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Captive Nations Week proclamations by President Johnson, by Governor William W. Scranton, and by Mayor James H. J. Tate were read and resolutions proposed and adopted. The latter supported President Johnson's firm policy in the Dominican Republic and Vietnam, urged the House of Representatives to establish a Special Committee on the Captive Nations, and called for the exposure by American delegates to the U.N. of Sino-Russian colonialism, "including that in the Ukraine, White Ruthenia, Georgia, Armenia, and other captive non-Russian nations in the Soviet Union."

From the platform waved the flags of many of the 29 captive nations, girls in native costumes represented some of them, and numerous placards called for especially the liberation of Cuba. There was a commemorative note for Lithuania, Latvia, and Estonia, which were invaded and enslaved by the Soviet Union 25 years ago on June 12, 1940.

In general, the speakers, who in addition to Professor Dobriansky and Dr. App, included Mr. Arlin M. Adams, who as secretary of welfare, Pennsylvania, represented Governor Scranton, and Mr. Maurice S. Osser, city commissioner, who represented Mayor Tate, urged continued free world efforts until the captive nations are liberated. The first step they declared to be the club of public opinion" directed against Moscow and Peiping colonialism and the employment by the free nations, especially America, of all moral, economic, and diplomatic resources in behalf of such liberation.

Mr. Ignatius M. Billinsky, executive vice chairman, read the resolutions, Mr. William Nexowy, Jr., field representative, was master

of ceremonies. The Reverend Vito J. Martusevich gave the invocation, representing Archbishop Krol, and the Reverend Walter J. Kopperman, of St. John's Lutheran Church, Folcroft, gave the benediction. Mr. Jonas A. Stiklorius, secretary, introduced the presidents of the various nationality groups. All of these signed the resolutions on the deck of Admiral Dewey's flagship, U.S.S. Olympia, After the main observance, a wreath was laid at the Liberty Bell with the hope expressed by Dr. A. J. App that the symbol of liberty will always prevail in America and soon also in all the captive nations.

[From the Philadelphia (Pa.) Inquirer, July 19, 1965]

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A third speaker, State Welfare Secretary Arlin M. Adams, reminded the audience that Independence Hall, the site of Sunday's ceremonies, "stands for the principle that government should be by consent of the governed."

Prior to the program at the historic shrine, the city's Captive Nations Committee signed a resolution aboard the USS Olympia asking the House of Representatives to create a special committee on the captive nations, to inaugurate a captive nations freedom stamp series and to establish a "freedom academy."

Several young women in the costumes of various captive nations laid a wreath at the Liberty Bell to conclude the ceremonies.




"Not yet, O Freedom, close thy lids in slumber, for thine enemy never sleeps."William Cullen Bryant.

Welcome, friends. Let us all gathered together here, in memorium of our enslaved brothers and sisters by the Communist slavemasters, rededicate ourselves to do our part to unmask its deceits and subterfuges-its relentless psychological, political, economic, sociological and military strategies.

Like all reasonable people, we do not desire war, but only a lasting peace. On the other hand, let us be fully aware that, in hoping

FOREIGN GROUPS BACK NIXON FOR STEVENSON for peace, we cannot permit ourselves to be

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frozen into extinction as free men. We must meet the total challenge of the arctic hell of There is no Siberian slave labor camps. third way, either we prevent the achievement of communism's "historic mission"-or we perish. Let us work hard so we may keep

alive the hope of ultimate freedom for these people. If the Communist tyrants should ever succeed in crushing the spirit of these captive nations through bruite force and extended brainwashnig, they will not hesitate to attack us. The spirit of these captive people is today the greatest deterrent to war and the best guarantee for peace. We must keep this spirit alive.

Let us examine the foundation of our lives, consider our heritage bequeathed to us by those who made such great sacrifices, and in the light of the glory of that heritage dedicate our lives to our country, to our God, and to the survival of liberty upon the earth.

A God-centered Nation, ever humble before the majesty of the divine Creator, can keep alive freedom, justice and mercy. This is our greatest weapon. This is the heritage of America.

