before thee: Whither it seemeth good and convenient for thee to go, thither go."

Father Serra's motto: "Always to go forward; never to look back" may have been the inspiration for one of my political heroes, Thomas Jefferson, when, in 1816, he wrote to John Adams: "I like the dreams of the future better than the history of the past."

An anniversary of death is an appropriate time for reviewing the past, but also a propitious time for surveying the future. Too often men are remembered for what they wrote, rather than for their work. To me, Father Serra's record of work and accomplishment is his greatest legacy.

Pursuing his motto, and his faith, Father Serra, in spite of lameness and material poverty, during a brief span of approximately 15 years, left his indelible mark on the history and landscape of California. We honor Father Serra today at a time when an old pride, and a new emphasis, should be accorded plain work.

His primary mission may have been the conversion of the Indians; but he was not content with merely serving the spiritual needs of the natives. He was among the first to try to educate the neophytes; he helped to establish civil government in California. He promoted agriculture. The Franciscans' early irrigation systems remain marvels of engineering and of ingenuity. They constructed mills for the crushing of maize into flour. Husbandry of cattle herds, at the missions, formed the basis for the present beef industry of our State. His trails became the skeleton of our roads and superhighways. The Spanish influence, imported by Father Serra, has branched afar from the famous El Camino Real.

The greatest living monument to his work is probably the "rosary chain" of his missions. The many works of Father Serra, and his followers, are manifest in almost every aspect of life today in California.

The scenic and historic 12th Congressional District, which I have the honor to represent, contains 7 of the 21 missions, including the Carmel Mission where Father Serra died-and where he is buried.

For these reasons, Father Noel Moholy per

mitted me to participate in honoring Father

Serra's memory by securing the authorization

of the Congress for the striking of a commemorative medal.

On occasions of great significance to the Nation, the Congress approves legislation authorizing the Treasury to use the facilities of the U.S. Mint to strike medals in commemoration of the event.

Only a few people outside of Congress, but certainly Father Moholy, appreciate the un

commonness of a commemorative medal and the tribulations involved in attaining passage of an act of Congress.

The entire California congressional delegation first adopted a resolution urging the striking of the medal. Thirty-two Members joined me in sponsoring a bill to authorize the medal. Senator KUCHEL introduced a similar bill in the Senate.

The Committee on Banking and Currency screened all of the many bills proposing the minting of various coins and medals. Of all the bills introduced, only three were signed into law during the 88th Congress.

One of the first Serra medals to be minted was given to me; I have carried it ever since. By his presence here in Statuary Hall, Calif., recognizes him as one of its first and most important citizens. All denominations consider him as one of our greatest pioneers. The Padre Junipero Serra 250th Anniversary Association, and all friends of Father Serra, should be proud that the Congress of the United States, through the authorization of the commemorative medal, has recognized his birth as an occasion of extraordinary national significance.

Today, as much as ever before, we need the same dedication to purpose and devotion to work that Father Serra exemplified-if the

cause of Christianity is to cope with today's terrible challenges of secularism, materialism, and communism.

As the Indians who lived in early California found inspiration in the ministry and work of Father Serra, I trust that we who live in the larger world community of today will find inspiration and incentive in Father Serra's great and wonderful work.

Longfellow in his "Psalm of Life" seemed to capture a measure of what Father Serra's philosophy means to this layman:

"Let us, then, be up and doing, With a heart for any fate; Still achieving, still pursuing, Learn to labor and to wait." Reverend Fathers and guests, I have appreciated the opportunity to participate in this remembrance of the life and death of Father Serra.

Address of the Honorable L. Mendel Rivers at the Dedication of the U.S. Naval Supply Center, Charleston, S.C.

EXTENSION OF REMARKS

OF

HON. WILLIAM H. BATES

OF MASSACHUSETTS

IN THE HOUSE OF REPRESENTATIVES
Thursday, September 2, 1965

Mr. BATES. Mr. Speaker, under unanimous consent of the House, I am pleased to insert in the CONGRESSIONAL RECORD the address delivered by the distinguished chairman of the House Armed Services Committee at the dedication of the new U.S. Naval Supply Center at Charleston, S.C.

