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him before America's Town Meeting of the
Air in New York on January 18, 1945, which
appears in the Appendix.]
[Mr. CAPPER asked and obtained leave to
have printed in the RECORD an address e n titled "Time To Take Stock" delivered by
Hon. Alf M. Landon, of Topeka, Kans., before the annual meeting of the junior chamber of commerce in Cleveland, Ohio, January
18, 1945, which appears in the Appendix.]
[Mr. MAYBANK asked and obtained leave
to have printed in the RECORD an address on
compulsory military training delivered by
Brig. Gen. Albert L. Cox at the Central High
School in Washington on January 18, 1945,
under the auspices of the Parent-Teachers'
Association, which appears in the Appendix.]
. [Mr. BYRD asked and obtained leave to
have printed in the RECORD a plan to regulate full-time work in essential industry
by every available person, proposed by the
Kiwanis Club of West Point, Va., which
appears in the Appendix.]
[Mr. TAFT asked and obtained leave to
have printed in the RECORD an editorial entitled "An Outstanding Governor Retires,"
from the Columbus Dispatch of Sunday,
January 7, 1945, which appears in the

Mr. McKELLAR. As in executive session, from the Committee on Post Offices and Post Roads, I report favorably
the nomination of Ruth C. Fossett, to be
postmaster at Mount Vernon, Mo., in
place of Robert Stemmons, resigned.
The VICE PRESIDENT. The nomination will be received and placed on the
Executive Calendar.
Mr. McKELLAR. As in executive session, I now ask unanimous consent for
immediate consideration of this postmaster- nomination, in which the President of the Senate is.interested.
The VICE PRESIDENT. Without objection, it is so ordered. The nomination will be stated.
The legislative clerk read the nomination of Ruth C. Fossett to be postmaster
at Mount Vernon, Mo.
Mr. McKELLAR. I ask unanimous
consent, as in executive session, that the
nomination be confirmed.
Mr. WHITE. Does the Senator ask
unanimous consent for the confirmation
of a postmaster nomination?
Mr. McKELLAR. Yes, as in executive
Mr. WHITE. Has the nomination
been reported from the committee, and
is it on the Executive Calendar?
Mr. McKELLAR. Yes.
Mr. TAFT. Mr. President, what is
the nomination?
Mr. McKELLAR. The nomination
was just read at the desk. I ask that i t
again be read for the benefit of the Senator from Ohio.

nation will be read.
The legislative clerk again read t h e
The VICE PRESIDENT. Without objection, the nomination is confirmed.
Mr. MURRAY. Mr. President, I have
sent to the desk on behalf of the
Senator from New York [Mr. WAGNER],
the Senator from Utah [Mr. THOMAS],
the Senator from Wyoming
O'MAHONEY], and myself, a bill to establish a national policy and program for
assuring continuing full employment in
a free competitive economy, through the
concerted efforts of industry, agriculture, labor. State, a [ local governments,
and the Federal Government.
This bill offers a fundamental method
of attacking America's No. 1 post-war
problem: that of assuring post-war jobs
for the people of our country.
I ask that the bill be printed in the
body of the RECORD, and that a series
of questions and answers which I have
prepared in explanation of the bill be
printed following the bill itself.
The VICE PRESIDENT. Without objection, it is so ordered.
. .
The bill (S. 380) to establish a national
policy and program for assuring continuing full employment in a free competitive economy, through the concerted
efforts of industry, agriculture, labor,
State and local governments, and the
Federal Government, introduced by Mr.
MURRAY (for himself, Mr. WAGNER, Mr.
THOMAS of Utah, and Mr. O'MAHONEY),
was read twice by its title, referred to
the Committee on Banking and Currency,
and ordered to be printed in the RECORD,
as follows:
Be it enacted, etc.,
SECTION 1. This act may be cited as the
"Full Employment Act of 1945."

Sac. 2. The Congress hereby declares that—
(a) It is the policy of the United States
to foster free competitive enterprise and the
investment of private capital in trade and
commerce and in the development of the
natural resources of the United States;
(b) All Americans able to work and seeking work have the right to useful, remnueratlve, regular, and full-time employment, and
it la the policy of the United States to assure
the existence at all times of sufficient employment opportunities to enable all Americans who have finished their schooling and
who do not have full-tune housekeeping responsibilities freely to exercise this right;
(c) In order to carry put the policies set
forth in subsections (a) and (b) of this
section, and in order to (1) promote the
general welfare of the Nation; (2) foster and
protect the American home and the American family as the foundation of the American
way of life; (3) raise the standard of living
of the American people; (4) provide adequate
employment opportunities for returning veterans; (5) contribute to the full utilisation
of our national resources; (6) develop trade
and commerce among the several States and
with foreign nations; (7) preserve and
strengthen competitive) private enterprise,
particularly small business enterprise; (8)
strengthen the national defense and security;
and (?) contribute to the establishment and
maintenance of lasting peace among natlons, it is essential that continuing full em-


ployment be maintained in the United
(d) In order to assist industry, agriculture,
labor, and State and local governments in
achieving continuing full employment, it is
the responsibility of the Federal Government
t o pursue such consistent and openly arrived
at economic policies and programs as will
stimulate and encourage the highest feasible
levels of employment opportunities through
private and other non-Federal investment
and expenditure;
(e) To the extent that continuing full employment cannot otherwise be achieved. it is
the further responsibility of the Federal Government to provide such volume of Federal
investment and expenditure as may be needed
to assure continuing full employment; and
(f) Such investment and expenditure by
the Federal Government shall be designed t o
contribute to the national wealth and wellbeing, and to Stimulate increased employment opportunities by private enterprise.

