ADDRESS BY HON. NORMAN S. PAUL, ASSISTANT SECRETARY OF DEFENSE, BEFORE THE 64TH NATIONAL CONVENTION OF VFW AT SEATTLE, WASH. EXTENSION OF REMARKS OF HON. L.. MENDEL RIVERS OF SOUTH CAROLINA IN THE HOUSE OF REPRESENTATIVES

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Approved For Release 2005/04/21 : CIA-RDP66B00403R000400280008-8 Appendix Address by Mayor Dawahare, of Hazard, Ky., Before the U.S. Conference of Mayors EXTENSION OF REMARKS or HON. JOHN SHERMAN COOPER OF KENTUCKY IN THE SENATE OF THE UNITED STATES Tuesday, October 1, 1963 Mr.. COOPER. Mr. President, I ask unanimous consent to have printed in the RECORD the speech of Mayor William C. Dawahare, of Hazard, Ky., on June 12, 1963, before the U.S. Conference of Mayors, meeting in Honolulu, Hawaii. Hazard, Ky., a community of 6,000 people, is the county seat of Perry Coun- ty, named for Commodore Oliver Haz- ard Perry. Mayor Dawahare's speech tells of the heroic efforts of-the people of Hazard and Perry County to meet the adverse economic conditions resulting from the technological changes in the coal industry which have reduced the number of miners employed in the coal mines of eastern Kentucky. It is an in- spiring story of the spirit of the people of eastern Kentucky. There being no objection, the speech was ordered to be printed in the RECORD, as follows: FEDERAL-CITY COOPERATION ON PUBLIC WORKS (By Hon. Wm. C. Dawahare, mayor of Hazard, Ky.) When I became mayor of Hazard, Ky, I felt a real sense of honor and privilege. This was my greatest challenge-to do something to help our city become a better place in which to live.. But, I never realized that this office would lead to this wonderful opportunity to speak to so many of the great mayors of America. I am deeply honored and grateful on behalf of all the citizens of Hazard for this moment to talk with you., I asked someone why I was included on this program. I'm mayor of a little town in a depressed area in the mountainous coal mining country of southeastern Kentucky. Hazard is the county seat of Perry County, Ky., named for Commodore Oliver Hazard Perry, famed naval hero of the Battle of Lake Erie. The official population of Hazard is about 6,000. The immediately adjacent fringe area brings this to about 35,000 within a few miles, and it serves as a geographic, trading and business center for about 300,000 people. Hazard is in the John Fox, Jr., country of Kentucky, the locale of the "Little Shepherd of Kingdom Come" and "The Trail of the Lonesome Pine," two famous bestsellers of a half a century or more ago. Unfortunately, much of the glamour of the realization of the dreams of Mr. Fox's novels is gone and many of our present troubles in southeastern Kentucky are those incidental to the dislo- cation growing out of changing technology, .economic adjustments and realinements in the fuels industry. Our town faces the same problems of those of the many. small towns throughout the country. These include -the problems of transition from a declining mining or agri- cultural based economy to the industrial economy we must have to provide new jobs. The underdevelopment of basic facilities, not provided adequately before, but now ab- solutely essential to development of a new economy, and blight and decay of all kinds, now frustrate any efforts to redevelop. Fi- nally, the problem is aggravated by the com- bination of high and rising costs of develop- ment-population with great needs and growing percentages of young and old persons with. greater public needs in the fields of education and welfare-and the problem of a dwindling and inadequate tax base resulting from various factors, including a heavy out- migration of citizens at taxpaying age. Citizens all over America face big prob- lems-growing needs, rising costs and dimin- ishing tax bases. What makes Hazard dif- ferent? What makes our problem worse? Well, we sometimes say that we've been so far behind in eastern Kentucky that we don't even have modern problems. Hazard is located in the very heart of the beautiful but economically distressed eastern Kentucky mountain region. This region has been hit by every problem that troubles America-and twice as hard. With automa- tion in coal mines and loss of coal markets; dwindling timber reserves; loss of marginal farming opportunities; the absence of an established industrial base for new growth- eastern Kentucky represents the most se- verely distressed area in the United States. We're not proud of this. But we are proud of eastern. Kentucky and we have to face these facts to rebuild a fair opportunity for people to live in this great region. My privilege here today is to tell you that, in spite of all the problems of Hazard and all the problems of eastern Kentucky, we are succeeding in development. Our progress in eastern Kentucky began .with the administration of our current Gov- ernor, Bert Combs. Governor Combs comes from this region; he understands our prob- lems. These problems and the action that would have to be taken to meet