Thank you for coming.

HEIDI GUTIERREZ, Chairman, First Voters Committee.

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Opening remarks: Mr. Ed Delaney, staff writer for the Valley Times and the Hollywood Citizen News, author of "Freedom's Frontier."

Remarks from Freedom Fighter Mrs. Heidi Gutierrez, Germany.

Lithuanian dance group.

Remarks from Freedom Fighter Mr. Eugene French, Czechoslovakia. Russian dance group.

Remarks from Freedom Fighter Mr. Tom Z. Wang, China.

Los Angeles Rumanian-American Orthodox Youth dance group, Mr. Nick Panderea, dance instructor.

Remarks from Freedom Fighter Mr. Stephen Szabo, Hungary.

Ukranian dance group sponsored by the Ukranian Cultural Center, Mr. J. Erglis Smaltzoff, director.

Introduction of featured speaker: Mr. Eric Pridenoff.

Message: The Honorable EDWARD J. DERWINSKI, U.S. Congressman from Illinois, national chairman for the Captive Nations Committee.

Closing remarks.

Audience participation in the singing of "God Bless America."


Elliot S. Graham, Mackaig & Sons of Monrovia, South Gate Young Republicans, Mr. and Mrs. Ferdinand Mendenhall, Mr. and Mrs. Donley L. Brady, Mr. and Mrs. Philip M. Virtue, Jorn's Auto Shop, South Gate; Mr. and Mrs. Frank Seres, La Mirada Young Republicans; Sopp & Sons Chevrolet, Dew Foam Co., Mutual Savings & Loan, Pasadena; Mr. Kersey Kinsey, Mrs. Kitty CurtizRadwan.


Caltech Young Republicans, Covina Young Republicans, Czech-American UROC Unit No. 149, Pasadena Young Republicans, Pacific Palisades Young Republicans, Canoga Park Young Republicans, Woodland Hills Young Republicans, All America City Young Republicans, Van Nuys Young Republicans, UCLA Bruin Young Republicans, Continental Young Republicans, 42d Assembly District Young Republicans, Westchester Young Republicans, Westwood Young Republicans, Whittier Young Republicans, Hollywood Young Republicans, Bassett Young Republicans, Airport Constitutional Young Republicans, Estonian-American Republican Assembly of Los Angeles County, UROC Area 10, UROC Glendale Unit 1, ParamountHollywood Republican Assembly, Malibu Federated Republican Women, Pasadena Republican Club.

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MR. PRESIDENT: Your Committee on Public Policy, to which was referred Engrossed House Concurrent Resolution No. 4, has had the same under consideration and begs leave to report the same back to the Senate with the recommendation that said resolution be

"Whereas this harmonious unification of the diverse elements of our free society has led the people of the United States to possess a warm understanding and sympathy for the aspirations of peoples everywhere and to recognize the natural interdependency of the peoples and nations of the world; and adopted.

"Whereas the enslavement of a substantial part of the world's population by Communist imperialism makes a mockery of the idea of peaceful coexistence between nations and constitutes a detriment to the natural bonds of understanding between the people of the United States and other peoples; and "Whereas since 1918 the imperialistic and aggressive policies of Russian communism have resulted in the creation of a vast empire which poses a dire threat to the security of the United States and of all the free peoples of the world; and

"Whereas the imperialistic policies of Communist Russia have led, through direct and indirect aggression, to the subjugation of the national independence of Poland, Hungary, Lithuania, Ukraine, Czechoslovakia, Latvia, Estonia, White Ruthenia, Rumania, East Germany, Bulgaria, mainland China, Armenia, Azerbaijan, Georgia, North Korea, Albania, Idel-Ural, Tibet, Cossackia, Turkestan, North Vietnam, and others; and

"Whereas these submerged nations look to the United States, as the citadel of human freedom, for leadership in bringing about their liberation and independence and in restoring to them the enjoyment of their Christian, Jewish, Moslem, Buddhist, or other religious freedoms, and of their individual liberties; and

