HARD CHOICES IN VIETNAM
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April 14, 1966
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April 14, 1966
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CONGRESSIONAL RECORD -- SELN 7773
'Act. Twenty-two Republican Senators and
eighty-three Republican Members of the
House are sponsoring such legislation. All
12 members of the joint Senate-House Re-
publican leadership are included in this
number.
The purpose of the Human Investment
Act is to encourage industry to expand its
training programs so that the reservoir of
available job skills more closely matches the
present and anticipated needs of the econ-
omy. Private enterprise today is the Na-
tion's largest job trainer, investing about
$4.5 billion a year in the various forms of
employee training. Over the years, labor
and business have shown that they know
best what skills will be needed in the econ-
omy and what kinds of training will best
prepare workers to accept the jobs that be-
come available. It is the goal of the Hu-
man Investment Act to provide the type of
economic climate through tax incentives
which will permit business to enter this field
on a major scale.
Unskilled workers today have an unem-
ployment rate twice as high as the overall
national rate. In most cases, the unskilled
lack only the training necessary to permit
them to move into existing vacancies.
The problem is a national one and de-
mands a national solution. The Republican
Party believes that the Human Investment
Act is a proper, indeed, necessary, response.
This legislation will guarantee an expan-
sion of worthwhile and needed training pro-
? grams, such as apprenticeship and on-the-
Job training, while holding redtape and ad-
ministrative regulation to a minimum. The
enactment of this Republican-authored leg-
islation would be a major step toward en-
couraging our American enterprise system
to expand its continuing efforts to alleviate
the Nation's manpower shortages and en-
hance the opportunities for the individual
worker to share more fully in the benefits of
the American economy.
HARD CHOICES IN V:ETNAM
Mr. JAVITS. Mr. President, I ask
unanimous 'consent that I may proceed
for 3 additional minutes.
The ACTING PRESIDENT pro tem-
pore. Without objection, it is so ordered.
Mr. JAVITS. Mr. President, the pres-
ent turbulent political situation in South
Vietnam makes it incumbent upon us
to discuss once again U.S. policy in Viet-
nam and the extent of our commitments
there. The people of the United States
must be prepared for the hard choices
and decisions which may be required of
us as a result of the existing political
uncertainty.
Our own purpose should remain un-
altered. Side by side with the ARVN
forces of South Vietnam, U.S. troops are
waging a struggle for high but limited
objectives with the necessary but limited
military means. We are seeking a ne-
gotiated settlement to preserve freedom
of choice for Vietnam. Our goals are
threefold: First, pacification of the im-
portant and populous areas; second, eco-
nomic and social development of the
Vietnamese people; and, third, the hold-
ing of free elections in order to enable
the Vietnamese to determine their own
governmental future.
Should the Government of Premier
Ky remain in office, or should another
government with the same plans for
Vietnam assume power and responsi-
bility, the United States can continue to
play its part in Vietnam. Should, how-
ever, a government come into office which
is dissatisfied with our help, or with
the presence of our forces in the coun-
try, or which is unable to continue the
South Vietnamese share of the military
burden, then we will have to decide
whether to first, persist nonetheless and
virtually take over the governmental op-
erations in South Vietnam; second, with-
draw our troops from the Asian main-
land; or, third, redeploy our forces to
another Asian location.
If we are so forced to reappraise our
position, I urge that we do so in light
of our basic policy to date?that is, we
are in Vietnam because the actual gov-
ernment and people of that country wish
to wage a struggle for their independence
and freedom and they desire our help.
In no event should the struggle there be
a struggle carried on by us without South
Vietnam, for it is at their behest that we
are helping to defend them. It must be
said at once?and I pay tribute to them?
that the ARVN forces are carrying a
heavy burden in the conflict. Indeed,
their casualties are six times our own,
grievous as are our own.
Just as I oppose carrying on the effort
in Vietnam by ourselves, I also reject
complete withdrawal from the Asian
mainland. There are still a number of
nations in that area which need and de-
sire our help. The Chinese Communists
still vow tc persist in their so-called wars
of aggression which they call wars of na-
tional liberation.
Should conditions force us to leave
South Vietnam, I believe that our best
c oice is to redeploy our troops to
another Asian country. It is my view
that our forces should not be broken up,
but should be kept together as an effec-
tive unit and redeployed where they can
be available to counter any new aggres-
sive move by Communist China. North-
ern Thailand is so threatened, and should
the Government of Thailand request such
assistance, I believe that at least some of
our troops ought to be restationed there.
One question must be asked: "What
would be the effect if we have to do so,
not out of choice, of U.S. withdrawal
from South Vietnam on our other inter-
national commitments?" I believe that
the United States will already have
amply justified by what we have done to
this point in South Vietnam?that we
are prepared to back our commitments
elsewhere. No one could have any right
to doubt that we are ready, notwith-
standing the difficulties in money and
manpower, to support the cause of free-
dom. Every free nation in Asia and else-
where in the developing world already
has been heartened by our determination.
In these efforts, howeve'r, we cannot
guarantee Success; we can only guarantee
the effort itself. It would have been, and
would be, disastrous voluntarily to pull
out of Vietnam, but it is no disgrace if
conditions make our continuance there
unwelcome or untenable.
Yesterday, I uttered these same
thoughts in a series of speeches in the
north country of my own State, and as
I have noted that other Senators spoke
yesterday, I desire to add my voice to
theirs in this, the national record.
AMENDMENT OF VARIOUS PROVI-
SIONS OF LAWS ADMINISTERED
BY FARM CREDIT ADMINISTRA-
TION
Mr. LONG of Louisiana. Mr. Presi-
dent, I ask unanimous consent that the
Senate proceed to the consideration of
Calendar No. 1069, S. 2822.
The ACTING PRESIDENT pro tem-
pore. The bill will be stated by title.
The LEGISLATIVE CLERK. A bill (S.
2822) to amend various provisions of the
laws administered by the Farm Credit
Administration to improve operations
thereunder, and for other purposes.
The ACTING PRESIDENT pro tern-
pore. Is there objection to the present
consideration of the bill?
There being no objection, the Senate
proceeded to consider the bill, which had
been reported from the Committee on
Agriculture and Forestry, with an
amendment, on page 4, after line 3, to
strike out:
SEC. 4. Sections 41 and 34 of the Farm
Credit Act of 1933, as amended (12 U.S.C.
1134c and 1134j), are each amended by strik-
ing from clause (a) in the first sentence
thereof the following: ", for any of the
purposes and subject to the conditions and
limitations set forth in such Act, as
amended".
