Professional Documents
Culture Documents
BLANTON, and Mr. DITTER were appointed managers on the 3973) making appropriations for the government of the
part of the House. District of Columbia and other activities chargeable in whole
The message further announced that the House had dis- or in part against the revenues of such District for the fiscal
agreed to the amendment of the Senate to the bill (H. R. year ending June 30, 1936, and for other purposes, with
6021) to provide additional home-mortgage relief, to amend Senate amendments thereto, disagree to the Senate amend-
the Federal Home Loan Bank Act, the Home Owners' Loan ments, and agree to the conference asked by the Senate.
Act of 1933, and the National Housing Act, and for other The SPEAKER. Is there objection to the request of the
purposes; agreed to the conference asked by the Senate on gentleman from Missouri?
the disagreeing votes of the two Houses thereon; and that There was no objection.
Mr. STEAGALL,Mr. GOLDSBOROUGH, Mr. REILLY, Mr. HOLLISTER, The Chair appointed the following conferees: Mr. CANNON
and Mr. WOLCOTT were,appointed
were.appointed managers on the part of of Missouri, Mr. BLANTON, and Mr. DITTER.
the House at the conference. PROTECTING AND PRESERVING PERMANENT SEAT OF GOVERNMENT AS
The message also announced that the House had disagreed CONTEMPLATED BY THE CONSTITUTION OF THE UNITED STATES
to the amendments of the Senate to the b1l1 (H. R. 6223) Mr. BLANTON. Mr. Speaker, I ask unanimous consent
making appropriations for the Department of the Interior for to proceed for one-half minute.
the fiscal year ending June 30, 1936, and for other purposes; The SPEAKER. Is there objection to the request of the
agreed to the conference asked by the Senate on the dis- gentleman from Texas?
agreeing votes of the two Houses thereon; and that Mr. There was no objection.
TAYLOR of Colorado, Mr. JACOBSEN, Mr. JOHNSON of Okla- Mr. BLANTON. Mr. Speaker, I am introducing a House
homa, Mr. ZIONCHECK, Mr. SCRUGHAM, Mr. LAMBERTSON, and Joint resolution to create a new standing select committee
Mr. WIGGLESWORTH were appointed managers on the part of of the Senate and House, and I would like to have the Mem-
the House at the conference. bers read this resolution because I believe it will appeal to
RECESS everyone of them. Many Members do read the RECORD.
., Mr. ROBINSON. I move that the Senate stand in recess Therefore I ask unanimous consent to print in the RECORD
until 12 o'clock noon tomorrow. a copy of the resolution in connection with an extension of
The motion was agreed to; and (at 1 o'clock and 37 min- my remarks.
utes p. m.) the Senate took a recess until tomorrow, Thurs- The SPEAKER. Is there objection to the request of the
day, April 18, 1935, at 12 o'clock meridian. gentleman from Texas?
There was no objection.
Mr. BLANTON. Mr. Speaker, by unanimous consent from
HOUSE OF REPRESENTATIVES the House I print in the RECORD a COpy of my new House
WEDNESDAY, APRIL 17, 1935 Joint resolution to create a special select standing joint com-
mittee so that Members would have access to it in the
The House met at 12 o'clock noon. RECORD.
The Chaplain, Rev. James Shera Montgomery, D. D., This joint committee is to protect and preserve the seat of
offered the following prayer: government as contemplated by the Constitution of the
Thy mercy, 0 Lord, is not confined to the heavens; it United States, and to repeal the archaic and abandoned pro-
reaches over the vanished past, the undimmed yesterdays, visions in earlier appropriation bills and the law generally
and abideth forever. At the inner shrine of the sanctuary known as the "50-50" and the "60-40" providing annual
of the soul we breathe our tributes of praise and thanks- Federal contributions out of the Public Treasury to the
giving. Thou art the rose of Sharon and the fiower of eter- District of Columbia civic expenses.
nal hope; be Thou to us the fountain whence fiow the sweet- Unfortunately, during the last 50 years; the burden of
ening streams, the sun, out of which pours the immortal fighting the selfish and aggressive demands of the Washing-
radiance, and the giver of life that is life indeed. Persuade ton people, in their constant and untiring efforts to get large
us that the hour of our worth to the state and the social order contributions from the United States, has fallen upon the
is the hour of our self-forgetfulness. Assist us mercifully shoulders of just a few Members of Congress.
with Thy help, 0 Lord God of our salvation, that we may During such 50 years the newspapers have taught Mem-
enter with joy upon the meditation of those Inightymighty acts bers of Congress that any Senator or Representative who
whereby Thou hast given unto us life and immortality. would make a fight for the demands made by Washington
Through Jesus Christ our Lord. Amen. people would have his picture and eulogy carried on the
The Journal of the proceedings of yesterday was read and front page, praising and extolling his many virtues, followed
approved. by repeated favorable comments from the horde of special-
MESSAGE FROM THE SENATE feature writers the Washington newspapers employ to re-
ward their' friends and to punish those who do not obey
A message from the Senate, by Mr. Horne, its enrolling commands; and that any Senator or Representative who
clerk, announced that the Senate had passed with amend- dared to go againSt the wishes of the Washington newspa-
ments, in which the concurrence of the House is requested, pers and to disobey their commands would be crucified and
a bill of the House of the following title: pilloried by the Washington newspapers and by them be
H. R. 6223. An act making appropriations for the Depart- hounded, harassed, misrepresented, with none of their im-
ment of the Interior for the fiscal year ending June 30, 1936, portant work ever mentioned except in an incorrect and de-
and for other purposes. rogatory manner. Such abuse and attacks have made
The message also announced that the Senate insists upon Members seek the path of least resistance and hesitate to
its amendments to the foregoing bill, requests a conference actively oppose the newspapers and their demands.
with the House thereon, and appoints Mr. HAYDEN, Mr. Mc- But it has been absolutely necessary that some Member
KELLAR, Mr. THOMAS of Oklahoma, Mr. NYE, and Mr. STEIWER should actively and vigorously from the fioor oppose the an-
to be the conferees on the part of the Senate. nually recurring, selfish, unjust, inequitable, wasteful, ex-
The message also announced that the Senate bJtd passed travagant, and arrogant demands upon the Federal Treas-
a bill of the following title, in which the concurrence of the ury, made by the people of Washington and the Washington
House is requested: newspapers.
S. 1629. An act to amend the Interstate Commerce Act, as When I came here in 1917 I then learned of the unjust
amended, by providing for the regulation of the transporta- and infamous treatment the Washington newspapers had
tion of passengers and p:operty by motor carriers operating accorded Han.
Hon. Ben Johnson, of Kentucky, and the vicious
in interstate or foreign commerce, and for other purposes. attacks they had made upon him while he was Chairman
DISTRICT OF COLUMBIA APPROPRIATION BILL, 1936 of the Committee on the District of Columbia, and of the
Mr. CANNON of Missouri. Mr. Speaker, I ask unanimous attacks Washington newspapers had made on every other
consent to take from the Speaker's table the bill (~ R. Member of Congress preceding Ben's service as chairman
,;
HeinOnline -- 79 Cong. Rec. 5850 1935
1935 CONGRESSIONAL RECORD-HOUSE 5851
One cause for the doubt expressed by many restrictionists In desire to immigrate. Of this number, 401,564 were denied visas
regard to the leanings of the Secretary on this question Is the fact prinCipally under the public-charge provision of the law. Although
that total deportations decreased from 19,865 In 1933 to 8,879 It is known throughout the world that the unemployment problem
In 1934. Is very serious In this country, 203,314 aliens have requested that
Statements from trustworthy sources have been frequently made their names be kept upon the waiting lists, so that they can enter
that there are 100 aUen-mlnded organizations In this country the United States for residence as soon as the law permits. In
which are opposed to restriction. It Is impossible to quote from spite of this administrative exclusion, only 549, or 1.1 percent of
the platforms and statements of these various organizations or near relatives whose admittance has been requested by petitions,
to show how they are actively represented In Washington to were refused under the public-charge provision.
weaken our immigration and deportation laws. The greatest registry demand for immigration visas comes from
One leading antirestrlctionlst Congressman expressed In an ad- Germany, Austria, Palestine, Poland, Rumania, Russia, Spain,
dress at one of their conferences the new strategy In the following Turkey, and Yugoslavia, with very little demand from Great Britain,
language: "From my experiences, 1 have discovered that the best Northern Ireland, and the Irish Free State.
attack lies In the relatives' relief proposals." The greatest demand for Immigration visas from nonquota coun-
THE HARDSHIP CASES tries came from Qanada, while the greatest demand for Immigra-
Alt,hough much IS being said and printed In reference to the tion visas In quota countries came from Germany. Great Britain
alleged separation of fammes, the facts do not show any basis for and Northern Ireland furnished the greatest demand for nonimmi-
these charges. John Farr Simmons, Chief, Visa Division, Depart- grant visas.
ment of State, In a release dated April 30, 1934, had this to say: In spite of the fact that 90 percent of the refusais by the consuls
"Strict as the Interpretation of the public-charge clause has to grant visas were based upon the public-charge clause, strong
admittedly been, every attempt has been made to avoid as far as efforts are being made greatly to restrict the authority. of the
POSSible the separation of Immediate relatives and to preserve the consuls In the administration of this section.
family unit. For example, a recent report from Berlin Indicates One of the first official acts of Secretary Perkins was to direct
that during the period October I, 1930, to December 31, 1933, of her SoliCitor Wyzanskl to request the Attorney General for an
more than 1,700 section 4 (a) relative applicants, visas were opinion as to whether she had the power to accept public-charge
refused by our consulate general there, on public-charge grounds, bonds In advance, or after the refusal, of applications for Immi-
to only 12. No such case Is definitely closed and all these cases gration visas. The Attorney General ruled that she could accept
may be reopened for the consideration of new material evidence, such public-charge bonds, and that, after such acceptance, con-
It Is believed that approximately the same low percentage of re- sular offices were precluded from refusing the Immigration visas
fusals exists In the cases of the Immediate fammes of foreign on public-charge grounds.