"Whereas it is vital to the national security of the United States that the desire for liberty and independence on the part of the peoples of these conquered nations should be steadfastly kept alive; and

"Whereas the desire for liberty and independence by the overwhelming majority of the people of these submerged nations constitutes a powerful deterrent to war and one of the best hopes for a just and lasting peace; and

"Whereas it is fitting that we clearly manifest to such peoples through an appropriate and official means the historic fact that the people of the United States share with them their aspirations for the recovery of their freedom and independence: Now, therefore, be it

"Resolved by the Senate and House of Representatives of the United States of America in Congress assembled, That the President of the United States is authorized and requested to issue a proclamation designating the third week in July 1959 as 'Captive Nations Week' and inviting the people of the United States to observe such week with appropriate ceremonies and activities. The President is further authorized and requested to issue a similar proclamation each year




Singing of National Anthem led by Mme. Vukitsa Ilich.

Pledge of Allegiance to the Flag led by Rear Adm. H. N. Wallin, U.S. Navy, retired. Invocation by Pastor Herbert Shreiner, Queen Anne Community Church.

"The Purpose of Captive Nations Week," by Maynard Sundt, committee chairman. Parade of captive nations flags. Prayer for freedom of all captive nations now under Communist control.


Latvian choir conducted by Peter Galins. Balalaika orchestra from Russian community.

Polish dances by children from Polish community.

Czechoslovak accordion player: Gay Nemes. Indonesian dances by the Timmerman Sisters (Margie and Anneke).

Chopin's "Prelude" by Yvonne Brachmanski.

Mme. Vukitsa Ilich, opera singer.

Introduction of main speaker: by Walter Brachmanski. Mr. John Rees, Lithuanian refugee, lecturer, speaking on: "Life and Death Behind the Iron Curtain."

Singing of "God Bless America," led by Mme. Vukitsa Ilich.


Sinisa Balandzich for arranging for captive nations refugees participation.

Color Guard, American Legion Post No. 11.

Coordinating committee for observance of Captive Nations Week: Chairman Maynard Sundt; Kornelisis Purgalus; Jean Thomas; Harry Robbins; Dr. Tom Wall; Mrs. J. W. Clise; Robert Maxwell; Rep. Robert A. Perry; Herman Garretson, Jr.; Burt W. Marshall; Sinisa Balandzich; Donald N. MacDonald; Ken Rogstad; Mrs. R. V. Blackstock; Mrs. Leo Rousch; Dr. Robert N. Myers; Capt. John Algeo, U.S. Navy (retired); Larry Higgins; Bill Thompson; Florence Kuzina; Johannes Hannibal; Harijs Mindenbergs; Janis Zommers.

The Congress of the United States, by
Public Law approved in July 1959, designated
the third week of each year as Captive
Nations Week.

All the captive peoples behind the Iron and Bamboo Curtains, including the Russian and Chinese people themselves, have for long years been enslaved by Communist tyranny. The imperialistic policies of Communist Russia have led, through direct and indirect aggression, to the subjugation of the national independence of Poland, Hungary, Lithuania, Ukraine, Czechoslovakia, Latvia, Estonia, White Ruthenia, Rumania, East Germany, Bulgaria, mainland China, Armenia, Azerbaijan, Georgia, North Korea, Albania, Idel-Ural, Tibet, Cossackia, Turkestan, and North Vietnam. The captive peoples of these nations have never ceased to strive for freedom and look to the United States for leadership in bringing about their liberation and independence.

This week has been set aside to keep fresh in the minds of all people the fact that the free world has not forgotten these nations and that they must some day become independent, and that the people of our State share with them their aspirations for the recovery of their freedom and independence: Now, therefore,

I, Daniel J. Evans, Governor of the State of Washington, do hereby designate the week of July 18 through 24, 1965, as Captive Nations Week and urge the people to remember our promises to the people of the submerged nations and to show that we have not forgotten our silent allies.

