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industrial economists nor are they heart- kets and raw materials. France, ready ening to the American worker.

After all the billions of dollars, the technological skills, production tools, and business methods we have contributed to Western Europe, we now learn their combined sum total of industrial expansion has far outgrown all prewar records. To encourage this high standard of industrial productivity, the United States continues the international export of dollars and their distribution through channels that make it easier for Europe to get her much needed raw materials.

Since these dollars do not go far enough to sustain the purchasing power of most of these raw-material-producing countries to allow them to absorb Europe's surplus of industrial output, we Americans are now being asked to import these surpluses. We are urged to share our dollars in the market place with importers and dealers in merchandise competing with the products of our own factories, upon whose labor and price standards we depend for our economic welfare. A visit to most any retail establishment today will convince one of this fact.

Europe will not much longer need our machine tools, heavy equipment, and consumer goods, now that they have attained the capacity to produce their own. But they will surely need to find a market for their surplus, which now promises to be far in excess of our ability to absorb. To attempt to do this would unduly disturb our labor and industry, causing widespread unemployment.

Europe's trade has always depended upon interchange with colonial dependencies outside of Europe and in Asia. This is her source of raw materials and, at the same time, the outlet for her finished goods. North America cannot fill the gap while maintaining its own economy.

If we accept the foregoing thesis and acknowledge our inability to keep up the bolstering of Europe's industrial capacity, then we must recognize one important principle, namely, without our dollars and economic aid Western Europe will be forced to look elsewhere for markets.

This is being done already. It can be readily seen in the recent action of the British Government in refusing to further cooperate in maintaining the world price of wheat. It is a known fact that Great Britain is now in the process of negotiating with the Soviet Government for the delivery of wheat in exchange for her own manufactured products. While Great Britain has pretended to deny her trade with Communist China, we have seen frequent instances of the promise being broken. It is very plain that England is now most anxious to establish trade relations with Communist China, although her diplomatic representatives are not accepted by the Peiping Government.

At the present time Belgium and Holland are able to sustain a fair balance of trade because of the opportunity they have in Africa and other colonial areas. West Germany in its industrial recovery is already bursting at the seams, reaching beyond her borders in search of mar

to desert Indochina, is limited to Northern and Central Africa. Italy, overcrowded and half Communist, must find outlets or suffer internal collapse.

The one big question remains: What can America do toward evolving a plan that will permit Germany, Western Europe, and Japan to engage in trade with countries now unfriendly with us without encouraging these nations to become incorporated with and taken into the orbit of Russian and Asian communism?

It must be evident that to survive these nations, openly or clandestinely, will be compelled to find trade where trade is available.

The United States still sets the pace in industrial productivity, surpassing both in quantity and quality any other nation of the world. Our ability to compete with other industrial nations still gives us a great advantage in world trade.

While our South American neighbors, with their great wealth of raw materials and food products, find their best outlets in Europe, yet the products of American factories still appeal to them. If we adopt more aggressive salesmanship policies, seeking to better

understand the Latin people, deal with them as equals and apply more lenient credit policies, as has been the custom of the European nations, we can meet competition and greatly strengthen economic ties that will stabilize their governmental systems.

Western Europe and Japan must find outlets elsewhere than in America. How, then, can we find a formula that will freely in trade with nations woven into permit these nations to engage more freely in trade with nations woven into the Communist net of Russian influence? It is perhaps time that we consent to more freedom of trade and barter between our allies and the hungry parts of the world anxious to break their iron curtain barriers.

In spite of our dislike for socialism, we find ourselves engulfed in the rapid transition toward ever increasing liberalization. This trend is apparent throughout the world where nations are not subject to the rules of arbitrary dictator

ship.

We have been engaged in a cold war, predicated mainly on differing political ideologies, convinced of their incompatability. In doing so, we created commercial barriers that threw world trade out of balance. World peace, if and when it comes, will depend upon our success in reestablishing this trade balance. Political ideologies and nationalistic ambitions will prevail throughout time. Our big job is to learn to live with the world as it is and accept changes other nations undergo, which changes are, in most instances, beyond our control. But, at the same time, we must not permit our own economy to suffer an internal breakdown.

STUDY ON "PERMIT COMMUNISTCONSPIRATORS TO BE TEACH

ERS?"

Mr. SCHENCK. Mr. Speaker, by direction of the Committee on House Administration, I call up a privileged resolution (H. Res. 201) and ask for its immediate consideration.

The Clerk read the resolution, as follows:

Resolved, That the study on the subject of Communists as teachers, entitled "Permit Communist-Conspirators To Be Teachers?" and a statement by the members of the Association of American Universities as to the obligations and responsibilities of university faculties be printed as a House document.

