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effect as to seriously erode the value of the Seeking to repeal the law of supply and de- meeting today in Georgia on the Ameri$1.2 billion military pay raise just enacted, mand, trying to eliminate competition in the
cus case. To its shame, the Department and add billions of dollars to the already marketplace, this legislation is intended to
of Justice is not represented in the hearhigh military budget. The Department of provide a profit for the most incompetent
ing. Justice, which opposes the bill along with and most inefficient persons trying to do the Department of Agriculture, has hitherto business under what is supposed to be a free
The negative and, to me, inexplicable said it would cost consumers $1 billion a enterprise system.
position of the Department of Justice in year.
this case is made clear once again in the Nevertheless, and inspite of being turned [From the Kansas City Star, Sept. 24, 1963] reply I have received from Assistant Atdown by three previous Congresses, the bill PRICE-FIXING BILL: BODY BLOW AT CONSUMERS torney General Burke Marshall in reply has been renamed quality stabilization, fair trade having got too bad a name—and
A price-fixing bill by any other name is to my latest inquiry. has been approved by the House Commerce
still a price-fixing bill. Don't be fooled by I am deeply disappointed about the Committee, whence it has gone to the Rules
the euphemism, "quality stabilization bill." continued reluctance of the Department
It is the old fair trade proposal in a new Committee, which has given it rough treat
of Justice to move in the Americus, Ga., false face. Should the pressure groups sucment in the past.
case. Mr. Marshall speaks of "apparent The quality stabilization bill—which has ceed in ramming it through Congress, it
injustice" in the prosecution of these no more connection with quality stabiliza
would cost American consumers billions of tion than the fair trade bills had with fair dollars a year. By act of Congress, you could
four young men on a capital charge. be forced to pay higher retail prices. By act
The trade—is a new and especially oppressive
Georgia solicitor general who form of price fixing. Hitherto the propo
of Congress, the spirit of competition that is brought the charge has now stated in nents of this legislation have been content
the essence of the free enterprise system court, according to the press reports,
could be hamstrung. with suspending the Federal antitrust laws
that: to enable States to adopt price-fixing stat
We recognize the problems of small mer
The basic reason for bringing these charges utes. But most of the resulting State laws
chants who have been behind this drive. were either invalidated or rendered unenAnd there are known evils in the practices
was to deny the defendants, or to ask the forcible by the courts,
court to deny them bond. We were in hopes and the current of reckless price cutting. But this way of
that by holding these men, we would be able bill would bypass the States by making sales approaching the problem strikes at the very
to talk to their lawyers and talk to their peoat less than fixed prices a Federal offense.
heart of free enterprise. Missouri, whose legislature has repeatedly
It strikes us as a matter that you might
ple and convince them that this type of acwant to take up with your Congressman or
tivity * given fair trade proposals short shrift, and
* is not the right way to go about
it. which has never been burdened with a price
Senator. If he is one of the lawmakers who fixing law, would no longer have a choice. wants to slap you with big price increases, His statement is not new, but rather Fair trade, or quality stabilization, is a you ought to know about it. And soon, be
is only confirmation of what had already depression baby and its results are depresfore it is too late.
appeared several times in the press. sive. Its philosophy is that of getting the
The fair trade drive picked up its momenhighest return from a fixed market instead tum in the depression of the 1930's and in
That is, that he deliberately looked
through the lawbooks for a charge on of using price competition to expand the
time all but three of the States followed the market. We hope Congress will dispose conroute. Missouri, to its credit, was one of
which the youths could be held without vincingly of this proposed incubus to the three. It remained a peculiar outpost of
free enterprise and competition. Under the The only change in the Department's weight of court decisions, fair trade laws
position seems to be broadening of the have been falling by the way in several [From the St. Louis Globe-Democrat, Oct. 3,
investigation from charges of police bruStates. Several years ago, the pressures 1963]
tality to the possibility that the purpose shifted to Capitol Hill, and they have been FAIR TRADE FEATHERBEDDING relentless. This year the bill has reached
of the prosecution was to discourage Alarming reports come out of Washington the House Rules Committee with the bless
voter registrations by Negroes. This has that should give consumers of the Nation the ings of the Commerce Committee.
been apparent from the start. Further, shivers. For the first time since the initial In all its simplicity, the newly named it is now 3 months since the initial armeasure was introduced way back in 1914, a quality stabilizatior. bill would permit a rests were made. Surely an investigaso-called “fair trade” bill is given a chance of manufacturer of a brandname or trademark tion could be concluded within that being passed by Congress. commodity to fix the wholesale and retail
period. If it is, a Justice Department study indi- prices on a wide range of items that make
The attitude of the Department recates, it would "cost the American consumer up the greater part of the normal competibillions of dollars and have a powerfully in- tive system. Missouri and all the other 49
mains inexplicable to me in a case which flationary effect." States would be affected. It clearly would
involves constitutional rights and which If it is, the Defense Department estimates be another intrusion of Federal authority
so clearly and deeply affronts the basic it will just about wipe out the benefit of the and, we believe, a totally unwarranted intru- principles of law and justice. $1,200 million pay raise voted for men in the sion.
