objective. Despite the
intransigence evidenced to date by our
adversaries, we must pursue this course
with diligence and with vigor if a better
alternative to war and aggression and
uncertainty is ever to be offered the peo-
ple of South Vietnam.
I include the article of Karl Meyer for
our colleagues' information and atten-
tion :
BRITISH OFFER VIETNAM PLAN, SCORE RED
REFUSALS To TALK
(By Karl E. Meyer)
LONDON, June 3.-British Foreign Secretary
Michael Stewart said today that the barrier
to peace in Vietnam is the "refusal of the
Governments of North Vietnam, China and
the Soviet Union to negotiate at all."
In a special statement to the House of
Commons, Stewart set forth more explicitly
than before those steps his government would
like to see taken to a conference table.
"There is no reason, in common sense or
humanity," Stewart said, "why the following
sequence of events should not occur:
"First, a conference under whatever aus-
pices can be agreed-a cease-fire could either
precede such a conference or be achieved
at the conference.
"Next, a settlement which assures South
Vietnam against any form of aggression.
Once so assured, South Vietnam would be a
country in which there were no foreign
troops or bases and which was tied to no
military alliance.
"The future relationship between North
and South Vietnam should be a matter for
free decision of the peoples of both coun-
tries."
As Stewart spoke, the Foreign Office re-
leased a white paper describing recent British
efforts to call a Geneva conference at which
Vietnam could be discussed.
As related in the 24-page white paper, the
recent effort grew out of a Communist-
supported proposal last March 9 for a new
Geneva conference to provide guarantees for
Cambodia's neutrality and territorial integ-
rity.
The British were co-chairmen with the
Russians in the 1954 Geneva conference that
ended the French war in Indochina. On
April 26, the British asked the Soviet Gov-
ernment to join in calling a new conference
that would discuss Cambodia but could also
take up the Vietnam war.
Stewart told commons that he had on sev-
eral occasions proposed to Soviet Foreign Sec-
retary Gromyko that a new conference be
called, "but he has so far refused."
"I now say," he went on, "that I am ready
at any time to join with him in this pur-
pose."
Observers here saw three levels of meaning
in Stewart's statement to an overflowing
House. First and most obvious was the Brit-
ish desire to put the blame on the Com-
munist powers for refusal to negotiate over
Vietnam.
Yet Stewart was also speaking directly to
members of his own party who are critical of
Britian's unwavering support for the United
States in Vietnam. At least 50 leftwing
backbench members of the Labor Party are
wholly opposed to this policy, and many more
express private misgivings.
At the third level, the Stewart statement
came amid growing restiveness over that
many Britons feel is inadequate consultation.
with the American Government on Vietnam.
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CONGRESSIONAL RECORD - APPENDIX June 4, 1965
Stewart said in reply to questions that his
statement was not an agreed one with the
United States, though every item in it was
in accord with stated American policy.
The Ave Maria After 100 Years
EXTENSION OF REMARKS
OF
HON. JOHN BRADEMAS
OF INDIANA
IN THE HOUSE OF REPRESENTATIVES
Thursday, May 20, 1965
Mr. BRADEMAS. Mr. Speaker, this
week marks the 100th year of weekly
publication of an outstanding journal,
the Ave Maria, which is published by
the congregation of Holy Cross at Notre
Dame, Ind.
The Ave Maria, although written by
Roman Catholic clergy and laymen and
designed as a challenging journal for
members of the Catholic faith, provides
for persons of every faith perceptive and
thoughtful analyses of important issues
in American life.
The journal was established in the
spring of 1865 by the founder of the
University of Notre Dame, Father Ed-
ward Sorin, C.S.C.
The present editor of the Ave Maria
Is a distinguished and dedicated priest,
the Reverend John Reedy, C.S.C.
I am pleased to call to the attention
of my colleagues this important date in
the life of this outstanding publication,
and I ask unanimous consent to include
at this point in the RECORD the text of
an article by another' distinguished
priest and educator at the University of
Notre Dame, the Reverend Thomas T.
McAvoy, C.S.C., entitled, "The Ave
Maria After 100 Years."
The text of the article follows:
THE AVE MARIA AFTER 100 YEARS
(By Rev. Thomas T. McAvoy, C.S.C.)
The mood of so many Catholic writers of
the past 2 years has been a kind of fear to
look back as if opening the window of the
church to let in fresh air means closing the
door on the past. The affection expressed by
the Western World for Pope John. XXIII,
and the admiration for the openness of the
Second Vatican Council are In such marked
contrast to the attitude of the Western
World toward Pius IX and the Roman Church
of 1865 that one almost hesitates to look
back. But such an attitude toward our his-
tory Is not only crass pragmatism, it is
stupid. Perhaps the great-grandparents of
the youngsters who now crowd American col-
leges and haunt our radio and television pro-
grams were illiterate, plodding peasants in
Ireland, Germany, France, or Italy, but had
they present-day opportunities their strong
faith and physical stamina would outstrip
20th-century youth. But that is not the only
reason why we contemplate the past. Gen-
erally, one cannot understand the better
things of today unless he compares them
with what went before.
When Father Edward Sorin, C.S.C., the
founder of the University of Notre Dame,
established the Ave Maria in the spring of
1885, he was creating something new for the
United States-a devotional periodical. He
was planning how he could bring to the
pioneer country of the Middle West the bene-
fits of Christian civilization, and an
important agency for that was a Christian
family magazine. In 1865 Father Sorin was
51 years old, a swarthy. well-built man with
dark shining eyes, whose quick speech was
still touched with a French accent. He was
creating a college on the plains of northern
Indiana with little more than willpower and
daring. The college had survived the Civil
War, despite the fact that eight priests had
been spared by the small community to serve
as chaplains In the Army. Two of them had
died in the service and there were other trials
during the war years. But the war was
nearly over and new hopes were rising.
Father Sorin planned to share in the prosper-
ity of the Northern States and to increase
the number of students, already numbering
845 in a variety of departments and schools.
Besides the traditional bachelor of arts,
Notre Dame offered for the first time a
bachelor's degree in science.
The starting of the Ave Maria was part of
this new world. In the very first month of
the Ave Maria, lumber and stone were being
stacked around the college building because
at the end of the summer the 4-story ham-
mer-shaped building would become 6 stories,
topped with a dome and eventually crowned
by a statue of Father Sorin's patroness, Our
Lady of the Immaculate Conception. The
Ave Maria was to share in the dedication of
the enlarged building in 1866. At the dedi-
cation prizes were offered for the best essays
and poems on Our Lady, which were to be
printed in the magazine.
The spirit of Father Sorin In his prosperity
and his ambition, while Catholic, were truly
American, in contrast to much of the leader-
ship of the church in Europe which was
cringing and shaking from the tremendous
blows of European rationalism as it force-
fully drove the church out of her churches
and out of her schools. The conditions of
the church in Western Europe explains why
Pope Pius IX, the previous December 8, is-
sued his encyclical "Quanta Cura" and the
"Syllabus of Errors." The vehemence of that
document must be understood as the words
of a Pope fighting for his life and for the life
of his church in one of the darkest hours of
the church in Europe. The papal syllabus
rejected article 77: "In the present day, it
is no longer expedient that the Catholic re-
ligion shall be held as the only religion of
the state, to the exclusion of all other modes
of worship," and article 80, "The Roman Pon-
tiff can, and ought, to reconcile himself to,
and agree with progress, liberalism, and civ-
ilization as lately introduced."
Archbishop Martin John Spalding of Balti-
more, the leader of American Catholicism. in:
eluded the Pope's encyclical in his own pas-
toral letter of February 8, 1865, and explained
to American Catholics that the strictures of
the papal message were not aimed at Ameri-
can liberty, secured under our "noble Con-
stitution in regard to the liberty of consci-
ence, of worship, and of the press." Arch-
bishop Spalding drew the contrast between
the shrinking church of Western Europe and
the expanding church in the United States.
Quoting the first amendment of the Consti-
tution, he said the Founding Fathers who
had composed that law did not intend "to
pronounce all religions, whether true or false,
equal before God, but only to declare them
equal before the law" and added that under
the circumstances they could have adopted
no other course.
Father Sorin, like his friend Archbishop
Spalding, appreciated the difference between
the persecution of the church in Europe and
the liberty of the church in the United States
and intended to take full advantage of the
glowing future of the new country.
Notre Dame, in 1965, was In the middle of
the country, but not in the center of Amer-
scan catholicism. Most of the prosperous
Catholic America lay south of the Mason-
Dixon line before the Civil War, and because
the chief Catholic centers were in the border
States of Maryland, Kentucky, and Missouri,
the church suffered with the South, not only
from the devastations of war, but also from
the upset economy of the Southern States
resulting from the destruction of the country
by war. Nor were there many Catholics with
the financial means to profit by the indus-
trial expansion of the North in the decades
after the war. Numerically, the Catholics
were a northern church with her concentra-
tions in the cities and mill towns of Massa-
chusetts, Pennsylvania, and New York, but
these, mostly Irish immigrants, had not yet
recovered from their flight from poverty and
disease during the famine panics less than a
generation before. These were to rise, too,
but slowly and chiefly by political organiza-
tion and power.
Considering these facts one can under-
stand why several of the bishops whom
Father Sorin consulted about starting the
Ave Maria told him that his prospects of suc-
cess were nil. He admitted to Father Neal
Gillespie, C.S.C., his successor as editor, that
he began in fear: "I may be deceived, dis-
appointed, laughed to scorn * * * " He In-
tended the Ave Maria as something new.
There had been Catholic literary reviews be-
fore, although they had not lived long, and
in April 1865, the Catholic World, "a monthly
eclectic magazine of general literature and
science" had been founded, but it consisted
almost entirely of reprints and translations
from Europe.