Sao. 3. (a) The President shall transmit t o
Congress at the beginning of each regular session the National Production and Employment Budget (hereinafter referred to as the
"National Budget"), which shall set forth in
summary and detail for the ensuing fiscal
year, or such longer period as the President
may deem appropriate—
(1) the estimated size of the labor force,
including the self-employed in industry and
(2) the estimated aggregate volume of i n vestment and expenditure by private enterprises, consumers, State and local governments, and the Federal Government, required
to produce such volume of the gross national
product, at the expected level of prices, as will
be necessary t o provide employment opportunities for such labor force (such dollar volume being hereinafter referred to as the "full
employment volume of production"); and
(3) the estimated aggregate volume of
prospective investment and expenditure by
private enterprises, consumers. State and local
governments, and the Federal Government
(not taking into account any. increased or
decreased investment or expenditure which
might be expected to result from the programs set forth in such Budget).
The estimates and information herein
called for shall take account of such foreign
investments and expenditure for exports and
imports as affect the volume of the gross national product.
(b) The extent, if any, by which the estimated aggregate volume of prospective i n vestment and expenditure for any fiscal year
or other period, as set forth in the National
Budget in accordance with paragraph (a) (3)
of this section, is less than the estimated aggregate volume of investment and expenditure required to assure a full employment
volume of production, as set forth in the National Budget in accordance with paragraph
(a) (2) of this section, shall for the purposes
of this title be regarded as a prospective deficiency in the National Budget. When there
is a prospective deficiency in the National
Budget for any fiscal year or other period, the
President shall set forth in such Budget a
general program for encouraging such increased non-Federal investment and expenditure, particularly investment and expenditure which will promote increased employment opportunities by private enterprise, as
will prevent such deficiency to the greatest
possible extent. The President shall also include in such Budget such recommendations
for legislation relating to such program as he
may deem necessary or desirable. Such program may include, but need not be limited
to, current and projected Federal policies and
activities with reference to banking and currency, monopoly and competition, wages and



working conditions, foreign trade and investment, agriculture, taxation, social security,
the development of natural resources, and
such other matters as may directly or indirectly affect the level of non-Federal investment and expenditure.
(c) To the extent, if any, that such increased non-Federal investment and expenditure as may be expected to result from actions
taken under the program set forth in accordance with subsection (b) of this section
are deemed insufficient to provide a full employment volume of production, the President
shall transmit a general program for such
Federal investment and expenditure as will
be sufficient to bring the aggregate volume
of investment and expenditure by private
business, consumers, State and local government, and the Federal Government, up to
the level required to assure a full employment volume of production. Such program
shall be designed to contribute to the national wealth and well-being, and to stimulate additional non-Federal investment and
expenditure. Any of such programs calling
for the construction of public works by the
Federal Government shall provide for the
performance of the necessary construction
awarded in accordance with applicable laws,
except where the performance of such work
by some other method is necessary by reason of special circumstances or is authorized
by other provisions of law.

advising and consulting on methods of
achieving the objectives of this act.



priation acts and other statutes, the rate
of Federal investment and expenditure may
be varied to whatever extent and in whatever
manner the President may determine to be
necessary for the purpose of assisting in
assuring continuing full employment, with
due consideration being given to current and
anticipated variations in savings and in investment and expenditure by private business,
consumers, State and local governments, and
the Federal Government.

SBC. S. (a) There is hereby established a
Joint Committee on the National Budget, 'to
be composed of the chairmen and ranking
minority members of the Senate Committees
on Appropriations, Banking and Currency,
Education and Labor, and Finance, and seven
additional Members of the Senate, to be appointed by the President of the Senate; and
the chairmen and ranking minority members
SEC. 7. The heads of departments and esof the House Committees on Appropriations,
tablishments shall, at the request of any
Banking and Currency, Labor, and Ways and
committee of either House of Congress, furMeans, and seven additional Members of the
nish such committee with such aid and
House of Representatives to be appointed by
information with regard to the National
the Speaker of the House of Representatives.
Budget as it may request.
The party representation of the joint committee shall reflect the relative membership
of the majority and minority parties in the
SEC. 8. Nothing contained herein shall be
Senate and the House of Representatives.
construed as calling for or authorizing—
(b) It shall be the function of the Joint
(a) The operation of plants, factories, or
other productive facilities by the Federal
(1) to make a study of the National Budget
transmitted to Congress by the President in
(b) The use of compulsory measures of
accordance with section 3 of this act; and
work by private concerns under contractstype whatsoever in determining the allo(2) to report to the Senate and the House
cation or distribution of manpower;
of Representatives, not later than March 1
(c) Any change in the existing procedures
of each year, its findings and recommendaon appropriations; or
tions with respect to the National Budget, to(d) The carrying out of, or any appropriagether with a Joint resolution setting forth
tion for, any program set forth in the Nafor.the ensuing fiscal year a general policy
tional Budget, unless such program shall
with respect to such National Budget to serve
have been authorized by provisions of law
as a guide to the several committees of Con(d) If the estimated aggregate volume of
other than this act.
gress dealing with legislation relating to such
prospective investment and expenditure for
any fiscal year or other period, as set forth in National Budget.
The statement presented by Mr. MUR(c) Vacancies in the membership of the
the National Budget in accordance with paraRAY is as follows:
graph (a) (3) of this section, is more than
Joint committee shall not affect the power
the estimated aggregate volume of investof the remaining members to execute the
ment and expenditure required to assure a functions of the committee, and shall be
full employment volume of production, as filled in the same manner as in the case of
1. Does the hill aim at an economic situaset forth in the National Budget in accordthe original selection. The committee shall
tion where there will be 60,000,000 Jobs?
ance with paragraph (a) (2) of this section,
select a chairman and a vice chairman from
The bill purposely does not offer any prethe President shall set forth in such Budget
among its members.
conceived figure for the total' number of jobs
a general program for preventing inflationary
(d) The joint committee, or any duly auneeded to provide full employment. The
economic dislocations, or diminishing the thorized subcommittee thereof, is authorized number of jobs needed for full employment
aggregate volume of investment and expendito sit ana act at such places and times, to
such changing factors as total
ture to the level required to assure « full require by subpena or otherwise the attend- depends on the number of young people in
employment volume of production, or both. ance of such, witnesses and the production population,
the labor force, the size of our post-war
(e) The programs referred to in subsections
of such books, papers, and documents, to ad- armed forces, the extent to which old people
(b).(c),and (d) of this section shall include
minister such oaths, to take-such testimony, retire from the labor market, the number of
such measures as may be necessary to assure
to procure such printing and binding, and to women who resume their full-time housethat monopolistic practices with respect to make such expenditures as it deems advis- keeping duties-, the number of hours worked,
prices, production, or distribution, or other
able. The cost of stenographic services to technological progress, and other consideramonopolistic practices, will not interfere with
report such hearings shall not be in excess of tions. In view of probable changes in these
the achievement of the purposes of this act. 25 cents per hundred words. The provisions items, the exact number of Jobs that would
(f) The National Budget shall include a
of sections102to 104. inclusive, of the Revised
constitute full employment in any one year
report on the distribution of the national
Statutes shall apply in case of any failure of
can best be estimated currently.
income during the preceding fiscal year, or any witness to comply with any subpena, or
2. Does the bill guarantee everyone the
such longer period as the President may deem
to testify when summoned, under authority kind of Job be wants?
appropriate, together with an evaluation of
of this section.
This is not a bill to guarantee jobs to any
the effect upon the distribution of the na(e) The joint committee is empowered to
individual. It aims at making real the timetional income of the programs set forth appoint and fix the compensation of such
honored right of every American able to
in such Budget.
experts, consultants, technicians, and clerical
work and seeking work to find a job, by giv(g) The President may from time to time
and stenographic assistance as it deems
ing him the assurance that there are jobs
transmit to Congress such supplemental or necessary and advisable, but the compensaJo be had.
revised estimates, information, programs, or
tion so fixed shall not exceed the compensa- . 8. Does the bill provide for a planned
legislative recommendations as he may deem tion prescribed under the Classification Act
necessary or desirable in connection with the
of 1923, as amended, for comparable duties. . . The bill aims at creating a dynamic apNational Budget.
The committee may utilize such voluntary proach to the problem of providing exand uncompensated services as it deems
panded production and consumption, thus
necessary and is authorized to utilize the
creating sufficient Job opportunities. The
S e c . 4. (a) The National Budget shall be services, information, facilities, and personnel
approach attempted is not dissimilar to the
prepared in the Executive Office of the Presiof the departments and establishments.
one taken in the Homestead Act which
dent under the general direction and super(f) The expenses of the joint committee
helped expand our system of free enterprise
vision of the President, and in consultation
be paid one-half from the
The kind of
with the members of his Cabinet and other shall of the Senate and one-halfcontingent during the last century.
from the
envisioned in this bill is excellently debeads of departments and establishments.
contingent fund of the House of Represcribed by a quotation from the January 8,
(b) The President shall transmit to the
sentatives upon vouchers signed by the chair1945, issue of the.magazine Time:
several departments and establishments such man or vice chairman.
preliminary estimates and other Information
as will enable them to prepare such plans and
"If Government responsibility means
programs as may be needed during the enstabilization of high business volume by conSEC. 6. (a) The President shall' -review
suing orsubsequent fiscal years to help
trol of the over-all volume of spending and
quarterly all Federal investment and expenachieve a full employment volume of pro- diture for the purpose of ascertaining the
other general measures which do not dictate
ducti o n
(c) The President may establish such' ad- to which the current and anticipated how men shall earn their livings, it would be
visory boards or committees composed of rep- levellevelofnon-Federalinvestment and oxpcna capitalistic blessing."
4. What effect w
resentatives of industry, agriculture, labor, diture warrants any change in the volume
have upon the war effort?
By assuring the countr
and State and local governments, and others, of such Federal investment and expenditure,
ment would not be the aftermath of victory,
as he may deem advisable for the purpose of
(b) Subject to such principles and standards as may be set forth in applicable appro