And, in lieu thereof, to insert:
SEC. 4. (a) Sections 41 and 34 of the
Farm Credit Act of 1933, as amended (12
U.S.C. 1134c and 1134J), are each amended?
(1) by striking from clause (a) in the
first sentence thereof the following: ", for
any of the purposes and subject to the con-
ditions and limitations set forth in such
Act, as amended"; and
(ii) by adding the following sentence im-
mediately after the first sentence thereof:
"Loans to cooperative associations made by
any bank for cooperatives shall bear such
rates of interest as the board of directors of
the bank shall from time to time determine
with the approval of the Farm Credit Ad-
ministration, but in no case shall the rate of
interest exceed 6 per centum per annum on
the unpaid principal of a loan.".
(b) The Agricultural Marketing Act, as
amended, is amended by deleting subsection
(a) of section 8 thereof (12 U.S.C. 1141f (a) ).
So as to make the bill read:
Be it enacted by the Senate and House of
Representatives of the United States of
America in Congress assembled, That the
laws administered by the Farm Credit Ad-
ministration relating to Federal land banks,
Federal intermediate credit banks, banks for
cooperatives, farm credit board elections and
compensation of Federal Farm Credit Board,
are amended as hereinafter provided.
FEDERAL LAND BANKS
SEC. 2. Title I of the Federal Farm Loan
Act, as amended, is amended?
(a) by adding the following subsection at
the end of section 10 thereof (12 U.S.C. 751--
757) :
"(h) To the extent authorized by the Farm
Credit Administration, the Federal land bank
of the district, and the board of directors
of a Federal land bank association, a writ-
ten report and approval by the manager or
another employee of the association desig-
nated for the purpose shall be acceptable in
lieu of the written report and approval
otherwise required of the loan committee
under this section; and in such cases the
favorable report and approval by the man-
ager or other employee shall constitute the
applicant a member of the association."
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CONGRESSIONAL RE( ORD ? SENATE
tiy inserting immediately before the
at the end of peragraph First of see-
thereof (12 U.S.C. 771 First) and
DIEU lately before the period at the end of
ttie sentence and immediately before the
eecond comma in the second sentence of
parm7neth Second of EeCti011 3 thereof (12
tdr.Il lecond) the fellowi 11 "and which
eitirireityis may include farmland within
ether farm credit districts to the extent
atilhoreied by the Varna Credit Administra-
tion"
deI by striking "end :unless owners of
ell-tek in the corporation assume personal
liability for the loan to the extent it:equired
tinder funs and regulations prescribed by
1hE I FT1 Credit Administration" Irons the
(mirth sentence of paragraph Sixth of section
12 thereof (12 U.S.C. 771 Sixth); and
lty substituting "an amount specified
the Farm Credit Administration" for
ee Doe" in paragraph Seventh of section
12 tit:a:got (12 U.S.C. 771 Seventh).
Fnsa. I DI' ['ERNI I 31 IATE CREDIT BANKS
ft Title IT of the Federal Farm Loan
erie eri amended, is amended--
(a) iti section 202(a) thereof (12 U.S.C.
1.0311, by deleting "and" at the end of para-
graph (2) , by substituting "; and" for the
period at the (mei of paragraph (3) and by
adding, the following new paragraph:
'Trio to purchase for investment obliga-
arms re the Federal land banks and the
liniks for cooperatives and, to the extent
authorized by the Farm Credit Administra -
iris], obligations of- any agencies of the
Canted States."; and
( b) by changing section 205(h) thereof
(12 11.2 C. 1092) to read as follows: "The
1,arre Credit Administration may require res.
pone in stich form as it may specify from any
illof Ilie Federal intermediate credit
tetine whenever in its judgment the same
areiiEEC scary Inc a full and complete know].
teign of its or their financial condition or
IIANKS FOR COOPER.AFIVES
. ill Sections 41 and 34 of the Farm
credit Act of 1933, as amended (12 U.S.C.
nele and 11341), are each amended?
(it by eliriking from clause (a) in the first
ter/at-hi, thereof the following: ", for any
the purposes and subject to the condi-
tione ;nal limitations set forth in such Ant,
at zone:vied"; and
it) lay adding the following sentence imss:
nhiliotety after the first sentence thereof;
:o cooperative associations made by
ly bet iv for cooperatives shall bear such
rates of interest as the board of directors of
Lim ba WI shall from time to time determine
with the approval of the Farm Credit Admin..
ii).; w. but; in no case :Mall the rate of in-
Lermi, exceed 6 per centum per annum on
the unpaid principal of a loan.".
(b1 The Agricultural Marketing Act, as
emended, is amended by deleting subsection
(a) t secnon It thereof (12 U.S.C. 11411(a)
AVM Si CB EDIT BOARD ELECTIONS
:I!0 The Farm Credit Act of 1937, as
emenden,is amend.ea by substituting "sixty"
the "thirty" in the last sentence of section
lint) thereof (12 U.S.C. 640e) and in. the
tis ird lied sentence of section 5(0 thereof
-12 U.S.C. 640f) and by inserting the follow-
C IZDNUICIIII.Lely before the period at the end
of each of such sentences: ", except that
for elections to fill vacancies the Farm Credit
Administration may specify a shorter period
than sixty days but not less than thirty
days". 'this section shall be effective after
111.e e:11.endar year in which it is enacted.
EEDERAL FARM CRFIDIT BOARD
. 6. Section 4(f) of the Farm Credit
Act or 5153 (12 U.S.C. (1:16c(f) ) is amended
by substituting "$100" for "$50" therein.
The amendments were agreed to.
The bill was ordered o be engrossed
for a third reading, was read the third
time, and passed.
Mr. LONG of Louisiarla. Mr. Presi-
dent, I ask unanimous (-:f:nisent to have
pri.nted in the RECORD a I, this point an
extract from the repor 1 accompanying
the bill.
9The1'e being no object in, the extract
oi ale report (No. 1102) was ordered to
be printed in the REeoan as follows:
Ex I' ANATION OF BILL ( '1TH COMMITTEE
AMENDMENT
EFDERA L LAND E A NIKE;
Prick:ground: The 12 Federal land banks,
D each farm r dis: riot, were estab-
lishort in. 1917 to make long -term land mort-
gage loans to farriers and ranchers as pro-
vided in the Federal Farm Loan Act. Each
borrower from a Federal land bank is re-
quired to become a member of the Federal
land bank association through which his loan
is made. The, borrower buy., capital stock of
the association in an amour: I; equal to 5 per-
eel] ti of the face amount of the loan and the
association is required to perchase an equal
amount of stock in the Federal land bank of
the district. By this meaLs all the capital
stock of the '719 Federal land bank associa-
tions is awned by their fanner members and
assc,ciations in turn have owned all of the
stock of the Federal land l,:inks since 1947
when the last; of he Goverament capital in
the banks was retired. The :oan funds of the
Vecteral land banks are obtained primarily
through, the sale of consolid:tted bonds to the
investing public.
