Page images
PDF
EPUB

port, was referred to the Committee on Government Operations. ANNUAL REPORT OF CONFERENCE OF STATE

SOCIETIES The VICE PRESIDENT laid before the Senate a communication from the Conference of State Societies, Washington, D.C., transmitting, pursuant to law, the annual report of the conference for the fiscal year 1959; which, with the accompanying report, was referred to the Committee on the District of Columbia. TEMPORARY INCREASES IN RATES OF BASIC

SALARY FOR POSTAL EMPLOYEES The VICE PRESIDENT laid before the Senate a communication from the Postmaster General, transmitting a draft of proposed legislation to make permanent the temporary increases in rates of basic salary provided for employees in the postal field service; which, with the accompanying paper, was referred to the Committee on Post Office and Civil Service. USELESS PAPERS IN GOVERNMENT AGENCIES

AND DEPARTMENTS The VICE PRESIDENT laid before the Senate a communication from the Administrator of General Services Administration, transmitting, pursuant to law, a report of the Acting Archivist of the United States on list of papers in various departments and agencies of the Government, recommended for disposition, which appear to have no permanent value or historical interest; which, with the accompanying papers, was referred to a Joint Select Committee on the Disposition of Papers in the Executive Departments; and

The VICE PRESIDENT appointed Mr. JOHNSTON of South Carolina and Mr. CARLSON as members of the committee on the part of the Senate.

Ordered, That the Secretary notify the House of Representatives thereof.

PETITIONS The VICE PRESIDENT laid before the Senate the following petitions, etc., which were referred as indicated:

Petitions of T. H. Latimer, Chicago, Ill., as follows:

A petition praying an investigation of the nature of war; to the Committee on Armed Services; and

A petition praying an investigation of all tax-exempt groups which advocate racial and religious agitation; to the Committee on Finance.

resolution (S. Res. 221) authorizing the Committee on Banking and Currency to investigate certain matters pertaining to public and private housing, reported it without amendment and submitted a report (No. 1023) thereon; and

Ordered, That it be referred to the Committee on Rules and Administration.

Mr. ROBERTSON, by unanimous consent, from the Committee on Banking and Currency, to whom was referred the resolution (S. Res. 220) providing additional funds for the Committee on Banking and Currency, reported it without amendment and submitted a report (No. 1025) thereon; and

Ordered, That it be referred to the Committee on Rules and Administration. INTRODUCTION OF BILLS AND A

JOINT RESOLUTION Bills and a joint resolution were introduced by unanimous consent, severally read the first and second times and referred as follows:

By Mr. WILEY: S. 2809. A bill to amend section 203 of the Social Security Act to increase the amount of earnings individuals are permitted to earn without suffering deductions from their benefits; to the Committee on Finance.

By Mr. JAVITS (for himself and

Mr. AIKEN): S. 2810. A bill amending the National Labor Relations Act with respect to emergency labor disputes; to the Committee on Labor and Public Welfare.

By Mr. MAGNUSON (by request) : S. 2811. A bill to amend certain sections of title 14, United States Code, relating to personnel matters in the U.S. Coast Guard, and for other purposes; and

S. 2812. A bill to amend the Communications Act of 1934 with respect to the painting and illumination of radio towers; to the Committee on Interstate and Foreign Commerce.

By Mr. BYRD of Virginia (for

himself and Mr. WILLIAMS of

Delaware): S. 2813. A bill to provide for more effective management of the public debt by removing the remaining interest rate restrictions on public issues of Government securities, and for other purposes; to the Committee on Finance.

By Mr. HUMPHREY (for himself,

Mr. Hart, Mr. McNAMARA, Mr.
DOUGLAS, Mr. CLARK, Mr. Mc-
CARTHY, Mr. GOLDWATER, and

Mr. FONG): S. 2814. A bill to assure individuals residing in the various States of the right to register in order that they may exercise their right to vote for President and Vice President and for Members of the Senate and House of Representatives regardless of race, religion, color, or national origin; to the Committee on Rules and Administration.

By Mr. ELLENDER: S. 2815. A bill for the relief of Ioannis Katopodis (also known as John Cadis); to the Committee on the Judiciary.

By Mr. ALLOTT (for himself, Mr.

CASE of South Dakota, Mr.
CHAVEZ, Mr. NEUBERGER, Mr.
LONG of Hawaii, Mr. KUCHEL,
Mr. ENGLE, Mr. GOLDWATER, and

Mr. FONG): S. 2816. A bill to authorize loans for the design and construction of sea and brackish water conversion plants, and for other purposes; to the Committee on Interior and Insular Affairs.