The text of Mr. Marshall's letter is as armed services for boosting prices in post ex- We do not dismiss lightly the concern for follows: changes.
the small merchant in this country. There The measure which has been approved by is a trend toward bigness but we do not see
DEAR SENATOR CASE: The Attorney General the House Interstate and Foreign Commerce how it would be ended by such a price-fix
has asked that I reply to your letter of OcCommittee isn't being called a “fair trade” ing law. Many small merchants have suc
tober 17, 1963, in which you again request bill by its proponents this time. Perhaps ceeded, and in Missouri, too, despite the
that this Department take action to obtain because that well-worn term has long been absence of a fair trade law. The personal
the release of Donald Harris and three others exposed as a phony. The new label is "qual- services that the small merchant can give,
from jail in Americus, Ga. ity stabilization.” and the friends he can make, are an answer
I can well appreciate your concern with Whatever the name, however, the purpose to bigness. Success depends on principles of
the apparent injustice in the prosecution remains the same. sound business, not on a price-fixing law.
of these four young men on a capital charge. By making it a Federal offense for whole
But the interest of the consumers—of all
There are obstacles, however, to establishing saler or retailer to sell merchandise below Americans-should be paramount. Statis
that the purpose of the prosecution was to the price set by the manufacturer, propo- tically, it has been determined that people
discourage voter registration by Negroes. ments would make price fixing-usually re- in States with still operative fair trade laws
Nonetheless, we have instituted and will congarded as unlawful-mandatory at higher pay from 19 to 27 percent higher prices than
tinue our investigation to determine if such levels. do consumers in States without such laws.
is the case. If the necessary evidence is For whose benefit? Small merchants scat
The President has indicated that he prob
obtained we will, of course, take appropriate tered throughout the Nation.
ably would veto the quality stabilization action in court. No matter how small and inefficient their
bill. It is questionable whether it would I understand that the question of the operation, this law would enable them to
survive a court test. But the place to stop legality of the custody of these four young compete pricewise with the biggest and most
this one is in Congress and the time is now. men has been raised in private litigation successful stores. Dolled up in new wrappings, the quality
instituted on their behalf in the U.S. District The price would remain the same on stabilization bill is still aimed at the pocket- Court for the Middle District of Georgia. I branded goods, whether the merchant sold
books of the American people and at the 10,000 refrigerators, washing machines or basic strength of free enterprise.
would hope that these court proceedings whatnot a year, or only 1.
speedily resolve the legal questions relating A better name for this price-fixing busi
to their custody. ness-as Dr. Joseph M. Klamon, Washington
THE AMERICUS, GA., CASE
Sincerely, University marketing professor and long-time
BURKE MARSHALL, foe of price fixing under any guise, sug
Mr. CASE of New Jersey. Mr. Presi- Assistant Attorney General, Civil Rights gests-is "economic featherbedding." dent, a three judge Federal court is
Mr. President, since I prepared this despite the administration's claims that the Rather than rely upon a tariff on the imstatement, the wires report that the 1871 tax will not interfere with the workings of portation of foreign securities, the effectiveGeorgia insurrection law under which the free market, it is clearly a form of control. ness of which would be contingent upon
Worst of all, there is little evidence that interest-rate differentials, a capital issues the youths have been held so long has
this masked control will work. . It is not the committee should be established. Such a been held unconstitutional by the court. low cost of capital but the ready availability body, consisting of representatives of the This is good news, indeed, but it is no
of funds that attracts foreign borrowers to Treasury, the Federal Reserve Board, and repthanks to the Justice Department. While the United States. Interest costs would be a resentatives of the investment banking inI have not seen the details of the deci- deterrent if they were put up high enough, dustry, could operate in a flexible manner, sion, the case appears far from over. but the administration is not going to an ex- withholding certification from certain forThe Department still has an opportunity, treme. Moreover, it has granted an exemp- eign issues when balance-of-payments presI believe, to redeem itself in the eyes of
tion to Canada, the largest of all foreign bor- sures were severe and relaxing the restraints the American people.
rowers, so that the amount that may be at other times. Policies such as this are pursaved is hardly worth the cost of the new sued in all other financial centers of the tax.
world, and they are well understood in inWith the drain of dollars caused by foreign CAPITAL ISSUES COMMITTEE
vestment-banking circles. borrowing having run at an annual rate of $2 The United States is the only major indusPREFERRED
billion during the first half of the year, the trial country with a free capital market, and Mr. JAVITS. Mr. President, on Octo- administration is right to contemplate spe- interference with its operation should be ber 22 I made extensive remarks con
cific action to curtail the flow. Its proposal, countenanced only if it advances the na
however, would bring new leaks. If controls tional interest. The interest equalization cerning the interest equalization tax, an
are to be used, the one sure method to stop tax would disrupt that market and create administration proposal now before the the drain is to establish a capital issues com- complicated administrative problems withHouse Ways and Means Committee, a mittee, charged with limiting the number
out a reasonable prospect of success. A capiproposal with which I disagree. In the and amount of foreign issues as long as the tal issues committee, combining compulsion course of the same discussion, I have emergency exists. This is the only way im- with moral suasion, would accomplish its outlined in great detail, an alternative mune to loopholes and not involving an arti- objective with a higher degree of certainty which I consider far more desirable and vice well known and trusted by Europeans.
ficial price for funds. It is, moreover, a de- while doing no more-and perhaps less-vioeffective a capital issues committee.
lence to the principle of free markets than
It might be possible to get by without any This committee would be an advisory specification. But if the administration is
an ineffectual tax. committee of banks, investment houses, bent on reducing the drain created by forand brokers around the country. It eign borrowing, it should fashion an effec- THE SITUATION IN BRITISH GUIANA would be established only for the dura- tive tool.
