Full text of Marriner S. Eccles Papers : Memorandum to Mr. Vest, Box 71, Folder 1, Item 1

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Fo*rm

F.

X.

511(a)

TO

Mr. Vest

^OM

Governor Eccles

REMARKS:

This i s the correspondence I received from
Senator McClellan r e l a t i v e to a b i l l he
plans to introduce and about which I just
spoke to you over the telephone.

GOVERNOR ECCLES1 OFFICE



0

DENNIS CHAVEZ, N. MEX., CHAIRMAN
SHERIDAN DOWNEY, CALIF.
HARRY P. CAIN, WASH.
JOHN L . MC CLELLAN, ARK.
EDWARD MARTIN, PA.
SPESSARD L . HOLLAND, FLA.
ARTHUR V. WATKINS, UTAH
JOHN SPARKMAN, ALA.
GEORGE W . MALONE, NEV.
JOHN C. STENNIS, MISS.
JAMES P. KEM, MO.
VIRGIL CHAPMAN, KY.

FRANK BURNETT, CHIEF CLERK

QICTTticb J&ictlesi

J&enaie

C O M M I T T E E O N PUBLIC W O R K S

Jaimaiy 2 5 , 1950

The Honorable Marriner S. Eccles
Member, Board of Governors
Federal Reserve System
Federal Reserve Building.
Washington, D. C.
Dear Mr. Eccles:
Attached are t e a r sheets from the Congressional Record
of January 19 containing a copy of S. 2898,which I introduced
on t h a t date, and also my remarks w i t h reference to t h i s b i l l .
This i s the measure t h a t I discussed with you b r i e f l y
a few evenings ago a t the home of Congressman Regan. At your
convenience X would l i k e f o r you to stuc^y t h i s proposed l e g i s - ,
l a t i o n and l e t me have the b e n e f i t of your frank opinion as to I
i t s merits and any suggested revisions or modifications t h a t
you think are desirable.
Assuring you of my appreciation of your assistance i n
t h i s matter, and w i t h kindest regards, I am

JLM:mn
Encs




630

CONGRESSIONAL

^ e * ' in
AMENDMENT OP LEGISLATIVE REORGANI Z A T I O N ACT R E L A T I N G T O EVALUAT I O N OP FISCAL REQUIREMENTS OP
E X E C U T I V E BRANCH

Mr. McCLELLAN. Mr. President, out
of order, I ask unanimous consent to
introduce for appropriate reference, a
bill and I request that the bill may be
printed in the body of the RECORD as a
part of my remarks, because I should
like to take a few minutes of the Senate
to discuss it.
The PRESIDING OFFICER (Mr.
H O E Y in the chair). Without objection,
the bill will be received, printed in the
RECORD, and appropriately referred, and
without objection, the Senator from Arkansas may proceed. The Chair hears
no objection.
The bill (S. 2898) to amend the Legislative Reorganization Act of 1946 to provide for more effective evaluation of the
fiscal requirements of the executive agencies of the Government of the United
States, introduced by Mr. M C C L E L L A N ,
was read twice by its title, referred to the
Committee on Expenditures in the Executive Departments, and ordered to be
printed in the RECORD, as follows:
Be it enacted, etc., T h a t section 138 of the
Legislative Reorganization Act of 1946, as
amended, is hereby amended to read as
follows:
^

"JOINT

COMMITTEE ON THE

BUDGET

138. (a) There is hereby created a
joint service committee to be known as the
Joint Committee on the Budget (hereinafter
i n this section called the "joint committee")
to be composed of 10 members as follows:
" ( 1 ) Five Members who are members of
the Committee on Appropriations of the
Senate, three from the majority party and
two from the minority party, to be chosen
by such committee; and
" ( 2 ) Five Members who are members of
the Committee on Appropriations of the
House of Representatives, three from the
majority party and two from the minority
party, to be chosen by such committee.
" ( b ) No person shall continue to serve as
a member of the joint committee after he
has ceased to be a member of the committee
from which he was chosen, except that the
members chosen by the Committee on Appropriations of the House of Representatives
who have been reelected may continue to
serve as members of the joint committee
notwithstanding the expiration of the Congress. A vacancy i u the joint committee
shr.ll not affect the power of the remaining
members to execute the functions" of the
Joint committee, and shall be filled i n the
same manner as the original selection, except
that (1) in case of a vacancy during an adjournment or recess of Congress for a period
of more than 2 weeks, the members of the
joint committee who are members of the
committee entitled to fill such vacancy may
designate a member of such committee to
serve u n t i l his successor is choseu by such
committee, and (2) i n the case of a vacancy
after the expiration of a Congress which
would be filled from the Committee on Appropriations of the House of Representatives,
members of such committee who are conning to serve as members of the joint
^ _.mmittee, may designate a person who, i m mediately prior to such expiration, was a
member of such committee and who is reelected .0 the House of Representatives, to
serve u n t i l his successor is chosen by such
committee.
No. 13-




RECORD—SENATE

"(c) The joint committee shall elect a
chairman and vice chairman from among
its members at the first regular meeting of
each session: Provided, however, T h a t during
even years the chairman shall be selected
from among the members who are Members
of the House of Representatives and the vice
chairman shall be selected from among the
members who are Members oi the Senate,
and during odd years the chairman shall be
selected from among the members who are
Member^ of the Senate arid the vice chairman shall be selected from among the members who are Members of the House of Representatives.
" ( d ) A majority of the Members of each
House who are members of the joint committee shall together constitute a quorum
for the transaction of business, but a lesser
number, as determined by the joint committee, may constitute a subcommittee and
be authorized to conduct hearings and make
investigations. Any member of a subcommittee so designated shall constitute a
quorum for the conduct of any hearing or
investigation, but the concurrence of a majority of the members of such subcommittee
shall be necessary before any report or findings may be submitted to the joint committee.
"(e) I t shall be the duty of the joint committee—
"(1) (A) to inform itself on all matters
relating to the annual budget of the agencies
of the United States Government, during
and after the preparation thereof; (B) to
provide the Committee on Appropriations of
the House of Representatives and the Committee on Appropriations of the Senate w i t h
such information on items contained i n such
budget, and the justifications submitted in
support thereof, as may be necessary to enable said committees to give adequate consideration thereto; and (C) to consider alL
available information relating to estimated
revenues, essential programs, and changing
economic conditions, and, on the basis
thereof, report to said committees findings
relating to necessary adjustments or revisions i n appropriations as may be required
to balance the budget;
"(2) to recommend to the appropriate
standing committees of the House of Representatives and the Senate such changes i n
existing laws as may effect greater efficiency
and economy in government;
"(3) to make such reports and recommendations to any standing committee of
either House of Congress or any subcommittee thereof on matters within the jurisdiction of such standing committee relating to
deviations from basic legislative authorization, or in relation to appropriations approved by Congress which are not consistent
w i t h such basic legislative authorization, as
may be deemed necessary or advisable by the
joint committee, or as may be requested by
any standing committee of either House of
Congress or by any subcommittee thereof.
" ( f ) The joint committee, or any subcommittee thereof, shall have power to hold
hearings and to sit and act anywhere within
or without the District of Columbia whether
the Congress is i n session or has adjourned
or is i n recess; to require by subpena or
otherwise the attendance of witnesses and
the production of books, papers, and documents; t o administer oaths; to take testimony; to have printing and binding done;
and to make such expenditures as it deems
advisable w i t h i n the amount appropriated
therefor. Subpenas shall be issued under
the signature of the chairman or vice chairm a n of the committee and shall be served
by any person designated by them. The provisions of sections 102 to 104, inclusive, of the
Revised Statutes (TJ. S. C., title 2, sees. 192194) shall apply i n the case of any failure
of any witness to comply w i t h any subpena

JANUARY 19

or to testify when summoned under authority of this section.
"(g) Employees of the joint committee,
upon the written authority of the chairman
or vice chairman, shall have the right to
examine the books, documents, papers, reports, preliminary and other estimates of
budget requirements, or other records o^any
agency of the United States Government
within or without the District of Columbia:
Provided, however, That such employees shall
not be permitted access to books, documents,
papers, reports, estimates, records, or any
other thing containing information classified for security purposes unless specifically
authorized by the joint committee to receive
such types of classified information.
" ( h ) At the request of any member of the
Committee on Appropriations of either House
or of any member of a subcommittee thereof,
or at the request of any member of the staffs
of such committees or subcommittees, professional employees of the joint committee
may be detailed to advise and assist such
committees or subcommittees or the staffs
thereof during consideration of any appropriation bill or part thereof.
" ( i ) The joint committee shall, without
regard to the civil-service laws or the Classification Act of 1949, as amended, employ and
fix the compensation of a staff director and
such other professional, technical, clerical,
and other employees, temporary or permanent, as may be necessary to carry out the
duties of the joint committee, and! all such
employees shall be appointed withopt regard
to political affiliation and solely on the
ground of fitness to perform the duties to
which they may be assigned: Provided, however, T h a t such appointment may be terminated by the concurrence of a majority of
the members of the joint committee. No
person shall be employed by the joint committee u n t i l a thorough investigation as to
loyalty and security shall have been made
by the Federal Bureau of Investigation and
a favorable report on said investigation submitted to the chairman or vice chairman.
" ( j ) I t shall be the duty of each agency
of the Government to supply to the joint
committee duplicate copies of any budgetary
request submitted to the Bureau of the
Budget, either for regular or supplemental
appropriations required for each fiscal year,
w i t h the detailed justifications in support
thereof.
" ( k ) When used in this section, the t e r m
'agency' means any executive department,
commission, council, independent establishment, Government corporation, board, bureau, division, service, office, officer, authority, administration, or other establishment,
in the executive branch of the Government.
Such term includes the Comptroller General
of the United States and the General Accounting Office, and includes any and all
parts of the municipal government of the
District of Columbia except the courts
thereof.
"(1) There are hereby authorized to be
appropriated such sums as may be necessary to carry out the purposes of this section. Appropriations for the expenses of the
joint committee shall be disbursed by the
Secretary of the Senate upon vouchers signed
by the chairman or vice chairman."

