CAPTIVE NATIONS WEEK

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP91-00965R000300110079-0
• Release Decision: RIFPUB
• Original Classification: K
• Document Page Count: 4
• Document Creation Date: December 16, 2016
• Document Release Date: November 5, 2003
• Sequence Number: 79
• Publication Date: January 1, 1960
• Content Type: OPEN

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19go c9N,Q4Essf9.NA1,.. AtcORP 7773J9,V?,g 0355
ity and a sound economy. TieckleSs
DemiNfOC,41.4_11911,49.?.6.1Allfi-,6 .14 Mela-
tioned at Ine.opening_nf_.my remarks,
implying .e2cceSsiye, Republican taxation,
is in the sa e category as the "big lie"
technique?if you make a he big ,enough
and repeat it Often enough it may be
believed. - Whereas the tax, btirde4. in
the last 7 , years has actually been
lightened, by quoting statistics out of
proper context, some bemocrats Would
try to delude the public into believing
just the oppoilte. Where the President
cries for fiscal responsibility, they would
buy the people's votes with the people's
(:)Wn _money and then Oharge waste.
The story of this administration's
struggle and, yes, considerable success,
Should be told and told again.
In Spite of continuous_ harassment,
the President with the support of the
Republicans and a few thinking Demo-
crats in Congress, has brought about fis-
Cal integrity, a balanced budget and
-substantial tax cuts. It is a great
ltellieVernent. And when the f acts are
known through the length and breadth
Of .this land, those who spread falsehood
about the Presidents achievement will
be treated with the contempt they de-
serve. _
(Mr. OSMERS (at the request Of Mr.
BROCINFIELD) was given permission to ex-
tend his remarks at this point in the
RECORD.) .
,
Iltre 0$lVIR$, Mr. peaker, HR.
0996 b.as asitp purpose kehange.in ,the
' ProepoltireS:Which permit gpreigp..excess
Properties whic1-1 are disposed of overseas
to enter the vnito .statek for. sale. Mr.
,cimirmail, I am opposed to H,R. 9996
primarily for the reason, that no Mem-
ber here today has been able to prove
:that there eXists_any real peed for this
legislation, ,Several statements, have
been made With respect to the viewpoints
Of affected industries. In order to clarify
.the position of two _indusstries, I would
like to place in the REcoRD at this point
paragraph from a letter dated June 22,
1960, received by mc tr.ota Jeseph T.
King, Esq?, Washington counsel for the
Associated Equipment Distributors. Mr.
King's letter states:
Industries, including ours, ,object to the
pill because the language "undue loss of pro-
duction or employment" is so vague that the
Secretary of Commerce could not make a
determination of the impact of any given
quantity of goods brought back into the
United_ States _until after. the damage was
clone. ror an industry to prove or for the
tie0retary of Commerce to determine that
the importation of 10, 100, or 1,000 units
would result in, an "undue, loss of production
or employment" in the particular industry
Is an impossibility. Assuming all other
ecoiaomic factors to be eonstaut, such a fact
Could only be determined atter production
Or,
employment has been affected.
And now, Mr. Speaker, I would like
to place in the RECORD a paragraph from
another letter, dated June 17, 1960, re-
ceived by me from Henry Lavin, chair-
t49? IggigatlYe Cerillinttee of the
cLEPPK__AVPMentatives Association.
Mr. aYin says:
'-"Weannot ,help. but feel that i1.11, 9996,
In any form, will, needlessly compound the
dif5c144es _already caused by domestically
getiekted iumjus, to ,say nothing of the im-
pact of good!' made 12y3a4313..ese and o:ther
foreign manufacturers. Beyond this, we are
comPelled to doubt the ability of the De-
partment of Commerce to determine in ad-
vance, whether or not a given shipment of
surplus merchandise will cause undue loss
of production and/or employment, even in
a specific industry. Certainly economic dam-
age can be measured once it occurs, but an
advance determination of such harm seems
to us to be a difficult task at best,
Mr. Speaker, this bill is simply not
4n the best interest of American industry
and labor and should not be adopted.
GENERAL LEAVE TO EXTEND
REMARKS
Mr. WOLF. Mr. Speaker, I ask unan-
imous consent that all Members may
have 5 legislative days in which to ex-
tend their remarks on the Teddy Roose-
velt Memorial bill.
The SPEAKER pro tempore. Is there
objection to the request of the gentle-
man from Iowa?
There was no objection.
(Mr. RANDALL asked and was given?
permission to extend his remarks at this
point in the RECORD.)