[From the Washington (D.C.) Post,
July 22, 1965]


House Republican Leader GERALD R. FORD, of Michigan, said last night that irresponsible critics-a "mere handful in the Congress and on our college campuses"-are undermining the President's foreign policy by giving Communist leaders the impression that America is divided.

And FORD urged President Johnson to clarify U.S. objectives in Vietnam, to "escalate not means alone-but the ends for which we fight."

At the same time, he directed most of his fire not at the President, but at those who have questioned his firmness. Mr. Johnson's real enemies at home, said FORD, are within his own party.

FORD said Mr. Johnson "need not fear that the loyal opposition will ever undercut his efforts to be firm against Communist aggression in Vietnam or elsewhere. We will always put national interest above narrow partisan interest."

Speaking to the Assembly of Captive European Nations at the National Press Club, FORD began by challenging the theory that the enemy-communism-is mellowing, that the Soviets desire peaceful coexistence, and that we must carefully avoid rubbing them the wrong way.

The great danger of this "new myth" and of the vacillation it breeds, FORD said, is that it makes Communist leaders question our determination to protect our vital interests.

"Our military commitment has increased" in Vietnam, Ford said. "Now the President must detail the vital interests we are fighting for in that part of the world.”

Ford attended the dinner last night to receive the Assembly of Captive European Nations Award. Representative DANIEL J. FLOOD, Democrat, of Pennsylvania and radio and television broadcaster Edward R. Murrow also received the award, Murrow posthumously.

Before the presentation of the awards three East Europeans who have recently come to the United States from behind the Iron Curtain gave "eye witness" accounts of life in their countries.

Monika Flidr, a young Czech schoolteacher, reported that "by trying to suppress

[From the Ukrainian Bulletin,
July 1-15, 1965]

Mr. WELTNER. Mr. Speaker, during a recent visit home I received a tele

individuality, by offering regimentation and CAPTIVE NATIONS WEEK OBSERVANCES PLANNED phone call from the wife of a marine

boredom instead of new vistas, communism has failed dismally with the younger generation in Czechoslovakia."

As she spoke, three Communist journalists

sat at one side of the room. According to a State Department specialist on Soviet and east European affairs, this is the first time Communist reporters have covered a captive nations meeting.

[From the Ukrainian Bulletin, July 1-15,


"We hail this occasion as a most fitting
one to express our full support of the Pres-
ident's policies in both Vietnam and the
Dominican Republic," declared Dr. Lev E.
Dobriansky, president of the Ukrainian Con-
gress Committee of America (UCCA) and
chairman of the National Captive Nations
Committee, before a political forum spon-
sored recently by the Rochester branch of

Speaking in behalf of both organizations, Dr. Dobriansky urged a "freedom-expanding action directed at the captive people in North Vietnam" and "a planned extinction of the Red Empire's outpost in Cuba." Calling for political warfare by the free Vietnamese and free Cubans, he expressed his amazement at how little or nothing is heard about bringing freedom to the captive people of

North Vietnam.

In his address, the Georgetown University professor who authored the Captive Nations Week resolution, stressed that this year's observance of Captive Nations Week will also highlight citizens' support for President Johnson's foreign policies. (The week falls on July 18-24.)


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1. Peace with justice and freedom-stressing the tremendous deterrence represented by all the captive nations against Soviet Russian and Red Chinese aggression;

2. Full support for U.S. actions in Vietnam and the Dominican Republic;

3. A poltrade policy toward the totalitarian Red Empire, trade based on political concessions;

4. Complete exposure of Sino-Russian imperio-colonialism in the U.N., concentrating especially on the captive non-Russian nations in the U.S.S.R.;

5. Creation of a Special House Committee on the Captive Nations;

6. Inauguration of a Captive Nations Freedom Stamp series;

7. Establishment of a Freedom Commission and Freedom Academy.

[From the Ukrainian Bulletin,
July 1-15, 1965]