Mr. McCLELLAN. Mr. President, the
bill which I have just introduced bears
the title, "A Bill To Amend the Legislative Reorganization Act of 1946 To Provide for More Effective Evaluation of
the Fiscal Requirements of the Executive Branch of the Government of the
United States."
This bill, if enacted, will repeal the
provisions of section 138 of the Legislative Reorganization Act of 1946 which

630

CONGRESSIONAL

established the Joint Committee on the
Legislative Budget. That provision - of
the Legislative Reorganization Act, as
we all know, has proved unworkable.
The joint committee established by that
provision of law under the Eightieth
Congress, with the Republican Party i n
the majority and in control of the Congress, was unable to function in accordance with the provisions of that statute.
Likewise, Mr. President, i n the Eightyfirst Congress under the leadership of
the Democratic Party, that joint committee has not been able to function, and
I think it may now be assumed that this
provision of the statute is a dead letter
and should be repealed or so revised as to
give it some practical operating effect.
I propose, Mr. President, to repeal that
provision of the law and to substitute i n
lieu of that section of the Legislative Reorganization Act the provisions of the bill
which I have today introduced.
Under the Constitution the Congress
has the responsibility and duty of appropriating public funds for the support
of all branches of the Federal Government. The Chief Executive, as the head
of the executive branch, submits to the
Congress a budget of estimated revenues,
anticipated expenditures, and recommendations for appropriations to meet
the operating cost of the GovernmentThe President's budget is not mandatory
upon the Congress, but it is most persuasive and is largely accepted by the
Congress as a yardstick to guide it i n
making annual appropriations, and particularly so with respect to appropriations for all agencies of the executive
branch of the Government. Under our
system, the President recommends, but
the final responsibility and duty with respect to appropriations are vested in the
Congress.
To aid and counsel the President in
his budgetary recommendations to the
Congress, there has been created an
agency known as the Bureau of the
Budget established within the Executive Office of the President. The Bureau
of the Budget has a staff and personnel
of some 531 employees. Its work and
duties continue the year around, and I
Regard it as an indispensable adjunct to
the Office of the President and to the
executive branch of the Government.
Among other duties it is charged with
the duty of screening requests for appropriations that are submitted by the
(Jifferent departments, bureaus, and
agencies of the executive branch of the
Government. Its services are of great
value to the President in preparing his
annual budget and in paring requests
for funds by administrative agencies,
and holding down the operating costs
of the executive branch of the Government. Therefore, Mr. President, I do
jiot have in mind, and I want to stress
that it is not the purpose of the legislation which I propose to in any way hinder, obstruct, impair, or detract from the
functions of the Bureau of the Budget.
But, Mr. President, the Congress has
the final responsibility for appropriating
the funds requested by the several agencies of the Government and by the President i n the budget he submits to us, and
to enable the Congress to more intelli


RECORD—SENATE

gently and adequately meet this responsibility is the purpose of the bill I have
introduced.
The President's initial estimate of expenditures for the present fiscal year
was $41,900,000,000. Supplemental requests increased estimated and requested
expenditures to $43,300,000,000 for the
fiscal year 1950. Meanwhile, anticipated
receipts had declined from an originally
estimated $41,000,000,000 to a revised estimate of $37,800,000,000. This resulted
in an anticipated deficit of some $5,500,000,000 for this fiscal year. On January 9, 1950, the President submitted
his budget to Congress for 1951, the
next fiscal year, i n which he recommends
total expenditures of $42,400,000,000 as
against anticipated revenues of $37,300,000,000.

Thus the President's budgetary recommendations for fiscal 1951 at present envisions another deficit for 1951
i n excess of $5,000,000,000. When the
1950 budget was submitted, the President
envisoned a deficit of some $900,000,000,
but it develops that the deficit for this
fiscal year will be 6 times greater than
the President anticipated or estimated
when he submitted the 1950 budget 1
year ago. I trust that ratio of error will
not hold true for 1951. But I think we
can assume that, unless the Congress
meets its responsibility to reduce the
expenditures recommended by the President in the present budget, the deficit
for 1951 will very likely greatly exceed
the amount of $5,000,000,000, plus, which
the President acknowledges will accrue
if the Congress conforms to his wishes
with respect to expenditures.
So, Mr. President, notwithstanding the
excellent services rendered by the Bureau
of the Budget in an administrative and
advisory capacity to the President, we
are confronted, it seems, with perpetual
and increased deficit spending unless the
Congress puts a stop to it and materially
reduces the present
tremendously
swollen and rapidly growing annual cost
of the Federal Government.
To establish and maintain sound fiscal
policies, to prevent waste and unnecessary and excessive expenditures of the
public funds, to keep the Government
solvent and generally operating on a balanced-budget basis is the final duty and
inescapable responsibility of the Congress itself. This is no easy task, Mr.
President. I t is a job that will require
not only courage of individual Members
of Congress, but one where the greatest
of wisdom and skill should be employed—
a job that Congress cannot adequately
perform without securing the ablest
technical assistance and counsel that can
possibly be made available to it. That,
Mr. President, is what I propose to do in
this legislation.
This measure, Mr. President, would
establish within the Congress a Joint
Committee on the Budget, composed of
five members of the Appropriations Committee of the House of Representatives
and five members of the Appropriations
Committee of the Senate, with an adequate technical staff, to serve as an
agency of the Congress. I t is to be a
service committee to the Appropriations
Committee of both Houses of Congress,

JANUARY 19

with authority to study and fur the
screen budgetary requests that come to
us from the executive branch of the Government.
Mr. President, it might be asked, why /
not simply increase the staffs of the two (
Appropriations Committees of Congress? \
I f t h a t course were followed—and I think I
possibly the same results could be !
achieved by it—there would be absolutely {
a duplication of effort. To adequately \
staff one committee would cost as much j
as the expense of a joint staff.
Furthermore, Mr. President, the plan
would enable the members of the Budgetary fcommittee to work together as a
joint committee of the two Appropriations Committees, with a staff under its
direction n m k i n g ^
studyof buSfeTrequests.
"^ As l progfeefrrf^Sirpoint out how the
proposed legislation would make it possible for that to be done.
This committee will be adequately
staffed with technical and professional
personnel, and will have the job—an allyear-around job, Mr. President—of r
studying budget requests and expenditures in the various departments and:
agencies of the executive branch of the
Government, with a view of eliminating /
unnecessary expenditures and in aid- I
ing—not supplanting—the Appropriations Committees and the Congress to *
make cuts and reduce appropriations ju^jL
every instance where it can possibly
^
done without impairing essential a ^ J
necessary services of the executive
Branch of the Government.
Mr. McKELLAR. Mr. President, will
the Senator yield?
Mr. McCLELLAN. I f the Senator will
wait for a moment until I make one further statement, I shall be very happy to
yield to the distinguished chairman of
the Appropriations Committee.
So that proper studies can be made by
this committee and its staff, it would also
require that all agencies of the executive
branch of the Government submit to
the committee a duplicate of all budget
requests for expenditures that they submit to the Bureau of the Budget. This *
-would enable the committee and staff,
Mr. President, t o m a k e
along
with the B u r e a u l O T S 3 j i l f e e t ; and*, so,
" wTrere~tTTe ~ Bureau of the Budget or the I
executive branch of the Government / /
fails to make reductions that can or lj
should be made, on the basis of factual l
information that the studies and work j /
of this committee may provide, the Con- /
gress certainly will be in a better posi-/
Jtion to make such reductions.
'
" T am now very happy to yield to the
distinguished chairman of the Appropriations Committee.
Mr. McKELLAR. I am very much interested i n the Senator's proposal. I t
must be evident to everyone that we
should take steps to balance the budget.
The question I wish to ask the S e n a t r ' * ^
is whether he has had any estimate ma^
as to the cost of the proposal he makes.
Mr. McCLELLAN. I have had no estimate made, I will say to the able Senator, because the Congress can itself
Control it. We have had no estimate
jjnade, anymore than we have had estimates made of what it would cost to staff