[Mr. RANDALL'S remarks will appear
hereafter in the Appendix.]
(Mr. SCHERER asked and was given
permission to extend his remarks at this
point in the RECORD and to include ex-
traneous matter.)
[Mr. SCHERER'S remarks will appear
hereafter in theAppendix.]
(Mr. SCHERER asked and was given
permission to extend his remarks at this
point in the RECORD, and to include
extraneous matter.)
[Mr. SCHERER'S remarks will appear
hereafter in the Appendix.]
MINIMUM WAGE BILL
(Mr. PERKINS asked and was given
permission to extend his remarks at this
point in the RECORD.)
Mr. PERKINS. Mr. Speaker, I rise for
the purpose of highly commending and
congratulating the gentleman from Cali-
fornia [Mr. ROOSEVELT] for the fairness,
reasonableness, and understanding he
has demonstrated during the past
months in order to get a carefully
thought-out minimum wage bill before
this body. In my many years of service
in the House of Representatives I have
truthfully never been as impressed as I
have been with the efforts and hard work
of Mr. Roosevelt. Ie not only knew the
subject at hand, but he also has shown
a remarkable degree of patience and de-
sire to be objective. He has also demon-
strated the rare quality to listen to all
arguments with seriousness and objec-
tivity.
In rising to pay tribute to my col-
league, I want to state I supported the
committee bill. It was a moderate, well-
thought-out proposal based on lengthy
hearings and subsequent work by the
Subcommittee on Lalopr .5tandards_end _
the full Edugation and labor _commit-
tee. Thus it had not been presented to
this body in haste.
The committee bill was much better
because I believe it would be patently
unfair to ask newly covered workers to
work unlimited hours without protection
from overtime end give such protection,
now, in the law, to those presently
covered.
Mr. Speaker, I also wish to stress the
fact. that, contrary to misleading state-
ments by self-serving groups, the Roose-
velt bill did not bring under its coverage
the independent or small business enter-
prise.
Mr. Speaker, notwithstanding the fact
that the Roosevelt proposal was voted
down on a close vote yesterday, the gen-
tleman from California made an excel-
lent presentation and explanation of his
bill.
THE LATE ALBERT E. REITZEL
(Mr. BOSCH asked and was given per-
mission to extend his remarks it this
point in the RECORD.)
Mr. BOSCH. Mr. Speaker, the United
States has lost a great citizen. I refer
to Albert E. Reitzel who served our Na-
tion from 1923 until his retirement in
1955. Even after his retirement, he
continued to serve; the committees of
Congress had his valuable counsel and
knew that he was always available for
consultation in the field of immigration
law and problems, a field in which he
qualified as an expert in every sense of
the word. The yeoman work he did in
this field will always be a memorial to
his life and career.
Mr. Reitzel in March of this year wrote
an article for the 8teuben News, official
publication of the Steuben Society of
America of which he was a member,
which is one of the clearest explanations
of immigration law, procedures, and
problems that I have ever read. Our
distinguished colleague from Pennsyl-
vania [Mr. WALTER] saw fit to insert a
goodly portion of the aforesaid analysis
in the RECORD and thus preserved it for
posterity.
To the family and friends of Albert E.
Reitzel I extend my deepest sympathy in
their bereavement.
THE LATE JOHN O'GRADY, U.S. CON..
SUL IN BRISBANE, AUSTRALIA
(Mrs. ROGERS of Massachusetts asked
and was given permission to extend her
remarks at this point in the RECORD and
include extraneous matter.)
Mrs. ROGERS of Massachusetts. Mr.
Speaker, I have the honor to present
herewith an editorial from the Greens-
boro Record of Greensboro, N.C., written
by Mr. Bruce Jolly, the Washington cor-
respondent for the Greensboro, N.C.,
Daily News. This excellently written
editorial by Mr. Bruce Jolly relates to the
recent death in an airplane accident of
Mr. John O'Grady, the U.S. consul in
Brisbane, Australia.