With the following committee amendment:

On line 6, after the word "document", add semicolon and insert, "and that 25,000 additional copies be printed for the use of the Members of the House of Representatives."

The amendment was agreed to.

motion to reconsider was laid on the The resolution was agreed to, and a table.

SOVIET SCHEDULE OF WAR IN 1955

Mr. SCHENCK. Mr. Speaker, by direction of the Committee on House Administration, I call up a resolution (H. Res. 312) and ask for its immediate consideration.

The Clerk read the resolution, as follows:

Resolved, That there be printed 20,000 additional copies of the publication of the Committee on Un-American Activities entitled "Soviet Schedule for War, 1955," for the use of the Committee on Un-American Activities.

With the following committee amendment:

On line 4, delete the entire line and insert the following: "5,000 copies for the use of the Committee on Un-American Activities and 15,000 copies to be prorated to the Members of the House for a period of 90 days, after which time the unused balance shall revert to the Committee on UnAmerican Activities."

The amendment was agreed to.

The resolution was agreed to, and a motion to reconsider was laid on the table.

Mr. SCHENCK. Mr. Speaker, in connection with these three resolutions, I should like to say to the Members of the copies to be placed to the credit of the House that provision is made for these

Members on a prorated basis for a period of 90 days, after which the unused copies revert to the committee for its use.

PROVIDING FOR PUBLICATION OF

CONSTITUTION AS HOUSE DOCU-
MENT (H. DOC. NO. 211)

Mr. SCHENCK. Mr. Speaker, by direction of the Committee on House Administration, I offer a privileged resolution (H. Res. 252) and ask for its immediate consideration.

The Clerk read the resolution, as follows:

Resolved, That there is hereby authorized to be printed as a House document the Constitution of the United States, with an index and notes regarding proposed amendments prepared by Representative CHAUNCEY W. REED, of Illinois.

With the following committee amendment:

Line 4, after the word "Illinois", insert the following: "and that 16,500 additional copies be printed and prorated to the Members of the House of Representatives for a period of

90 days, after which time the unused balance shall revert to the Committee on the Judiciary."

Mr. PATMAN. Mr. Speaker, will the gentleman yield for a question?

Mr. SCHENCK. I yield to the gentleman from Texas.

Mr. PATMAN. I should like to know what kind of index is being used. Is it an index heretofore prepared by someone; and if so, by whom?

Mr. SCHENCK. This has been prepared by our colleague, the chairman of the Committee on the Judiciary, the gentleman from Illinois [Mr REED]. It is a complete index which he has prepared, and he includes therein a summary of those amendments to the Constitution which have been approved by the Congress but not yet ratified by the necessary number of State legislatures."

Mr. PATMAN. Then the document will just include the Constitution and an index, plus the explanation to which the gentleman has referred?

Mr. SCHENCK. Plus the reference to these amendments and an explanation. Mr. PATMAN. I think that would be a very fine document.

The SPEAKER. The question is on the committee amendment.

The committee amendment was agreed to.

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PROVIDING FOR PUBLICATION OF ARTICLE, HOW OUR LAWS ARE MADE, AS HOUSE DOCUMENT (H. DOC. NO. 210)

Mr. SCHENCK. Mr. Speaker, by direction of the Committee on House Administration, I offer a privileged resolution (H. Res. 251) and ask for its immediate consideration.

The Clerk read the resolution, as follows:

Resolved, That, with the permission of the copyright owners, there is hereby ordered to be printed as a House document the article, How Our Laws Are Made, by Charles J. Zinn, law revision counsel of the Committee on the Judiciary, which appeared in the United States Code Congressional and Administrative Service, dated April 5, 1952, published by West Publishing Co. and Edward Thompson Co., including a chapter on conference procedure which appeared in the American Bar Association Journal, dated October 1952.

With the following committee amendment:

Line 10, after "1952”, insert the following: "and that 16,500 additional copies be printed and prorated to the Members of the House of Representatives for a period of 90 days, after which time the unused balance shall

revert to the Committee on the Judiciary." The committee amendment was agreed to.

Mr. RAYBURN. Mr. Speaker, will the gentleman yield?

Mr. SCHENCK. I yield to the distinguished minority leader.

Mr. RAYBURN. May I ask the gentleman to state for the record who Mr. Zinn, the author is, and what is his background?

Mr. SCHENCK. I should like to say I should like to say to the distinguished gentleman from Texas that Mr. Zinn is the law revision counsel of the Committee on the Judiciary and has been such for a good many years. He has had a considerable amount of experience. This particular article has been published and is highly regarded as being one of the best explanations of legislative procedure in the Government that we have had.