630

CONGRESSIONAL

i y other committee. But I may say to
aY distinguished friend that I cannot
conceive that it would be necessary for
us to provide a staff for this committee
comparable to the staff which is provided for the Budget Bureau. They
have 531 employees working the year
round to prepare the budget which the
President submits. With the limited
staff with which we undertake to operate
f i n the Appropriations Committee, as the
//senator knows, it is an absolute physi c a l impossibility for the present staff to
J begin to make the checks and the
^analyses of the budget and of all the reWquests which I believe to be essential if
| we are to reduce expenditures i n a sound,
| businesslike way, and do it discreetly and
I with judgment, so as not to impair actual
I services of the Government which are
I needed, which are indispensable, and
I which are essential to a proper functioning of the executive branch of the Government.
As I pointed out a moment ago, I think
the staff could well be limited, but if we
provide, as our proposal would require,
that the executive agencies of the Government, when they submit their budget
requests to the Bureau of the Budget,
"be required at the same time to submit
them to an agency of the Congress which
would be prepared to work the year
round, we would have information i n
advance of the hearings before the Appropriation Committee as to whether the
^ quests had been properly screened,
I
ether they had been reduced, what
V^-re requests were originally, and what
action was taken on them. The budget
comes to us now at the beginning of a
session of Congress, when appropriation
bills are being introduced.
W i t h the
limited facilities we now have, i t is a
physical impossibility for the Congress
to be certain it is doing the work which
could and should be done.
I do not maintain, Mr. President, that
what is proposed is the only approach or
the only solution. I t may not be. But I
believe this bill will serve as a basis for
the appropriate committees of the Congress and for the Members of the Senate
to study this problem, to hold hearings,
and to try to find some means, some
vehicle, which we can employ to fortify
and equip the Congress to do the job of
reducing Federal expenditures. That
ought to be done, and ultimately, Mr.
President, in my judgment, it must 1se
done.
I
The joint committee proposed by this
I bill will be specifically a service commit/ tee, having no authority granted to
( standing committees, nor would it be
authorized to report directly to Congress.
I t will report to the Appropriations Committees of both Houses, and to their subcommittees, or, in certain instances, to
other standing committees. I t will have
a staff director and be staffed by an adequate number of professional budget and
•^chnical experts who will be assigned
work with the agencies of the GovernV ^ n t during the preparation of their annual budget in the same manner as the
Bureau of the Budget now works with
those agencies on behalf of the President.
I t will have access to the same information. There will then be available to the

v




RECORD—SENATE

Appropriations Committees of both
Houses of the Congress, at the time the
President's budget message is received,
detailed factual information on all items
contained i n the budget.
Again, Mr. President, I emphasize that
I am not trying to set this up for the
Senate alone, because if this service is
worth while and needed, I feel that a
joint committee and one staff could serve
both Appropriation Committees, rather
than to have a separate staff for each
committee.
I n this way the Congress can better,
more fully and intelligently discharge its
duty to the American people by reducing
the cost of Government without at the
same time crippling essential activities.
Mr. President, if after a thorough study
of the bill it is determined, in the wisdom of the Congress, that it would cost
more to service and to operate this staff
and this committee than the anticipated
savings would amount to, such a committee should not be established. But if
by establishing such a committee we can
reasonably expect to reduce the costs of
Government, and have a proper and adequate check upon the executive agencies
of the Government with reference to
their expenditures, then, Mr. President,
for each dollar of the cost of operating
and servicing this committee we should
get returns of many, many dollars in
Federal savings.
^ I t is further believed that this procedure will expedite and in some instances eliminate the necessity for
formal hearings on certain titles of the
appropriation bills which now require a
i great deal of the time of the Members
of Congress and the officials of the executive departments. Through utilization of factual, detailed data compiled by
its service committee, the Committees on
Appropriations would be in immediate
/ possession of information that must now
I be developed through long and tedious
J hearings. This new procedure cannot
I help but speed up the legislative process
I i n the appropriation field.
^ Any investigation of the budget items
will necessarily require a knowledge of
the manner i n which past and current
appropriations have been and are being
expended. The bill, therefore, proposes
to grant to the new joint committee the
additional responsibility of reporting to
the appropriate standing committees of
the Houses of Congress any matters
which relate to the improper expenditure of funds, and areas in which economies might be effected through cut/ back of programs by legislative action.
Finally, as this proposed committee will
have useful, detailed information in the
formulation of the legislative budget, i t
is charged with the duty of submitting
to the Appropriations Committees suggestions for adjustments or revisions i n
appropriations which may be made to
balance the budget, or hold deficits to
Lthe minimum.
I t is also contemplated that the Joint
Committee, through its staff of experts,
will obtain information as to estimated
revenues and the general economic condition of the country from all available
sources and submit such information to
the Appropriations Committees.

JANUARY 19

Mr. President, one reason why section
138 of the Legislative Reorganization Act
has not been found practical, is that the
committee was not staffed, i t was not
equipped to do the job. So far as I
know, no attempt to operate under i t
has ever actually been consummated. I t
has been found impossible for the Ways
and Means Committee and the Appropriations Committee and the Finance Committee simply to say, "The revenues are
going to be so much and the expenditures
should not be more than so much," because the information has not been made
available to them, and because the Joint
Committee was not equipped and staffed
with the talent necessary to acquire the
information and make it available to the
Budget Committee.
This function is a modified form of
the duties imposed on the Legislative
Budget Committee established in the
Legislative Reorganization Act of 1946
and, therefore, section 138 of that act
is repealed and the enlarged powers of
the new joint committee substituted
therefor. Senators are well aware of the
fact that the Joint Committee on the
Legislative Budget was unable to accomplish its duties primarily because it had
no adequate information upon which to
base a major policy decision on the
maximum amount which should be spent
for the operation of our Government.
Its estimates, based on information supplied by the executive branch, failed to
accomplish the purpose for which it was
created.
This new budget committee and procedure to be established by this proposed
legislation, in my judgment, will greatly
improve our legislative appropriation
processes. The establishment of this
committee and this service will enable
both the House and the Senate Committees on Appropriations to be provided
with continuous, factual and detailed information relative to the various appropriation items and programs contained
i n the budget. By having its own facilities, a committee created by and responsible to it, the Congress will no
longer be compelled to rely upon wholly
ex parte evidence of need for expenditures by the administrative agencies of
the Government that want to spend the
money.
I n my brief period of service on the
Appropriations Committee, Mr. President—and I think this statement can be
verified by all other members of the Appropriations Committee—we have had
the situation that the President has had
the Bureau of the Budget within the
Executive office. The Bureau serves him.
Members of the Bureau come before committees of Congress, together with the
heads of the agencies of the executive
branch of the Government and present
their side of the matter. They support
the budget. They come to committees of
Congress prepared with statistics and
other persuasive material and arguments
to induce the Appropriations Committees and the Congress to grant them the
money they say they want and need to
spend. Under our present system we are
simply having to take what is presented
to us, or, in most instances, arbitrarily
act to the contrary. The proposed sys-