Mr. O'Grady was a native of my home
city of Lowell, Mass. In Lowell, he re-
ceived his early education and later he
,ctiose as a career the U.S. State Depart-
ment. His work in the ptate PepNtine,nt
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CONGitEssfONAL ItEcO11.15?tiotisg
and in representing Stales linesi and fr4dOin. to a large Paft tne tee askei unanimous consent to take the
abroad was distinguished by 'the force world. It is they who must point out the bill from the Speaker's table for inlmedi-
d d d t ft-libel...lied in
arl energy an e er ina o diversities in Congress that freedom of selec-
ti n and guide those I ate consideration. 'The amendment per-
July 1
his effort to excellently _present the ?brings, g n foreign eoun-
Mits the application of any person origi-
United States to the oplof
tries to judge by the whole product rather
"Pee the Coun -
, , ? , . than the spoutings of the few. nally eligible to apply for national serv-
try to which he was accredited. I am Perhaps that is the real tragedy in the ice life insurance to make a new applica-
proud Mr. O'Grady was a native of death of career men like John O'Grady. To- tion within 1 year after January 1, 1961,
Lowell, Mass. In Lowell he had many day, he represents the kind of men the Na- upon the submission of evidence of good
friends and 'relatives, all of -within are tion needs. There are many of them, but health at the time of such application,
shocked to learn of his untimely death. there still aren't enough. and the payment of the required
,'VolloWing. is the"verY fing..e... itnri_a_l bY. (Kr& ROGERS of Massachusetts premiurns. ' from
y
Bruce Jolly: , , , , , asked and was :given permissiontoex- 'It 1e eloped there was objection tom
' ty 'ifruce 3 olly)- " ' tend her remarks at this point in the the gentleman from California, a mem-
- ASTII-0.0.,...- - war ,,,, ... ?,,i 'pi;most' pe:ollig,' the-name. RECORD, hiande extraneous matter.) ber of the House Veterans' Affairs Com-
_ and_ ,, . _ ,,
John O'Grady meant -nothing. 'With the ex- Mittee I Mr. Siam].
eeption of a privileged few, those who were [Mrs. ROGERS of Massachusetts' re- At page 13,932 of the RECORD, a mem-
his colleagues in the Tiepartreent Of State marks will appear hereafter in the Ap- ber of the Insurance Subcommittee
and those who kifety *Min as a friend, his pendix.] stated that the subcommittee studied
name in recent, headltriei annoUncing the
crash of an Australian airliner that cost his
life and all, others aboard' Feb-ably brought'
Onlypassing nionierit Of regret;
'But big freckled John O'Grady, with his
ready grin and 'agile Mind, personified the
best in Tj.$. representatives abroad who are
conipletely devoted to their duties, and who
theinieIVel in 'Pie ever-increasing
-battle of presenting the trotte#' States In "its
best light. '
O'Grady wee 11.S. connul in Brisbane. He
was a State _Bepartment career man who
1eved his Job In part :because he lcived-eoPle.
? ,
Before he lett for AustiAlia,4011:1:0'Gritd.
liteighed every move that he Might make so
Ilia; when he arrived, he would be hi a po,.
sifiiOn to sheithe-VatiOii-at rfaTbest: -
100-a t canip topineliaaing automobile
for 'Use in -kuStralia, he relented - 'tenipting
lb-nye of foreign cars at gall" the-rice -fiaa
-to pay to purchase "an especially made IT.S.
ear with a right-hand drive?a requisite in
.PolintrI? _
He did so -because he was convinced that
Weuld reflect on the united statesIf he,
aa a representalVe., were to "ttriVe a
' ereign-make car. - -
Per hours; John O'Grady 'listened to re-
terdiugs of -great ' orbliestres and
true folkaongs. He wanted to take' with
Mtn the beatiand raostrepreseritative presen-
, tatIons of :the country's truly great Musical
?,attaLnnt for he knew that In too many
instances this titati:one e,Oural C4acities are
Stispected.
' 'He worked with 'hisfamily' so his children
would be familiar withthe ata to - which
they were being sent, and net be caught
:shart on their knowledge of Australian geog-
raphy and the 'virtue of Cricket.
He did these things becauie. he had the
background and experience that Indicated
the need for them. rt was this same John
.O'Grady who, when In Greece.'arduously
learned that eOuntry'i folk danees, and per-
formed them with. the luMberifig, grace of a
ganee . star ,althlete frorn 'his native I,owell;
'Maw., to' the delight' and applause of his
"toreign. friend's: - ? "
-144,i74 Al' At rod'
_
.-John O'OradY died tit a'plane that crashed
Infq, ,p6tro,114?ay. dining -a fog_ The
plane was Miry 'short illittince;a4"distanee
'isMea,atireiktae.r,4ra 'the ftel`d fo..r 'Whfah.
11-t was headed.- there ere SA, p,e?ple On the
lane. None survived.'_
,p
(:)'-Grady 'Wei the ride, rather than -the -ex-
ception. There- are others by-the scdres who
Are doing the smile kind of jeb, operating in
.Mideeheinn jo-sltiOns,' behind the _headlines,
"Tain-g, .generally unsung.