residents of this country." BONDS THAT DO NOT BIND
Another favorite appeal to the sympathy IS In the case of It must be adrn1tted that the Secretary has not put this ruling
refugees. In the same release just quoted, Mr. Simmons says: Into effect, but It Is not known when she will do so. It Is cer-
"Another class of applicants deserving the most humane treat- tainly true that the acceptance of these bonds on a large scale
ment permissible under our laws as now Interpreted Is what has would destroy the restrictive features of section 3 and greatly
been often described as the refugee class. By this I refer to per- handicap our consuls In their effort to exclude pioneer immi-
sons who are obliged to leave or have left the country of their grants. We have the word of Commissioner MacCormack that
regular residence and who seek to escape from conditions In that these bonds are practically worthless. In his report to the Secre-
country by coming to the United States either directly or through tary of Labor for the year ending June 30, 1933, he said, "Many
third countries. 1'here have been many recent visa applicants of aliens arrested under warrant are released upon bonds furnished
this type and the State Department has Instructed Its consuls to by surety companies, and In the past year numerous of these
give them the most humane and favorable treatment possible companies have been thrown Into the hands of the receivers be-
under the law." cause of financial difficulties. The Bureau has submitted many
In regard to the hardship cases resulting from deportation, the claims to the State officials liquidating these corporations under
Commissioner of Immigration, Mr. MacCormack, admitted to me court orders, but it Is doubtful that much of the penalties on
before the Immigration Committee that not more than 5 percent breached bonds will be recovered."
of all deportation cases could be properly classified as hardship Section 3 of the bill H. R. 5630, Introduced by Chairman DICK-
cases. When It Is considered that this percentage took Into consid- STEIN, would permit a review of and appeal from the refusal of
eration five-hundred-and-some-odd carry-overs from the previous consular offices to grant Immigration visas. As stated by Mr. Carr,
year, It can be conservatively stated that not more than 3 percent Assistant Secretary of State, "Such a bill, If enacted, would be
are bona fide hardship cases. very expensive and would set up In this country a special aliens'
We have In this country today some 10,000,000 unemployed. We court and build up a group of lawyers practicing before It."
have before the Congress at the tIme of writing a b11l to appro- However, It must be remembered that this administrative re-
priate nearly $5,000,000,000 to furnish employment to 3,500,000 duction IS admittedly temporary,' to last only during the acute
people. And yet the facts show that there are 3,500,000 aliens 11Ie- stages of the depression. As Mr. Simmons said In his press release
gaily and unlawfully In our midst. These aUens are either on of April 30, 1934, " With the Improvement in economic conditions,
relief or are holding jobs tllat our own citizens could fill. Recently which IS already setting In, the significance of the public-charge
an official In the F. E. R. A. advised me that In Douglas, AriZ., out clause will proportionately decrease." In the same release he also
of 553 fammes on reUef, 400 of such fammes were aliens. An said, "As regards quota Immigration, however, we find a very inter-
Important official of the city of Baltimore recently Informed me esting recent change. The total of visas Issued under the quotas
that hundreds of aliens were on relief In that city. Accurate fig- Is now 53 percent higher than a year ago, although we must re-
ures have shown that there are thousands of Mexican aliens in member that we are making our comparison with an all-time low
California and Texas who are on public relief. ebb of Immigration Into the United States. When we take cer-
CHARITY BEGINS AT HOME tain Individual quotas Into consideration, however, we find Inter-
I am advised by the Federal Emergency Relief Administration esting facts. The Issue of visas under the German quota Is now
that according to their estimate 600,000 aliens are receiving relief proceeding at three times the rate for 1932-33. Last year 1,241
at the present time. My own opinion Is that this estimate Is too visas were issued under the German quota of 25,957; 2,395 visas
conservative and that a careful investigation w11l disclose that In have already been Issued for the first 8 months of the current
excess of a m11lion aliens are receiving relief. However, if this fiscal year, or 300 visas per month."
figure is correct, It shows that 6,400,000 allens are deriving their THE THREATENING FLO')D
livelihood from employment In this country that would otherwise Last year's Immigration statistics show an Increase of 50 percent
go to American citizens. In quota Immigration-that Is, new-seed Immlgrants--an 8-percent
It has been well said that charity should begin at home and that Increase In total aliens admitted and a 60-percent decrease In alien
self-preservation is the highest law of Nature. If this Is true, why deportations, as weI! as a 50-percent Increase in deserting seamen,
do not we exclude all new-seed Immigrants and deport the ones allen stow-aways, and the like.
who are unlawfully and 11Iegally in our midst? These facts show the necessity of permanently redUCing the
H. R. 5921, which I Introduced, will accomplish these purposes. quota and strengthening the deportation laws. The strict Inter-
It will further restrict immigration by reducing the existing pretation of the public-charge clause Is now being relaxed, and as
quotas 60 percent and apply them to countries of this hemisphere, conditions Improve, literally thousands of aliens will enter under
take care of law-abiding aged parents and near relatives of foreign the quota. In view of the condition of our country and the diffi-
born In this country by reserving the quotas for them, and deport culty we will experience during the next generation In furnishing
aliens engaged In smuggling and bootlegging aliens Into this employment to the natural Increase of our population, the admis-
country. It will also deport gangsters, raclreteers, and Communists. sion of 150,000 aliens a year will be more hurtful than the annual
The antirestrlctlonlsts argue that Immigration has decreased so admission of 500,000 In the years that are· gone.
much that it Is not necessary to reduce the quotas. It Is true In addition to this, there Is a serious threat that millions of
that on September 8, 1930, the White House Issued a press release aliens will enter from those countries that are not now subject to
pOinting out that the public-charge clause had a speCial signifi- the quota and that the quota limitation from quota countries will
cance In times of wide-spread unemployment, and as a result of be more than offfJet by the Influx from nonquota countries.
the strict Interpretation of the public-charge provision, from Sep- Commissioner MacCormack recognized this danger when he said,
tember 8, 1930, until recently the number of aliens entering under In his statement filed before the House Appropriations Committee,
the quota dwindled to a low level. that, "Moreover, there 1.s reason to believe that many thousands
By reason of the strict enforcement of this section during the 45 of aliens now resident In Mexico and Canada will attempt whole-
months from October I, 1930, to June 30, 1934, more than 750,000 sale surreptitious entry Into this country, to the detriment of our
aliens who might have been admitted during normal times were own workmen, when· Industr1al conditions again approach normal;
prevented from entering the United States to Increase unemploy- and to control that attempted Infiux an Increase In personnel may
ment. In the 4 fiscal years 1931-34, 594,776 aliens expressed their be absolutely necessary."
cause of sickness or disability, and eliminating those under VIII. Present annual expenditures ___ :. __________ _ 3,875,000,000
18 years of age, to whom the bill does not apply, would be ------
IX. Annual net increase in cost _______________ _ 4,060,000,000
$8,235,000,000. Deducting from this the estimated decrease
Cost jor 14,021,000 unemployed
in the cost of unemployment insurance on 'account of the
reemployment of workers following the establishment of a is On a. basis of 14,021.000 unemployed in 1934. the estimated cost
as follows:
social-insurance program, $6,090,000,000, and adding to it Average number of persons unemployed in 1934,_
the cost of old-age pensiOns, sickness, disability, accident, all ages _____________________________________
14,021,000
and maternity insurance,' and deducting present annual ex-
penditures for relief amounting to $3,875,000,000, we would Deductions:
have a net annual increase for the Federal Government 1. Estimated number of unemployed under
18 years of age (basis 1930 census) _____ _ 650,000
imposed by the provisions of the bill amounting to 2. Estimated number of unemployed who w11l
$4,060,000,000. replace workers 65 years of age and over
If the number of unemployed be equal to the average num- retiring on old-age pension (see above) _ 2,250,000
ber estimated as unemployed in 1934, as 14,021,000, then the 3. Estimated number unemployed because of
sickness or disab1l1ty (see above) _______ 250.000
annual net increase in cost, after deducting present expendi- Balance of \UUemployedL____________________ 10,971.000
tures for relief and estimating the reemployment which ======
Industry
Wage Salary Not Not Not
i- Wage Salary classi· Wage Salary
earner~ earners cla.,;
fled
.. i· earners earners classi-
fled earners earners elMsl-
fled
-
----
-----
----
- --
---------
--- - '----'------
----
-1 -!
-I --
-------
----
-- - -
----
---
--------
---
Al!Ticulture_______________________________________________________________________________
AJ!Ticulture ..•••.•.•.•.•.•.•.•.....•...•.•.•••••••••.....•••.•••.•...•••••.••••• ___ ._ •. __ • 1,847 ________ ________ • $6(8 ________
_______ . ________ _________________
1,196.9 ____________ . ___ ___
Mines and qu!lrries_______________________________________________________________________ 231 18 ________ 909 $2,210 ________ 210.0 __________
39.8 ______
==
_____ .__
________
== ==1"4:564.9
________
________
1,105
1,285
__________ __________
______________
_______ .__
__________
. __ .__
__________
87.3
1,119.2
5;709.2 5.672.3
. _____ •• _. ________ . __ . ____ • _________________ • ___ •• __ • ______ ._ •• _._. ______ • _______ • ____ • _____ ._._. _______ • ___________ $15, 996, 400, 000
Unemployed entrepreneurs (110 at annual average loss, $073) •••• _•• ____ • _______ • _____ •• __ ••• _____ •• _____ •• ___ • ____ • ______ • _________ • __ • ___ • ____ • __ • _______ • 126.200.000
Total. ......
TotaL __________ •• _______
__ . _••• • ___ • ___ • ______ •• _. _.
____________ • _____.• ___ •• ______ ••• ___ • ____ • ______ .--- --- ••
___ . _. _. __ •••. ----- ._ •• ___ • _________ ._. _____ • ___
--- --:.... ________
• ____ •• ___________ • _ 16, 072, 600, 000
_________
Average loss .. ______ •• ______ ._ .... __ • ___ • _______ .. __ .. __ ..... _____ ... ___ • __ • __ •• __ • __ •••• _••• _••• __ .... _.. ______________ .. _____ •• _.. ___ •••• _••• ___ ._
.... 1, 140
'73d Cong., 2d sess., S. Doc. No. 124, National Income, 1929-32. ']929 rate; 1932 rate only $352.