Mr. RAYBURN. I know the membership are glad to know that the gentle man concerned has had considerable experience with that great and important committee of the House.

The SPEAKER. The question is on the resolution.

The resolution was agreed to; and a motion to reconsider was laid on the table.

ADEQUATE PURCHASING POWER

The SPEAKER. Under the previous order of the House, the gentleman from Texas [Mr. PATMAN] is recognized for Texas [Mr. PATMAN] is recognized for 20 minutes.

Mr. PATMAN. Mr. Speaker, I ask

unanimous consent to revise and extend my remarks and include extraneous matter.

The SPEAKER. Is there objection to the request of the gentleman from Texas?

There was no objection. PURCHASING POWER NECESSARY FOR PROSPERITY Mr. PATMAN. Mr. Speaker, if the people have adequate purchasing power the country is prosperous; if the people do not have adequate purchasing power the country is in a depression. Our main reason therefore for trying to keep our country on an even keel now keep our country on an even keel now is a selfish reason in that we want continued purchasing power among the masses of the people which will permit the country to go on on an even keel and continue the prosperous times we have enjoyed for the past years.

The wage earners and the farmers represent the two largest groups in the purchasing power field, we will call it, and they represent enough or a sufficient amount of the purchasing power of this country that if either the farmers or the wage earners suffer by reason of a lack of purchasing power the entire Nation suffers. In the recent past the wage earners have not suffered so much from the lack of purchasing power; in fact, they have enjoyed prosperity, and we want them to continue to enjoy prosperity. But this other group who represent the farmers have been suffering from a depressed depressed condition. That depressed condition started not 1 month ago or 2 months ago, but it really started more than 2 years ago. It is true that it did not get into high gear 2 years ago; it just got started, we will say, in low gear and coasted along and then after the election last fall it seemed to get into second gear, and after Mr. Eisenhower was inaugurated it seemed to get into high gear. So that policy I consider is a ruinous policy. I do not think there should be any politics in this. I think the question of the continued security and prosperity of our country should be

at least on a bipartisan basis, certainly not political; so I want to recite just a little bit, if I may, how this lack of purchasing power got started among the farmers.

Mr. Marriner Eccles was Chairman of the Federal Reserve Board; and in 1947 in July, Mr. Eccles as Chairman of the Board, convinced the Board that the pattern of interest rates which was very low and should have been low because this big national debt was created on lowpriced dollars or on what some people call cheap dollars; therefore we should have low-interest rates to carry the cheap dollars, so at that time we had a pattern of interest rates. On bills we paid three-eighths of 1 percent; on certificates we paid seven-eighths of 1 percent; and if they were offered by the Treasury at those rates and if they were not accepted by the commercial banks or the private investors the Federal Reserve banks took them, which they had a right to do, and saved the Government a lot of money because interest rates were low. But Mr. Eccles decided he would break that pattern and in July 1947, the pattern was broken and they took that ceiling off. These interest

rates began to climb on these short-term securities, but they did not climb too ment of Mr. Eccles came up and Mr. Trumuch. Then the question of reappointman, the President at that time, would not reappoint Mr. Eccles. Mr. Eccles had some ideas about why he was not reappointed which I think were wrong. He seemed to overlook the fact that President Truman resented his attitude and actions on interest rates.

Mr.

Mr. HOFFMAN of Michigan. Speaker, will the gentleman yield? Mr. PATMAN. I yield to the gentleman from Michigan.

The

Mr. HOFFMAN of Michigan. gentleman has a vast knowledge on this question. I am deeply concerned about why my dollars do not buy more than they do. Will the gentleman get to that?

Mr. PATMAN. They buy as much as the economy will allow at this time and while they do not buy as much of certain things that the gentleman would like to have they will at least pay a dollar on the debts. Every dollar you have is worth 100 cents on the debts that you owe or that the Government owes.

Mr. HOFFMAN of Michigan. I do not owe anyone. I am not interested in that angle.

Mr. PATMAN. The gentleman has to pay taxes in order to pay the Government debt.

Mr. HOFFMAN of Michigan. I am trying to get some personal help. I am not joking about this matter. Every time I take a 10-dollar bill and go to the grocery store I get a little sack and I have to go back a couple of days later. How can I get out of getting so little for the dollar I spend?

Mr. PATMAN. I do not want to make the dollar worth any more right now, but I do think the dollars should be stabilized where it is for the present and not allowed to become any cheaper.

Mr. HOFFMAN of Michigan. Can the gentleman figure out some way that I can get more dollars, then?