Mr. MCGOVERN. Mr. President, Mr. tion of the emergency and could be dis
Ben Segal, director of the Education and mantled at will. This would not be the [From the Washington Post, Oct. 26, 1963] International Affairs Department of the case with the interest equalization tax,
AN INEFFECTIVE MEASURE
International Union of Electrical, Radio, which would remain in effect for several In July when President Kennedy proposed & Machine Workers, has recently reyears whether needed or not, and could that an interest equalization tax be levied turned from a study mission to British not be abolished until repealed by law- on the purchase of foreign securities by Guiana. Mr. Segal has had a close which, as we know, sometimes takes a residents of the United States, this newslong time. The capital issues committee paper gave the measure its qualified support. working relationship with the trade is a tried and true operation in major So long as the country continues to run
union movement in this country over a
years. He has frequently financial centers abroad, whereas the in
large balance-of-payments deficits, direct period of years.
controls must from time to time be imposed visited British Guiana and has mainterest equalization tax is completely new
in order to reduce outflow of long-term capi- tained a special interest in its affairs. and untried. Such a committee would tal. The alternative would be a restrictive Recently, Mr. Segal authored an artido everything that the proposed tax monetary policy which is clearly at variance cle entitled “British Guiana: A Land in would do and would do it in a much with the domestic goals of high employment Turmoil.” I have found the article to better way and in a more businesslike
and output. But in the course of hearings be a stimulating and perceptive analysis manner, more agreeable to the invest
before the House Ways and Means Commit
tee, it has become apparent that the adminment community of the United States
of contemporary problems and prospects istration's measure cannot expeditiously end in this significant corner of Latin and the world. It not only has widethe capital outfiow.
America. spread support among members of the
Proponents of the tax have argued that it I ask unanimous consent that the artifinancial community, but has also gained would involve a minimum of governmental cle be printed at this point in the RECORD. the editorial support of such outstanding inference with the market mechanism. Pres
There being no objection, the article newspapers as the New York Times. I ident Kennedy, in his message of July 18, said
was ordered to be printed in the RECORD, ask unanimous consent that the editorial
that: from the New York Times of Septem
“Under this alternative, the allocation of as follows: ber 1 and the Washington Post of Oc
savings for investment will continue to be BRITISH GUIANA; A LAND IN TURMOIL
the result of decisions based on market tober 28, be printed in the RECORD at the
(By Ben D. Segal, Director, Education and prices. There will be no limitations on the conclusion of my remarks.
International Affairs Department, IUEmarketings of foreign issues and no govern- AFL-CIO) There being no objection, the edi- mental screening of borrowers. Reliance will
British Guiana is a land in serious trouble torials were ordered to be printed in the be placed on price alone to effect an overall
politically, economically, and racially. This RECORD, as follows: reduction in the outflow of American funds."
strife-torn country- until recently on the
But immediately after these words were [From the New York Times, Sept. 1, 1963]
threshold of independence is split down the uttered, an outcry from the Canadians com
middle between the East Indians and the STOPPING THE DOLLAR DRAIN pelled this Government to exempt them from
Negroes, and this split affects every aspect of The huge outfiow of dollars that took place the provisions of the act. And continuing life in British Guiana. in the first 6 months of this year has re- protests by the Japanese make it perfectly
The recent general strike plus earlier wideportedly been reduced since President Ken- clear that the decisions to include some
spread rioting have divided the country in nedy proposed a tax on American purchases countries and exempt others in yolve acts of two. Outside of Georgetown, where the overof foreign stocks and bonds. This stanching discretion.
whelming population is East Indian, Cheddi of the drain, however, is unlikely to be per- Nor is it by any means certain that the and Janet Jagan, Premier and Minister of manent. Prospective foreign borrowers are tax will in fact result in an equalization of Home Affairs respectively and their political simply holding off, waiting to see whether interest rates. If interest rates in Europe party, the PPP (Peoples' Progressive Party) Congress will approve the administration's rose and foreign securities were offered to have control. Inside Georgetown, where the interest equalization tax. If it does, the Americans at sufficiently large discounts, the majority of the 148,000 population is Negro, hemorrhaging appears bound to resume, for tax might not prove to be an effective deter- the PNC (Peoples' National Congress) led this means of halting the outflow is an in- rent to sales in this country.
by Forbes Burnham, is in control. A third effective tourniquet.
