CONGRESSIONAL RECORD-·· SENA'.TE. - US Government ...

:~000 CONGRESSIONAL RECORD-·· SENA'.TE. APRIL 24 , I

. PETITIONS, ETC.

I, Under clause 1 of Rule XXII, pmi.tlons and papers were 1aid t>n the Clerk's desk and referred as follows :

I 2505. By the SPEAKER (by request): Petitfon ot Karl H.

M. Gardner, founder and chief priest of the Hol.Y Rosilrruclan I Church, Los Angeles, Calif., 11.sking Congress to take action to \insure to tllis chm-eh t'he right of obtaining .sacramental wines i the sa..me as extended to other religious sects; fo the Committee on the Jud'ici'ary. ·

2506. By Mr. GALLIVAN: Petition ·of Rogers & McClellan, Boston, l\1ass., protesting against enactment of House biU '6645, . which pre>pose:s to place the supervision of industrial alco'hdl under the prohibition enforcement officers.; to the Committee on the Judiciary.

2507. Also, petition of Maritime Association of the Boston 1 Chamber of Commerce, Boston, Mass., recommending the es. tabtishment ~f a h.arb.o.r of refuge at Assa.teague, Va. ; to the ' Committee on Rivers and Harbors.

2508. By l\1r. GARBER: Petition of citizens of Alfalfa ' County, Okla., protesting against any amen<lment legalizing I the manufacture of beer or wine ; to the Committee on the Judiciary.

2509. Also, petition of citizens of Perry, Okla., indors1ng the 11890 quota to be used as a basis for determining the number 1 of aliens to be admitted from each cow1try; to the Committee ' on Immigration and Naturalization.

2510. By Mr. GRIFFIN: Petitiem of the Church Peace Union, requesting Congt'eSS to reeorrsi.der its action relative to exclusion of J a.panese and a-dopt some meihod which wili result in the good will and frien.dsbip between the two coantries ; to the Committee on Immigration and Naturalization.

2511. By l\Ir. J'..A.COBSTEll~ (by request) : Petiti-0n -0f various citizens of the State of New Y-0rk, for an equal rights amendment; to the Oommittee on the Judiciary.

2512. By 1\Ir. KING: Petition of Lucretia Leffingwell Chapter, D. A. R., ·of KnoxvHle, Ill., in regard to changing the rrame 'Of Mount Rainier to Mount Taeoma ; 'to the ·OommitOOe on the Public Lands. ·

2513. By Mr. MOONEY: Petition of the cormcil -of the dty of Cle~land, indors'ing a Federal appropriation for dredging Cleveland Harbor; to the Committee on Rivers and Harbors.

2514. Also, petition -of the council of the city of Cleveland, protesting against the Bull drainage bill; to the Committee on Rivers and Harbors.

2515. By Mr. PATTERSON: Petition of 237 residents of Camden County, N. J., protesting against legalizln,g of 2.75 per eent 'beer; tu the Committee on the ;Judiciary.

('

SENATE THURSDAY' April, 24, 19£4

The Chaplain, Rev . .J,. .J. Muir, D. D., offered the following ,prayer:

Our Fat.her, we thank Thee for the m<>.rnin.g which Thou 1 hast given nnto us, for its brightness and ins!"1.ration. And we do ask Thee tbat we may be with higi1 endeavo.r moved by Thy l gracious spirit to do the things that sh8.:ll be agroees.b'lle in Thy sight. Help U'S to understand that our times are in Thy hands,

1 and that we <>Ught to liv:e 1lnd. love and serve acoe:rding to 'l"by good pleasure. \Ve ask in Jesus Christ's name. Amen. ·

The reading clerk proceeded to read the Journal of the proc-eeclings of the legislative day of .Monday~ April '21, 1924, when, on request of 1\fr. CuuTis a11d by unanimous consent, the .flirther re-ading was dispensed witb and the Journal was approved.

CALL OF THB ROLL a l\Ir. CURTIS. l\lr. President, I suggest tbe absence of a

quorum. The PRESIDE.i"'IT pre tempore. T-he Sect'etary will e.a.11 the

roll. The Principal Clerk ·Called too roll, and the fol-Owing Sena.

tors answered to their names : Adams Ball Bayard Borah :ft.nlndegee Brookhart Rruce

• Rursum Cantet'On Capper Caraway Cblt Co~land

Cummins Curtis Dale Dial Dill .lildge Edwards Elkins 'ErMt F:es:nald Ferris Fess Fttt<:her

Frazier Kendrick Geocge Keyee ~y , Ki~~ Glass IAl<ld

.J '

-Gooding Lodge Hale McCormick Harris MeKellll.r Harrison McKinley Heflin Mc'Lean Howen McNa.ey Johason, N.ima. MaFA.eld Joiiee, N. MeL Neely

.;:>··.·~ ,.,, __ l~~· -~~ .. .. :..;·. Morris

Jo'

OOdhl 'Sheppa·rd :Stall11ield' Ov:&man . Shields &anJ.ey Owen 'Sbipstead Stephens

• Pepper Shortridge St2rling Phipf>S Rimmo.ne S'Wllm;on Pittman Smith 'l'rammell

1 Ralston -Bm-oot Underwood Ransdell 8pencer W.aJ:sh, M.i..ss.

·wrush., M@nt. Wa1:.1.>eo Watson Whee'ler Willis

1

I

Mr. CURTIS. I wish to ann-oun.ee that the Senator from Wisconsin [Mr. LENROOII'] is absent on a.eeo'Wlt ~f illness. · I ask tnat the announcement may stan<l for the day.

The PRESIDENT pro tempore. Eighty-one Senators have answered to their names. There is a .quorum present .

MES.SAGE FlW.M THE HOUSE

A message from the House of Represeotativ~ by Mr. Chaffee, one of its 'Clerks, announced that the House had passed a bill t H. R. 4830) to provide for the protecti-on of forest lanus~ for the reforestation of denuded ar.eas, for the .extension -0f national forests, and for othe1· purposes, in order to promote the continuous production of timber on lancls ~ieny suitable therefor, in which it requested the conc.urreri-ce of the S~nate.

ENltODLED 'BILL AN» J-OIN'T iRESOLU"ffONS SIGNED

The message also announced tllat the Speaker of the House had signed a,n enrolled bill and joint resolutions of the following titles, l.m<! they were thereupO'll signed by ;the President pro tern pore:

H. R. 3761. An ltct for the relief of George .A~ Nic'kleS ; H. l'. Res. 2"22. An act granting permiSsion to Hugi {3.

Cumming, ·Surgeon General of tlle United States Public .HealUi Servk~e, to ·accept · certain decorations bestowed upon. him by tj:le Republics of France and Polaud ; and ' .

1

H. J. Res. 2'{!. AnJ ad: making an admtidnal .apJ,Y:oprtation for ti:1e Department ot Agriculture for the fiscal years 1'924 and 19"25.

P-OST-OFFICE BUILDING .A'l' C~INCINJ:iJ.4-TI, rt>HI{)

The PRESIDENT vro tempore laid before the Senat-e a oonimunication from the Secretary B-f the Treasury, relative to the bill (H. R. 4200) fo provide f1>iV the el:eaning .oef the exterior of the post-office building at Cincinnati, Ohio. which was ref.erred fu · the Committee on Public Buildings -and Grounds.

.-REPORT OF THE NEAR EAST .RELIEF

Th-e PRESIDENT pro tempoore laid be1loce the Sen&te a -communication fr<:>m ,the genet-al seeretarF of the .Near East Relief submitting the report cl tbe Nenr ~t Relief for the ~ear ended Decemher 31, 1923, which was referred to the Committee on Foreign Relations.

REPORT ON COND.I'l"iOON QF 1M.lLR0AD EQUIPMENT

The PRESIDENT pro tempore laid befora the SeJa.B.te a commURication from the chairman of the Interstate 'Commerce Commission, .. transmitting, in compliance w.ith Senate ResolutioR 438 (agreed to Februru.·y 26, 1:923), a report for the: month of ~Jar.ch, 19"'....4, showing the conclition. of .railroad equiplJ}ent and related infor.matiQJ.l., wllicb. was refer.red to the Committee on Interstate Commerce.

PE'l'fiID:M3 iA.'ND ME:kl'ORli.LS

The PRESIDENT pro tempore laid 'before ' the ~ennte a resolution of the 'Di-strict of dolumbia Society of the Sons ~'f the American Revolution, ·of 'Washington, D . . C., protesting against the pas~ge -of legi-sl:ation a'p.fll"'O:(>rhrtlb.g money or granting reli-ef b.Y the United States to ttre clvilhm IJopuration of Ge1·many untii that nation s'h.Mi have -shown its ,goo'd 'fn1th an'ti made -a fail" am:l reasonnbl:e effort to meet its oblie~tions, which was re:fen-ed to the -Committee on ,Foreign Relations.

He a'lso l'hid before the Sem.1.te a l'esplution of the Philadelphia Federation uf Churches, favo-ring the l>artici.pation nt the United 'States in the World Court, which was referred to th-e Committee o.n Foreign Relations.

He also lai'd 'before the Senate a -paper .tn th~ nature of a · petititm of the Ameriean Civil Liberties Union .• of New York

City, N. Y., praying that Congress tssue 11. ·declaration of em:nplete indeptmdence .for the Philil)pines, ettective as soon as the ctvil and military mpresenthtives of the United States can be withdrawn, which wis r~fe-rred to the Oummtttee oµ Te1·ri-, tories n.n-d 'Insular Possessions. ·

: 'Mi:. LODGE. Mr. President,. I present various petitions from the women of .Iowa, containing '3n,OOO signatures, ID. ~avor Qt a perman®t co1l:rt of international ju.stit!e as estabUshed by

, the Leagoe of .Nations. l ask t'hnt the petit1ons ·may be ;prop-1 erl.y referred. · ·

'T!l-e 'PRESIDENT -pro tetnpo're. The -Petitions will be refen-ed to the. Committee on lr.oreign Retations.

1924 CONGRESSIONAL llECORD-SErTATJ~ 7001

Ur. KL ·a. 1...l:iy I n~k the Renn tor whether hls committee simply cnrrylng out the splrlt of thnt right h~· pr":o;enting th , exp et· to rC'port out soon whnt mny lJc called the lfardlng petitions in behalf of the i;:ig-nL·1·s, the sif;n:itUl't"'S hnving bf'cn plu11 proYidiI1g_ that the Unitctl Statelii shnll become u member obtained lJy the League of Women Voter of .tmnne~otn. Tl1e of the lnt<>malional C<•urt'l petitions spenl· for themselves.

Mr. LODGE. I can not toll tho Senator. \Ve havo just I nm not prepareu at this time to fell tlie Reuntor ju~t whn.t ue~uu tile llenrlng . I think of this particular court or any other eom·t. I under-

.._ Jr. KI· TG. I co111m'Cn<l to tho chairman and Uio committee , stnu<1 thnt there is a prevailing opiniou umong·t mft11y pP.ople the attitude of former !>resident Harding nn<l PresiUent that mC'n who wuut oil wells and iron miue~ nncl coal mine Coolidge. \Vill use t11e military forces of n nation in order to get them.

l\Ir. rTIYltS. I ure ent resolutions adopted by the Junior Now there i" u proposition that, im;tead oE going witlL nrmed Order of Uniteti American Mccllauics of-New Hampshire, which forces to take property that belongs to other veo11lt>, the hold! ask mny be referred to the Committee on Immigration unu up mnn shall be nske<l to go into court to Iincl out '•hether printed in U1e fucono. . or not he will be allowed to go nnd hold up otl1et· poo111e~ 01111

'l'licre lJeing- no objection, the resolutions were referred to other nntions. There is n question in my rnin<l if you can get the Committee Oil Irurulgratiou and J;>rdercd to lJe printed in a hold-up mnn into com·t before committing the crime. the IlECOJ_m, ns follows: 1\Ir. l\IcCOHMIUK. I remember very well that when thPr~ nosolutions adopted by Junior Order of United American ~lt>chnnics of were being conducted the pourparlc.·rs whicll led to tho Wn:h-

?\ew Hampshire ington conference, uot rnNely limitation of nrmnment nn<l mutual reg-anl for posse.;-;sion. In the Pncific were i11dudNl

Wl.Jl'rcn!' WC hayc knowledge of the action Uken by the United Stntes in those JIOUt·parlers hut oil nl:-:o; thnt, whether it appenre1l Senn t.c ye terdny regarding our relations wilb Jo.pan and our llnml- of n .'<.!Ord or uot, our ot1icials were n_surecl tll:it Americnn ex· grutton law ; nu ploiter. or oil fiehls '·ould lmvc n fuir-:i. fnit', I sny-slww in

"'hcrcn the Junior Order of United Arucricirn ~fcchanlcs is an :\le:sopotumia. order compo <'d of -ruenibCI or Arn<'rlcan llirtll believing in tbe rcstrlc- Mr. P1·e~·idcnt, I hnve not hec11 le1l nfield. It is only he fiUiu tlon of ·Immigration nod firmly <lhcrln,,. lo our pl'inciples of lluerty and tl1e s1io11~01·s of these petitions Iun-e failed to dcHcrib tl1C'lll

patriotit:1m; nnd that I hn \'C svoken RO long. I recoguize, ns cvc>r,\' .'enntor rnu.-:t Wllercns, ·fthout mennln;;: to offend any nation, we do sincerely UP· recog-uizc. the rJi;lit of p~tition on the pnrt of the p ople i~

prove of tl.le ttctlon of the Senate upon the so-ca.lied gentlemen's a~rec- innlienabll' like the ri:.dit of equi\·ocat.lon 011 the port of the went and th!' IC'tter of n certain ntDba sndor, also we RPlll"QYC and com- State Depllrtment. mclltl to po tcrity the "declaration of precedent·· by Senator LooGE Mr. \VAHHI~.N pr·~f:ented n telegrnm in the nature of a

. in open x cutive scs 100 : Therefore be It memorial from the Dougln.' Community Cluo. of Dougla.', Wyo., J{esoll'ctl, That the Filnte k ii;Iative committee of tile order in New remoustrating ng-ain.·t uny nrnl'ndment to the tl'ani5portutlon