WASHINGTON, D.C.-"Captive Nations Week
1965" was a special topic of discussion taped
by the Georgetown University Radio-TV
Forum on June 2, 1965, and broadcast on
June 27 and June 29, 1965. Taking part in
the discussion were Dr. Lev E. Dobriansky,
president of the Ukrainian Congress Com-
mittee of America and the National Captive
Nations Committee, the Honorable PETER H.
DOMINICK, U.S. Senator from Colorado, and
the Honorable MICHAEL A. FEIGHAN, U.S. Con-

sergeant who is now serving his country
in South Vietnam.
in South Vietnam. This young man is a
completed years of honorable service in
career noncommissioned officer, who has
the uniform of his country. He is proud
of the service, and of his assignment in
counterintelligence work. His wife was
distressed with the possibility that he
may now be removed from that impor-
tant work, and turned down for reenlist-
ment. The reason-debt.

She told me that her family is burdened to the breaking point with debt, and that her husband, knowing the damage that might come to his career, has tried desperately during the last few years to borrow from new sources in Finally, his credit was exhausted, and he order to keep other obligations current. could not longer stave off his creditors. I asked that she send me a list of his obligations. The attached letter was received this week. I have stricken the names of the creditors, and their street addresses.


BALANCE, $2,811

The assistant manager wrote a letter of in-
debtedness to headquarters, Marine Corps,
even though my husband has been making
all or partial payments with the exception of
some months right after he was sent over-
seas. He was advised by the legal officer to
try to pay some on everything, so we both
have tried to do this. This would supposedly
prevent letters such as the ones written.

I believe we actually received a little over $300 on this loan but the above amount is what I called and found out we owe. These

Pointing out that "the distance from Ukraine or Poland to Vietnam and the Dominican Republic is but a near step," Dr. Dobriansky scored the "few misleading and garbling voices from some of our campuses" on these issues. He said that "they cannot fool the millions who understand all the captive nations, who comprehend their significance in our fight against Sino-Soviet Russian imperio-colonialism, and who shall persist in efforts for a cold war strategy against the entire Red Empire and its my- gressman from Ohio. Mr. Wallace Fanning all of this went into his record and has been thology of communism."

The following prominent themes of the 1965 Captive Nations Week observances were cited by Dr. Dobriansky:

1. Peace with justice and freedom, support of all the captive nations being one of our most powerful deterrents against a hot global war; 2. Full support for U.S. actions in Vietnam and the Dominican Republic, preventing further Communist takeovers; 3. A "poltrade policy" toward the totalitarian Red Empire, trade base on political concessions; 4. Complete exposure of Sino-Russian imperio-colonialism in the U.N. and other councils, concentrating especially on Ukraine, Georgia, Armenia and other captive non-Russian nations in the Soviet Union; 5. Establishment of a Special Committee on the Captive Nations in the House of Representatives, signifying American dedication to the eventual freedom of all the captive nations; 6. Creation of a Freedom Academy, and 7. Inauguration of a Captive Nations Freedom Stamp series.

The Georgetown professor stated: "We Americans have still a long way to go in grasping the empire character of the Soviet Union. Red China has virtually terrorized Moscow with its propaganda about the dozen and more colonial states in the U.S.S.R.; many of our leaders and opinion-makers still don't even know what this is all about."

was moderator.

During the weeks of June 21 and 27, NBC showed the TV portion in Washington and several other major cities. The Educational TV media covered the program during the latter week. Over 300 radio stations and the "Voice of America" carried the program. The press release on the panel discussion made the point, "Believing that support of the captive nations is one of the strongest deterrents against global war, the National Captive Nations Committee has announced a seven-point program for the observance of the week."


The SPEAKER. Under a previous
order of the House, the gentleman from
Georgia [Mr. WELTNER] is recognized for
60 minutes.

Mr. WELTNER. Mr. Speaker, I ask unanimous consent to revise and extend my remarks and include extraneous matter and tables.

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

There was no objection.

people called all nearest relatives mentioned in contract including my mother-in-law and threatened to do just what they did do, send a letter through Headquarters Marine Corps, to his immediate superior. He was given a chance to pay these people however before

doing so.