By Mr. BARTLETT: S. 2817. A bill for the relief of Josepn R. Paquette; to the Committee on the Judiciary.

S. 2818. A bill to provide that credit may be allowed under the Civil Service Retirement Act for service performed by certain persons in American Samoa; to the Committee on Post Office and Civil Service.

By Mr. GREEN: S. 2819. A bill directing the Secretary of the Navy to convey to the city or Newport, R.I., certain property situated in Newport known as the government landing; to the Committee on Armed Services.

By Mr. ENGLE: S. 2820. A bill to authorize the Secretary of the Interior to construct, operate, and maintain the Stanislaus River division, Central Valley project, California, under Federal reclamation laws; to the Committee on Interior and Insular Affairs,

By Mr. LAUSCHE: S. 2821. A bill for the relief of Kristina Selan; to the Committee on the Judiciary.

By Mr. EASTLAND: S. 2822. A bill for the relief of LOW Wing Quey (Kwai); to the Committee on the Judiciary.

By Mr. NEUBERGER (for him

self, Mr. MANSFIELD, Mr. KENNEDY, Mr. MORSE, Mr, MURRAY,

and Mr. HART): S. 2823. A bill to provide for Federal contribution to the cost of election campaign of candidates for Federal offices, conditioned upon effective control and publication of other sources of financing such campaigns; to encourage small individual campaign contributions and to reduce the importance of large contributions in Federal elections; to provide Federal financial assistance for State voters' and campaign pamphlets; and for other purposes; to the Committee on Rules and Administration.

By Mr. BIBLE: S. 2824. A bill to make certain benefits provided by the Policemen and Firemen's Retirement and Disability Act Amendments of 1957, approved August 21, 1957, applicable to widows and certain surviving children of former members of the Metropolitan Police force, the Fire Department of the District of Columbia, the U.S. Park Police force, the White House Police force, and the U.S. Secret Service Division, who were retired or who died in the service of any of the said organizations prior to the effective date of such act of August 21, 1957; to the Committee on the District of Columbia.

A memorial of the student senate of the University of Massachusetts, Amherst, Mass., remonstrating against the disclaimer affidavit required of aid applicants under the National Defense Education Act; and

A petition of G. C. Skinner, St. Petersburg, Fla., praying an investigation of the employees' pension trust fund of the American Telephone & Telegraph Co.; to the Committee on Labor and Public Welfare.

[ocr errors]

REPORTS OF COMMITTEE ON BANKING AND

CURRENCY Mr. SPARKMAN, by unanimous consent, from the Committee on Banking and Currency, to whom was referred the

[ocr errors]
[ocr errors][ocr errors][ocr errors][ocr errors][ocr errors]

By Mr. BIBLE (by request) : S. 2825. A bill to amend the Life Insurance Act of the District of Columbia approved June 19, 1934, as amended; to the Committee on the District of Columbia.

By Mr. SYMINGTON: S. 2826. A bill for the relief of Richard J. Holt and Alice Bergen Holt; to the Committee on the Judiciary.

By Mr. KUCHEL (for himself,

Mr. MORSE, Mr. CHAVEZ, Mr.
ENGLE, Mr. GRUENING, Mr.
GOLDWATER, Mr. MANSFIELD,
Mr. DIRKSEN, and Mr. YAR-

BOROUGH): S. 2827. A bill to provide for the presentation by the United States to the people of Mexico of a monument commemorating the 150th anniversary of the independence of Mexico, and for other purposes; to the Committee on Foreign Relations.

By Mr. JOHNSTON of South

Carolina: S. 2828. A bill to authorize the Postmaster General to waive collections on raised money orders cashed by banks and other business concerns, and for other purposes; to the Committee on Post Office and Civil Service.

By Mr. HARTKE: S. 2829. A bill to amend section 2 of the act of May 13, 1954, so as to provide for the appointment of one additional member to the Advisory Board of the St. Lawrence Seaway Development Corporation; to the Committee on Foreign Relations.

By Mr. HILL (for himself, Mr.