the enactment off the bill would mean still
greater effort by industry, labor, and agriculture. In particular, it would help avoid
the excessive shifts to nonwar work which
have taken place after every military victory. Above all, the enactment of the bill
unquestionably would contribute to the
morale of our fighting men.
6. What would the passage of this bill
mean for business and agriculture?
The bill alms at the highest levels of sustained production possible under the freeenterprise system, with the least amount of
Government coercion or domination. This
is the economic climate most beneficial to
business and agriculture.
The bill also aims at eliminating the wild
economic fluctuations that have hitherto
been so disastrous for the small businessman
and the small farmer.
6. Does the bill call for increased expenditures by the Federal Government?
The bill is neither an appropriation measure, nor a revenue measure. It provides a
framework within which the administrative
and legislative branches of Government
working with private enterprise may effectively promote such governmental policies
and actions as will bring about maximum
activity on the part of private enterprise.
This is the only effective way of keeping Federal expenditures to a minimum.
At the present time,, nearly half of the
total Job opportunities are being provided by
Government spending for war purposes. As
we approach post-war conditions, this proportion will naturally shrink. Consequently,
we are entering a period in which Federal
expenditures will be declining as expenditures
by business and consumers rise, so that the
total is maintained at the level necessary to
provide full employment.
7. Does the bill provide for "deficit financing?"
The bill provides a positive way for bringing about the greatest possible activity on
the part of business. This, in turn, would
make it possible to reduce Government expenditures to a minimum, Therefore, except in most dire emergencies, the Government would not have to step into the breach
with a spending program.
Furthermore, Government spending does
not necessarily mean "deficit financing." It
is entirely possible for a Government-expenditure program to be financed through
money raised by taxes, rather than through
8. What about the national debt?
The enactment of the bill into law, and
its sound administration, would have the
result of stimulating activity by private enterprise to the maximum. The resultant increase in the production of goods and services
would, over a period of time, permit the collection of a comparatively high volume of
taxes for debt-retirement purposes, which
would be impossible if the national income
were to remain at low pre-war levels. The
annual service upon the debt, morover, would
represent a relatively small proportion of the
national income.
0. How would this bill guard against the
danger of inflation or of a speculative boom;
The best guaranty against inflation is a
larger volume of production of goods and
services. It is precisely the aim of this bill
to stimulate the highest possible volume of
production by private enterprise. Therefore,
this bill provides the best protection imaginable against inflationary tendencies
which may occur during the transition from
a war economy to a peacetime economy.
In addition the President is required to
set forth in the National Budget "a general
program for preventing inflationary economic
dislocations, or diminishing the aggregate
volume of investment and expenditure to
the level required to assure a full employment volume of production, or both" if there