This led to another background investigation on my husband which revealed our deep indebtedness therefore the question of his suitability for the field he is in, counterintelligence.


My husband is paying this in allotment form, payments are $40 per month. It is of course automatically deducted from his pay each month.


I have been making the payments to these people and have managed to keep them caught up, however, I should have kept some of the letters they send out when the payments are a few days late. They are very much aware of how much a serviceman fears a letter of indebtedness.


I have paid very small amounts on this loan, after I filed for bankruptcy last February. They contacted me and of course told me what they could do to my husband, etc. I have been able to do very little with this account but they have been more patient than most.

I am also enclosing a copy of the contract we signed which caused us to lose all of our furniture, everything, shortly after my husband went overseas. As you can see it took in just about everything we owned but the clothes we had. I thought perhaps this might be of interest to you also.

There are many things I would like to say in my husband's behalf; he is a well trained, dedicated marine and I think if you saw his service record you would agree. He is also a good husband and father and has tried to provide for his family and has done so under stress and strain many a good man would have run from. If I start on this though I will take up far too much of your valuable time so I can only say as I said before I am most grateful for your time, your interest, and efforts in my husband's behalf. Please let me know of any further information I can furnish. Thank you.

Along with the letter, she sent a copy of the contract she and her husband signed. For the renewal of an outstanding obligation of $668.93, and the payment to them of $322.18 in cash, she and her husband contracted to repay $61 per month for 24 months. For a present consideration of $991.11, they bound themselves to pay a total of $1,464 over a 2-year period. The cost of that money to them amounts to 45.8 percent of the principal each year. It is true that there are factors in that contract other than interest. There is $58.86 as credit life insurance; $87.81 as accident and health insurance; $40 insurance on the household goods securing the loan; $1 as a recording fee-plus interest of $285.49. But whether these charges are interest fees or insurance, it is all cost of the loan. It comes to 45.8 percent, figured on a simple, annual interest rate.

Whether it is interest or charges, the sergeant and his wife could not pay the monthly cost. They lost all their furniture when the loan company seized it under the power granted in the contract. Whether it was interest or charges, the sergeant now finds his career, which has been an honorable one, in serious jeopardy by the demands of this creditor and others. It is revealing also to note that two-thirds of the principal amount of that loan is the renewal of an existing indebtedness.

Here, then, is a case of debt piled upon debt, default, foreclosure, and a home and career in grave danger.

Mr. Speaker, I call this to the attention of the House because this personal tragedy occurs thousands of times daily throughout the Nation. I think it is well to review some of the aspects of consumer finance in America today.

In 1964, more than 32 million small loans were made, totaling $20 billion. At the end of last year, short term consumer credit stood at a high of $77 billion-an increase of 1,247 of 1,247 percent in the past 20 years, an increase of $8 billion over 1963. Of the total, $59 billion is held in installment loans, of which $24.5 billion is for automobile financing. Other durable consumer credit amounts to $15.3 billion. Home repairs and modernization stands at $3.5 billion, and personal loans, $16 billion.

Commercial banks hold $24 billion of this debt, sales finance companies, such

as automobile acceptance companies, as automobile acceptance companies, hold $15 billion. Consumer finance companies hold $5 billion, and other institutions, such as credit unions and savings banks, hold the remaining $8 billion.

The ratio of installment credit to disposable income increased from 14 to 1 in 1963, to 15.2 in 1964.

In 1948, 27.8 percent of consumer loans were made to consolidate existing billsto pay off existing debt. Last year, 1964, that figure was 48 percent-almost half that figure was 48 percent-almost half of all loans made.

Studies by consumer finance companies show that of their borrowers 79 percent are unskilled, semiskilled and domestic workers, service workers, or armed services personnel. And in 1964, 72 percent of all the families in America had committed at least 10 percent of their disposable incomes to repayment of installment credit. Personal debt now represents 16 percent of disposable family income. Individual bankruptcies have increased by 1,260 percent since 1947.