Father Sorin called the Ave Maria a "fam-
ily newspaper in which we intend to speak
exclusively of our own family affairs." There
were in it some translations from European
periodicals, but the heart of the magazine
was original, prepared in part by Father Sorin
but more often by Mother Angela, C.S.C., the
foundressof the modern St. Mary's, and her
brother, Father Neal Gillespie. Soon there
was a page for children and a column of news
of happenings In the Catholic Church. There
were short stories and full-length fiction
from the few Catholic writers of the day.
Father Sorin sought contributions from the
chief Catholic thinker of the day, Orestes A.
Brownson. This convert from free-thought.
Protestantism, and Comtism did not have an
easy life in Catholicism. His efforts to re-
concile Catholicism with the American way
of life had brought him the disfavor of both
the Irish Catholic immigrant and the native
American Protestant. In 1864 he had stopped
printing his Review because he no longer had
enough supporters to pay the cost of printing.
The fact that Father Sorin had sought his ad-
vice on starting a magazine as early as 1854
and had visited "the Great Reviewer" in his
home in the interim indicate the ambitious
plans of Father Sorin. Later, when Father
Sorin questioned some phrases in one of
Brownson's essays to the Ave Maria, Brown-
son said he would no longer contribute, but
Mother Angela was able to bring peace be-
tween these two strong spirits.
ARCHBISHOP PURCELL
Mother Angela had to play the peacemaker
between Father Sorin and another strong
mind, the Archbishop John Baptist Purcell
of Cincinnati. Archbishop Purcell and Father
Sorin were on the same side of most argu-
ments, but the archbishop did not foresee
the value of the Ave Maria, possibly because
he thought it would compete with his own
Catholic Telegraph, edited by Father Edward
Purcell in Cincinnati; but when teased about
his silence by Mother Angela he gave in after
a few Issues and wrote a letter of approval.
Perhaps the archbishop also saw that Father
Sorin's proposed "newspaper" was going to
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June 4, 1965
CONGRESSIONAL RECORD - APPENDIX A2893
eter' ~rotty's fame and reputation . A practicing' attorney since 1960, Mr. "At the next election," he prophesied,
are iiatioilwide, Here m Wa$hiington he Crangle is associated with Attorneys Lester "every elective office can be won by a Dem-
is acknowIgdged in the highest circles as H. Block, Anthony J. Colucci, and Daniel ocrat."
one of the most astute politicians in the J Callanan & Callanan, in Crangle they firm of Block, Colucci, A, confident young man, Joseph F. Crangle.
.
United States, Commissioned a second lieutenant after
With his wonderful Irish wit and finishing an ROTC course at Canisius, Mr.
charm, ,,Peter Crotty will long be re*mem- Crangle served 6 months in the Army on
tiered as one of the most engaging poll active duty at Fort Kenning, Ga.
ticians of this generation of Americans. INTRODUCED,TRU},IAN
Bob Williams, staff writer for the Buf- He hglds the, flank of ,captain in ,the U.S.
falo Evening News, recently wrote an ar- Army Reserve and is assigned to the 390th
ticle,pn Joseph. F. Crangle. The article Regiment:
appears as follows: While in school, Mr. Crangle was elected
POLITFCS, HARD WORK IN CRANGL$ S BLOOD several extracurricular offices:
SINCE SnFZOOLDAYN.,, Diocesan president of the Catholic Youth
Organization; president of the National
(By Bob Williams) Council of Qn.thplic Youth; charter, member,
"The gone constant thing in life," said of Alpha .Sigma Nu (Jesuit national,, honor
Joseph F. Crangle, "is change." society) ; DiGamma Honor Society of Cani-
With those words, the new chairman of sius College.
Erie Cpurity Democrats explained his party's He was president of the Canisius Alumni
philosophy and his own rise to power as its Association in 1955-57.
leader. Ile once introduced former President Tru-
Mr.. Crangle, a 33-year-old practicing at- man at a CYO meeting in St. Louis.
took aver the duties of Democratic chairman said Joe Crangle. He was then finishing his
Tuesday shortly after the resignation of own term.
Peter J. Crfotty, the Controversial and power- ALWAYS WILLING TO WORK
ful' leader of Democrats here ;or the last 11 The new Democratic boss learned long ago
years. that contacts are helpful to a successful
Despite his youthful age and even more project. His sister, Maureen, went to St.
youthful appearance-he looks more like 26 James School with a pretty girl he remem-
than 33-Mr. Crangle tackles his new job
with experience and finesse, both learned at Politilater cally, tiered o, Joe e married the girl.
the m,astgr's -knee. ly, Crangle is grass grass roots.
His first. contacts with. Democratic head-.
PRESibENTor EIGHTH GRADE CLASS ,. quarters here several years ago put him to
He has been Mr. Crotty's executive assist- work at such volunteer tasks as mailing lit-
ant for the last. 5 years and worked, closely erature, checking voter lists, ringing door-
with him even.earljer. bells and,Jf the occasion called for. iy, sweep-
In a statement Tuesday Mr. Crotty said ing the floor.
Mr. CraLlgle is a fine organizer. He's prob- He was around headquarters more than
ably right. most other volunteers, and that's how he
As an eighth-grade, pupil In Holy Spirit came to the attention of Mr. Crotty.
School, young Joe Crangle swung a class elec- Mr. Crangle became a committeeman in
tion for himself as president. Not only that, the 1st district, 16th ward; director and
but he took along his twin sister, Betty Ann charter member of the University District
(now a nun), as vice president. Democratic Club; member of the Democratic
That may have been. the factor .that made Lawyers Club, and Democratic chairman of
him decide at an early age to_get into politics. the 16th ward-a post he probably will re-
At an
rate? he b
id
m
y
eca
e pres
entof the
, sign.
student council in Canisius College-some- HAS FOUR DAUGHTERS
how skipping the political field in 4 years He belongs to the Knights of Columbus,
at' Bishop Timon High School, from which
he Council 184; Reserve Officers Association;
was graduated in 1950. Erie County and New York State Bar Associ-
JUNE IMPORTANT MONTH ations.
His organizational ability became appar- In the Crangle home, where he'll spend
ent when, as head of the Canisius Student less time in the future, are four daughters,
Council, he reorganized the method of choos- Mary Elizabeth, 5; Catherine Ann, 3; Eliza-
lag its officers. beth Ann, 2; Brigid Marie, 1.
. Since QWy, a few students were 1,nterested Mr. Crangle's father was the late Edward
in holding office, he reasoned, why not set J. Crangle. His mother, Mrs. Marguerite A.
up half a dozen groups, each of which could Crangle, lives with two daughters at 331 East
choose an outstanding member as a.candi-
date? Amherst Street.
His plan was put into effect during his The chairman has three brothers, John J.,
tenure. Edward C., and Navy Air Corps Comdr.Eu-
A native of Buffalo, Mr. Crangle is mar- gene V. Crangle; three sisters, Miss Margaret
tied to the former Rita. J. Henry. They live Mary Crangle; Sister Mary Denise, OSF, in
at 22 Linden Avenue in a four-bedroom two- Rome, Italy; Miss Maureen Crangle.
Story white frame house they bought 3 years CONFIDENT OF VICTORY
ago this month. With three meetings scheduled Tuesday
June, as a matter of fact, has been an night, Mr. Crangle took the opportunity dur-
important month in Joe Crangle's _ life. ing a short breather following luncheon with
SERVED IN ARMY a few close friends to expound upon politics
#ie V, as born Jung 12, 1932, and the,Demo= in general and Erie County politics in par-
cratic chairmanship-which may well lead titular.
to even -bigger things in his `career-came "The party," he said, "is not afraid of new
to him just 11 days before his 33d birthday faces, new people and new ideas. My selec-
anniversary. tion as chairman exemplifies this vital char-
And,, of course, he was -graduated from acteristic."
Holy Spirit, Bishop Timon, Canisius college, And, naturally, he had a few words to say
and the. University of Buffalo Law, School, about the coming election. They offer no
t}aditi9ally, in June., solace to Republicans.
LAWMAKERS GIVE CRANGLE SUPPORT
ALBANY, June 2.-Erie County's Democratic
legislators have assured the new county Dem-
ocratic chairman Joseph F. Crangle "of our
fullest cooperation in the coming primaries
and elections."
The seven assemblymen and three senators
expressed their best wishes to retiring Chair-
man Peter J. Crotty, as well as their "grati-
tude for a great job of leadership."
Unit States Is Using More Than Guns
in Vietnam War
i'tl EXTENSION OF REMARKS
OF
HON. JOHN E. MOSS
OF CALIFORNIA
IN THE HOUSE OF REPRESENTATIVES
Thursday, May 27, 1965
Mr. MOSS. Mr. Speaker, in an edi-
torial on May 25, 1965, the Sacramento
(Calif.) Bee calls to the attention of the
public the significant assistance the
United States is providing in South Viet-
nam other than military. The editorial
rightly points out. that the United States
is also fighting communism by attacking
disease, poverty and privation, and by
creating educational and medical oppor-
tunities which never existed in South
Vietnam.
The editorial follows:
UNITED STATES Is USING MORE THAN GUNS IN
VIETNAM WAR
President Lyndon B. Johnson has disclosed
the United States is doing more than mov-
ing up guns to stem communism in South
Vietnam. It is fighting communism, as well,
by attacking disease, poverty and privation,
and by creating educational and medical
opportunities which never existed in the
peasant. provinces.
In his recent talk to the Nation about
American policy in Vietnam, the President
termed this assault as the "most important
battle of them all." And it is. Communism
can be stayed with guns; it can be defeated,
however, only by creating the abundant life
and eliminating reasons for a people to adopt
such an extreme.