. is a prospect of too much spending in com. parison with the volume of goods available.
10. Does the bill provide for a new W. P. A.?
. It is the very purpose of the bill to assure
a continuing high level of activity upon the
part of prlvate enterprise and thus to prevent
emergency situations in which it might become necessary to resort to a new W. P. A.
On the other hand, should it become necessary to provide additional employment opportunities through Federal public works,
the bill provides for the performance of construction work by private concerns under
contracts awarded in accordance with applicable laws.
11. What is the difference between the
National Budget created by this bill and the
regular Federal Budget? ,
The regular Federal Budget deals with the
' expenditures of the Federal establishments,
together with the extent to which these
expenditures are to befinancedthrough taxes
: or borrowing. It does not reveal the relationship between Federal expenditures and
those of business, consumers, and State and
local governments.
The National Budget, however, deals with
the Nation as. a whole, not merely the Federal Government. In addition to Federal
. expenditures, it includes expenditures of
business, consumers, and State and local
governments. If all expenditures are less
than that required to assure full employment,
. the difference is regarded as a deficit in the
National Budget. Such deficit means unemployment and insufficient production. This
may be overcome by increasing the aggregate
expenditures by business, consumers, and
Government until they equal the amount
required to assure full employment.
12. In what way does a deficit in the Federal Budget differ from a deficit in the National Budget?
The Federal Budget shows a deficit when
expenditures exceed receipts other than
from borrowing. In the National Budget, the
total of consumer, business, and Government
expenditures is always equal to the total of
receipts, for the income of business, consumers, and Government comes only from
these three sources of expenditures. This
balance between the Nation's expenditures
and the Nation's receipts may take place at
any level—either at $200,000,000,000 or at
$100,000,000,000. But when the national total
of all expenditures or all receipts is less than
that required to assure full employment, the
difference is regarded as a deficit in the National Budget. This deficit, which shows up
as unemployment and underproduction, may
be overcome by increasing aggregate expenditures of business, consumers, and Government to equal the amount required to
assure full employment.
13. If it is estimated that there are 60,000,000 persons looking for Jobs and willing to
work, and if it is estimated that private enterprise may provide only 40,000,000 Jobs,
would the bill call on the Federal Government to provide the deficit of 20,000,000 jobs?
Under the bill the estimates as to the number of persons looking for jobs and the number of jobs available in private business
would be made by the President on the basis
of available public and private information.
Once the estimates are made and a deficiency
is found to exist, it is the responsibility of
the President to recommend, and of the Congress to adopt, any measures which they believe necessary and desirable for the purpose
of aiding and encouraging private enterprise
to provide additional job opportunities. Only
it the President and the Congress agree that
an adequate number of additional Job opportunities cannot be created by these various
means, is it the responsibility of the Federal
Government to provide direct programs for
14. Is the National Budget limited to a
single fiscal year?


The question of drawing up a National
Budget for 1 fiscal year or longer: is left to
the judgment of the President. Certain programs of economic development that Congress may want to provide for will present a
long-range character that may be. planned
in 1 year and executed in the course of 2 or
3 years.
Furthermore, individual industries or other
groups in the economy may also find it
- more practical to base their investment plans
on projects covering more than 1 year.
Therefore, the bill allows the President to
present a National Budget for a period longer
than 1 fiscal year.
15. Are existing economic statistics adequate for the effective administration of this
- A tremendous amount of new information
- has become- available both to private enterprise and to Government as a result of the
, war effort. The President has asked the
Bureau of the Census, the Bureau of the
. Budget and cooperating Government agencies
to bring together war and nonwar statistics
. that will be needed for reconversion to postwar production.
The. problem of making advance estimates,
however, will not materially affect the administration of the bill, since provision is
made for a quarterly review of the National
Budget and for whatever changes in the
rate of Federal expenditure which may be
necessary to meet changing conditions.
16. Why isn't the responsibility of developing the National Budget given to one
of the regular Government departments?
The National Budget transcends in scope
the activities and responsibility of any one
department. While it would be based on the
estimates and programs submitted by the various agencies, its development properly belongs in the Executive Office of the President.
17. Is Congress obligated to accept the
National Budget transmitted by the President?
No. Like the regular Federal Budget, the
National Budget is in the nature of a Presidential recommendation to Congress. Under
the provisions of the bill, the Congress would
be free to reject in part or in total the
President's recommendation and to substitute its own program for full employment.
18. Would the enactment of this bill make
other legislation on domestic economic problems unnecessary?
No. The purpose of the bill is to bring
into proper focus the wide range of legislative proposals which affect employment and
which are likely to be sponsored by the administration or various economic groups
proposals in the field of taxation, social security, export trade, and so forth. Its enactment would give- rise to a vastly increased
amount of legislative activity.
19. Why is a Joint Committee on the
Budget set up?
At present, there is no arm of the Congress
that has the responsibility of considering all
the elements in the Federal Budget, or the
relationships between the Federal Budget
and the national economy. With a National
Budget in operation, comprehensive congressional consideration of budgetary problems would be still more important than
under present circumstances. The Joint
Committee on the Budget, therefore, is created to study the National Budget in its entirety.
20. What is the purpose of the joint resolution on the Budget?
At present, individual fiscal measures are
handled separately and without any formal
consideration of budgetary policy in general.
Under the bill, therefore, a Joint resolution
on the Budget is to be drawn up by the Joint
Committee on the Budget and reported to
both Houses, where it would then be debated.
The resulting resolution would then serve as
a general policy framework to guide the operations of the several committees of each



House dealing with fiscal matters. This resolution is to be reported to both Houses by
March 1, of each year, so that' there would be
sufficient time to debate the resolution and
enact fiscal policy measures by the beginning
of the next fiscal year.
21. What changes does the bill call for
in the activities of the various individual
congressional committees?
There would be no change in the activities of the individual congressional committees, except that the Joint resolution on the
Budget would provide a general policy framework within which they would operate.
22. Does the bill provide for lump-sum appropriations to the President?
No. The bill provides for no appropriations at all.
23. How does the philosophy of the bill differ from the "Compensatory economy" philosophy developed during the 1930's?
First of all, it places major emphasis upon
non-Federal expenditures and that Federal
expenditures are only to be used as a last
Second, it provides for preventing unemployment, rather than for "taking up the
slack" after men are walking the street looking for work.