them were realistically outlined by the eastern Ken- tucky Regional Planning Commission in a report made at the time of Governor Combs' inauguration. The new Governor recog- nized the report as a blueprint for action. Construction of a regional highway is mov- ing fast, and a great section leading toward Hazard is already in use. No single action is more dramatic or symbolic than the great highway which is a breakthrough to the barrier of isolation of our mountain country. The building of this symbolic highway is, of course, much more than a construction project. It is an act of faith in the future of our region. It is a demonstration of faith that our people will work for themselves- that we will use the new highway and other facilities to the fullest and that we will build up our communities as centers of commerce and industry, of education and culture, and of development and technology. When I became mayor of Hazard, we were already working hard on development. In addition to efforts made over and over to bring in industry, we were trying hard to solve the problems of community improve- ment needed for industry. We carried out the first successfully completed urban re- newal project in the southeastern United States. We have three additional urban re- - newal projects in the planning stages. Also, we have three projects under the accelerated public works program in the construction stage-extension of water and sewer facili- ties, a street paving project and a new mu- nicipal building. In the way of financing our portion of the cost, Hazard has always enjoyed excellent credit. We, take pride in the fact that, -even in spite of the handicaps Hazard has ex- perienced, we. have never been - in default with interest or principal on any obligation. Our floating debt is current, and because of this, almost all improvements are being fl- nanced by revenue bonds, which are eagerly sought by investors. We recommend rev- enue bonds wherever possible because of the speed with which funds may be made avail- able. Our street paving project now in progress is financed by property assessments, which are insignificant, thanks to the ac- celerated public works grant. At the time I became mayor, spirits were lower than I had ever seen them. Business was at a low ebb. More and more we heard people threatening to sell their homes and take their businesses elsewhere. - I needed advice and I needed help. I was determined that there had to be a way to solve our problems. In setting up his pro- gram for eastern Kentucky, Governor Combs had appointed a special assistant, a young man named John Whisman, to develop new ideas and to coordinate action. I decided to talk with him. "Willie," he said, "the difficulty is that each project you want to do in Hazard seems impossible. But each one seems impossible because you need so many things all at once before you can create a situation in which any project is possible. The only answer is to try to do them all. It will be harder. But a program of several projects can be possible where each individual project seems impossible." - I had only one question: "How do we get started?" John suggested that we set up a plan of attack in which we would get our local people to work outlining our problems and their own ideas for action. At the same time, we would talk to all the people in State and Federal agencies, and in organizations such as the State chamber of commerce, the State university, and- any others who could help. In talking to these people, we asked them to provide members for a technical task force to come to our community for 3 days of intensive work to help us lay out a pro- gram of action. Our purpose would be to review all the problems and all the programs that might be used in any way to meet, then try to put together - a combination of im- mediate actions to meet several problems at once, and to lead to a full-fledged program of development that would give us success in the years to come. Mr. John Gibson of the regional office of Urban Renewal Admin- istration assisted immeasurably in this task. Our program was started in just that way. We ran into many, many persons who were most helpful to us-men like Bill Slayton of the Urban Renewal Administration and Bill Batt of the Area Redevelopment Administra- tion; our own Congressman, 'Carl Perkins; our Senators John Sherman Cooper and Thruston Morton, and many others; all were anxious to help. We held our 3-day task force meeting, and, while at first it did not seem to make much happen, I found it A6141 Approved For Release 2005/04/21 : CIA-RDP66B00403R000400280008-8 1W A6142 Approved Qr_R Ie 2NAL RECOR -R APPENDIXR000400280008- October 1 laid the groundwork for the successes we have had since. And we are having success. The thousands of people who will travel the new Mountain Parkway into eastern Kentucky will soon see a new center of our mountain economy de- veloping in the city of Hazard. We have taken all the help we could get. We have used every program we could