It was my pleasure to be present during this ceremony, and I think all the

Members will be interested in reading Chairman L. MENDEL RIVERS' remarks. His message was preceded by a stirring address by the Chief of the Bureau of Supplies and Accounts, Rear Adm. Herschel J. Goldberg.

The dedication ceremony took place on September 1, which also happened to be the first day the new pay increase went into effect for members of the uniformed

services. In addition, it was the 27th wedding anniversary of our distinguished colleague from South Carolina.

I was impressed with Chairman RIVERS' remarks. I was impressed with the new supply center and, as always, I was impressed with the dedication and motivation of the men who devote themselves to the tedious but indispensable tasks of keeping our fleet ready for any type of combat at all times.

And, of course, it is obviously gratifying to me and to the members of the House Armed Services Committee that an occasion such as this should take place on the same day that the members of our Armed Forces become entitled to a long overdue, highly deserved, but in some areas a still inadequate, pay increase.

I am, of course, delighted that the President saw fit to sign the pay bill which was conceived by the House Committee on Armed Services, was written by the House Committee on Armed Services, reported by the House Committee on Armed Services, and which passed the House of Representatives and, as modified, by the Senate, unanimously. I still believe the original House bill was better in some respects than the bill that became law, but considering the fact that our bill provided an overall increase of 10.6 percent and the final version was 10.4 percent, I don't think we did too badly.

It is a wonderful thing to be here in an atmosphere of efficiency-an atmosphere of determination-an atmosphere of confidence an atmosphere of patriotism. It is refreshing in many ways to leave, for even

a day, an atmosphere that is commingled with dedication, offset by the voices of appeasement-an atmosphere of victory now, dulled by those who clamor for negotiation, even knowing it must be at the price of surrender.

I doubt whether there is anyone within the sound of my voice, including those whose loved ones are now serving in South Vietnam, who would recommend or even give a second thought to the possibility of a negotiated peace in South Vietnam if it would lead to the eventual takeover of all of southeast Asia by the Chinese Communists.

Here in Charleston, and particularly at this naval base, we all speak the same language— the language of victory-the language of

pride in America.

And what could be more fitting than to dedicate this new naval supply center to the memories of two flag officers, John Jerome Gaffney and Samuel McGown, who

served their Nation with distinction and brought great honor to their native State of South Carolina?

helped develop in Charleston an ability that In many ways these men brought to or not only strengthened our naval activities in this area, but made such a lasting impression on officials in Washington that they turned more and more to Charleston for the difficult task of supplying the Atlantic Fleet. I know the records of these two great and

distinguished South Carolinians and naval daily tasks here, for they achieved high rank and high positions of responsibility during a period of our history when high rank was a rare attainment.

officers will inspire those who perform their

I do not mean to imply that it is easy today to become an admiral, but let's say that the odds are a little better today than they were when Admiral Gaffney and Admiral

McGowan served.

I hope that those who serve here will be always conscious of the vital role they play

Admiral Goldberg, Admiral Dorsey, Admiral Batchellor, Captain Palmer, Captain Stern, distinguished guests, ladies and gentlemen, I am indeed grateful, Admiral Goldberg, for your introductory remarks.

I think it goes without saying that I have a very personal interest in this dedication ceremony, not just because it is in my congressional district, not just because it will enhance our fleet readiness, and particularly our Polaris capability, but because it strengthens beyond the shadow of a doubt a prophecy that I made several years ago when I said that Charleston would become the nuclear deterrent capital of the free world.

the defense of the free world.

Fleet readiness and logistic support do not have the drama and the glory that are the attractions of other branches of the Navy or of the other services.

You can't charge a machinegun nest with a voucher or a requisition.

You can't bomb a bridge in South Vietnam with a specification.