A Federal land Lank loan must be secured
by a float mortgage on the rIam or ranch of
the borrower. The amount loaned in any
case 1na.y not excged 55 percent of the ap-
praised normal value of tie:, farm or ranch
05e,e51 as security, plus the amount of the
it,,;' Ii required to be purcha.:ed (5 percent of
the face amount of the It in) Since the
banks obtain their loan funds chiefly through
the sale of consolidated bonds to the invest-
ing public, interest on loan; made to farm-
ers varies with the cost of money and dif-
ferenees in admintdrative cost. At the pres-
ent time, 11 of the banks are making loans
at alt, percent; and one charges an interest
rate of 5.2 percent. There is o statutory limit
of ts; percent. A land bank loan may not be
made for more than 10 ye rrs but most of
them have maturities of 20 to 35 years. Pres-
ently there are sone 384,000 land bank loans
outstanding in the approximate amount of
$4.3 billion.
Section 2(a): To obtain a Federal land
bank loan, an application is .-tubmitted to the
bank through the local Federal land bank as-
sociation. Before a loan is elosed, the Fed-
eral Farm Loan Act, as it now reads (12 U.S.C.
751-7, 712), requires the :following proce-
"re written report on the ,,ecurity is made
;in appraiser designated or appointed by
the Federal land bank of the district. This
appraiser may be the manager or another em-
ployee 01 the association.
2_ A written report is made by the as-
sockite loan committee 'Minh consists of
three or more members of the association
who are borrowers from the and bank. The
'manager of the association to also eligible for
membership on the loan caramittee. The
committee is elected by the board of directors
of the association and, in addition to ap-
proving loans on Ltehalf of the association,
it Sr a.y also be authorized to elect applicants
to membership in the associgtion.
3. Final aproval of a loan is by the Fed-
eral land bank, hut no loah may be made
Sinless the report of the appraiser and the
1.../t, 19( !;
report of the association loao committee are'
favorable.
Under step (2), the association loan com-
mittee report form often must be taken out
to the members for approval and signature.
This may involve two or three separate trips
to the homes of the mend :tins in different
parts of the association territory. 'She pres-
ent amendment would permi's this step in tie
present procedure to be modified. IL would_
do this by rendering report, and approval hy
the manager or another employee of the fes-
sociation acceptable, if elute authorized, in
lieu of action by its loan committee. This
is claimed to be warranted n many instances
because of the training and experience of
such personnel. Without mi limizing the -
penance of approval action lay niihrhers of
the association, it is recogisized that there
are circumstances in -whicl: tin aisociation
would want to and would he justified in
giving this responsibility to a competent
manager or other employee. To what extept
an association chooses to if? so would be
determined by its own hoard of directors. It
would also be subject to a,utl: orization by ti-
hoard of directors of the Fe,leral land bank
of the district and by the Farm Credit, Ad-
ministration. One of the limitations in-
tended by the Farm Credit Administration
is that the manager or (alai: employee as e-
thorized to act in lieu of the association loan
committee shall not act on a loan in which
he is interested directly or indireethr. The
Farm Credit Administration has indicated,
too, that actions by the :manager or other
employee under the new authority would be
reviewed by the association loan committee
or board of directors at their next: meeting..
The committee has been ar shred that this
review will also cover applictitions on which.
the recommendation by the manager or oth-
er employee was not favorable_
Section 2(b) : This amendment concerns
an applicant for a Federal and bank loan
who owns and is farming :a.i1 a single opera-
tion land in more than one tiarin credit die-
trick Under existing law, Federal land bank
loans "shall be secured by duly recorded find
mortgages on farmland within the farm
credit district in which the 1:in.d is situated"
(12 U.S.C. 771 First). To the existing law
section 2(b) would add "and which mort-
gages may include farmland within other
farm credit districts to the extent author-
ized by the Farm Credit Administration."
An identical addition Would be made with
reference to first Mortgages which a Federil
land bank is authorized to iaquire otherwise
than by making new loans: to,, by invest-
ment or purchase (12 U.S.0 . 781 Second
The stated intention is to permit tn appli-
cant with a farming operatio's in more than
one district to be served by one land hank
instead of borrowing from two or more such.
banks. There is no intention to permit a
Federal land bank to lenet on farmland out -
side of its own district except in collection
with farmland in its own dititrict, all being
owned and operated by a sin ;le eligible ap-
plicant. The committee 'understands, in
addition, that Farm Credit Adminis-Gration
regulations will require the concurrence of
the Federal land bank for the district Li
Which the land is situated before another
Federal land bank may malt' a loan on it,
Sectio:n 2(c) : The major statutory eligi-
bility requirements for Feeltral land bank
loans are (12 U.S.C. 771 51st.)):
"No such loan shall be made to any per-
son who is not at the time, oi shortly to be-
come, engaged in farming operations or to
any other person unless the principal part
of his income is derived from Farming opera-
tions. * * ? the term "person" includes an
individual or a corporation engaged in farm-
ing operations; * * * but no euch loan shall
be made to a corporation unle:s the principal
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CONGRESSIoN AL .ttt
part of its income is derived from farming
operations and unless owners of stock in the
corporation assume personal liability for the
loan to the extent required under rules and
regulations prescribed by the Farm Credit
Administration. * * 5" ,
Section 2(c) would strike out the italicized
words. This would eliminate the assumption
of personal liability by a stockholder as an
eligibility requirement for a Federal land
bank loan to a corporation. The stated in-
tention is that such assumption of personal
liability may instead be required for credit
and policy reasons. Such supervisory guide-
lines as are deemed necessary in this re-
spect would be covered in rules and regula-
tions issued by the Farm Credit Administra-
tion.
Most Federal land bank loans are made to
individual farmers or ranchers, although
loans to corporations have been authorized
since 1935. For the last calendar year, the
total of the loans to corporations has been
0.65 percent in number and 4.52 percent in
amount of all the loans made by the 12 Fed-
eral land banks.
By the present amendment, there is no
intention to increase or prefer corporate
farming over family or individual farming.