Mr. PATMAN. If you make the dollar what it was in 1939 you will double the value of all the debts.

Let us analyze for a moment the effect it will have. The national debt is fect it will have. The national debt is approximately $265 billion. If you raise Mr. PRICE. Mr. Speaker, will the the interest rate 1 percent, that means gentleman yield? we will have to raise $2,650,000,000 extra

Mr. PATMAN. I yield to the gentle- every year just to pay that increase of man from Illinois.

Mr. PRICE. I am glad the gentleman from Michigan made the remark that he was not joking about this matter because I think the people of the country are beginning to realize that this hard money policy is not a joking proposition. I invite the gentleman's attention to a newsletter of the National Home Builders Association of the United States dated July 13 that came to our desks this morning, in which they express the fear that in the field of home building construction the home builders should be extremely cautious in their home construction in the next 6 months. They make the direct statement that the present lull in home construction is due to the hard money policy.

HARD-MONEY, HIGH-INTEREST, HARD-TIMES POLICY

Mr. PATMAN. The hard money policy, the hard-money, high-interest, hard-times policy is having a tremendous effect upon the economy of this Nation today, especially as it affects the farmers. The gentleman from Michigan mentioned the price of food. Well, the farmers are not getting those prices that the gentleman mentions. The farmers are getting less than they have received

in a long time.

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Mr. PATMAN. That is right.

Mr. HOFFMAN of Michigan. The situation is getting so that that income will not buy me enough to eat and wear. What is wrong and how can we fix that? That is what I want to know.

Mr. PATMAN. Well, the income that the gentleman mentions, I presume, is sufficient to give him a living or he would not be staying on here.

Mr. HOFFMAN of Michigan. I do not know where I could make any more. I am not one of those Congressmen who

can make millions on the outside.

Mr. PATMAN. Anyway, that particular point is not one that I could clarify for the gentleman, I am sure, but I can tell him some of the reasons why we are facing a much worse condition if there is not a change in the present hard-money, high-interest, hard-times policy.

Mr. HOFFMAN of Michigan. What does the gentleman mean by "hard money?" I have seen that in the papers. Mr. PATMAN. Hard to get money. Mr. HOFFMAN of Michigan. I know all about that.

Mr. PATMAN. That is coming on right now, just like the gentleman from Illinois mentioned.

Mr. PRICE. I would like to say that the gentleman can claim no authorship of the phrase "hard to get."

That is

coined in this newsletter of the National Home Builders Association of the United States. In their newsletter they express concern and say that money is hard to get.

Mr. PATMAN. The interest rates will have a tremendous effect on this country.

1 percent in interest rates on Federal debt alone. That means everybody will debt alone. That means everybody will have to pay that. As the Federal interhave to pay that. As the Federal interest rate goes up, all other interest rates go up. Tax-exempt securities of States, counties, cities, and political subdivicounties, cities, and political subdivisions, and everyone of them will have to provide higher interest rates. And as the interest rates get high as they are now, there is a flight from Government bonds and other taxable securities into nontaxable securities. So, with high interest rates forcing up the tax-exempt terest rates forcing up the tax-exempt security rate the big wealth of this country will have an incentive to leave the taxable securities field and go into nontaxable securities. The rate of 3 percent The rate of 3 percent that they can get now on nontaxable that they can get now on nontaxable securities is the equivalent of a 30-percent taxable security rate to a person in the income brackets equal to $100,000 a year or more.

Mr. PRICE. Mr. Speaker, will the gentleman yield further?

Mr. PATMAN. I yield.

Mr. PRICE. The point the gentleman I can give the gentleman an example of is making strikes even at the grassroots. how it hits a person down in the local community. Last week, in the town of Bethalto, in my congressional district, they had a special session of the town council. They received word from the bonding company in the East saying that they had to renege on an agreement to float a $310,000 bond issue for this community for improvements in the water system. The reason that they gave for system. The reason that they gave for reneging was the fact that the bond market had deteriorated to such an extent that they could not make a profit handling bonds at the interest rate to which they agreed. So, they had to go back to the community and get official approval to sell these bonds at a higher interest rate. The town officials then had to pass these higher interest rates on to local people using this water system, so it actually hits the local resitem, so it actually hits the local residents of this small community, and these people in Bethalto will have to pay higher water rates to meet this interest rate.