The interest equalization tax is adminis- and smaller party in the field is the United The tax is difficult to reconcile with Presi- tratively complex and needlessly broad in Force, which is headed by Peter d’Aguiar. dent Kennedy's frequent assertions that the its scope. It would be levied upon both This is primarily a conservative businesspresent tax structure must be simplified and new and outstanding foreign issues, when in men's party, consisting mainly of Portuguese trade barriers relaxed. The addition of the fact, it is the new issues largely floated by and mixed racial groups. tax would complicate the tax structure and foreign governments, which have been re- The result is that in British Guiana a would establish a tariff on capital, putting sponsible for most of the portfolio-invest- political stalemate exists. In the last elecinto effect a two-price system for funds. And ment outflow in recent years.
tion, the Jagan's PPP won the election with
42.7 percent of the vote, at the same time of the country's entire trade union member- foreign aid. Yet the Jagan's authoritarian getting 20 seats in the legislature. The ship.
political ideology, the increasingly close poPNC, which received 41 percent of the vote To further illustrate the motives and ob- litical and economic intercourse with Cuba, won only 11 seats, and the United Force jectives of the Jagans, another rival union makes it a decided risk for U.S. financial aswith 16 percent of the vote won 4 seats. has been set up for civil service and Govern- sistance. Long time observers and the trade In effect, this means that because of the ment workers. This, too, is predominantly union leaders believe that the United States sharp racial divisions neither one of the Indian, organized and led by Jagan hench- should make clear that our opposition is major parties has sufficient strength to ef- men who are attempting to force the Indian not to “socialism” (as Jagan is trying to fectively rule the country.
workers out of their own free government get his people to believe), but to the alliThe question has been raised why all this employees' union and into more docile or- ance with Castro and the potential for Latin concern about British Guiana-a country ganizations.
American subversion that this represents. which is thousands of miles away, unde- The racial divisions are very sharply ob- In considering possible solutions and alveloped, and up to now relatively unim
vious in the union picture. While the presi- ternatives to the present chaos in British portant in world events. A glance at the
dent of the Trades Union Council and the Guiana, the people with whom I talked map shows that British Guiana borders two
MPCA, Richard Ishmael, is Indian, the vast agreed that it would be a mistake for the key Latin American countries—Venezuela
majority of TUC leaders are Negro. The British to postpone independence. They felt on the west and Brazil on the south. Eco
TUC's main strength is in Georgetown. The that independence should be linked with nomically as well as politically British Gui
significance of this was manifest during the adequate guarantees and protections for the ana has a crucial position; within the bor
general strike when the overwhelming ma- opposition parties. In effect, this means ders of its 86,000 square miles it is one of jority of Negro workers supported the strike proportional representation which
which would the largest producers of bauxite, essential
and the majority of Indian workers did not. guarantee a vigorous anti-Jagan bloc and to the production of aluminum (and indi
The racial issue is paramount not only in necessitate a coalition government. rectly steel) in the world.
the labor movement but in all other institu- Burnham makes clear that his party, the There are many signs that the country tions. A number of Indian businessmen PNC, is a democratic socialist party. He under the Jagans is moving more and more with whom I talked said that if they had to points out that capitalism, U.S. style, will openly into the Cuba-Communist orbit.
choose between Marxism (referring to Ja- not work in an underdeveloped and undeClose commercial and cultural ties with
gan) and hooliganism (referring to the loot- veloped economy such as British Guiana. Cuba are being extended. The government ing and violence that had taken place in Summing up his party's position, he said: has set up the Guiana Import-Export Corp. Georgetown), they would choose Marxism. “We are Socialists; we are Democrats and (known as Gimpex), as a front for channel
Actually, the records show that there has aim at a system which recognizes in preing goods and money from Cuba and re
been violence on both sides. During the cept and in practice the dignity, worth, and putedly other Communist countries into general strike four East Indians and seven
ability of the ordinary man. We are for a British Guiana. Negroes were killed.
social and political democracy.” A large number of PYO members, the
The opposition parties accused the PPP Small as it is, approximately the size of Jagan party youth group, have been sent on of exploiting the racial issue and cite the
Minnesota, British Guiana today is a firejunkets and on scholarships to Cuba and slogan used by the Jagans among the East
brand, already half ignited. It is a firebrand various Iron Curtain countries. A number Indians in the 1957 elections, “apan jhaat,”
that has the potential to set aflame not only of PPP cabinet members, including Janet which means, “vote for your own." While
Latin America but even the entire globe. Jagan, have made visits to Cuba, Red China, there is no doubt that all political parties
But the Communists show no inclination and other Communist nations. have capitalized on the racial issue, the
to withdraw the torch which may give them Through the Mirror, the PPP daily news- Jagan Party has the most to gain from this
a second outpost in the Western Hemisphere paper, increasingly violent attacks are political perversity. The East Indians have
and a strategic entry into the South Amerlaunched against the United States and a majority, and their birthrate is increasing
ican continent. President Kennedy. Typical was a Mirror at a more rapid rate than all the other raeditorial on August 25, 1963, accusing the cial groups in the country. Out of a total United States of “glaring insincerity," "per- national population of approximately MAJOR SPEECHES DELIVERED BEfidy,” and “dishonesty.” The same editorial 600,000, the East Indians comprise 47.8 per- FORE THE SOUTH DAKOTA FARMstates "that under the aegis of the AFL-CIO cent and the Negroes 32.8 percent of the ERS UNION ANNUAL CONVENTION and with the blessing of the Pentagon, large population. sums of U.S. money have been poured into All this has generated a pervasive atmos
Mr. McGOVERN. Mr. President, on this country to support a political strike, the phere of fear in British Guiana. The In- October 15 the members of the South only purpose of which was to overthrow the