You can't eliminate a Vietcong guerrilla with a computer.

But without these items, there could be no victories.

As you know, I am not endeared to computers and some of the results they produce, but I am fully aware of the important part they play in providing the support

I have just touched upon a few of the items that fall within the responsibility of this supply center. Multiply that by many thousands of responsibilities and the complexity of the supply system then begins to unravel itself, not in clarification, but in magnitude.

I would remind you as I have in the past that this is the nuclear deterrent capital of the free world. I was taken to task for making that statement by well-meaning individuals who, observing the ostrich with his head in the sand, believe they can block out

the realities of life.

Well, I can assure you of one thing. I am not a diplomat and I never claimed to be one. I am not a strategist and I certainly don't claim to be one. And I suppose there are those who don't believe I am a legislator, although I do claim to be one.

But there is one thing I claim without fear of even honest contradiction; it is that I am a realist, a pragmatist, if you will. And I say to you once again, and I will repeat it over and over again, that Charleston, this navy yard, our air station, in fact the entire environs of Charleston, constitute one of the great assets in the arsenal of democracy.

There is no city in the world with more loyal employees. There is no city with more dedicated members of the uniformed services. And there is no city in the world that can compare with the people of Charleston and the surrounding counties in their dedication to the principles of Americanism, the principles of constitutional government, and the conviction that our way of life must and will prevail.

The Asian Development Bank

EXTENSION OF REMARKS

OF

HON. RICHARD T. HANNA

OF CALIFORNIA

IN THE HOUSE OF REPRESENTATIVES Thursday, September 2, 1965

Mr. HANNA. Mr. Speaker, 2 weeks Mr. Speaker, 2 weeks ago, I inserted in the RECORD some material relating to the Mekong River Basin development project. Today, in keeping with efforts to bring important developments in the Pacific community to the attention of my fellow Members of Congress and in hopes of encouraging decisive, positive action in this area, I should like to set forth my own findings surrounding the establishment of the Asian Development Bank.

It is clear to me that the Bank offers the Pacific community an opportunity that is rich with promise. It is an imIt is an important institutional structure by which we can encourage the development of Asia by Asians on a self-help, businesslike banking basis. It is an institution that will serve the common interests and help achieve the unified goals of the Pacific community of free nations peaceful, purposeful, and rapid economic

development of Asia which will dramatically better the living standards of Asian Peoples and enormously benefit all peoples through increased trade, tourism, and cultural exchange.

The Asian Development Bank is an opportunity which we must not let pass. Following is a detailed and, we trust, helpful discussion on the Bank:

HISTORY OF THE ASIAN DEVELOPMENT BANK

Since its formation in June of 1945 the United Nations has been working toward United Nations has been working toward "peaceful change-the establishment of universal human rights, the guidance of universal human rights, the guidance of new societies into political self-determination, the lifting of old economies to decent standards of living, so that indidecent standards of living, so that individual men, women, and children in these societies may know freedom from servitude, want, illness and illiteracy." In tude, want, illness and illiteracy." In 1952 the General Assembly in order to further the achievement of these prinfurther the achievement of these principles formed three regional agencies ciples formed three regional agencies one of which was the Economic Commission for Asia and the Far East. The formation of this Commission was the first of the United Nations' many and continuing efforts to promote regional continuing efforts to promote regional identity and cooperation-a community spirit-among the nations of Asia and the the Far East. As ECAFE membership expanded and the organization matured, the guiding concept of this region's development began to take form. Small in size and a scattered diversity of resources makes it virtually mandatory for the members of the region to correlate their development plans and look toward interregional cooperation in industrialization and markets. It is this conception of economic interdependence and cooperation in development which underlies ECAFE's many activities.