The President put it well when he said:
"A nation cannot be built by armed power
or by political agreement. It will rest on the
expectation by individual men and women
that their future will be better than their
past.
The American outlay in South Vietnam
has been abundant. In the 11 years this
Government has spent more than $2 billion
for assistance. The result: Rice production
has doubled; for the first time, modern agri-
cultural methods are being introduced, albeit
slowly, to that land where ancient methods
have prevailed.
The United States has constructed more
than 4,000 classrooms in the last 2 years
alone. It intends to build thousands more
in the next year. As a measure of the ex-
panding interest in education, schools had an
enrollment of but 300,000 in 1955 and today,
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CONGRESSIONAL RECORD -APPENDIX June 4, 1965
in the midst of deadly war, enrollment is 1.5
million.
In a direct assault against epidemics and
plagues, the United States, moreover, has in-
troduced public health programs. It has
helped, for example, tovaccinate more than
7 million persons against cholera which
strikes with all too monotonous regularity,
and has assisted In the creation of 12,000
hamlet medical assistance stations.
These are positive programs. In the end,
they could win more favor for the American
effort than guns and planes and tanks, as im-
portant as these are to the immediate con-
tainment effort.
the period of time that the powers ex-
isted was specified to be 4 years.
Sinee that time the Congress has ex-
tended these powers at 2-year intervals
and, as has been mentioned before, on
one or two occasions there have been
lapse periods of time when these powers
were not in force.
It is also interesting to note when I
mention this is not a partisan political
question, but really a question between
the legislative and the executive branch
of Government, that three Presidents
have requested that this power remain
permanent; first, President Truman in
1949, then President Eisenhower in 1953,
Further Amending the Reorganization and now President Johnson in 1965.
SPEECH
or
HON. JOHN N. ERLENBORN
OP ILLINOIS
IN THE HOUSE OF REPRESENTATIVES
Thursday, June 3, 1965
The House in Committee of the Whole
House on the State of the Union had under
consideration the bill (H.R. 4623) further
amending the Reorganization Act of 1949.
Mr. ERLENBORN. Mr. Chairman, at
the outset let me state that the ques-
tion before us Is not a question of parti-
san, political nature. The real question
before us is the basic question of the
separation of powers; - the constitutional
creation of a government composed of
three equal and coordinate branches of
government.
The history of the reorganization leg-
islation and the Presidential requests for
plans for reorganization, I think, are in-
teresting in the context of this debate.
The reorganization procedure goes back
to approximately 1932. I might state
that the original plan or the original
enactment of reorganization powers in
the executive did have the feature of
granting this power on a permanent
basis, so, that there is some legislative
precedent for the bill now before us for
a permanent granting of this power to
the President. However, it Is also in-
teresting to note that the Congress did
not wait long to remedy what it consid-
ered to be the mistake of granting this
on a permanent basis. Within 7 months,
after the original reorganization plans
were granted they took away the feature
of permanency and made the limitation
2 years.
From time to time subsequent to the
original enactment reorganization pow-
ers were granted, but always on a basis
of having the short termination date,
usually a period of 2 years. During the
war years these powers were extended
on an emergency basis without limlta-
tion, the only limitation being that the
powers would lapse 6 months after the
termination of, hostilities.
The act that we are now amending is
the Reorganization Act of 1949, which is
the result of the activities of the Hoover
Commission. At the time it was enacted,
in addition, former President Hoover
recommended that these powers be
made permanent. However, the Con-
gress has been jealous of its legislative
prerogative and as yet has not seen fit to
grant these powers on a permanent basis.
Let us also understand that the Re-
organization Act does grant legislative
authority to the Executive and there
havebeen some fine constitutional ques-
tions raised as to the power of the Con-
gress to do so. Let me state that in my
opinion, this is, and there is no question
but what it is, a grant of legislative pow-
ers to the Executive. However, there
can be such a grant without it being an
unconstitutional grant, and I believe the
reorganization powers that have been
granted to the President is a constitu-
tional grant of the legislative powers be-
cause the act itself sets the guidelines
under which the President can act.
This question has not per se been
decided by the Supreme Court though
some related cases have been.
In effect, we are, under the reorganiza-
tion procedure, reversing the legislative
process. The President is given the
power to promulgate legislation. The
President in doing so prepares a plan of
reorganization within the limits of the
law, that is the Reorganization Act, and
submits this to the Congress. Under this
procedure, the Congress is given the
ordinary executive power of veto because
this is the only power that we can exer-
cise in the reorganization procedure.
Once the Executive has filed the re-
organization plan, Congress has the
power of veto for a 60-day calendar pe-
riod which It can exercise or not as it
sees fit. We do not have the other or-
dinary legislative powers, the power to
amend and so forth.
Some have asked, since the power to
veto has been made more liberal as the
years have gone by, why is it not now
possible to extend the reorganization
powers on a permanent basis? I think
we should recall that over the years the
veto process has been changed consid-
erably. At one time to override a presi-
dential reorganization plan required a
of Congress, acting alone with a simple
majority of those voting, can override or
veto a reorganization plan.
But I point out to you that these sub-
stantive changes in the law have been
tied to extensions of the power. If this
power was made permanent in the Presi-
dent, it would then be very easy for the
President to veto bills that contained
such substantive changes. So that the
periodic extension of the powers of this
act gives the opportunity then to tie in
one legislative enactment substantive
changes that Congress deems necessary
together with the extension, thereby giv-
ing the President a choice either of veto-
ing the bill and destroying his power, be-
cause the extension had not been signed
into law, or of signing the bill into law
which gives the extension power and also
because Congress changes any substan-
tive portion of the act that Congress may
from time to time deem necessary.
It is not only that question that con-
cerns us, the question of the method of
overriding the plan or vetoing the plan.
There are other substantive changes that
have been necessary from time to time
and the most recent and outstanding was
the amendment that was adopted just
last year by the Congress.
You may recall that President Ken-
nedy submitted a plan for reorganization
which Incorporated the creation, of a
new executive department. This was the
Department of Urban Affairs. At that
time Congress balked and said it was
never the intention of the Congress to
grant to the Executive power either to
abolish or create new departments. The
power of the President under the Reor-
ganization Act lapsed as a result of this
dispute.
Congress in its wisdom last year, in
extending the plan, also amended the
Reorganization Act to specifically pro-
hibit the creation or abolition of depart-
ments.
I believe it has been shown that the
periodic extension gives to Congress
power to make substantive changes in
the act which are necessary.
Another objection to extending the act
for a long period of time is the fact that
within the act itself are specified rules
which apply to the procedure for overrid-
ing or disapproving plans.
It is historically true that we adopt
our rules on a 2-year basis. We do not
adopt permanent rules in the House.
Every 2 years the new Congress has an
opportunity to reexamine the rules and
to change the rules.
In effect, if we should extend this act
without limitation, or extend it beyond
the 2-year period, we would be adopting
rules for a period beyond this Congress
and binding future Congresses. .
I believe it goes without saying that
over the years there has been constant
constitutional majority of both Houses interaction among the three coordinate
acting together in concert. Later it was branches of Government-the judicial,
made within the power of one House act- executive, and legislative. At one time
ing with a constitutional majority to veto one was predominant and at another
a reorganization plan and most recently, time another was predominant. I am
and under the present law, either House sorry to say that at the present period
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June 4, 1965 CONGRESSIONAL EGOI~
law them. President Johnson's action would
legalize union shop contracts in the 19 States
that now forbid them.
The closed shop, requiring union member-
ship before a man is hired, is banned in all
states under Federal law. National labor
legislation permits the union shop which re-
quires a worker to join the union after he has
been hired, usually within 30 days.
President Johnson, in calling for repeal of
section 14(b), said he did so "with the hope of
reducing conflicts in our national labor pol-
tcy that for several years have divided Ameri-
()ITIZEN9 'VERSUS BIG LABOR
We think it will be a sad day for South Da-
kota and America If the mighty U.S. Govern-
ment goes all the way in its aid to big labor
and tells our citizens they must join a union
if they are to hold a job.
Repeal of section 14(b) will not unify
Americans ,on this issue. The provision in
the Taft-Hartley Act was passed to protect
the American worker from union bosses.
What are they afraid of, may we ask? Why
do they have to have compulsory member-
ship, and with it, the dues of every worker
in a plant, or in a business? Where are the
guarantees that a worker's dues will be used
for eR union s d not political purposes?
South Dakota 1vorkers have a vital civil
right today, guaranteed by their constitu-
tion. If President Johnson is successful in
his plea to repeal the law, the workers lose
that right. Union bosses would win one more
round in their quest for domination of the
Nation's political and economic life.
'Nineteen States would see further diminu-
tion of their power in favor of Federal reg-
ulatory agencies.
Another State-where workers will lose this
civil right is President Johnson's home State
of Texas, As a Member of the House when
the Taft-llartley Act was passed April 17,
.1947, Johnson voted for passage. There was
no separate vote then on section 14(b); it
was `one of the key features of the act.
On June 20, 1947, Johnson voted to over-
...ride President Harry S. Truman's veto.
Johnson was in the Senate when that body
voted down an attempt to strip section 14
(b) from thelaw. That was June 30, 1949.
Johnson voted with the majority to retain
section 14(b). Now he wants to repeal It.
t I- & POLITICAL APPEAL
We think President Johnson's call for re--
peal of the right-to-work section is strictly
political,' to 'make good- on it '1964 campaign
promise to big labor. Congress should turn
it down-vote the way Johnson himself
voted when he was a legislator.
We hope South Dakota's four Members of
Congress will consider citizens' rights ahead
of convenience and power for big labor and
big government.