Mr. PATMAN. That is happening all over the country today. I do not know of a city that is not paying a lot more in interest than they paid before because of this high interest rate policy. After Mr. Eccles broke the line and he was not reappointed to the Board, the President reappointed to the Board, the President appointed Mr. McCabe, of Philadelphia,

like Mr. Eccles, of a different party, of a different political faith and belief. He was evidently selected because he was highly recommended. Well, everybody thought that Mr. McCabe would hold the interest pattern. He testified before the committee in the Senate on his confirmation that he could not see in the foreseeable future a situation that would cause him to want to break the interest policy on long term bonds, and he gave every indication and every statement indicated that he was willing to hold that pattern of rates. But, he began to go over to the other side and broke the pattern of long-term rates, and when he did

that he resigned, because he knew he should resign. The entire Federal Reserve Board promised the President January 30, 1951 that the long term bond rate would be supported. Then Mr. Truman, President of the United States, appointed Mr. Martin, William C. Martin. Of all people to hold that pattern, Mr. Martin should have and was expected to, because the Treasury had been on the side of the lower-interest rate policy; the Treasury and the Government being the biggest debtor in the United States, owing more money than everybody else combined. Certainly, the interest rate paid by the Government should be measured by the Government debt. It is perfectly reasonable and logical and right that that be done. Mr. Martin came from the Treasury and was expected to be reasonable in interest rates. But he goes over to the Federal Reserve. Something gets hold of those fellows when they go over to the Federal Reserve. I do not know what it is. It was not long until he was in favor of breaking all rates, in favor of high interest, with no support from the Federal Reserve banks for the Treasury of the United States.

I think it is absolutely cruel for the Federal Reserve system, that is backed solely by the credit of this Nation, whose only stock in trade is the credit of this Nation, to sit idly by and permit the money lenders in a tight money market to charge this Government billions and billions of dollars more on interest rates. It is absolutely wrong. It is cruel. It should not be permitted or tolerated. When the Members of this House realize, whenever they have time to give it the thought and study and consideration this subject deserves, I know they are going to demand that a change be made. It is absolutely wrong and cannot be justified.

Whenever the Government has to pay more interest, the wage earner, the tenant, is approached by the landlord. The landlord says, "I have to charge you more rent. The city has already raised my taxes because the city has to pay a higher interest rate and has raised my taxes. Here are the utilities, electric light, water, gas, and telephone. They have all raised my rates on this building. I have to charge you more money." It is inescapable, and he is justified in asking for a rent increase.

In addition, that poor tenant who is a wage earner not only has to pay that increased rent but he has to pay higher transportation costs and he has to pay higher taxes himself not only to his State government and his city government but also in Federal taxes. So he is in a squeeze. The farmer is placed in the same kind of squeeze. In other words, the result is that we are permitting the diversion of money that is being and has been spent for production, the farmer's production, the manufacturer's production, we are permitting money that has heretofore been spent for production, that keeps down inflation, we are diverting that money to the payment of interest. As you reduce the amount that is spent for production and put it into interest, you are greatly and vitally affecting the economy and prosperity of this Nation. So that is exactly what we are permitting. We

are permitting more money to be paid in, interest and less money to go to the farmer, less money to go into products that are manufactured in industry. So that is a bad situation. It is wrong.

This debt should be paid in dollars of comparable value to the dollars that were in existence at the time the debt was created. This debt was created on cheap dollars and it should be paid on dollars that are not worth any more. So the point is not to try to have such a sound dollar that it will be worth a lot more. If you try to have such a sound dollar that we will go back to 1939 and have a dollar that is worth twice as much as a dollar today, then instead of our national debt being $265 billion it will be the equivalent of $530 billion, it will be double in what the people have to pay with. It is absolutely wrong.

I want to urge Members of Congress to give it consideration. If the Federal Reserve System should return to the policy of supporting Government bonds at par, which it should, it would solve a lot of these problems and keep interest rates down.

SUPPORT GOVERNMENT BONDS AT PAR

I have filed a petition on the Clerk's desk which any Member of the House of Representatives may sign, if he desires, which calls upon the Federal Reserve Board to again support Government bonds at par, not above par, but support them at par, and there are good arguments for it. I hope the Members of the House will seriously consider signing that petition.

A CHANGE IN TRADITIONAL POLICY IN OUR GOVERNMENT

Mr. PATMAN. Mr. Speaker, in the American Banker on Wednesday, July 8, 1953, the following news items appeared: RESERVE BANKS Now TO BURN UP UNITED STATES CURRENCY IN TREASURY-TIME AND MONEY SAVING STEP

CHICAGO, Ill.-The Federal Reserve Bank of Chicago has started to burn worn out silver certificates in an incinerator in its subbasement in the beginning of a program of shifting the job of paper currency destruction from Treasury Department to the 12 Federal Reserve banks and their 24 branches.