?a certain, e- J) Fairy
the '11* p.4 erroreffnat are guide
by tourists and by. the Viation s military rep-
-1*fielitativeS;;;It is they who mnitllustify and
.te,MISt the -bitferiaess and 'the
"trejudiee -Mit-- all too ' frequently' oceni in a
the,c,e,tkirls, ao a synpa:po.1 of friend-.,
COMMrrrilE ON` GOVERNMENT
OPERATIONS
Mr. MONAGAN. Mr. Speaker, I ask
unanimous consent that the Committee
on Government Operations be given per-
mission to file three reports up until mid-
night, Saturday, July 2. The reports
= are entitled, first, "Civil Defense Shelter
Policy and Postattack Recovery Plan-
ning"; second, "Personnel Practices and
Procedures in the Internal Revenue
Service?Des Moines, Iowa, District
Office"; third, "Federal Home Loan Bank
Board Seizure of Long Beach Federal
Savings and Loan Association."
The SPEAK1& there objection to
the request of the gentleman from Con-
necticut?
There was no objection.
the legislation "at great length" and
"unanimously turned it down."
'Mr. Speaker, I rise, as a member of
that subcommittee, to make this state-
ment in order to prevent any possible in-
ference that I was against the reopen-
ing of national service life insurance.
There was no action of the subcommittee
that "turned down" anything. There
was a motion to defer action at the time
because of statements by staff counsel
that Senator Lorm's amendment would
be proposed; and to await developments
in the Senate. Because of use of the
words "unanimously turned down" by
the gentleman from California [Mr.
SMITH], it could be interpreted that I
was opposed to the reopening. Instead
I wish to state that I am in favor of
reopening national service life insurance,
because it is only fair that this old right
be revived as to those who, because of
some hardship, had to drop this insur-
ance it, years past. This reopening is
.r. HOWIAI4 'of ichig?
. not a handout or a giveaway. It is not
Speaker, I ask' unanimouscOnsent to even 'a Government subsidy. This re-
correct the RECORD of last Friday in the opening cannot injure private insurance
upper left page where I made the state- companies because there is no expansion
ment in substance: of any ::ights but only the reinstatement
The gentleman claims to be a gentleman. of an old right. I sincerely hope the
House has the opportunity to vote upon
the granting of this right to reopen
natio al service life insurance.
What I said was:
X do not claim to be a gentleman.
The SPEAKER pro tempore. Is there A
objection to the request of the gentle- e
man from Michigan?
There was no objection.
CORRECTION OF ROLLCALL
Mr. DULSKI. Mr. Speaker, on roll-
call No. 164 I am recorded as not being
present. I was in the Chamber and an-
swered to my name, and I ask unani-
Mmis consent that the RECORD be cor-
rected accordingly.
The SPEAKER pro tempore. Is there
objection to the request of the gentle-
man from New York?
There wat,-5 no 45,Weeti?Pt
NATIONAL SERVICES LITE INSUR-
ANCE
(Mr. LEVERING asked and was given
permission to extend his remarks at this
point in the ttgcoan.)
-Mr. LEVERING. Mr. Speaker, dur-
ing the general debate on Wednesday,
- June 29, in consideration of H.R. 11405,
'with Senate amendments, the chairman
of the House Veterans' Affairs Commit-
-
:SA
CAPTIVE NATIONS WEEK
(Mr. DINGELL (at the request of Mr.
Dursiti) was given permission to extend
his remarks at this point in the irtscosa.)
Mr. DINGELL. Mr. Speaker, the
Captive Nations Week, which is being
observed throughout the country during
the third week of July, has become a sig-
nificant and momentous week. The ob-
servance of this week serves as eloquent
expression of our wholehearted sym-
pathy for all peoples enslaved by the
Kremlin's Communist tyranny.