The President Makes a Point
EXTENSION OF REMARKS
HON. PAUL G. ROGERS
,,OF FLORIDA..,
IN THE HOUSE OF REPRESENTATIVES
Monday, May 24, 196
Mr, ROGERS of Florida. 'Mr.Speaker,
l e'y~spapers across the country have ind -
dated their support for President Bohn-
soi,l's policies in Vietnam and the Carib-
be&11'
1'lorida`newspapers have been particu-
larly favorable. The Tampa 'Times has
supported U.S. policy in an editorial tak-
ing particular note that the Communists
can tear down but cannot build.
Too deep a devotion to ideology has handi-
capped Russian industry and agriculture; it
has forced Peiping to deliver.words instead
of rice to its hungry masses; it has sent both
Russia and Red China Into the world market
for wheat and feed grains, seeking from the
capitalist surplus food to make up for the
Communist deficit.
The Times reports.
Under unanimous consent, I include
the editorial in full at this point in the
From the Tampa (Fla.) Times, May 14,
1965]
THE PRESIDENT MAKES A POINT
President Johnson revealed a little told
side of the South Vietnam story yesterday in
a radio-television address from the White
House. Most of the news coming from that
battle-torn southeast Asian state has to do
with war and fighting, death and suffering.
Most news accounts present a picture of a
country barely holding its own in a struggle
against the Communist Vietcong. But the
President produced facts and figures which
demonstrate that despite the constant pres-
sure from Red forces, South Vietnam has reg-
istered important gains in areas such as
health, agriculture, and education.
American technical aid is daily opening
new doors to a better way of life for the
Vietnamese people-and it is no wonder that
the Communists fear this example and are
doing all in their power to retard its progress.
If South Vietnam should emerge as a show-
case for democracy, a land of plenty next
to the hungry Communist-controlled areas,
Mao Tse-tung would be hard pressed to keep
his millions from revolting. They, too,
would develop an appetite for the fruits of
freedom..
Our investment in South Vietnam has been
a large one. But it also will have been a
wise one if it turns the tide against com-
munism in this area. Since 1954, said Mr.
Johnson, the United States has poured more
than $2 billion into the little country.
What has it bought?
The President put it this way:
Rice production has been doubled.
A new variety of sweet potato, promising
a sixfold increase in yield, is being planted
this year.
Corn output should rise from 25,000 tons
in 1962 to 100,000 tons by 1966.
Pig production has more than doubled
since 1955.
In other areas of assistance:
A medical school is being built with Amer-
ican aid in a country which has only 200
civilian doctors to serve a population of 16
million.
Seven million people have been vaccinated
against cholera and U.S. assistance has con-
structed and stocked more than 12,000 ham-
let health stations.
Americans have help build more than 4,000
classrooms in the last 2 years and by 1967
more than 15 million textbooks will have
been supplied to Vietnamese children.
The Communists have demonstrated their
fear of these programs by destroying agri-
cultural stations, burning medical centers,
murdering Vietnamese malaria fighters and
capturing or killing U.S. aid officials.
Nowhere in the world can the Communists
match the constrilgtiye efforts of the United
States. In Cuba where Moscow and Peiping
might have established a Communist show-
case, there are critical shortages, a comedy
of mismanagement in industry and agricul-
ture and an educational program which de-
,ludes the young into believeing there are
solutions in slogans.
The Reds can tear down but they cannot
build. Too deep a devotion to ideology has
A2891
handicapped Russian industry and agricul-
ture; it has forced Peiping to deliver words
instead of rice to its hungry masses; it has
sent both Russia and Red China into the
world market for wheat and feed grains,
seeking from the capitalist surplus food to
make up for the Communist deficit.
Here, then, is another reason we cannot
"cut and run" from South Vietnam as some
U.S. "liberals" demand. To desert these peo-
ples and these gains and all the hope em-
bodied in accomplishments to date would
brand us as utter cowards and destroy for-
ever all confidence in our courage of convic-
tion and strength of determination.
Here we must stand; and here we must
fight.
More important, here we must win and win
decisively. .
There are no other choices.
An Address by Associate Justice Arthur
J. Goldberg, of the U.S. Supreme Court,
on the Social Responsibility of the
Churches, May 24, 1965, All Souls'
Church, Unitarian, Washington, D.C.
EXTENSION OF REMARKS
OF
HON. JOHN BRADEMAS
OF INDIANA
IN THE HOUSE OF REPRESENTATIVES
Friday, May 28, 1965
Mr. BRADEMAS. Mr. Speaker, under
unanimous consent, I insert in the REC-
ORD the text of an eloquent address by
the distinguished Associate Justice of the
U.S. Supreme Court, Arthur J. Goldberg,
concerning the social responsibility of
the churches and synagogs of our
country.
Mr. Justice Goldberg spoke as a pul-
pit guest at the All Souls' Church, Unita-
rian, in Washington, D.C., on May 24,
1965.
The text of his address follows:
REMARKS BY Hose. ARTHUR J. GOLDBERG, Asso-
CIATE JUSTICE, SUPREME COURT OF THE
UNITED STATES, ALL SOULS' CHURCH, 16TH
AND HARVARD STREETS, WASHINGTON, D.C.,
MAY 23, 1965
In 1949, William Faulkner brought honor
to himself and to the United States when he
was awarded the Nobel Prize for literature.
In his acceptance speech, he stated a con-
viction that I share, and that motivates men
of good will the world over.
"I decline," he said, "to accept the end of
man. It is easy enough to say that man is
immortal simply because he will endure. ** *
I refuse to accept this. I believe that man
will not merely endure; he will prevail."
The triumph of man is uniquely in the
keeping of religion-the informing of his
spirit, the firing of his conscience, the awak-
ening of his soul to the fact that in observing
the spirit of God he is exercising the only
true freedom. -
But these need not be slogans on banners
nor messages on wreaths laid at the feet of
monuments to past and meaningless events.
They need not be so incarcerated into history
as to be beyond the reach of living men.
In one of the great passages of Homer,
Ajax, surrounded by darkness and facing his
foes, prays for light "that we may see our
fate, and die at least, if such they will, in
the open light 'of day." He does not pray
for victory; he does not pray to live; he prays
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CONGRESSIONAL RECORD - APPENDIX June 4, 1965
for light, that he may stand to the full
height of a man and we face his fate.
WE SEEK LIGHT
Today, we also seek light. We also seek
it-not to avoid our problems but to face
them as true men. We do not seek religion
to remove our trials, to transquilize our prob-
lems-but for light, for illumination, for the
true meaning of moral and ethical impera-
tives.
Over 63 percent of our population are mem-
bers of churches. Over 114 million persons
of all faiths, testifying to a greater Power,
and practicing religion in their own way.
Perhaps a great number of them; do not re-
alize the stakes in the world, unless the read
of the recent suppressions and prosecutions
of Jews in the Soviet Union,, unless they
hear of the closing of Catholic churches be-
hind the Iron Curtain, unless they read of
the arrest and convictions of Protestant mis-
sionaries.
Religious tolerance has become a touch-
stone of freedom. Where tolerence is found,
there also free men dwell. Religious intol-
erance has become a touchstone of totali-
tarianism, as Hitler and Stalin demonstrated.
The history of all churches, through all
ages, has demonstrated that religion must
recognize its obligations as well as its rights
to preach and practice moral values, or fail
in its mission. This is the light that illumi-
nates a real democratic political system. In-
volvement for the churches and synagogues
is necessary for society-and for the church-
es and synagogues themselves if they are to
maintain their vitality as living forces in a
society whose fate will be decided by the
pressing social problems of a modern age.
Socially minded churches and synagogs
are guarantees that religion will be an ally,
not an enemy, of democracy.
RELIGION IS FREE TO SPEAK
In our' blessed land, religion is free to
speak. Our Constitution expressly guaran-
tees that there shall be no law prohibiting or
impairing the right of free exercise of re-
ligion. Under our Constitution there is a
wholesoipe neutrality by the Government to-
ward all religions; the, ideal of our, Con-
stitution as to religious freedom is one of
absolute equality before the law of all re-
ligious opinions and sects; the Government,
while protecting all, prefers none, and it dis-
parages none; our constitutional policy does
not deny the value or necessity for religious
training, teaching, or observance; rather it
secures their full exercise Without helping
or hindering any particular religion. Indeed,
thte 'constitutional protections of religious
tolerance were designed for a pluralistic so-
cienty that had seen enough, and knew
enough, of the devisive influence of censor-
ship of belief in the Old World. While we
share the common heritage of our beliefs,
we do not give up the right to practice in
the light of our own doctrines.
If we are, each of us, members of an an-
cient unity of belief, then I believe there is
one aspect of that unity and heritage which
we are bound to implement-together as
men and women who share the heritage, and
separately as those subscribing to different
doctrine.
TO. SEEK JUSTICE
Certainly, at the root of the moral and
ethical doctrine of both the Old and the New
Testaments isthe instruction to seek justice
and righteousness, to act as a person of God.
All of the great prophets were deeply in-
volved in the society of their time. Christ's
Sermon on the Mount brought comfort to the
poor and sorrowful. Can we, in good con-
science, do otherwise? If religion is a sermon
for the individual, a refuge, and a shelter,
its great traditions have also been stated in
the words of its leaders as instruments with
which to change the world, to seek justice
and righteousness.
Today more than 30 million Americans
are living substandard lives; 10 million chil-
dren are being raised in poverty. There is
not enough work, in a generally rich and
productive econoiAy, for the unskilled. The
numbers of the long-termed unemployed are
shockingly large; the tragedy is that among
them are millions of young people who enter
their adult lives without any experience of
the promise of American life.