Under present law only silver certificates can be destroyed by any other agency than the Treasury itself. All other worn out paper currency has to continue under the old process of destruction. The Reserve banks punch large holes through such bills, cut them in half lengthwise, and send them to the Comptroller of the Currency at Washington where they are checked for counterfeits, counted, and then destroyed.

Later, the top halves of the bills are sent to Washington and similarly destroyed.

The Treasury Department will save parcel post, wrapping and other costs by having the old currency burned at the Reserve banks.

Under the new plan, as applied to the silver certificates, the Reserve banks, as agencies of the Treasury, invalidate the bills, make the necessary verifications and then burn them under the supervision of a senior vice-president.

Advices at New York are that the local Federal Reserve bank, under instructions from the Treasury, this week instituted similar incineration of worn out silver certificates instead of sending them through to Washington for destruction.

This was disturbing to me because it is changing the traditional policy of our Government. Government. Uncle Sam has always been relied upon by the people as making sure that all matters concerning or affecting money and credit in which the fecting money and credit in which the United States Government is involved is handled properly, honestly, and in such detailed procedure that a mistake or chance of dishonesty would be practically impossible. It is inconceivable to me that a function of the Treasury Department for over 150 years is being farmed out to the Federal Reserve banks that do not have the same duty, responsibility, and obligation to conduct the Government's affairs as Government officials in the employment of the Treasury Dein the employment of the Treasury Department of the United States. In other words, Treasury Department officials are under oath to do certain things and have certain obligations to perform their duties in certain ways that the Federal Reserve officials do not have. Will Treasury officials be required to accept Treasury officials be required to accept the count and the statements of the Fedthe count and the statements of the Federal Reserve banks' employees and redeem the currency?

In the press release given out by the Treasury, June 10, 1953, concerning this matter, it was stated:

Hereafter a billion and a quarter pieces a year of wornout United States paper currency-making, if laid flat, a stack as high as 900 Washington Monuments-previously bundled up and sent to Washington will be verified and destroyed locally by the Federal Reserve banks, at substantial savings to the Government. Reduced shipping costs alone are expected to result in savings of about $200,000.

cluding electronic counters, to count and handle currency. Is this expensive equipment to be junked? This equipment has already paid for itself and the Treasury is now in a position to save some real money by continuing to use it.

GENERAL ACCOUNTING OFFICE SHOULD INVESTIGATE

The Federal Reserve banks have never been audited by the General Accounting Office. The Federal Reserve Board has never been audited by the General Accounting Office. The Treasury is under the jurisdiction of the General Accounting Office, and since this transaction involves the Treasury, I believe the General Accounting Office should make an early investigation to determine whether or not it is in the public interest for the change to be made.

If my information is correct, it will be determined very quickly that there will be no actual saving and possibly a loss to the Government in making the change. It does set a very bad precedent and could very well represent the camel's nose under the tent.

EXTENSION OF REMARKS

By unanimous consent, permission to extend remarks in the Appendix of the RECORD, or to revise and extend remarks, was granted to:

Mr. PILLION and to include a statement he made before the Senate Committee on Interior and Insular Affairs.

Mr. CLARDY in two instances and to include articles.

Mr. COUDERT in four instances and to include extraneous matter.

Mr. JENKINS in two instances and to include extraneous matter.

Mr. ANGELL and to include extraneous matter.

Who is paid the $200,000 a year shipping cost? It is paid to the Post Office Department and prevents the deficit of the Post Office Department being that much larger. Therefore, the saving is not actual. Furthermore, if it is all right for the Federal Reserve banks to destroy silver certificates and United States notes without verification of Treasury stances and Department officials, why should not the

procedure be used to destroy Federal Reserve currency? It occurs to me that there is something behind this more than just destroying dollar bills by the Federal Reserve banks. I am apprehensive that it is setting a precedent that will lead to taking more and more important parts of the Treasury and transferring them to the Federal Reserve banks. It is true that the change will cause the Federal Reserve System to be much stronger and will employ a lot more people, but, at the same time, it will deprive career employees in the Treasury Department of their jobsabout 150 of them.

If there was any actual saving, there would be an argument that should receive consideration, but since there is no actual saving and the security of our currency is placed in doubt and in jeopardy, a careful investigation should be made to determine the wisdom and advisability of this change.

The Federal Reserve will charge the Treasury for rendering this service. How much?

The Treasury has within the last 2 years, installed expensive machinery in

Mr. CHUDOFF.

Mr. HAGEN of California in three into include extraneous

material.

Mr. DORN of South Carolina and to include a citation.

Mr. JONES of Alabama and to include a newspaper article.

Mr. HALEY and to include a newspaper article.