ECAFE has established a number of objectives for promoting accelerated regional economic cooperation which are significant to note in the context of the present economic activities in southeast Asia: First, measures to promote intraregional trade, e.g., special incentives, reduction of trade barriers, ECAFE codes of trade practice; second, regional cooperation in commodity production and export; third, regional cooperation in the field of shipping and ocean freight rates; and fourth, regional cooperation in the field of industrial development. These objectives have been formulated in three regional projects: an Asian road system, the Lower Mekong River Basin project and the Asian Development Bank. Like the United Nations itself, ECAFE has only the power assigned to it by the consent of its participating members. As a result, the organization undertakes many surveys, but takes decisive action only when backed by the cisive action only when backed by the dynamic force of popular opinion, often triggered by one or more of its more

This

affluent and developed members. propulsive force was the U.S. role in the Asian Development Bank. President Johnson's endorsement was the extra push needed to organize the proponents of the bank for a commitment to action. of the bank for a commitment to action. Both Japan and India have been anxious to see the formulation of ECAFE's Bank idea into a functioning institution since its proposal by the minister's conference

in Manila in the fall of 1963. By October of 1964, the Asian members of ECAFE had built up enough steam to vote an ad hoc committee of nine specialists to investigate the possibilities of an Asian Development Bank and to draw up a tentative charter for the other ECAFE members to study for an insight into what the term "Asian Development Bank" actually encompassed.

It was not, however, until after President Johnson's April 7 speech at Johns

Hopkins that the Asian members of

ECAFE became acutely aware that the idea was taking hold. The firm act of the United States offering $200 million in

capital for the formation of the Bank was just the impetus necessary to push the Asians to actual monetary commitments. Japan offered to match the U.S. offer, and several of the other members million making a total capital commitof ECAFE collectively contributed $200 ment to date of $600 million.

Mr. Eugene R. Black, the President's special emissary on Asian economic development and former President of the for modifications of the proposed charter World Bank, presented U.S. suggestions

at the June meeting of the ECAFE committee of nine experts in Bangkok. Representatives at this conference subsequently paid visits to all of the regional and nonregional ECAFE members and to the Committee of the Organization for Economic Cooperation and Development the northern European trade community organization-to review the present Bank proposal and enlist their support.

The whole Committee, which at present represents nine Asian ECAFE coun

tries, convened again in Bangkok early

in August to reconsider the charter in the light of the consultations. This same group will compile a draft charter which will be circulated to all interested governments. The interested governments are expected to convene, probably in October of this year, for subsequent negotiations on the draft charter. When these negotiations are completed, a ministerial session, probably to be held in December of 1965, has been proposed for the initialing charter is satisfactory, approval of the of the articles of agreement. If the draft Congress will be sought for U.S. participation.

Generally, the idea of an Asian Development Bank has been well received dia's interest has been tentative, howby its potential benefactors. Camboever, while the North Vietnamese have condemned the proposal as "President Johnson's rotten carrot." Indonesia will not receive a visit due to her recent withdrawal from the United Nations and simultaneously from ECAFE which has sponsored the Bangkok meetings.

POTENTIAL OF THE BANK

The theme of the Asian Development Bank from the time of the conception

of its basic principle by ECAFE in 1963

to the present has been "a long-range development plan for all of southeast Asia, led by Asians, to improve the life of Asians." This concept is the strength of the proposed Bank, both for ratification of the charter and for a respected institution. The Bank as it stands today institution.

will be Asian in character. It stems from Asian initiative. It will be located in Asia and have a predominantly Asian staff. It will have substantial Asian capital. In fact, the basic principle of an Asian bank for Asians is being carried through by the ratio of subscription of the $1 billion capital-60 percent subscribed by the regional members and 40 percent by the nonregional members including the United States, Western Europe, and possibly the Soviet Union.

The U.S. Government feels that a welldesignated Asian Development Bank which has substantial financial and other support within the region could be extremely useful in promoting regional and subregional development and in focusing the major sources of capital and technical assistance on national development programs. Taken in this light, the role of the Asian Development Bank is not just a mere lending institution; it is also a catalyst for regional economic cooperation by Asians with Asians. The Bank promises to be a successful way for Asia to provide her our own economic leadership for her own less-developed constituents.