IInmpsh!re In a union meeting as cmulc<l at Newton, • '. n., do deelurc net of ln:.!O, wl1kh wn~ rereri·etl to the ('ommittee on Int~rthnt tile proceedin~s -0f the 8euato on April 14 W<'T"C entirely proper, 8tnte 'ommen·e. nP.cP ;;nr.r, and In clefcn c of tile princi11les our order holds dear, and l\Ir. PLBTCHEH. presented ll petition of suntlry citizen ·· of !or the l>c1t intcre t of our country. \Vl• ·t l'nlm Hc•ach, Fla., p1·a~'ing for the a1loption of thC' !:!O-

H olre<l further, That we rcgbslcr our npprcclntlon of lbo ,'canto·~ cnllc<l , 'l1ort ridge-Fo~tPr chil1l lalior eo11stitutionnl nmen1l-11ctl11n taken, n'gnrdl<'ss of consl'qucnccs, by tr:rnsmittlng this .copy nwnt, whic•h Wil. ' rc•fPr1·e<1 to tl1e CommittPe 011 the .Jncliciiu·y. or our rcsoh"e to the Senate tlirou;:-b Olll' Senator KEYE::l, so tllnt tbey l\lr. LADD vre eutcd the memorial of \V. ~\. Snmski nnd mn 1111penr in the Co:xunE. SIO."AL ItEcono. 25 other citiJr.eus of Du11.·eith nnd vicinity. in the Htnte of

Hlgnet1 nt Newton, N. ll., April 15• lU:!-!. North I>akotu, remonstrating u~ai11st the pn8~·a~e or le~bln-ITAnnY W. FLAXoEns, O/la.it'flwn, tion reou(·i11g the tariff on eg-g,, which wa · referrell to th IIE.·ny L. nunm:cK, Committee on Finance. CnoATB: E. McREXZIE, l\Ir. \VILLIR pre,· 'nted n p1:tition, numerously slg-nt Cl, or

State Lr.ni11 lnti 11 e Committee of Jwnior On'C1· of sundry citizen~ of OstrnrnlPr, Delaware, Guleuu, Su11hury, Uuitea Amcricaii Alcchanics of :Xcw llumJiBhira. l'owell, Leonnrd~hurg, i sllle '• null \Vesterville, nll in the Stntc

:Hr. SIIIPSTEAD. ~Ir. Prei.:itlent, I !)resent v::u~ious petitions of Ol1io, rm1~·Jng for the 1m.·~age of <lra.:ti<'ally restricti•e brm1 ·~1lt to me hy a committ e of tile Leng-ue of \Vomen Voters innnigrntion Jcgh;lation, with quotns lm .. e(l on the lSflO ccn u,.;, fron;' :VlinnesoL'l relating to legislation looking to the entry of whi<'h wns referred to the Committee on Irumigrntiun. the Unlte1l Stnff'._ into a world court. ...fr. OUH'l'I8 prese11tNl a re··ulutiou of tl!e Chamber of Com·

'1'11 PHi~.~JnENT pro ternpore. Tile petitions will he re- rucrce of Do1l~c City. Kan::,; .. filvuring r~duced trnn.-;port&tion :ferred ·to the C:ommitt e on Foreign ~elations. rate~. hut opposing nmendme11t of tl11~ trim ·portation net o~

l\Ir. J.'1 ·COIE\'IIOK. The iwe~entation of the petitions by tlle 1020 nt the 1n·p:..:ent time, which wns rcfrrreu to the Committe boiwrnble .~enntor from 1\linnesota [1\Ir. HIP 'TEAD] nncl tlle on Interstate Commc>1·ce. l1'inorable "'enutor from 1\1Rs~11clrn:etts [:\Ir. _Lonm-:l I a<ls me to He also JH'<'Rl'nte•l a vetition of ;-;umlry cit.iz0ns of Oherlm, ask if the e nr petitionH for purelJred, three-quarter breu, Kan._., praying for the urloption of th~ so-cnlled Mcf''4irmicl{ hnlf-hre<l, or qnnrtcr-bred lengue plun8? Cnn U1e Senntor cl1il<I lahor ameudment to the Co11:4titution, which \'rU" referred anf;WCI'? to the Uommittee on the Judicinry.

l\Ii· .• lIIPSTEAD. I cnn i;my lo the Senntor thnt so f1H ns I He also p1·ps.:•nted mNHnritH ·· of the \Vt)mnn'H Ollri~tinn Tem-ani concerne<l-- IJC'lt<.llH'e Union of ~cott Ult,\'; mcmhcr·:-; of the \Vornnn·~ Nu-

:\ll'. l\'JcCOHMICK. This i · a very matNinl in<1uiry, of tinrntl Committ('l' for Law Nnforcement of Ulny Center; awl com sc. of snmlry citizens of Obel'liu, nll in tile State o"f l\:un.:·a::.,

l\Ir. SHIPSTEAD. Of cour .. e, hut I am not m 'fl.re of nny remomitraUu.~ ngainst the 1mssn~e of ll"gl~lntion mo1lifyi11g the collnsion between the S<'nntor from Mn .. sac:huseft nnd myself. Yol~tcn<l Prohil>ilion Act ·o R8 to lc~alize the manufacture nn1l

~fr- l\Ic OHMICK. I did not menn that the pluns were .:all' of hN'l's and WillN!, whid1 were rcferrell to the '0mmittl·~ ori{.!.inf.<.tecl hy the Senntor from l\'Jussnclmsetts or the Senutor 011 the .Judiciary. from 1\linne. otn. I do not doul>t that the~· orlginnted far from • fr. FIL\7, I BR 11re.' f>11tecl u petition (J[ ~unclry memliPrs of th~ thP. 1 ·ationnl Capital. Wli.nt I want to know i · lf thO!o;O whn Sor11si~ Club (n women'..:: literary cluhJ of l'lurvey, •. Duk., <Icli\'erctl them here told the Senutot· whnt manner of plans 1irn~·i11~ for the pnrtieipatinn of the UHite•l States in th~ u.ey were? \Vol'ld Court, whieh wn'i referre1l to tlie Cu1mnittPe ou For i~n

!\ Ir. LODGE. I only know tbut tlH'~' nre petitiong whirh Hcl11tio11r:;. were handed to rue by women of Iowa, containing 3!i,OOO lie also 1n·e:-:1.•nted the p tition of Frnnk L. Glotzhnc:h nnd sfguaturcs n they toltl me, and tlley nre in foyor of the l'er- ~4 Diller citiZ('llS of. A11umoo~e. N. Dnk., 1m1yin~ for the r-:mnncnt Court of Intemntionnl Justice ns c tnoli heel by tlle moval or rc<ludiou of thP so-calle1l uui8nn~c n11d wut· ttL e:;, Le11~1.1c of 'ntions. espceinlly the tux: on i11clu:-;trial nlc·ohol, which was rl• f 'rred t•>

:i\fr. ~fcCOHMICr. They were h:rn<le1l to tl1e !:\enator nnd he the Committee on Ii'innncc. hn: 1>as. d the liuck to tl1e ._'e1rnte, as I l!ntllf'1'. HP nL o l11"C'sentc<l the petition of Otto' Tiutlt' an1l one other

Mr. LODG:h~. I IlC'\'C'r !mew anything to he thine with a cifown of P1·kin, N. D:ik., 11myi11g for the p1h~~age of the s.i· petition xc pt to pre ent it. If the ~enator hn any other called Norrls-Sinrlnir bill, vrovhllug :1id to agriculture, which 1<lea nhout )letitloni;;, I should he g-1:1<1 to know it. wa,· ref< rr 11 to the CommitteP on Ag-rieulture and Forestry.

:. fr. :.McCORMICK. I do not menn to irn11Jy, either, that the He.also presented petition._ of mcmhers of the ltolund 'L'own-Ex cntive h~u; pnRse<l the buck to tlie ~c11ate with some frc- ship Community Cluh, of 1Jotti11Pnu; of the ... ·ingnra-~huwrwe quency. Agri<:ultm·al Cluh, of J. ·ia~11r1t; of the Pierce Uom1ty Fnrm Uu

.. 11· . SIJIJ)~TE. D. I will s:u• to the ~enator from Illinois l'PHU, of Hughy, U!Hl ot' Gilhert rr110mp.·on :111<1 41 otlll'l' eiti;w11s t hat I Lelleve in tJ1.e ·ou'-'tltuti1)nal right of petitiou und I am of 1\lakoti, ull iu the State o~ North Dnkotu, imtyi11;; fo1· th~