'1929
COST OF OLD-AGE PENSIONS VI. (a) Balance of married persons among nongainfully
occupied «d) + (e» ________________________ 1,237,000
The following tables show the number of people eligible (b) Balance of males (1,422,000-104,000) (IV
for old-age pensions and the estimated cost: (b) -V (g» _______________________________ 1,318,000
I. (a) Number
census) of persons aged 65 and over (1930 6,634,000
____________________________________ (c) Balance of females (3,078,000-673,000) (IV-
V (a» _____________________________________ 2,405,000
(b) Estimated number of persons aged 65 and over (d) MarriedmaleSinVI(b)} }
In 1934 (President's Committee on Economic
Security Report, p. 24) ______________________ 7,500,000 (e) M~[;:~ ::~e; !~:~~~L~~~~~. =1,237,O()0 above{ :~~: ggg
II. (a) Number of persons aged 65 and over, gainfully
occupied (1930) _____________________________ 2,205,000
(b) Estimated number of persons aged 65 and over Of the 4,500,000 in IV (b), these have been accounted
who were gainfully occupied in 1934 (aver- for:
age) _______________________________________ 2,500,000 (1) Wives, 65 and over, of gainfully occupied males
NOTE.-II (b) to II (a) in same ratiO as (assumed not gainfUlly occupied) (V (e» __ _ . 673,OOa
I (b) to I (a). (2) Husbands, 65 and over, of gainfully occupied
III. (a) Estimated number of gainfully occupied per- females (assumed not gainfully occupied)
(V (g» ___________________________________ _
sons who would be eligible
ellglble to retire upon en- 104,000
actment of the workers' bllL _______________ 2,250,000 (3) Balance nongalnfully occupied males 65 and
NOTE.-10 percent allowance for entrepre- over, married (VI (d» ____________________ _ 802,000
neurs of substantial means (U. S. Census esti- (4) Balance nongalnfully occupied females 65 and
over, married (VI (e» _____________________ _ 435,'000
mate, letter to Committee, IPA, Dec. 3, 1934).
IV. (a) Nongalnfully occupied persons aged 65 and Not yet accounted for:
over (I (b)-II (b» _________________________ 5,000,000 (5) Nongainfully occupied widows, widowers, di-
(b) Estimated number eligible
ellglble for old-age pensions vorced, single persons, aged 65 and over _____ _ 2,486,000
(males, 1,422,000; females, 3,078,000) ________ 4,500,000 ANNUAL COST OF OLD-AGE PENSIONS
. NOTE.-10 percent allowance for those of A. Number of gainfully occupied workers aged 65
substantial means. and over, eligible for old-age pensions at an-
V. (a) Number of gainfully occupied persons in III (a) nual average rate of $1,200 per annum ($1,199
(2,250,000) plus husbands or wives aged 65 average Report)
annual ___________________________
rate, 1932, 1929-32 National_
and over (777,000, or V (e) + V (g» or (V Income
(b)+V (c)+V (e)+V (g»' ________________ 3,027,000 2,250,000
B. Number of married couples nongainfully occu-
(b) Gainfully occupied males pied. husband or both 65 or over ___________ _
(less entrepreneurs) ______ 1,950,000 802,000
Annual penSion, $676 ($10 plus $3 per week).
(c) Gainfully occupied females__ 300,000 C. Number of unmarried persons 65 or over ______ _
(d) Gainfully occupied males, 2,486,000
married __________________ 1,242,000 Annual
Cost pension, $520 ($10 per week).
of A _______________________________________ _
(e) Gainfully occupied males, Cost ofB _______________________________________ _ $2,700,000,000
married, whose wives are Cost of C _______________________________________ _ 542.000,000
65 and over (assumed not 1,293,000.000
gainfully occupied) _______ 673,000 Total ______________________________________ 4,535,000,000
(f) Gainfully occupied females,
married _________________ _ 104,000 COST OF SICKNESS, ACCIDENT, AND DISABILITY INSUR-
(g) Gainfully occupied females, ANCE
married, whose husbands Class C, 1930 Unemployment Census (persons out
are 65 and over (assumed of a job and unable to work on account of sick-
not gainfully occupied) __ _ 104,000 ness or disability) _____________________________ _ 172.661
1 All figures in
In V and VI are estimated from ratios derived from NOTE.-Would assume 250,000 since census fig-
1930 Census. ures are out of line with other experience.
LXXIX--371
~
~
Number of births per annum to gainfully occupied 1934 (estimate) _______________________________ _ .603
married women (on above basis) _____________ _ 332,000 .600
Probable number of blrths _____________________ _ 150,000 Total insurance benefits payable (annually)
Annual cost for 16-week benefit (l50,OCO(150,OCO X $369) under workers' bill (p. 585, I+IV + V + VI) _____ $18,374,000,000
$18,374, DOD, 000
($369 =1810. X $1,200) . __________________________ _
$55,000,000 Present expendItures for rellef, old age, etc______ 3,875,000,000
3,875, ODD, 000
NOTE.-$l,199 average annual wage, 1932, National Income Re- Increase In purchasIng power of lower Income
port, 1929-32. classes upon passage of workers' bIlL_________ 14,499,000,000
PRESENT COST OF UNEMPLOYMENT RELIEV Increase In annual demand for consumers' goods
(100 percent aSsumed) (see BrookIngs Insti-
It should be made clear that the cost of the Lundeen bill tute, AmerIca's Capacity to Consume, p. 84) __ 14,499,000,000
will not be over and above present expenditures for relief, Increase In annual wages and salarIes to meet In-
but will replace these expenditures. At the present time, creased demand for goods (decrease in cost of
unemployment Insurance) (60 percent ot
according to Dr. Gilman's statement; the costs of unemploy- $12,590,000,000) (ratio of salaries and wages to
ment relief are as follows: lucome produced, 1934, above)________________ 8,699,000,000
I. Federal Government (source of statistics: Gen- JulnURI net Increase In cost____________________ 5,800,000,000
eral Budget Summary, Treasury Department, SOURCES OF FUNDS
estimated expenditures for year ending June
3D, 1935, schedule 3):
30, Now I wish to answer the question often asked: "Where
(1) Federal Emergency Rellet Administra-_
tion ______________________________ will you get the money for this program? ..
$1,733,208,700 It has been pointed out that an important difference be-
(2) Clvll Works Admlnlstratlon __________ _ 13,842,100
(3) Emergency conservatlon _____________ _ 402,363,000 tween H. R. 2827, the Lundeen bill, and other proposals is
(4) Relief of unemployment _____________ _ 100,000,000 in the source of funds. Other proposals-including the
Publlc works: Doughton bill-depend on the building up of reserves in ad-
(3) Loans and grants to munlclpalltles ___ _ 166.300,000 vance of payment of benefits, these reserves to be secured by
(5) PubliC hlghways ____________________ _ 428.600,000
a tax on pay rolls. Several serious objections are made to
Total
acterexpenditures of a relief char-_
___________________________ this method. In an article in the Annalist, published by the
2,844,313,800 New York Times on February 22, 1935, by Elgin Groseclose,
n. State and city (basis: Federal Emergency Re-
llef Administration reports) _______________ _ 400,000,000 professor of economics, University of Oklahoma, under the
title, "The Chimera of Unemployment Reserves Under the
Total unemployment relleL_______________ 3,250,000,000 American Money System", attention is called to the pro-
PRESENT COST OF OLD-AGE RELIEF visions in H. R. 4120 in these words:
The Wagner blll, as Introduced in Congress, sets up In the Fed-
Present expenditures by National, state, and local· gov- eral Treasury an .. unemployment trust fund ", in which Is to be
ernment bodies for old-age relief may also be deducted from held all moneys received undel' the provisIons of the act, and di-
the additional cost of the Lundeen bill. Present old-age rects the Secretary of the Treasury to Invest these moneys, except
such amount as Is now required to meet current withdrawals, In a
expenditures are as follows: defined category of obllgatlons of the UnIted States or obllgatlons
1. Federal Government to veterans and widows (re- guaranteed as to both princIpal and interest by the United States.
port of Administrator of Veterans' Affairs, $235,000,000
1933) ________________________________________ The Annalist article summarizes the objections to these
2. State old-age assistance (President's Committee
on EconomiC Security) _______________________ 43,000,000
reserves for unemployment insurance as follows:
3. Industrial and trade-union pensions (President's (1) FInanCial reserves can be effective only in cases where con-
Committee on Economic Security) _____________ 100, ODD, 000 tingencies can be calculated and determined by actuarIal methods
4. All other (rough estImate) _____________________ 50,
50,000,000
DOD, 000 and where these contingencies arise In sUfficient regularity to per-
mit the arrangement of reserves in accordance therewIth. (2)
Total _______________________________________ 428,000,000 The incidence of depressiOns are Irregular and unpredictable, and
hence defy actuarial procedure. (3) Purchasing power cannot be
PRESENT COST OF SICKNESS, DISABILITY, AND ACCIDENTS stored up en masse under our money system, whIch is a system
of debt, rather than metall1c circulation. (4) The attempt to
The National Safety Council estimates for 1932 that wa'ge create unemployment reserve will intensify booms. (5) Unem-
loss from occupational disabilities was $370,000,000. Com- ployment reserves are incapable of mobilization when needed and
pensation for such loss is estimated as $200,000,000. any attempt to moblllze them w1l1 only result In further intensifi-
catIon of depressions.
TOTAL PRESENT ANNUAL EXPENDITURES FOR RELIEF
Dr. Gilman's estimate of the total present cost of relief for Testimony before the Committee on Labor on the Lundeen
unemployment, old age, and sickness at the present time is bill (H. R. 2827) brought out the further objection that a
$3,875,000,000. This is based on the tables just presented. tax on pay rolls is a tax on cost of production which is
passed on to the consumer in higher prices to all consumers
REDUCTION IN COST OF WORKERS' BILL FOLLOWING PASSAGE and to workers in lower wages as well as in higher prices
The estimates just given of the cost of the workers' bill to them as consumers. Thus it tends to reduce rather than
represent the cost for the first year. The follOWing tables to expand purchasing power, caUSing in itself recurrent in-
show the estimated decreases in the cost following enact- dustrial depression which arises out of the failure of con-
Income classes-Continued.
classes-ContiQued. Percent Gross estate_ •• ______ • ____________ _
$500,000 under $1,000,000 .••••• ,__•••••
.___ $SM, 405, 000
$SM,405,OOO 20 $224,001,000 Gross estate ••••••••••••••••••••••• $2, 830, 388, 000
$5,000,000._.
$1,000,000 under $5,000,000 __ ••• ___ 2,119,926,000
2, 119,926,000 529,981,000 Tax
Tax paid ____________ •• __ • ___ • ____ _ $3,554,270,000 OSB, OOl
$2, 060, 9SB,
$5,000,000 and
and over
•.•••••••••
over .•••••••••••••••••
.• _•••• ___ ._______ 8,810,359,000
25 paid ..•
Percent to
__ •.•••••••••••••••.•••
to gross_.'
gross_.·.•••••••••••••••••
__ • ____________ _
$41, 959, 000
$4l, $23,674, 000 415, oao
$61, 415.