dians fear the Negroes, the Negroes fear the Dakota Farmers Union heard two exceldemocratically elected government of Dr. Indians, and the Portuguese fear both lent addresses delivered by our colleague, Jagan." groups. All those with whom I talked dur
the junior Senator from Missouri [Mr. The country's democratic trade unions are ing a recent visit, were discouraged and
LONG] and by Mr. James Patton, presione of the main hopes for staving off a to- pessimistic about any possible resolution of talitarian state in British Guiana. Long
dent of the National Farmers Union. this deep racial schism. When I interidentified with the anti-Communist ICFTU viewed Forbes Burnham, the PNC head and
Senator LONG devoted the major por(International Confederation of Free Trade opposition leader, he expressed deep con
tion of his address to the domestic probUnions), they have been in opposition to the cern over this racial division. As he put lems of American agriculture. Mr. PatJagan government because they cannot for- it: “We have to find ways and means of co- ton centered his discussion on the relaget the past efforts of the Jagans to impose existence or we will have no existence." He tionship of agriculture to our position in restraints designed to weaken the labor believes that proportional representation is world affairs. I think that Members of movement. Earlier this year when the gov- essential, and argued eloquently that withernment sought to enact legislation imposing out proportional representation, the PPP will
Congress will find these two addresses government control over organized labor, the win the election, as it did 2 years ago, and
both perceptive and instructive. unions conducted a successful 80-day gen- after independence from Britain is consum
I ask unanimous consent that they be eral strike. mated will proceed to turn the country into
printed at this point in the RECORD. Determined to snuff out their major anti- a Communist and totalitarian state.
There being no objection, the addresses Communist opposition, the Jagans are now Unemployment which has hovered around were ordered to be printed in the RECORD, accelerating their efforts to take over the 20 percent for many years is on the in- as follows: trade union movement by setting up rival crease as a result of recent developments. unions. The Guiana Agriculture Workers Conservative estimates indicate that one out
NOTHING FOREIGN ABOUT FOREIGN POLICY Union, which is headed by a Jagan PPP of every four or five workers is unemployed
(An address by James G. Patton, president, member of the legislature, has been set up and one out of nine is underemployed. In National Farmers Union, to the annual in the sugar industry to destroy the MPCA contrast to my previous visits, I heard no
convention, South Dakota Farmers Union, (Man-Power Citizens' Association), the talk about ways and means of attracting new
Huron, S. Dak., October 15, 1963) established anti-Communist union in the industry. Instead, the talk was whether A speech on foreign policy connotes, to field.
present industries could be kept in the coun- most people, something alien, and they preThis rival union has been organized on an try. It is an open secret that money is be- pare themselves to be disinterested, unconoutright racial and political basis. Since the ing sent out of the country, some businesses cerned. My friends, let me say to you quite large majority of workers on the sugar es- have closed and a number of businessmen frankly that there is nothing foreign about tates are Indian, the Jagan union is making and experts have left. A saving feature in foreign policy. considerable headway. A recent report the economic situation is that sugar, the From the founding of this country-from shows that the MPCA has lost more than 20 main prop of the economy, is having an ex- the years of President Washington to the percent of its membership. This struggle
This struggle ceptionally good year because of the U.S. Second World War—to the years of Presiamong the sugar workers is crucial since boycott of Cuba, reduced crops in other sug- dent Roosevelt, this Nation lived an isolated cane growing and processing is the major gar-producing countries, and the high world existence. Through most of our history we industry and the employees form the larg- market price.
were an unalined, uncommitted, neutralist est union in the country. The MPCA mem- British Guiana is a modern day national country. We were unalined by geography, bership of 20,000 represents over 40 percent tragedy. Here is a country that badly needs úncommitted by doubt, and neutral by desire. We had felt we could live behind our "not only be abandoning America's influence against malnutrition, hunger, and starvaMonroe Doctrine and within our two oceans in the world, (but) we would be inviting tion. in peace and with plenty, comfortably away a Communist expansion which every com- Briefly, my proposal for a world land bank from the rest of the world.
munist power would so greatly welcome.” involves the financial development, reclamaI doubt that very few of you here tonight I have talked of foreign policy in only one tion, consolidation, and cultivation of land do not recall such an educational upbring- sense thus far and could continue on the of small or family sized farmers in all develing. But the day of the covered wagon and same theme by discussing U.S. efforts in Laos oping countries to increase the agricultural model T, and all they meant, is gone for- and Cuba, Congo, and Berlin. But, here production of such nations. ever. The end of isolationism was the in- again, because of the energetic, diplomatic, To begin with, I suggest that the United escapable result of economic growth, the and farsighted policies of our current ad- Nations special fund should allocate $250,000 inevitable result of cultural maturity and, ministration, war clouds have dissipated and for a worldwide survey to appraise country unfortunately, the unavoidable result of peace is continuing to break out.
by country where needed, the costs of develmilitary expansion.
AGRICULTURE AND FOREIGN POLICY
oping new lands and new agricultural instiOBLIGATION OF WORLD INVOLVEMENT
tutions to accomplish such a program. It I, therefore, want to spend the remainder
is a fact that more often than not developWe have come a long way in adopting in a of my time relating our agricultural abun.
ing nations have such limited credit and short time the obligation of world involve- dance and knowledge to our foreign policy.
financial resources that land reform and ment. And the strain of involvement, In this spectrum we have made a beginning, but there is much left to be done. The im
the development of family farm agriculture whether displayed by forced disinterest or
cannot be adequately funded. compelled unconcernment–is a strain which portant thing is that we have started.