630

CONGRESSIONAL

RECORD—SENATE

JANUARY 19

I know that the present occupant of
may say that I believe that if this pro
tem and procedure, however, would
posal were now in effect and if the comenable us not to be compelled, as we are the Chair, the distinguished chairman of
now, even to act arbitrarily if we are to the Appropriations Committee of the
mittee were now functioning, the Senate
Senate, the Senator from Tennessee IMr. 1 Appropriations Committee could go forcut expenses, but would enable us to act
M C K E L L A R ] realizes the difficulties under Iward with facts and information which
intelligently on the basis of reliable inwhich we are compelled to labor with a |\would enable it to act intelligently and
formation.
single appropriation bill, and that if we I to expedite the work the committee will
W i t h about 1,800 items of recommended appropriations i n the President's wait until after the House acts and sends 1 be compelled to do.
budget I think I can say without chal- ,its bill to the Senate before we undertake ^ Through the utilization of fully deto make a study, or make any prepara- r veloped information made available to
lenge from any source that no Member
of the Senate or of the Congress, even tion toward passing an appropriation J them at the time when the budget is
bill, we will find it impossible to give j submitted, the Appropriations Committhough he may be a member of the Apadequate consideration to the bill and ; tees of both the House and Senate would
propriations Committee, can possibly
have the detailed knowledge or the time study it and make the checks which' be better prepared to pass on approought to be made, in time to pass the
personally to examine each item sepapriation items when the bill is under
rately and be satisfied in each instance bill before the end of the fiscal year.
consideration, since much information
that the item of expenditure itself is
For that reason I believe the chairand detail would have already been asnecessary or that the amount requested man of our Appropriations Committee
certained by the Joint Committee on the
is the minimum required to do the job. has, very wisely—I do not know that a Budget and its staff, and made available
I n fact no single individual without any
decision has been made yet—proposed to the Appropriations Committees.
other responsibilities could perform that
to begin hearings immediately on the
Mr. President, this pyramiding cost
stupendous task, and certainly Members basis of the budget, without knowing
of the Federal Government, which enof Congress, already burdened with other
what action the House will or will not
tails continuing and increasing deficit
tremendous legislative and official duties, take. I believe that if we had in effect
spending, causes many of us grave concan give the President's budget and the a system whereby we required the execucern. I have felt that, as one Member
appropriation bills the time required for
tive agencies of the Government to subof the Senate, I have a personal duty and
necessary screening of budgetary remit to the joint committee of the Conobligation, as does every other Member
quests so as to be fully informed and gress the same request it submits to the
of this body, to do something about this
thoroughly satisfied that the particular budget, we also could make a yearproblem—not just talk about it and say
item and amount requested are fully
around study, just as the President's
I favor economy i n government, but to
justified. Every Member of the Senate advisers do, so we could be prepared to
do everything within my power to correct
knows that to be so. I dare say not a act when the time came, and act withthis situation. At least, Mr. President,
Member of the Senate would stand upon out the necessary delay which occurs I intend to make the effort. I n fact,
this floor and say he is familiar with under our present system.
Mr. President, I started or attempted to
every item in the budget and is satisfied
Mr. McCARRAN. Mr. President, will secure action of that sort during the last
that this or the other expenditure is the Senator yield?
session of Congress. Other members
essential and necessary to be made. I t
Mr. McCLELLAN. I yield.
this body, having the same deep co
is physically impossible for each Member
Mr. McCARRAN. What the Senator
cern that I have about the policy of de;
of this body, in the course of the perfrom Arkansas is now discussing is a
cit spending, likewise undertook to take
formance of the heavy duties laid upon matter of vital importance to the Senate.
action at the last session of Congress to
him today, so to inform himself through I n the judgment of the Senator from
materially reduce Federal expenditures
his own efforts.
Nevada the Senate should take its place
and balance the budget, or at least hold
in the appropriation facilities of the
This year, Mr. President, we are unthe deficit to a very practical minimum.
dertaking to process a single, omnibus Government. I t was never intended by
I t will be recalled that during the last
appropriation bill. That means, Mr. the Constitution, so far as I can detersession of Congress various joint resoluPresident, that this measure will likely mine, that appropriations must of necestions were introduced, by Senators from
be retained in the House for quite a long sity arise in the House. _ Be that as it both sides of the aisle, calling for cuts
may,
this
body
must
sustain
its
position
time before i t reaches the Senate. Cerof different dimensions i n the appropritainly, it will take much longer to get in the matter of appropriating for the
ations, cuts that were definitely under
Government.
With
that
in
mind
we
an omnibus appropriation bill over from
the budget estimates and recommendathe House than i t has i n the past for have held several meetings of the Appro-, tions. Those resolutions were referred
the House to get over to the Senate priations Committee. I am not at all
to the Committee on Expenditures i n
separate appropriation bills for the dif- certain, and I express only my own views, the Executive Departments, of which I
ferent departments. Thus the Senate that the omnibus bill will be a success.
am chairman. The committee conAppropriations Committee will experi- But it is certainly worthy of trial. To
ducted extensive hearings, i n an effort
ence this delay and cannot arid will not that extent, we are entirely content to
to report a resolution designed to bring
know what the House bill contains until go forward and try to work it out
about a sizable reduction i n Federal exi t has passed the House and reaches the successfully.
penditures.
Senate. We can well anticipate, thereI n keeping with that, let me say that
The Committee on Expenditures i n the
fore, that the time after receipt of the as chairman of a subcommittee having Executive Departments finally reported
bill from the House, until the end of this charge of the appropriation bill for the
Senate Joint Resolution 108, which would
fiscal year will be comparatively short, State Department, the Department of
have required the President to make
and likely not sufficient for the Appro- Commerce, the Department of Justice, reductions of from 5 to 10 percent in
priations Committee of the Senate to and the Judiciary, I have called a meetthe total appropriations made during
give thorough and adequate consideraing of 4,he subcommittee on the 31st of
that session. One reason for that
tion to the measure before the beginthis month, and have requested the repmethod of approach to this problem—
ning of the next fiscal year.
resentatives of those agencies to appear
and, Mr. President, it was an unorthodox
I favor the single appropriation bill. before the committee at that time, with method; I admit that was because some
I hope the experiment will prove ad- a view to going forward independently, of the appropriations measures at that
vantageous and that i t will be an im- hoping that we may have the printed time had already passed both Houses
copies of the House hearings, if they are of Congress. Others had been passed
provement over the system of considering separate appropriation bills, which then available, and may avail ourselves of
ng
by the House and were then pending
has been the practice in the past. But such information as the House commitin the Senate. We could not recall t)
have
been
able
to
obtain,
but
also
tees
even if we continued the past procedure
going forward independently ourselves, bills that had already been passed ar;
of having some 12 or 13 separate approesSF^
looking
to our independent position i n enacted into law. I n fact, the Congresl
priation measures, the need for this
was not prepared, i t had not equipped
making
appropriations
for
those
agenservice of a budgetary committee would
Itself with adequate facilities, Mr. Presiexist, but with this change to a single, cies.
dent, to make the cuts wisely and disomnibus appropriation bill, the need is
Mr. McCLELLAN. Mr. President, I cretely on the individual items in each
further accentuated.
thank the able Senator from Nevada. I appropriation bill that would have been




630

CONGRESSIONAL

^
red to bring about a reduction sufficiSTTtly large to balance the budget. The
situation too, Mr. President, was considerably aggravated because the President's budget estimate of revenues was
so inaccurate and because additional and
supplementary budget requests so increased the amount of proposed expenditures that it had become apparent that
the $900,000,000 deficit which the President's original budget for 1950 estimated
was a great understatement of the reality. I n those circumstances, it appeared
to many of us that Congress had no
other alternative except to pass a resolution on the order of Senate Joint
Resolution 108, and to delegate to the
President the power to reduce appropriations and cut expenditures between 5
and 10 percent, in the hope that the
budget might be balanced, or at least
that the deficit would be held to the
lowest practicable minimum.
We know, Mr. President, the parliamentary obstacles and the administration opposition which that joint resolut i o n encountered. Some 63 Senators,
representing both political parties and
more than 40 States in this Union, signed
a petition urging the leader of the majority party to bring up the joint resolution i n the Senate for a vote. That request was denied by the policy committee and the leadership of the majority.
Therefore, Mr. President, the Senate was
y^ * given an opportunity to consider
, resolution in its own right and
up&fi its individual merits. Those of us
who sponsored r.nd favored it had to resort to the tactic of offering it as an
amendment to an appropriation bill. Because it was offered as legislation on an
appropriation bill, the rules of the Senate required, as all of us know, a twothirds majority vote for suspension of
the rule, so that the amendment might
be offered for adoption. I t was not
adopted, Mr. President, I regret to say,
although on that vote 49 Senators, a constitutional majority of this body, voted
in favor of suspending the rule, so as to
permit the resolution to be offered as an
amendment, and only 28 Senators voted
against dping so. Obviously, Mr. President, a majority of the Senate during
the last session of Congress favored a reduction in Federal expenditures, but that
parliamentary obstacle was resorted to
and was interposed to defeat the will of
the majority of this body.
Having met defeat, under the above
circumstances, in an effort to pass Senate Joint Resolution 408, which could
have resulted in a balanced budget, I
tried to do something a little more modest. I introduced Senate Joint Resolution 131, which would have left untouched and unimpaired the present requirements of existing budget law, but
would have added an additional requirement, namely, that the 1951 budget to
v
submitted include revised expendifigures so reduced as to be in balwith estimated revenues. That
would have given Congress the full picture of what the President wanted to
spend and what he was willing to say he
would spend if the Congress was unwilling to continue the policy of deficit
spending, and insisted upon a balanced
Digitized forbudget.
FRASER


RECORD—SENATE

Mr. President, we are here confronted
with a budget of expenditures, which the
President wishes to make next year, in
excess of $5,000,000,000 more than the
anticipated revenues will be. Had that
joint resolution become law, we would
have had this budget with just another
column of figilres added to it. I t would
have shown what the President would
have eliminated from the budget if the
Congress insisted upon balancing the
budget. That would have been helpful
to us. I t would not have been any more
binding than the President's other
budget recommendations, but it would
have been helpful to a Congress that is
economy-minded in response to the publicly expressed sentiment of the American people, who want government costs
reduced and want to get the Government
back on a sound fiscal basis.
Senate Joint Resolution 131 met with
no opposition when I offered it as an
amendment to the executive pay bill,
relating to salary increases for. officials
of the executive branch of the Government. I n fact, I thought the administration accepted it. No opposition was
expressed to it in the Senate. As I recall, it was adopted without a dissenting
vote. Being a Senate amendment, of
course it went to conference. Although
I do not know what occurred in conference or before the conferees met, I do
find in the CONGRESSIONAL RECORD of
October 13,1949 (p. 14727), the following
statement by Representative EDWARD H .
REES, a member of the conference committee:
The bill, as passed by the other body—

He was referring to the bill providing
for salary increases for personnel of the
executive branch of the Government—
included a provision t h a t would require the
President to submit a balanced budget i n
addition to his regular budget. * * *
I
thought the provision had merit and sound
reasoning. The President objected to this
provision of the legislation. He opposed i t
so strenuously t h a t he followed the unusual
procedure of calling the conferees of both
Houses to the White House, before they had
opportunity to consider the measure, so he
could tell the conferees he wanted t h a t particular provision removed from the legislation.