$5,000,000 8, 810, 359, 000 25 052, 589, 000 Percent 1.1 0.8 2.9
1 -----1---
1----------·1------ Net estate_ •• ______ • _____________ _
ToteL.
ToteL ___________________________ • _____ ••• _•• ___ • _____ •• __ _
.•..•••••••••••••••••••••••••••••••••••••••••••••••••• 2, 615, 273, 000
Net
Tax estate ••••••••••••••••••••••
paid ____ •• ______________ • __ • _. __ $1, 992, 503, 000 $1, 423, 437, 000 f828, 302, 000
Tax collected _____________________________ •• __ •• __ ._. __ • _____ •• Tax paid._ .••••••••• _ •••••••••••••
Percent to net ______ • ____________ _ $41, 959, 000 $23, 674, 000 $61.
$61, 415, 000
Tax collected.••••••••••••••••••••••••••••••••••••••••••••••••• I, 184, 000, 000 Percent to net. •••••••••••••• _•••. 2.1 1.7 7.4
Additional returns
Additional returns •••••••••••••••••••••••••••••••••••••••••
____________________ ••• __ •• _.___ ___________ 1, 431,
1, 431, 273,000
273,000
REVENUE AVAILABLE
Returns of corporations submitting balance sheets.
1928 (all returns) : 1 Average 25 Average
AverAge 50 Average 75
Tax-exempt securities ______________________ $10, 116, 160,404 percent percent percenl
Surplus ____ . _______________________________ 52.069,292,140
____________________________________
Net surplus (after deduction ot defiCit) ______ 47.156, 183,422
Gross estate:
1928. __ •• ________ • ____________ •
TAX INCOME, 1932 1928 ...••••••••••••••••••••
1932 ______________ • __________ _•••_ $888,567,000 $1,777,135,000 $2,665, 701, 000
1932_ •.••.••• _ •••• , •.•••••..•• 707,597,000 1,415,194,000 2, 122, 791, 000
The following table shows the available revenue from indi- 1933...••••••••••••••
1933 ___ •• __ e ' __________ • • • ____ •
_•••• , _. _. 515, 239,000 1,030, 478, 000 1,545,717,000
1,545.717,000
vidual incomes for 1932: Net1928
estate:
1928.
_____ • ____________ •• _. __ • __
___ ••••••••••• ""'" • _____ •• ___ 498, 126, 000 W6, 252, 000
996,252,000 1,494,378,000
1932 ______ c ______________
1932 __ .•••
1933 __ • __ • c____________________
•••••••••••• _••••• _._ 365,859,000
355,859,000 711, 718, 000
711,718,000 1,067,577,000
Totel net In· roto
TIlX rate Revenue 1933. _••••• __ •••• _••••• _••••• __ 207, 075, 000 407, 150, 000 621, 220, 000
como reported available
CompariSon 01 American and European income·tax
income-tax rates
I.INDIVIDUAL RETURNS [Conversion units: 1 pound=$4.86; France, 1 franc=$0.0392;
Germany, 1 mark = $0.2382]
Income classes:
$5,000-$10,000... _•• _______ • ______ • __ _ $1,677,039,000
Percent
$5,000-$10,000 ....••••..•••••••••••••• 16 $268,326,000
$10,000-$15,000_ ••.•••••••••••••
$10,000-$15,000_ ••. __________ • _______ _•••••_ 595,573,000 22 131, 026, 000 Percent of tllX to net income
$16,000-$29.000 .•••• ______________
$16,000-$29.000 .•••••••••••••• • __ _
_••••••• 329, 512, 000 24 79,083,000
$29,000-$25,000 .•• _. _______
$29,000-$25,000.•••••• _•••••• ___•••••
• _____•••
••• 235,312,000 30 70,594,000
$25,OIlO-$50,OOO. ____ • ________ e . ___ • __ _
$25,OIlO-$50,OOO•••••••••••••••••••••••
$50,000-$100,000. ____________________
629,638,000 35 220,373,000 United
$50,000-$100,000._ ••••••••••••••••••.•_ 303, 296, 000 40 157, 282, 000 States Britain France Germany
$100,000-$250,000 .•
$100,000-$250,000 .••_______ •• __ ._. __·'•••
_._ •••••••••••• __ _ 216, n25, 000
216. 45 97,481,000
$250,000-$500,000_. __
$200,000-$500,000_. _____ • _____ • _____ ._
._ •••••••••••••••
$500,000-$1,000.000..... _. _______ .•.,.
, ••____
_._.•
73, 747, (Y.)()
67,874,000
M
65
39.561,000
39.661,000
37,618,000
-----------1---
----------- --- ---
- - - --- ---
$1,000 •• ________________________ • _______ ••
$1,000,000-$5,000,000 and over over.••••••••
___ ._._ 35,239,000 75 26,429,000 $1,000
$2,000 ••• _• •••••••••••••••••••••••••••••••• o 0.88 3.38 7.90
$2.000 ___ __ • ________
__ ., •••••• • ____ • '_"'"
_•••••••••• ___ • _•• __ _••.,, ••
__ ._
__ o 5.57 8.51 15.84
Total available
available_. ____•••
._._._
______ • __ •• __
1
_•••••••
----1
1----------·1------
____ ._. ___ • ________• 1,127,773,000
$3,000
$3,000_.•••••••••••••••••
____ • _____ ' __ " ,_.••••••••••
_. _____ •• ____ • ___._
_•• , •• 0.07 10.38 12.20 18.11
Total
Income
_____ ••••••••• •••••••••••••••••••••• 1,127,773,000 $5,000.•
$5,000 _.• _.
__ ._. ______ •• _e.
_••••• _.,.••••
_" _., __ . __
__ ..
""" __ . ___.. _.
_. __
_. 2.00 14.22 17.15 21.59
Income tux
tax collected
collected_________ • ________ ••••••••••••
•••••••••••••• • ___ ••• ___ ._____ __________
_•••••••••. __ • 324,
324, 745,000
745,000 $7,500.___
$7,500 _________ •• _____
•••••••••••• ••• _. ____•••••
_•••••••• • __ •• __••
•• _._
_._
$10,000. _________ 3.40 16.29 22. 02 26.02
Additional revenue._._. ____________________ ._. ___ ._________ 803, 028, 000 $10,000_ ••• _••••• •, ._
____ • __ • _______
••••••••• _••••• "" ___ ._._••_____ 4. 80 18.62 25.25 29.89
Additional revenue •••••••••••••••••••••••••••••• _ •••••••••• 803, 028, 000 $15,000 __________________
$15,000 __ .• _••••• _._. __ •••• • _______
_._ ••••• • ___
__ ._._
• ____.._
$25,000. ___ •• ___________
6,80
6.80 22. 95 31. 26 34.46
$25,000•••••••••• ,. __ •• _•• •• ,____
_' _."• __ ••
•• _____
_. __ •••.___ 10. OS
10.08 29.47 38.04 30.78
$50,000 ________
$50,000___ •• ,__••• ""
• ___ ••• ___ • _.
______________
_•••• _. __ •• _.• _. _. _.
_. 17.20 39.30 47.43 45.13
AVAILABLE INCOME FROM CORPORATE INCOMES,
mcoMES, 1932 $106,000_____________
$100,000 _______ •••••• ._________
., •••••• • ____. ••••
_. ____.• ___
___ •• 30.01 48.10 63.65
53.65 47.44
1. Returns of corporations submitting balance $500,000._.
$500,000 _. ____ .,
_________ • ________
•••. __ ••• ___••• •• ,.
_______
__ •• _.• ""
__ ._ 52.72 61.58 63.03
53.93 49.49
sheets for 1932 (all returns) : I $1,000,000_.___.• __•••••
$1,000,000. •• _. _____
_. __ •• ___•••••
•• ______••••••• ___.• __
__ ••
•• 57.11 63.91 53.97 49.74
Cash (in t!ll or deposits In bank) ________ $15,917,202,000
Investments, tax·exempt
tax-exempt _________________ 11,916,864,000 Republic, Jan. 24, 1934.
Source: New Republic.
Investments other than tax-exempt______ 75,630,257,000
Surplus and undivided proflts. __ .________
proflts____________ 45,663,746,000 American and European death taxes
Net surplus (less deficit of $9,584,221,000) _ 36,079,525,000 [Source: Preliminary report of Subcommittee on the Committee
CODlmittee
2. Returns of corporations showing net incomes on ways and Means, relative to Federal and State taxation and
(1932) : duplication
dupllcatlon therein (1933), p. 237]
Total gross income _______________________ • 31, 707, 963, 000
Total net Income ________________________ • 2, 153. 113,000
Income tax ___________________ ~__________ 245,689,000 United Greal
Great
States Britain
Britnln
Available revenue at flat 25·percent
25-percent rate_________ 538,278,000
TAX INCOME,
mcoME, 1933 $1,000.
$1.000 ___..,___________
•• _. _.' __ •••• • __ •, ____
_. __ •• , _____
•• ,. • _________
_••.•••• _••••••••• • __ • __.••.••••
__ •• _.,. ,. o 1
$5,000 __
__ •••••
• ________
__ • _.• __.••••.
__ • __________ • _______________________
_•.•• _•• _•• _••• ,. _•• _.•..
$5,000
$10,000_. _____________ ._.
_.•••• _. _•••
________ • ___ • ________ • _____ • ______
__ o 3
Total net In· Revenue
Revenne $10,000•••••••.• _. __ •••••• __ •••••• _.••• _•• _•••••.•.••••• _•••_ o 3
$15,000 ______ • _.
________ • _••••
•• ____ •• ____ • __ • _. __
____ • ___•.••••
• ________ ••
come reported TIlX rate available $15,000._. _••• _ •• _._., _ •••• __ " _ ••••
$25,000______________________ ._. ______________ • ______ • _____ _ "" __ .•• o 3
$25,000. __ ••••••• _•••••••••••••••• __ •••• __ .•••••..•.•••• ___ _
$50,000 o 4
$50,000.______ • _______
__ •••••• • __ • _____________
_. __ ••••••.•••••••• ___ •••• _____
•.• ._. _____ • ____ .-.
_•••••.••••••• -. o 6
$100,000.
$100,000_._._____••••• _.,._.
_____.•._'___ •• ________
__ ••••• _____ •••• ____ "" - •• _._____ • _•• __ ••
• _____ 1.5 9
I. INDIVIDUAL RETURNS $150,000 ______________ • __ • _"
__ • _""
__ •• _____
$150,000 _" __ •. _••.•.••••• ___ ••• __
_••• ___.•• ___•••••
• ___ •, ••••••
__ • _•• _.__ 3.33 12
$200,000._
$200,000______.. __ ••••
•• _._._••.________ •••• ____________
_._. __ ••••••. ____ • ________ "e.