00.r GRESSIONAL RECORD-SENA'rE 1

APRUJ 24 1

~~~~~--~~~~~~~~~~~~~~~~~~.--~~~~~~~~~~~~~~~~~~~~~~--' I

7002 passage of the so-cnlled l\fcNary:-Ilnugen export corporation hill, ·Which were referre<.l to the Committee on Agriculture and }~ore!=;try.

Ile nh:;o presentecl a mcmorlnl of members of tlle Associated Shop Craft Employe of the Grent Northern Rail ay, of Devils Lake, N. Dnk., rcmonstrnting ngnlnst the pnssage of tlle socnllc<l Howell-Bnrclay ratlwny lnbor bill, wllich wns rcfcrretl to tl1e Committee on Interstate Commerce.

He nl..o pr cnted r solution. of the Wllliston Commerclnl Club, of Willl ton, nnd the As~ociation of Comm rce, of ~Hnot, both in the Stntc of North Dnkotn, prote ting against any amendment to the trnnsportution act of 1020 nt the pre. ent time, whiC'l1 were referred to the Committee on Interstnte Commerce.

He nlso presented memorials of Iln.rry L. Simpson anu 7 other citizens (being members of the Internntionnl .As oclation ot Supcr>isor of Mecho.nics), of Axel Dloom and ~ other citizen. , of W. E. TntTord und 24 other citizens, and of John G . .Morri on and G3 other citiz<:n. (beint; mcmhers of the A o lated Orgaulzntion of Shop Crnft F..mplo ces of the Greut Northern Rnilwny), all of Devils Lnkc, N. Dnli:., remonstratin'"' ngninst the pns:~ngc of the so-called How 11-Barcl:iy rallway lnhor bill, '•hi.ch were referred to the Curumlttee on Intcrsta te Commerce.

RErORTS OF COMlfTfTEES

Ir. TRA::\DIRLL, from the Commlttec on Olnim , to which wa.· referred the bill ( S. 147) for the relief of Albert \Vood, reported it wit}l an amendment and ubmittcd n report (-4 o. 4.3~) thereon.

l\lr. C l'PER, from the Committee on Claims, to which waR referred t11c hill ( . 1574) for the relief of .Tohn O' ~eil, reported it with amendment ancl submitte<.l n report ( ro. 450) tl1er on.

~Ir. cun.·.ris (for ... Ir. IlAllBELD)' from the 0ommittee on Indian Affair., to which was referred the bill (II. n. 2 7U) to provide for t11e dispo. nl of homestcutl ullotmont of. decea d allottees within the llluC'lifeet Indian Re. ervntion, Uont., reported it without amcnclmcnt nnd submitted n report (No. 460) thereon.

Mr. BALL, from the Committee on tile District of Columhln, to which was refolTed the bill ( S. 12.'30) to mnend ection 11 of. tile net entitled "An act for tlie retirement of public-scllool teaC'hPrs in the Di trict of Columbtn,'' apprO'r cl January 1 ::>, 11>20, rcport<'ll it without nrnendruent and. uhmitted a report ( ·o. 461) thereon.

l\lr. S~fOOT, from the Committee on Public Lands an<l Snr'\"ey .• to which wn rcfcn-ed the bill (II. n.. 7; >0) to authorize the snle of ct:r nin lnnrls at or n 1r Ad~n, dn e iunts. Idaho, for railroad pnrpo e:, rcporte<l it without nmernlment and submitted a report (No. 402) t11ercon.

l\fr. NOHRIS, from the O<immittee on Agriculture and For· cst1·y, to wlltch wns referred the hill ( '. 1642) to provide for the purcl.rnse nnd snlc of farm 1n·oduct , r!'ported it witll umeu<lments uncl suhrnitted a report ( ·o. 4(13) thereon.

L'TOO.'ATIO~AL COU1'CIL OF WOMF.N

JHr. PEPPER. I report back fiworubly from U1e Committee on Foreign Uelation!"I without amendment the jolnt re oJutlon ( .. r. Hf! . 00) nuthorlziug an appropriation to clefrny, in 11ort, tlte ex1ien c. of the sidh quinquennhtl convention of the Int runtion:il Council of. \Vomcn, to he h •Id t \Vu hington, D. C., in ... lay, 1025, and I a k for its immediate con. illeration.

i lr. 8 ... IOOT. Mr. Pre. idcnt, ruuy not tlte joint resolution be rend?

!ilr. YI.i. ·c-;.. I object Let it go to the calenclnr. Then It rnny he eonsi<1ercd Inter.

The PHE 'JDENT pro temp<:irc. Obj ction 1. mn<le. ~fr. PEPPI1~R. ~[ y I nsk the S0nntor from Utuh merely

to permit tlle joint re. olation to lJC r au l>Bfore mnking h1 ohje<:tlon?

Mr. KLTG. Y<•ry '•ell. Tl1e P illi:SIDENT pro tcmporo. 'l'lle joint. resolution will be

read. The Secrctnry read the joint rosolutlon, ns follov\>·s: nc olvcd, etc., Tlmt there ls hrrC'hy authorized to be npproprlatt:>d,

out of any mon<'y In he Trcnsury not oth rwlRo approprtntcil, the sum of $10,000 for the purposo or <'lc:l'rnylng, in pnrt. the e. pcnse or t.he lxth qulnqucnninl convention of the International Councll of \\' omen, to be held t ·waRhfngton, D. C., fn lny, l 025.

l\fr. PEPPER. 1'-h'. Pre! idiJm, this ori:;nnlznlion is an intcrnntlonal orguoization, r 111·csenting orgnn\7.ed HO<.:iettcs of women in this un1l otb r countric.', which hns held 11l•rctofor.e, nt Sto ·kl1olrn nn<l Home uml other plut·cs lu ltnrope., meetings of tl1e quirn1ue11uJnl international couvcntion. \Vushington

has been selected for: the ensulng, or sixth quinquennial, whlcll1

will meet next year. This is n joint re:;olutlon wllich, 1f 1

adopted, will merely signify, on the pn.rt of tlle Congress~ ' good will townrcl this great organization, which reprc~nt 10,000,000 women in this country a1H.l a great mnny more millions in other countries. 'J'he joint resolution uutlmrizes nominal appropriation for <l fraying the expe.n.,t> which ur lo bo met at lnrge lJy vrin:tte or 1iopulnr subsc:ription.

I \Cry much hope that immediate consi<lerntion rnny be given to the joint resolution, and that fnvoruble action mny IJe U:.ken without objection, l>ecausc it is in liue •ith such ugge. tlon n we made recClltly in fuyor of the meeting of the interp::n·linmentary union here and measures of a shnilur sort. I hope tllP Seuntor from Utah will not pross his ohjec!lon.

l\Jr. KIN'G. ~Ir. President, of course 've nll sympathize with the humnnitnri:m mul so"'ciul activities of these organization , hut I su~gcste<l thnt the joint resolution ought to go to the cnlf'n<Jnr in ordc-r that it might be con ·uerecl in connection with other meusures tlmt nrc on the cnlentlar nnd pressing for c01rnl<'lcratlon. "'e shall reach it a little 1 tcr during the morning hour.

The PRESIDEr ··r pro tempo re. Objection 1~ made, nnu tlle joint re olutlon ~oc. to the calendar.

Mr. McKELL R. :\fl'. President, I de. ire to ask the Senntor from Pennsylvanin a que tion. Hus this matter been before the Committee on Appropriations? It seems to me thut the Committee on Approprht.tlons authorized nn approprinllon for thi~ purp<1. e just n <lny or two ago. I nm not sure nl>ont it, and I nm merely n klng the Senntor from PennRylvunin.

Mr. l'EPPEU.. ... o; my un<lerstunuing is thnt it wn. sug· g0sted tllat an item covering nn appropriation for this purpose l.Je in .. rted in the State Dcpnrtm nt appropriation blll, but the committee tllouglJt it hould be mn<lc the subject of a epnru le hill.

l\Ir. l\[cKTI:LLAn. I m>ty be mistaken about it. I thong-ht, however, tl1at it had nlrea<ly been <lone. I think the joint re.·olution ought to puss.

Mr. SW A' .. TSON sub. equently salcl: Mr. Prcsldcnt, fn ref· erence to • enntc Joint Ile ulutlon No. !lO, which wns rcporte1l uuanlmously from the Oornmtttce on Foreign Relations by the Sena.tor from Peunsylvani [Mr. PEl'l' J a few moments ago, autllorjzln~ un appropriation of $10,000 for tile entertainment here of the International Coundl of ·women, I wish tu ay that it has h~ cu tomnry whenever n large internntioual gathering is held In Wa ·hlngton for the Government to avvroprinte n certain sum of money to help entcrtaln Uic <]el 'gates. Thi i• one of the lurgef!t wonwn·~ organizaUons in the world and 1 J:n·gely rcin·c. "Uted in ~\mericn. I hope the Scnutot." from Utah will not ohje<;t to the immc<.linte coust<leration nnd pa:-;snge of the joint resolution. H it shoul<l go to the culeudu1·, it might lJc some little time before it couhl he Jl!lS8C<l.

Mr. KL. 'G. l\fr. President, there will lu1 such an enormou <lcHcit nu.· ':.lY ns o. r ult of the e:>.:travugnnce o( this Uongrt>.·~ that the $10,000 a knd for now will not ucld very much to tlle ~um tot.al. I withdraw the objection.

'l'hc PUESIDEN'r pro tcmpore. Tlle Senator from Utah witbdrnw his ohjection.

The Senate, n::; in Committee of the 'Vhole, proeeecletl to consi<ler th joint r~solution ( . J. Res. 9U) authoriziug an fil)pro· prlation to clefray in vart Urn expen CH of the sixth quiuquen~ niul com·ention of the Jntenrntlono.l Council of Women, to be hPltl n t Washington. D. C., in May, l!l:W.

The joint rc.·oluUon was reportctl to Urn Senate wHhout amendment, orucr 11 lo 1'e Cllb'TO. ·cu for a t.hircl reuding, read the U1il'd time, nml pnssed.

nILT..8 I. "TRODU~D

Bills were intr0<lucctl, read th• first time, mHl, by unonimou co11s<'nt, the second time, und referred u o1lows:

ny. Ir. HAN ... DI.JLL: hill ( ,", 31fil) to creU;te the inland waterway. corporntion

!or tlie purpo e of cnrrylug out the mnndntc nnu purvo.: of Congr B. ns expr . s d In ::; etions 201 nn<l 500 of the trm1si1or· tntlon net, and for otl1er pur1ioscs; tu the Committeo on "umruer<'c.

Dy • Ir. S'flmLL'lG: A bill (S. 31n2) authorizing tlte Postmaster GC'ncrnl to mnkc

monthly paym<'nt of rcntnl for post-omc•i_ pr mis un<lcr lC'U ; to tlic Commltke OJI PoRt OHkcs mid Po~·t nouds.

By • rr. SIIOHTRIDGI-0: A urn ( S. :HG:J) authorizlug the Postmustcr Geuernl to invc~

tlgntc a.nil contiuu~ 8tur-routc conlra<.-ts 11ow In operation on routes between Hc<l.diu~ nncl \Veuvervillc, Cullf., anll b tween llcclllillg uuc.l Iliebcr, Calif.; to the Cowmittcc on l'ost O.tlkt> nrnl I'o~t Ito ic.1".

I

1924 CONGRESSIONAL RECORD---SENATE

By Mr. AOAM:S: the Allnttal dohVentioh of the Nationnl Asscre'iatton 6f the1

A bill ( s. 3164) for the relief ot L-ewis B. Easterly· and Daught~rs bf 18i2', at Washlrtgton, D. c., Aptn 22, 1024. A bill ( S. 3165) fo'r the relief of Geotge A.. McKenzie, a.Has There being no objection, the addr:ess was ordered tO' b~

William A. Williams; to the Committee on Military Affa'.irs. ' printed in the RECORD. as follows: J ny l\fr. SHIELDS : . A bill ( S. 3100) authorizing the Secretary of War to donate Mr. '.RoBtNsoN'. The delegates and vlsitots attending this annual eon·

1

to the State of Tenness~e four btas'S cahnohs with carriages; vention ot fhe Nati6nal Associatloo of the Daughters ot 1812 ate' to the Committee on Military Affairs. repre-aentatlve' o! the patriotfe and progtessrve elements in Amet1C'a~

Ily Nir'. IlAllRISON: eltizenshiP'. The t>tga.hizaUon appi•oprlately perpetuates popular appre-A bill ( S. 3167) for the relief of James lfrancis l\1cDonald tiatlon fol! an ftrrportant petiod in Amel'tcan history, a period crowded

and Sarah EllzahHh McDonald; to the Committee on Claims. 'With names afid achi~vements worthy to be comn:iemot!ted. I By Mr. EDWARDS: _It reqtiited a second c1asl'l ot arms with the- British Etnptie-o-the A bill ( S. 3H>8) to amend the net of Congress approved War ot 1812"'""-'to' establish the complete inde-pendence of ut'lr ancestor!'

1

l\larch 1, 1920, entitled "An act to regulate the height, ar-ea, for in sPite ot the' triumph of the colonists, slirnalized by tile fir~ 1

and use of building8 in the Distl'ict of Columbia, Knd to create estab1Ishmenf of the Union llnder the Constttuti'oli, Grent BritAtn.1 a zoning commission, and for other purposes '1 ; to the Committee sought forcibly to eotnpel Atnerican seam~ born in Britatn to- setve

1

on. the bisttict ot Columbia. . in her navy. I 13y Mr. PHIP'PS ~ The untrained, ill-equipped, and halt-fed atmies of the Union whktl A bill ( S. 3169) to provide for the payment of construction advanced to 00.ttle against thoroughly tratnoo and well-supplied soi.I

charges upon the Uncompahgte Federal irrigation project at di~rs overcame the disadvantages under which they fought by stub·: the rate of $1 per acre per annum ; to the Committee on Irri- born purpose and unyielding courage. Our fighting men at sea proved gation and Reclamation. ~orthy of the cost aDd effort made in their behalf. Through the smoke

1

By Mr. WAD SW ORTH: and thunder of ·fleree aad unequal combats their valiant hands npli!ted. I A bill (8. 3110) for th'e relief of Edgar William Miller; and in victory a new emblem, the e11sign of the American Navy, I A bill (S. 3171} for Urn relief of sufferers from earthquake About 110 years have passed since the close of the War of 1812.!

in Japan; to the Committtee on Military .Affairs, These years have be~n fi~d with revolutions. The map of the world I F!SiPRitscm s·rATION ON THE irtssrssIPP! RIVER has been made- anew. lmp:roved processes of communication have

eccoml)llshed rn<licai. chang~s Ni the hallits of civllized peoples. The 1

Mr. CURTIS. (for l\.'lr. LE~ROOT) submitted an amendment Battle of New Orleans, the most d-ecisive land 1engagement of th~ war, ! intended to be proposed by him to !louse bill 8350., the State, resultiag in complete victery to the United States, was fought long Justice, etc., Departments appropriation blU, \Yhich wa~ or- after th~ technkal cloae of ·the war th.rough the treaty of Pari& Such dered to lie on the table und to be printed, as foliow's: an incident wo-uld be impossible now. A treaty signed in Paris at noo• '

On page 88, after line 19, to insel't the following. ro-day would be pub~hoo in New Orleans within o.n beur, and lt11 "The npptopriatioti of *40,000 for •the ftseal year 1923 for the details would ~ transmitted by telegraph, by telephone, by wireless, 1

C!lftablishment or a fu!h•tescue statiofi OD the Mississippi River made and by rad.it) to the remotest vUlages before sunset. r (

l>y the deficiency appropriation act approved JolJ" 1 , 19221 is .hereby a'hese cbangerd conditfons have brought nearer to every citizen the continued -aDd made available during the fiscal ;,eat 1925." prt>blems of his nel~bbora and to our GoverlljlQent the difficulties

1IO-Usll1 iJILtS '.B'EFittrtrtro whfrh other peoples seeg to ~verao1De. It ls both a privilege and a ret1ponsH.>i1ity h> live in tile l)resent, when the obligations o.f citizenship

~.rhe bill .(H. R. 4880) to provide for the protection of :forest are augmented by expanded opportunities and mllltiplied facilities for. lands, for the re:fo~tatlon of denuded, areas, for the extension service. '.rhe member11hip of this organization is demonstrative of the ot na,tional fore.<Jts, and for other pm:poses, in order to prO'IDote highest standards of ablllfy and character. T'b.e women who compose th~ eontinuous 'proonction of tlwber on lands ehi-efly suitable th«:r Natto'l'lal .Assod:ttfcni o't fhe Dnughte:rs M 1s12· ate ~vot~ to the tberefol', wae 'ead twice by its title and referred to- the C<>m" principleS' upon Which this- <Mve'tntnetit isl tran1ed. They believe :Iii mittee on Agriculture and Forestry. freedom nfld Mfpfufoess. With nt>npartitJlin {1atrlo'tlsm att4'- u-n~rflMI. ' 'Ille bill ( H. ·R, 8262) to tilt .the rompensation of omcel's end sac1•ttt~e thet cl:f etish fr~~t16lli df re1fgidii, :fntidot11 O'f ~ecll, tteea~ employees of the- . 10gisla.t!Ye brancll of the Government, . which ot the pt~ss, aM o'f the petson. i"hey can be ttttstet'J to. perform th'etr bucl p.revi()usly been read twice by its title and orttered to lie on part in making these prt'tiMpil!s koown fti @1'ert epllete. tilre ta.l>le, W&Bf on motion of Mr, \VARBEN, refan>ed to- the J<>iat Pl\PFou.sn D!TERES'.r tN- ttoxilh ooWRN':MENi' AND THE PROlfOTION oF

Select Committee- on Adjustment of Compensation <J:f Offietrs · Pt.wlll anGl Employees of Congress.

Two reforips, a1·e close to ·th~i hearts of good women. ev~wfl.ere--i S.ALE OF COTTON FUTURES cl~an government and world peace .

. Mr. _CA.RAWAY. Mr, P1·esident, there is on the desk of the it is a common mistake when eviI cci.iiditions ate f'ou·nci to se k fle'W President , of tJ.:re Senate a motion to discharge the Committee ia,vs !or their ~1Iminatfon. Tne true remedy ls n&i aaditfond OU A.gl'iculture and For~try from the consideration of Senate statuh•s but the honest enforcement ot exlst1Qg laws. 6-ithe ~i:! dh bill 626. I should li:ke to have that motloo lai4 before the oflspring of contempt for iaw. 'rher-e exists a genetal lack ot i'espect &mate. fo:i; authority whkh constitutes a serlo.d~ menace to happiness througi.t.

The PRESIDENT p-.ro tempoi·e. The Senator froin Arkall8as out the UnHecf SbJ,tetJ. ~he puI1llc c0nscience needs to be aroused. calls up the following motion, which wlll be stated. Every whole.some' influence must be i!x~rted to cuitivate sincere tegatcf

