ENROLLED BILLS SIGNED

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP69B00369R000100120131-7
• Release Decision: RIFPUB
• Original Classification: K
• Document Page Count: 2
• Document Creation Date: December 15, 2016
• Document Release Date: May 18, 2004
• Sequence Number: 131
• Publication Date: December 12, 1967
• Content Type: OPEN

Approved For Release 2004/05/25 : CIA-RDP69B00369R000100120131-7
December 12, 1967 CONGRESSIONAL RECORD - SENATE S 18427
the cost of mailing tapes and "voice H.R. 4974. An act for the relief -of Dr. rates. However, by early spring this
letters" can be a genuine hardship. Manuel A. Turbat; trend was reversed and interest rates
H.R. 5186. An act for, the relief of Dr. began rising despite continued monetary
Armando Cobelo; ease. The reason for this change is sim-
H.R. 5187.
for Alfredo edo E E. An act Planar-for Pins; the relief of Dr. Hec- ply that prolonged large increases in
A message from the House of Repre- H.R. 5853. An act for the relief of Raymond the m neypsus lly ultimarisingtely cause i -
sentatives by Mr. Bartlett, one of its read- E. Grail;
ing clerks, informed the Senate that Mr. H.R. 6088. An act for the relief of Dr. rates. People increase their demands for
Manuel Jose Coto; goods, services, and credit, and as credit
O'HARA a c of Michigan had been appointed H.R. 6096. An act for the relief of Mrs. Inge demands rise market rates of interest
as
as a conferee in the conference on the Hemmersbach Hilton; nt.
bill (H.R. 7819) to strengthen and im- H.R. 6670. An act for the relief of Dr. respond thhrougtugh upwapward been adjustmeustmes
re-
prove programs of assistance for elemen- Virgilio A. Ganganelli Valle;
Ope Re-
tary and secondary education by extend- H.R. 6766. An act for the relief of Dr. Raul servently w Sdicating that its the Federal
ing authority for allocation of funds to Gustavo Fors Docal; moerating expansive
be used for education of Indian children H.R. 7890. An act for the relief of Dr. Jose- market policy, the Wall Street Journal
and children in overseas dependents fina Quintos Marcelo; reported last Friday that the Fed was
H.R. 7896. An act for the relief of Dr. Jose still active in the open market. In the
schools of the Department of Defense, by A. Rico Fernandez;
extending and amending the National H.R. 8256. An act for the relief of Dr. week d ended last million on Wednea dasdayi, the Fed
the Fed adde $506 a -average
Teacher Corps -program, by providing as- Hermes Q. cuervo; into the banking aystm through
sistance for comprehensive educational H.R. 8258. An act for the relief of Jorge basis
open market purchases in U.S. m through
planning, and by improving programs of Gabriel Lazcano, M.D.;
An act to provide that the U.S. ment securities. Although this expansion
8376
H
R
.
.
.
education for the handicapped; to 1111-
prove authority for assistance to schools District Court for the Eastern District of was counteracted in part by an increase
New York shall be held at Brooklyn, N.Y., in required reserves, reflecting increased
the expansive stance of the
in federally impacted areas and areas and Mineola
N.Y.; deposits
,
,
suffering a major disaster; and for other H.R. 8407. An act for the relief of Dr. Fed appears largely unchanged. I think
The message announced that the
House had agreed to the report of the
committee of conference on the disagree-
ing votes of the two Houses on the
amendments of the Senate to the bill
(H.R. 6167) to authorize the extension of
certain naval vessel loans now in exist-,
ence and a new loan, and for other
purposes.
The message also announced that the
House had agreed to the amendments of
the Senate to the bill (H.R. 8338) to
create a new division for the western dis-
trict of Texas, and for other purposes.
The message further announced that
the House had agreed to the report of the
committee of conference on the disagree-
ing votes of the two Houses on the
amendments of the Senate to the bill
(H.R. 13510) to increase the basic pay
for members of the uniformed services.
and for other purposes.
ENROLLED BILLS SIGNED
The message also announced that the
Speaker had affixed his signature to the
following enrolled bills, and they were
signed by the Vice President:
H.R. 1592. An act for the relief of Dr. Rene
Jose Triay;
H.R.1676. An act for the relief of Dr.