____ ••• _._. ••••••••••••. 4.75 14
Income classes:
$5,000-$10,000.____••••••••••••••••••••••
••• __ •• _. ___________ _ $1,477,827,000
Percent $300,000_________ •.•••• • ___ •• , _. ______
___ .,.•• ___
______
• __ •• _._____. - .••••
-. __ • _- ••••
_•• ____
___ •
$5,000-$10,000 6.50 17
$10,000-$15,000._.
$10,000-$15,000 __ .________ __________ _ $1,477.827,000
.••••• •_••••••••••• 559, 850, 000
16 $236, 452, 000
$400,000_.••
$400,000 __________
•••••.• _. _. _••••
•••••••_______ •••
••••_____ e. __ ... •••••••••••••
_. """'" ___ . ___ .... _. __ __ 7.62 19
$15,000-$20,000 ...• ___ • ___________ • __
22 123, 167,000 $500,000 ____.••••••••••
$500,000_._ • ___ • __ • _________
_._._ •••• • ___ • ____•••••
__ •.• ••• ____________
_._._._. __ •••••• • __ • __ e.
_.
$15,000-$20,000____ •••••••••••••••••• 310, 246, 000 24 74, 459, 000 8.50 21
$20,000-$25,000_. __ .. ••
_._. ___________ ._ $600,000
$600,000__ ••••••••.• _._ •••••••• __ ••••••• _. __ •• _. ___ ._ ._--_
__ ._ •• ___ ._. _____ • ___ • _________ • _____________ •••.• ,.•• 9,25
9.25
$20,000-$25,000 ______ __ •••.••••••• _. 226, 778, 000 30 68,033,000 23
$25,000-$50,000_ ..... •___
$25,000-$50,000______ ___.•• _•• __ • _. __ ._
•••••.•••••. 621, 182, 000
. 621. 35 217,414,000 $800,000_
$800,000 .••••••••••••••••••••••••
_••• --. --_ -- ••• -. - -. -. -- - •••••
--- -- - - ••••••
-- ---- -. - - -' - •.•••••
------ • 10.56 25
$50,000-$100,000_.
$50,000-$100,000______ __ ..•... ____ ._•••••
• ___ •••• __ •••.• _. 304,766,000
394,766,000 40 157,906,000 $1,000,000 __ • ___________
'" _.•• __ _"'"•• ____ --._ •• _. - - - ••••••
__ """ ___ --- -.- - -- _. -_. - -.,.
_.". 11.75 27
$100,000-$250,000 $2,000,000.
$2,000.000 ___.•._________ ., _____ •••• _. ___ - ______"- _______
_•••• , -- --_.
--•••__,._
$100,000-$250,000.•._...•••
______ ._•••••••••
____ •• _____._ 240,681,000 45 lOS. 306, 000
108. $3,000,000_ •
_. _••••••••
_______ • _________
__ •.•••••••
., _.
_' .••••
________ • _ - __ • ____ •• _____,.•
15.77 33
$200,000-$500,000
$250,000-$500,000.... ____
____ •• •• ___ ••• ____
_••••.••••• _•••• 81,253,000 55
65 44,689,000 $3,000,000_ • _._. _•••••• _.• _•.• , ••••• _. ___ •• - ••• _••••••••• 18.45 37
$500,000-$1,000,000.. __ . __ • _____ • ____ _ $5,000,000_ •• _____________ • _____ • ___________ - ____ • __ • ______ • 22.09
22.99 41
_______ ___ • _. _•••• 59,511,000 65 37,682,000 $5,000,000_ ••••••••••••••••••••••••• _••••• _. - ••••• _"'" •• ,.
$1.000,000-$5,000.000 and und over_
over_._ •• _._
••••••• 81,559,000 75 61,169,000 $10,000,000. __
$10,000,000. ______________ • ___________ ---- -_ •• - •• - -- -- -- •••••
..•••.•••••••••••••••••••••••••••••• -- ----. ,. 30.94 61
Total. •___ • __•••••.
•• ________________ • _____ 1--------1
1 - - - -••-
• _______
1 __________
_.__ 1,129,277,000
Total. ____ _•••••••• _•••••• _ ••••• _•••••••• ___ • __ •• ___ • 1,129,277,000
Tax
Tax collected
collected______
.•. __• •••••••••••••••••
__ • _______ •• _. __ • _____ • _____._.
•••••• ____ •••
• ______ ______
•••. ____ ••
•• _
_ 372,968,000
372.968,000 Conversion: £1=$4.86.
Additional
Additional revenue
revenue .. _____ • ____ • _____._
__ ••••••••••••.• • __••••••••••
•• __ • ___ ._, ••• _._. ___ ._
•• """"'_ 756, 3W. 000
756,399.000
These facts and figures, and the testimony of many other
experts and economists and leaders of thought can be
n. CORPORATION RETURNS (TAX INCOME, 1933)
n.
found in the hearings on the Lundeen bill (H. (H_ R. 2827).
2827)_
Total net income
Income reported ________________________ $2, 506,078,279 They show conclusively that the cost of the workers' bill
is well within the ability of the United·
United" States Treasury to
Income
IncoDle tax______________________________________ 347,649,990 pay. and if we will raise our 1ncome-
income- and inheritance-tax
Excess-profits tax________________________________ 6,266.721 rates to the level of the British rate. we can raise the neces-
Total _____________________________________ 1353,916,361 sary funds. I hope that Members of this House will study
Available revenue at fiat
flat 25-percent rate___________ 626.520,000 these facts and figures and give their support to the Lun-
deen workers' unemployment, old-age, and social-insurance
1• Statistics of Income, 1928, p.
p, 32. bill (H. R. 2827),
I Statistics of Income,
IncoDle, 1932, p. 160.
I StatistiCS of Income. 1932. 1• 14.1 percent.
(7) Offices and members of the crew of American or for- (a) This title includes general definitions, provisions for
eign vessels. the establishment of rules and regulations, and so forth.
(f) Wages paid to employees over the age of 65 would not (b) .. State" and" United States" are defined to include
be taxed. Alaska, Hawaii, and District of Columbia.
TITLE IX. TAX ON EMPLOYERS OF 10 OR MORE Appropriations provided lor in the economic-security bfll
(a) The purpose of this tax is to force the States to enact
unemployment-insurance laws. Appropriation
(b) The object is achieved by levying a pay-roll tax on Purpose
employers of 10 or more persons during any portion of 20 Fiscal year
1936
Succeeding
years
or more weeks during the year. Against this tax, a credit
would be allowed, up to 90 percent thereof, for any contribu-
Old-age penslons_______________________________________ $49.750.000 (I)
tions paid to a State unemployment-insurance fund. No Administration of State unemployment insurance_____ 4,000.000 $49. 000. 000
credit would be allowed for private unemployment funds set Dependent children___________________________________
Maternal and child welfare_ ___________________________
24. 7SO, 000
3,800,000 (I)
up by the individual employer. 3.800.000
8~EEl!~I~:~~~~===================:================ i; ~~; ggg 2,850,000
(c) The rate of tax is 1 percent of the pay roll in 1936, Vocational rehahilitation_____________________________ 841.000
1,500,000
1.938,000
2 percent in 1937, and 3 percent in 1938 and subsequent Administration expcnses___________________________ 22,000 102, GOO
years. Puhlic health________________________________________ 10,000.000 10,000,000
Social Security Board (administration)______________ SOO,OOO
(d) The exemptions from the tax, in addition to employ- Children's Bureau (administration)___________________ 425,000
ers of less than 10 persons, include the following classes of w-,-ooo-'-_-_-_-_-_-_-_-_
Total ___________________________________________ '--9g-,
employment:
(1) Agricultural labor. I Indefinite.
LXXIX-372
Percent
Australia. _______ •• _••• _•• _. ___ • _____ • ____ • _•••• --_-- -__ • _-. -•••• -•••• ---- --- ••• --•• -.-- 1908 Noncontributory __ (I) 83,317 1932 007,755 36.1
Austria _______________ •• ___ • ______ •• ___ • __ . __ -__ --- -. - ----. -.- •• -- ----- -- - ---- --•• -- -. -- 1927 Contributory _____ r 60 68,366 1929-30 790,689 8.6
canada ________ • __ • ____ • ___ • _____ • _" ••••• __________ • ______ •• ___ -__ • _. _-- ---. -. -- ---. -. -- Noncontributory
1927 _____ __ 70 98, III 1934 • 268, 030 36.6
Denmark ___ • _____________ •• ___ • _______ •• __ • _________ • _._. ___ -____ - -- --- ----•• -. ---. --.- do ____________
1891 _____ do __ • _________ 65 99,830 1932 44.8
• 222,937
France ~. __ ~ ____ ............ _ .......... ____ .. ___ .............. ___ ............ __ .... __ ............ -- .......... --- .... -- .... -- .... --- ..
1905 70 369,977 1930 2,167,492 17.1
o crman y _.. _................ __ .. _____ .. __ .. __ .... __ .. ___ .. __ .... ____ ...... __ .... ___ ...... ______ -.... --................ --- 1889 Contributory _____ 65 2,126,336 1932 8,593,613 59.2
Great Britain_. __ • _•••••••• ___ ._ •• _. __ • __ • ______ • _•••• __ •• _. -- •• -. ---. -•• ---••• - ---. ---- 1908 Contributory and 65 2,279,791 1932-33 3,418,269 66.7
noncontributory.
G rcenland ____________ •• __ • _•• __ ••• _________________ •• ___ • __ - _-- -- ---- ---. --.- -- -- ---•• - 1926 Noncontributory __ 55 500 1029 '981 51.0
Iceland .• ________ • __ ••• _••• _•• _•• _••• ___ • ___________ • ________ -__ --- ---. --•• ----_-. --. --- 1909
_____ do ____________ 00 2,466 1928 0,708 25.4
Irish Free State ______________ • __ •• _._ •• _•• _•••• ______________________ • ________ -_. ___ ---- 1908 _____ do __ • _________ 70 112, 059 1928 170,468 65.7
Italy ______________________________ • _________________________________________ • _-_-_-_- _--
Luxem ___ . __ • _____ • _______ • ______ • ___ • _____________________ • __ • __ - _-_-_-_ -_-_-_----
1019 Contributory _____
_____ do. ____ " ______ 65 189,608 1033 a. 005, 444 6.3
bur~
1911 65 1,423 1928 18,071 7.9
Netherlands. ________ • _____ • __________________ •• ____________ -_____ • ___ - _-. __ -_-. -- -_ -_-- 1913
_____ do. _. _________ 330,666 1929 404,000 81.8
New Zealand_. _________ • __ •. _________________________________________________ -____ • ___ _ 65
1898 Noncontributory
_____ do_. __________ __ (l) 34, 932 1933 108,9n 32.1
South Africa, Union 01. __ ••• _. ___ • ___________ • ______________________________ - ___ - __ • ___ _ 1928 65 .46,997 1933 08,002 48.0
Sweden ___________ •• _______ • __ • ___________________ • _•• ___ • _. _____ • __ -- ---- -_---_---_--__ 1913 Contributory. ____ 67 '269,606 1932 • 496, 193 54.3
1 Men, 65; women, 60. 8 Aged population of the 8 Provinces wbich have adopted old-age-pension legisiation.
'Unless employed. • Census of 1921.