Mr. Speaker, these figures are disturbing. First, short-term consumer debt is a substantial factor in our economy, amounting today to over three-fourths of the total annual revenues of the U.S. Government. Second, it is increasing daily. Third, debtors are, in growing proportions, finding it necessary to borrow more money to pay back what they row more money to pay back what they have borrowed and spent long ago. Fourth, installment debtors have the lowest incomes in the country. For example, only 3 percent of consumer finance loans are made to professional and semiprofessional people.

Add to these factors one final consideration, Mr. Speaker, and it is apparent that this field is of vital importance.

The final factor is interest rates. The cost of borrowing falls the heaviest upon those least able to pay-witness the plight of my constituents.

Small loan laws over the several States generally permit interest of 30 to 40 percent on loans under $300. In Georgia, which revised its small loan laws a few years ago, a $40 loan, repayable over 3 months with interest and permissible charges, costs the borrower at an annual rate of 60 percent. This same situation pertains, in varying degrees, throughout the country. Some States have no legal limit on loans to corporations. Some have no limit on loans over a specified amount. Most fail to specify permissible charges-all of which add to the net cost to the consumer for the use of money borrowed.

Quite obviously, there is a wide need for credit on the part of Americans with lower incomes. And there is a perfectly legitimate field for money lenders in supplying this credit. Yet, to the grave detriment of millions of poorer Americans, there are recorded seemingly unending instances of sharp and deceitful practices in this area. Certainly, the man who wishes to invest his money in small loans is entitled to a fair return on his capital.

Interest rates can and should vary with varying degrees of risk. But, Mr. Speaker, can anyone defend interest

rates of 50 and 60 percent? Can anyone come to the defense of those unscrupulous lenders who tack charge to fee to interest to premium to cost, and saddle the hapless borrower with an intolerable and unconscionable burden of usury?

I wish to outline some of the practices which add to this mountain of debt borne by the American consumer.

First, we should consider the laws under which small loan companies operate. I am attaching a schedule showing the statutory reference to small loan laws, maximum rates, and the rate of simple interest per annum based upon rate of 4 percent per month, permissible those rates. It is quite obvious that a in Alaska, amounts to 48 percent per year. A brief review of this table will show that about half the States permit interest rates of at least 36 percent per year.

I am attaching another table outlining the usury statutes of the States, governing interest on all loans not covered by small loan laws. Under these statutes, the maximum lawful interest ranges from 6 to 12 percent. In New York for instance, a loan under the small loan laws costs the borrower four times as much as the same money borrowed under the usury statutes. In Georgia, with a maximum rate of 8 percent under the usury statutes, the increase of interest under the small loan act is over sevenfold.

Mr. Speaker, it should be remembered that the 36- and 48-percent interest rates I have mentioned are those permitted by the statutes. Yet this is not the whole cost to the borrower. from it.


The marine sergeant and his wife were required to pay for credit life insurance, accident and health insurance, and insurance on their household goods. These, and other charges, add to the cost of loans. Few States have adopted any restrictions on additional charges such as these.

Credit insurance pays the loan balance outstanding if the debtor dies. Properly used, this is valuable protection to the debtor and lender. The problem lies not in the worth of credit insurance, but with the rates charged. Sound group plans, which should be available to every legitimate lender, provide protection at a cost of 30 to 60 cents per $100 indebtedness. Yet many lenders charge-and collect-$1 or more on each $100 of debt. Today $30 billion of credit life and health insurance in force covers about 40 percent of the outstanding consumer debt. If the coverage is part of a group plan, the lender is the beneficiary, and certificates of coverage are usually issued to debtors. In the case of an individual policy, the cost is substantially higher. The lender sometimes occupies the position of agent for the insurer, deriving an added emolument in the form of a commission on premiums. Because of the nature of the transaction, the borrower is practically at the mercy of the lender in the placement of credit insur

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Iowa Code Annotated, secs. 536.1-536.25..

3 percent a month on loan to $300; 2 percent a month on loan to $600.