Once the land bank is established it could must be healed and quickly forgotten if we The challenge which faces us as the are to succeed and survive in the real world leader of the free world to abolish hunger
be capitalized from the sale of subscriptions
to creditor nations of the world, as well as of today.
and poverty is truly magnanimous and we I repeat—there is nothing foreign about have no choice. Two out of three people
bonds sold locally in those developing counin the world today fight a constant and mar
tries receiving credit benefits of the bank. foreign policy.
I spoke of this possibility several months Recognizing fully the extent of our in- ginal battle against poverty, ill health, igvolvement in world politics, what course to norance and hunger.
ago when I attended the inauguration of the
Peruvian President and just 2 weeks ago national security, what path to peace and I indicated we have only started. The next
received a letter from that nation's First plenty do we take? The basic policy, main- steps should include expansion of the food
Vice President in which he said, and I quote: tained since the mushroom cloud rose over for-peace program, formation of a world
“We consider the creation of this type of Hiroshima, that the United States is best land bank, and stimulation of our exportserved by maintaining a world of diversity trade program.
bank a positive step toward the solution of in which no power or group of powers can
Public Law 480, the food-for-peace pro
agrarian problems that presently face Peru
and the majority of Latin American counthreaten our security, is the best policy. We gram, is an imaginative and successful start
tries. can ill afford to have the balance of power in attempting to narrow the gap between
"We understand that the bank would have tip in the wrong direction. abundance and starvation. Much credit for
sufficient financial resources to expropriate Here and now, I want it to be crystal clear this progress must go to your able, earnest
with prompt and adequate payment the large that such a policy and situation can be junior Senator, GEORGE MCGOVERN who, as
landed estates which are inefficiently farmed maintained with a reduction of 20 percent in President Kennedy's initial director of the our immense Military Establishment. I supWhite House Office of Food for Peace, estab
or organized in such a way as to avoid social
obligations and will provide financial reported with all my energy the signing and lished by the second Executive order of his
sources necessary to small farmers in order ratification of the nuclear test ban treaty administration, made this the humanitarian
to develop their production, acquire seeds, and believe the year 1963 will be historic in program it is today. Through the donation
equipment, fertilizers, and the necessary that the pages of history will show this event phases of the food-for-peace program we began the world's march to peace and freeare not only helping to feed more than 92
technical assistance. dom. million of the world's hungry people, but
“The Government of Peru, aware of the
significance of this project, gladly offers its Some, especially those who can be cata- are waging war on economic backwardness
assistance to either the United Nations or loged as belonging to the radical right, and developing future commercial markets
the Freedom From Hunger Foundation, to opposed ratification of this treaty. Why? for our agricultural products. Had they bothered to look at the true de
Since Public Law 480 was enacted in 1954,
conduct a feasibility study of the world land structive force of the atom today and what we have moved more than 100 million tons
bank's operation in Peru, as one of two pilot we and the Soviet Union could do to each
countries to be selected, and therefore agrees of agricultural commodities overseas-equivother and the world in 1 hour or 1 day?
that President Fernando Belaunde's proposal alent to three 10,000-ton ships a day, every
of creating an inter-American institution for nuclear holocaust could remove 300 million day for 844 years. Not only did this save men, women, and children from the face of us $667 million in storage costs last year
territorial credit be substituted by a world
organization destined to achieve the same the earth in 24 hours. alone, but it paid 1 year's foreign U.S. bills
aims on a much vaster scale. We feel sinSenator BARRY GOLDWATER, of Arizona, who estimated to be $271 million.
As successful as Public Law 480 has been,
cerely that this is the country best suited will let us know of his presidential aspira
for this study, as a thoroughgoing agrarian tions in January, was one of the handful I believe we can be even more effective by
reform law has been presented to Congress of Senators who voted against banning nu- extending and expanding the overall con
and has the support of the organizations necclear tests. His opposition surprised no one, cept to—
essary to execute the provisions of this reand, so far as I was able to observe, persuaded 1. Make available applicable farm tools,
form, even though they unfortunately lack no one. But it was necessary for him to equipment, and machinery to the countries
sufficient resources to carry these out with oppose the treaty since he is committed to a desperately trying to get over the nutrition the speed demanded by the country's urgent policy of initiating the use of force in the threshold. This equipment could be sup
social needs. struggle with communism. Let me read plied as part of the credit pattern in already
“In Peru the poverty of the people and the certain key sentences from the concluding developing land reform programs;
backwardness of the small farmers and chapter of Senator GOLDWATER's book en- 2. Provide developing countries with heavy cattle raisers are due to the following causes: titled, “The Conscience of a Conservative”: machinery which can perform the gigantic
machinery which can perform the gigantic Low degree of productivity, defective dis“Our strategy must be primarily offensive tasks of earth moving, dam construction, and
tribution of property, unsatisfactory tenancy in nature * * *
we must always try to en- massive lifting Projects in housing, land of land and lack of arable land in relation to gage the enemy at times and places, and clearance, flood control, development of
the population. with weapons, of our own choosing.