So, Mr. President, Senate Joint Resolution 131, passed by the Senate, did not
become law. I t was stricken from the
bill in conference.
^
Let me pause to remind my colleagues]
that I think it is now perfectly obvious I
that we are not going to get any help I
from the present Bureau of the Budget )
i n respect to balancing the budget, be- [
cause i t is under the direction of the ;
Resident; and I am quite certain thatr
the President will contend this year, asj
he did last year, that the budget he has {
submitted is one he has pared down to)
the very minimum. We must either ac- |
cept i t or we must meet what many con- /
ceive to be our responsibilities as Sena-i
tors and as representatives of the people!
by undertaking to find a way to reduce!
it, where and if it can be reduced, without destroying or unduly impairing essential services of the Government.
I have said that the final responsibility
for fiscal policies rests with the Congress
of the United States, but, Mr. President,

JANUARY 19

the initial responsibility is and shall remain with the President of the United
States. I t is his duty to give consideration to and be concerned about the solvency of the Government and the pursuit of sound fiscal policies of the Government. He has the duty and responsibility of requesting appropriations of
the Congress. The Congress has provided him with a staff of experts i n the
Bureau of the Budget to enable him to
study the financial conditions of the
Government, to screen requests for expenditures that come to him and,
through him, to the Congress, from the
different agencies of the executive
branch of the Government. Thus, the
Congress, in great measure, relies upon
the President of counsel and guidance
i n the matter of Federal expenditures
and, while the Congress has the final responsibility to say yes or no to budgetary
requests of the President, this does not
relieve the President from the duty to
cooperate with the Congress i n establishing and pursuing sound fiscal policies, in attaining and keeping a balanced
budget, and in keeping the Government
solvent. The President of the United
States has just as solemn a duty as has
the Congress to formulate sound fiscal
policies, to the end that the Government
may keep on a safe and sane course and
not go down the road to insolvency, notwithstanding the fact that the final
power is reposed in the Congress itself
to prevent such a course.
I do not care to rehash all the arguments I made in support of Senate Joint
Resolution 108 and Senate Joint Resolution 131 when those resolutions were
offered as amendments to other bills at
the last session of Congress, but I should
like to point out the divergent views entertained and expressed by myself and
by the majority leadership with respect
to Senate Joint Resolution 108, as reflected by the debate when that measure
was under consideration.
The majority leader, speaking in opposition to the resolution, as shown by
the CONGRESSIONAL RECORD of June 21,
1949, at pages 8203-8205, stated:
I m a i n t a i n "frith all the sincerity I possess
t h a t the Congress of the United States has
the responsibility for cutting appropriations. The President of the United States
submits his budget to the Congress, and
under the Constitution and laws of the
country it is the duty of the Congress to
say whether or not i t will approve funds
requested i n t h a t budget, whether i t will
cut the budget, or whether i t will increase
the budget. I t is our responsibility; and
i n my judgment we should not shift the
responsibility to the President of the
United States and tell h i m to cut the
budget 5 or 10 percent after we ourselves
refused to do so i n the Senate. For t h a t
reason, i n view of what has happened in
connection with appropriation bills which
have come before us, certainly the majority
leader is not going along w i t h that kind of
a resolution. We should have the courage to
reduce appropriations if we (Jesire to do so.
I f we do not have the courage to do it, we
should not shift our responsibility to the
Executive.

I pause to say I have confidence in the
Congress. I believe the Congress has
the "courage to do it. I question that the
Congress has equipped itself with the
proper facilities and technical help to
enable it to reduce it at all times intel-

630

CONGRESSIONAL

RECORD—SENATE

ligently. 'That is what I think is needed. f quate facilities to do just what the President says i t is the duty of the Congress
That is what the bill I have introduced
to do—to "analyze all appropriation
seeks to do.
bills." After having equipped ourselves
A little later in the same speech, the
able majority leader further stated:
• to do a thorough job of analyzing approBut, Mr. President, the Senate cannot do { priation bills and the President's budget,
what, is attempted to be done by the joint \ then the Congress can better meet its reresolution, simply pass the buck to the Pressponsibility of voting the appropriations
ident of the United States, and hope to conwhich the President requests of it, elimivince the American people that we are donating some items entirely and making
ing our duty and accepting our responsibility
reductions i n others where reductions
as Senators. I say i t is ridiculous to place
can and should be made.
that responsibility on the President, after he
Pursuing the argument that was made
himself has said t h a t he has had his experts
against Senate Joint Resolution 108, that
work on the budget, that he has cut it to
the bone; and then has sent i t to us either
it is the full responsibility of Congress to
to reduce or to increase. Now some Senacut appropriations, and the President's
tors propose that we send the problem right
statement that it is the duty of Congress
back to him, that we delegate to him the
to analyze all appropriation bills, i t is
power to appropriate for the Congress of the
obvious that unless the Congress adeUnited States.
quately equips itself to do this, it defiLike others, constituting a majority of
nitely cannot adequately or fully meet
the membership of this body, I did not
that responsibility. I f the Congress
accept what I conceived to be an unsound
simply accepts the ex parte evidence
argument on the part of the majority
submitted at hearings of the Approprialeadership of this body. After listening
tions Committees by the executive
to the able, but what I conceived to be j branch of the Government, including its
the unsound, argument of our distinBureau of the Budget, and votes approguished majority leader, I stated, as I priations accordingly, for all practical
4
shown by the CONGRESSIONAL RECORD of
purposes and effect i t will simply be abAugust 29, 1949, at page 12016, as foldicating the power of appropriation to
lows :
the Chief Executive of the Nation.
I do not care who shouts that the passing
I f 'we are going to follow the Budget
of this resolution is an act of political
plah, if we are going to take the evicowardice. The President of the United
dence adduced before the AppropriaStates cannot escape his share of either the
tions Committees from the heads of the
blame or the legal and moral responsibility
executive agencies of the Government, if
for any deficit that occurs either great qr
we are going to take that evidence withsmall so long as the Congress does not approout any question or check against it,
priate in excess of his budget recommendations.
then we are, in effect, absolutely delegating to the executive branch of the GovNo, Mr. President, this is not an act of
political cowardice. On the contrary, it is
ernment the writing of the "ticket" for
sound legislation necessary i n the public
appropriations.
welfare, and failure to balance the budget or
Too long already the Congress has lato hold the deficit to the minimum this
bored under the handicap of an outlegislation makes possible may well prove
moded system of checking against the
to be a stupid and dangerous blunder. The
risk is too great. This living beyond our
executive branch of the Government
means in government must be stopped. I t
with respect to budget requests for apoften takes courage to da our duty, and the
propriations. This course cannot be
duty to maintain sound fiscal policies now
continued in the face of the challenge
is so impelling—the safety and security of
that now confronts us. Deficit spending
the Nation is involved.
lias already reached a down-hill moI reiterate, with even stronger em- mentum. The deficit for 1951, if the
phasis than then, that the necessity for President's program is followed, will be
maintaining sound fiscal policies is now greater than the deficit of $5,000,000,000
so impelling as to involve the safety and i n 1950, and there is every indication
security of the Nation.
that each succeeding year deficits will increase unless the Congress itself puts on
When this resolution was defeated by
a vote of 49 yeas to 28 nays, to which I the brakes. The American people want
the brakes applied. The Congress is the
have already alluded, certain newspapers—I believe one of them was the instrumentality of the people that has
New York Times—on September 2, 1949, the power to apply the brakes.
quoted the President of the United States
The urgency of action by Congress i n
as saying:
this area has been stressed by many outstanding authorities who have joined in
The Senate has done the right thing. I t
the large chorus of protests against unwas the duty of Congress to analyze all appropriation bills, and to pass them or not. I t
balanced budgets i n these times of high
was not a function that they could transfer
national income, high taxes, and a high
to the President.
level of prosperity. Speaker of the
I do not agree with all the President House R A Y B U R N is reported to have
said, but let us accept this much of his stated recently that "A prudent man pays
his debts when he has the money."
statement:
Similarly, Dr. Edwin G. Nourse in a
I t was the duty of the Congress to analyze
recent speech, which was followed shortall appropriation bills.
ly by his resignation as Chairman of the
I can agree with this, Mr. President. President's Council of Economic AdI t is our duty to analyze them, and it is visers, stated:
our responsibility to make the final deciI am not happy either when I see Governsion. That is what the bill I have introment slipping back into deficits as a way of
duced today seeks to do—to better equip life when production and employment are
high, instead of putting its fiscal house i n
the Congress with necessary and ade


JANUARY 19

order and husbanding reserves to support
economy if less prosperous times overtS
us.