George H. Edler;
H.R. 1894. An act for the relief of Our Lady
of Pillar Church in Santa Ana, Calif.;
H.R.2138. An act to amend section 319 of
the Immigration and Nationality Act to per-
mit naturalization for certain employees of
U.S. nonprofit organizations engaged in dis-
seminating information which significantly
promotes V.S. interest and for other
purposes;
H.R.2152. An act to amend the act in-
corporating the Disabled American Veterans
so as to provide for an annual audit of their
accounts;
H.R.3632. An act for the relief of Mrs.
Karen Wood Davila;
H.R.3516. An act for the relief of Andres
Mauricio Candela, M.D.;
H.R.3525. An -act for the relief of Israel
Mizrahy, M.D.;
H.R.3528. An act for the relief of
Raquel Maria Cruz-Flores; that continuation of this very expansive
H.R. 8738. An act for the relief of Guillermo
Ramon Palacio Sela; - policy is harmful. I hope that the Fed
H.R. 9081. An act for the relief of Dr. will move toward a more moderate ex-
Josefina Esther Kouri-Barreto de Pelleya; pansion of the money supply which
H.R. 9574. An act for the relief of Joseph would be sustainable and would bring a
J. Wojcik; lower level of interest rates over the
H.R. 10449. An act for the relief of Camille longer run.
con-
Anita Dobson; Mr. President, I ask unanimous con-
H.R. 11395. An act to amend the National
Caiptal Transportation Act of 1965 author- sent that the article from the Wall
izing the prosecution of a transit develop- Street Journal be printed in the RECORD.
ment program for the National Capital - Orderebeing no d to be objection, tte RECORD,
region and to further the objectives of the was
act of July 14, 1960; as follows:
H.R. 11565. An act to amend section 358 of FEDERAL RESERVE CONTINUED ACTIVE IN OPEN
the Agricultural Adjustment Act of 1938, as MARKET-IN WEEK ENDED WEDNESDAY, RE-
nut crew eo lot ents the transfer of pea- SERVES OF COMMERCIAL BANKS NARROWED
am, nut acreage allotments; SOMEWHAT-NEW YORK BUSINESS LOANS
H.R. 1214 44. An act to clarify and otherwise UP
amend the Meat Inspection Act, to provide
for cooperation with appropriate State agen- NEW YoRK.-The Federal Reserve System
ties with respect to State meat inspection co n take i strong of action
month's ize
programs, and for other purposes; and money conditions
H.R. 12912. An act to give the consent of valuation of the British pound, according to
Congress to the State of Ohio to become a figures released yesterday by the New York
party to the agreement relating to bus taxa- Federal Reserve Bank.
tion proration and reciprocity as set forth The system injected $506 million on a
in title II of the act of April 14, 1965 (79 daily-average basis into banking channels
Stat. 60), and consented to by Congress in through open-market purchases of U.S. Gov-
that act and in the acts of November 1, 1965 ernment securities in the week ended
(79 Stat. 1157), and November 2, 1966 (80 Wednesday, the figures showed. -
Stat. 1156). But the reserve position of the nation's
d somewhat in the
-
Chervony, M.D.;
H.R.3866. An act for the relief of Dr.
Eduardo Enrique Ramos;
H.R.3889. An act for the relief of the
Standard Meat Co.; -
FED CONTINUES TO INFLATE THE
MONEY SUPPLY AND PRICES
Mr. PROXMIRE. Mr. President, last
week I warned the Senate that the Fed-
eral Reserve's easy money policy was
contributing to inflationary pressures.
For most of this year the Fed has been
buying Federal securities through its
open market operations in such large
amounts that it has expanded the mon-
ey supply at an estimated 8-percent
annual rate. This contrasts with a 3.2-
percent trend rate of growth from 1961
to 1965, and a slight decline in the mon-
ey supply from April 1966 to January
1967.
While rapid expansion in the money
supply is usually associated with de-
clining interest rates, the experience of
the past 2 years shows that the long
term effects may be quite different from
the short run effects. In the first few
months of this year, the rapid growth
of money did act to hold down interest
commercial banks narrow
statement week. Recent changes in bank re-
serves and other factors seemed to suggest
that the Federal Reserve may have begun to
move to a slightly less generous monetary
'policy from a policy of actively supplying
funds to the banks earlier this year.
At the same time, the New York Federal
Reserve Bank reported that commercial and
industrial loans at major New York City
banks jumped $138 million in the week, the
largest weekly gain since the middle of Sep-
tember.
In the previous week, New York business
loans registered a $3 million decline, while in
the like 1966 week they were up $12 million.