existence has manifested itself in economic systems that have been constantly
changing. At one time western civilization was based upon the feudal manor.
Then came the city and the development
of handicraft industry. Then came the
industrial revolution, and with it the
economic system of free enterprise and
the political system which we call democracy.
In America private enterprise and political democracy have developed and
flourished side by side. They have contributed more to human welfare and human happiness than any previous system.
The American people, therefore, want to
preserve this system. They want it further strengthened and perfected so as to
usher in a still greater future for our
country. They know that no economic
system can survive by remaining static.
Times and conditions change, and our
lives must change with them.
Our free-enterprise system has been
subject to many improvements. Since
the. beginning of the twentieth century,
Mr. MURRAY. Mr. President, I wish we have enacted minimum-wage laws,
to make an explanation of the bill. I un- we have reduced working hours, we have
derstand the Senate is still in the morn- created unemployment compensation
ing hour, but it seems that speeches are benefits, we have provided old-age benebeing made, and if speeches are to be fits, we have guaranteed the right of colmade at this time I want the right to lective bargaining for labor, we have cormake a statement now in support of the rected abuses in the security market and
proposed legislation.
provided protection to investors. We
The VICE PRESIDENT. Is there ob- have made it possible for millions of
jection to the request of the Senator farmers to cooperate among themselves
from Montana? The Chair hears none, and with their Government in matters
and it is so ordered.
of. land use, soil conservation, producMr. BARKLEY. Mr. President, will the tion, and prices. When these laws were
Senator yield long enough to enable me first proposed they were attacked and it
to make an observation?
was charged that they would undermine
Mr. MURRAY. I yield.
our system. But after these laws were
Mr. BARKLEY. Mr. President, for put in operation they were recognized as
years I have sought to secure the enforce- necessary to the strengthening of busiment of the rule which provides that ness enterprise, and today no one would
during the morning hour no Senator dare to propose their repeal.
shall speak longer than 5 minutes. That
While we have been improving and
rule is constantly being violated, and I strengthening our economic system of
hope the President of the Senate, with- free enterprise throughout the years, we
out his attention having to be called to have as yet been unable to control the
it, will enforce that rule. The rule was violent economicfluctuationswhich have
made for a good purpose. in order that resulted in periodic mass unemployment.
Senators who desire to transact business
During the nineteenth century we had
in the morning hour will not have to wait the western frontier, which acted as a
to listen to long speeches. If any Senator safety valve in times of depression. Furdesires to make a speech, he should ob- thermore, it permitted constant expantain unanimous consent, but he should sion. We aided this expansion through
nut transgress the- rule.
the enactment of the Homestead Act, the
Mr. WHITE. Mr. President, may I ex- Railroad Land Grant Act, and the minpress my complete concurrence in what eral and mining laws, which threw open
the majority leader has just stated. I the public domain to exploitation and
think the rule should be respected. I be- development. As early as 1816 we began
lieve that if the rule is respected, by and to enact tariff laws deliberately designed
large, in the length of time its enforce- to protect and foster business rather than
ment will amply justify its existence.
for revenue. Through the pension sysMr. MURRAY. Mr. President, I am in tem following the Civil War, we increased
full sympathy with that rule, and have the capacity of our population to conalways followed it. But if I am to be sume the newly developed riches and
precluded from making a statement in thereby, in turn, provided additional inexplanation of a very important piece centive for further expansion.
of legislation, I shall ask to have the
Expansion is the essence of our capitalprivilege
ist system. But today,, when there is
Mr. BARKLEY. Mr. President, the no longer any frontier in the geographSenator has already obtained unanimous ical sense, we must think of strengthenconsent to make his explanation. I made ing our free competitive economy by exthe statement which I did simply for the panding it from within. Today our new.
benefit of otherSenators, and for future frontier is in our back yard in every State
conduct of business.
Mr. MURRAY. the country. Today we must
and city of Mr. President, in the
history of the world, the struggle for again attempt to foster economic expansion through wise laws, just as we


did when we enacted the Homestead Act
and the other measures which helped develop the West.
If, after the war, we fail to expand,
America will once again be visited with
another great depression. And another
serious depression would mean millions
of disillusioned and jobless men would
have little interest in the maintenance
of a system which offers so little in the
way of good living conditions. It would
give birth to strong political pressures
against such a system.
There are some in this country who
have lost faith in capitalism. It is up
to us in the Congress to stop this trend.
I have a stubborn and abiding faith in
the principle of private competitive enterprise and in the necessity of making
our system work. I have confidence that
we can succeed infindinga way to eliminate its principal weakness—periodic
mass unemployment.
The full employment bill which we are
proposing here today is a bill to help
make free enterprise work. For unless
we make it work, unless we can make it
operate so as to avoid the wild fluctuations that have characterized our economy in past years, capitalism will be
threatened in America and throughout
the world. Already, before the war,
three of the largest nations in the world
had abandoned it, and many other nations were preparing to emulate their
There are some today who dread lest
America be converted to socialism, communism, fascism, or some other ism such
as those that have taken root in other
countries. I say to them—let us make
our system of private competitive enterprise work so well here in America that
other countries will seek to imitate us.
Other nations follow our lead in technology—in mass production methods of
making steel and of fabricating automobiles and airplanes. Why should we
not progress to the point where they will
imitate us in thefieldof economics also?
. Why can we not take the lead in remedying the weaknesses that have developed in our capitalist system? Why can
we not set an example here for all the
peoples of the world by affording the
fullest possible opportunity and encouragement for private initiative and ending
chronic unemployment? Why can we
not demonstrate to the world that it is
possible to have the highest standard of
living without abandoning our cherished
political freedoms?
My colleagues, who have joined me in
sponsoring this bill, the distinguished
senior Senators from New York, Utah,
and Wyoming, have to their credit some
of the most valuable and constructive
social and economic legislation on the
statute books of the Nation. They have
served their country well as chairmen
of important committees of the United
States Senate, and their broad understanding of economic and social problems is well recognized.
As chairman of the Temporary National Economic Committee, the senior
Senator from Wyoming has made a
historic study of the operations of the
American economy. In the final report
of the Temporary National Economic



Committee in March 1941 he made the
following prophetic statement:
The termination of the war effort, putting
to an end, as it may very suddenly, the industrial activity now gaining tremendous
momentum, will bring with it problems more
critical and more fraught with danger than
those which followed the collapse of 1929.
Unless the democratic society of America
shall have prepared in advance for this hour
there will be no alternative except Government action, which will necessarily be as
inconclusive as the action which has heretofore been taken. The unsolved problems
of post-war depression will be heaped upon
the unsolved problems of pre-war depression
and it is difficult to say how, in these circumstances, democracy can survive unless
democracy prepares for peace now.
The distinguished senior Senator from
Wyoming concluded his statement by
stressing the need of finding "a formula
for stimulated production unde.r the impetus of peace rather than war."
. My colleagues and I belieye that the
full-employment bill provides a method
of achieving the desired volume of
peacetime production within the framework of our democratic political institutions and of our economy of free enterprise.
In the past we have made many attempts to grapple with the problem of
unemployment. But we have lacked
the essential weapons to deal with this
problem effectively. We have never had
a consistent and openly arrived at national policy on employment. We have
never had a businesslike method of appraising the operations of our economy
and our Government. We have never
had a real understanding of the economic responsibilities of the President,
as Chief of the executive branch, and
of the Congress of the United States.
The proposed full-employment bill
supplies us the three elements we have
lacked in the past.
First. It establishes a national policy
on the maintenance of employment opportunities:
Second. It creates a budgetary system to appraise the operations of both
the national economy and the Government.
Third. It defines the economic responsibilities of the President and the
These three elements, when added together, provide the opportunity for full
and wholehearted cooperation between
industry, agriculture, labor. State and
local governments and the Federal Government—the cooperation which is essential to our hopes and plans for a
stronger and better America.
I shall discuss each of these points