Dr. Nourse reiterated his position in a
speech at Richmond on January 13, in
which he asserted that every effort should
be bent toward getting the spending policies out of the red if the Nation is to
avoid cracks in its economic structure,
•and stated that he told the President
that—
The administration has resorted
inflationary short-cuts, and I think
deliberate launching of a program
prosperity is a grave mistake. * •
I don't think the program is either
progressive.

again to
that the
for false
* And
sound or

I have not seen the article, Mr. President, and cannot vouch for the accuracy
of it, but I am in receipt of a letter from
one of my constituents, Mr. M. P. Sloan,
a farmer of Pocahontas, Ark., from which
I quote as follows:
I have just read Senator Capper's The Reddest Menace to America is Government Red
Ink.

Then he says, " I believe there is a lot
of truth in it," and he quotes again from
the article as follows:
The flood of red ink can overwhelm and
destroy us as individuals, as family units, and
as a nation. I t can be as devastating as an
atomic bomb explosion. We had better stop
i t and the inevitable inflation that follows
it, before it is too late.

Mr. President, I subscribe to tho e
timents, and I resojve to do everyt
in my power to stop it. I intend to vote
accordingly in this session of Congress.
I n closing I remind my colleagues of
what President Franklin D. Roosevelt
said, before he became President, i n a
speech he delivered at Pittsburgh on October 18, 1932:
I f a nation is living within its income its
credit is good. I f i n some crisis it lives beyond its income for a year or two, i t can
usually«borrow money temporarily on reasonable terms. But if, like the spendthrift, it
throws discretion to the winds, is unwilling
to make no sacrifice at aU i n spending, extends its taxing up to the limit of the people's power to pay and continues to pile up
deficits, it is on the road to bankruptcy.

Mr. President, I do not propose by my
vote and by my services here to help
America travel down that road.
Mr. President, i n conclusion, I wish to
invite my colleagues to study this proposed legislation, and I urge them to give
to me and to the committee to which the
bill will be referred the benefit of their
study, their counsel, and their suggestions, to the end that we may all work
together to do something about this problem which I think may well prove to be
a challenge, a definite threat, and a danger to our future security and liberty.
Mr. McCARRAN. Mr. President, I
wish to join i n the expressions of the able
Senator from Arkansas. I entered the
Chamber during the course of his prj
sentation. I take this opportunity
j o i n i n the expressions he has made!
which I have listened. From observations made i n a study throughout Europe a little while ago, I found, as have
others, that today the American dollar
is the only sound currency i n the world.
I f anything should occur which would

630

CONGRESSIONAL

air the integrity and strength of the
^ ^ e r i c a n dollar, I do not know where
civilization might go, nor where, indeed, the American way of life might go.
So I join with the able Senator from
Arkansas in expressing the hope that the
Congress of the United States may take
unto itself that which belongs to the
Congress, and see to it that deficit spending shall be ended.
Mr. McCLELLAN. I thank the Senator from Nevada.
T H E WORK OF THE SENATE COMMITTEE
ON THE JUDICIARY

Mr. McCARRAN. Mr. President, I
sought recognition so that I might speak
for a moment of the committee of which
I have had the privilege for some time of
being the chairman, namely, the Senate Committee on the Judiciary. That
committee has as many members on its
staff as has any other committee of the
Senate, if not more than has any other
committee of the Senate.
Hence, I think it entirely appropriate
that I speak of the work of that committee. The Judiciary Committee, as the
record will show, has presented to the
Senate for consideration and has itself
considered more legislation, more bills,
more resolutions, and more matters of
vital importance than has any other
committee.
I do not say that with the idea of
speaking disparagingly of other commitbut rather to show to the Senate
I
he United States the load which,
through the Reorganization Act, was
placed on the shoulders of the Judiciary
Committee.
W i t h that in mind I have had prepared
a complete statement and summary of
the work done and accomplished by the
Committee on the Judiciary of the Senate during the first half of the Eightyfirst Congress, and I ask unanimous consent now that the clerk may read and
that there may be inserted as a part of
my remarks a statement prepared from
the records of the Committee on the
Judiciary.
The PRESIDENT pro tempore. Without objection, the clerk will read.
The legislative clerk read as follows:
SENATE
JUDICIARY
COMMITTEE
W O R K LOAD, FIRST SESSION,
CONGRESS

WORK
AND
EIGHTY-FIRST

The work load of the Senate Judiciary
Committee during the first session of the
Eighty-first Congress consisted of 39.2 percent of all Senate bills and resolutions introduced; 45 percent of all House bills and resolutions presented in the Senate; 40.5 percent
of all bills and resolutions, irrespective of
origin.
Not only did the Judiciary Committee get
a far larger share of the work load than any
other standing committee of the Senate; it
also performed a larger share of all committee
work t h a n any other committee. Of 1,203
written reports filed in the Senate by all
committees, the Judiciary Committee filed
which presented 43.5 percent.
\ e total of reports filed to the Senate does
jive the whole picture of committee accy, because committee consideration of
many bills resulted i n adverse action and indefinite postponement. Furthermore, the
committee handled and disposed of more
than 3,000 individual immigration cases, involving suspension of deportation. Each immigration case is equivalent to a bill.

C




RECORD—SENATE

During the first session the Judiciary Committee received 1,244 Senate bills^ and resolutions and 402 House bills and resolutions,
making a total of 1,446 bills and resolutions.
By the end of the session the committee
has disposed of 498 Senate bills and resolutions and 352 House bills and resolutions,
or a total of 850 bills and resolutions.
Of the bills thus disposed of, 122 were
general bills other than claims or immigration; 498 were private relief bills; 210 were
private immigration bills; 9 were general
claims bills; and 11 were general immigration
bills.
Committee approval was granted to 241
Senate bills and resolutions and 290 House
bills and resolutions, or a total of 531 bills
and resolutions of both Houses.
( I t will be noted that written reports were
filed by the Committee with respect to all but
7 of the 531 bills and resolutions approved.)
Of the bills and resolutions acted upon
favorably, 75 were general bills other than
claims or immigration; 302 were private relief
bills; 138 were private immigration bills; 9
were general claims bills; and 7 were general
immigration bills.
Bills indefinitely postponed by the committee included 257 Senate bills and resolutions, 62 House bills and resolutions, or a
total of 319 bills and resolutions of both
Houses.
Of the bills thus acted upon unfavorably,
47 were general bills other than claims or
immigration; 196 were private relief bills, 72
were private immigration bills; and 4 were
general immigration bills.
Measures pending before the committee at
the end of the session included 746 Senate
bills and resolutions and 50 House bills and
resolutions, or a total of 796 bills and resolutions of both Houses.
Of these bills, 119 are general bills other
than immigration and claims; 164 are private
relief bills; 449 are private immigration bills;
24 are general claims bills; and 40 are general
immigration bills.
I t will be noted the committee disposed of
352 House bills and resolutions out of 402
such measures referred to it, leaving only 50
House bills and resolutions pending at the
end of the session.
I n comparison, out of 1,244 Senate bills
and resolutions referred to it, the committee
acted upon 498, leaving 746 Senate bills and
resolutions pending.
( I n this connection it should be noted the
committee received 294 Senate bills and 117
House bills subsequent to June 30.)
Suspensions of deportation by the Attorney General, under authority delegated by
the Congress, are submitted in groups; but
in the committee, each such individual case
requires separate investigation, appraisal,
and action. At the beginning of the first
session, there were pending i n the committee
1,501 cases of suspension of deportation, to
which were added 2,926 additional cases submitted during the session, making a total of
4,427 cases; of which 2,966 were approved, 38
were rejected, 85 were "screened out" and
held for further consideration, and 4 were
withdrawn by the Attorney General; leaving
1,334 cases "in process" at the end of the
session.
(The Chief of the Adjudication Division of
the Immigration and Naturalization Service
estimates that during the second session of
this Congress, approximately 5,000 additional
cases of suspension of deportation will be
transmitted to the Congress for approval.
These 5,000 cases will include cases for the
adjustment of the status of displaced persons, pursuant to the displaced persons law.
No such cases of adjustment were included
in the suspensions reported during the first
session.)
During the first session, the committee received 138 executive nominations, of which
63 were Federal judges, 30 were United States
district attorneys, 33 were United States mar-

JANUARY 19

shals, 1 was Attorney General of the United
States, 2 were assistant attorneys general, 3
were members of the Displaced Persons Commission, 3 were members of the War Claims
Commission, and 3 were members of the Motor Carrier Claims Commission.
At the end of the session, nominations
not yet acted upon totalled 29, of which 23
were nominations submitted within less than
a week of the end of the session.
During the session, the committee and its
subcommittees conducted 91 hearings, which
involved 198 separate hearing sessions. The
record of these hearings total 20,220 folios.