Many of our citizens are denied solely be-
cause of race or color equal protection of the
laws; many others are denied the equal jus-
tice under law guaranteed by our Constitu-
tion to the rich and poor alike. I would
make note, also, that in a nation of religious
tradition and commitment, our public face
is often profane and secular, with serious
moral problems apparent in the conduct of
our enterprises. We see it in businesses and
in labor unions and sometimes we see it in
Government also.
Now many of these problems are the proper
concern of the political leadership we have
entrusted with the conduct of government.
Others are the proper concern of the judicial
system. In neither of these areas is it ap-
propriate for me to comment. But all of
these problems are the proper concern of
religion. They are a part of the ancient
evils that have burdened man; it is religion's
part to confront them.
THE FAILURE OF RELIGION
The failure of religion to do so is com-
pounded by the fact that here it is free to
do so. There is a neutralism between church
and state in our country, but there can be
no neutralism between our churchesand the
problems around them. The concept of `re-
ligious liberty and toleration is a vote of
confidence in the ability of religions to lead
active, useful, even determinative roles in
the making of a better world.
The new heritage of religion, here in the
New World, is a return to the old heritage
of involvement in the temporal condition as
well as the eternal destiny of man. Minis-
ters and rabbis and priests and the laity who
stand aloof from the problems that grip
individuals today are asking those individ-
Uals to stand aloof from religion.
I do not mean to suggest that our faiths
have forsaken their proper roles as a matter
of course. More and more, the voices of the
religions are being heard-in protest and
dissent as well as in commendation and
counsel. Pope John XXIII's two encyclicals
on world social and economicconditions and
world peace are monuments of the commit-
ment of his faith to an active role in the
troubled world. The National Council of
Churches has taken strong and positive posi-
tions on poverty and unemployment and dis-
crimination. The leaders of my own faith
have been vigorous advocates of equality and
respect for human right. Clergymen of all
faiths are participating actively in the effort
to achieve civil rights for all citizens.
THE COMMITMENT OF LEADERSHIP
The problem seems to be that the commit-
ment of leadership on th 3 highest levels does
not always penetrate to the membership of
churches and synagogues-to laymen or, to
put it' another way, to you and to me. Yet if
commitment does not penetrate, it fails to
reach our lives.
Bringing religion to bear upon moral and
ethical problems means helping this Nation
go forward here at home-realizing the just
society, defending the rights of all citizens
to full citizenship, commending and sup-
porting good legislation, speaking out on im-
portant matters, leading in the fields of
equality of opportunity for all and an eco-
nomic chance for every man.
And it means helping this Nation to realize
its objective abroad-peace in freedom for all
Who seek it.
I believe that the fate of free religion in
the world is part and parcel of the fate of
our own Nation. The survival and success
of our political ideals is crucial to the sur-
vival and success of the free religions that
flourish within our borders.
RELIGION AND DEMOCRACY
Not only Judaism and democracy, not only
Christianity and democracy, but religion it-
self and democracy have a mutual interest in
this troubled world. When communism
Domes--whether to a Buddhist or a Moslem
or a Hindu or a Christian or any other na-
tion-religion goes.
President Kennedy described the path to
freedom as a lonely one. We have no illu-
sions about the difficulty of the road or the
perils that lie along it.
But we will make that journey in good
spirit. While preserving the separation of
church and state in our country, we proudly
assert the right of all religious groups, all
churches, and synagogues, to preach what is
good, and what is more important-if a lay-
man may say so-to practice what is good.
Erie County Democrats Gain Strength
Under Peter Crotty's Leadership-Con-
tinued Gains Seen Under Joe Crangle
EXTENSION OF REMARKS
OF
HON. RICHARD D. McCARTHY
OF NEW YORK
IN THE HOUSE OF REPRESENTATIVES
Friday, May 28, 1965
Mr. McCARTHY. Mr. Speaker, with
the election of Joseph F. Crangle as Erie
County, N.Y., Democratic chairman, I
predict a new era of youthful zeal and
dedication for the Democratic Party in
western New York.
Joe Crangle is my personal friend and
neighbor. We went to Canisius College
together. He lives three doors from me
in Buffalo and I have a great deal of
respect and admiration for him. My
wife and I are very fond of his beautiful
wife and four little girls.
Joe Crangle, as a member of the new
breed of political leaders of the John F.
Kennedy school, will continue the tradi-,
tion of seeking out and supporting only
the finest type of dedicated candidates
for public office.
I am happy to add my name to those
who will support Joe Crangle in all meas-
ures that will add strength, vigor, and
higher purpose to government. He
comes to this job with impressive creden-
tials and a willingness to face the issues
squarely and intelligently.
I would also like to pay my respects to
the man who built up the Democratic
Party in Erie County to its majority to-
day-Peter Crotty. A colorful, intellec-
tually stimulating political leader, Peter
Crotty led the party through an exciting
and turbulent era.
In this very difficult and demanding
position as county chairman, he wrote an
absorbing chapter in the political history
of western New York.
When he took over the reins of the
party in 1954, Republicans outregistered
the Democrats by more than 50,000. To-
day Democrats enjoy a 4,700 registered
voter margin in Erie County.
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 June 4, 19 65
CONGRESSIONAL RECORD - SENATE
tax while including State-operated
sweepstakes along with illegal wagering?
I. would like to obtain a sound answer to
this question. The people of New Hamp-
shire would like to obtain an answer.
There does not seem to be any sense of
fairness in the application of this law.
Before- the New Hampshire sweep-
stakes was established, perhaps there
was a good justification for the pre-
ferred treatment accorded legalized
gambling. The wagering tax law was en-
acted in an attempt to regulate and con-
trol illegal gambling, and thus no pur-
pose was served by covering wagering
operations already licensed and super-
iised by State authorities. The intent
of the law was clear. But its language
was not sufficiently broad enough to cover
the future New Hampshire sweepstakes.
Thus the State of New Hampshire
finds itself classed with illegal gamblers,
with criminals, under the operation of
the Federal law. The Congress cannot
permit this situation to exist any longer.
Mr. President, at this time I would
like to formally introduce my amend-
ment to H.R. 837,1, on behalf of myself
and 'my senior colleague from New
Hampshire, Senator COTTON. I send this
amendment to the desk and ask that
it be printed and referred to the appro-
priate committee.
Mr. President, I ask unanimous con-
sent that this and pndment be printed at
this. point in the RECORD.
The VICE PRESIDENT. The amend-
ment will. be received, printed, and re-
ferred to the Committee on Finance;
and, without objection, the amendment
will be printed in the RECORD.
The amendment (No. 234) was re-
ferred to the Committee on Finance, as
follows :
On page 23, after fter line 14, insert the fol-
lowing new section:
"SEC. 211. STATE-CONDUCTED SWEEPSTAKES.
",(a) Section 4402 (relating to exemptions
from the tax on wagers) is amended by strik-
ing out 'and' at the end of paragraph (1), by
striking out the period at the end of para-
graph (2) and inserting ', or', and by adding
at the end thereof the following new para-
graph:
"'(3) STATE-CONDUCTED SWEEPSTAKES.-On
any wager placed in a sweepstakes, wagering
pool, or lottery-
(A) which is conducted, by an agency of
a State acting under authority of State law,
and
"'(B) the ultimate winners in which are
determined by the results of a horse race,
but only if such wager is placed with the
State agency conducting such sweepstakes,
wagering pool, or lottery, or with its author-
ized employees or agents.'
"(b) The amendment made by subsection
(a) shall apply with respect to wagers placed
after March 10,1964." .
ADDITIONAL COSPONSOR OF BILL
Mr. CLARK. Mr. President, I ask
unanimous consent that the name of the
Senator from. Hawaii _[Mr. FONC] be
added as a cosponsor of S. 1807, the Cor-
rectional Rehabilitation Study Act of
1965, at the next printing of the bill.
The VICE PRESIDENT. Without ob-
jection, it is so ordered.
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NOTICE CONCERNING NOMINATIONS
BEFORE COMMITTEE ON THE
JUDICIARY
Mr. McCLELLAN. Mr. President, the
following nominations have been referred
to and are now pending before the Com-
mittee on the Judiciary:
Robert O. Doyle, of Georgia, to be U.S.
marshal, middle district of Georgia, for a
term of 4 years, vice Gibson Ezell, deceased.
Charles B. Bendlage, Jr., of Iowa, to be U.S.
marshal, southern district of Iowa, for a
term of 4 years (reappointment).
On behalf of the Committee on the
Judiciary, notice is hereby given to all
persons interested. in these nominations
to file with the committee, in writing,
on or before Friday, June 11, 1965, any
representations or objections they may
wish to present concerning the above
nominations, with a further statement
whether it is their intention to, appear
at any hearings which may be scheduled.
ADDRESSES, EDITORIALS, ARTI-
CLES, ETC., PRINTED IN THE
APPENDIX
On request, and by unanimous consent,
addresses, editorials, articles, etc., were
ordered to be printed in the Appendix,
as follows:
By Mr. RANDOLPH:
Extractions from messages relating to the
19th anniversary of the International Cross-
roads Sunday morning breakfast, at the cen-
tral YMCA, Washington, D.C.
By Mr. MUNDT:
Editorial entitled "Congress Should Vote
Like L.B.J. Did-And. Keep Citizens' Right
To Work," published. in the Sioux Falls
(S. Dak.) Argus-Leader of May 20, 1965.
PRESSURE FOR CONTRIBUTIONS BY
-CIVIL SERVICE EMPLOYEES TO
POLITICAL FUNCTIONS
Mr. MILLER. Mr. President, I have
often said that the foundation of our
Federal Government is the civil service
employee.,
Administrations come and go but the
orderly process of Government business
knows no interruption because of the
capable and effective service of the civil
service worker.
That is why I am again dismayed to
see that efforts are being made to pres-
sure Federal employees into contributing
to political functions.