The READING CLERI{. Oa April 10 a motian was entered by for the pi;ineiples on wQ.ich our system of. iuslice rests. Yo'U deEterve the Senator from Arkansas as follows: encouragement and support !ro.m private c;itlzens and public om:cers in

1 the firm stand of 1our as~ociadon for sane and honest law enfotc~ I hereby enter a motion to discharge the Committee on Agriculture ti r 'f he ment. The issue is of supreme importance. J\lStlce can not be ini•

lin Fo estty tOtn t turtli~r ronSidel'&tlon of the bill (S. 626) to partiallv. administerecl 'wnen favoritism and bribery are common. inJete'nt' the sale ot ("(jttO!l and gram ID ftiture mar'kets. '.rhe tttsi ot ext>bs'ure- is alwds distastetul ild frequently provokes

The PRESIDENT pro tempore. The quest1on is upon agr~· mistlnEJerSta1Hling an(} reis.eirtn:t~~t. littt· Mi\est eittrens can not whrte-irr~ to the motion, wash tMSe who di~~e thett offices by C\1rtupt p-racttc-es. The' best

The motion was agreed to. , l"elia:tl'~ fo-r the pt'esel'vlitlo:l!f ot &ur- lilstltutions Is found not lu the The PRESIDENT pro tempoi;e. The Committee on Agricul- eoilc~allhent of fratM and disho.nest:Y but in its- e:tposul"e and pteven~

ture and :JJ'orestry is discharged f1;oin the iurthe1· consideration tlon. Who has not been disgusted by notorl6us vlola0on9 of tltQ of tl;le bill. prf>'hlbition laws? The tlislt ot eorllpeUing r~peet for thet!e statutes

Mr. NORRIS. ' Mr. President, t think lt ought fo be an- ln martr e&rnttiunities is ileceas~i-tilY ilfffic't:tlt.. Tlite wh'Ole•hearj:ed coa. :hounced by the Chair that by virtue of the motion having been opera.Hon of all wlio d~ir~ that oult G<YVer'n~nt shllll be properly agreed to the bill automatically goes to tlle calendar. l'espeeted i's needed t& avert dlsgraeeful fB.ilure. The lllicft Itquor

l\.ir. CARAW' AY. I 1iave no objection to the bill going to t11e business ni111.n b'e' made til!lP0\}11lar befote it can be termillllted. Boot4 calendar. . leggets wm go &ut of btiM:ne8s wfilln rt~ctable ei'tizena cease t& ~he P:tlEStbE:N'11 pro tempore. It is the opinion of the Chair patron!~ thell1. What more · harmful thing can c6'1De than the break! ..

tlmt the bill must go to the calendar. d&w'n lVhith pr~~nt eonditionS< tespeetlng prolii'bition entoccement l\lr. NORRIS. · Yes; that i~ my understanding. tlireatens? New la#'s are not ttqulred. W.ha'I! the ~ountlt'y n.eeds is

stta.ightfontard en:fo1'e'ement of the ln.1\"s we ha-ve. Thill c-a..n not cam• .ADDRESS BY SENATOR ROBINSON, OF AllKA...~S.AS if those ci1atged °\'Vith enforc~itient pr'Otlt ftom vitHiitio'tlS-. The only

Mr. CARA WAY. Mr. President, I ask unattlmo\Is c6nsent effective rem-edt is to be tolinll in vitalising A'1fd givln~ exp-r~si'on tit to have printed in the RECORD an address 'dell-ver'e'd by iny rol~ public sentithent fn fsv<>i" M. maintaining reepect tor all laws, inclad .. league, the senior Senator ftbrn Arkttttsag [:Mr. RotiINSO?li],· at mg tho.se i;te1'talnil'l'g ti)' itto!UOOti<>ft. The irt'Oblem ls ea.Slly stated -.ut

7004 CONGRESSIONAL RECORD-' SEN ATE APRIL 24

quite difficult to solve because of the combinatiom1 of secret interests and intluences constantly at work to cause confusion and to prevent enforcement.

PROMOTION OF THE CAUSE OF PEACE

The promotion of the conditions which make for permanent peace has been disappointingly slow. During the World War it was frequently said that the aim of the United States and our associates in the conflict was to enll wars ; to establish a reign of reason and justice which would compensate for tbe sulfering and loss attending, the conflict. Into the maelstrom . of wrath and destruction the nations pouretl their best blood and richest treasures. The hope was almost universal that the future would be safeguardetl against the recurrence of international wars. That hope mitigated tbe pain of the wounded, sustainell the dying, and consoled the bereaved. No such result has come nor is it in immediate prospect. .A. casual survey reveals the alarming fact that military power is still the chief reliance of the nations for the settlement of their disputes.

COllIPAlllSON OF PRESENT WITH AR!IIIES BEFORE THE WAR

A study of national armaments gives rise to the tear that fiercer struggles may come in spite of the efforts and sacrifices to prevent them. The standing armies of Germany, Austria, Hungary, and Bulgaria have been reducell from approximately 900,000 in 1913 to 200,000 men in 1922, but in spite of this reduction the aggregate strength of the standing armies of Europe has been incrt-ased during the same period by approximately three-quarters of a million soldiers. This means that in the remaining States of Europe the number under ar.ms bad increased ln 1922 by more than 1,300,000 as compared with 1913. In spite of the fact that few European States have been able to balance their budgets, the majority are annually increasing their debts because of military ei-penditures. The active forces of France, Great Britain, and Italy have been slightly reduced, but this bas been more than offset by increases in · the standing armies of the smaller and particularly of the new sovereignties eRtablished through the war. The armies of France, Great Britain, and Italy number approximately 1,100,000 me!}, while those of the l'emaining States of Europe exceed 3,250,000. The smull States bordering upon the western frontier of Russia maintain 650,000 men. This growth has come in spite of the agitation in favor of disarmament and world peace.

REVIEW OF PROPOSALS FOR Pl:JACE AND DISAlUlA:IIE~T

In spite of efforts emanating from The Hague, the Interparliamentary Unlou, the Washington Conference, and the League of Nations, military power in Europe bas grown rather than diminished. Underlying this remarkable and appalling fact are national jealousies, batrerl'R, and fear>l which, while they last, make moral peace impossible and actual wars exceedingly probable.

THE WASHINGTON CO~FERENCE

Two years ago the President, at the request of Congress, conven'ed the Washington Conference, primarily to promote the Umitation of naval arms. Its deliberations brought to the surface hitherto hidden or unrecognized difficulties. The results of the conference .were di'sappolnting, merely causing the destruction of 68 capital ships and a limitation on the construction of aircraft . carriers and capital ships. The nations were left free to compete as to other forms of naval armament, including light cruisers, flotilla leaders, destroyers, and submarines. One writer bas said that the naval treaty ts comparable to a dam which extends only part way across the river of naval competition, thus concentrating the flow of the current in the unrestricted part of the channel. For this fraction of success the United States agreed not to. further fortify our insular possessions and naval bases west of the Hawaiian Islands and Alaska in order to secure the conJurrence of .J'apan in the capital-ship limitntion.

THE LEAGUE OF NATIONS' PLAN FOR PEACE AND DISARMAMENT

. The scheme for world peace incorporated in the League of Nations' 1ovenant embraces an agreement among its members to reduce all classes of armament, so that it will be adequate only to prevent internal disorder and to enable the respective nations to fulfill their International obligations.

Under this contract the Council of the League, February 5, 1921, "oted ~o create a temporary mixed commission on reduction of armatnent. The commission first met at Paris in july of that year, and throughout the period that bas since elapsed bas gathered information and studied the problem from every standpoint. It has identified certain obstructions in the way of prompt reduction. The unsettled state of reparations. and of interallied debts, the fluctuation and depreciation of the exchanges, a.nd the confused and numerous economic problems, added to the survival of war hatreds and the perpetuation of racial and national animosities, have prevented agreement on a plan for disarmament, and probably will continue to do so for an indefinite period. Every financial and moral consideration calls for reduction and limitation. The excessive tax burdens imposed by present military establishments, the excess of expenditures over revenues in nearly all the

nations, and the consequent impairment of national credit, the poverty and misery of many peoples, and their dC'Sire for relief are, however, overcome by fear of potential enemies who themselve·s dread attack from others.

The Assembly of the League of Nations enunciated four definite principles as essential to the reduction of armaments:

1. That no plan for disarmament can be fully successful unless it is general.

2. Before the nations will reduce their armaments they must receive a satisfactory guaranty of safety.

3. Such a guaranty may be provided in defensive agreements, general or regiona I.

4. That a treaty of mutual guaranty can only be justified if previous consent to reduction is given.

The plan for regional guaranties called forth reports by various States revealing the dread that partial treaties of guaranty would sanction a retum to tbe system of military alliances, which instead of insuring peace have usually caused States to increase their armaments.

THE UNITED STATES SHOULD PAilTICIPATJil

The United States ~bould participate whole-heartedly in the enlightened movement for the reduction of armaments and the peaceful settlement of international disputes.

We have refused to join the League of Nations, largely from fear of again becoming involved in European wars. No substantial sentiment in the· United States would leave to any European influence a voice in determining when this Government shall engage in war or how we shall prosecute future conflicts.

With this in mind and accepted by all other nations, we may wisely cooperate with the League of Nations for the consummation of the major purposes which prompted its creation.

The league has functioned in a surprising way to both its proponents and its toes. It bas become a gigantic clearing house for international complications. The foremost publicists and profoundest students of our time participate in its proceedings. Champions of the league now know that lt can not compel unwilling nations to submit their disputes to its arbitrament. At the same time, those who at first feared the league would become a superstate, criticize it now as too feeble to be effective in maintaining peace.

Our Government, in a quasi official way, is cooperating with agencies of the !('ague for the Ruppression of the trade in opium, .the white-slave traffic, and to prevent the spread of diRease. It has sanctioned and enoouraged elforts by experts to work out the reparations problem, which seems preliminary to stabilizing the exchanges and readjusting economic conditions.

The United States should enter the Permanent Court of International · justice, not because it is an ideal tribunal or calculated in the immediate future to become a decisive factor in promoting pence, but because in so cloing- we will contribute to the substituti<>n of understanding for hatred and the i·eplaceinent of suspicion and antagonism by good will and that friendliness of feeling which are indispensable to elfective cooperation.

By participating in the court we will strengthen it ln the confidence ol mankind and make it potential for the administration <>f world justice.

Not only should we join the Permanent Court ot International justice; we should also participate in the league's- efforts for disarmament. Partisanship and prPjudice nrnst :aot prevent our Government from using the informati<>n obtained by the League of N1ttions' commission on disarmament. We may wisely avail ourselves of the wisdom of the great thinkers attracted to Geneva by the noblest cause which can engage the minds of men-the cause of peace.

ADDRESS BY HON. WILLB.M G, M:'ADOO A.T SA.LT LAKE CITY, UTAH

l\Ir. KING. l\Ir. President, I ask unanimous consent to have printed in the RECORD ru1 a<ldress delivered by Hon. William G. McAdoo, former Secretary of the Treasury, at Salt Lake City, Utah, on April 7, 1924.

There being no objection, the address was ordered to be printed in the RECORD, as follows:

The women who conceived the idea of the " Rchool of democracy " have made a distinctly valuaule contribution to prog-ress. There is no more interesting study than democracy, and there is no more valuable education for the American citizen than a knowledge of the meaning. purposes, and principles of di>mocracy. Next to Christian training, education is the essential foundation of good citizenship. This is becoming increasingly manifest, because the growth of population an<l tbe complex developments of civilizati6n arc constantly making the tasks of democracy more intricate and serious.

l::lelf-government is the most difficult of all human institutions. In no other form of government is it necessary to maintain so high a standard of citizenship as in a democracy, because democracy rests upon the character and quality of its cit~ensilip. Illiterate people are incapable of self-government. Illiteracy is the chief foe of democracy, because an ignorant electorate is caoily aominated by clas~c:s or

1924 CONGRESSIONAL RECORJ>-.-.SENATE .700S powerful groups or by the infh1euce of J1L0uey, and when that conilltk>ns arises, democratic government exists in form only. The funclameDtal problem of democracy, therefore, is the individual cltillen.

Success of democratic institutions must proceed from the individual. The continuous; problem, therefore, is tlle development of indiYidnul characte1· and intelligence. Success in any democratic undeTtaking is possible only when the process of' ·perfecting the individual is constantly pursued. We must create in every citizen that essential selfrespect and sel1-restTain which, in a democracy, is the substitute for the external restrn.int imposed upon the citizen by tbe will of the autocrat under arbitrary forms of government.

The development of' the incltrldual in a democracy ls obtained mainly through the processes of common living, and in those processes there must be a constant cultivation of' the highest moral standards and spiritual qualities because they are the indl1:1pensable guaranties of ' Christian conduct and democratic citizenship. The Rtruggl~ for eltiI.ien-ship is in itself' th~ struggle for democracy, and the' success of the struggle · for citizensbir> means the success of the struggle for demoe:rncy. It is, primarily, the task of the church, beca11Re it is through the teachings of' Christ •as expounded by the church that the spiritual and moral forces of humanity are constontly strengthened and r&plenished. 1t is, lil~eonl!arily, the task of the schools and colleges, because it is through the dlf'lusion of knowledge and the cultivation of the human mind that the titizenshlp of' a demOCl'acy can be bulwarked against ignorance and' intolerance.

Good cJtizenship begins with moral character and the churc-h is a greai: teacher. The religion of Christ and the Ten Commandments· are the very foundation of Christian character and the very Gibraltar of democracy and democratic citizenship. 1 The granting of full politieal rights in 1020 to women was 11 step or profound importance.· It was the application of the fundamental principle of the Democratic Party-equal opportunity for all. Women had been discriminated against throughout the eenturiea in the mutter of political rights, and even in our great democracy it required 131 yeall's to aonvinae men that women were entitled to equal rights or full citizenship tn this great demoeracy. Thie emaneipati-0n of women from polltwal inferiority thrurrt UJ>Oll them suddenly a political power and infinence, the significance and etrect of which ts not yet fully appreciated. How will women exercise that power? Certainly they can not e:xerdse it effectively and righteously unless they study and understand the principles anu proulems of democracy. Your " schools of democracy," tberefoie, serve a high and 11.dmirable purpose. Never . was there a time in the life of the Rel)ublio when ge>od cifuenship Wt\$ more needed than now and neYer had :women a greater opportunity t-0 help (lreate the right kind of citbienshlp. Never was there a time when the church had a greater mission to perform in stimulating and maiutaining high standards of moral cbuacter and righteo.u~ness thalll now. A great cru1mde of the womeu of America for individual and political righteousness is more needed than ever before in o-ur history. because there bas been an alarming deterioration of spiritual and moral force in the United States since the World War was ended.