PROPOSAL FOR AN ASIAN DEVELOPMENT BANK

The financial role of the Asian Development Bank should be twofold: one to utilize its own capital and the other to use its position to encourage private as well as governmental financing for projects within the region. In addition the Bank should be in a unique position to stimulate regional and subregional cooperation through its proposed nonlending functions of a technical assistance nature. The type of bank financing suggested by the ECAFE group of nine experts is geared toward projects contributing effectively toward sound and harmonious economic development of the region including regional, subregional, and national projects. Projects which should, according to Mr. Black, normally include the fields of industry, agriculture, transportation, communications, and mining, as well as financial assistance to national and subregional development banks. The expert group and Mr. Black agree that large infrastructure projects should not normally be financed from the Bank's own resources, although the Bank might contribute jointly with other donors in the financing of such projects. In addition the Bank would participate in any review of country development plans which were initiated or accepted by the countries of the region. The Bank should do what it can to promote private investment within the region.

Payments would be made in five installments, the initial installment with the establishment of the Bank, thus the payment of capital subscriptions would be complete in 4 years.

It is the general feeling of the administration that the participation of nonregional ECAFE members should be by, first, participation in share capital; and second, opening of capital markets to the sale of Bank bonds, with the provisos sale of Bank bonds, with the provisos that each country's liability for the Bank's borrowing is limited to the amount if its callable capital and subject to a provision of prior agreement before the Bank can sell bonds in that particular country.

Bank investments should be in projects which are economically and technically sound and capable of producing fairly rapid repayment. A small portion of the Bank's paid-in capital should be set aside for soft loan purposes.

LENDING TERMS

The Asian countries are proposing that the bulk of the Bank's regular capital should be loaned on hard terms similar to those of the International Bank for Reconstruction and Development. The IBRD's terms are currently a unitary 51⁄2 percent interest rate for all countries. Loans should be allowed maturities up to 30 years and grace periods ties up to 30 years and grace periods varying normally up to 6 years, generally in relation to the economic situation in the country and the country's debt servicing capacity and the type of project. The consultative committee has proposed that soft loans from regular capital will be made only in special circumstances on terms similar to those of the International Development Association-IDA. The IDA's soft loan terms are currently three-fourths of 1 percent interest, 10-year grace, and a 50-year repayment. Applicants for soft loans with the lowest debt servicing prospects and limited access to substantial quantities of concessional assistance sources such as IDA, AID, and certain consortium members, will be given due account. Subject to the view of the members up to 10 percent of the total paid-in capital could be devoted to this soft window.

In addition to these soft loan terms provided by the Bank charter, the United States at the June meeting in Bangkok proposed that a Southeast Asian Regional Development Fund be established with the Bank bearing the responsibility for the selection of the projects and the administration of these funds which are held in trust. These funds distributed by the Bank would include $100 million contributed by the United States, subject to congressional approval, and sufficient participation by other members to make the fund a truly multilateral operation. Contributions to the Fund could be tied to U.S. procurement and could be used for hard or soft loans or grants for projects of a regional or subregional character.

MEMBERSHIP IN THE BANK

The United States favors full membership in the Bank for nonregional members of ECAFE. Ninety percent of the Ninety percent of the voting shares, in the view of the United States, should be distributed proportionately to the size of capital contribu

tions. On this basis over 60 percent of the voting rights would still be vested in regional members. The group of nine experts suggested that the votes in the Bank should be weighted in proportion to the size of the country's subscription and that only the lower end of the 5 to 20 percent range should have votes distributed equally. This This arrangement would give regional members over 60 percent of the total votes. Regional members include Japan, Australia, and New Zealand.