use, where be- fore we didn't know how to use any helpful programs. We now have a full-time planner. Mr. Paul Townes, working for our com- munity. We have learned to use technical assistance, to have plans ready in advance, and to work and work until we find a way to carry out the plans. I won't bore you with all the details of our program In action today. But in the list of actions I will run through quickly, I hope you will share my pleasure and encourage- ment in the knowledge that our community, which has hungered for many years for suc- cess on any major project, now finds Itself busily engaged in many projects. Today we have underway the provision of water to 1,300 homes which have never had running water before. We are expanding our entire water and sewerage system; we are building a new municipal building; we have three urban renewal projects in process Involving major reconstruction of blighted sections of our town; we have two public housing proj- ects, and weare seeing new activity In pri- vate home construction; we have a new health building, and we are planning a new hospital, a, new courthouse, a new sewage disposal plant, new streets, and-most Im- portant-many new business developments. Beyond this, we have our first new Industry, employing only 20 people. We are working on a new factory which will employ 190 peo- ple and a major tourist resort complex which will provide employment for 500, in addition to bringing thousands of paying visitors to our city. This major tourist resort, Magic Mountain, is to be built on a mountaintop, with spectacular scenery, about 1 mile west of Hazard with 200 motel units. There is to be a model mine, depicting the progress of coal mining from its primitive beginning Into the spectacular future. A museum will con- tain many exhibits related in character. There Is to be a ski run and ski lift, an ice skating rink, a lake for boating and fishing, an amphitheater, swimming pool, horseback and hiking trails, high quality shops, rifle range and skeet shoot. nightclub, and restau- rant. Our portion of the cost of Magic Mountain is being raised by the sale of stock, and an application for financing the rest is pending with the Area Redevelopment Ad- ministration. We have used every program available- urban renewal, community facilities, public housing, area redevelopment, small business administration, and accelerated public works. We have shaped a long-term, workable pro- gram which we intend to carry through. We are participating in an area development program. I have been elected to serve as Chairman of the Upper Kentucky River Area Development Council, which is uniting many Interests In several counties and communi- ties to create an overall economic develop- ment program for our entire area. Local projects, area projects, regional proj- ects. statewide projects-Hazard is active in all of them. We can't whip our problems in Hazard or in eastern Kentucky or in the great Appalachian region until we have a great deal more help to shape a great pro- gram of recovery for the millions of people who at the present time are denied a reason- able American economic opportunity. Presl- 9ent Kennedy, just last month, directed that such a program be formulated and put into Action. We know that no such program would be worthwhile, however, unless we in the local community are willing to work and to sacrifice to make the help effective. We In Hazard are determined that our commu- nity will be a pilot example of doing the most we can for ourselves and that It will be a successful proving ground for an overall pro- gram to bring real opportunity to our people. In conclusion, words cannot express my appreciation for being invited to attend and address this meeting. Each one of you has my personal invitation to come and help us enjoy life in the biggest and best Hazard In the world. Thank you. Addreslf by Hon. Norfnan' 5. our, As- sistant Secretary of Defense, Before the 64th National Convention of VFW at Seattle, Wash. EXTENSION OF REMARKS or HON. L. MENDEL RIVERS OF SOUTH CAROLINA IN THE HOUSE OF REPRESENTATIVES Tuesday, Octobe- 1, 1963 Mr. RIVERS of South Carolina. Mr. Speaker, the Veterans of Foreign Wars of the United States recently completed it 64th national convention in Seattle, Wash. During that convention many distin- guished persons spoke to the thousands of delegates who traveled to Seattle for this convention. Among those who spoke was the Honorable Norman S. Paul, As- sistant Secretary of Defense, Manpower. Secretary Paul's address to the conven- tion was of particular interest to the VFW. In view of that organization's long- standing support of legislation and pro- grams helpful to those on active service in our Armed Forces, as well as the re- tired personnel. I am confident that Members of this House share my respect and admiration for the manner in which Secretary Paul has faced the many personnel problems for the armed services, as well as the sincerity and ability with which he Is working in the