The Republka.n· element in our leadership has condemned idealism and hns exalted materin.li~m to such a d~ree that there hnEI been a marked debasement of public and private· standi.rd111 of morality since the wnr. Men's thoughts seem to be centered almost wholly upon the mn.terial things of life under the impulse of false political and economic doctrines. This ha& resulted in a growing indifference to the chur~h and to that tl.M idealism which always indicates the highest spiritual <iuallttes and the nooler aspirations of' n people. The imperative need of .Anrerica to-day is to reincarnate and dynamitize the spiritual and moral forces of our country, to elevate our political standards, and to iMtitute an irresistable Cl'Uflllde for righteousnel'ls which v.iU bring the ~ople back to thoee finer and highet' concepttom1 of duty and resp()nsibility which are at on<"e tht: very eesenee and the absolute safeguard of democra.tic institutions.

The shocking sctllldals at ·washington are conclusive proof of the deliasemenl: of public morality of which I sp~ak. If the crime of Secretory Fall hnd been n sporadic ~ase of dishonesty and faithlessness of a high administration <>fficial, it would D()t be fair to indict Republican leadership in its entirety. But Seereta-ry Fall's was not a sporadic case. He was only one of the loadin~ figures in the carefully organized cone;piracy on the part of sinlste~ influences to despoil the Nation of the great oil reset·ves whtcb had been scrupulously pre-11erved by the Wilson admlnl.stration for the protection and security of the Nation in time of war. This oil scandal ls a striking exhlbitio;n of the subordination of' patriotism and lclealism to the bairn cupidity of materialism and selfishness. It ls only one of a number of painful nnd humiliating scandals as di&"closed by the investigations now in progress at Washington. Other great departments and bureaus of the Gove1·nmeut are permeated with graft, Qor1uption, and incompetence.

We pa.<3s from the oil sca.udal to the Veterans' Bureau scandal, than which no m~n~r or more. contemi>tlble Cl'ime acalnst the lnno~ent and ' helpless can b~ {pun,d. In ev011y hOiJpital 1u the land disabled veterans .o-.f tll• WQrld Wll.1' are delleQdent ~pon the honea~ and efficient adminl•

tratlon of the VeteTana' IBureau. In these hospital& are to be foond men without legs, men without arms, men without eyes, men without tongues, ·men without reason, hopelessly and iPretrievably disabled and deprived of sanity never to be regained, enduring sacrifices greater than death Usotr, and yet robbed of the care and the comforts-eve11. the essential medicine and supplies-which had been generously provided for thellY by the American people through thefts and f'aithlessnes11 of those nppolnted by this rtdministratlon to operate the Veternns' Bureau.

The prohibition scandals are obnoxious and humillatlng to every lover of law and . otd~r and to every good citizen who respects the majesty of our Constitution. Graft and corruption stalk through the- administration of these laws Ilke a menacing shadow over the . lnnd. A witness on the stand a few days ago before the Senate comtni'ttce confessed to the payment of ~150,000 to secure illegal permits 'from the Department of Justice and the Trensury Department to carrj' on illicit and bootlegging operations. What a prostitution of justice and what a debauchery of public and private morals is involved in these indefensible oft'enses ! Among those most responsible for this state of affairs are wealthy and highly educated classes who boast of law erasions and set an example to the people of contempt of lnw which can not fail to produce hurtful reactions. These wealthy classes nre chlefiy responsible for the nefarious trade of the bootlegger. A proper regard f'or a high standard of citizenship and morality would make these wealthy classes set a worthy example to tbetr fellow countrymen or respect for law and patriotic cooperation to enforce the lnw.

The Department of Justice scandal, now in process o; exposure, ls a crown of shame· upon .the Republican leadership. The Attorney General of' the United States, ~be Secretary of the Navy of the United States, driven out of office by the censure of the Senate of the United States, Republicans joining with Democrats in passing resotutlons of censure and investigation!

These high crimes and misdemeanors against democracr must h~ pqnished so mercilessly that no mnn hereafter wlll dare to commit them. They strike at the very life of the Republic. Tl1e punishmen,t ·fixed by law is Wholly inadequate to the gravity of these ofrenses against tl'le State. Traitors in time or war are no worse tbaµ traitors in time of peace who undermine, in this $iJlister fal!lhion, tb.e very• foundations of our institutions. These crimes could not have been committed unless thel'e bad been n debasement of private an<! political .mora)s of far-reaching character. It is not because Republican leadership and a Republican administration is responsible for these grave offenses against the nation that Democrats have ~xposed ·them and demanded punishment of the guilty. It ts not a question of partisan politics. It is a question or morals. What Democrats condemn and every good citizen copdl!mns, regardless o~ political ,affiliations, is the debauchery of public morali~y which has made possible under this admlrtistration. these crimes apfnst the puhilc welfare. ThroJJgh purity of government, through incorruptible gov.ern.meiit alone, can th'e ~ife of democracy be saved. Republicans are just as much concerned as Democrats in preserving tiie life pf fhe Nation. The heritng<> of liberty is common tp us a.n and, no ruore sncred duty rests upon the people oj'. this generation than_ to transmit that heritage untainted and untarnished to our children and t~ our cbildrens' children in order that they too IUay enjoy the benefits of tbe glorious institutions we inherited from our father8.

It is because these grave scandals ana <>ft'enses against the pubw~ weal have occurred excluslvely under a Republican administration tha,t th~ Re~ublican udministratlwi mullt bear the respons~bllity and pay t'Pe penalty. Our first duty is to purify tbe GovernjlleuJ:. to restore those high moral stan.dai·cta and conceptions of duty which make putilic offic;e trul;r a public trust to be administered iu the intereat of till the people Republican leadership can not purify the G9yern,menr. I~ i61 too seriously enmeshed in the clifficulty. The Republican orgauization is controlled QY the verr men and predatory influences whJcll have brought about the present d,isastrous state of ~1fairs nt Washington. ';rhey can not be lntrusted with its reformation. These influences consist o! a c<>mllination of the great financial powers, blg business, organiied railroatl executives, and corrupt political posses whicq baye a direct stake in GovernmeQt, and which have transformed our Government into a plutodemocracy.

What is ~ plutodemocracy? The Q.ictionaries deftoo it as govei:-n· ment through the influence of nioney "under the forms of a democracy. This is exactiy what we have t<>-day at Washington I Do not tile revelations in the various investigations p~·ove it? It ls the influence of lllOney opernting in le~slation and in the great departments and b1,ueaus at Wushington that ha.~ prostituted government tQ pl!iva.te ends.

It was the Lnllueuce of money that caused the downfall of Mr. Fall and hi.If betrayal of th& public. interest. It was th~ influence of mon<?y that corruute4 the Veterans' Bu.i·eau. It was the influence of mo-ne1 in the Department of lustlc~ tllat debau<!hed the administration of justice. It w11a. the intlut>~e ot mpney . thst controlled the acti.oD.. or the- Republican National Conventl()n · in 1920, awl 1tubldequently <H4

CONGRESSIONAL RECORD-SENATE APRIL 24

termlned the character of the administration at Washington. It was the influence of money, represented by the unparalleled $7,000,000 Repuhlican campaign fund in 1920 that caused the enactment of the Fordney-McCumber tariff bill, which is taxing every American home in the land-men, women, and children alike-for the enrichment of the great trusts, monopolies, and combinations of finance and transportation, which contributed to that campaign fund and dominate the Republican Party. It was the influence of money that gave to the men of great incomes in the United States the principal l.Jenefit of the tax reductions made in the revenue bill of 1921.

It is the Influence of money operating upon the Government at Washington which has demoralized and unmoralized great departments and bureaus to the injury of the public. It is the influence of money that

· bas brought idealism into contempt and exalted materialism and gain as the l"ight standards of private and national life. It ls the influence o! money that has sterilized righteousness and exalted isolation and selfishness as the policy of the Nation.

Whd.t could more strikingly demonstrate the supremacy of materl.alism in the Government over idealism and humanity than to contrast the demand for the llellon plan of tax reduction with the indifference to the demand for the prompt enactment by the Congress of a hw submitting a constitutional amendment for the protection of child labor? It is painful to see how the administration has put forward tax reduction, a purely materialistic thing, as the paramount and leading me.asure, tu the neglect of American childhood with Its compelling appeal for protection. ·The pleading of the mothers of America that Immediate action be taken to preserve from selfish exploitation the children, to whom we must look for that healthful and righteous citizenship upon which the continuance . of democracy dep.ends, has been disregarded. Saving of taxes or saving of American childhood! Shall ruate1·ialism triumph with reduced taxes or humanity be victor with child labor abolished? God grant that the moral filler and the Christian spirit of · America may not become so impaired that the preservation of American childhood may not take precedence over tax reduction or any other demand of materialism or greed.

There are other things more important to the welt.are of the Nation than money. Among these are further measures to secure to women equal economic and civil rights with men. Equal political rights they have, but those arc not enough to give them that full equality of citizenship to which they are entitled under our democratic form of government. A grave economic wrong has long been practiced against women in the payment to them of less compensation than Is paid to men for the same work performed. I trust I may be pardoned for illustrating this point by a page from my own experience. , In 1909, \\"hen the great downtown Iludson River tunnels in New York were about to be opened by the company of which I was president, my superintendent. suggested that women ticket agents be employe«l. I askcll his reasons. Ile said that women In these positions would help c111-ry out the policy of "the public be pleased," whkh .I had declared to be the policy of the tunnel system ; that they became more expert than men in making change when they hacl learned the business; and to clinch the argument he said, "they are cheaper." I said, " If they are ns good or better than men, why should we pay them less?" He replied, "I thought you wanted to run the road economically?" I said, " I clo, but not at the expense of justice. Employ women as ticket sellers, but pay them the same rates that we pay men for the same work." This was done as a matter of social and economic justice. It was the first time in the history of this country that a corporation or large employer had formally established the principle of equal pay for equal work performed, regardless of sex.

When I became Director General of all the railroads of the United States in 1918 I found that large numbers of women were employed in all kinds of positions, many of them unhealthful and unsuited to their sex, and that they were discriminated against in the matte1· of pay, receiving less for the same work performed than men. I created a women's welfare dPpartment and estalJll1:1hed suitable conditions of employment and service. I also struck down the discriminations against women by providing that they should receive the same pay as men J'or like service performed. I mention these matters because they bring to light an economic abuse. Women must have thnt equal opportunity, politically, economically, antl civilly, to which they are entitled as equal partners in this great institution of democracy. And I mention it also to emphasize the point that the base materialism which takes advantage 01' the weaker sex to. compel them to receive less pay than men for like service pe1·formell must give way to that higher law of justice and illealism which puts the welfare of human beings above greed and sordid considerations.

The growing influence of money and materialism, with all of the so1·did influences that follow in their train, is lowering the ton~ and quality of American citizenship to the grave imperilment of the Republic. It is the influence of money which bas brought upon us the evils of plutodemocracy. The Democra.tic Party is the one political party uncontaminated by high finance, big business, and monopoly,

' capal.Jle of destroying plutodemocracy and of restoring militant and progressive democracy with all . of its force and power to serve the

·genuine interests of the American people. The Democratic Party is

the one political party capable of providing that equality or opportunity for all ancl that impartial administration of justice upon which alone the prosperity, welfare, and happiness of a great people can securely rest.

Under the Presidency of that immortal statesman, Woodrow Wilson, the .American people experienced the finest example of progressive Christian democracy applied to government. There were no scandals, no betrayals of public trust under the Wilson administration. The rights of the people were jealously guarded and every important measure was based upon the true principle of democracy-equal opportunity for all, special privilege to none. C1·edit was reformed for the benefit of all classes. Th~ interests of agriculture were consP.rYed by numerous enlightened measures. The political emancipation of women was achieved. A law was enacted declaring labor a bumuu attribute to be protected as such; that it was not a material commouity, as it had theretofore been treated. A law to protect child lnllor agninst abuse and peonage was passed but declared unconstitutional by a majol'ity of one vote in the Supremfl Court. The rights of legitimate business were safeguarded by laws cleslgned to protect the little business men and consumers against oppression and the unfair prnctices of big business. Social justice was advanced in every direction. The greatest wa1· of all the ages was fought to victory in an incredibly short space of time, and liberty was preserved to the people.

Chr]stian democracy under Woodrow Wilson stood for world peace, for disarmament, for cooperation between the nations to advance the interests of humaulty and bring new hope to the people of the world.

Plutodemocraey under Harding and Coolidge stands for isolRtion, materialism, s<'lfishness, indifference to world peace and to the interests of humanity throughout the world.

Under the Christian democracy of Woodrow Wilson this Nation was elevated to new heights of morality and righteousness and the people enjoyed unparalleled prosperity.