AIKEN, Mr. MURRAY, Mr. EAST-
LAND, Mr. JORDAN, Mr. GRUEN-
ING, Mr. YARBOROUGH, Mr. RAN-
DOLPH, Mr. MORSE, Mr. WIL-
LIAMS of New Jersey, Mr. Mc-
NAMARA, Mr. CLARK, Mr. JACK-
SON, Mr. KENNEDY, Mr. Ke-
FAUVER, Mr. DOUGLAS, Mr. FUL-
BRIGHT, Mr. HART, Mr. LONG of
Louisiana, Mr. SPARKMAN,

Mr.
SYMINGTON, Mr. MANSFIELD, Mr.
GREEN, Mr. HENNINGS, Mr. CHA-
VEZ, Mr. McCARTHY, Mr. HUM-
PHREY, Mr. BYRD of West Vir-
ginia, Mr. CARROLL, Mr. ENGLE,
Mr. CANNON, Mr. COOPER, Mr.
LONG of Hawaii, Mr. MAGNUSON,
Mr. JOHNSTON of South Caro-
lina, Mr. MONRONEY, Mr. Jav-
ITS, Mr. PROUTY, Mr. YOUNG of
Ohio, Mr. BUSH, Mr. MUNDT,
Mr. BIBLE, Mr. McGEE, Mr.
Moss, Mr. BARTLETT, Mr. BEN-
NETT, Mr. PASTORE, Mr. DODD,
Mr. KUCHEL, Mr. CHURCH, Mr.
CASE of South Dakota, and Mr.

SALTONSTALL): S. 2830. A bill to amend the Library Service Act in order to extend for 5 years the authorization for appropriations, and for other purposes; to the Committee on Labor and Public Welfare.

By Mr. COTTON: S. 2831. A bill to strengthen State governments, to provide financial assistance to States for educational purposes by returning a portion of the Federal taxes collected therein, and for other purposes; and

S. 2832. A bill to strengthen State governments, to provide financial assistance to States for educational purposes by returning a portion of the Federal taxes collected therein, and for other purposes; to the Committee on Labor and Public Welfare.

By Mr. FULBRIGHT (by re

quest): S.J. Res. 149. Joint resolution to authorize appropriations incident to U.S. participation in the International Bureau for the Protection of Industrial Property; to the Committee on Foreign Relations.

NATIONAL JUNIOR ACHIEVEMENT WEEK

Mr. JOHNSON of Texas (for himself and Mr. DIRKSEN), by unanimous consent, submitted the following concurrent resolution (S. Con. Res. 81); which was referred to the Committee on the Judiciary:

Whereas it was the initiative, the sense of individual dignity, and the determination to mold their own futures that motivated those who founded this Nation; and

Whereas Junior Achievement, Inc., through its learning-by-doing program, is inculcating those ideals in American youth by helping them to set up and operate their own small-scale business enterprises; and

Whereas their experience in running Junior Achievement companies will provide these young people with a heightened understanding of the privileges and duties of citizenship and better prepare them to assume the responsibilities of community leadership; and

Whereas thousands of American businessmen voluntarily give unstintingly of their time, their counsel, and their experience for the benefit of the members of Junior Achievement; and

Whereas it is understood that the week beginning January 31, 1960, and ending February 6, 1960, will be observed as National Junior Achievement Week: Now, therefore, be it

Resolved by the Senate (the House of Representatives concurring), That the President of the United States is authorized and requested to issue a proclamation designating the week of January 31, 1960, through February 6, 1960, as National Junior Achievement Week and urging all citizens of our country to salute the activities of Junior Achievers and their volunteer adult advisers through appropriate ceremonies. EXTENSION OF JOINT COMMITTEE ON WASH

INGTON METROPOLITAN PROBLEMS Mr. BIBLE, by unanimous consent, submitted the following concurrent resolution (S. Con. Res. 82); which was referred to the Committee on the District of Columbia:

Resolved by the Senate (the House of Representatives concurring), That the Joint Committee on Washington Metropolitan Problems created by House Concurrent Resolution 172, agreed to August 29, 1957, is hereby continued through September 30, 1960.