• These figures are only for the gratuitous pensions. There are a number of other special schemes for miners, railroad workers, seamen, and employed persons in Alsace-
Lorraine, in elIect at this time. However, for these, age requirement varies too widely to be included bere.
e Estimated.
'Estimated number of people 65 and over in receipt of invalidity or old-age pensions_
'Population 65 years and over in 1020.
TITLE n. OLD·AGE BENEFITS You have in title II the purpose effectuated that the
I go now to title II, Federal old-age benefits_ gentleman from Pennsylvania [Mr_ RICH] wants. He said,
It has been said that ingenuity was exercised in the prep- "Why do you not balance the Budget? "
aration of titles II .and VIII. We have been charged with Title 2, in setting up the old-age reserve account and pay~
the crime of endeavoring to write provisions of law that ments thereunder purposes to relieve from taxation, and
were constitutional. That is what the charge amounted to_ not only relieve the Federal Government from taxes in tak~
They say much effort has been made to make titles II and ing care of the aged under the old-age pension plan, or
VIII constitutionaL Is that a crime? Is it not the' prov- direct relief, but it purposes and will relieve the Shiites and
ince and duty of a Member of Congress, and especially a the units of the States from taxation_ It purposes to bal-
~ommittee, to bring to Congress a bill that is constitutional? ance the Budget on that particular line and to have a busi~
Ivlay I say, (with reference to this question, that the same nesslike, self-sustaining policy with respect to the aged.
constitutional basis for title I underlies title II. Mr. McCORMACK. Mr. Chairman, will the gentleman
I do not believe that anyone can question the constitu- yield?
tionality of title VIII_ Mr_ Chairman, title VIII is a tax_ Mr_ VINSON of Kentucky. I yield.
Congress has the power to tax_ Title VIII has two sorts of Mr. McCORMACK. And to assure security in old age, as
taxes, an income tax and an excise tax, and no lawyer here, a matter of right.
able as they are, has pointed to anything that would indi- Mr. VINSON of Kentucky. The gentleman is correct.
cate that title vm is unconstitutional. The taxes under title 8 are not added taxes. In the years
Mr. JENKINS of Ohio. Will the gentleman yield for a that have gone by the aged, the destitute, the young, the
question? crippled have been taken care of somehow. They have not
Mr. VINSON of Kentucky. I yield to the gentleman from been taken care of as they should have been, or as they
Ohio_ will be under this bill. But you have had local taxation, you
Mr. JENKINS of Ohio. Would title VIII be of any benefit have had State taxation, you have had Federal taxation to
in this bill if title II is stricken out? take care of that burden and you have such burden today.
Mr. VINSON of Kentucky_ If title II is stricken, the I say to you that in my opinion title 2, in building up this
money would be collected under title VIII under the power of reserve account, is in aid of the taxpayer of this country,
the Congress to levy taxes. You would have the excise taxes in the very aid of industry who has not complained of it.
collected. You would have the income taxes collected_ Mr. SAMUEL B_ HILL. Mr. Chairman, will the gentleman
What would become of them? The same thing would hap- yield?
pen to that money that will happen under this bill, namely, Mr. VINSON of Kentucky. I yield_
the money will be covered into the Treasury of the United Mr. SAMEUL B. HILL. On that same point, as shown by
states. The money raised under title VIII goes into the the testimony of the experts, in the course of time, when
general fund in the Treasury_ That tax money does not go they get this reserve fund built up, it will save the Federal
into the old-age reserve account, but goes into the Treasury Treasury $800,000,000 a year that otherwise would have 'to
of the United States_ be paid out in old-age pensions_
I say that we have the same power to enact title II that we Mr. VINSON of Kentucky. The way I understand it, it
have to legislate with reference to titles I, IV, V, and VI. Is about $1,000,000,000 a year, and at the same time it saves
May I say, incidentally, that similar legislation to titie V has the States untold added millions.
been upheld by the Supreme Court of the United States in Now, under the original bill that came in here-and I
the Sheppard-Towner deciSion. wonder what our friends of the opposition would have said
Title II is complementary to title I. It is a complement to about it-when it was submitted to us, title 2, providing for
the old-age pension. I submit that we have the power to old-age benefits, was not self-sustaining. They would have
appropriate moneys called for in title II_ The old-age reserve used the money put into the reserve account to pay the
account is built up by regular annual appropriations. The unearned annuities provided therein. In 1980 there would
collection of the tax is one operation under taxing power. have been a burden of $1,400,000,000 on the Federal Treas-
The expenditure of regular appropriations for benefits under ury every year for old-age benefits and $500,000.000 for old-
title II is another operation-under other powers. age pensions_ We would have saddled upon the Federal
Textiie
Men'sproducts-Continued.
clothing _______________________________________________________________ _
Cotton goods __________________________________________________________________ _ $105,813 $445.220 $230,580 $0.0024 $0.0072 $0.0144
Dyeing and finishing __________________________________________________________ _ 232,240 861.170 457,734 .0027 .0081 .OlG2
Hats ___________________________________________________________________________ _ 71,971 278.942 136.140 .0026 .0078 .0156
Knit goods ____________________________________________________________________ _ 13,744 40,600 21,462 .0033 .0009 .0198
Shirts _________________________________________________________________________ _ 148,487 498,350 200,689 .0030 .0000 .0180
20,287 119,717 60, 060 .002·1 .0072 .0144
Silk and rayon goods __________________________ ---------- ______________________ _ 82, 086 290,578 146,967 .0028
Forest products ____________________________________________________________________ _ .0084 .0168
Furni ture ______________________________________________________________________ _ 341,082 1,127,405 61Q.223 .0030 .0090 .0180
92,389 207.730 155,143 . 0031 .0093 .0186
Pap~~nbJ~lfi~~yp¥~~~e.,s~e-~-~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
11,942 41,523 23,777 .0029 .0087' .0174
Bngs.. __________________________________________________________________________ _ 219,037 1,172, i43 518,696 .0019 .0057 .0114
Boxes ________________________________________________________________ " ___ -' ___ _ 7,158 49,379 20,083 .0014 .0042 .0084
Paper _________________________________________________________________________ _ 47,552 223,004 96,678 .0021 .0063 .0126
100,440 560, 96~ 249,196 .0018 .0054 .0108
Printing and publishing---------------------------------------------______________ _ 582,430 1,733,437 1,355,592 .0034 .0102 .0204
Book binding and blank books ________________________________________ " _______ _ 20,038 56,Oll 40,325 .0036 .0108 .0216
Printing:
Books, muslc ______________________________________________________________ _
169,924 519,990 378,751 .0033 .0099 .0198
Periodicals
Chemicals and alliedand newspapers--------------------------------------------
products-- ____ __
__________________________________________________ 332, :152 1,004,990 820,299 .0033 .0099 .0198
311,540 2,117,513 1,140,010 .0014 .0042 .0084
Druggists'
Pain ts and varnishes __________________________________________________________ __
preparations------------------------------------------ _____________ 20,969 146,776 103,205 .0D14 .0042 .0084
Patent and proprietary remedies _______________________________________________ _ 36,607 289,442 136,416 .0008 .0024 .0048
15,003 138, 145 99,013 .0011 .0033 .0066
Rayon and
Soap---- allied products---------------------------------------------- _______ __
______________________________________________________________________ 43,706 156,932 112,901 .0028 .0084 .0168
Products of petroleum and coal ____________________________________________________ _ 20,451 200,128 106,621 .0010 .0030 .0060
o ns (manufactured) _______________________________________________________ _ 201,719 1,871,494 585,933 .0009 .0027 .0054
Refining _______________________________________________________________________ _ 68,129 295,480 216,291 .0023 .0069 .0138
111,360 1,378,637 314,2DO .0008 .0024 .0048
Rnh8;~r,.rrg~,mresand-shoes~~~::~~~~:~~~::~:::~~~~~~~~~~::~~~~~~~~:~~:~~~~~~~~~~
12.1,440. 472,744 261,347 .0027 .0081 .0162
T ires and tubes ______________________________________________________________ _ 37,183 131,411 73,530 .0028 .0084 .0168
Leatber and its manufactures __________________________________________________ _ 70,648 299,313 159,021 .0024 .0072 .0144
Boots and shoes ______________________________________________________________ _ 254,071 996,773 452,036 .0025 .0075 .0150
Leather, fin ished ______________________________________________________________ _ 150,884 553,425 267,122 .0029 .0087 .0174
Stone, clay, and glass products ____________________________________________________ _ 48,900 237,202 99,025 .0021 .0063 .0126
Cement. ______________________________________________________________________ _ 175,818 608,699 396, M.4 .0029 .0087 .017-1
o lass _________________________________________________________________________ _ 18,280
54,858
86,921
191,948
69,989
128,538
.0021
.0029
.0063
.0087
.0126
.0174
Pottery ________________________________________________________________________ _
21,001 43,718 31,539 .0048 .0144 .0288
Iron and steel and their products (not Including machinery) _______________________ _ 612,296 2,463,001 1,062,171 .0025 .0075 .0150
Blast furnace products _________________________________________________________ _ .0018
Bolts, etc______________________________________________________________________ _ 13,774 213,685 20,729 .0006 .0036
9,762 32,874 17,524 .0030 .0090 .0180
Steam and hot-water apparatus--------------------------------------------- ___ __ 25,693 69,234 49,173 .0037 .0111 .0222
Roiling-mill and steel-work products __________________________________________ 304,099 1,143,889 451,800 .0027 .0081 .0162
Ti n cans. __________ r _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ .. _ _ _ _ . . . . _ _ _ _ _ _ . . . . _ _ . . . . _ _ . . . . . . . . _ _ _ _ .. _ _ .. _ _ _ _ _ _ _ _ _ .. _
27,604 207,946 70,900 .0013 .0039 .0078
Nonferrous metals and their products _____________________________________________ _ 212,723 1,068, 753 427,526 .0020 .0060 .0120
Aluminum products-- _________________________________________________________ _
Jewelry ________________________________________________________________________ _ 14,862 61,464 27,436 .0024 .0072 .0144
14,344 42,652 25,869 .0034 .0102 .0204
Machinery (not Including transportation equlpment) ______________________________ _ 695,549 2, 069, 419 1,280,230 .0034 .0102 .0204
Agricultural im plements.. ______________________________________________________ _
Electrical machinery __________________________________________________ - - ______ _ 12,936 30,539 18,561 .0042 .0126 .0252
163,874 &53,431 340,917 .0030 .0090 .0180
Machine tools ____________________________________________ --- - - __ - - ___ --- --- ---- 18,736 41,434 30,590 .0045 .0135 .0270
¥:~ta~ ';;;~Ei~~~~~~~~-:~:=--=:::::~::::~~::~::~::~::::~::~::~~::~:::::~::::~:
37,903 121,802 63,281 .0031 .0093 .0186
Transportation equi pment _______________________________________________________ _ 23,855 60,323 ~41, 945 .0040 .0120 .0240
Aircraft and parts ____________________________________________________________ _ 388,746 2,058,195 65,905 .0019 .0057 .0114
Motor-vehicle bodies and parts ________________________________________________ _ 13,824 26,460 18,503 .0052 .0156 .0312
Motor vebicles ________________________________________________________________ _ 174,188 761,225 321.592 .0023 .0069 .0138
Ship and boat building ________________________________________________________ _ 129,262 1,096,946 329,179 .0012 .0036 .0072
Miscell aneous industry ____________________________________________________ - ______ _ 41,381 92,696 61,524 .0045 .0135 .0270
Cigars and cigarettes __________________________________________________________ _ 258,566 2,312,635 679,043 .0011 .0033 .0066
51,054 777,145 200,999 .0007 .0021 .0042
EXEMPTION FROM TAXATION farmer of his district should pay that tax? [After a pause.J
Now, <I want to deal with the exemption features in title The gentleman is eloquent as usual, but it is the eloquence
VIII. We have been actually criticized because agriculture, of silence. I say to you there were real reasons why those
casuals, and domestics, and certain other people have been exemptions were made.