Under the plutodemocracy of Harding and .Coolidge the Nation has regressed. Not one step for social justice has been taken. Not one measure for the benefit of all the people has been passed. Privi· lege has held sway and ls the s_ole beneficiary of the two leading measures enacted under this administration-the revenue · act of 1921 and the ll'ordney-McCumber tariff law. Prosperity has not been equally diffused. It has been a prosperity of classes and not of the masses. ,\.griculture has been prostrated and farm prosperity destroyed by unwise laws and policies. Amazing corruption and scandals abound, impairing the confidt>nce of the people in the integrity of the administration and in the soundness of our institutions. Discontent ancl unrest, widespread and deep, prevail throughout the country. This the plutodemocrucy has achieved in the short space of three years.

Shall we restore progressive Christian democracy to power or shall we have four more years of plutodemocracy and the corruption and inefficiency now prevailing at Washington?

The grt>at exemplar of Christlan ' democracy, the militant soldier in the cause of social justice and humanity, has gone to his immortal rest. His was a lofty soul, bis was a sublime conception of the rights of · humanity. Ile was the champion of peace. lie was the benefactor of mankind. The grandeur of his moral character. the courage of his Christian spirit, the nobillty of bis idealism make him one of the greatest figures of all time. There was no moral .decadence while he was President, nor did the forces of reaction and materialism gain sway or advantage. He gave his life for his ideals ancl set an example of heroism for principle which will forever remain an uplifting force in A.merican life-Woodrow Wilson.

The clarion call of a new crusade of moral and political righteousness rings out in the land. It calls to women particularly to lmt on their armor and enlist in the fight. It will not be an easy battle. It can not be won without sacrifices; it can not be won without adherence to principles; it can not l>e won without enthusla$.lll. It can be won if the hosts of democracy, men and women alike, subordinate selfish interests, exalt righteousness, and unite in an irresistible drive against corruption, incompetence, and materialism to plant the standard of democracy, justice, and Gotl so high upon the Capitol at Washington that it can never be touched again by tainted bands or plutocratic power.

'l'HE WORLD C01J RT AND LEAGUE OF NATIONS

l\Ir. NEELY. Mr. President, I ask unanimous consent to haYe printed in the RECORD an editorial which appeared in the Wheeling Register, of Wheeling, W. Va., on the 22d day of April, 1024, which is entitled "The Reasons."

There being no objection, the editorial was ordered to be printed in the RECORD, as follows :

THE REASONS

No move bas been made by a Republican-controlled Senate to adopt the Lrngue of Nations or to modify it for adoption in the next five years, although in 1920 it was promised by Mr. Harding that the " best of the league " would be included in an association of nations which the United Statep. would join, whlle 31 eminent Republican

-

1924 CONGRESSIONAL RECORD-SEN ATE ,7007 leaders solemnly declared · unto the American people that the surest way into the league lay in electing l\Ir. Harding.

'!'he Jeague promises were totally abandoned, but as President Mr. Harding sought membership in the World Court as established under the League of Nations. President Coolidge, upon taking office, fndorsed . the Uarcling plan, but Senator LODG», head of the Senate Foreign Relations Committee, made no effort to act on this all-important matter. A few days ago the nonpartisan League of Nations Association, tiring of such .. faithlessness, addressed an open letter to Sir Henry demanding to know why nothing had been done relati>e to the court, wherewith Senator Piill'Pl!lU introduced a resolution bringing up the subject ancl Senator LoDGE graciously announced that bearings would be held immediately. He had been reminded that Congress is soon to adjourn and that the following organizations are on record as favoring the league nnd court and that they vote in the next election:

Federal Council of Churches of Christ (representing 125,000 churches with a membership of more than 20,000,000), American Federation of Labor, Chamber of Commerce of the United States, American Bar Association, National League of Women Voters, American Assoclatioll of University Women, Central Conference of American Rabbis, National Federation of Business and Professional Women's Clubs, the House of Bishops of the Protestant Episcopal Church, National Council of Women, National Council of the Congregational Churches, Methodist Episcopal Clergy Annual Conference, and Church Peace Union, National Woman's Christian Temperance Union, World Peace Foundation, United Society of Christian Endeavor, General Federation of Women's Clubs, American Unitarian Association, Union Ministers' Meeting, American Federation of Teachers, National Board of Young Women's Christian Association, National Service Star Legion, National Council of Jewish Women, Girls' Friendly Society in America, National Congress of Mothers an1l Parent-Teacher Association (legislative department), Baptist World Alliance, Worlcl Christian Citizens' Conference, National Association of Credit Men, All-Nations Association, International Missionary Union, Women's International League for Peace and Freedom, New York Council for International Cooperation to Prevent War, Association to Abolish War, Convention of the Protestant Episcopal Diocese of Pennsylvania, Woman's Missionary Union of Friends in America, Northern Bnptists' Convention, New York City Federation of Women's Clubs, Bar Association of the City of New York, Foreign Policy Association, Woman's Pro-League Council ancl P eace Association of Friends in America.

It may, however, be predicted right now that the Lodge hearings will result in nothing concrete.' Another Republican promise of certain affiliation with the court in event of a Coolidge victory will be :ill.

Will the people again be fooled?

PORTO RICAN SOLDIERS

l\Ir. WADS WORTH. I ask unanimous consent to have printed in the RECORD a letter addressed to me by the Delegate from Porto Rico [Mr. DAVILA] in which be discusses the present and former status of our Porto Rican soldiers.

There being no objection, the letter was ordered to be printed in the REcono as follows:

CONGRESS OF THE UNITED STATES, HOUSE OF REPRESENTATIYES,

Washington, D. 0., .April !?4, 1924. Hon. JAMES w. WADSWORTH, Jr.,

The United States Senate, Washington, D. 0.

MY D»Art SENATOR WADSWORTH: On behalf of the people of Porto Rico, I desire to thank you for the splendid tribute which you paid her soldiers on the floor of the Senate yesterday during the discussion of the bill providing for adjuated compensation for the veterans of tile World War. ·

That tribute was all the more noteworthy because the incident that gave rise to your remarks was altogether unexpected. The fact that you detected the injustice and applied the remecly immediately upon it 1'e.ing brought to tlle attention of the Senate will always be gratefully remembered by our people.

Your amendment, in the one case striking out the words "members of the Porto Rican Regiment of Infantry" from the list of troops that a.re de8arred from participation in the benefits of the so· called "bonus " ; and, in the second instance, your amendment recog· nizing duty in the Canal Zone as overseas service, are both dictated 1'y a sense of justice and fair play,

Yesterday'·s discussion discloses that there still exists in the minds of :some Members of the Senate a misconception regarding the status of t be Porto Rican troops. Thus, there was repeated reference to the Porto Rican Regiment of Infantry. This same mistake in nomenclature was made when a bill was before the House Committee on Approprfations some months ago. Repeated reference was made to that organlzntion, although it has ceased to exist as such for several years, having been expanded and me1·ged into the Forty-second and Sixty· fifth Infnnt~y Regiments. The mistake was corrected in the House 1

LXV---442

committee, but It cropped out again yesterday in the Senate, several of those who partlelpated in the discu1'8ion apparently being unaware of 1.he fact that this regiment baa been merged with the other units in the Infantry arm of the Regular Establishment.

As a matter of fact there is no more occasion now for referring to the Porto Rican Regiment than there is for citing the regiments of dragoons that were once a pnrt of the Regular Army, or certain other units that have ceased to exist. The Porto Rican Regiment of Infantry ceased to exist by reason of an amendment which I advocated when the national defense act wa.s before the House on March 8, 1920, reading as follows : ·

" The Porto Rico Regiment of Infantry and the officers and enlisted men of such regiment shall become a part of the Infantry branch herein provided for, and its officers shall, on July 1, 1920, be recommissioned in the Infantry with their present grades and dates of rank unless promoted on that date in accordance with the provisions of section 23 hereof."

Thllt amendment was adopted and became a part of the act June 4, 1920. Under its terms the Porto Rican Regiment became the Sixtyfifth Regiment of Infantry, and I believe I am warranted in saying that the records of the War Department will disclose that it compares in point of discipline and efficiency with any unit in the Regular Army.

Another matter upon which there appeared to be a lack of information, as disclosed by the debate, was the status of Porto Ricans as citizens. To illustrate, the question was asked you : " Is it the practice, then, to pay a bonus or anything of this sort to one who is not a citizen of this country? " The speake1· then proceeds to argue, apparently on the theory that the Porto Ricans are not citizens, but places them and the people of Hawaii in the snmc categ-0ry with the inhabitants of the Philippine Islands with respect to citizenship.

Surely the distingui>'<hed Senator must have overlooked the fact that under the terms of the Jones A.ct, passed in 1917, American citizenship was conferred upon tile people of Porto Rico and that in this regard there is no difference between the people of Porto Rico and the inhabitants of any of the sovereign States.

I wish to make clear that it is not my intention to criticize any of those who participated in the debate, but only to keep the record straight. The original euor in 1.his terminology was made in the House; and if I did not take any steps to correct the same at the time, it was because it escaped my notice, ancl I could not imagine bow such an error could occur after the merging of the Porto Rican Regiment into the Regular .A1·my.

Again thanking you on behalf of the people of Porto Rico, I am, Very truly yours,

FELIX CORDOVA DAVILA.

THE FTIEEPORT PLAN

l\lr. COPELAND. I ask unanimous consent to have printed in the RECORD an addl'ess by John :M. Harrington on the Free· port tariff plan. .

'l'here being no objection, the adclress was ordered to l>e printed in the IlECORD, as follow::;: THlil FREEPORT PLAN-A BRIEF IN REHALF OF THE Al'>IEn.ICAN PEorL»

AND THEIR DhlSCENDANTS The ouligation to find out in advance what principle one is about

to vote to uphold and to reach a conclusion thereon without prejudice or selfish moti>e is a patriotic duty of the first importance.

The Freeport plan : A four-year national campaign, to be conducted through the agency of and at the expense of small clubs throughout the United States, to encourage the study and discu~sion of public que.stions, and especially ·to spread the knowledge that so· called " protection " by high-tariff rates amounts in actual practice simply to a license to rob the m'llss of the American people for the benefit of a favored few.

The tariff issue can ne\·er 1'e taken out of politics until the people shall ha>e acquired a more thorough understanding of the subject and shall have expressed tlleir conclusion in a manner not to be misinterpreteu by the special interests.

There are millions of men and women in this country not among the favored few who in the past have voted to uphold so-called "protection," but who in future would surely insist upon equality of opportunity among all ·the people and special privileges to none, if they would but ascertain for themselves just what "protection " in actual practice really means.

It is essential, therefore, to ulford to the American people, including our adversaries, ample opportunity of realizing the accuracy of the following nine propositions :

1. Under so-called " protection " the American consumers have heretofore been, and will again be, cornpellecl to pay 20 per cent to upward of 100 per cent more than they would have to pay otherwise not merely for products imported from abroad but also for articles produced in the United States, and that, too, for the benefit of fo1·eip as well as Americl\n investors.

,7008 CONGRESSIONAL RECORD-SEN ATE APRIL 24

(See The Tarifr and the Trusts, by Fru.klin Pierce. late of the New York bar, at pp. 26, SC>-81, ~2. 6.3--65, 73, 236, 280, 282; Tke Tarift'., by Lee Frands Lybtt~r, <lf the Philadelphia bar, at pp. 15, 18, 21, 21-20, 28, 167-170, 172-179; The Ta.ri!'. in Our Times, b:y Ida M. Tarsell, of New Y()ork, at pp.. 23, .00, 31, 59, 61, 105, 149, 161, 262-2'63, 26~270, .278, 290-291, .292, 333, 83-i ; Taritr History of the United States, 5th ed., by Dr. F. W. 'l'aussig, one-time professor of -economics in Harvard Uni'ven!ity, and forme1·ly chainna.n of the Federal TuriJf Commission, at pp. S9S-399. and Some Aspects of th'e Tari.ff Question, by the last-named author, at pp. 9-10.) The fore· going authorities will hereinafter be referred to by mentioning the author's name, except th.at Doctor Tauss:ig's two books will be distinguished as Tariff History and Tariff Questi<>ns. {See also, generallY, Doctor Tauss.ig's Tariff Book, puibli8hed in 1920; Wealth of Nations, by .Adam S:w.itb, sometimes ca1loo the "father of m0dern poUtical economy," and a wlume, CQPyrjghted in l.S.89 by Worthington & Co., and containing what the compUer, H. W. Fu.~ber, of New Hamp.shire. considered the best arguments for and against " protection" that bad tbentofore been written. Public libraries and club libraries should contain some eutho1·ities upon tb~ tariff q1rnstion.)

The proposition st..'1.W above is -one of the u sual practical results of a "protective" tariff (Tarbell, 202-293), and a few illustrations will be sut.fident: While "protective" tariJf laws 'vere in force, steel rails, selling here for $28 a ton, were sold in Eu.rop.e fOl.l' $20 ; sewing ma· chin.es were solll here fur $4o antl $5-0 and in South Ameri<!a for $25; agricultural mach.illery was sold abread for 20 per cen.t less than th-e f.s.l.1·moer paid here (Lybarger, 1G7-168; Pierce, 73) ; the Borax Co.., en EDglis.b. corpe>ration, mined bara.x in California and Nevada, and in 1.904 sold its product here at 7i cents a pou.nd while thie export price was only 2~ cents, thus rompelliug A..me'.l'icans t0 pay to for· eigners over three tim.es as much as foreign ·consum-ers paid for a product found Jn this country (Pi-erce, M--65; Lybarger, 199) ; Mr. Keene, a New Yo.rk jeweler, fo-u11d it protHable to buy Americnn· made watches in L()ntl-On, r-OBhip th~xn to this ie0untry. nnd 84"11 for $6 a watch, for which others charged $::!{}, a&d the watc-h manufacturers compelled tlu? i.·etallrrs in this country to agree to ~u at $28 or $;{2.50 the same watch thnt was .offered in th-e B3lka.n States f-or $10 (Tru:HI'. Hearings (191..3), Comlll'ittee on Wa:rs nud Means, House of Re!)resentati.-es, ut pp. 1750-17{)3; see also l.u"]}arger, HO).

Money is inve$ted whereva the luges:t and ~st pro:tlt ls expected ; aJld when the Alhm .Enemy PropeTt y Custodia.n Bllall have finish<'d b·is work the American people win be in a better positfon to imagine the extent to which foreign iny-esto·rs of all countries have been benefited by the " protective " tariff acts eu.ct!ed by our Congress. The facts and figures already published indicate to some extent the amount that had been invested here by Germans alone.