interest of our Armed Forces personnel. It Is pertinent, I believe, to note that the VFW, too, shares the widespread ad- miration for Secretary Paul, With good reason, then commander in chief of the VFW, Byron B. Gentry, of Pasadena, Calif., introduced Secretary Paul as "the serviceman's friend." -Such an introduc- tion was certainly well justified. Mr. Gentry was succeeded as com- mander in chief of the VFW by Mr. Jo- seph J. Lombardo, of Brooklyn, N.Y. In view of the Interest of Members of this House in matters pertaining to those in our Armed Forces, and because of the importance of the information provided In Secretary Paul's address to the VFW, I include his speech of August 26 to the VFW convention, in Seattle, Wash.: ADDRESS OF NORMAN S. PAUL, ASSISTANT SEC- RETARY or DEFENSE, MANPOWER, AuovsT 27, 1963, SEATTLE, WASH. The first thing I'd like to say is that it's always a pleasure to meet with this dis- tinguished combat veterans' organization. I want to thank you for inviting me to your convention again this year. Speaking personally, it's good to see so many friends and associates gathered here, and I am looking forward to the opportunity of exchanging a few thoughtsand ideas with them. Speaking officially, it's good to know that the Armed Forces and the Department of Defense are continuing to benefit from the counsel ard support of the Veterans of For- eign Wars. Because of your individual per- sonal exl;eriences, your collective view- points have been characterized by con- sistency and realism. Over the years you have given your back- g to a great many essential programs and defense measures Ih general, to appropriate defense measures in general, to appropriate actions on behalf of the individual men and women who make up our Armed Forces in particular. It is to this latter area of interest that I wish to address myself briefly here today, reporting to you on what has been done over the past year in the manpower field and related areas, and what we believe lies ahead for the future. A year ago I made the following statement at the convention in Minneapolis: "It Is plain that. one of our principal responsi- bilities continues to be that of attracting, training, and keeping the kind of high qual- ity, high performance personnel that today's complete weapon systems demand, and those of tomorrow foreshadow. "One of the basic requirements for coping with this problem-both in its immediate and Long-,erm Implications-Is a sustained program of realistic attention to the prob- lems and needs of the individual serviceman and the service family-coupled with the awareness that they are deserving of the best." Over the past 12 months we have been working tc fulfill our responsibilities In this respect-and to get programs and policies moving ahead to accomplish specific ends and objectives. We have just made a start and there Is a lot more to be done, PAY BILL The mo:.t important of these, of course, has been the Defense Department's proposal for a general pay increase for the Armed Forces. When I left Washington the other day this legislation was moving toward final enactment I believe I am on safe ground by predicting that the Increases will become effective or, October 1. We are grateful for the support this meas- ure has had from the public, from the Con- gress, and from the administration, for it has long had the highest legislative priority Secretary McNamara could assign to it. We are hopeful that it will greatly assist us in all of our ether efforts to build and keep the quality career force our Nation's defenses require. The pay bill will add about $1.2 billion to the annual cost of the Defense program amounting. In the aggregate, to three times the Increase that was approved in 1958. This increase follows and is additional to the substantial increase in quarters allow- ances which went into effect on January 1 of this year. Secretary McNamara commented on this point not long ago, saying: "These are huge amounts. They will add importantly to our costs. But I want to emphasize again that it is true tint the military personnel pay has lagged substantially behind the compensa- tion of civilian personnel In this country, The increase Is long overdue. There is noth- ing I know of that will do more to support the morale and efficiency of this department than to psis the pay bill as we recommend It.,. I think that the Secretary of Defense stated the ease as well as it could be stated. Apparently the Members of the U.S. Senate agreed for they passed a pay bill substan- tially along the lines we had recommended by a unanimous 84-0 vote 2 weeks ago. The house :'sad passed a similar bill, also by Approved For Release 2005/04/21 : CIA-RDP66B00403R000400280008-8 Approved For Release 2005/04/21 : CIA-RDP66B00403R000400280008-8 1963 CONGRESSIONAL RECORD - APPENDIX A6143 unanimous vote a short time previously. We are confident that the difference between the two bills can be ironed out without too much difficulty. Without going into all the details, or the