As of Wednesday, business loans at the 12
leading New York commercial banks totaled
$21,343,000,000, down $330,000,000 from the
middle of the year. A year earlier they totaled
$20,162,000,000, up $98,000,000 from mid-
1966.
Nationally, "free" reserves of the nation's
commercial banks slipped to an average of
$228 million in the statement week, the Fed-
eral Reserve bank estimated, from $255 mil-
lion in the previous week. The prior week's
figure was revised from an initial estimate of
$204 million.
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 Approved for Release 2004/05/25 CIA-RDP69B00369R000100120131-7
S 18428 CONGRESSIONAL RECORD - SENATE December 12, 1967
The latest week's free reserve level repre- CAPTURED PAPERS ON VIET RED GOALS the purpose of preparing the Viet Cong po-
sents the extent to which reserves held by CONVINCING litical and military organization for a nego-
many banks in excess of their requirements (By Richard Wilson) tiated settlement in which the NLF will not
exceeded total borrowings by otlier banks actually be the dominant force in a coali-
that had to borrow to reach required reserve munists The winter-spring offensive of the Com- tion government. in Vietnam has reached the halfway . The constant repetition of
Principally mark without notable success. The second the objective may be for the purpose of con-
of eeise contributing the narrowing free reserve was a $267 7 million daily- half of the offensive is'now beginning and its ditioning the Communist organization to
average increase in required reserves, reflect- success or failure will become evident in think that any negotiation means per se that
February or March,
part he NLF is dominant and thus that the
Ing increased edeposits, xpansionary This counteracted 58 million in
pathe expansionary effect of a $ $5006 million This is the story told in the avalanche of North has won its objectives.
daily -average increase to the Federal Re- captured documents which are studied and This kind of black-is-white doctrine is not
serve's holdings of U.S. Government secu- analyzed in Saigon, at the Pentagon and at unfamiliar in the Communist world, but it
rities. When the Federal Reserve buys securi- the White House. These documents, ranging strains credulity to think that the political
ties it pumps money into the banking sye- from Individual diaries to the entire battle cadres could thus be deceived. The-world, of
tem because securities dealers are paid by plan for the winter-spring offensive of the course, would not be deceived.
check, which hey deposit into their com- 2nd North Vietnamese Division, are being What seems more likely is that the vast
mercial bank accounts translated at the rate of about 5,000 docu- evidence of the captured documents means
. precisely what it sa s ne
Free ee reserves are frequently used by bank- ments a month and have provided Informa- Y > negotiations under
tion on enemy plans and objectives on a conditions which could not conceivably be
ers as a barometer of monetary policy. There accepted either b the overnment.
have been signs that that that policy has grown scale without precedent. Y g of the
States or of South Vietnam.
If the documents are to be taken literally,
less
easy than the vigorous expansion Nor would this objective seem likely effect since late last year. The Federal ral Re- in and they are largely taken literally because to be
serve on Nov. 19 boosted to 4/ 1 % from 4% o they are confirmed by other intelligence, abandoned before the conclusion of the
the North Vietnamese are now moving offensive, the last half of which
its discount rate, the fee charges on loans g is now getting under way to member mber commercial banks. But at that substantial forces for the continuation n of of and upon which
time, it stressed that it intended to make what the documents call the winter-spring the North relies so heavily.
offensive. In the first half of this offensive the Com-
ample funds to help cushion on 'U.S. U.S. markets from banking any system New pressure on Con Thien, Dak To, and munists failed to take over Quang Tri City.
de- They failed at Con Thien. They failed at Dak
can be expected, with To. We shall now see if they fail in the second
valuation shocks. mounting highlands casualties. A sweep deeper
money Bankers supplyally" observed yed has that
been the nation's ar area a below the he demilitarized zone can also half, as they-are likelyto do, and what the
lately will be.
at a far less rapid pace than earlier this year. be expected, along with any pressure any- effect Some o of of that the wil oldest hands at this kind of
According to the Federal Reserve Bank of St. where to draw U.S. and "puppet" (South Vietnam forces) out of areas where thing-Henry Cabot Lodge, Maxwell Taylor,
Louis, the money supply--the total of bank- ideation is proceeding. pac Dean Acheson-think that if the Commu-
checking deposits of individuals and busi- The Viet Cong and the North Vietnamese nists do not soon have more success they will
ness, and cash in public hands---averaged are still strivi for a localized victor Vietnamese just fade away. None of them, knowing the
Nov. l29,billion in the four weeks ended the Dien Bienn Phu type, the infliction of Communist attitude toward negotiations, has
casualties any faith in negotiations.