Be::;ides, over 90 per cent of American producers a.re engaged in occupations that can not possibly be atft-eted by foreign competition. (Test tbis R-ssertidn by United States census records or by canvassing any gathering.) Assuming that foreign competition might injure the ~ail'ling 10 per cent (though. in fact, it would notL ought we, ill' any event, to permit all to be robb'E!d in order that 10 per cent may be enriched unjlUltly?

The fact that the G<>ll:8tllller's V()le has been cnptured at each succeeding election by .successfully oouoealing knowledge from him that he has been tbns plnndered h&s mer-ely added insult to injury. And it is substantially correct to say t.hat the only necessary -or comfort of life that was immune from be.Ing enha.n.ced in price by th~ practical eirect of the " protective " tariff system in force prior to 1913 '\VaS

the air we breathed {Pierce, 217, 284-287; Lybarger, 20-26, 17{}-180); imd the "me condition arises under the Fordney-M:cCumber Taritr .A.ct~ The etfect of that act in bringing about high prlces of iron and steel products is pointed out in a pamphlet published in ..January, 1923, under the direction of H. ID. Miles, of 2 Reetor Street, New York,

· N. Y. It ls trne t.b.at aectioo. 315 o! the present taritl act emJl()wers the

P.resi-dent to decrease rates of duty to the e-lltent +0f 50 per cent, but, clearly, American consumers will thereby be afforded no relief ; f-or the President bas declined to reduce the tariil' on sugar, even in the face of the fact that the Ca.naclla.n reduetion of the tariff rate on raw 1n1gar has resulted ill the reducti.Qa of the price of refined sugar to Canadian consumers. ·

So-ea.lied "protection" interleres with the o~r11.ti-On of the natural law of supply an<l demand ; and since the AmeriCUJ. co.n.sumeT 'SU1fered beeai.we the oon.Aict in Europe ad-died to the ·d:emand and diminished the supply of tbe necessaries of life, it is but right that . he should, In turn, be permitted by the operation of t-be same fact-0rs to enjoay the bene1lt of lower .prices when strife in Europe icea8e8 and normal production is resumed.

II. Uader " protective " tar~ :a.cts au fOTce in tbe past the Government l'let!eived in revent1e less tlla.n 10 peir cent '1f Hie aDttlunt that wa~ wru~ from the American people by means -0f 180-eu.Ued "protectl<>n," and the balance went toward swelling the peftts -Of tbat1e ~oo were thus placed in a position to raise the price.a of their products sold in

this country; and a similar condition is bl'Ougbt about under the Fordney-McCumber Ta.:rur Act. ·

(Pierce, 138, 217; Lybarger, 66, 180-18fi, 270-271; see also Tariff Questions, 9-10.)

The 1-esult thus stated a.rose in the past from the facts (1) that while tari1f duties were oollectibJ..e not at all from articles of commerce produced in the United States but only from such commodities as were imported from abroad, yet the prices to the Ameriean consumer of domestic p'roduds were rai-sed by an amount subSlillntially equal to the "protective" tarilf upoo foreign articles that w<iuld otherwise have competed in price therewith (Lybarg-er, 27()-271) ; an<l (2) that the American P€OPle C()DSUmed a far greater quantity of domestk products, which were th11s subjected to an artificial increase in price (tht>ugh the G<>vernment received no part thereof), th-an they consumed of foreign products, upon which a taritr' duty was 11ctually paid to tlie Government, the a.mount of om· domestic eommeree having been aboRt thirty-five times the value of imports (Lybarger, 121, 133; Pierce, 18-19, 138; Tariff Questions, 9-10).

Certainly no system o;f taxation can be just that reqoire-i the taxpayer to part with a dollar in order that the Government may receive less than a dime.

Is it not tar better to raise the rev'eflue reqlli:red by dk.ect taxation in order that the pcopJe may lraow what is being exacted by way of ta.x.atiGn nnd that the entire amount ooliected Will reaeh the Federal Treasury? Besides, the Feder.al Government n-0w raises the major part of the reve.nue required by taxing corporations, decedent estates, and ineomes, and only a smaller fraction thereof from ta:ritr dutioes on imports.

More()ver, tile object of "protection " is not to raise revenue but to shut out foreign commodities from this eountry, thereby preventing the eollectjol'I of tariff duties thereon. In faet, the MeKIDley "protective " t3.rift' a-ct is frankly entitlt!d "An act to reduce the revenue,"' ete. (U. S. Stat. L., 1890, chap. 1244; see also Lybarger, 278, 2T3, 204).

III. The fm1l0sition. by "protective" tariif acts of speci1lc duties ba.rred upon wetgbt, mea.1mrl", <>r number of .un~s {Rs in the case of buttons), where ditfe'rent grades of the same product h-av-e been a1fected, resulted in c~mpelli11g the Ameri.can contrumers of the cheaper grades of 11.undredil of artkles t() pay a tax of 111 per eent to 280 per cent, while the prn·chasers ~f the more expel!rsive gTades were required to pay but 60 per cent to 8G pe1· cent.

(Pierce, :M, 42, 289-290; Lybarger, 175-11'9, 171-17-4, 280-281, 296.) O~r 1,000 )•eftrs a<;<> Juliu1'1 Desar imposed tarilf rates of only 3

per cent upon the "barbarians" he -conquered (Lybarger, 204), yet for nearly fiO years prior to 1913 the patient American people submitted to the extortions and injustice hereinabove mentioned. The avera~ tari1f ra.te under <Alr fl.ut tartlr act of 1789 was 6~ per -cent. Thus Alexander Ha.mllfon considerM 61 Pel' ee11t sWl'ielent to give all n.eeessa:ry pr0tectlon t<1 our then infant industries, and he -doubted the wisdom of the long continuance of the polley (LYbarge'r, 24-9 ; Pierce, 5., 216). The highest rate in the tari.J! act of 1816 was 25 per cent. Duties were then Imposed to enoouragie infant industries an<l ti} establish a more diversifi-ed industrial c-ondition in our country, were intended to be i·emo\•ed within thr~ years, and affected a list of articles so brief as to be printed ~o a page about a foot square (Pierce, !:!53-257; Lybarger, 2·!8-253). At the b-eginDing -0f the Em"Gpean war England, where there had be.en no so-ealle<l " protectl-011 " since 1849 (Pierce, 330), certainly had industries as diversified as our own, although her natural resources were not comparable to ours: and, besides, she bad the greatest tonnage in merchant ships ailoat, while our once great merchant fteet, because of the eft'ed of our " protective" tarl1'1' -policy, bad been driven from the seas (Pierce, 99-100, 105-106, 108-109; Tarbell, 255, 61-62, 203). The American people now know how necessary sb'lps are kl the -conduct of modern warfare. And let it always be remembered that It is the Ameri-can consume?', not the foreign or domestic merchant, tbttt ultimately pays not ~rely the amount of the tariff duty but, in addition, a profit based tb~reon to each middleman through whose bands the merchandi11e has passed (Lybarger, 62, 66, 263, 276-271 ; TarboeU, 150, 151 ; Pierce, <!2, 138, 216).

4. While it is quite true that, under "protective•• taritr laws, a few men, including forei.gners, thus licensed to l~vy tribute from the A~rlcan people, have amassed large fortunes, general prosperity has come, never uecause of "protection," but in spite of it.

P1'0sperlty, in the last nnalysls, is derived from "mothel' earth," though our people's energy, resourcefulness, inventive gen.ins and adaptability t<> the use of improved machinery and methods, as well as the unrestricted commerce we enjoy among our 48 States h:rve also co:ntributed thereto. (Pierce, 215, 22'3, 24:0, 244, 294; Tartff -Qu--estions, .fo-t9 ; LybaTger, 196-200, 206-209 ; see a.lso Wealth of Nations, book 4, ch. 2, p. 3"54 ; Tariff Questions, 4()....41, 43, 4:9, 19+-195, 201, 280-281, 284:.)

Panics and 'business c'lepressiomi have heretofore arisen, npt by reason of low tariff rates, but becau~e o:f conditions entirely distinct therefrom

1924 CONGRESSIONAL RECORD-SEN ATE 7009 (Tariff History, 107-108, 121, 216-218, 287, 319-320; Lybarger, 289-293; Pierce, 261-264, 273-274; 'farbell, 238, 239, 254). Yet a majority of the American people have been deceived into the fantastic belief that the panic of 1803 was caused by an event that took place a. year thereafter, namely, by the passage of the tariff act of August 28, 1894 (Lybarger, 285, 289-290; Tarbell, 238-240, 236; Tariff History, 319-320). The truth is that the McKinley "protective" tariff act had then been in force since October 1, 1890, and that the industrial depression had commenced in the fall of 1890 (Lybarger, 290, 273). The worst of all the pa~cs, that of 1907, came during a period when "protectionists" had been in contr-01 of the Government for upward of 10 years and while the Dlngley " protective " tarii? act of 1897 was still in force (Lybarger, 291). However, it should be noted at this point that the Federal reserve act will obviate a recurrence of a financial panic like that of 1907 and will make it very difficult for the special interests to bring about a "hand-made" panic to intimidate the mass of the people.

The removal of so-called "protection" does not stop the prosperity of a lawful business, but merely eliminates extortion and brings about a just result, e. g. : In 1878 quinine sold here for $4. 75 an ounce ; in 1879 the " protective " tariff duty thereon was remov~ ; the price of quinine fell to $1.23 an ounce in 1883 and to 16~ cents in 1906, and yet the buRineRs prospers (Tarbell, 280, 93-94; see also Tariff History, 359, 360).

5. The contention that "protection" raises wages and benefits the American lnborPr will never become convincing until human nature ceases to control the motives of men, since, whether there be high tariff, low tariff, or no tariff, the employer will secure the labor be requires as cheaply as he can.

(Lybarger, 111-120, 189-194; Pierce, 182-219; Tarbell, 338-346; 349-350; Tariff Questions, 31-34, 34-35 ; 36-37:~ Taussig's tariff book published in 1920, pp. 48-51 ; 140-141.)

The reader knows that he himself does not pay more than the prevailing rate of wages for a day's work. Why should he think that the "protected" industries make a practice of presenting to their employees a part of the " spoils "? Indeed, in 1912, Theodore Roosevelt declared that a "protective" tariff does not appear in the "pay envelope " of the American wage earners (Lybarger, 189-190). But, even if such were the fact-it is not-there is no justification for compelling, by statute, the great mass of the people to contribute to a fund to pay the employees of the various trusts and manufacturers in thh> country.

Wages were higher in this country than abroad before any "protective" tariff was levied here (Lybarger, 113, 114). In the eai·ly days that fact furnished an argument against "protection," and it was not until 1840 that anyone even contended that "protection" benefited labor (Tariff Hist-0ry, 65-66; Lybarger, 111-113). High tariff rates 11sually make high prices, but high wages are not the result of high .prices (Tariff History, 365). Wages depend, not upon any "Pl'otective" tariff, but upon the operation of. the law of supply &.nd demand, the energy, intelligence, and efficiency of the employee, and the effectiveness of the services rendered (Pierce 213, 215; Tariff History, 365-367; Tariff Questions, 31, 32, 34; Lybarger, 111-120). While the w-0olen and cotton goods industries were among the most highly "protected," the wages paid by those industries were among the lowest for labor of the character of services required (Tarbell, 342), but carpenters, brick masons, and other similar artisans, though not employed in any "protected" industry, have always received among the highest pay for their work. Besides, when measured by the lab-Or cost per unit of product-that is, by the cost per ton, yard, or other measure, particularly where large quantities of the same pattern are produced-the American labor, notwithstanding the higher rate of wages, is, because of its greater effectiveness, the cheapest in the world (see Tariff Questions, 39-41, 43, 49, 194-197, 200-201, 280-281, 284 ; Lybarger, 329-331). The late Andrew Carnegie, in 1909, quoted the steel corporation's latest report, showing an average profit of $15.50 per ton, and, referring to the plant at Gary, Ind., added: "The cost of producing rails at Gary won't be half as much as in England, notwithstanding the cheaper cost of labor abroad."

It should also be bome in mind that labor is but a small part of the cost of production. In 1900, when the Dingley "protective " act was in force, 1 H per cent of the cost of manufactured articles was the proportion paid for labor, but the average rate of "protection " afforded to the manufacturers was then at least 50 per cent upon the entire value. Thus "protection" operated to give the manufacturer the labor he required free of cost and to present him with a bonus of 32~ per cent besides (Pierce, 211-212). T!le condition of laborers in England steadily improved after 1849, when "protection " was abandoned there, while the condition of laborers in countries wb~re so-called "protection " was in force steadily grew worse (Pierce, 218 ; Lybarger, 114, 320). Moreover, in normal times wages in England are higher than those in any "protectionist " country in Europe (Lybarger, 329-340).

G. While our farmers, in common with other consumers, have been, and will again be, systematically plundered by the operation of so-called

"protection," high ·tariff rates upon farm products are not beneficial, but positively detrimental to the interests of farmers, excepting wool and sugar growers, and the duties on farm products have been incluned ln " protective " tariff acts merely to deceive the farmers an<l to capture votes.

(Pierce, 228-229, 230-237, 240, 242; Tariff Questions, 30-49 ; Tarbell, 196, 197, 201, 202, 203, 204 ; Lybarger, 104-110, 88, 89, 96, 100-102.)

Our farmers, except the sugar planters and woolgrowers (Pierce, 225; Tariff Questions, 97-99), have a comparative advantage in practically everything they raise, produce more than enough to supply the home market at a cost lower than other countries, and must export a large yearly surplus for sale abroad, and, in the nature of things, tariff or no tariff, the prices of their products could not be affected by foreign competition (see also The Tariff and the Farmer, by J. G • . Carlisle, published in the Forum, January, 1890, vol. 8, pp. 475-488).

In the American Farm Bureau Federation Weekly News Letter of January 11, 1923, published in the CONGRESSIONAL RECORD of March 15, 1923, at page 5828, the annual net loss to American agriculture by reason of the operation of the Fordney-McCumber Tariff Act is estimated at $300,000,000, without adding anything at all for the " pyramiding ''

- of duties between the producer or importer and the final consumer. Yet we all know that each middleman exacts his percentage of profit based upon what he pays for the merchandise itself and because of the tariff as well. Thus, clearly, the loss is even gn'ater than the estimate. Obviously, the remedy is to eliminate from the Federal statutes so-called "protection," to the end that the farmer (1) may, like other consumers, procure what he requires at a fair price without artificial enhancement, and (2) may, like other producers, have wider foreign markets for his products under a condition permitting American credits to pay therefor continually to arise in foreign countries from the proceeds of imports into this country from abroad.

VII. So-called "protection" is fundamentttlly dishonest and even destructive of the moral fiber of the Nation; for any process by which property is taken or permitted to be taken without consideration from one individual for the benefit of another is contrary to equity and good conscience.

(Pierce, 63-65, 118, 120, 12~132, 135, 138, 235-240 ; Tarbell, 329-330, 356, 357; Lybarger, 4~, 64-67,\