. Whether this pressure be "soft" or
"hard," It is wrong. Whether this pres-
sure is exerted by either party, it is still
a breach of the law and regulations
which were established to protect the
worker.
The Washington . Evening Star has
focused its columns on these violations
in the past. It did so again on May 28
and June 1.
The highly respected Star writer, Wal-
ter Pincus, has drawn public attention to
what is going on this year. I quote from
his article of May 28:
Machinery to solicit political contributions
from Federal employees again has been set in
motion by Democratic Party officials given
the job of selling $100 tickets to the 1965
12139:
Democratic congressional dinner on June 24
at the National Armory.
In his article, Mr. Pincus quotes one
political appointee to this effect:
You have a choice-break the Justice De-
partment's law or Maguire's law.
The Justice Department's law referred
to is a section of the Federal Code mak-
ing it illegal for a Federal employee to
directly to indirectly solicit contributions
of a political nature.
Maguire's law was a reference to the
Democratic Party Treasurer Richard
Maguire, the man, according to Mr. Pin-
cus, "credited with setting up the ma-
chinery for systematic solicitation with-
in Federal agencies."
I would strongly suggest that there
should be no choice. Maguire's law, as
the Star put it in an editorial on June
1, "ought to be repealed, fast."
I am hopeful that the Justice Depart-
ment, the Civil Service Commission, and
the Congress will look into these re-
ports.
I am hopeful, but not very optimistic,
that the agency heads in whose depart-
ment these solicitations are taking place,
will demand that they stop.
I am hopeful, but not very optimistic,
that President Johnson will see to it that
they halt.
Mr. President, I ask unanimous con-
sent that the article entitled, "U.S.
Workers Targets Again," and the edi-
torial, "Maguire's Law," both from the
Evening Star, be printed in the -REC-
ORD.
There being no objection, the article
and editorial were ordered to be printed
in the RECORD, as follows:
]From the Washington (D.C.) Star, May 28,
1965]
MONEY AND POLITICS: U.S. WORKERS TARGETS
AGAIN
(By Walter Pincus)
Machinery to solicit political contributions
from Federal employees again has been set in
motion by Democratic Party officials given
the job of selling $100 tickets to the 1965
Democratic congressional dinner on June 24
at the National Armory.
The aim this year, through mailings and
personal contact, apparently, is get those
employees who contributed last year during
the presidential campaign to contribute
again.
As part of their program, the Democrats
again appear to be planning to push ticket
sales within Federal departments and agen-
cies-a practice that previously has stirred up
criticism from within the civil service.
This year, however, it's the "salesmen"
selected to do the pushing who appear dis-
turbed.
"You have a choice-break the Justice
Department's law or Maguire's law," one
political appointees said Wednesday. He had
just been made part of his agency's team to
push sales of $100 tickets to the dinner to a
list of his colleagues.
The "Justice Department's law" is a section
of the Federal code which makes it illegal for
one Federal employee to "directly or indi-
rectly" solicit, receive "or * * * in any man-
ner (be) concerned in soliciting or receiv-
ing, any assessment, subscription, or con-
tribution for any political purpose what-
ever * * *" from another Federal employee.
The penalties: A fine of not more than $5,000
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1.2140 CONGRESSIONAL RECORD - SENATE June ., 1965
or.a sentence of not more than 3 years in- Jail Federal employee who approaches a colleague In the South Vietnamese Government and
or both. faces trouble. Army, and among the civil population, mo-
,'Maguire's law" refers to Democratic Party race improved proportionally. Relative gov-
Treasurer Richard Maguire, the man cred- (From the Washington (D.C.) Evening Star, ernmental stability was consequently
iced with setting up the machinery for sys- June 1, 1965] achieved. The final defeat that had been
tematic solicitation within Federal agencies. MAGtrRE'sLAW uncomfortably close (for South Vietnam
The "inhouse" salesmen, for the most part, Well, the time for another of the Demo- was literally cut in half in late January) was
are the agency's political appointees whose crate' $100-a-plate fundraising dinners is decisively prevented.
futures depend in large part on the good will once more drawing near. And once more That left the problem of retaining the ini-
of party officials. the party hierarchy in Government offices all dative that had thus been regained. In
In the past, the Federal law has pretty over town is revving up the machinery to South Vietnam, not a great deal could be
much been winked at. This year, however, put the arm on Federal employees for con- done immediately. To be sure, certain im-
the Justice Department is weighing a Fed- tributions-in clear violation of Federal law. portant actions were taken, dike the coura-
eral Bureau of Investigation report to deter- Thus far, as the Star' Walter Pincus noted geous ground offensive, supported by tremen-
mine whether several officials of the Rural the other day, the main complaints are com- dous airpower, that drove the enemy from
Electrification Administration violated-Fed- ing from employees recruited to push the his positions along Route 19, from Pleiku to
era]. law in their promotion, last year, of'id1d congressional dinner ticket sales. Their con- the seacoast. But the South Vietnamese
tickets to the Democratic fundraising gala. cern is understandable. For the Federal code Army lacked the reserves to launch offensives
The Civil Service Commission, after a pre-- is quite specific in making it a crime for any against the enemy main force units in their
liminary inquiry into the matter last fall, de- Federal employee "directly or indirectly" to mountain and jungle redoubts; and the
termined the facts were such to warrant study solicit funds from another Federal employee Americans, who were coming in to recon-
for prose'Cution. "for any political purpose whatever." And stitute the reserves, were not yet ready for
Despite the Justice Department Inquiry, while this is not a new provision, most of the action.
Democratic Party aids have begun to dis- ticket pushers are fully aware that the Jus- That left the bombing of the north, which
tribute lists of last year's contributors to tice Department is examining an FBI report should be conceived as a boxer's left hand,
Federal agencies to aid in selling this year's on complaints which arose in connection reinforcing the work of his right hand.
dinner tickets. with a similar party gala last year. What was needed, of course, was nothing like
Officials at both the State and Commerce The trouble is, as one anonymous political the area bombing of Hanoi which people who
Departments reportedly not only have re- appointee put it, that he and many of his have never set foot In Asia seem to regard
ceived; such lists, but have discussed promo- colleagues are placed in a position of break- as the only alternative to the, nibbling at-
tion of ticket sales with selected top staff lug either "the Justice Department's law or tacks we have been making.
members. Maguire's law"-the latter referring to the But there is all the difference in the world
At 'the State Department, a meeting re- solicitation plans reportedly set up by Rich- between quietly but sternly increased pres-
portediy took place within the past week and and Maguire, the Democratic treasurer, sure, and trying to pressure a man by biting
the list of last year's contributors wad broken There is no question, of course, about what him persistently in the toe. Or another way
down among a group of eight political op- action is called for here. "Maguire's law" to Put it is to say that there is a wide gap
pointee "salesmen." Their job was to keep ought to be repealed, fast, and no congres- between a carefully modulated crescendo and
to the "strictly political" Jobholders, but to sional action is required to do it. Legislation getting permanently stuck on the least in1-
encourage them to again contribute to the may well be desirable to encourage wider portant note in the piano keyboard.
party. financial support of political candidates and Single note-playing is really all that has
Reports that a similar meeting took place their parties, possibly through tax credits or been happening. The pianists in Washing-
at Commerce could not be confirmed. tax deductions. But in, the meantime Fed- ton, measuring distances to Hanoi in quarter
At one point in the State meeting, a sug- eral employees should he protected against inches, reportedly believe they have been
gestion that solicitation letters be sent to the pressures to give which are inevitably playing a crescendo; but they are mistaken.
Th t
t t
i i
l Th
e
d
ar e
r
a
as un
er
e
Ambassadors overseas was veto@d, resent under the sort of solicitation program e g a are v ar
Com lementing the direct solicitation ef- ich is now getting underway. attack are those of least importance to the
p
fort a mailing to lists of contributors over Hanoi government. What is now the main
si
Bailey inviting the recipient to the dinner \BWBING OF TARGETS IN NORTH hit once on North Vietnamese soil, for it runs
saa-... '.
tna^' ant., aa
n
a n.
in
t'~ Vi
or
e
m
eu
ov
e
mite the dinner committee to Identify a Mr. MILLER. Mr. President, this What may be the logic of this one-note
Government employee's agency and so seat morning's Washington Post contains an piano playing is pretty hard to perceive.
him with his coworkers. article entitled "Another Korea?" Writ- Countless missions are run, and planes and
MILDER TITAN 1964 Es'roar ten by Joseph Alsop. Mr. Alsop criticizes pilots are lost, on road reconnaissance-on
This ear's inhouse, solicitation appears to the selection of targets for bombing in "roadwork" as the Navy pilots se roads say.
y But no truck can move on these roads with-
be much milder in its approach than was the North Vietnam. He refers to such tar- out oil fuel; and the limited petroleum stores
effort made last year to sell gala tickets, gets as being relatively insignificant. He are probably the most vulnerable single fea-
At that time, top agency officials scheduled also warns that we have lost the initia- ture of the North Vietnamese economy.
cocktail parties to . precede the event and tive because we have not been hitting Would not taking out the petroleum stores be
agency salesmen went down their assigned some of the important targets. cheaper in the end?
lists, hating fellow workers if they were corn- This practice ought to be brought to There are other such questions. What is
Ing to the party. the attention of Secretary McNamara beyond question, meanwhile, is the unfortu-
From the party, buses took those present and Secretary Rusk, because Mr. Alsop nate political-military effect of the American
to the gala where they all sat together-- abandonment of the briefly regained initia-
usually with the front row of their section knowledgeable individual, one who tive. The apparent proof of iron American
filled with the highest ranking agency offs- has spent considerable time in the Far resolution, of final American commitment,
dais from the Secretary down. East. was responsible for two-thirds of the good
How much actual pressure is involved in I ask unanimous consent that his arti- effects of President Johnson's February de-
ticket sales? Some civil servants considered cle be printed in the RECORD. cision in South Vietnam.
the very fact they receive an invitation at There being, no objection, the article But the South Vietnamese, who know their
home implied pressure. was ordered to,.be printed in the RECORD, own country, are not to be deceived about the
one agency salesman said the belief that as follows: comparative unimportance of the targets be-
President Johnson was the kind of polio- ANOTHER KOREA? ing hit and the relative insignificance of the Dian who watched officeholder contributor areas being covered. In the south, therefore,
lists was a form of pressure. (By Joseph Alsop) what started as proof of American resolu-
HoNe KONG.-Any attempt to sum up the tion has begun to be regarded as still another
XrW r tic NT NOW situation in Vietnam must proof of American irresolution. A recurrence
Adds a Demo emocratic National Committee present dangerous begin with the fact that the initiative has of political troubles has automatically re-
spokesman: "The biggest pressure came" from been completely abandoned to the enemy sulted.
repeated news stories that employees were be- during the entire period since the middle One can assume with confidence that the
ing threatened as to what would happen if of March impression conveyed in the north has been
This year there appears to be a new ele-
ment of resentment among the "salesmen."