The bill declares that it is the policy of
the United States to foster' free competitive enterprise and to assure the
existence at all times of sufficient employment opportunities for all Americans who have finished their schooling
and who do not have full-time home and
family responsibilities. The bill recognizes that these Americans are entitled
to opportunities for "useful, remunerative, regular, and full-time employment."

-The right to a Job does not mean
guaranteeing John Jones a given job;
carrying a set salary and a definite social
standing. It is not the aim of the bill
to provide specific jobs for specific individuals.' However, I believe nobody will
deny that our economic system of free
enterprise must, offer opportunities for
jobs for all who are able and want to
work. Our American system owes no
man a living but it does owe every man
an opportunity to make a living. That
is the proper interpretation of the "right
to work."
Full employment is not a static condition. It depends upon changing national
trends, population growth, changes in
school age or retirement age, the number
of persons serving in the armed forces,
the number of hours worked, and similar
factors which change the size of the labor
Furthermore, full employment does
not mean that there should be at any
given time no unemployment at all.
Our economic system requires flexibility, which means that at all times a minimum amount of unemployment is unavoidable. Technological advances, the
desire to shift to other work, seasonal
change in production, or other circumstances cause what is known among
economists as short-run frictional unemployment. As conditions change, the
volume of this relatively small amount
of frictional unemployment will also
The responsibility of the Government
with regard to full employment is
clearly stated in the bill. I quote from
the declaration of policy, as set forth in
the bill:
In order to assist industry, agriculture,
labor, and State and local governments In
achieving continuing full employment, it is
the responsibility of the Federal Government to pursue such consistent and openly
arrived at economic policies and programs
as will stimulate and encourage the highest
feasible levels of employment through private and other non-Federal investment and
To the extent that continuing full employment cannot otherwise be achieved, it is the
further responsibility of the Federal Government to provide such volume of Federal investment and expenditure as may be needed
to assure continuing full employment.
This policy is in accord with the philosophy recently expressed by an outstanding political leader. I quote:
Government's first job in the peacetime
years ahead will be to see that conditions
exist which promote widespread Job opportunities in private enterprise • * •
If at any time there are not sufficient jobs
in private employment to. go around, the
Government can and must create job opportunities, because there must be Jobs for
all in this country of ours.
This statement was made in San Francisco on September 21, 1944, by the Republican candidate for the Presidency of
the United States, Gov. Thomas E.
In the same speech, Governor Dewey
emphasized the responsibility of government, in the following words:
Yet, if there is one thing we are all agreed
upon. is is that in the coming peacetime
years' we in this country must have Jobs and
opportunity for all. That is everybody's business. Therefore it is the business of government.


In this connection I should also like to
quote from an editorial from a leading
American business magazine, pointing .
out the Government's responsibility on
employment so clearly that it has been
imprinted upon my mind ever since. The
editorial reads:
Every businessman who is not kidding himself knows that he does not know how to
guarantee, without Government intervention, the markets with which alone his free
competitive capitalism can function. Every
businessman who is not kidding himself
knows that, if left to its own devices, business would sooner or later run headlong into
another 1930.
This editorial: appeared in the June
1938 issue of Fortune magazine, and I
obtained unanimous consent to have it
printed in



during 1938.

The bill sets up a national production
and employment budget to help appraise
the extent to which the total demand for
goods and services is sufficient to assure
the productive employment of those who
are willing and able to work.
This national production and employment budget differs from the ordinary
budget of the Federal Government in
that it includes not only investment and
expenditures by the Federal Government, but also investment and expenditures by all groups in the country: Consumers, business. State and local governments, and -the Federal Government.
The sum total of all these expenditures
adds up to what the economists call
the gross national product or the gross
national income. This total expenditure
for goods and services is the generally
accepted measurement of our Nation's
total economic activity.
When the aggregate volume of expenditures by consumers, business, State
and local governments, and Federal
Government is equivalent to the volume
needed to guarantee full employment,
this national production and employment budget is regarded as balanced.
If there is a deficiency of total expenditures, the result will be unemployment.
The purpose of this new budgetary
system is to provide a businesslike way
of appraising:
(a) The number of jobs needed over
a given period to provide full employment;
(b) The total of consumer-businessGovernment expenditures required to
provide that number of jobs;
(c) The prospective volume of investment and other expenditures by consumers, business, and Government, including expenditures in our' foreign
(d) The fiscal or other programs required to encourage additional private
employment, if necessary; and
(e) Whatever program of Federal investment and expenditure may be required as a last resort to make up the
difference between the total required expenditures and the total that is likely
to prevail without additional Federal investment and expenditures.
This procedure is not only businesslike
and logical, but it is also conducive to
drawing upon all segments of our economy for their maximum effort.




The responsibility of the President under the bill is to report to Congress, at the
beginning of each regular session, on the
extent to which the economy is providing jobs for all. This report might be
regarded as an essential part of the state
of the Union message. If he finds that
there is unemployment or that there is
the danger of unemployment, he must
transmit his program for assuring full
employment through stimulating private
enterprise and through necessary Government programs, together with recommendations for such additional legislation as he deems desirable.
Congressional responsibilities are also
At the present moment, unfortunately,
there is no single body within either
House of the Congress which has the responsibility of considering in a comprehensive manner either:
First. The general contents—with respect t o taxes, appropriations, and borrowings—of the regular Federal Budget;
Second. The relationship between the
regular Federal Budget and the national
For example, both Houses of Congress
have just received the President's proposed Budget for the coming fiscal year.
The Appropriations Committee will
study the Budget's proposals for individual agencies. The Finance Committee
will study the revenue aspects of the
Budget message. But no committee will
study the Budget message as a whole, or
its relation to our national economy.

sistency and stability in the administration of the Government's program.
For example, revenue measures are
often enacted only a few weeks before
they are to become effective. This, I
submit, does not give the businessman
sufficient time to consider the Government's tax policy in relation to his own
plans for future investment. Under this
bill it would be easier for Congress to develop its fiscal policies in a unified manner, and to enact both revenue and appropriation measures before the beginning of each fiscal year.


specific National Budget that would result in any given period would be determined, not by the operations of any one
individual or any one group, but on the
basis of that active interplay between all
groups and all our political leaders which
is the very essence of the democratic
process in our democratic America.