week span ended March 1, but only a 4.9% will drive American public opinion along
rise from a four-week period ended Aug. 30, the road toward negotiation in a presidential
the St. Louis Reserve bank said. election year. This seems to be the general
People who attach importance to money- goal of Communist strategy carried out
supply statistics contend that a marked and through a variety of local and tactical opera-
sustained change in the trend of supplies tions.
ultimately augurs a change in economic Perhaps the most interesting story the
activity. documents tell, therefore, is the Communist
Relaying other :figures, the New York Fed- conception of negotiations. There can be no
eral Reserve Bank said commercial and in- mistake about this so far as Communist
dustrial loans of Chicago banks decreased $9 doctrine passed on down through the cadres
million in the statement week, following a and the political organization is concerned.
$34 million decline the prior week. In the Negotiation means just one thing in this
like 1966 week, they were down $44 million. language, the creation of a coalition govern-
Since mid-year, Chicago business loans ment which will be dominated by the Na-
have shown a $70 million cumulative de- tional Liberation Front. The NLF is the
cline, in contrast to a $75 million cumula- southern wing of the Communist party of
tive gain In the year-earlier period. Vietnam called the Viet Cong and controlled
HOPE FOR MEANINGFUL NEGOTIA-
TIONS WITH VIETCONG AND
NORTH VIETNAM IS IMPOSSIBLE
Mr. McGEE. Mr. President, Columnist
Richard Wilson, in yesterday's Evening
Star, told how captured enemy papers
from Vietnam confirm the opinion that
hoping for meaningful negotiations now
with our adversaries-the Vietcong and
North Vietnam--is hoping for the impos-
sible. Negotiations, in the view of the
Communists, means only one thing-es-
tablishment of a coalition government
in a complicated and well-structured orga-
nization from Hanoi.
Repeatedly and consistently the officers
and men in the field, the political cadres,
and the whole structure of the Viet Cong
are told that a coalition government is the
sole and exclusive aim of the war. The docu-
ments themselves are very convincing on this
point when read by the untutored observer,
and the skilled analysts at the White House
arrive at the same conclusion.
The line is unvarying and persistent as
the justification for military actions, and the
instructions as late as October have even
more strongly emphasized the imperative and
controlling condition that the NLF shall be
the dominating force in a coalition govern-
ment in South Vietnam.
SHOE REBUILDERS PLAN TRAINING
PROGRAM
Mr. CLARK. Mr. President, I wish to
inform Senators of a splendid, new, con-
structive organization, the National Mas-
ter Shoe Rebuilders Association, recently
formed in the Commonwealth of Penn-
sylvania.
This group, composed of the master
shoe repair craftsmen, whose services we
all use, is an outstanding example of the
application of hands, hearts, and minds
to an important and worthwhile purpose
to serve the public welfare and good.
Looking to the future, and to an ever-
increasing public need, the master shoe
rebuilders are sponsoring training pro-
grams that will offer job opportunities
for a potential 50,000 men and women.
In this connection, and while it is true
that manual aptitude and an artist's eye
are applied in this craft, its basic require-
ments easily are met, and its high skills
acquired, by most men and women, either
through formal vocational instruction, or
by in-the-shop training.
The National Master Shoe Rebuilders
Association programs cover both of these
training approaches.
Significantly, a census initiated by the
it means success, ultimately, for the why anyone in~the~senate~or"runningcfor thousandCAmercanxshoeeepairlshops.
Communist campaign to control South president could conceivably conclude that in This represented a decrease of more than
Vietnam. These are conditions which negotiation as Americans think of the word 20 percent from the shoe repair shop
can only be termed unacceptable both lies the hope for a successful settlement of census of 1958.
to South Vietnam and to the United the war. This decline in an essential personal
States of America, as well. Negotiation on these terms would be an service is attributed by the national asso-
Mr. President, I ask unanimous con- abject confession of defeat leaving the
sent that Mr. Wilson's column be printed Hanoi-controlled National Liberation Front ciation to the higher than average age of
in charge of South Vietnam after the with- shoe repairmen. Further, the introduc-
In the RECORD. drawal of American forces. tion of machinery and techniques of a
There being no objection, the article Some of the analysts speculate that this time-and-labor-saving character per-
was ordered to be printed in the RECORD, continued harping on a negotiated settle- mitted increased production by a com-
as follows: ment with the NLF dominant may be for paratively smaller number of craftsmen.
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