ORGANIZATION AND MANAGEMENT OF THE BANK

The Board of Governors of the Bank should probably meet annually, make general policy, and delegate detailed policymaking and executive control to the Board of Executive Directors and the President who should be Asian. The best plan is felt to be that the Board should be made up of 10 members, 7 from the regional countries. It is anticipated, however, that a formula will be used in distributing Board positions which will enable the United States, as a substantial shareholder, to hold as a permanent seat one of the three places on the Board set aside for nonregional participants.

It is felt that the Bank should certain

ly collaborate closely with the national development banks or institutions where this may assist in effective channeling the Bank's resources in the interests of economic development.

PROBLEMS AND IMPLICATIONS

Although the national press has published comparatively little on the subject of the Asian Development Bank since President Johnson's April 7 speech in Baltimore, it has focused attention on some of the implications of the Bank proposal and potential problems.

There has been much speculation since April as to how the Congress would respond to the President's commitments to the Bank. To counteract this criticism it has been suggested that a delegation of Congressmen be brought into the active formation of the Bank to help quell opponents of the President's plan in Congress.

Other newspaper reports have conjectured that the U.S. offer to Russia to become a charter member of the Asian Bank is a device to intensify the split between Russia and Red China.

the administration is dangling the Bank Finally, other observers point out that on a string before North Vietnam, by implying that if hostilities should cease they too could participate in the institution. Hanoi has responded indicating that she saw this lure aspect clearly by calling the Bank, "President Johnson's rotten carrot."

Without arguing the merit or lack thereof of these and other implications and speculations, it is safe to say that

the encouragement and support of such an institution is a dramatic step for our foreign policy in the Far East. It also marks a constructive and we believe preferable alternative to post-World War II American aid.

WORKING BIBLIOGRAPHY

"Asia Aid Request: Official Transcript of President Johnson's News Conference at the White House," the Washington Post, Wednesday, June 2, 1965.

Bell, David E.: "Regional Cooperation in South and Southeast Asia," a speech

HOUSE OF REPRESENTATIVES

FRIDAY, SEPTEMBER 3, 1965 The House met at 12 o'clock noon.

The Chaplain, Rev. Bernard Braskamp, D.D., used this verse of Scripture: Philippians 4:6: In everything by prayer and supplication with thanksgiving let your requests be made known unto God.

Almighty God, who art everywhere, we lift up our hearts to Thee in worship and give Thee thanks for this fellowship of God-fearing men and women with whom we share Thy mercies and adore Thy name.

May we be of one heart with all who seek Thee, of one communion with all who love Thee, and of one purpose with all who serve Thy holy will in faithfulness and joy.

Teach us that we are one, united with Thee and with one another in one nature, one duty, and one destiny, and may we all strive to be messengers of Thy mercy, ministers of Thy truth, and doers of good to our fellow men in their struggles and sorrows.

Grant that the day may speedily come when humanity shall feel the throb of a new power and the thrill of a new joy, liberated among men and nations and causing that change in their inner life, which is more brotherly and Christlike.

Help us to believe that the good of mankind does actually exist, and the injury of one is the hurt of all. Inspire us more with that down-reaching love

which gives itself gladly and sacrificially for the sake of needy and wandering hu

manity.

Hear us in Christ's name. Amen.

THE JOURNAL

The Journal of the proceedings of yesterday was read and approved.

MESSAGE FROM THE SENATE A message from the Senate by Mr. Arrington, one of its clerks, announced that the Senate had passed without amendment bills of the House of the following titles:

H.R. 1402. An act for the relief of Dr. Jorge Rosendo Barahona;

H.R. 1443. An act for the relief of Mrs. Olga Bernice Bramson Gilfillan;

delivered at the International Development Conference, Washington, D.C., May 26, 1965.

Black, Eugene R.: Statement on southeast Asia economic and social development presented to the House of Representatives Banking and Currency Committee on July 29, 1965.

Black, Eugene R.: Statement to the meeting of the consultative committee of experts on the Asian Development Bank, Bangkok, Thailand, June 28, 1965. "Inter-American Development Bank: Basic Information," Inter-American De

velopment Bank, Washington, D.C., October 31, 1964.