differences between the House and Senate versions, the pay bill provides base pay in- creases ranging from $60 to $110 per month for officers, $5 to $120 per month. for enlisted ranks-with the biggest increases going to officers below the rank of colonel and to the middle and highest enlisted ranks. The bill also includes provision for a special "hostile fire" pay of $55 a month. Other major changes are included such as an increase in medical officer pay at selected career points. One of the major innovations provides for. a family separation allowance of $30 per month payable in addition to other allow- ances and per diem payments. At the time I left Washington it was not yet clear what final arrangement would be made with respect to increased rates of re- tired pay.. I am sure that many of you are extremely knowledgeable with respect to the various alternatives under consideration by Congress. We believe that the important subject of retirement benefits has been given an ac- curate new perspective and a constructive approach for the future. We are convinced that the most effective, equitable, and work- able system upon which to base further ad- justments will be through the cost-of-living formula. The entire concept of military retirement, I might add, including the important prob- lem of medical facilities and care for retired personnel and their dependents is also under study. The total number of retired citizens is growing at a great rate and there is no question but what intensive attention must now be devoted to their problems and to the entire subject of retirement programs and activities in general. PAY SUMMARY For the Department of Defense, the pay bill of 1963 represents one more step (and obviously a substantial one on the long road to a fully modern, fully adequate compensa- tion system for the U.S. Armed Forces. We have benefits from the work of the Hook Commission in 1948, the Cordiner Committee in 1957, and most recently from the exacting staff work and studies that went into the present pay proposals. We are mindful, too, of the principles reflected in the Federal Salary Act of 1962, and of the recommenda- tions of such groups as the Randall Com- mittee, which has proposed a broad com- parability program for the Government em- ployee and civil service official. What is involved here is the question of changing needs in a changing world-where the guidelines must continue to be a funda- mental concern for the individual, but where.. the military compensation system itself may require annual reevaluation and, on occa- sion, basic overhaul. While the current pay bill is of great importance, it will probably serve as a prolog to further the more basic changes in the pay system of the future- based upon studies now in progress at the request of the Secretary of Defense, and based upon changing needs and concepts, the annual review concept is most important. DUAL COMPENSATION Having mentioned the retirement situa- tion. I might say a few words about the ad- ministration's dual compensation-dual em- ployment legislative proposal which was sub- mitted by the civil Service Commission and introduced as H.R. 7381. Presently we have 40 statutes concerning the Federal civilian employment of our re- tired military personnel. Although only two of these laws place Government-wide restric- tions on civilian employment and total com- pensation of retired military personnel, the exceptions by statute and judiciary interpre- tations together with over 200- decisions by the Comptroller General, have created a sit- uation that is restrictive, confusing and complex, and most difficult to administer. Even the so-called experts in Government are not sure, at any given time, that the Federal pay of certain retired Is legal or not, until GAO lowers the boom. How can we expect the poor individual to know? Under these laws, certain retired military personnel--primarily regular officers-are barred completely from Federal civilian em- ployment. Others may be employed subject to certain compensation limitations and others may be employed without limitations on their total combined income. These con- ditions, in addition to preventing the Gov- ernment from obtaining the services of cer- tain highly qualified personnel, have created a serious morale problem among our person- nel, both active and retired. We are of course concerned with the morale and. well-being of the civilian work force. I am particularly concerned, because the DOD is the largest civilian employer in the Government. But we are also keenly aware of our obligation to insure that retired mili- tary personnel, many of whom are forced to terminate their military career at a time when they are relatively young and with fam- ily responsibilities at their peak, have an equal opportunity to seek civilian employ- ment on the same basis as other citizens. This legislative proposal would permit all retired military personnel to seek Federal ci- vilian employment and would provide fair treatment for all