SEC. 2. The Joint Committee is hereby authorized to make expenditures from

February 1, 1960, through September 30, 1960, which shall not exceed $25,000 to be paid from the contingent fund of the Senate upon vouchers approved by the chairman of the joint committee. INVESTIGATION OF CERTAIN MATTERS BY

COMMITTEE ON INTERSTATE AND FOREIGN
COMMERCE

Mr. MAGNUSON, by unanimous consent, submitted the following resolution (S. Res. 243); which was referred to the Committee on Interstate and Foreign Commerce:

Rcsolved, That the Committee on Interstate and Foreign Commerce, or any duly authorized subcommittee thereof, is authorized under sections 134(a) and 136 of the Legislative Reorganization Act of 1946, as amended, and in accordance with its jurisdictions specified by rule XXV of the Standing Rules of the Senate, to examine, investigate, and make a complete study of any and all matters pertaining to

(1) interstate commerce generally;
(2) foreign commerce generally;
(3) maritime matters;
(4) interoceanic canals;
(5) transportation policy;

(6) domestic surface transportation, including pipelines;

(7) communications;
(8) Federal power matters;
(9) civil aeronautics; and

(10) fisheries and wildlife. Sec. 2. For the purposes of this resolution, the committee, from February 1, 1960, to January 31, 1961, inclusive, is authorized (1) to make such expenditures as it deems advisable; (2) to employ, upon a temporary basis, technical, clerical, and other assistants and consultants: Provided, That the minority is authorized to select one person for appointment, and the person so selected shall be appointed and his compensation shall be so fixed that his gross rate shall not be less by more than $1,200 than the highest gross rate paid to any other employee; and (3) with the prior consent of the heads of the departments or agencies concerned, and the Committee on Rules and Administration, to utilize the reimbursable services, information, facilities, and personnel of any of the departments or agencies of the Government.

Sec. 3. The committee shall report its findings, together with its recommendaticns for legislation as it deems advisable, to the Senate at the earliest practicable date, but not later than January 31, 1961.

Sec. 4. Expenses of the committee, under this resolution, which shall not exceed $ shall be paid from the contingent fund of the Senate upon vouchers approved by the chairman of the committee.

]

[ocr errors]

STUDY OF TRANSPORTATION POLICIES IN

THE UNITED STATES Mr. MAGNUSON, by unanimous consent, submitted the following resolution (S. Res. 244); which was referred to the Committee on Interstate and Foreign Commerce:

Whereas a sound national transportation system is essential to the continued

not be less by more than $1,200 than the highest gross rate paid to any other employee; and (3) with the prior consent of the heads of the departments or agencies concerned, and the Committee on Rules and Administration, to utilize the reimbursable services, information, facilities, and personnel of any of the departments or agencies of the Government.

Sec. 3. The committee shall report its findings, together with its recommendations for legislation as it deems advisable, to the Senate at the earliest practicable date, but not later than January 31, 1961.

SEC. 4. Expenses of the committee, under this resolution, which shall not exceed $

shall be paid from the contingent fund of the Senate upon vouchers approved by the chairman of the committee.

On motion by Mr. MAGNUSON, Resolved, That the Senate insist upon its amendment to the said bill, disagreed to by the House of Representatives, and agree to the conference asked by the House on the disagreeing votes of the two Houses thereon.

Ordered, That the conferees on the part of the Senate be appointed by the Vice President; and

The VICE PRESIDENT appointed Mr. MAGNUSON, Mr. PASTORE, Mr. THURMOND, Mr. ENGLE, Mr. BUTLER, and Mr. Scott.

Ordered, That the Secretary notify the House of Representatives thereof.

economic development and defense of the United States; and

Whereas fair and equitable Federal policies are necessary to assure such a sound national transportation system; and

Whereas hearings held by the Surface Transportation Subcommittee of the Committee on Interstate and Foreign Commerce have disclosed there is urgent need for a comprehensive study of such transportation policy and related problems by the Congress, to the end that sound policies may be evolved: Now, therefore, be it

Resolved, That the Committee on Interstate and Foreign Commerce, or any duly authorized subcommittee thereof, is authorized under sections 134 (a) and 136 of the Legislative Reorganization Act of 1946, as amended, and in accordance with its jurisdiction specified by rule XXV of the Standing Rules of the Senate, to examine, investigate, and make a complete study of any and all matters pertaining to

1. the need for regulation of transportation under present-day conditions and, if there is need for regulation, the type and character of that regulation;

2. the area of Federal policy dealing with Government assistance provided the various forms of transportation and the desirability of a system of user charges to be assessed against those using such facilities;

3. the subject of the ownership of one form of transportation by another;

4. Federal policy on the subject of consolidations and mergers in the transportation industry;

5. policy considerations for the kind and amount of railroad passenger service necessary to serve the public and provide for the national defense;

6. the problems arising from action by the Interstate Commerce Commission in permitting the charge of more for a short than a long transportation haul over the same line in the same direction;

7. the adequacy of transportation service to and from rural communities in the United States, and the effects of the curtailment of such service in recent years upon the economy of such communities and of the Nation as a whole and upon the national defense and security; and

8. additional matters of Federal regulation (and exemption therefrom) and Federal promotional policy in regard to the various forms of transportation.