power resources and many others could be “Our small farmers need lands, equipment, We should withdraw diplomatic recognition multiplied many times if the necessary heavy fertilizers, technical assistance and the from all Communist governments including equipment could be made available;
credit necessary to produce more and raise that of the Soviet Union. * * * We must- 3. Provide machine tools by means of their standard of living. ourselves—be prepared to undertake military which their own newly created industrial “It is, therefore, evident that the Bank operations against vulnerable Communist and machinery plants could begin to meet will permit us to make a reality of agrarian regimes." their own tooling needs;
reform, along democratic lines with a view Now I am not here to discuss Senator 4. Provide the amounts of steel necessary to greater production." GOLDWATER's views, opinions and candidacy, to service these beginning self-help plants I consider the support of President if he is to be a candidate. I am, however, and equipment. It is significant that the Belaunde a major breakthrough to the realgoing to make this blank statement. It is U.S. steel companies have operated profit- ization of this goal. not possible to adopt such all or nothing ably at a far greater reduced capacity than I believe a word is apropos here about the black and white foreign policies without our American agricultural plant during the world food program, administered by the making our interests subservient to our an- past 10 years.
Food and Agricultural Organization of the noyances. If we were to call for the resump- Another point to consider before we leave United Nations. This program, now on an tion of atmospheric nuclear testing, termi- the food-for-peace concept is that this type experimental basis, should be expanded and nate foreign aid and assistance to needy na- of program should be made multilateral. made permanent. The United States is suptions, resign from the United Nations, we Let all nations who are producing more porting, with food and funds, this $100 milwould, in the words of President Kennedy, than they are consuming aid in the battle lion, 3-year aid program as well as the FAO's
freedom-from-hunger campaign which is cur- The United States must move forward is the public image of the farmer. The man rently carrying on extensive technical assist- vigorously to turn purchasing power into
vigorously to turn purchasing power into who was once hailed as the benefactor of ance work in some 100 countries.
purchases and I mean the world over. We man, is now portrayed by uninformed and Another item not to be overlooked is that should sell wheat to any country that can vociferous critics as a n'er-do-well who the lessons learned by our farmers and those pay for it. Long before this Russian wheat feeds in the trough of public subsidies. Such of other advanced nations must increasingly thing came up I advocated a series of inter- an outrageous injustice makes anyone inbe applier to the problems of primary pro- national trade agreements—and still do terested in agriculture see red. ducers of the less-advantaged areas of the for all international commodities. We have But change and especially the kind of world. It is to such farmers that free farm a workable, reasonable International Wheat rapid transition that has caught up the farmorganizations, both general and cooperative, Agreement which will help keep the domes- er—often creates misunderstanding. Even offer the best hope.
tic price for wheat next year higher than it the farmer finds it difficult to adjust to The general farm organizations and farmer would be otherwise. We need international them. So it is little wonder that his city cooperatives share equally the basic prob- payments for feed grains and cotton as well neighbors, who more often than not get only lem of assisting farm families to receive an as other commodities that enter importantly a surface view of the problem compounded adequate income for their effort and effi- into world trade.
by false and misleading propaganda, can ciency. In pursuit of a better income the Foreign trade is crucial to U.S. agriculture. jump to the wrong conclusion. American family farmer has found his inter- That is why I support economic integration Realizing that our public image suffers ests are best served in a cooperative move- such as is happening in the Common Mar- from lack of information, we as farmers can ment. In recognition of this farmer coopera- ket, as well as common banks, development
ket, as well as common banks, development do most to combat it by forcefully painting tive role our Government has encouraged groups, etc. If we want a world of peace the true picture. Railing against our critics producer effort to establish and operate co- and plenty we have no other choice but to serves little purpose in the long run. Fightoperatives. Such lessons should be applied concern ourselves with bettering the lot of ing fire with fire is a precarious business. in the world's developing nations.
the two-thirds of the people on this shrink- Bridging the understanding gap will best be A firm step in this direction concluded just ing planet for whom a better life is possible done by telling the true story of American last week when 59 Latin American farm and desirable.
agriculture. leaders concluded a 6-month study of our If we strive to plant good and healthy And what a story it is. agricultural system and the way we use or- seeds, we shall reap a harvest of peace and It has been the farmer who has provided ganizations and cooperatives to solve rural- security in the world. If we miss the oppor- the raw materials to forge a new nation from farm problems. As many of you know, the tunity; if we miss the planting season in the the wilderness. He financed and gave reaheart of this program was the 412 months new and developing nations of the world; if son to the westward expansion of the railthese men spent living on farms—14 here we neglect the stomachs and minds of the roads, without which we would still be hudon South Dakota family farms. This people- world's struggling population, we will reap dled on the Atlantic seaboard. Your State to-people aproach which, incidentally, was a far different harvest-one of discontent, and mine would be the uncharted frontiers. conducted by National Farmers Union, is an despair and perhaps rebellion. Should we It was the farm that released the manpower unparalleled example of the communication take that chance?