They have a fear that should someone report
them-as happened in the REA case-no one,
particularly party officials, could come to
their defense.
Party officials who hand out contributor
lists In no way violate the law. Only the
Vietnamese targets initially produced very enectis. a man wno expects severe and
big dividends. The North Vietnamese Gov- mounting pressure, and then experiences
ernment was visibly consternated and thrown nothing much worse than persistent annoy-
off balance. The Vietcong were not merely ance, is not likely to be thrown off his stride
thrown off balance; according to all indica- for very long, it must be remembered.
tions on the spot, their morale plummeted Hence the situation is doubly dangerous.
downward to the low point reported by the It is dangerous, first, because a mere local
French newspaperman, Georges Chaffard. catastrophe can conceivably have generalized
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-June 4, 1965 o1 '(UktSSIONAL' AECORD TE 12141
effects this summer-'because of the slumping The beginning pay of an enlisted man is THE EXCISE TAX: LUTZ SAYS REFORM, NOT
mood of the south. And ' it is dangerous, $78 a month. This goes to a high for a REPEAL, WOULD BEST SERVE THE NATION
second, because weare all too likely to end soldier with 26 years of service of $573.90. (By Harley L. Lutz)
in another Korean-style war,' under much That is base pay. It does not include about The President's message asking for repeal
less favorable conditions, unless the principle 40 percent additional compensation for hous- of certain parts of the Federal excise tax
of the boxer's right and left begins to be re- ing and subsistence, most of which has in system criticized these taxes in terms that
membered. That is the most important peacetime been exempt from income tax. have been stated many times over the years
paint of all. Combat pay is an across the board adds- before the congressional tax-writing com-
tion for all grades of $55 a month. It was mittees. After the defeat of a broad-based
the ruling that this amount, along with regu- etax bill in 1932, the Congress proceeded
MILITARY SERVICEMEN'S lar pay, was subject to Federal taxation that excise x throw together a miscellaneous assortment
CdMpENSATION caused the greatest resentment among men of levies. In World War II the list was
daily under fire. Captain Kendricks had extended and during the Korean war some
Mr. MILLER. Mr. President, the said he had no intention of paying tax on rates ,were increased. There was neither con-
Washington Post this morning contains "hostile fire" pay.
an article entitled "On Soldiers' Pay, the selection, the rates,
to A 5- enlisted percent pay personnel. boost To will a mean very lieutenant genlittle sisten cy the pri nor or logic of in application. The result
-
Taxable and Other," written by Marquis uis eral with monthly pay of $1,614 it is a sizable was a highly selective array of excise taxes
Childs. Because of the pending pro- increase. That is the inherent injustice of that was grossly discriminatory among both
posed legislation relating to an increase an across-the-board proposal-it gives slight producers and consumers of taxed and ex-
in military pay, I believe that Mr. Childs' help to those in the lower ranks. The same empt articles.
The recommendations call for repeal of
observations warrant the attention of the imbalance was part of the last cut in the specified classes of excise taxes as of July 1,
readers of the RECORD; therefore, I ask Federal income tax rates. For those in the slower brackets it meant a negligible saving 1965, and of others as of January 1, 1966.
rintefious consent that his article be while for the minority on the top level the The notable omissions are those taxes which
printed in the RECORD. amount saved was substantial. are earmarked for the highway fund and the
There being no objection, the article There has been a lot of talk about giving taxes on alcoholic beverages and tobacco
was ordered to be printed in the RECORD, relief to the small taxpayer but so far noth- products. Under the President's plan the
as follows: ing has come of it. A large proportion of the passenger car tax rate would drop to 5 per-
Oar SOLDIERS' PAY, TAXABLE AND OTHER United 2,600,000 en in the Armed Forces of the cent by January 1, 1967, but the House this
UnitStates are in this category and, ex- week voted to eliminate this tax by 1969.
(By Marquis Childs) cept for approximately 50,000 in Vietnam, The telepohne tax rate would be reduced,
Until a recent Executive order the most they are subject to Federal income tax. with termination set for 1969. Estimated
glaring inequity in the operation of the Fed-, Despite pressures to make it so, a specific costs of the highway program are higher and
oral income tax law was one that hit com- Bureau of Internal Revenue ruling held that increased taxes to meet the increased cost
pparatively few taxpayers. if you were a serv- Europe, where most Americans overseas are are asked for, relating to diesel fuel, heavy
iceman In a jungle foxhole in Vietnam the stationed, is not a combat zone.. truck use tax, and tread rubber.
Federal tax was levied not only on your As the war in Vietnam has escalated, so LAPSE OF LOGIC
base pay but on your extra compensation have American casualty lists, although they A curious lapse of logic crept into the
for "'duty subject to hostile fire." are still comparatively small. text. Excise tax repeal was defended on
This last was a bit of bureaucratic gob- The pay structure of the military, as engi- the ground, among others, that this would
bledygook intended to evade the word com- neered by Secretary of Defense Robert S. lessen the burden of regressive taxes on
bat, protests began to come from Congress McNamara, is designed to keep career men low-income families. Yet, in proposing a
about men under fire having their pay sub- with career skills in the service. This is final tax rate of 5 percent on passenger cars,
ject to Federal taxation. Noting that one proving more and more difficult in competi- it is said that this tax would not be regres-
of his constituents, Capt. F. R. Kendrick, a tion with private industry that constantly sive. For the average family, a $2,000 fur
helicopter pilot from El Dorado, Ark., had lures away with much higher salaries men coat is vastly less important than a $2,000
raised a question about this obvious injus- trained in electronics and other techniques. automobile.
Lice, Senator JOHN MCCLELLAN called on the Moreover, the McNamara goal was for a The attitude toward long-range Federal
President to exempt men in Vietnam. peacetime service, and in Vietnam we have tax policy revealed in the message is greatly
The. President has that power under a a wartime army. to be be regretted. Repeal of the existing dis-
precedent established by Congress at the re- to orlininatory excises is a necessary first step
quest of President Truman 6 months after toward reform. The next step should be
the start of the Korean war in 1950. Presi- EXCISE TAXES the introduction of a broad excise tax, ap-
dent Johnson issued an Executive order on
,April 24 designating Mr. MILLER. Mr. President, the Wall plicable to virtually all consumer products at
i Vietnam and the wa-
ters wit thin 100 0 miles of the Vietnamese coast Street Journal of June 4, 1965, contains a ination uniform and rate. This equalize the would tax end the situation discrim-
for
"an area in which Armed Forces of the Unit- an article entitled "The Excise Tax; Re- both producers and consumers. The final
ed States are and have been engaged in com- form, Not Repeal, Would Best Serve the stage of manufacture would be an appropri-
bat." The order was made retroactive to Nation," written by Harley L. Lutz. The ate point of collection. This method is now
January 1, 1964. article is timely not only because of the used in the case of taxes on alcoholic bev-
This not only righted a conspicuous in impending passage of excise tax cuts and erages, tobacco products, and the extensive
justice but it was official recognition-the eliminations, but because of Mr. Lutz' category designated as "manufacturers ex-
only one thus far-of the grim reality of what on the inflationary sftlla- cises." In the estimates for 1966, almost $9
Is happening in Vietnam. With nearly 50,- Commentary billion excise tax revenue was collectible
000 Americans on the ground in the Vietna- tion in this country. at the manufacturing level.
mese conflict the fact can no longer be evaded He points out that certain adminis- The intention, clearly indicated in the
that this is a war albeit an undeclared war. tration spokesmen have belittled infla- message, is repeal, not reform. It is elim-
Npw a move is on to make the Dominican tion as being nonexistent or relatively ination of revenue, not replacement. The
Republic a combat zone. Although whether unimportant; but he produces figures to effect will be to increase the relative de-
Congress has any authority in this field is demonstrate that since 1960 the increase pendence of the Federal budget on the in-
questionable, Senator GEORGE SMATHERS in our gross national product has con- come taxes and to increase budgetary vul-
had introduced a bill specifying April 28 as sisted 40 percent of inflation. I have nerability to variations in the level of busi-
ness activity. In the original budget esti-
the date a which and jcombat began in the Da- been saying that such increase has been mate of revenues for fiscal year 1966, the minic rings an paratrerin serviae c there waters. would uld 30 percent. While I have used a some- net excise tax yield was 12 percent of total
also o b be e exempted. A ss s in n Vietnam, this thiwould what different basis than Dr. Lutz uses, administrative budget receipts. After giv-
apply apply to enlisted personnel. Officers in com- I think he points up the fact that, if any- ing effect to the proposed reductions and the
bat get a $200 a month deduction. thing, I have been conservative in my new estimate of total revenues announced
When set alongside the income scales and own estimate of 30 percent inflation. If in the message, this proportion would drop
spending standards of the affluent society anything, I should be inclined to defer to 9.2 percent.