Mr. SMITH of Kansas and to include an editorial.

Mr. MULTER in two instances and to include extraneous matter.

Mr. PRICE and to include an article.
Mr. MORRISON.

Mr. MASON and to include a letter sent to him by moving-picture operators.

Mr. SHEEHAN and to include extraneous matter.

Mrs. PFOST and to include extraneous matter.

Mr. WOLVERTON the remarks he made in the Committee of the Whole today and to include extraneous matter.

Mr. HARRIS the remarks he made in the Committee of the Whole today and to include extraneous matter.

Mr. HESELTON the remarks he made in the Committee of the Whole today and to include extraneous matter.

Mr. D'EWART and to include extraneous matter.

Mr. LANTAFF and to include a newspaper article.

Mr. CRETELLA and to include an article.

on electric power.

ENROLLED BILLS SIGNED Mr. LECOMPTE, from the Committee on House Administration, reported that that committee had examined and found truly enrolled a bill of the House of the Mr. DOYLE in three instances and to following title, which was thereupon include extraneous matter. signed by the Speaker:

Mr. DONOHUE.

Mr. NORRELL and to include an article. Mr. HOPE and to include extraneous matter, notwithstanding the fact that it exceeds the limit and is estimated by the Public Printer to cost $210.

Mr. PATTERSON (at the request of Mr. MORANO).

Mr. SHELLEY (at the request of Mr. COOLEY).

Mr. GATHINGS and in another instance to include an editorial.

Mr. SIEMINSKI in three instances in each to include extraneous matter.

Mr. HELLER (at the request of Mr. EBERHARTER) in two instances and to include extraneous matter.

Mr. RODINO (at the request of Mr. PRIEST) and to include an editorial.

Mr. GROSS and to include an editorial. Mr. HILLINGS (at the request of Mr. HOPE) in three instances and to include extraneous matter.

Mr. JONES of Missouri to revise and extend the remarks he made in the Committee of the Whole today and include a letter.

Mr. JONES of Alabama (at the request of Mr. PATMAN) and to include a newspaper item.

LEAVE OF ABSENCE

By unanimous consent, leave of absence was granted to:

Mr. HOSMER, for July 17, 1953, on account of attendance at the International Boy Scouts Jubilee.

Mr. WIGGLESWORTH (at the request of Mr. CURTIS of Massachusetts), for the week of July 13, on account of illness.

Mr. SCHERER and Mr. KEARNEY (at the request of Mr. CLARDY), indefinitely, on account of official committee business.

SENATE BILLS AND CONCURRENT RESOLUTION REFERRED

Bills and a concurrent resolution of the. Senate of the following titles were taken from the Speaker's table and, under the rule, referred as follows:

S. 1400. An act to permit the Secretary of Agriculture to release the reversionary rights of the United States in and to a tract of land located in Wake County, N. C.; to the Committee on Agriculture.

S: 1442. An act to amend section 202 of the Federal Power Act, with respect to the jurisdiction of the Federal Power Commission over persons and facilities engaged in the transmission or sale of electric energy to foreign countries; to the Committee on Interstate and Foreign Commerce.

S. 2163. An act to authorize conveyance to the State of North Carolina of certain lands and improvements constituting the United States cottonfield station located near Statesville, N. C.; to the Committee on Agriculture.

S. Con. Res. 40. Concurrent resolution favoring the placing of the inscription "United States of America" on containers of American-made goods for export; to the Committee on Interstate and Foreign Commerce.

XCIX-567

H. R. 5898. An act to extend until December 31, 1953, the period with respect to which the excess-profits tax shall be effective.

The SPEAKER announced his signature to an enrolled bill of the Senate of the following title:

S. 2394. An act to amend the District of Columbia Police and Firemen's Salary Act of 1953.

ADJOURNMENT

Mr. HALLECK. Mr. Speaker, I move that the House do now adjourn.

The motion was agreed to; accordingly (at 5 o'clock and 10 minutes p. m.) the House adjourned until tomorrow, Friday, July 17, 1953, at 12 o'clock noon.

of surgical equipment and expression of good will from the people of the United States to the people of the Republic of Panama; without amendment (Rept. No. 847). Referred to the Committee of the Whole House on the State of the Union.

Mr. MILLER of Nebraska: Committee on Interior and Insular Affairs. H. R. 1063. A bill to amend title 18, United States Code, entitled "Crimes and Criminal Procedure," with respect to State jurisdiction over offenses committed by or against Indians in the Indian country, and to confer on the State of California civil jurisdiction over Indians in the State; with amendment (Rept. No. 848). Referred to the Committee of the Whole House on the State of the Union.