SEC. 2. For the purposes of this resolution the committee, from February 1,

1960, to January 31, 1961, inclusive, is authorized (1) to make such expenditures as it deems advisable; (2) to employ on a temporary basis, technical, clerical, and other assistants and consultants: Provided, That the minority is authorized to select one person for appointment, and the person so selected shall be appointed and his compensation shall be so fixed that his gross rate shall

ASSISTANCE TO SENATORS IN RECEPTION OF

FOREIGN DIGNITARIES Mr. FULBRIGHT, by unanimous consent, from the Committee on Foreign Relations, reported the following resolution (S. Res. 245) and submitted a report (No. 1024) thereon; which was referred to the Committee on Rules and Administration:

Resolved, That in order to assist the Senate properly to discharge and coordinate its activities and responsibilities in connection with participation in various interparliamentary institutions and to facilitate the interchange and reception in the United States of members of foreign legislative bodies and prominent officials of foreign governments, the Committee on Foreign Relations is authorized from February 1, 1960, through January 31, 1961, to employ one additional professional staff member to be paid from the contingent fund of the Senate at rates of compensation to be fixed by the chairman in accordance with the provisions of section 202(e) of the Legislative Reorganization Act of 1946, as amended.

SEC. 2. The Secretary of the Senate is authorized and directed to pay the actual and necessary expenses incurred in connection with activities authorized by this resolution and approved in advance by the chairman of the Committee on Foreign Relations, which shall not exceed $5,000 from February 1, 1960, through January 31, 1961, from the contingent fund of the Senate upon vouchers certified by the Senator incurring such expenses and approved by the chairman. PROGRAM OF ASSISTANCE TO CORRECT INEQUI

TIES IN THE CONSTRUCTION OF FISHING VESSELS

The VICE PRESIDENT laid before the Senate the message yesterday received from the House of Representatives, announcing its disagreement to the amend. ment of the Senate to the bill (H.R. 5421) to provide a program of assistance to correct inequities in the construction of fishing vessels and to enable the fishing industry of the United States to regain a favorable economic status, and for other purposes, and asking a conference with the Senate thereon.

CORRUPT PRACTICES IN FEDERAL ELECTIONS

The Senate resumed the consideration of the bill (S. 2436) to revise the Federal election laws, to prevent corrupt practices in Federal elections, and for other purposes.

The question being on agreeing to the amendments yesterday proposed by Mr. HENNINGS (for himself and Mr. KEATING) in various places in the bill,

Pending debate,

Mr. FREAR raised a question as to the presence of a quorum;

Whereupon

The PRESIDING OFFICER (Mr. GRUENING in the chair) directed the roll to be called;

When

Ninety Senators answered to their names, as follows: Aiken Frear

Martin
Anderson Fulbright Monroney
Bartlett

Goldwater Morse
Beall
Gore

Morton
Bennett
Green

Moss
Bible

Gruening Mundt
Bridges
Hartke

Murray
Brunsdale Hayden

Muskie Bush

Hennings Neuberger
Butler

Hickenlooper Pastore
Byrd, Va.
Hill

Prouty
Byrd, W. Va. Holland

Proxmire
Cannon
Hruska

Randolph
Carlson
Jackson

Robertson
Carroll
Javits

Russell
Case, N.J. Johnson, Tex. Saltonstall
Case, S. Dak. Johnston, S.C. Schoeppel
Chavez
Jordan

Scott
Church
Keating

Smith
Clark

Kennedy Sparkman
Cooper
Kuchel

Stennis
Cotton
Lausche

Symington
Curtis

Long, Hawaii Talmadge Dirksen

Long, La. Thurmond Dworshak McCarthy Wiley Eastland

McClellan Williams, NJ. Ellender McGee

Williams, Del. Engle

McNamara Yarborough Ervin

Magnuson Young, N. Dak. Fong Mansfield

Young, Ohio A quorum being present,

On motion by Mr. LONG of Louisiana to amend the said amendment, pursuant to the previous order of the Senate, by inserting on page 15, after line 12, a new section relating to choosing candidates for the Senate and the House of Representatives by primaries in the States, Pending debate,

On motion by Mr. MANSFIELD, and by unanimous consent,

Ordered, That when the Senate concludes its business today it adjourn until Monday next.