It is recognized, though, that there are
families and individuals who have orga-
nized a corporation for their farming. In
most cases it is expected that as least some
of them, as stockholders, will continue to
be required to provide personal liability for
a loan to their corporation for credit or pol-
icy reasons. This would have to be done
in any cases where the local Federal land
bank association, which indorses and there-
by incurs-liability for the loan, conditions
its favorable recommendation on such per-
sonal liability being required. However, in
instances where such assumption of personal
liability is not obtainable, and the loan
otherwise meets all requirements, it is
thought that the Federal land banks should
no longer in every instance be precluded
from making a loan for want of such per-
sonal liability. While this amendment will
enlarge the possible loan service for only a
limited number of applicants, any increased
lending under it will also benefit the banks
and all of their borrowers.
Section 2(d) : 'Under existing law, "The
amount of loans to any one borrower may
not exceed $100,000 unless approved by the
Farm Credit Administration * * 5" (12
U.S.C. 771 Seventh). In this requirement
section 2(d) would substitute "an amount
specified by the Farm Credit Administration"
for the "$100,000" limitation. This will
leave it for the Farm Credit Administration
to specify the size of the loans which a
Federal land bank may close without the
prior approval of the Farm Credit Adminis-
tration. The committee sees no objection
to giving the Farm Credit Administration
such discretion in view of the successful
lending experience of the land banks. In
the last calendar year, 1,118 out of a total of
58,403 Federal land bank loans were in excess
of $100,000. The average size of an out-
standing Federal land bank loan is $11,100.
The present amendment refers only to the
size of a loan which may be closed by a Fed-
eral land bank without the prior approval of
the Farm Credit Administration. It has no
reference to the maximum loan which may
be made. That is now fixed by the Farm
Credit Administration as not more than the
higher of (1) 10 percent of the net worth of
the bank making the loan, or (2) one-
twelfth of 10 percent of the combined net
worth of all Federal land banks. As recog-
nized under the preceding amendment,
sound loan volume benefits both the banks
and their borrowers. The committee pres-
ently sees no occasion to object to it, so
No. 63-2
long as the lending is to applicants who are
within the letter and spirit of the eligibility
requirements quoted under the preceding
amendment.
FEDERAL INTERMEDIATE CREDIT BANKS
Background: The 12 Federal intermediate
credit banks, 1 in each farm credit district,
are organized and operate under title II which
was added to the Federal Farm Loan Act by
the Agricultural Credits Act of 1923. Their
function is to finance the 471 production
credit associations and over 100 other financ-
ing institutions that make short- and inter-
mediate-term loans to farmers and ranchers.
The total of such financing by the credit
banks during 1965 was $5.3 billion. Over 90
percent of such business was with the pro-
duction credit associations.
The credit banks do this financing by dis-
counting for the production credit associ-
ations and the other financing institutions,
with their endorsement, the notes taken by
them from the farmers and ranchers, and also
by making loans to the associations and other
financing institutions secured by such col-
lateral as may be approved by the Governor
of the Farm Credit Administration. Loans
may also be made to the associations without
collateral to the extent authorized by the
Farm Credit Administration. The loan funds
of the credit banks are obtained chiefly
through the sale of their consolidated deben-
tures to the investing public so that the
interest and discount rates which the banks
charge depend upon the rates of interest
which the banks have to pay on their deben-
tures and differences in administrative cost.
The presently approved rates for the differ-
ent banks range from 51/4 to 53/4 percent.
About 35 percent of the total capital stock
of the Federal intermediate credit banks is
owned by the production credit associations,
and the other 65 percent continues to be
owned by the Government. Under amend-
ments enacted in 1956 and 1965, it is in-
tended that the associations eventually will
come to own all of the capital stock in such
banks as their Government capital is gradu-
ally retired.
Section 3(a) : To the existing powers of the
Federal intermediate credit banks would be
added authority "to purchase for investment
obligations of the Federal land banks and the
banks for cooperatives and, to the extent
authorized by the Farm Credit Administra-
tion, obligations of any agencies of the United
States." The latter obligations would in-
clude consolidated notes of the Federal home
loan banks and securities issued by the
Federal National Mortgage Association.
Similar investments are now permitted for
the Federal land banks and the banks for
cooperatives.
Under existing law, the credit banks have
been limited to investments in 'U.S. Govern-
ment bonds for their funds which are not
immediately needed for financing the pro-
duction credit associations and other financ-
ing institutions for lending to farmers and
ranchers. Such additional investment au-
thority would add flexibility through a wider
choice of investment media of VariOLIS ma-
turities. In most instances, too, it would
provide the credit banks with a higher in-
terest yield on such investments. While
such additional investments would be mostly
for a short term, they nonetheless would be
available, if needed, as collateral for deben-
tures issued by the Federal intermediate
credit banks and as collateral for other bor-
rowings. If used as collateral for deben-
tures, the additional investments would be a
relatively minor part of the debenture col-
lateral which in the main consists of loans
discounted for or made to the production
credit associations and other financing in-
stitutions.
Section 3(b) : Existing law (12 U.S.C. 1092)
specifically requires each Federal intermedi-
ate credit bank to make three reports a year
to the Farm Credit Administration as to the
resources and liabilities of the banks, veri-
fied by an ofilcer, and signed by at least three
directors. Such reports must be published
in a newspaper where the bank is located
and are subject to proof of publication.
Special reports may also be required by the
Farm Credit Administration. In lieu of the
existing requirements, section 3(b) would
provide that "the Farm Credit Administra-
tion may require reports in such form as it
may specify from any or all of the Federal
intermediate credit banks whenever in its
judgment the same are necessary for a full
and complete knowledge of its or their finan-
cial condition or operations."
The Farm Credit Administration presently
keeps informed of the condition of the banks
by requiring monthly reports and through
examination of the banks. The amendment
would make no change in this respect.
What it would do is relieve the banks of
locally publishing their separate sworn and
attested statements at least three times a
year. Inasmuch as the individual banks
have not separately issued debentures since
1935, what may once have been deemed a
reason for the present local publication re-
quirement no longer exists. In any event,
the separate statements of each bank are
Widely distributed in its district to all who
have an interest in the bank and to anyone
on request. Since the banks may not
accept deposits, there is no depositor group
to be considered. Of more interest to the
investing public are the consolidated finan-
cial and earnings statements of the 12 banks,
since the banks are jointly and severally
liable for their consolidated debentures.
These are available in a brochure that is
distributed to debenture dealers, commercial
banks, and other interested parties. They
also are widely circulated by investment serv-
ices and periodicals. Among other places,
both the individual and the consolidated
statements are included in the annual report
of the Farm Credit Administration to Con-
gress and in the audit reports of the Comp-
troller General.