needed to run the factories, develop the prodneeded to assist developing nations. Your
ucts and perform the services in such a great outstanding president, Ben Radcliffe, and SPEECH BY SENATOR EDWARD V. LONG, DEMO- demand by our modern society. Miss Arlene Schley, your director of educa- CRAT, OF MISSOURI, BEFORE THE SOUTH The headline story that has been in many tion, who spent several weeks in Latin DAKOTA FARMERS UNION, HURON, S. DAK., of the daily papers and on radio and televiAmerica helping formulate this program, OCTOBER 15, 1963
sion is that the Department of Agriculture's should be commended for their excellent
My good friends and fellow farmers, despite budget is now about $612 billion. But the work.
the notion apparently held by a good many real meat behind that story is that only When I say there is nothing foreign about
people in the country-some of whom, un- about a third of that goes for direct farm foreign policy, this especially holds true for
fortunately, are in the Congress—the family programs. Four billion dollars of it goes our foreign aid program which you know is farm is not a deadweight on the back of our
for food distribution, foreign aid, for puba key factor in our foreign policy. Few, if
national economy. That is an undeserved lic services, such as meat inspection and any, realize that 80 percent of our foreign reputation. It is the outcropping of a mas- pest control, Agriculture's budget also furaid dollars are spent right here in our own sive propaganda campaign designed to sell nishes the funds to maintain, improve and United States. The Agency for Interna- the idea that the only decent and efficient conserve our forests and their recreational tional Development has reported that during way to operate a farm is from behind a desk facilities, as well as to carry out the research the first 7 months of this year 25 States re- on Wall Street. But, my friends, on Wall that has been, and is of such great benefit ceived procurement orders in excess of $1 Street, the only importance of changing sea- to business and industry. million-each under the U.S. foreign aid sons is that it is time to clip another batch Among our problems, and possibly the program.
of quarterly divided coupons. The "green" greatest at this time, is the challenge of Private firms in 47 of the 50 States share that inspires interest there is the “long abundance. Yet, what is a problem to us in $175,398,616 worth of orders recorded green.” Of course, that inspires interest would be a blessing to any other nation of during the period from January through among the farmers as well, but it has been the world. Today, we remain the only naJuly for 1963. The total represents procure- all too long since much of that has been seen tion on the face of the earth whose agriment directly traceable to the State of pro- on the farm.
culture meets—and exceeds—its demands. duction.
Such a distorted picture of the farmer Two years ago, I was on a Senate assignThe orders cover a wide variety of indus- would be easily formed if that was all you ment overseas that took me to Asia and the trial and agricultural products and mate- heard. Perhaps we farmers have been too Near East. There, millions upon millions of rials purchased by developing countries for busy just fighting for survival to do a proper people continue to starve, or at best subsist, use in particular projects or promoting eco- public relations job-one that throws true generation after generation. I saw some of nomic growth. light on the family farm.
these teeming millions. The swollen bellies I am sure it will particularly interest you It has been a long, long time since we have of children who, from the instant of birth, to know that your own State of South Da- been in a position to tell our story as well have been hungry, and who have little hope kota is among those States filling procure- as we are today. There can be little doubt of ever knowing the satisfaction and security ment orders through the foreign aid pro- about the dedication of Secretary of Agri- of a full meal. The strained and bent bodies gram. So you see, 80 percent of the foreign culture Orville L. Freeman to fighting the of men and women, old long before their aid program is not foreign, but is dollars
congressional battles with the same Marine years, from the never-ending effort to scratch spent right here at home.
determination that was his strength on the out a few mouthfuls from an arid and hosThe Trade Expansion Act of 1962 gives bloody beaches and in the steaming jungles tile land. These are people who will know the United States broad authority to de- of Bougainville. I think that his recognition hunger all their lives. This is their way of velop liberalized trade in all expanses, in- of the fact that there is a great lack of un- life. This sort of existence isn't confined to cluding agriculture, and we could and should derstanding between city and farm, along Asia and the Near East. It prevails in virdo better. Some would comment that our with meaningful actions to bridge that gap, tually every part of the globe. This abuntotal exports, including farm commodities, will certainly be hallmarks of his services as dance is a problem for us to solve, but beof $21.6 million in 1962 was 17 percent of the the chief agricultural officer of this admin- lieve me, it is also a blessing. free world total—the highest percentage- istration. He and his Department are pull- Are we, the only adequately fed people in but actually we exported only 4 percent of ing out all stops to see that the true picture today's world, going to throw up our hands our total gross national product-well down of American agriculture gets through to New with the cry of despair that we can't solve toward the lowest percentage.
York's Times Square; to Chicago's Loop, and our problem of abundance? Certainly not. Nor are we energetic from the standpoint to the mushrooming suburbias that now dot Already, a direct assault on the problem has of export growth rate. Free world exports our Nation. The story needs desperately to started—and God willing, it will continue increased 40 percent, compared with our 21 be told in these places, for they are the mar- to gather strength and momentum. percent between 1958 and 1962. At the same kets for the products of our labors—the crops Oversupply in feed grains has vexed Contime Western Europe logged a 41-percent in- we raise.
gress for years. Three years ago, the market crease and Japan increased a staggering 70 American agriculture is in the midst of one was glutted with a record 85 million tons of percent-obviously indicating we are nowhere of the most trying periods of change any feed grains.' There were 2 billion bushels near keeping pace.
group has ever experienced. Changing also of corn alone. Storage bins were creaking