Pending debate,

[ocr errors][merged small]

REMOVAL OF INJUNCTION OF SECRECY

On motion by Mr. MANSFIELD, and by unanimous consent,

Ordered, as in executive session, That the injunction of secrecy be removed from an agreement with Austria regarding the return of Austrian property.

ADJOURNMENT On motion by Mr. COTTON, at 5 o'clock and 25 minutes p.m.,

The Senate under its order of today adjourned until Monday next.

To the Congress of the United States:

Pursuant to the provisions of Public Law 507, 81st Congress, I transmit herewith the Ninth Annual Report of the National Science Foundation for the fiscal year ended June 30, 1959.

DWIGHT D. EISENHOWER. THE WHITE HOUSE, January 18, 1960.

MONDAY, JANUARY 18, 1960 The VICE PRESIDENT called the Senate to order and the Chaplain offered prayer,

THE JOURNAL On motion by Mr. JOHNSON of Texas, and by unanimous consent,

The reading of the Journal of the proceedings of Thursday, January 14, 1960, was dispensed with.

CALL OF CALENDAR DISPENSED WITH

On motion by Mr. JOHNSON of Texas, and by unanimous consent,

Ordered, That call of the calendar on today be dispensed with.

COMMITTEE AUTHORIZED TO SIT The Committee on Rules and Administration was authorized to sit today during the session of the Senate, on the request of Mr. MANSFIELD. AUTHORITY FOR COMMITTEE ON APPROPRIA

TIONS TO SIT DURING SECOND SESSION OF CONGRESS

On motion by Mr. HAYDEN, and by unanimous consent,

Ordered, That the Committee on Appropriations be authorized to meet during the sessions of the Senate for the remainder of the present session of Congress.

THE BUDGET The VICE PRESIDENT laid before the Senate the following message from the President of the United States which, with the accompanying reports, were referred to the Committee on Appropriations: To the Congress of the United States:

With this message, transmitting the Budget of the United States for the fiscal year 1961, I invite the Congress to join with me in a determined effort to achieve a substantial surplus. This will make possible a reduction in the national debt. The proposals in this budget demonstrate that this objective can be attained while at the same time maintaining required military strength and enhancing the national welfare.

This budget attests to the strength of America's economy. At the same time, the budget is a test of our resolve, as a nation, to allocate our resources prudently, to maintain the Nation's security, and to extend economic growth into the future without inflation.

In highlight, this budget proposes:

1. Revenues of $84 billion and expenditures of $79.8 billion, leaving a surplus of $4.2 billion. This surplus should be applied to debt reduction, which I believe to be a prime element in sound fiscal policy for the Nation at this time.

2. New appropriations for the military functions of the Department of Defense amounting to $40.6 billion, and expenditures of $41 billion. These expenditures, which will be slightly higher than the 1960 level, will provide the strong and versatile defense which we require under prevailing world conditions.

3. Increased appropriations (including substantial restoration of congressional reductions in the 1960 budget), and a virtual doubling of expenditures, for nonmilitary space projects under the National Aeronautics and Space Administration. This furthers our plans to keep moving ahead vigorously and systematically with our intensive program of scientific exploration and with the development of the large boosters essential to the conquest of outer space.

4. Nearly $4.2 billion in new appropriations for mutual security programs, an increase of about $950 million above appropriations for the current year, with an increase of $100 million in expenditures. This increase in program is needed to accelerate economic and technical assistance, chiefly through the Development Loan Fund, and to strengthen free world forces, in particular the forces of the North Atlantic Treaty Organization, with advanced weapons and equipment.

5. A record total of expenditures $1.2 billion, for water resources projects under the Corps of Engineers and the Bu

reau of Reclamation. In addition to funds for going work, this amount provides for the initiation of 42 new highpriority projects, which will require $38 million in new appropriations for 1961, and will cost a total of $496 million over a period of years.

6. Substantially higher expenditures in a number of categories which under present laws are relatively uncontrollable, particularly $9.6 billion for interest; $3.9 billion to help support farm prices and income; $3.8 billion for veterans compensation and pensions; and $2.4 billion in aid to State and local governments for public assistance and employinent security activities. The aggregate increase in these relatively uncontrollable expenditures is more than $1 billion over 1960.

7. Research and development expenditures of $8.4 billion—well over one-half of the entire Nation's expenditures, public and private, for these purposes-in order to assure a continuing strong and modern defense and to stimulate basic research and technological progress.