The peoples of central, Eastern, and
southeastern Europe, numbering about
100 milion in all, were living freely in
their lustoric homelands before the out-
break of the last war. They were doing
their best in building democratic insti-
tutions in their respective countries, and
thus, were cctntributing considerably to
the spread and strengthening of demo-
cratic forces in their countries. But the
war and the catastrophic events succeed-
ing that war, proved fatal to their free-
dom. By one blow, one might say, all of
them were caught and trapped behind
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1960 CONtICESSIONAL RECORD -- HOUSE
?utath, treacherously devised would channel savings for investment in
effea Tiriaintained4.g the Corn- priva h financing Government
? mimlsts tst. a . is what securities.,k9T:crefel4nient," and other
malto tilet4 9 .tor4144611,, This bill ta beingackIn-
between t kltic an? 13 `S"e:a
tragic, and their future so closely linked
wi of.. the Soviet Union. ,
woSe tl-le_end-of 16;a war the 'peo-
ple of this country, through their Gov-
erntrient, have exerted tremendous forces
with a view orrelieving the misery and
eVentually assuring freedom to these
peoples. ShOrt Of war, fhe'VOverninent
of the United Stites Working in coopera-
tion with the governments of the free
West, has done its utmost to have the
Soviet Union to allow freedom to these
peoples. Unfortunately, all these efforts
have been of no ayail, and today they
are fib more free than they were before
we began to champion their righteous
cauSe. But we have not given up hope,
and we firmly believe that the captive
nations of Europe will eventually regain
their freedom. Until that day, the peo-
ple of this country and their Govern-
ment will continue to observe anrivally
Captive Nations Week, so long as these
peoples are denied the right of their
becoming the masters of their destiny.
On this day we once more dedicate our-
selves to the task of freeing these en-
slaved peoples from Communist totali-
tarian tyranny.
,
nmFBMRS.La _IvItY111A;4, SAITINOS
? (Mr. MULTER (at the request of yfr.
Dvizici) was given permission to.extencl
his remarks at this point in the Rgoorto.)
Mr. MITER, Speaker, our dis-
tinguished, colleagues, the gentleman
from Alabama [Mr. Rs.rnsl the gentle-
man from as4actmetts, [Mr. BuitAzi,
the gentlemaan from Pennsylvania [Mr.
BARRETT], the gentleman from Hawaii
INcaryz], the gentleman_ from, New
fork, lar., Puy], and , the gentleman
from. New tort [Mr. Ilm,Fsaril have
Joined me today in introducing a bill to
establish Federal mutual savings banks.
In order to carry out more effective:y
its responsibilities to the Nation for pro-
raoting maximum employment, produc-
tion and purchasing power, the Congress
Train facilitate and encourage an in-
creased flow of.,,real sayings to finance
housing and other capital formation on
a sustainable, noninflationary basis.
These increased savings necessary to the
security and welfare of the individual,
as well as the ?Nating, should be _pro-
Vided within the private institutional
franiework o.f our competitive economy.
The objective of increased capital for-
mation through thrift can be advanced
by the extension of the mutual savings
bank system.
? This 1411 therefore provides for the,
ej of, mutqal_sayings banks by
-
ese new banks would' pa, privately
managed, -federally supervised and in-
sureti Vt tl ' d t
4014 t4c'Of6r4,of
tpi Savings banks. Like. their, Btate
ter a.ilt.S; banks peclal-
tll thrift and
ro uced_ a the end of this session so
that between now and the next session
Interested groups will have an oppor-
tunity for the careful study that this
program merits.
Banking in the United States has in a
sense emulated our Federal system of
Government by evolving along two sep-
arate lines?State and National?and
this dual banking system has, as much as
any other single factor, contributed to
the vitality of our financial institutions.
We have State commercial banks and
National commercial banks. We have
Federal and State savings and loan as-
sociations. The dual chartering system
extends to credit unions as well. Mutual
savings banks alone exist as State insti-
tutions exclusively and then only in 17
States.
Mutual savings banks have a special
appeal and, a special skill in the encour-
agement of thrift which has been aptly
demonstrated in States where these
banks now. exist. In those States, per
capita holdings Of thrift accounts gen-
erally are higher than in other States in
the United States. The 17 mutual sav-
ings bank States are all included hi the
25 States with the highest per capita
holdings of thrift accounts. Denial of
these thrift facilities to individuals in the
33 nonsavings bank States seems unwar-
ranted--especially since both population
and personal income are rising rapidly
in these States and capital needs are
greater than ever before.
Since mutual savings banks exist in
only 17 States, it is probable that some
general comments toward an explana-
tion of mutual. savings banks would be
helpful.
-Mutual savings banks are called mu-
tual because they are organized without
Stockholders. The effect of this is that
all earnings, after provision for ade-
quate reserves, are distributed to de-
positors as interest on their deposits.
Traditionally, mutual banks have not
accepted checking accounts and have not
made commercial unsecured loans.
Their sole function is to encourage thrift
and to stimulate the flow of savings into
productive investment.
Management is by boards of trustees.