BANKS FOR COOPERATIVES
Background: The 13 banks for cooperatives,
1 in each farm credit district and the Central
Bank for Cooperatives in the District of Co-
lumbia, were organized under the Farm
Credit Act of 1933. They make loans to farm-
ers' marketing, purchasing, and service co-
operatives. Three distinct types of loans are
made: facility, commodity, and operating
capital loans. Since the loan funds of the
banks, other than those available from their
capital and surplus, are obtained from the
sale of consolidated debentures to the inves-
ing public, interest rates charged by the
banks for cooperatives depend, to a large
extent, upon the rates they have to pay on
their debentures. Interest rates vary with
the type and term of loan and between
banks. At the present time, interest rates
charged by the banks for cooperatives range
from a low 01 43% percent to a high of 53/4
percent. The legal maximum is 6 percent..
The banks for cooperatives were capitalized
by the United States out of the revolving
fund from which the Federal Farm Board,
previously made loans to cooperatives un-
der the Agricultural Marketing Act of 1929.
Since the Farm Credit Act of 1955, the Gov-
ernment capital in the banks for cooperatives
is being systematically retired by the crea-
tion of permanent capital provided by the
users of the banks. The maximum Govern-
ment capital ever in the banks has been re-
duced by about 71 percent. Two of the
banks ?for cooperatives (Berkeley and
Houston) retired all of their Government
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elm rid in 1963, and the other batiks are ex-
pecied to do so by 1970.
;faction 4: As now in effect (12 'U.S.C.
:14.1.134j), the Farm Credit Act of 1933
)rovides that "subject to such terms and
eonditions as may be prescribed by the
lemon, Credit Administration," the 12 dis-
seict banks for cooperatives and the Central
.:rank tor Cooperatives are authorized "(a.)
it) make loans to cooperative associations as
di:lined in the Agricultural Marketing Act,
as amended, for any of the purposes and sub-
ject, to the conditions and limitations set
irrin in such Act, as amended."
:section 4 of the bill, as introduced, would
delete the words "for any of the purposes
and Nutrient to the conditions and limitations
eat
in Ii in such Act, as amended."
Wish the committee amendment, section
old also transfer to the Farm Credit Act
of 1933 the sentence, now contained in the
Agricultural Marketing Act (12 U.S.C. 1141f
). which specifies that the interest rate
ii loans by any bank for cooperatives may
not ierceed 6 percent.
Tler amended authority of the banks for
cooperatives in the 1933 act then would be
inberrit to such tortes and conditions as
may be prescribed by the Farm Credit Ad-
mine tration fa) to make loans to
cooperative associations as defined in the
Agricultural Marketing Act, as amended."
The only provision of the Agricultural
Marketing Act hereafter applicable would be
section 1.5(a), which defines the farmer co-
oper:it:Ivo associations that are eligible to
borrow 11.2 U.S.C. 11411(a)1. All other loan
orovisinna of the Agricultural Marketing Act
won id Ti) longer be applicable.
'el.: more significant provisions that would
rendered inapplicable are those contained
seetion 7 of the Agricultural Marketing
is amended (12 U.S.C. 1141e). Most of
'Ii orivisions originated in 1929 when loans
were made from the revolving fund es-Leh-
i:erred aider the act which then also provided
IC v.11 re programs which have since been
ffiecootanued. As currently in effect, the
iirovisions that would be rendered inap-
plicable may be sunantorized as follows:
rieder section 7, physical facility loans
;nay oil, exceed 60 percent of the appraised
oi the security therefor (7(c) (1) ) and
mien be repaid upon an amortization plan
iiver a period not in excess of 20 years
? i(d) Further, no loan for the purchase
er lista: tic facilities may be made unless the
,overnor of the Farm Credit Administration
tools that the purcha.se price or rent to be
reireonable (7(c) (2) ) ?
1. The separate references to loans to con-
it cr acquire or refinance physical fa-
il(a) (2) ), loans to assist in the ef-
inciter, merchandising of agricultural coin-
retail ries and food products thereof, and loans
fa ismueraLive association for financing its
mienitions (7(a) (1) ), in effect constitute a
cesei iiisition of loans. These have come to
? nirred to as ifecnity, commodity, and
tmerii one capital loans. Starting in 1933 the
;eon, Loco interest rate provision for com-
modity ??ini operating capital loans was dif-
forint titan for facility loans. However, in.
i.ovo distinction was removed, and since
ilien ell loans have been subject to the same
interest provision which will con-
? eoplic.able as noted earlier_ If the
para,te statutory provisions for
items are now to become inapplicable.
contadered to follow that there no longer
wirinis be occasion for the present separate
clotistei of loans.
3. at, present section 7(b) also provides
Ltiat the loan shall be in furtherance of
pidiuy declared in section t of the Agri-
milturin Marketing Act of 1929 (12 U.S.C.
1141) . many of the purposes of which have
v. ace expired and no longer are relevant.
it; Ms., requires that the cooperative as-
sociation applying for the loan has an or-
gailization and management, and business
policies, of such character as to insure the
reasonable safety of the loan and the fur-
theranee of such policy.
Inasmuch as the hanks for cooperatives
Jot ve now had over 33 yea is of lending ex-
perience during which thoe almost 48,000
loans for a total of about $15 billion have
been made, it is thought lhat the statutory
provisions that have just been reviewed no
longer serve a useful purpose. Without
them, but still subject to such terms and
conditions as may be prescribed by the Farm
Cr?idit Administration, it is thought that
the banks for cooperative, will have more
flexibility and be in a bettec position to meet
the needs of the former cooiteratives that are
el iisi ble for loans.
At the hearings, the Farm; Credit Adminis-
tretion outlined tire terms id' the regulations
it was considering for this lending. A,ssur-
an??,e was given that the loans to farmer co-
operatives will both meeet their needs and
conform to adequate credit standards.
FARM ORES ml' BOARD P:LECT/ONS
Section 5: The Farm CI edit Administra-
tion conducts polls of the three voting groups
in each farm credit district (i.e., Federal
land bank associations, production credit
associations, and cooperative associations
eligible to vote as stockholders of the bank
for cooperatives) to elect members to the
district farm credit boards and to designate
persons for consideration iry the President
for appointment to the Fein:rat Farm Credit
Board. Under existing law 112 U.S.C. 640e,
64(1), a ballot ni?ty not be counted unless
it is received by the Farm Credit Admi,nis-
trillion within 30 days aft???r it was mailed
out.. Section 5 would incoiase the 30-day
Period to 60, excel.i:t that for elections to hll
vacancies the Farm Credit Administration
may specify a shorter peri ?ff. than 60 days
but not less than 30 days.. This would be
effective starting with the next calendar
year. The longer period will give the Federal
land. bank associations and iiroduction credit
assisciations more flexibililer in scheduling
the ineietings of boarres of directors at
which their vote in those polls is decided
upon.,
FEDERAL :FARM CREW r BOARD
eeiceden 6: Th.e Federal Credit Board con-
sists of 13 members, 1 appointed by the
Pre :intent with the advice mid consent of the
Senate from each 3f the 12 barns credit dis-
tricts, and a 13th member who is a repre-
sentative of the Secretary of Agriculture.