8. Recommendations for prompt legislative action to increase taxes on highway and aviation fuels, and to raise postal rates. These measures are needed to place on the users a proper share of the rising costs of the Federal airways and postal service, and to support the highway program at an increased level.

9. Recommendations to extend for another year present corporation income and excise tax rates.

10. A constructive legislative program to achieve improvements in existing laws relating to governmental activities and to initiate needed actions to improve and safeguard the interests of our people.

In short, this budget and the proposals it makes for legislative action provide for significant advances in many aspects of national security and welfare. The budget presents a balanced program which recognizes the priorities appropriate within an aggregate of Federal expenditures that we can soundly suppost.

I believe that the American people have made their wishes clear: The Federal Government should conduct its financial affairs with a high sense of responsibility, vigorously meeting the Nation's needs and oportunities within its proper sphere while at the same time exercising a prudent discipline in matters of borrowing and spending, and in incurring liabilities for the future.

AUTHORITY FOR COMMITTEE ON APPROPRIATIONS TO REPORT DURING RECESS OR ADJOURNMENT OF SECOND SESSION OF PRESENT CONGRESS

On motion by Mr. HAYDEN, and by unanimous consent,

Ordered, That during adjournments or recesses of the Senate during the 2d session of the 86th Congress, the Committee on Appropriations be, and it is hereby, authorized to report appropriation bills, including joint resolutions, with accompanying notices of motions to suspend paragraph 4 of rule 16 for the purpose of offering certain amendments to such bills or joint resolutions, which proposed amendments shall be printed.

DIRECTOR OF GALLAUDET COLLEGE The VICE PRESIDENT appointed Mr. FREAR as a Director of Gallaudet College, vice Hon. EDWARD J. THYE, whose term of service had expired. REPORT OF NATIONAL SCIENCE FOUNDATION

The VICE PRESIDENT laid before the Senate the following message from the President of the United States which, with the accompanying report, was referred to the Committee on Labor and Public Welfare:

BUDGET TOTALS

During the present fiscal year we have made encouraging progress in achieving sound fiscal policy objectives. The deficit of $12.4 billion in fiscal 1959, which was largely caused by the recession, is expected to be followed by a surplus of $217 million in the current year. TO safeguard this small surplus, I am directing all Government departments and agencies to exercise strict controls over the expenditure of Federal funds. Even So, the slender margin of surplus can be attained only if economic growth is not interrupted.

[blocks in formation]

duction of the public debt will reduce Government competition with private industry, individuals, and State and local governments for investment funds and will help ease the pressure on interest rates. Along with the recommended removal of the interest rate ceiling on longterm Federal debt, this will help hold down budget expenditures for interest, which now amount to almost one-eighth of the whole budget.

Statutory debt limit: It is estimated that the public debt, which stood at $284.7 billion on June 30, 1959, will be $284.5 billion on June 30, 1960, and will decline to $280 billion at the end of fiscal 1961. Thus, the budget surplus estimated for fiscal 1961 will permit the Government to end the year with desirable operating leeway within the permanent debt limit of $285 billion. However, the fluctuating seasonal pattern in receipts will again require a temporary increase in the debt limit during the fiscal year 1961, since the present temporary limit of $295 billion expires on June 30, 1960. It is expected that the request for a new temporary limit will be for less than the present $295 billion if the Congress accepts my budgetary proposals.

Interest ceiling: Effective management of a debt of this size requires a reasonable distribution among securities maturing at different times. Threefourths of all marketable Treasury securities outstanding today come due in less than 5 years, of which $80 billion will mature in less than a year. As long as the rate that would have to be paid on newly issued bonds exceeds the present statutory ceiling of 414 percent, it is impossible to issue and sell any marketable securities of over 5 years' maturity.

Exclusive reliance on borrowing in a limited sector of the market is an expensive and inefficient way to manage the debt. Inflationary pressures increase as the volume of short-term and, hence, highly liquid securities mounts, especially if these securities are acquired by commercial banks. Further, effective monetary policy becomes more difficult when the Treasury has to refinance often. To make possible prudent and flexible management of the public debt, to permit sale of a modest amount of intermediate and longer term bonds when market conditions warrant such action, and to keep the average maturity of the debt from constantly shortening, it is imperative that the Congress immediately act to remove the 42-year-old 414-percent limitation on interest rates on Government securities maturing after 5 years.