exempted from title VIII. I would like to know, and I am Mr. LUNDEEN. Will the gentleman yield?
willing to yield in my time for reply, what Member of this Mr. VINSON of Kentucky_ I gave the gentleman an op-
House is willing to stand on this floor and say that agri- portunity to answer. If I am wrong, I will give the gentle-
culture, domestics, and casuals should be taxed for old-age man time to answer it.
benefits. Mr. LUNDEEN. The gentleman will hear from me later on.
Mr. LUNDEEN. Will the gentleman yield? Mr. VINSON of Kentucky. The farmer, the casual, and
Mr. VINSON of Kentucky. I yield. the domestic were not taxed in this bill, because we knew
Mr. LUNDEEN. I would like to say that the millionaires that the House and Senate would not keep it in the bill.
and billionaires and the men who have fortunes and incomes Nobody would want a farmer to pay a dollar a year for 45
over $5,000 ought to be taxed. years, with all of the nuisance features attached thereto,
Mr. VINSON of KentuGky. Oh, yes; and the gentleman with all of the cost of administration. Suppose a man
would talk loudest and longest if the farmers of his section plowed ·for a farmer for a day, and he paid him a dollar a
had to pay a tax under title VIII. Am I right or wrong? day, the employer would have to take out a penny and give
Mr. LUNDEEN. If there is a farmer who has an income him 99 cents for his day's work.
of over $5,000, I would tax him. Then at the end of the road he would not have accumu-
Mr. VINSON of Kentucky. Oh, no. I am not talking of lated enough money to have paid for any SUbstantial old-
incomes over $5,000. Do not dodge it, my friend. The age benefits.
amount of income is not involved in title VIII. If farmers This bill exempts the farmer, exempts casuals, and
were subject to the tax under title VIII, he would pay $1 exempts domestics, because the amount of the tax would be
for each $100 he earned; if it were $10 he would pa,y 10 inconsiderable and its collection would be such a nuisance
cents. Does the gentleman from Minnesota assert tl1at the and caWJe such a clamor that the very ideal of the struc-
N
e
~
health work. This work presents no new departure. Ex- New Jerscy ______________ ___________________ _
25,960.92
~
New !4exlco__________________________________ .
perience has indicated that it is needed. Before the de- 5,697.78
New York _______ .:. ____________________________ .
Ne~
86,669.77
pression the infant death rate had been markedly reduced North Carol1na
Carollna_______________________________ . 34,926.68
in every State
state in the Union. However, during the depres- North ])akota_______________________________ . 6,107.61
Ohlo _______________________________________ _
sion, between 1932 and 1934, there has not been the usual Oklahoma
Oklahorna ___________________________________ _ 44,355.52
annual decrease-the rate remaining stationary. Oregon ______________________________________ _ 20,235.36
Pennsylvanla ________________________________ _ 5,660.27
5.660.27
The maternal-mortality picture is similar, but it is well 72,725.40
known that the death rate among mothers has not decreased PuertoRlco __________________________________ _
Rhode Island _________________________________ . 30,764.02
in anything like the proportion that the death rate among 4,793.84
Carollna _______________________________ •_
South Carol1na 18,671. 06
infants has decreased. This causes us to feel that increased South])akota________________________________ _
5,954.79
facilities for maternal care and maternity nursing services Tennessee ___________________________________ _
Texas _______________________________________ _ 23,222.71
23.222.71
are essential, not only for saving the lives of mothers, who Utah _______________________________________ _ 49,989.86
are so necessary, both for their new-born and the older Vermont ____________________________________ •
Verrnont 5,515.32
Vlrglnla
VlrglnIa _____________________________________ _ 2,839.16
2.839.16
children in their family. The most effective way of reach- 23,734.88
ing the problem of infant and maternal mortality is the VVashlngton _________________________________ . 9,670.11
VVestVlrglnla___________________ ____________ _ 16,792.80
development of public-health nursing services in connection
~
VVisconsln ___________________________________ _
VVlsconsln
with the public-health departments. All of the work under VVyomlng ____________________________________ _
VVyornlng 23,343.57
1,948.19
this title is done through State state departments of health and
the entire control of policies is reserved to the States. states. Crippled children
In the following table, I am showing the amount which Part 2 of the title provides for services for crippled chil-
will be granted to each State per million dollars of dren and authorizes Federal grants to help the States extend
appropriation. and iimprove their services for discovering crippled children,
TABLE a.-Apportionment under title V, Maternal Health., and providing such children with medical, surgical, correc-
Matern.al and Child HeaZth,
sees. 501-505 tive, and other services and care in connection with their
(Apportionment of $1,000,000 distributed on the basis of live births physical disability.
reported In 1933. Alaska
Alaska. apportionment based on live births re-
ported for the 2-year period 1931~2; HawaiiHawal1 and Puerto Rico, I am personally familiar with this type of service. In my
1932)Total ______________________________________ . $1,000,000.00 State it has been under the supervision of the crippled
children's commiSSion,
commission, of which former United States Sena-
tor Ben Williamson has been chairman since its creation.
state:
Alabama _____________________________________ .
Alabarna
Alaska ______________________________________. 27,478.45 Hundreds of children who were permanently disabled have
Arlzona _____________________________________ _ 592.75 been so far restored that they have been able to walk and
Arkansas ____________________________________
___________________________________ _ 3,762.55 play and to return to school to take their part in normal life.
Callfornla
Cal1fornla___________________________________ _ 16,578.39
Colorado ___________________________________ _ 34,747.93 Careful surveys have shown that in Kentucky, and most
Connectlcut ________________________________ _ 7,955.77 other States, less than 40 percent of the crippled children
])elaware ____________________________________ _
])ela~are
10,390.20 who are in need of correction cannot be served on account
])lstrlct of COlurnbla
])lstrtct COlumbla __________________________ • 1,816.21 of the limitation of funds. These additional grants-in-aid
Florlda ______________________________________ _ 4,610.00
(leorgla ____________________________________ _ 11,885.50 will·
will'restore
restore hundreds of crippled children to usefulness and
28,240.68 happiness.
TABLE 7.-St4/e childrtn I
7.-814/e and local public funds for care of crippled children
Alabama_•••
Alabama _________________________
______________________ • $5, 000 __________
$5, 000 _____ . __ .. _________ Stete board of edncatlon.
$189
State
Arkansas. ______ • ___________ . ______ .
Arkansas___________________________ 9,250
9.250 ... _...
.. _.. _.._ $9,250
__ .. ___ . __ ....
__________ 499
Trustees of Children's
Children'S Home and Hospital.
California ..•••
California_ ________________________
__________________ ._.. 36,478 10,000 __ __________
"._,,__ $26, (78 State department of health.
643
Connootlcut ____________________ ._
Connootlcut______________________ 84,000 _____ ._ .. _ '84, 000
__________ ___ • __ ~___
______ 5, 227
Board of trustees of Newington Home for Crippled Children.
Florida._ .. __________________ • ___ ..
Florida____________________________ 60,000 60,000 ._ ... _....
__________ __ ._______ 3,300 Commission for crippled children.
__________
liIinois_. __________________________ ._._.
liIinois____________________________ ___ ._
__________ (') • 89, 558 _____________ Department of health.
Indiana
Indiana_. _____________________________________
___________________________ . ______ ...._ __________ (0) (0) State university hospitlll.
I Figures given are appropriations except in Massochusetts and New York .. and local funds in California, which are expenditures. Figures for the year 1933 used for 15
States and for 1931, 32 or 34 in others. (gxcluslve of vocational rehabilitation funds.)
'Rate calculated only when public expenditures were known to be fairly complete.
'State aid given to private hospital.
'Amount not known.
'This figure to be verified .
• Care provided in State university hospital, cost paid entirely or partly by counties.
; Care provided' in State university hospit.ol, cost paid by Stete.
I State aid and local contributions to two orthopedic hospitals.
I Estimate based on total appropriation for both ill and crippled children.
10 In addition some children receiving care in State university hospital paid for Jointly by State and county.
11 Includes medical care of crippled adults.
11 No funds available in 1934.
"Exclusive of Cuyahoga County.