This is it part-time Board am itch has respon-
sibility for the ger oral dire tion and super-
vision. of the Farm Credit Administration
that otherwise consiSILS of ti ei Governor and
other employed i)ersonnel The present
amendment would increase from "$50" to
"$1.e1)" the sum that each member of the
Federal Farm Credit, Board Mall receive for
each. day spent in the per! ormance of his
official ditties. As provided in the Farm
Credit; Act of 19511 such compensation may
not he paid for more than 71 days in a calen-
dar year (12 U.S.C. 636c(f) ) The increased
COIF pernatiOn LVOV ni be inure in line with
that paid other personnel since the Govern-
ment Employees Salary Reform Act of 1964
and the Federal Employee:. Salary Act of
1965. As is the case with a': administrative
expenses of the From Credit Administration,
the compensation of the toembers of the
Federal Farm Cerslit Boar,' Is paid from
assessments against the bay ics and associa-
tions supervised by the Perm Credit
Administration,
WORK OF PREPAREDNESS INVESTI-
GATING S ERMA/MIT EWE
Mr. BYRD of West Virginia. Mr.
President, although I am a relatively
April 14, 1961
new members of the Preparedness Inves-
tigating- Subcommittee, nevertheless, it
was highly gratifying to have read an
editorial of the New York Times on
Monday of this week in which recogni-
tion was given for the outstanding serv-
ice so admirably rendered to the country
by its distinguished chairman. Senator
STEN-Nrs, and the subcommittee staff, in
probing and uncovering serious defici-
encies of personnel and equipment in the
Army.
Under Senator STEN-Nis' judicious and
able leadership, the Preparedness Sub-
committee sounded warnings wall over a
year ago that the war in Vietnam could
result in an unacceptable drain upon
the personnel and equipment resources
of our active military forces unless cor-
rective and remedial measures were
taken immediately. Because those
warnings were not heeded at the time
they were made, we must now witness
the removal of troops ft-cm Europe, the
deterioration in the combat readiness of
our other forces, and even complaints
from our valiant men in Vietnam of
shortages of repair parts, clothing, boots,
and certain types of ammunition.
I consider it a distinct privilege to be
associated with the chairman, the dis-
tinguished members and able staff of the
Preparedness Investigating' Subcommit-
tee. The year-long investigation which
prompted the New York Times' editorial
required the staff to embark on long
journeys within three continents and
those with whom they dealt confirmed
their professional competency by report-
ing that they were found to be "thor-
oughly objective, completirly professional,
and unusually knowledgeable." No finer
tribute could be paid to those who have
worked so hard. I have personally been
deeply impressed by their dedication and
competence and want to take this oppor-
tunity to commend them publicly.
Mr. President, I ask uLanimous con-
sent to have the New Yoik Times edi-
torial printed in the R,Ecoro.
There being no objection, the article
was ordered to be printed .:n the RECORs.
as follows:
[From the New York (N.Y.) Thins.
Apr. 11,19'65[
OVERSTRAINED As M Y
Senator STENNIS and his Preparecineria
Subcommittee have done the Nation and tins
Armed Forces a service in pinpointing the
Army's serious deficiencies ol persoonel ami
materiel. The temporary wit,hdrawiii of 15,-
000 Army specialists from Wist Ge 'manyto
meet military needs in Tic' earn comfit:1m
the strain.
For at least a year the Seim tor and his as-
sociates have been warning that the Viet-
namese war has resulted in ri major and, in
some items, dangerous "drawlown" of avail-
able military supplies: tha t war tiss also
reduced the experience level of yin only all
Army units except thane actually in Viet-
nam. The steps taken by the Pentagon to
meet the drain have been inadequate to
maintain a strong and read; strategic re-
serve, with the result that the Army is spread
thin. Very few trained until a are ready to
reinforce Vietnam or to meet other emer-
gencies.
Nearly all the Regular: Arny unite in the
United States are, in effect, :raining units;
certain types of key specialists in Europe
have been Lapped for service Vietram; two
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majority of cases, the question should
be left to the elected representatives.
Actually, this is one of the principles of
the Republican Party. It is certainly a
principle of a republic that its elected
officers should decide and determine the
rules of the game and determine what
the laws should be. It should not be
the overall vote of everyone involved.
We are elected to inform ourselves, to
vote our convictions, and to vote on the
basis of our opportunity to assume
responsibility.
But I would agree with the Senator
from Iowa that there are rare occasions-
when it is perfectly appropriate to call
for a public referendum; certainly the
opportunity to deprive the people of their
equal right to vote should not be such an
instance.
Mr. MILLER. Mr. President, I do not
believe that the question of whether one
is in favor of a referendum procedure
is a partisan matter.
I cannot think of anything in either
the principles of the Republican or Dem-
ocratic Parties which would cause any
difference of opinion on a partisan line
basis. Some Republican States have an
initiative and referendum and others do
not. Some Democratic States have the
initiative and referendum and others do
not. That would seem to bear out the
truth of the statement.
I suggest that the Senator may be lay-
ing a trap for himself if he talks of all
the money and pressures involved in a
referendum and then concedes that on
certain rare occasions he might go along
with a referendum. Pitfalls are con-
tained in any referendum. I think that
one ought to be for or against a refer-
endum procedure.
I do not think that the people ought
to be subjected to studying a long ballot
with many different items on it in a
referendum.
It may be desirable that the vote of a
certain percentage of voters in a State,
perhaps 25 percent of those who voted in
the last gubernatorial election, be re-
quired to have the initiative on a refer-
endum.
I cannot see that we are faced with
that proposition here. It would only
come before the voters once every 10
years. It would be required to be on
the ballot.
This reapportionment matter is of
such major importance that the Senator
from Wisconsin would not have to worry
about the large turnout of people to vote
on this proposition once every 10 years.
I think that the essential arguments,
after we cut through all of the side issues
that are being tossed around to some
extent on both sides of this question,
concern the question of whether we be-
lieve in the initiative in the referendum
of the people. I happen to believe this.
I think it is probably the best way of
? getting an expression of the will of the
people of a State is to have the question
put before the people in a referendum.
That is all that the Dirksen amend-
ment would do. It would do that very
thing and put the issue before the peo-
ple in a general referendum and give
them a choice, and that choice must
include whether the second house should
be on a strict population basis. If they
do not want their votes to be diluted,
they will have that choice.