categories of personnel in- sofar as compensation limitations are con- cerned. It would also consolidate and sim- plify the many conflicting and confusing statutes on dual employment-dual compen- sation. Furthermore, enactment of this legisla- tion would establish a fresh start principle for retired military personnel employed in Federal civilian jobs. Since persons retiring from the military service have generally real- ized retirement benefits based on a military career, it seems desirable and equitable for them to start a Federal civilian career on the same basis as others who are also enter- ing the civil service for the first time. How- ever, because the career military member has also earned certain rights and privileges to which the citizen-soldier, who served with him during periods of hostilities, is also en- titled, consideration should be given to such service when the retiree is employed In a Federal civilian position. We believe the proposed law is eminently fair and in the best interest of all con- cerned. We are hopeful of its enactment by this Congress. ADDITIONAL ACTIONS The past year has seen a great deal of addi- tional, and important, activity in the gen- eral area of personnel-most of which has been translated into proposed legislation or administrative directives. We have vigorously presented to Congress recommendations for a consistent program for construction or improved troop and fam- ily housing. Our program is directed to the relief of serious deficiencies in both quantity and. quality. This program appears to be in some trouble. We have not yet been able to gain action on the Bolte package of career.. management items, but we propose to do our best with respect to it following final decisions on the pay bill. We consider this legislation of prime Importance, and are prepared to ac- cord it the same kind of priority attention as that given to compensation matters. Joint travel regulations have been greatly changed to provide new, or more equitable, travel and transportation allowances in the United States. These include: Establishment of actual expense allow- ances in the United States. Authorization of $1 per diem for members of deployed units. An increase to 10 cents a mile of the reimbursement rate for use of privately owned vehicle for local travel. Authorization of reimbursement of entry fees, boarding taxes and other expenses in- cident to dependent travel, and An increase to $16 per diem while in travel status. Along with these changes to travel regu- lations are two related items: The first, au- thorizing advance return of dependents and effects from overseas, and the second, au- thorizing payment of travel and transporta- tion allowances on permanent change of sta- tion when orders are canceled or revoked. Both of these measures have passed the House of Representatives. Our bill for the award of cold war medals has passed both Houses of Congress, and only awaits the President's signature. As a result of Defense reclama to the Treasury Department, we have thus far de- layed the proposed reduction from $10 to $1 on gifts to be admitted into the United States duty free. We based our position, and we think rightly, on the adverse effects such a reduction would have on morale of mili- tary personnel. I might add here that this item, although receiving little attention in general, was noted by your Washington of- fice and the Defense position was supported by your organization, for which we are most grateful. CONCLUSION I am aware that I have dwelt at length and in detail on aspects of the present and contemplated program in the military man- power area. I have done so, first, because of your well-known interest in matters of this nature, and second, because of our own belief in the Defense Department that they stand at the core of all our other program effectiveness in the Armed Forces. I believe this to be true from personal contact with men and women in the services in Alaska, California, Texas, Montana, North Carolina and other sites where we have camps and stations. I have seen their duty stations, their quarters, their living conditions and have talked with their dependents. We are dealing with immense sums of tax- payers' money, great numbers of human beings working under all kinds of condi- tions, and countless human situations and problems. We are fully convinced that to cope successfully with all that is involved in this total situation calls for increased at- tention to broad programs in support of the individual, and of the military service fam- ily. I have said on many previous occasions that we know that pay and material reward alone will never give us the kind of dedicated, professional military service people whom we need in this troubled era. It takes men to man the machines-in- telligent and courageous men. General Schriever placed emphasis, and properly, on the particularly heavy demands for techni- cally qualified personnel to develop, operate and maintain the unbelievably complex weapons systems of