8 percent per annum, plus 8 percent per annum on 1st $600 plus 4 percent on excess.

31⁄2 percent a month on loan to $100; 211⁄2 percent a month on loan to $300.

3 percent a month on loan to $300; 2 percent a month on loan to $500; 1 percent a month on loan to $1,000.

Smith-Hurd Illinois Annotated Statutes, ch. 74, secs. 19-46. 1947, as amended 1957. 3 percent a month on loan to $150; 2 percent a month on
Burns Indiana Statutes, secs. 18-3001-18-3004.

loan to $300; 11⁄2 percent a month.on loan to $800. 3 percent a month on loan to $150; 2 percent a month on loan to $300; 11⁄2 percent a month on loan to $1,000. 3 percent a month on a loan to $150; 2 percent a month on a loan to $300; 11⁄2 percent a month on a loan to $500. may add to such loan or deduct therefrom in advance, interest or discount at a rate not exceeding 8 percent on face amount of loan from date thereof until maturity of final installment, notwithstanding that the principal amount of such loan is required to be paid in installments.

Kansas General Statutes, secs. 16-201-16-205 (general 1955, as amended 1957. Amount borrowed not to exceed 30 months and lender statute on usury and interest).


Baldwin's Kentucky Revised Statutes, secs. 288.410-288.192. 1960

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West's Louisiana Revised Statutes, secs. 571-593– Maine Revised Statutes Annotated, title 9, secs. 3001-3162Annotated Code of Maryland, art. 58A, secs. 1-23. Massachusetts General Laws Annotated, ch. 140, secs. 1955; rate effective in 96-114A. 1960 (2).

1940, as amended 1952. Revised Statutes 1954, as amended 1963.

3 percent a month on loan to $150; 2 percent a month on
loan to $600; 1 percent a month on loan to $800 (or $20
per $100-$150; $15 per $100-$600; $11 per $600-$800).
31⁄2 percent a month on loan to $150; 21% percent a month on
loan to $300 (8 percent per 1 year after maturity).
3 percent a month on loan to $150; 21⁄2 percent a month on
loan to $300; 111⁄2 percent a month on loan to $2,500.
3 percent a month on loan to $300.

211⁄2 percent a month on loan to $200; 2 percent a month on
loan to $600; 14 percent a month on loan to $1,000;
34 percent a month on loan to $1,500.

1939, as amended 1963- 21% percent a month on loan to $300; 14 percent a month

1949, as amended 1957, 1963. 1957

3 percent a month on a loan to $300; 11⁄2 percent a month on a loan to $500; 1 percent a month on a loan to $1,500. $17 per $100 on a loan to $300; $9 per $100 on a loan to $1,000.



36, 18, 12.




Interest bearing


36, 24.


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Interest bearing..


42, 30.

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New Jersey Statutes Annotated, secs. 48-17-30-48-17-58-1932, as amended, 1948. 21⁄2 percent a month on loan to $300; 1⁄2 of 1 percent a month New Mexico Statutes Annotated, secs. 48-17-30--48-17-58. 1955

McKiney's Consolidated Laws of New York; Banking 1960

Law, secs. 340-365.

on loan to $500.

31⁄2 percent a month on loan to $150; 3 percent a month on
loan to $300; 1 percent a month on loan to $1,000.
21⁄2 percent a month on loan to $100; 2 percent a month on
loan to $300; 1 percent a month on loan to $800.

1959. 1958. 1951, as amended 1959. 1959, as amended 1965. 1941, as amended through 1963.

234 percent a month on loan to $300; 11⁄2 percent a month on loan to $600.


Interest bearing or


32, 18.


2 percent times amount lent times number of months (graduated scale for loans of $100 or less).


Variations of dollar



2.218 percent a month on loan to $500; 8 percent per annum above $500 or $15 per $100.

Interest bearing or




mately 26.

$20 per $100 per year to $300; $16 per $100 to $500; $12 per $100 to $1,000.


Interest bearing or


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