Military pay appears niggardly. Granted that to the judgment of this distinguished It is also said that the deficit for fiscal
year 1966, originally estimated at $5.3 bil-
you cannot recompense men for patriotism, writer and economist. I ask unanimous lion, will be lower because of higher receipts
duty, dedication to service in the Armed consent that his article be printed in the and reduced expenditures. These gains
Forces, nevertheless compensation should be RECORD. would not be enough to eliminate the deficit,
at least adequate. And' the feeling is grow-
ing in Congress that even the proposed 5-per- There being no objection, the article even if there were no excise tax repeal. But l is is said
cent increase in military pay will still leave was ordered to be printed in the RECORD, since a pealer o propos d, and
g, the obvious f
timi
Most grades shortchanged. as follows:
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 12142
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CONGRESSIONAL RECORD -SENATE June .?,, 196?
intention is to maintain a deficit, not to
strive for its elimination.
REVERSAL OF ATTITUDE
The stock arguments advanced against the
present excise system have failed, up to
now, to Impress either the Ways and Means
Committee or the Senate Finance Commit-
tee. These arguments have always been
countered by the objection that we could
not afford the revenue loss involved. De-
spite this committee record, it now appears
that we can afford a. revenue loss even
greater than the President has proposed.
The bill is to be rushed to enactment with
unseemly haste. Public hearings are not
necessary for both tax committees are fully
informed as to the objections to the present
excise system. The marvel is that there
should be such a sudden, sweeping reversal
of attitude. And the pity is that there will
be no public hearings on how to reform the
excise taxes so as to make them a more
equitable and productive feature of the Fed-
eral tax system.
The apostles of the new fiscal order ap-
pear unworried about the prospect of budget
deficits. Yet there is in the message an
undercurrent of concern about the current
fiscal policy. It is revealed by the empha-
sis on the beneficial effects of the earlier
tax cuts, on the absence of Inflation, and on
the desirability of providing a further stim-
ulus to the economy through the proposed
excise tax changes, The stimulant is to be
the addition of the tax reduction to total
demand.
The persistence of belief in this theory is
amazing in view of the plain logic of the
case. As a matter of simple arithmetic, tax
changes up or down do not affect total spend-
ing power at any given state of the economy.
Such changes merely alter the proportions
of total income spent by the people and the
Government, respectively, without changing
the total. Lower taxes do give a lift to
morale through the added satisfaction of
keeping and using more of the fruits of one's
toil or thrift, instead of,eing compelled to
submit to the decisions of Government as
to how they shall be spent.
The real source of stimulus to the economy
is the additional spending power created by
the deficits. Tax reduction, with no cut or
even an increase of spending, is a popular
way to create a deficit. It is therefore a first
step, but not the important one, in the stim-
ulative process.
It is recognized, even by the ardent advo-
cates of deficits, that a point can be reached
at which the ice Is too thin to bear more
weight. They seek consolation for the deficit
course by referring to the evidence that infla-
tion has not happened yet.
Consequently, it Is appropriate to examine
the data which are relied upon to demon-
strate absence of inflation. The chief statis-
tical tools employed In this demonstration
are the wholesale and consumer price in-
dexes. From the end of 1960 to the end of
1964, a period which embraces most of the
60-month span of uninterrupted business ac-
tivity, the wholesale Index was virtually sta-
tionary. The consumer price index rose from
103.1 to 108.7 on the base of 1957-59 prices.
The stability of these indexes provides sup-
port for the thesis that we have been spared
the evils of inflation, notwithstanding aggre-
gate net deficits of $26,5 billo:)n and a public
debt Increase of $28.4 billion in this time.
In another area, however, the evidence is
not so reassuring. This is the record of gross
national product. The only test of inflation
here is a comparison of GNP in current dol-
lars with the value expressed in dollars of
constant purchasing power. In the annual
Economic Report the dollar purchasing power
in 1954?.is used as the base. The results for
the years 1960 and 1964 are:
Gross national product, in current and 1954
dollars (billions)
Year Current 1954
dollars dollars _
1060--------------------- - 502.6
1964------------ -- -- _ ... 622.3
439.9
515.7
Increase ---------.119.7 75.8
These figures show that whereas the in-
crease of goods and services produced from
1960 through 1984 was valued at $119.7 bll-
lion in current dollars, the same quantitative
increase of output would have been valued at
$75.8 billion if the purchasing power of the
dollar had been the same in 1964 as it was
in 1954. Since we are dealing with the same
quantity of product, the difference between
the two measures of increased value,
amounting to $43.9 billion over the period,
must be the result of depreciation of the
dollar. In other words, some 40 percent of
the increase in gross national product since
1960 does not represent greater actual out-
put of goods and services but an inflationary
markup of real product.
It is proper to ask at this point why there
is so much divergence between the results
revealed by the price indexes cited above
and those derived from the GNP data. A
clue to the explanation is provided by the
behavior of the components of GNP. The
annual Economic Report regularly translated
these components from current dollars into
the equivalent in 1954 dollars. The report
also provides a table showing, for each com-
ponent of GNP, the implicit price deflator
by which its current dollar value is to be de-
flated to equal the 1954 value. For 1964
these price deflators are as follows:
Implicit
Category: price deflator
Total GNP------------------------ 120.7
Personal consumption expendi-
ture------------------------ 114.9
Durable goods ----------------- 106.2
Nondurable goods____ _________ 116.6
Services----------------------- 122.7
Gross private domestic Invest-
ment :
New construction-------------- 125.7
Residential nonfarm ----------- 122.0
Other------------------------- 130.2
Export of goods and services---- 105.6
Imports of goods and services--__ 98.2
Government purchases of goods
and services----------------- 138.5
Federal--------------------- 136.0
State and local---------------- 141.3
These figures suggest that the rise in the
cost of services has been an important factor
in the inflation of GNP in terms of con-
stant 1954 dollars. The implicit deflators are
highest, indicating need for relatively more
deflation, for the components in which serv-
ices are the sole, or a principal, element.
Much of the construction industry is labor
intensive, while export Industries are more
likely to be capital intensive. Almost 70 per-
cent of Government purchases of goods and
services consist of wage and salary disburse-
ments. Moreover, the proportion of total
consumption expenditure devoted to services
has risen somewhat in the post-World War
II years. The wholesale price index includes
commodities only and would not reflect serv-
ices. The Consumer Price Index does Include
services, and from December 1960 to Novem-
ber 1964 the index for all services except
rent rose by 10.5 index points. This is in
marked contrast with the movement of the
overall Consumer Price Index.
of that inflationary force known as wage-' I would not try to draw the line too
cost-push. The new puchasing power created nicely. I would seek to have such per-
by the budget deficits has made it possible sons recalled; likewise, I would recall
Approved For Release 2003/10/15 : CIA-RDP67B00446R000300180034-3
for employers, private and public, to comply
with the successive rounds of demands for
higher pay. This should have led to price
increases, but the Government's hostile at-
titude toward anything more than trivial,
spotty price advances has blocked off this
course. Productivity gains have thus far en-
abled efficient operators to absorb the higher
wage costs without raising prices. Despite
the guidelines for wage increases proposed
by the Council of Economic Advisers there
is some doubt If wage increases have been
held within the suggested limits. The eco-
nomic report shows that output per man-
hour in nonagricultural industries Increased
at an average rate of 3 percent per year from
1960 through 1964, and that average gross
weekly earnings in manufacturing increased
at a rate of 4.7 percent annually over the
same period.
It is not contended here that the round
of tax cut and deficit spending coming up in
the excise tax repealer is the one to carry
the inflation flood over the dike. The com-
bination of creating new money and sitting
on the price lid may hold the opposing forces
in equilibrium for some time yet. Even-.
tually the accumulation of inflationary new
money will have an expansionary force that
cannot be contained by any display of gov-
ernmental displeasure at price increases.
There may be a short-run advantage in
excise tax repeal. The business community
and the man in the street are enthusiastic-
ally for it. This broad grassroots support
seems already to have pressured congres-
sional leaders to go even further than the
President has recommended. It can be said,
however, without fear of successful contra-
diction, that the long-run advantage to the
Treasury, the business interests, and the peo-
ple generally, is to be found in reform, not
elimination of excise or consumption taxes as
a source of Federal revenue.
TRAFFIC VIOLATIONS BY DIPLO-
MATIC PERSONNEL
Mr. CASE. Mr. President, in this
morning's press I note a report, under
the dateline of New Brunswick, N.J., of
a meeting between the director of the
New Jersey Turnpike Authority and a
representative of the Department of
State in regard to a recent practice in-
augurated by the New Jersey Turnpike
Authority to escort from the turnpike
diplomats who are violating the speed
laws.
This incident is another illustration
of a problem which I think we have not
come anywhere near solving. I regard
any American who represents this coun-
try abroad and who violates the laws of
another country as a person who ought
not to be continued in the representa-
tion of this country abroad. Equally,
any foreign diplomat or representative-
and it Is not always one of high station,
but frequently one of lower rank-who
comes here and violates the hospitality
which this country affords, whether it be
parking by a fire hydrant or by blocking
another'sdriveway, and laughing at that
person when he is asked to move, to say
nothing of the violation of speed laws
and other traffic laws which cause hazard
to American and other lives on the high-
ways, ought not to be permitted to con-
tinue to remain in this country.