Mr. PROXMIRE. Mr. President, I
thank the Senator from Iowa. I appre-
ciate his viewpoint. It seems to me that
the issue is crystal clear. The issue
concerns whether each American, re-
gardless of where he lives or his back-
ground, as long as he is a qualified voter,
should have an equal vote.
The referendum is strictly a sweetener.
It is tossed in because there just are not
any valid reasons for depriving people
of their right to an equal vote. So what
have the Dirksen amendment proponents
done? They have cleverly fallen back
on the referendum device.
The argument runs: the proposition
may be unfair, unwise, retrogressive, and
dangerous, but so what? Why not let
the people decide?
The answer, Mr. President, is that the
people are very likely to be required to
vote in a rigged election, an unrepre-
sentative election, because the body that
puts the question has a transparently
vested interest in securing the an
SOUTH VIETNAMESE DEMONSTRA-
TIONS
Mr. PROXMIRE. Mr. President, the
demonstrations in South Vietnam are
unfortunate and untimely. However, I
think they are a basic part of the strug-
gle for self-determination.
While there can be no doubt that the
allied military efforts have slowed down
as a result of the political unrest, the
demonstrations indicate many people of
South Vietnam strongly believe demo-
cratic government is no longer a remote
aspiration but a real possibility.
It is highly significant that these civil
disturbances have occurred at a time
when the military offensive has been
going well. The New York Times of
Friday, April 8, 1966, commented:
All the squabbling factions think the war
is going well enough so that they can assume
there will be a country to govern. Some are
trying to arrange the elections as though
Saigon were Boston.
After the tremendous sacrifices the
American people have made to assist the
Vietnamese people in their long and
valiant fight for freedom, the civil strife
in Vietnam is especially difficult for us
to accept. First, there is a small, isolated
but dramatic ingredient of overt anti-
Amerianism in the disturbances. Sec-
ond, the military efforts against the
Vietcong and the North Vietnamese in-
vaders are definitely impeded. Third,
the end result could possibly be a gov-
ernment which would tell the U.S. forces
to go home.
Let us not forget that, although we
may vigorously disagree with the timing,
that the protesters are asking for an elec-
tion and a constitution. What is wrong
with that?
No faction in South Vietnam seeks a
caretaker administration or an under-
taker administration to preside over the
requiem for democracy in Vietnam.
These people are predominantly anti-
Communist. They want to compete for
control, because at long last through the
heroic efforts of their Own people and the
great sacrifice of the United States, there
is a government worth governing.
If South Vietnam is to have a real
chance for a free and independent fu-
ture, it must make great progress in land
reform and education. Helping to
achieve this reform is a great challenge
to us, but it is not the greatest challenge
we face.
And America's most challenging prob-
lem in Vietnam is not military victory.
We surely have the power to achieve that
objective.
Our toughest challenge is how to assist
South Vietnam to achieve the educa-
tional and economic progress necessary
to make that victory meaningful with-
out the fact or even the appearance of
American domination.
American help has to be without
strings. We must know it. And, most
important, the South Vietnamese must
know it.
The South Vietnamese want their own
Vietnamese revolution?not an American
revolution.
Whether this country has the wisdom
and especially the patience to help make
this possible is our big test.
MILWAUKEE COURT DECISION ON
NATIONAL LEAGUE BASEBALL
Mr. PROXMIRE. Mr. President, yes-
terday a circuit court in Milwaukee
handed down a historic decision on ma-
jor league baseball. I feel very strong-
ly that it is a sound decision.
Organized baseball has previously en-
joyed special privilege under the anti-
trust laws. Now it is on notice?the Na-
tional League and the Braves specifical-
ly?that this privilege carries with it
responsibility to the people who have
paid its way.
The Roller decision makes it more vi-
tal than ever that Congress require ma-
jor league baseball to divide television
revenues as professional football and
basketball now do. Without this change
there will continue to be immense diffi-
culty in getting and keeping a major
league team in Wisconsin.
For 12 years Milwaukee fans supported
the Braves in greater numbers than any
city in organized baseball. The obvious
economic reason for the move to Atlanta
is not to secure greater fan support, but
to pick up a fat television contract that
Milwaukee because of geographical lim-
itations can never match. This is
wrong and unfair.
The question has now become whether
major league baseball is our national
pastime?and truly a sport?or whether
it is a commercial television package?
like "Peyton Place" or "Get Smart"?to
be sold to the highest bidder. This ques-
tion must and will be answered.
NATIONAL MILK PRODUCERS
FEDERATION TESTIFIES IN FAVOR
OF SCHOOL MILK PROGRAM
Mr. PROXMIRE. Mr. President, as I
indicated yesterday, one of the high-
lights of the recent hearings on the De-
partment of Agriculture's appropriations
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CONGRESSIONAL RECORD -- SENATE April 1 , 1 O(>6
request or fiscal 1967 was the ap-
pearance on the last day of the hearings
o a number of public witnesses who testi-
fied on behalf of their organizations in
leroport ot: the special milk program for
sehoolchildren. These witnesses unani-
mously opposed the proposed Child
T),Ul,rition Act of 1966. which I am begin-
ring to believe is the most unpopular
name or legislation peonosed by the
Johnson administration.
Today t would like to mention the
eitement made by Pat Healy of the Na-
:nal Milk Producers Federation in sup-
nort of the school milk program. First
tre federation points out, as I have so
many times on this floor, that in order to
limit the program to the needy, as the
administration proposes, it will be neces-
eary to "me a means test which can "only
result iii discrimination against all
schoolchildren." As the federation in-
dicates, a number of needy children par-
ticipate under the present program. .13y
redirecting the program to the needy
alone, the Child Nutrition Act could
iasult in reduced participation by needy
children since funds will have to be used
Is provide milk on a completely free basis
.mther than at a reduced price. Of
course this means it will take more
money to provide less milk.
Perhaps the most significant point
made by the federation?especially in
view of its expertise in this area?is the
l.qmact that an 80 :percent cut in the
1,rogram could have on dairy farmer in-
come as well as Commodity Credit Cor-
poration stocks. Statistics will show that
tinder the school milk program in fiscal
1965. nearly 3 billion half-pints of fluild
railk were consumed by children in over
,)1,000 schools, child-care centers, sum-
mer camps, nursuries, and other child-
care institutions. This represents 1.6
hillion pounds of milk?about 3 percent
ef total nonfarm consumption of fluid
milk in the United States. The federa-
tion points out that "without the special
milk program for children this quantity
oi milk will probably be purchased by the
Commodity Credit Corporation in the
torm of manufactured dairy products at
substmitial cost to the government for
tPc product and its storage." This
:Imply means, Mr. President, that a sub-
rtantial cut in the school milk program
will save the taxpayer little or nothing.