A few weeks ago, Dr. Gallup's interviewers went around the country asking
people whether they thought that there
would be enough jobs after the war.
Sixty-eight percent thought that there
would not be enough jobs. The younger
The full employment bill recognizes people of the country were even more
that we live in a world of changing con- pessimistic than their elders; 73 percent
ditions' and changing requirements in of those between 20 and 30 years of age
national economic policy. For that rea- thought that the outlook was black.
son, it provides no fixed proportions of
and say
the National Budget to be supplied by that theSenator of this stand upare miscountry
consumers, business, or Government. In taken inpeople beliefs? Who is there
certain circumstances, Congress may find who, on the basis of what has thus far
it desirable OP necessary to provide:
been done, in the field of post-war planFirst. A National Budget that empha- ning, would be willing to predict that
sizes increases in consumers' expendi- there will be jobs for all after this war?
tures; or
We all know that during the
Second. A National Budget that em- have transformed our economy war we
into an
phasizes increases in the capital outlays economic skyscraper of breath-taking
of business; or
Third. A National Budget that empha- magnitude.
We all know that when war-producsizes increases in Government expendition contracts are withdrawn, the dantures.
Naturally there could be all degrees of ger will be that the entire edifice will
difference between these three general topple over.
We all know that while the end of the
types, as well as combinations of any
war may bring with it 6 to 18 months
In other words, the Government's pro- of an inflationary boom, the long-term
gram could aim at balancing the national threat is a deflationary collapse.
Unless an economic substitute is found
economy through measures to increase
consumers' expenditures, through meas- for war contracts, we face mass unemThe full-employment bill seta up a joint ures to increase capital outlays of busi- ployment in this country of a magnitude
committee to make a detailed study of the ness, through increased Government ex- which could easily surpass anything that
national production and employment budget penditures, or through a combination of
was dreamed of during the last deprestransmitted to Congress by the President. those methods.
sion. Thus far, we have not found that
This committee, called the Joint Committee
There are some who think that the substitute.
on the Budget, is to be composed of 15 MemThis country cannot afford again to go
bers of each House, chosen in such a manner major emphasis in our post-war economy
as to reflect the relative political strength must be upon Government expenditures. into a depression such as we experienced
There are others who say that this means in the 1930's. It would be extremely danof the major political parties.
... By March 1, at the very latest, this com- deficitfinancing,and that deficit financ- gerous to do so. Mass unemployment
mittee would be expected to report to both ing would lead to a planned economy or would mean discontent, disunity, and an
Houses of Congress a Joint resolution setting to national bankruptcy. They, in turn, irreparable loss to our Nation in terms
forth a general policy with respect to the propose that the Government do every- of both physical wealth and moral wellNational Budget for the next fiscal year.
thing in its power to give a green light being.
Consideration of the joint resolution would to business and heighten the confidence
Still more appalling, an unemployment
mean an annual debate, in both Houses, on of private investors so that the major
national economic policy. The resolution emphasis in the post-war period would crisis in America would spread like wildcould then be amended in any manner, that be upon increased capital outlays of pri- fire throughout the world. It would give
the majority of Congress might determine
us dumping, higher tariffs, export subto be appropriate. As finally agreed to, it vate enterprise.
sidies, blocked currencies, and every other
would serve as a general policy framework
It is my own personal opinion—and new and old type of economic warfare,
within which the individual committees of I have stated this before on the floor of And this, I submit, would inevitably wreck
Congress could work on individual appropria- the Senate—that the royal road to prostion acts, revenue acts, and related measures.. perity is high wages, low prices, and a our plans for an effective international
security organization, turn back the clock
These provisions go a long way toward
restoring Congress to its rightful place as the tax system that is unequivocally based of progress, and plunge us into another
upon the ability to pay and the encour- holocaust of blood, suffering, and chaos.
policy-determining branch of the Government. And this is done in a way which pro- agement to produce. It is my belief that
We here in Congress have it in our
vides for active interplay between the Con- in this way, with only moderate Govern- power to take effective action now to
gress and the Executive, a way which makes ment expenditures for desirable GovernAmerica that mass
the two branches of the Government really ment services, we could achieve a more reassure the people of not happen again.
coordinate. The bill avoids both the danger equitable distribution of the national in- unemployment shall
We have it in our power to make full
of delegating excessive power to the Execu- come. It is my conviction that this imemployment the cardinal principle in
tive, and the danger of involving Congress proved distribution of the national inin administrative determinations.
come would give us an unprecedented our domestic economic policy. We have it in our power to make full
I should like to point out that the bill expansion in consumers' expenditures
aims at eliminating business uncertainty and a vigorous, though not excessive, employment in America the keystone of
over the Government's fiscal policies. expansion in the capital outlays of our economic relations with the other
countries of the world.
Business cannot plan effectively for full business..
employment without knowing the GovBut my personal opinion on how the BOTHPOLITICALPARTIESFORFULLEMPLOYMENT
ernment's plans. This requires advance national economy might best be balanced
In principle, both of our major politiknowledge and open discussion of the is not relevant to the question of how it cal parties are agreed that this must be
Government's plans, and reasonable con- would be balanced under this bill. The provided.