Members of these boards are generally
prohibited by law and by the principles
of trusteeship from commercial dealings
with their bank. The organizers of the
bank usually constitute the first board,
which'thereafter elects new members as
vacancies occur. The board establishes
bank policies, elects officers, determines
interest rates, and supervises invest-
ments, all subject, however, to govern-
ment regulation and examination.
First organized in the United States in
?=A mutual savings banks are the Na-
tion's oldest type of thrift institution.
They were formed originally by philan-
thropic, public-spirited men who saw
ameegl.for providing safe depositories for
the Aav_ings of those people of moderate
means Wheni the larger banks were not
igteresteia serving.
1457
The mutual savings bank industry has
the finest record of safety to depositors
ofikii;Y:type. of banking industry_ in the
,. survived
wars,
oh is it has survived
wars, epressions, bank panics, and the
booms and busts of nearly a century and
and half.
Though operating in only 17 States,
these banks today serve over 22 million
accounts and have more than $.35 billion
on deposit. 'Although they are author-
ized' to exercise diversified investment
powers, they hold $2-5 billion in mort-
gage loans and in the 14-year period
since the end of World War II have in-
vested a greater proportion of the funds
available to them in mortgages than
_
have any of the other major types of
financial institutions. An estimated $5
billion of these loans are on properties
In States other than the States where
mutual sayings banks are located. For
instance, there are no mutual savings
banks in California, Michigan, or Geor-
gia, but mutual savings banks hold well
over $1 billion in loans to California
homeowners, about $300 million to
"Michigan homeowners, and over $200
million to Georgia homeowners. This
kind of record should suggest to us what
can be done for thrift and home financ-
ing by extending these banks to all 50
States.
Following is a section-by-section anal-
ysis of my bill H.R. 12913:
SECTION 1. TITLE
The bill is entitled the "Federal Mutual
Sayings Bank Act."
SECTION 2. DECLARATION OF POLICY'
. The legislative purpose of establishing a
system of Federal mutual savings banks is
to promote thrift and utilize the accumula-
tion of thrift deposits for home financing and
other investments.
SECTION 3. DEFINITIONS
Certain terms, such as "financial institu-
tion" and "thrift institution," which have a
special significance in the act, are defined in
tiffs section. 'P1nancial institution" includes
a "thrift institution" and also commercial
banks, trust companies, and insurance com-
panies. "Thrift institution" includes State-
chartered mutual savings banks, cooperative
batiks, homestead associations, and mutual
savings (building) and loan associations, and
Federal mutual banks.
,
SECTION 4. THE FEDERAL MUTUAL SAVINGS
BANK COMMISSION
This new independent Government agency
would consist of three members appointed by
the President for staggered terms of 6 years.
The Commission would supervise the charter-
ing of Federal mutual savings banks and
their subsequent operation. Each member
would be required to devote his entire time
to the business of the Commission and would
be prohibited during his term of office from
serving in any capacity in any financial
institution. No more than two members of
the Commission could belong to the same
political party at the time of appointment.
SECTION 5. COMMISSION POWERS
The Commission would be empowered by
this section to adopt and amend rules and
regulations for its own operation and for the
operations of member banks of the system.
This section contains a general grant of pow-
er and is further supplemented throughout
the bill by various specific powers.
SECTION O. CHARTERING OF MUTUAL BANKS
Application for a Federal mutual savings
bank charter would be required to be sub-
-
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14358 CONGRESSIONAL RECORD -- HOUSE
scribed to by 5 signatories from a minimum
of21 corporators. This minimum Would not
apply in the-case of the conversion Of a 'pre-
existing thrift inititsition. The Commission
? wotald be empowered togrant a -charter 'after
Ancling that a Federal mania savings bank
would serve a useful purpose in the com-
? rnurrity, that there was reasonable eirsiecta-
tiori of its allecess, and that its operation
would not unduly injure existing thrift insti-
tutions, All Federal Mutual savings banks
wolild be required to include the words
eral," "mutual," and "savings" in their title.
Federal mutual savings banks woad be per-
mitted but hot to beceirie-nreirib
m ers
Of the Federal Home Isoari Hardt System.
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The ultimate authority in a redetal mutual
adeings bank would be the board of corpora-
tars. Corporators Worild be divided into
three classes of equal size and *arid be
elected for staggered terms of 10 years. The
_
Corsurtiesion would be empowered to pre-
Beilbe standards Of conduct for corporators.