Mr. GROSS: Committee on Post Office and Civil Service. H. R. 6185. A bill to amend the Veterans' Preference Act of 1944 with respect to preference accorded in Federal employment to disabled veterans, and for other purposes; with amendment (Rept. No. 849). Referred to the Committee of the Whole House on the State of the Union.

Mr. COLE of Missouri: Committee on Post Office and Civil Service. H. R. 569. A bill to authorize the Postmaster General to impound mail in certain cases; with amendment (Rept. No. 850). Referred to the Com

EXECUTIVE COMMUNICATIONS, ETC. mittee of the Whole House on the State of

Under clause 2 of rule XXIV, executive communications were taken from the Speaker's table and referred as follows:

852. A letter from the Acting General Counsel, Office of the Secretary of Defense, transmitting a draft of legislation entitled "A bill to revise certain laws relating to warrant officers of the Army, Navy, Air Force, Marine Corps, and Coast Guard, and for other purposes"; to the Committee on Armed Services.

853. A letter from the clerk, United States Court of Claims, transmitting a certified copy of the court's opinion in reference to Columbia Hospital of Richland County v. The United States (Congressional 17872), pursuant to sections 1492 and 2509 of title 28, United States Code; to the Committee on the Judiciary.

854. A letter from the Assistant Secretary of the Navy for Air, Department of the Navy, transmitting a report of all claims paid by the agency under section 2672 of title 28, United States Code, pursuant to section 2673 of title 28, United States Code; to the Committee on the Judiciary.

855. A communication from the President of the United States, transmitting estimates of appropriation for the fiscal year 1954, in the amount of $5,124,512,132, to carry out the purposes of the Mutual Security Act of 1953 (Public Law approved July —, 1953) (H. Doc. No. 209); to the Committee on Appropriations and ordered to be printed.

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REPORTS OF COMMITTEES ON PUBLIC BILLS AND RESOLUTIONS Under clause 2 of rule XIII, reports of committees were delivered to the Clerk for printing and reference to the proper calendar, as follows:

Mr. MEADER: Committee on Government Operations. Part 2, additional views on House Resolution 261. Resolution disapproving Reorganization Plan No. 7 of 1953. (Rept. No. 843). Referred to the Committee

of the Whole House on the State of the Union.

Mr. MEADER: Committee on Government Operations. Part 2, additional views on House Resolution 262. Resolution disapproving Reorganization Plan No. 8 of 1953. (Rept. No. 844). Referred to the Committee of the Whole House on the State of the Union.

Mr. JACKSON: Committee on Foreign Affairs. H. R. 6155. A bill authorizing a gift

the Union.

Mr. SCHENCK: Committee on House Administration. House Resolution 201. Resolution authorizing the study entitled "Permit Communist Conspirators To Be Teachers?" and a related statement by members of the Association of American Universities to be printed as a House document; with amendment (Rept. No. 851). Ordered to be printed.

Mr. SCHENCK: Committee on House Administration. House Resolution 312. Resolution authorizing the printing of additional copies of the publication entitled "Soviet Schedule for War, 1955" for the use of the Committee on Un-American Activities; with amendment (Rept. No. 852). Ordered to be printed.

Mr. SCHENCK: Committee on House Administration. House Resolution 252. Resolution to provide for the publication of the Constitution as a House document; with amendment (Rept. No. 853). Ordered to be printed.

Mr. SCHENCK: Committee on House Administration. House Resolution 251. Resolution to provide for the publication of the article, How Our Laws Are Made, as a House document; with amendment (Rept. No. 854). Ordered to be printed.

Mr. HAGEN of Minnesota: Committee on Post Office and Civil Service. H. R. 2465. A bill to amend the act of April 23, 1930, relating to a uniform retirement date for authorized retirement of Federal personnel; with amendment (Rept. No. 855). Referred to the Committee of the Whole House on the State of the Union.

Mrs. HARDEN: Committee on Post Office and Civil Service. H. R. 5379. A bill to authorize the printing and mailing of periodical publications of certain societies and institutions at places other than places fixed as the offices of publication; without amendment (Rept. No. 856). Referred to the Committee of the Whole House on the State of the Union.

Mr. HOFFMAN of Michigan: Committee on Government Operations. Third Intermediate Report on Military Supply Management; without amendment (Rept. No. 857). Ordered to be printed.

Mr. REED of New York: Committee on Ways and Means. H. R. 5257. A bill to extend to the Trust Territory of the Pacific Islands certain provisions of the Internal Revenue Code relating to narcotics; without amendment (Rept. No. 858). Referred to the Committee of the Whole House on the State of the Union.

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