Johnson, Lyndon Baines: Remarks of the President at Shriver Hall Auditorium, April 7, 1965, Johns Hopkins University, Baltimore, Md.

Rostow, W. W.: "Economic Development in Asia," the Department of State bulletin, volume 52, May 31, 1965, publication No. 7898.

United Nations Economic Commission for Asia and the Far East, report of the ministerial conference on Asian economic cooperation, January 6, 1964.

H.R. 2678. An act for the relief of Joo Yul Kim;

H.R. 2871. An act for the relief of Dorota Zytka;

H.R. 3292. An act for the relief of Consuelo Alvarado de Corpus;

H.R. 5024. An act to amend titles 10 and 14, United States Code, and the Military Personnel and Civilian Employees' Claims Act of 1964, with respect to the settlement of claims against the United States by members of the uniformed services and civilian officers and employees of the United States for damage to, or loss of, personal property incident to their service, and for other purposes;

H.R. 6719. An act for the relief of Mrs. Kazuyo Watanabe Ridgely; and

H.R. 9570. An act to amend the Federal Firearms Act to authorize the Secretary of the Treasury to relieve applicants from certain provisions of the act if he determines that the granting of relief would not be contrary to the public interest, and that the applicant would not be likely to conduct his operations in an unlawful manner.

The message also announced that the Senate had passed, with amendments in which the concurrence of the House is requested, bills and a joint resolution of the House of the following titles:

H.R. 647. An act to amend the act of March 3, 1901, to permit the appointment of new trustees in deeds of trust in the District of Columbia by agreement of the parties;

H.R. 3128. An act for the relief of Angelo Iannuzzi; and

H.J. Res. 504. Joint resolution to facilitate the admission into the United States of certain aliens.

The message also announced that the Senate agrees to the amendments of the House to a joint resolution of the Senate

of the following title:

S.J. Res. 53. Joint resolution to establish a tercentenary commission to commemorate the advent and history of Father Jacques Marquette in North America, and for other purposes.

The message also announced that the Senate had passed bills of the following titles, in which the concurrence of the House is requested:

PRAISED BY FINANCIAL WRITER DISCREDITING FEDERAL RESERVE CHAIRMAN MARTIN'S 1929 WARNING

Mr. PATMAN. Mr. Speaker, I ask unanimous consent to extend my remarks at this point in the RECORD and include a statement by J. A. Livingston.

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

Texas?

There was no objection.

Mr. PATMAN. Mr. Speaker, financial writer J. A. Livingston's column appearing in the Washington Post's September 1 edition is a refreshing refutation of Federal Reserve Chairman Martin's famous prediction last June that a 1929 type economic bust may be just around the corner.

In contrast, Mr. Livingston accurately emphasizes the important differences between 1929 and 1965, rather than finding all sorts of disquieting similarities. Livingston lays a large part of the blame for depression miseries on President Hoover's do-nothing policy foisted upon him by Benjamin Anderson of the Chase National Bank and others. He denies that this would happen under present day economic policies.

Livingston's explanation is good as far as it goes. The one great flaw in his analysis is, I believe, his omission of the fact that the Government between 1929 and 1933 intentionally reduced the Nation's money supply by an unbelievable 25 percent. So the Government, through the Federal Reserve-contrary to Living

ston-was not merely on the sidelines, but was actively pursuing deflationary policies which resulted in history's greatest economic catastrophe.

S. 779. An act for the relief of Henryka Lyska;

S. 803. An act for the relief of Ching Zai Yen and his wife, Faung Hwa Yen;

S. 1168. An act for the relief of Timothy

William O'Kane; and

ever, that the general level of interest rates is now higher than at any period since the early 1930's. There is no question that wise Government policies and wise private decisions together are responsible for our sparkling economic performance. I would hope and pray that the costly and tragic mistakes of the past will not be repeated, but with the independence-obsessed Federal Re