The Froard would not be charged With the ac-
tual management of the tank; its`Priticipal
funetion would be the elactiori -Of thelruas`
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The board ortrateed 'of a Federal mutual
SOings bank would be charged with the
respobsibility for policy Management of the
_bank, Trustees would ,be elected from among
-the corporators for staggered tering Of 3 years.
TIC. person 'acting 'as' -trustee of a Federal
inntual savings bank would be allowed to
hold offiee as a trustee, director, or officer of
aliaher thrift institutioh. Trustees Would
be prohibited from receiving any rerritinera-
? tion as a trustee except fees for ,ittendanee
at meetings or for eerviee- as a member of
bOnsibittee.' Furthers they would be pro-
- hitited from borrowing fririds froiri- the Fed-
- eral 'Inutual 'eavings' %Irk -`inileee- the- loan
- were secur:ed by the assignment of -a deposit'
or share .ascount in a thriftns u on.
.Pipally, these trustees would be prohibited
from Making any profit from any Property
acrid to or services performed for the -Fed-
eral mutual_ sA,vings _bank- or in -connection
with any lean made by the Ffederal mutual
savings bank. The 'COrninissiOn Would be
griltioVered, in equitable Circumstances, to
Make exceptions- frem the restriction's on
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. No V'ederal mutual savings bank would be
permitted to commence opera ons until it'
. had qualified as an insured bank under the
Federal Deposit Insurance Act. No Federal
Mutual savings bank Would be permitted to
continue operations if it should at any time
cease to be so qualified. 15ricii- to corn-
rrieneenient, of operations, an expense-fund
wobld be required to be advanced in-aa,sh
to the Credit of the Federal Mattel saving's'
bank, Contributions to this expense fund
. - ,
, Would e evidencedy. e erre - paymen
Certificates, Which could be repsaiel in -sueh
lristaihriente and at such interest Ooiri-
rOldsiOn, approved. 'the "expense bind' would
, be -allabla for the.: Payirient --61. 'operating
expensed until such eaperides -eistild be Paid
out of the ,hank's earnings.
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' In .tOdition IP the. "cjcPense 1-tirid which
be sitill*ci for operating' eiPerties of
? the ederat pristuai _Segings batik, a reserve
fisnd' woul4. be required i to be advanced In
caeti to the Credit of a-Federal mritsial'SaViriga
bank' and would be available 'fOr'' the sole
ptirpeat of meeting' lOesee: The' mintintuil
ahlOrint of _the initiel 'reeerve fund-won-Id be-
$50-,060. The actual slz& of the ieier'Ve Inn&
? 'would, depend on CorinnieeiOn Standard's and
also' on the requirements .of the Federal De-
poSif InSurance CorPoratron: 'Fiat' Federal
inttilal.Salings 'bank *-6-cha ha ?1rd to-
asld.to this reserve fund= -u of ne earnings
. ,
whenever the reserve fund did not equal 12
percent of deposit liabilities. Sums ad-
vanced to the initial reserve fund would be
evidenced by deferred payment certificates
and would be repayable in such installments
and at such interest as the commission
provided.
SECTION 11. BORROWING
A Federal mutual savings bank would be
empowered to borrow funds subject to Com-
mission regulation.
SECTION 12. DEPOSITS
A Federal mutual savings bank could ac-
cept any sasiings depoait, could reject sums
offered for deposit, could repay deposits at
any time, and couldclassify and differentiate
among' deposits on such bases as it deter-
? mined. Interest on deposits could be paid
from net earnings and undivided profits. A
Federal mutual savings bank would be em-
powered to require advance notice of with-
drawal.
SECTION 13. INVESTMENTS
" A Federal mutual savings bank would be
empowered to invest in Government, State,
and local obligations, obligations of agencies
df the United States and the States, Canadian
obligations, title I notes, in conventional
Mortgages subject to certain restrictions such
- as o t -value limitations and total aggre-
gate investment, insured mortgages, and se-
cured promissory notes. Corporate securities
investment would also be subject to certain
restrictions, such as minimum maturity and
total aggregate investment.
In addition to the investment powers spe-
cifically set forth, the Commission would
be empowered, by regulation, to grant Fed-
eral mutual savings banks authority to make
further investments, but the Commission
would not be empowered to restrict invest-
ment powers to limits more stringent than
those set forth in the bill. The types of in-
vestment specifically mentioned in the bill,
therefore, represent a minimum grant of
Power.