today and tomorrow. There is another breed, however, that we need to find and keep. If we find ourselves in a shooting situation with an enemy in the coming years, and I think of anyone who is shooting at me as an- enemy, whether he has been officially declared such or not-It is likely to be less than a nuclear exchange. This means bullets, high explosives, fired by men who are being fired at. We must have the weapons, and plenty of them, that we hope and pray we will never have to use. But we must also have that man, ready to go and fight under any conditions, and on short notice, the men who combine new- fashioned knowledge of the weapons he will have to use with the old-fashioned courage, sometimes known as guts, which have been Approved For Release 2005/04/21 : CIA-RDP66B00403R00040028,0008-8 A6144 Approved For Release 2005/04/21 : CIA-RDP66B00403R000400280008- CONGRESSIONAL RECORD- APPENDIX ctober 1 a trademark in this part of the world for a couple of hundred years and more. We in Defense know, and do not intend to forget, that without continued effort In the direc- tion of improved personnel programs, and without continued attention to the daily needs and requirements of those who serve this country in uniform, we would not be meeting our responsibilities. We are doing our best, therefore, and so are the military departments, to see to it that full attention is given to these prob- lems, and to their intelligent resolutions for today and tomorrow. Townsend Plan 30 Years Old EXTENSION OF REMARKS or HON. JOHN J. McFALL OF CALIFORNIA IN THE HOUSE OF REPRESENTATIVES Tuesday, October 1, 1963 Mr. McFALL. Mr. Speaker, Septem- ber 30 marked a milestone in our Na- tion's history. It was on that date 30 years ago that Dr. Francis Everett Townsend wrote a letter that launched the Townsend Plan. It appeared in the columns of the Long Beach, Calif., Press-Telegram. The Townsend campaign became an institution and as such it defined the na- ture of the social security problem. I wish to insert in the RECORD at this time the letter of the late Dr. Townsend which has had such tremendous social and economic effect: LONG BEACH, CALIF., September 30, 1933. To the EDrroR, Press-Telegram, Long Beach, Calif. DEAR SIR: If the human race is not to ret- rogress, two facts of essential importance must be recognized; the stimulus to individ- ual effort must be maintained by the cer- tainty of adequate monetary reward. If business is good at all times, we need not worry about the reward of Individual effort; and if money is plentiful, we need have no fears that business will become bad. Of late years it has become an accepted fact that because of man's inventiveness less and less productive effort Isgoing to be required to supply the needs of the race. This being the case, it Is just as necessary to make some disposal of our surplus workers as it is to dispose of our surplus wheat or corn or cotton. But we cannot kill off the surplus workers as we are doing with our hogs; nor sell them to the Chinese on time as we do our cotton. We must retire them from business activities andeliminate them from the field of competitive effort. What class should we eliminate, anti how should it be done? Wars have served in the past to hold down surplus population, but the last big war, in spite of the unprecedented slaughter, served only to increase produc- tion, while reducing the numbers of consumers. It is estimated that the population of age 60 and above In the United States is some- where between 9 and 12 millions. I sug- gest that the National Government retire all who reach that age on a monthly pension of $200 or more, on condition that they spend the money as they get it. This will insure an even distribution throughout the Na- tion of $2 or $3 billions of fresh-money-each month, thereby assuring a healthy and brisk state of business, comparable to that we en- joyed during wartimes. Where is the money to come from? More taxes? Certainly. We have nothing In this world we do not pay taxes to enjoy. But do not overlook the fact that we are already paying a large proportion of the amount re- quired for these pensions In the form of life Insurance policies, poor farina, aid societies, insane asylums, and prisons. The inmates of the last two mentioned institutions would undoubtedly be greatly lessened when it once became assured that old age meantsecurity from want and care. A sales tax sufficiently high to Insure the pensions at a figure adequate to maintain the business of the country in a healthy con- dition would be the easiest tax in the world to collect, for all would realize that the tax was a provision for their own future, as well as the assurance of good business now. Would not a sales tax of sufficient size to maintain a pension system of such magni- tude exhaust our taxability from other sources, I am asked? By no means-income and inheritance taxes would still remain to us, and would prove far more fertile sources of government Income than they are today. Property