For the fiscal year 1961, I am proposing a budget surplus of $4.2 billion to be applied to debt retirement. In my judgment this is the only sound course. Unless some amounts are applied to the reduction of debt in prosperous periods, we can expect an ever larger public debt if future emergencies or recessions again produce deficits.

In times of prosperity, such as we anticipate in the coming year, sound fiscal and economic policy requires a budget surplus to help counteract inflationary pressures, to ease conditions in capital and credit markets, and to increase the supply of savings available for the productive investment so essential to continued economic growth.

The budget recommendations for 1961 lay the groundwork for a sound and flexible fiscal policy in the years ahead. A continuance of economic prosperity in 1962 and later years can be expected to bring with it further increases in Federal revenues. If expenditures are held to the levels I am proposing for 1961 and reasonable restraint is exercised in the future, higher revenues in later years will give the next administration and the next Congress the choice they should rightly have in deciding between reductions in the public debt and lightening of the tax burden, or both. Soundly conceived tax revision can then be approached on comprehensive and orderly basis, rather than by haphazard piecemeal changes, and can be accomplished within a setting of economic and fiscal stability.

Budget expenditures in 1961 are estimated at $79.8 billion, which is $1.4 billion more than the 1960 level. The total increase is attributable to (1) an increase of more than $1 billion in relatively uncontrollable expenditures for farm price supports fixed by law, interest on the public debt, veterans compensation and pensions, and public assistance grants, and (2) an increase of about $500 million in expenditures because of commitments made in prior years for Federal housing programs, for civil public works projects and other construction, for loans under the mutual security program, and for other programs.

New activities and expansion of certain other programs have been included on a selective basis of need. These increases are offset by reductions in other existing programs, including the proposed elimination of the postal deficit.

New obligational authority recommended for the fiscal year 1961 totals $79.4 billion. This is $306 million less than the amounts already enacted and recommended for 1960, and $401 million less than estimated expenditures in 1961.

Budget receipts under existing and proposed legislation are expected to rise substantially to $84 billion in 1961. This compares with the revised estimate of $78.6 billion for 1960 and actual receipts of $68.3 billion in 1959.

a

The estimates for 1961 assume (1) extension of present tax rates and (2) the adoption of modifications recommended last year for certain tax laws. These are summarized in the following paragraphs.

Extension of present tax rates: In order to maintain Federal revenues, it is necessary that the present tax rates on corporate profits and certain excises be extended for another year beyond their scheduled expiration date of June 30, 1960. The scheduled reductions in the excise tax rates on transportation of persons and the scheduled repeal of the tax on local telephone service, which were enacted in the last session of the Congress, should be similarly postponed.

Improvement of the tax system: The recent tax revision hearings of the Ways and Means Committee have provided valuable information bearing on changes in the tax laws. The Treasury will continue to work in cooperation with the committees of the Congress in developing sound and attainable proposals for long-range improvement of the tax laws.

As the development of a comprehensive tax revision program will take time, the Congress should consider this year certain changes in the tax laws to correct inequities. These include amendments of the laws on taxation of cooperatives, now before the Congress, and a number of technical changes on which the Treasury Department has been working with committees of Congress. There is also before the Congress an amendment to prevent unintended and excessive depletion deductions resulting from the computation of percentage depletion allowances on the selling price of finished clay, cement products, and mineral products generally; unless the problem is satisfactorily resolved in a case now pending before the Supreme Court, the need for corrective legislation in this area will continue.

Under existing law, administration of the depreciation provisions is being hampered by the attempts of some taxpayers to claim excessive depreciation before disposing of their property. If gain from the sale of depreciable personal property were treated as ordinary income, the advantage gained in claiming excessive depreciation deductions would be materially reduced and the taxpayer's judgment as to the useful life of his property could more readily be accepted. Accordingly, I recommend that consideration be given to a change in the law which would treat such gain as ordinary income to the extent of the

BUDGET RECEIPTS

Estimated budget receipts of $84 billion in the fiscal year 1961 assume a high and rising level of economic activity in calendar year 1960. Specifically, this revenue estimate is consistent with an increase in the gross national product from about $480 billion for calendar 1959 to about $510 billion for calendar 1960. Personal incomes and corporate profits are expected to rise considerably beyond last year's levels, which were depressed somewhat by the long duration of the steel strike. The accompanying table

MANAGEMENT OF THE PUBLIC DEBT

Achievement of the proposed budget surplus will provide an opportunity to offset part of the deficits incurred in the fiscal years 1958 and 1959 largely because of the recession. The corresponding re

« PreviousContinue »