SECTION 14. BRANCHES
With the approval of the Commission, a
Federal mutual savings bank could establish
One or more 'branches in the State of its prin-
cipal office, but only to the same extent
that any State-chartered financial institu-
tion accepting funds from savers was au-
thorized to establish branches. Before ap-
proving any branoh application the Com-
mission would be required to make the same
-findings as provided for in the case of a char-
ter application. Branches and offices oper-
ated as of conversion, merger, or consolida-
tion could be continued in operation. Rights
to branches or offices could also be retained.
?SECTION 15. CONVERSION
Any thrift institution could convert itself
Into a Federal mutual savings bank provided
that such conversion was in accord with the
? laws under which the converting thrift in-
stitution as organized and providing alsp
that the Commission approved. 'Before
prOving any such conversion, the Commis-
sion would be required to find that the insti-
? tution seeking conversion had the ability to
discharge the duties and to conform to the
restrictions upon Federal mutual savings
banks and had previously so conformed to
the extent required by the Commission. The
institution would be empowered to retain
? and service all accounts lawfully held by it
on the date of its conversion. Federal mu-
tual savings banks would be empowered to
convert into any type of thrift institution,
but such conversion would be subject to ap-
proval of any regulatory authority having
jurisdiction over the type of thrift institu-
tion into which the Federal mutual savings
bank _sought to convert. Federal mutual
savings banks would not be permitted to
convert unless the State laws applicable to
the thrift institution into which the Federal
mutual savings bank' ought to convert per-
July 1
mitted reciprocal conversions to Federal mu-
tual savings banks without approval by any
State authority. The approval of the Com-
mission would not be required for the con-
verSion of a Federal mutual savings bank into
another type of thrift institution.
SECTION 16. MERGER AND CONSOLIDATION
Any two or more Federal mutual savings
banks or any one or more Federal mutual
savings banks and one or more State-char-
tered mutual savings banks would be per-
mitted to merge or consolidate. The ap-
proval of the Commission would be required
where the surviving or consolidated institu-
tion was to be a Federal mutual savings bank
and the aoproval of the appropiate State au-
thority would be required where the surviv-
ing or consolidated institution was to be a
State-chartered mutual savings bank. How-
ever, no Federal mutual savings bank would
be permitted to merge or consolidate when
the surviving or consolidated institution was
to be a State-chartered mutual unless under
the law cf the State in which the Federal
mutual savings bank was located, State-
chartered mutual savings banks could par-
ticipate ir mergers or consolidations without
approval by State authority when the sur-
viving or consolidated institution was to be
a Federal mutual savings bank.
SECTION 17. GENERAL POWERS
Federal mutual savings banks would be
granted certain operational powers and in-
cidental powers appropriate to the achieve-
ment of the objects and purposes of a Federal
mutual savings bank. Further, a Federal
mutual savings bank would have the author-
ity to exercise all the powers possessed now
or hereafter by any State-chartered mutual
savings bank chartered by the State in which
the Federal Mutual savings bank was lo-
cated. A Federal mutual savings bank would
also have the authority to exercise powers
defined by the Commission as generally
possessed now or hereafter by State-char-
tered mutual savings banks.
SECTION 16. ANNUAL REPORT
The Commission would be required to
submit an annual report to the President for
transmission to the Congress.
SECTION 19. EXAMINATION
The Commission would be required to con-
duct an annual examination of each Federal
mutual savings bank provided that the Com-
mission could accept for any year in lieu of
such exa-nination an examination by the
Federal Deposit Insurance Corporation.
SECTION 20. TAXATION
No State, territorial, county, municipal,
or local taxing authority would be permitted
to impose any tax on Federal mutual savings
banks greater than that imposed by such
taxing authority on other similar local mu-
tual or cooperative thrift and home financ-
ing institutions.
SECTION 21. AUTHORITY TO APPOINT
CONSERVATORS AND RECEIVERS
The Commission would be empowered to
take possession of a Federal mutual savings
bank and appoint a conservator or receiver
Whenever it appeared that such Federal mu-
tual savings bank: (1) Had violated any pro-
vision of the act; (2) was conducting its
business in an unauthorized, unsound, or
unsafe mrimer; (3) was in an unsound or
unsafe condition to transact its business;
(4) had neglected or refused upon proper
demand to comply with the terms of any
order, rule, or regulation of the Commission;
(5) had refused to submit its records and
affairs for inspection by the Commission or
the Federal Deposit Insurance Corporation.
If the Commission determined to appoint
a receiver it could only appoint the Federal
Deposit Insurance Corporation. In the
event the Commission- took possession of a
Federal mutual savings bank, any officer
of such Federal mutual savings bank would
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