H Approximate expenditures.
Child wellare personally. I wish every Member of Congress could have had
Part 3 of the title authorizes the appropriation of $1,500,- the opportunity to see this work at first hand as I have had.
000 to enable the United states, through the Children's I am carefully weighing my words when I say that no dollar
Bureau, to cooperate with state public-welfare agencies in of the taxpayer's money, local, state, or Federal, in my
the work of establishing and extending public-welfare serv- opinion, receives as much dividend as the money that is
ices for the protection and care of dependent, homeless, and appropriated for the support of county health units.
neglected children, and children in danger of becoming de- I lived in Kentucky before we had county health units. I
linquent. . have lived there while they have been operating, and I live
The money authorized hereunder Is to be divided as there now. It is the most remarkable piece of work for hu-
follows: manity that I have ever had the opportunity to observe, and
Ten thousand dollars is to be allotted to each state and I want to repeat that I know of no dollar of the taxpayer's
the balance to be divided among the states in the propor- money that gets the results in Kentucky as this particular
tion which the rural population bears to the total rural money; that is, if health and life have any value-to me
population of the United states. they have.
state welfare agencies are required to investigate many This plan of full-time county health departments was first
conditions requiring special welfare service for children, developed in Kentucky, and the first county health unit in
such as situations of extreme neglect in homes, feeble- the United states was established in Jefferson County in
mindedness in parents and children, cruel and abusive 1907 and 1908. In 1911 similar departments were developed
parents, illegitimate children without competent guardians, in North Carolina and the state of Washington, and the
children who are delinquent and come before the juvenile second department in Kentucky was in Mason County, which
court, and many other types of problems. is in my district; and the fourth was in Boyd County, which
The basic service necessary to deal with these situations is also in my district. Nineteen of the 20 counties in my
is a child-welfare service which makes available skilled district now have fully developed and active health depart-
investigation as to the needs of the child and the use of ments. Seventy-eight of the 532 full-time county health de-
whatever agency in the community or the state may be partments in the United states are in Kentucky. There re-
adapted to the particular situation. The development of main 2,468 counties in the United States without county
such social service Is of extreme importance, especially in health departments. Ohio, North CarOlina, Maryland, Ore-
the rW'al areas and in the areas suffering from extreme gon, Montana, Alabama, and other states have made similar
distress and destitution. progress, and the great states of Pennsylvania, Vermont, and
Vocational rehabtzttation New York have had like development in the form of public-
Part 4 of this title provides permanent legislation for health districts.
All of these departments, in all of the States, have been
the work which has been undertaken by the Federal Gov- developed under the supervision of the United states Public
ernment under temporary authority extended from time to Health Service, with Federal aid or aid from the Rockefeller
time. Foundation. However, in their development there has been
This is in no sense new work, but continues and expands no weakening of state and local authority. That this title
worthy work which has been prosecuted quite successfully. is developed along sound lines, after years of research and
= E VI. PUBLIC HEALTH demonstration, is indicated by the monumental report of
Mr. Chairman, when we come to the consideration of title the New York State Health Commission to its then Governor,
VI, we are speaking of work which is not In any sense ex- the Honoflllble Franklin D. Roosevelt, entitled .. Public
perimental, work for the folks about which I know something Health in New York State", and published 'in Albany in
As an agency for serving the needs of the people, government able these m1n1mum protections of the health and welfare of
should not be a static force, but should evolve to meet a changing children, there should be a district, county, or community organi-
and developing body of knowledge. This Is particularly true In zation for health, education, and welfare, with full-time officials,
the field of public health In which, during the past decade or two, coordinating with a State-wide program. • • • This should
the far-reaching development of scientific facts upon which gov- include trained full-time publ1c-health officials, with public-health
ernmental action Is based makes particularly necessary a periodiC nurses, sanitary Inspectors, and laboratory workers • • •. n
examination of the extent to which the state Is meeting the needs The health section of the League of Nations has devoted much con-
of the people in this vital field. sideration to the rural health problems of the world and has done
much to promote local health service and improve the qualifica-
He further quoted, with approval, a statement made by tions of health officers in many different countries.
the respected Dr. William H. Welch, late dean of American The national leaders of both political parties have expressed
medicine: , approval of the plan.
While public health Is the foundation of the happiness 'and There is authorized under this title an annual appropria-
prosperity of the people and its promotion is recognized as an tion of $8,000,000 to be allotted to the states for the purpose
important function of government, how wide is the gap between of developing local health services through the state health
what is achieved and what might be realized; how inadequate Is
the understanding of the publ1c concerning the means adopted to departments.
secure the best results? . The amount of the allotments are to be determined on the
He requested this commission- basis of first, population; second, special health problems;
to take into consideration the activities of State and local health third, financial need of the respective states.
authorities and their relations one to another, the recent progress I have heretofore testifled as to the splendid services per-
in public health in other States and abroad, and to examine criti- , formed by the county health departments of my state. Those
cally the extent to which the health needs of the people were
being met. who do not have such units' cannot appreciate the real value
of such work. With your permiSSion, I insert excerpts from
The recommendations of the Roosevelt New York com- the testimony before the committee with reference to this
mission in regard to state aid are not only so pertinent to splendid work. '
the discussion of that important policy, but apply so force-
fully to the whole question of Federal aid, that I am quot- STATEMENT OF DR. STATES
C. E. WALLER, ASSISTANT SURGEON GENERAL, UNITED
PUBLIC HEALTH SERVICE
ing it in its entirety, substituting Federal" for state ":
H H
Mr. TREADWAY. You are assistant to Surgeon General Cumming?
Careful consideration has been given to the policy of Federal Dr. WALLER. Yes, sir; in charge of the State's Relations Division
aid In public health which has, been In operation for more than of the Public Health Service.
a decade. The conclusion has been reached that Federal aid Is Before I start on the functions of a county health unit, Mr.
a necessary policy, particularly for rural areas and in the develop- Chairman, I think I have approximately the answer to the first
ment of new health activities. question that Mr. Vinson asked. He wanted to know what per-
Public health problems are never wholly local. For example, centage of our total appropriation goes for health work. I may
the existence of a communicable disease threatens other com- say that It Is slightly over a million dollars, or a little over one-
munities besides that In which It arises. There are very practical tenth of the total appropriation to the Public Health Service.
reasons, therefore, why the United States should give financial Mr. VINSON. That actually goes into public-health work?
and technical advice to stimulate better local health conditions Dr. WALLER. Yes, sir. I
should precedent for It be found In other phases of co=u- With respect to the functions of a county health unit, I should
nlty welfare. In fact, the commission is of the opinion that like to ,say, In the beginning, that the work of a county health
the only alternative to Federal aid for rural health service Is unit Is preventive in character. It is not for the purpose of
operation by the Federal Government itself of direct health serv- providing medical care. In that ,respect it does not interfere in
ices to the people. Those who believe that Federal aid is un- the slightest degree with the medical profession. '
desirable must concede that its Inevitable alternative Is even Mr. TREADWAY. You mean the local medical profession?
less desirable from the standpOint of preserving local responslb1llty Dr. WALLER. The practicing physiCian. In fact, it has the op-
in the administration of health work. posite effect. The educational activities of a county health unit
Under the present conservative policies of granting Federal aid make more work for the practicing physician in that they bring
for county nursing services and county health departments In our needs for medical care that otherwise would not be discovered,
rural areas and similar health services, much has been accomplished and direct cases Into the hands of the private physicians.
In promoting the public health which otherwise would not have The education work carried on by these units stimulates parents
been done. into having their children vaccinated against diphtheria, typhoid
The commission recommends, therefore, that Federal aid be fever, and smallpox, and this work is added to the work that the
continued for the development and operation of local health practicing physician is called upon to do.
activities. The personnel of a county health unit consists, first, of the full-
time medical health officer, who is the director of the unit. This
The whole matter of local health service Is summed up by health officer is not just an ordinary practiCing physician. He
the New York commission briefly and forcefully as follows: has to have special training In preventive work. That is his
speCialty, and it is just as much a specialty as is the specialty
Three successive legislative enactments Indicate an Increasing of practice on the eye, ear, nose, and throat, or the specialty of
official recognition that the care of the publ1c health Is a respon- surgery.
slbll1ty of government and that It is more than a local respon- In addition to this director of the unit, we have public-health
slb1l1ty. nurses on the staff. We also have sanitary engineers or sanitary
Equally well said: Inspectors as members of the staff, and then, finally, we have the
clerical personnel that must be particularly sk11led in the handling
In the modern health program, qualified health officers, nurses, of vital statistics, records, and so forth.
engineers, laboratorlans, and other professional personnel on It. As to the functions of the unit, one of the primary functions Is
full-time basis are essential if satisfactory service is to be expected. the control of communicable diseases. The health officers and
nurses carry out the' quarantine procedures in the control of cases
In summing up its recommendations in regard to local of communicable diseases, to prevent the further spread of these
health service, the Roosevelt commission said: diseases from cases that have occurred.
The United States Public Health Service, as a result of exhaust- One of the most effective means that they employ In the control
Ive studies of rural health ne~ds, for many years has actively of communicable diseases consists in urging parents to have their
sponsored the county health Idea through financial aid to demon- chlldren vaccinated against diphtheria, scarlet fever, typhoid fever,
stration counties and otherwise. This program has received the smallpox. Typhoid fever and diphtheria today are almost entirely
endorsement of the physicians of the country through resolutions preventable, and it is now regarded almost a disgrace for any com-
of the house of delegates of the American Medical AsSOCiation. munity to have an outbreak of either of these diseases.
The Rockefeller Foundation, created "to promote the well- Just lately we have also discovered a means of Immunizing chil-
being of mankind throughout the world ", has directed the major dren against scarlet fever. We have a new immunizing agent that
energies of its international health division to the development of can be used successfully for this purpose. It has been shown by
local' health departments on a county basis with fUll-tlI!Je quali- officers of the Public Health Service to be almost as effective as the
fied personnel. It is significant that this great philanthropic toxoid agalnst diphtheria.
organization, with the world as its theater of action and with the Mr. VINSON. Your statement, Doctor, is eminently true, but It Is
well-being of mankind its concern, centers its activities so largely a statement In generalities. It does not paint the picture that I
upon health and its health activities so largely upon the county want to present to the committee. I wanted you to tell this com-
health unit. mittee and the House just how they operate In these county health
The recent White House conference on child health and pro- units. I should like the committee to know how they get Into
tection, after reciting the needs of chlldhood In health education their automoblle and travel out into the school districts, and hold