Mr. McCARRAN. Mr. President, I file
this report with the Senate as a compliment to the members of the Committee
on the Judiciary of the Senate, 13 members in all. Twelve of the thirteen, regardless of party lines, have devoted
their time, their energy, and their best
efforts to a collossal load which has been
given to the committee. W i t h our best
efforts we have accomplished the result
that is set out in this report.
Mr. DONNELL. Mr. President/will the
Senator yield?
Mr. McCARRAN. I n a moment. I desire at this time to pay my personal respects and to offer my sincere gratitude
and my compliments to the members of
the committee, who, regardless of political lines, served with me on the committee.
I now yield to the Senator from
Missouri.
Mr. DONNELL. Mr. President, the
Senator referred to 12 out of the 13 members of the committee. I assume he was,
i n modesty, eliminating himself.
Mr. McCARRAN. That is correct.
Mr. DONNELL. I f I may have the
privilege of saying just a word with respect to the activities and work of our
distinguished chairman, to my mind, as
the chairman of the Judiciary Committee, he has made himself a place for
many, many years i n this great body,
whether he be here in person or in memory, by reason of the great and outstanding service which he is rendering and has
rendered as chairman of the Committee
on the Judiciary of the Senate. I take
pleasure in saying this very brief word of
tribute to him, and giving this expression
of my admiration for his fine qualities,
integrity, and ability.
Mr. McCARRAN. I am, indeed, gratef u l for the kind remarks of the Senator
from Missouri.
At this time, Mr. President, I wish to
draw the attention of the Senate to a
highly important phase of the work of
the Committee on the Judiciary. Having taken occasion to make an intimate
study of the matter of immigration, and
especially an intimate study of the matter of displaced persons as that phase of
immigration comes to the committee of
which I have the honor of being chairman, I draw the attention of the Senate
to the colossal load of immigration matters which are referred to the committee.
I t is estimated that 5,000 cases will be
referred to the committee during the second session of the Eighty-first Congress.
The record shows the disposal of thousands of cases during the first session.
Mr. President, there are being
brought into this country unlimited
thousands of ^immigrants about whom
there is a question as to whether or not

630

CONGRESSIONAL

they fit into our ideology. Indeed,
no more vital question can come before
the Senate and before the Congress
than whether or not there are being
brought into this country those who are
enemies of our form of government. I f
that is the case, then the load that is
placed on the shoulders of the Committee
on the Judiciary and on the Congress
of the United States becomes all the
more burdensome, all the more important, all the more colossal.
I draw the attention of the Senate to
the fact that it is estimated that 5,000
cases will come before the Judiciary
Committee during the second session
of the Eighty-first Congress, including
the question of displaced persons. I f
that shall follow, then it is for the Senate and for the Congress to be alert every
minute to every one of the immigration
cases that comes before this body.
The staff of the Committee on the Judiciary, the membership of the Committee on the Judiciary, yea, indeed, the
staff of the whole Senate, must be called
into play in order that we may to the
best of our ability determine whether
or not any and every individual who
comes here seeking admission to our
land, or citizenship, is worthy of citizenship. I f the screening that is taking
place abroad is ineffective, unworthy,
and incompetent, then it is time for us to
devise another method of screening, another method of determination as to
whether or not there are being brought
into our country enemies to our form of
government, and if that is so, then we
must stop it.
Mr. HAYDEN. Mr. President, will the
Senator yield?
Mr. McCARRAN. I yield to the Senator from Arizona.
Mr. HAYDEN. I appreciate the great
burden that is placed upon the Senate
Committee on the Judiciary by a requirement in the law—why.it was ever
enacted I am not quite clear—that the
Committee on the Judiciary shall pass
upon deportation cases. Obviously that
is purely an executive function. Why
should a committee of the Senate be
required to pass upon the question of
whether or not a person is lawfully i n the
United States? I t would be just as reasonable to expect a congressional committee to go to Europe and screen every
person who is proposed to be brought to
the United States under any immigration law. That is clearly an executive
function. Has the Senator ever considered the advisability of repealing that
provision of the statute which burdens
his committee with 5,000 cases?
Mr. McCARRAN. I n answer to the
inquiry of the Senator from Arizona, I
will say that that has been a matter
of consideration. So far as I am concerned, I would not advocate repeal, because it might appear that the committee
is trying to shirk its duty. I am not
one who will shirk his duty. I shall try
to perform the duty as best I can.
Mr. HAYDEN. I am quite sure that
whoever initiated that statute had no
idea that a Senate committee would be
required in one session of Congress to
pass upon 5,000 deportation cases. I t
is perfectly obvious that Senators, along



RECORD—SENATE

with their other duties, cannot individually look into cases of this kind. The
function is purely an executive one.
Congress enacts statutes providing who
can and who cannot come into the United
States. I t enacts statutes providing for
depprtation of persons who are in the
United States i n violation of our laws,
Why a committee of Congress should be
required to perform an executive function I cannot understand. I t is utterly
illogical to me.
Mr. McCARRAN. I voted against the
Reorganization Act; but it is the law.
So long as it is the law, the Committee
on the Judiciary will attempt to carry
out its duties under the law. Let me
say to the Senator from Arizona and to
the Senate that it is almost impossible
to carry it out as it should be carried
out. I t is almost impossible to carry it
out with the staff we have. I f that staff
were augmented many times, it would
still be highly questionable whether we
could properly carry it out. However,
I am not ready to shirk the duty, and I
never shall. So long as the provision
remains in the law we will carry it out
to the best of our ability. We have not
been able to meet all the obligations, but
we are going to meet them as best we
can. I wish to say to those who are
critical, if there be those who are critical of the acts of the Committee on the
Judiciary i n passing upon deportation
cases/ that I want Senators to be more
critical, because they cannot be too critical of those who are permitted to remain in this country and obtain citizenship, for that will make those persons
more alive to their duties as citizens, and
more willing to take part in carrying on
the Government of the United States.
Mr. President, today of all times i n the
world, when our country is the pivot
country of the world, we must maintain
integrity in our citizenship, and that is
true also with respect to those who have
come here to make this their haven,
their safe harbor, their hope for the
future.
DELIVERED - PRICE
SYSTEMS
AND
F R E I G H T - A B S O R P T I O N PRACTICES

Mr. KEFAUVER. Mr. President, it is
my understanding that under a previous
order of the Senate the conference report
on Senate bill 1008 is to come up for
consideration tomorrow. Inasmuch as
the conference report differs substantially from the original bill, and as it
was amended in the House and in the
Senate, and also since there has been
a change of members of the Federal
Trade Commission, I made a written request of the Federal Trade Commission
for their opinion on the proposed legislation. I n response to that request I
received a letter dated January 18,1950,
which represents the majority opinion
of the Federal Trade Commission, and
under date of January 19,1950,1 received
a separate view by the Chairman of the
Federal Trade Commission, Mr. Lowell
B. Mason. I ask unanimous consent
that the two opinions be printed at this
point i n the body of the R E C O R D .
There being no objection, the matters
referred to were ordered to be printed
in the RECORD, as follows:

JANUARY 19
FEDERAL TRADE C O M M I S S I O N ,

Washington,

H o n . ESTES KEFAUVER,

January

United States Senate,
Washington,

18, 1950

D. C.

DEAR SENATOR KEFAUVER: T h i s i s i n f u r t h e r

response to your letter of January 11, 1950,
and the request therein for an analysis of
S. 1008 as reported by the conference committee, and a statement of the Commission's
position w i t h respect to the bill i n its present
form.
The Federal Trade Commission believes
that S. 1008 i n the form i n which it was reported from conference will greatly weaken,
if not destroy, the effectiveness of section 2,
of the Clayton Act as amended, as well as
jeopardize and probably similarly affect other
sections of that act. Two features of the
bill are of paramount importance in this conclusion: (1) the definition of "the effect
may be" contained in section 4 - D of the
bill and (2) the conflict between sections
2-B and 3 of the bill upon the issue of
whether or not meeting the equally low
price of a competitor in good f a i t h shall constitute a complete defense to charges of price
discrimination.
As introduced by Senator O'MAHONEY, Section 4—D of the bill defined "the effect may
be" as meaning a showing of reasonable
probability of the specified effect. For more
t h a n 20 years the courts consistently interpreted "may be," as used i n the Clayton Act,
as meaning reasonable probability. This interpretation expressed a declared intent of
the Congress to use the Clayton Act to curb
monopolistic practices i n their incipieiicy.
This definition was changed during debate
i n the Senate, b u t the original version
w^
>n was
restored by the Committee on the Judiq
of the House. I t is believed t h a t this de
2
0
tion was intended to make sure t h at
at' mlr
meaning of "reasonable probability" should
continue and to settle any doubts raised by
the use of the t e r m "reasonable possibility"
i n the decision of the Supreme fJourt i n
Federal Trade Commission v. Morton Salt
Company.
The bill as reported by the conference
committee provides, however, t h a t the t e r m
"the effect may be" shall mean t h a t there
is reliable, probative, and substantial evidence of the specified effect. This definition
requires evidence of an effect which cannot
be obtained u n t i l after the effect has appeared. I t therefore amounts to a provision
that the words "may be" shall be read as
"is." The definition would therefore no
longer rest upon the standard of reasonable
probability, and the Commission would not
be able to proceed against a price discrimination because of its probable effects, or even
its certain future effects, b u t could only proceed after the effects had actually occurred.
I t has been said that the conference committee definition of "may be" was intended
to affirm the standards of proof set forth
i n the Administrative Procedure Act. This
purpose could have been accomplished by
defining the term as a reasonable probability
determined from reliable, probative, and substantial evidence, though this would have
been repetitious of the standard presently
applicable.
The conference committee's definition of
"the effect may be" applies directly to the
language of section 2 of *the Clayton Act.
The defined t e r m also appears, however, i n
section 3 of the Clayton Act, prohibiting exclusive-dealing and tying contracts, and also
in section 7, prohibiting corporations frjjj
acquiring the stock of other corporati
when the effect may be substantially to .
sen competition. Similarly, the defined term
appears 5n the bill to amend section 7 of
the Clayton Act which has been passed by
the House, and which the President has just
recommended that the Congress enact. Since
it is unlikely t h a t the courts would give one
meaning to tha term in one section of the