taxes could be greatly reduced and would not constitute a penalty upon Indus- try and enterprise. Our attitude toward government is wrong. We look upon government as something en- tirely foreign to ourselves; as something over which we have no control, and which we cannot expect to do us a great deal of good. We do not realize that It can do us infinite harm, except when we pay our taxes. But the fact is we must learnto expect and de- mand that the Central Government assume the duty of regulating business activity. When business begins to slow down and capital shows signs of timidity, stimulus must be provided by the National Govern- ment In the form of aCdltional capital. When times are good and begin to show signs of a speculative debauch such as we saw in 1929. the brakes must be applied through a reduction In tho circulation me- dium. This function of government could be easily established and maintained through the pension system for the aged. Sincerely, FKANCIS E. ToWNsxND. M.D. Proposed Public Defender Law EXTENSION OF REMARKS or HON. EDWARD V. LONG of MISSOURI IN THE SENATE OF THE UNITED STATES Tuesday, October- 1, 1963 Mr. LONG of Missouri. Mr. President, several months ago, I placed in the Ap- pendix an excellent editorial from the Southeast Missourian urging the enact- ment of a public defender law. Since that time, a bill has been reported by the Judiciary Committee and passed by the Senate. Recently, the Southeast Mis- sourian published another editorial con- cerning the need for such legislation. Mr. President, I ask unanimous con- sent that this second editorial be printed in the Appendix. There being no objection, the editorial was ordered to be printed in the RECORD. as follows: PUBLIC D]CFENDERS On three occasions the House of Repre- sentatives has rejected bills which would establish a public defender system to work at the opposite pole from the UB. attorney in criminal cases. Boon it will have another bill providing legal aid through a system of paid public defenders for those charged with a crime in the Federal courts, Missouri :3enator EDWARD V. LONG is one of those supporting the measure. He joined with other :3enatora in sponsoring legislation establishing public defenders. The measure has passed the Senate. Under the Senate bill, defendants in crimi- nal cases who do not have necessary funds or credit to employ an attorney will be given the services of one. This is done now, but the attorneys are court appointed and serve without pay. Under the public defender bill passed by the Senate four avenues provide for legal services for defendants: The court can appoint a private attorney and pay Min not to exceed $15 an hour, plus reasonable expenses. Employ and pay a Government attorney as a public defender on a full-time basis. Provide payment to local and State bar associations; and legal aid societies which would provide attorneys for the indigent. A combination of the three. Of the four, the second appears to us the most pracl;ical. If the Government can maintain tr. staff of attorneys to prosecute criminal cL.ses, it certainly should provide another stiff to defend the indigent. Presently, fundless defendants are assigned an attorney by the court. Frequently only a perfunctory defense is given after a brief consultation between the two, with a plea of guilty almost invariably entered. Attorneys with their own practice most often have all they can do to take care of their regular clients and while it is consid- ered an obligation of the profession to aid indigent defendants, it Is evident not as much attention Is going to be given to a penniless, unknown client as one who pays. It Is for this reason that a good many attorneys and professional legal societies have urged a public defender system. They feel those without means should be af- forded equal protection under the law as those who can pay. With this we agree and it is for this reason we believe the House should pass this fourth attempt tc put a public defender system in operation. The Kernedy Administration Wastes Our Children's Tax Dollars EXTENSION OF REMARKS or HON. VICTOR A. KNOX Or MICHIGAN IN THE HOUSE OF REPRESENTATIVES - Tuesday, October 1, 1963 Mr. KNOX. Mr. Speaker, the sole and only way to finance Government spending is by taxes imposed on the peo- ple. If we are paying our own way, cur- rent tax(s pay for current spending, if we are deficit financing, today's spend- ing increases and is paid for by tomor- row's taxes. But regardless of whether we pay our way or borrow our way, taxes inescapably must be collected from the people to pay the Government's bills and debts. There is no way a nation can in- terminably spend without taxing some- body sometime; and the longer the day of settlement is deferred, the greater is the waste of the tax dollars because of Interest on the debt. Last seek the House of Representa- tives passed an $11 billion tax cut bill at a time when the Federal Government is Approved For Release 2005/04/21 : CIA-RDP66B00403R000400280008-8