,keichtional funds will have to be spent to
purchase the milk under the price sup-
port program.
BRACER? PROGRAM
Mr. HOLLAND. Mr. President, I shall
defer until later what I intended to say
with reference to the pending business
before the Senate.
Mr. President, I am becoming increas-
ingly concerned, as I am sure many of
my colleagues are, over misguided actions
of the administration which I feel will
surely depress the agricultural industry
Lu the degree that many of its producers
will find it no longer profitable to op-
erate.
At this point Mr. SPARKMAN took the
chair as Presiding Officer.)
Mr. HOLLAND. Mr. President, on
many occasions I have joined with some
of our colleagues on the floor of the Sen-
ate to denounce the actions of the De-
partment of Labor with revrd to the
furnishing of timely off-shore labor to
assist in the harvesting of perishable
fruits and vegetables. While alpine relief
has been obtained, crop loose running in
the millions of dollars have lmen caused
by the i[act: of understanding of the prob-
lems involved, and many acre:i are going
Implanted this year due to the uncer-
tainty of obtaining :necessary labor. At
the same time many farmers and pro-
cessors are moving their op 'rations to
Mexico, and some to the I ahamas or
elsewhere.
Now, the proposal to ameed the Fair
Labor Standards Act of 1938 as reported
out of the Education and Laloir Commit-
tee in the other body with the support of
the administration w 11, if ens ated., estab-
lish rt.-MIMI:um wages for agrieulture em-
ployees, never intended when the act was
first considered; it alio incluMis unfavor-
able action toward those eng 'tged in the
processing of agricultural commodities.
This, Mr. President, is anothe I. indication
of unfriendly actions aimed at the farm-
ers, growers, and processors. ,
Now. Mr. President:, comes nother ac-
tion of the Department of Agriculture
and the IDefense Department o limit the
purchase of pork by the mietary in an
action designed to further depress farm
prices.
Mr. President, whet will beeome of the
farmer, the grower, and the processor as
a resist of these actions which will not
allow him to receive an adermate return
to keep him in businass?
It is my intention to do al: possible to
protect our agricultural inte:rests and I
am sure many of my colleagoes feel as I
do. We, the greatest agricultural pro-
ducing nation in the world, sailed upon
to feed millions of undernouriahed people
of the friendly countries of I he world?
and, recently called upon by the Presi-
dent to increase agriculture assistance to
those countries?must preset :,/e) the most
basic and important industry of our
country.
Mr. President, I ;ask unananous con-
sent to have printed in the RECORD an
articlo published in the Washington Post
this morning, entieled "Farmers Seen
:Squeezed by Policies,- which re-
ports on a statement made by the Presi-
dent of the American Farm 1.1-ureau, Mr.
Charles B. Shuman., and which tells a
part ot the story of what is Lappening to
our farmers today.
There being no objection, the article
was ordered to be printed in the RECORD,
as follows:
FARIVIEES SEEN SQUEEEED BY L 3.J. POLICIES
President Charles B. Shuman ,')f the Amer-
ican Inrm Bureau Federation siild last night
the Juinison administration is making the
farmer a whipping boy for I llation gen-
erated by the Cover meat's c,vn spending
The fano official said the priducer is get-
ting, "the double whammy- from the admin-
istration in the form of legislative recom-
mendations to force farmers to pay higher
wages and in adnainisrative aet::ons designed
to pull down farm prices.
In a speech prepared for a Cornell uni-
versity forum, Shuman said:
"President Johnson knows as .veil as nearly
every taxpayer that his irresponsible spend-
ing, which exceeds anything in the hiiitary
of this country, is the real force driving up
prices and deflating the value of tile dollar.
"And now that the administraV on publicly
admits that inflation is here, it is seeking he
scapegoat to divert public attenti.;o, from the
real culprit."
Shuman said farmers are pay; ?ga hi;Lpair
price for inflation than any otets7 group. He
said their production costs increased from
620.2 billion in 1960 to $50.3 bill 'I in 1961.
Shuman said that adrnili!Str; ionsadions
designed to depress farm prices include cur-
tailment of military purchases el pork; CDV-
ernment "diunping" of surplus gs iins to force
down market price; increased imports of
cheese to hold down priceig i ti, 11 et
Light quotas on exports of hides, mainly cat-
tle hides, and forecasts of Secret iry of Agri-
culture Orville L. Freeman tkpit r ,Lirp prices
will drop 6 to 10 percent this ye Lr.
(At this point Mr. PROXMT61 took the
chair as Presiding Officer.)
REAPPRAISAL OF OUR FIlLE,CTIVE
SERVICE LAWS
Mr. KENNEDY of Massachusetts. Mr.
President, there has been increasing in-
terest, in recent months, in Or WOrkint1S
of the selective service law. This is nat-
ural and proper, as draft calls increase,
and more and more young men must plan
their futures around the probability of
military service.
The present draft law has been in ef-
fect, without significant change, since
1940. Next year the law eigiires and
must be renewed by Congress. The last
three extensions of the draft, each for
a 4-year period, passed Congress rou-
tinely, without any searching review.
This should not happen this time. Next
year's expiration date, combined with
the great increase in public interest in
the draft, make the coming months an
excellent time for a thoroughgoing re-
view of draft policy and procedures. If
Oils is done now, when the time for re-
newal comes, we will be in a position to
legislate responsibly and constructively
on this important subject. In this con-
nection, I note that the di; tinguished
chairman of the House Armed Forces
Committee has said his committee plans
to hold hearings on the draft this year.
I have undertaken a preliminary study
on my own in the last few necks. The
Selective Service System is cooperating
in my requests for certain statistics. I
intend, in the near future, to make some
suggestions about improvements in the
draft law. But today I would like to
report to the Senate on one al poet of the
present law which, in my opinion, has
created very inequitable situations.
Under the present statute, the total
monthly requirement for dra.'Lees is de-
termined by the Department of Defense,
transmitted to Selective Service and then
allocated to the States. Each State is
given a quota which it must meet; and
in turn, each State levies a quota on
each local board. The quota is deter-
mined in accordance with section 5(13)
of the selective service law, winch states:
Quotas of men to be Inducted for * * *
service * * shall be determined for each
State * * * on the basis of the iietual num-
ber of men in the several States * * * and
the subdivisions thereof, who are liable for
such * * * service but who are it deferred
after classification * *
Approved For Release 2005/06/29 : CIA-RDP67600446R000400060009-3