plans, then we are doomed to have unemployment.
Whatever program we adopt, therefore, let us act without delay.
Let us have courage and be decisive
in our efforts. Let us not be swayed by
fear of our inability to determine our own
Let us not wait until millions of men
are walking the streets looking for work
before we do something about post-war
Let us act now, through the regular
legislative processes as set forth in our
Constitution, to provide our businessmen,
our farmers, and workers, and, above all,
The full-employment bill, I submit, our 11,000,000 soldiers and sailors, with
provides the instrument whereby the po- confidence in the future of American enlitical parties can make good on their terprise and American democracy.
Mr. TAFT. Mr, President, will the
common aspirations for post-war full
Senator yield?
The PRESIDENT pro tempore. Does
Of course, some Members of Congress the Senator from Montana yield to the
may disagree with the sponsors of this Senator from Ohio?
Mr. MURRAY. I yield.
bill. That is how it should be in a
democracy. Sound legislation can be de- ator introducesIs the bill which the Senveloped only by clarifying the differences' that which, was. substantially the same as
printed in
between conflicting schools of thought. Times 2 or 3 weeks ago? the New York
The sponsors of this bill, therefore, welMr. MURRAY. No; it has been greatly
come criticism. We welcome debate on
alternative methods of assuring post- improved as the result of constant study
and contact with the experts of the
war full employment.
Department and experts of the
But let it be constructive debate. Let TreasuryReserve Board and of various
it not be like the writings of some edi- Federal
torialists and columnists who, in their other Federal agencies. Senator intend
. Mr. TAFT. Does the
pontifical infallibility, have thrown up that the bill shall be referred to the Comtheir hands in horror at the full-employ- mittee on Education and Labor?
ment bill—and have then offered no conMr. MURRAY. No; I shall ask that it
structive proposals of their own.
The United States Senate has been go to the Committee on Banking and
called the greatest deliberative body in Currency.
Mr. TAFT. Mr. President, I might say
the world. On this issue of full employment, at a time when democratic insti- that if the bill is as I have understood it
tutions are under attack in one country to be described its philosophy is so comafter another, the opportunity exists for pletely at variance with my whole idea
the Members of the Senate during the of the American system that I made a
Seventy-ninth Congress to demonstrate brief address analyzing the bill on Thursday night, which was inserted by me in
that we really are the greatest deliberative body in the world, and that we have the RECORD today, and I hope that those
the capacity to bring forth constructive who read the speech made by the Senator
legislation fully commensurate with the from Montana today will do me the favor
of reading the speech which I made on
needs of our, country.
I have faith in the Members of this the bill. I think we have here a fundabody. I know that they will take advan- mental difference. I agree fully with the
Senator from Montana on the importage of this opportunity. I know that if
any Senators arise to take issue with the tance of the subject, but I believe very
principles set forth in the full-employ- strongly that the remedy which he has
ment bill, they will realize that, as Mem- suggested is absolutely dangerous and
bers of this great deliberative body, and incorrect.
Mr. MURRAY. Mr. President, I apas influential leaders of public opinion,
they are under obligation to offer alter- preciate the attitude of the distinguished
native proposals of their own. If such Senator from Ohio.
Mr. O'MAHONEY. Mr. President
proposals indicate the need for changes
Mr. MURRAY. I yield to the Senator
which are practical and realistic, they
will undoubtedly win the support of this from Wyoming.
Mr. O'MAHONEY. I desire to ask the
Every two decades, for the past 100 Senator from Montana if he has sugyears, we have been plagued by a boom gested that the bill which he has just inand a major depression; and every dec- troduced be referred also to the Comade has brought forth new explanations . mittee on Post-war Economic Policy and
as to the causes of the business cycle Planning?
Mr. MURRAY. It is my intention, and
and new remedies. But there is one fact
upon which all are agreed, namely, that I am now in the process of preparing a
fear of a depression tends to lead us in- copy of the bill, with an explanation of
evitably into a depression: When busi- it, and will ask consent to have it sent to
ness, agriculture and labor fear unem- the Committee on Post-war Economic
ployment, they make plans to adjust Policy and Planning.
The -PRESIDENT- pro tempore. The
themselves to unemployment. When
their daily actions are based upon such Chair will state that that committee has
In Chicago, on October 28, 1944, President Roosevelt stated that ''every American, able to work and willing to work,
has the right t o a useful and remunerative job." To make this right effective
he promised America 60,000,000 post-war
In Seattle, on September 18, 1944, Governor Dewey, the Republican nominee
for President, made the following statement:
We must have full employment. * * *
Those who come home from the war and
those who have produced for war—all our
people—have earned a future with jobs for



s o power to report the bill. It could be
referred to that committee for the information of the committee, of course, but
not for the purpose of having a report
Mr. MURRAY, That is exactly what
I had in mind.
Mr. O'MAHONEY. Mr. President, I
was about to say that I am very happy
the Senator has done that. As I understood him, he asked that the bill be referred to the legislative Committee on
Banking and Currency. In view of the
fact, however, that this measure deals
with a fundamental policy of greatest
importance, and in view of the further
fact that the committee of which the distinguished Senator from Georgia [Mr..
GEORGE] is the head has been set up by
the Senate to study post-war economic
policy and planning, it is of the utmost
importance, I think, that that committee
should participate in the study. The cooperative action of the Post-war Economic Policy and Planning Committee
with the legislative committee on matters of such far-reaching importance
could not fall to be beneficial to all concerned. The Senator from Montana has,
on numerous occasions, consulted me—
and I feel grateful to him for so doing—with respect to the underlying plan
of this bill. I feel that the study which
can be given to it by these two committees cannot fail to be helpful:

Mr. MEAD. Mr. President, from time
to time the Special Committee to Investigate the National Defense Program and
later the war program has made reports
to the Senate, and particularly on occasions when it was apparent that some
major problem was holding up the war
effort It will be recalled that the committee reported to this body on the necessity for complete conversion to the war
program. We reported on the matter of
the recruitment and training of personnel for the war effort. We reported to
the Senate on the question of eliminating bottlenecks and material shortages.
Now I wish to discuss with my colleagues
of the Senate the apparent need today
of the proper utilization of manpower in
Government plants, the navy yards, and
Our committee is making an investigation, as quickly and as widely as our personnel will permit, and today. I wish to
discuss particularly what the committee
saw at a nearby navy yard.
It is my duty, Mr. President, to reveal
to the Senate what I believe to be an
alarming condition. A subcommittee of
the war investigating committee last
week visited the Norfolk Navy Yard. I
might say we visited several other navy
yards as well, and reports on them will
be forthcoming shortly.
What we
learned in Norfolk is, I believe, disturbing and, I think, most significant.
The armed forces have long painted a
gloomy picture of their civilian labor
needs. Program after program on the
"must" list is described as short of labor.