81st C O N G R E S S

C I

2d Session

A

Z

Q

O

A

i

A

/

O

I N THE SENATE OE THE UNITED STATES
JANUARY

19 (legislative day,

JANUARY

4 ) , 1950

M r . M C C L E L L A N introduced the f o l l o w i n g b i l l ; which was read twice and
referred to the Committee on Expenditures i n the Executive Departments

A BILL
To amend the Legislative Reorganization Act of 1946 to provide
for more effective evaluation of the fiscal requirements of
the executive agencies of the Government of the United
States.
1

Be it enacted by the Senate and House of Representee

2

tives of the United States of America in Congress assembled,

3

That section 138 of the Legislative Reorganization A c t of

4

1946, as amended, is hereby amended to read as follows:

5

"JOINT COMMITTEE ON THE BUDGET

6

"SEC. 138. (a) There is hereby created a joint service

7

committee to be known as the Joint Committee on the

8

Budget

9

mittee")

10




(hereinafter in this section called the "joint comto be composed of ten members as follows:

" (1) Five Members who are members of the Com-

2
1

mittee on Appropriations of the Senate, three from the

2

majority party and two from the minority party, to be

3

chosen by such committee; and

4

"(2)

Five Members who are members of the Com-

5

mittee on Appropriations of the House of Representatives,

6

three from the majority party and two from the minority

7

party, to be chosen by such committee.

8

"(b)

No person shall continue to serve as a member of

9

the joint committee after he has ceased to be a member of

10

the committee from which he was chosen, except that the

11 members chosen by the Committee on Appropriations of
12

the House of Representatives who have been reelected may

13

continue to serve as members of the joint committee not-

14

withstanding the expiration of the Congress.

15

the joint committee shall not affect the power of the re-

16

maining members to execute the functions of the joint com-

17

mittee, and shall be filled in the same manner as the original

18

selection, except that (1) in case of a vacancy during an

19

adjournment or recess of Congress for a period of more

20

than two weeks, the members of the joint committee who

21

are members of the committee entitled to fill such vacancy

22

may designate a member of such committee to serve until

23

his successor is chosen by such committee, and (2) in the

24

case of a vacancy after the expiration of a Congress which

25

would be filled from the Committee on Appropriations of




A vacancy in

3
1

the House of Representatives, the members of such commit-

2

tee who are continuing to serve as members of the joint

3

committee, may designate a person who, immediately prior

4

to such expiration, was a member of such committee alicl

5

who is reelected to the House of Representatives, to serve

6

until his successor is chosen by such committee.

7

" (c) The joint committee shall elect a chairman and

8

vice chairman from among its members at the first regular

9

meeting of each session: Provided,

10

hotvever, That during

even years the chairman shall be selected from among the

11 members who are Members of the House of Representatives
12

and the vice chairman shall be selected from among the

13

members who are Members of the Senate, and during odd

14

years the chairman shall be selected from among the members

15

who are Members of the Senate and the vice chairman shall

16

be selected from among the members who are Members of

17

the House of Representatives.

18

"(d)

A majority of the Members of each House who

19

are members of the joint committee shall together constitute

20

a quorum for the transaction of business, but a lesser num-

21 ber, as determined by the joint committee, may constitute a
22

subcommittee and be authorized to conduct hearings and

23

make investigations.

24

designated shall constitute a quorum for the conduct of any

25

hearing or investigation, but the concurrence of a majority




A n y member of a subcommittee so

4
1

of the members of such subcommittee shall be necessary

2

before any report or findings may be submitted to the joint

3

committee,

4

" ( e ) I t shall be the duty of the joint committee—

5

"(1)

( A ) to inform itself on all matters relating

6

to the annual budget of the agencies of the United

7

States Government, j ^ i n g ^ j m d afjer the_preparation

8

thereof; (B) to provide the Committee on Appropria-

9

tions of the House of Representatives and the Committee

10

on Appropriations of the Senate with such information

11

on items contained in such budget, and the justifications

12

submitted in support thereof, as may be necessary to

13

enable said committees to give adequate consideration

14

thereto; and (C) to consider all available information

15

relating to estimated revenues, essential programs, and

16

changing economic conditions, and, on the basis thereof,

17

report to said committees findings relating to necessary

18

adjustments or revisions in appropriations as may be_

19

required to balance the budget ;

j^i

iw'""*'^^

"' """•"^"'V"iiw^wiiiiiiiiiirS"''"'Vf''THr"

20

" ( 2 ) to recommend to the appropriate standing

21

committees of the House of Representatives and the

22

Senate such changes in existing laws as may effect

23

greater efficiency and economy in government;

24




" (3) to make such reports and recommendations to

5
1

any standing committee of either House of Congrese

2

or any subcommittee thereof on matters within the juris-

3

diction of such standing committee relating to devia-

4

tions from basic legislative authorization, or in relation

5

to appropriations approved by Congress which are not

6

consistent with such basic legislative authorization, as

7

may be deemed necessary or advisable by the joint

8

committee, or as may be requested by any standing

9

committee of either House of Congress or by any sub-

10

committee thereof.

11

" (f) The joint committee, or any subcommittee thereof,

12

shall have power to hold hearings and to sit and act any-

13

where within or without the District of Columbia whether

14

the Congress is in session or has adjourned or is in recess;

15

to require by subpena or otherwise the attendance of wit-

16

nesses and the production of books, papers, and documents;

17

to administer oaths; to take testimony; to have printing and

18

binding done; and to make such expenditures as it deems

19

advisable within the amount appropriated therefor.

20

penas shall be issued under the signature of the chairman

21

or vice chairman of the committee and shall be served by

22

any person designated by them.

23

102 to 104, inclusive, of the Revised Statutes (U. S. C.,
S. 2898




2

Sub-

The provisions of sections

6
1

title 2, sees. 192-194) shall apply in the case of any failure

2

of any witness to comply w i t h any subpena or to testify when

3

summoned under authority of this section.

4

" (g) Employees

of the joint

committee,

upon the

5

written authority of the chairman or vice chairman, shall

6

have the right to examine the books, documents, papers,

7

reports, preliminary and other estimates of budget require-

8

ments, or other records of any agency of the United States

9

Government w i t h i n or without the District of Columbia:

10

Provided,

however, That such employees shall not be per-

il

mitted access to books, documents, papers, reports, estimates,

12

records, or any other thing containing information classified

13

for security purposes unless specifically authorized by the

14

joint committee to receive such types of classified information.

15

" (h) A t the request of any member of the Committee

16

on Appropriations of either House or of any member of a

17

subcommittee thereof, or at the request of any member of

18

the staffs of such committees or subcommittees, professional

19

employees of the joint committee may be detailed to advise

20

and assist such committees or subcommittees or the staffs

21

thereof during consideration of any appropriation bill or

22

part thereof.
" (i) The joint committee shall, without regard to the

24

civil-service laws or the Classification A c t

25

amended, employ and fix the compensation of a staff director




of 1949, as

7
1

and such other professional, technical, clerical, and other

2

employees, temporary or permanent, as may be necessary

3

to carry out the duties of the joint committee, and all such

4

employees shall be appointed without regard to political

5

affiliation and solely on the ground of fitness to perform

6

the duties to which they itiay be assigned: Provided,

7

ever, That such appointment may be terminated by the

8

concurrence of a majority of the members of the joint com-

9

mittee.

how-

No person shall be employed by the joint committee

10

until a thorough investigation as to loyalty and security

11

shall have been made by the Federal Bureau of Investigation

12

and a favorable report on said investigation submitted to
the chairman or vice chairman.

14

"(j)

I t shall be the duty of each agency of the Gov"

«

15

ernment to supply to the joint committee duplicate copies

16

of any budgetary request submitted to the Bureau of the

17

Budget, either for regular or supplemental appropriations

18

required for each fiscal year, with the detailed justifications

19

in support thereof.

20

" (k) When used in this section, the term 'agency'

21 means any executive department, commission, council, inde22

pendent establishment, Government corporation, board, bu-

23

reau, division, service, office, officer, authority, administra-

24

tion, or other establishment, in the executive branch of the

25

Government.




Such term includes the Comptroller General

8
1

of the United States and the General Accounting Office, and

2

includes any and all parts of the municipal government of

3

the District of Columbia except the courts thereof.

4

" (1) There are hereby authorized to be appropriated

5

such sums as may be necessary to carry out the purposes of

6

this section.

7

committee shall be disbursed by the Secretary of the Senate

8

upon vouchers signed by the chairman or vice chairman."




Appropriations for the expenses of the joint




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