Besides, "prGtection" does not create any wealth. It accomplishes the distribution of wealth by tnking it from the masses and placing it into the hands of a few (Lybarger, 70-74, 200) ; · and it ought to be self-evident to us all that a people may not " be enriched by their own taxation," particularly when that taxation is not for the public benefit but for the enrichment of a few · private individuals, including foreign investors. (Lybarger, 64-67; Pierce, 138. 217.)

. VIII. So-called " protection " results in an irreparable yearly national loss to our country.

(Lybarger, 195-200 ; see also the authorities cited under subdivision I hereof.)

:Bearing in mind that some localities and conditions are better adapted than others to the production of c~rtain articles of commerce, let us answer the question as to whether we should, if we could, build a tariff wall around our county in order that there might be established in the county an industry lucrative to its owners alone for the cultivation (in hothouses) and the canning of pineapples, and thus impose upon all r .esiding in the county, and upon no others, the necessity of paying from 50 per cent to 150 per cent more than we should otherwise have to pay for pineapples, while the people residing in adjoining counties could purchase the same product at a price reduced by the amount of the tariff rate imposed.

Would it not be more reasonable to permit the capital and the labor that would be required in the pineapple industry to engage in the production of something that would require less capital and less labor to create an article of equal or greater value in the markets of the world and then to purchase pineapples at the lower price paid ~lsewhere? (See Wealth of Nations, Routledge Ed., p. 346; Pierce, 202, 203.)

For over 70 years England lmposecl import duties for revenue only upon such articles .as tea and coffee and received freely the products of the cheapest labor of India, the Orient, and the rest of the world. Yet England gi;ew in financial strength, and its industries prospered, notwithstanding the far higher rate of wages paid there. (See Taussig's Tariff Book of 1920, p, 51.)

As far back as July 2, 1820, Daniel Webster warned us that protection was " a policy that could not be followed without great national injury." (Pierre, 257; Lybarger, 2u2.)

Theodore Roosevelt declared in his Life of Thomas II. Benton : "Political economists have pretty generally agreed that protec

tion is vicious in theory and harmful in practice." (See American Statesmen, Standard Librar~ Edition, Vol. XXIII,

p. 60.) If there be any industries in this country that are now unable to

compete upon equal terms with similar industries in other countries, without ~equirlng the Americ:an people to submit to the injustice that

,7010 . OONGRESSION AL RECORD-SEN ATE .APRIL 24 ~

neeessari1y results from so-cu.lled ·~ l'ITOt~tfo~" that f'nct establishes The fut that emmnurns su:ms of mo-ne;vi must be raised to me.et the that some other country ha.s a ~ompa:rati.ve: a.dnmtn.ge ovfll' ewis 1nl open·se· 01! the. W:.11! makes- it Im.peratiTe at this time t<> cremoustra.t.e to those industries, either because of climatic cC!lll.ditions. or for some: other the ADMrlxran pe0p.k that th>e .raising o.f J!ev~ue by high ta.rt«. rates m reason~ n.nd that it. w0uld be far better to divert the capital and thc:r the most inhradtous met.ltod of ta.xati® that hal!I yet been Etevised. 'rbe labor thus employed here at a disadvantage to the condU<!t of mte of responsibility upon: each c.if ue ill tha pnmdses is- mea.,~uredi by the in· our many industries. in wbJeh our COll.llltry excels- all otll.eN {see "Ta.riff true.nee~ which, boy a deter:mlnefJ!. etrort, it is posei?ile. for. him to· exat Questions," 3()-4"9). The truth is,. however, tllat few, If' any, indue- upon the inteilli~n.ce. a.nd sense ef justiee-01! h1s' friend-Si. a.cqualntnnce'ff,. tries in this country are now really dependent upon "protection" in. and CDthe.rs of whatever party toward inducing thelDI to investigate andl o•der to be proRperous. {"Ta.riff Hiist~rY'." 359.)- ·~Protection" serves tC> understand what so-called "protection.~,. in actual pra.ctice

9 really

merely to permit the special interes·ts to C?&n.trol the home ma:rket andi mean& thus to plumlet· the hom~ folk. '.Fh.e- temptat:lnn is now very· great to resort to lndilrect ta"llatlon il'I

IX. Though hith~rto a· crebtor natioo. and fine· with an ineontJequ+!?f>- o~ii to raise the re.venu:e req:ubred.. rt was the expense due to the tinl. mercantile marine~ our country ha•, a:s between it and 8.IlY other-- C.i"vil War 1Jhnt was the prlmaey cfroumstnnce and excuse that enabled cou.ntry, emerged from t.be war a <eredito1· nation, with a la:rge ton- , tll.e sei1ish int~wstB (includin.g: some foreign caprta.Jists) to fasten upo.a nage in merchant ships,. and tlms since the- waD fa-reign eommeree ts em ceuntcy the incubllS E>f "l)rote«ilion " with which the A~rilcau of far greater importillce- ta the prodoct'rs ~n6 wen as to the- con- people were buirdened for aibout 50 years prior to 19i3 (" 'Earlff Riis· somers) of our country thnn ever before, for tlilose ships :must be kept tory," 193, 228; Lybarger, 248, 261-262; Pierce, 44, 216, 217; Tairbell. busy In order to yield a rtttm."D on the vast a1D0unt e-f' eapi.fal investeet 26-27, 30, 112). lt s-lwu.ld1 also- be- noted that aftett his electio.n l'rasianci te fnnish emploiment to ou11 stalwart men who· during the war dent Lincoln cleclarecil t.bat he- had ••by no· means a tlwroughly matnred llave been employed :in shipping enterprifle~ and our in.d'ustrlesi must judgm.ent upom" the tarilf questionl &nd that the tariff Mts passed find· ctuilet11 for tllei~ prodt1c.ts in the m:U'kets o.:t! the- world. during th-e ChtU. Wlil.r· were far_ " revenue ool~" (Tarbell, 19, 20, 26;

(See Pierce, 100-11&, 181; Tn.Tbelt, 61.-62r W3", .255; Lybarger-, 120- ~bauger, 261)· and were enac.ted to- pt!Teaerve. the ante_ bellum state of 124, 12-5--135; "Tariff Histo-ry,•• 22..) intel'natiann:1 comv€tttion" &in.'Ce mmailly &D.' interna1' revenue ta:x: had.

Jn.ternatio:m.al trade· amounts bnt ta the exehn.nge of commodities. first been levied on domestic products (Tarbell, 30; Lybarger, 2&1). M'ane-y Is merely a: m-edi'um of exeha:n~. It is nm possilHe for us fo Both i.n.tern:alr and exte:i:nal taxes were. then. understood to be temparary. export onT pl"od.ucts to~ an indefinite pe:i:t-0~ without also importing The diffi.cult;v a~c:1se after the Civil War when the selfish interests procommodities from other rouni'ries. Th-e rate af exchmrge· would rend~r cured the reduction. or xemova1 of internal revenue taxes .. and the aue.ll one-sided' intercour.se unproft.taUe- and wmtld · cause om· exports gnadual inC1Jeuse of tariff duties on. fore~D. p:coducts (Lybarger, 261, to. cease by diverting the- business to other countrt-es betweflr which the 262) · l'nte of exchange· would be more· favornf!Je.. Let e-ach atlvocate of iust go;veimmeR~ undertak:e for himself "to

Wh.lle "protection•• baa not eoml"Ietef'Y ant otf international trade spr.ea.dt tlle. lrnG\>Jle:dge" PY attempting to induce citi~ns of all parties from our country, the dame;ge- r&- our eommerce wrought by the policy to read this pamphlet and to make- a. stud~ of the talliff issue and of e.f '" protection," merelty varies flt degree amt ll(Jt in principle. The othei: puhlie questigns. N.o embanassme.at. need be felt in appr.oacbiing fact that in future large yearly tnte'Vest payments and freight eh1.1rges a:ny v0.te• upon this. subjeet; fox, though deceiived in.to the belief that will ae-erue: in favor et our- ce11ntry lmt emphasizes the- neeessi'ty of eo-calle.<i "protection " is a neeessary. evil, eBsen.tial. and not harmful lmporti:ng in order that we rnay export. .A:s between indlvid\.tals, 80 to· ottr n.a..ti.o.D.ll'l welfare and that it is ben~ficia.l to American labor, as between nations, trade breeds trade and friendship. Exports and OUll advers.ari~. witb the uc1tption oL a selfish. few home of wbQm. 1.Illpo.rts, under normal condttions, :ilM.rease- or d'.imhrfsh at tli.e same ma.Jr not have- been. oonecio.us. Q.f a selfish motive), are as pn.triotic as time. Consequently, if by high "protectilv'e"' tli'iff" rates, we legislate ourae1ves,. wad. desire a.s ea.rnestl;y to i·enda justice to. the mal'!~ of te prevent foreigJlJ countries• from seRing ta us, we at the same tfme the- Amerbc.an peojlle. ,

JQHN M. lil.AnRIN-G'.rON. lamper the- exporting Gf oUl' pr0du:ets to them ;- aindi, ~does, by· such legislatto.DJ we in.vlte similar legislatiDn OD t:lteiil! pari te- pre~nt tlie ma.le- of e>ur commedtties in tllieir markets... Plainly, sucl't' a eours-e re~

su1ils fni a uationall loss of enormou8' preportwns, not on-Iy- because 011r

sh.fps thus stand idle and unprodudiVe, but also· beeauRe foreign· markets for our products rure th.us cut otf'. :Prfur 1to tl\e 1!.iul'epean war· we ~ol!ted. only aboot I:). pell cent of' our anmm~ production-- and· ou-r imports were in an even smaller proportion to om· to.tall annuaf censu·mption (Lybarge!!, 121),.. the d.Hrer~nce· being nmde- up. by the amount of interest, dividends, rents, and freight charges we were then p11y·fng to f.oreigners (see Lyba;rge:r, 1~li38,). JJe8icles, h1gil• ta-rUI rates restrleti.Dlg commerci:e betweem na&ns nougrisb.• lmlimCJsit!yJ, wlifch ()!ilten· reau.Its m war (_Pierce, 184).

Tli~ fact that, D10tw1thstandin1r the higller wnges pa•fd' in tbts e.un.try, the pro<facts of eu:r i!aietol'ies a•re, under normal condrtions; sold la everJt qua.rteir of' the globe aemonstrates tha·t, upon equal t'erms, we can and do- snceesl!lftllly eompete- with· fo.reign ceuntrtes in the marketit of the W()rld (Pierce, 23~34; Lyba:v~rr 120-120:; "Tariff Qnestiions,!' 36"-37, 39', 19.£..-lM, 260-~1; Tal"belT, 92.-94; 104-195; ... Tariff Ri.&tGry;" ' 3MI).

CON'CLUDiNG REMARKS

Manifestly, it is u.n.fair to the people to limit a1 discnssioDJ ot public questions. to the short perfod that measw:es th-e. dull&tion ot a p-TeBi· dential campaign. Cempara.tively few attend political meetings- held by a ,Pnrty other than their own ;. and, during the 1916- campaign.,, it was f.ou.nd that men, ordinarily iD.telli.glm t,_ thau.g.h u.ndeir ani entire misapprehension as to the effect of the " protective " tariff system they contemplated voting to ttt>hold, would listen to n-0thing and investigate nothing that was inconsistent with. their blind partisan. prejurlices. Our campaign is founded upon an appeal, not to the preiudices, but to the intelligence and sense. of justice of the voters. The tlieo.ry of the campaign is so to arouse the interest of the people that they at once will look into the tariff question and, witlwut haste, decide it for themselves. The public's sole p.rotection against " protection " is the power of its combined votes. For the blessings of freedom we owe to our Government more than we. can ever repay. Ilnt our form af Government can not endure it; as has too often been the case, the vast majority of the American people supinely permit all the thinking to be done by a selfish few. Before November, 1924, let no one be able to make the humiliating admission that be or she intends to vote w;ith any given party, irrespectivery of the principle involved, merely because his or her father did so or because such, hi his or her opinian1 ten.ds toward his or her own s~·trab, social, financial. or political advancement,

Dated, FREErORT, N. Y., October, 1023.

NAV'AJ!.. A1PPBOProA:Tl0NB!

The PRESIDENT pro temrrore. Tlre· morning bu'Siness is closed.

Mr. HALE. Mr. President, I move that the Senate proceed fo the consideration of House bill 682&, the· nava:r appropri-a:· tion bi1J.

l\1r. FLETCHER. Mr. President, :r nm wondering if we could not take that up a -lfttT.e- later arid have· a: few minutes on the caJendar first:

M"l'. NORRIS.. Mr. President, if tlie Senator from Maine will yield' to. me--

. Mr. HALN. I yield. ' Mr~ NORRIS. Last nightl- just befo1·e we adjourned, I

state,d-in faet,, the s ·enate took an adjournment because I called attention to, the matter--that l wanted to get up a bill from tbe Committee on Agiicnlture and l!.,orestry; House bil'l 11n. It was my fdea then that th-e'J:e wou'l:d be no opp-esition to the bill and that there would be no difficulty in passing it dUJ.•ing the. mornfng hour. I. :find this morning- quite· a m:mrbe-r of. Senators who are opposed' to the bill, a-r reast at the p:resent time, o.nd I have. reached'. tl\e conclusion that it would be an impossibility to pass tlie bill during the morning hour; These Senators teH me that it' they rook into it a Iittl'e further tfiey may not obJect to it. While the Cbmmittee on Agriculture and -Forestry bad no lle-aribgs on this bil:l, they were unanimous fn reporting tl'le 1.'>Ur tQ the Senate.

Personally, while r do not tliin.k the t>ill ls of very- great importance,. I believe that it has- considerable importance and ougllt to pass ; but under tbe circum~tances I :feel constrained not to make an attempt to get rt up this morning, because I am practically assured that I could not get it through during the mornlng hour, and' I am hopeful that those Senators who are oppose.d to it and have· signified their opposition may change their min<ls upon an examination of it

Mrr OVERMAN. May I inquire what the bill is? Mr. NORRIS. It is a bill to promote American agriculture

by making more extensively available and l'>y expanding the service now rendered by the Department of· Agriculture in gathering and disseminating i'nformation regarding agriculturar production, competition, and demand' in foreign countries in promoting tbe sale of farm products abroad, and in other ways.

1Ul24 CONGRESSIONAL REOORD-SEN ATE .7011 I ha:ve made 1up mw- mind, therefore, that I shall n-0t move fo

take up tbe bill it·his morning. Mr. BORAH. Mr. President, I am glad the Senator is not

going to move to take up tbe bill, because it will take soma I time to dispose of it. We have gathered about all the stat tistics and all that sort of data that we need until we adapt a rpolicy in this country which will enable us to enjDy the foreign markets rather than .to know wbat they are .; .and I shall ~ant to •have something .to say about the bill when. it comes up.

Mr. SW ANSON obtained the floor. ~fr. NORRIS. Mr. P1·esident, will the Senator yield to me? !\fr. SW ANSON. I yield. Mr. NORRIS. While this question is up I should like to

ask the intlulgence of the Senate for just · a moment to make a statement with regard to the bills that have been reported by

1the Agricultural Committee. Mr. KING. M.r. President, will the SeDJl..tor yield to me

for just a moment? I beg the Senator from Maine, the chairman of the Committee on Naval Affairs, not to ask for the consideration of the naval bill during the limited time this morning. The Senator knows th~t I am a member -0f that committee. I have been so busy on ·other committees tbat ;r have not had time to examine the bill I am not a member of .the Appropriations Committee reporting this bill, and I will say te the Sen:::i.tor that if he ,insists upon taking it up thii morning he will not make ~ headway. I aSk, there!ore, that he let it go over until .to.morrow. Then I will join with bim in asking for the consideration of the bill.

1\fr. HALE. Mr. President, the unfinished business is t'.he tax reduction bill, and I understand that the Senator trom Utab [Mr. SMOOT] .12 going ahead with that measure at 2 o'clock. The naval appropriation blll bas been on the Senate Calendar for at least two we~s. and I have been tzying to ,get consi~eration tor It, because 1t is necessary to get the aJ1propriation ·bills out <:if. tlle w.ay. The Army appreprla'.tlon bl1l ls waiting for us now, and two or three other appropriation bBls are ready. Unless .we do some work on these appropriation bl1ls we can not make any progress 8'.t a'll, and they must ail go through before the end of the session.

Mr. KING. Mr. President, I underStand that "tei'y wen. I know the procedure that ought to be adopted.

l\fr. W AllREN. 'Mr. Presiden't, wfil "the Senator allow me? Mr. KING. I am trespassing on 'the ttme <Jf. tlle 'Sena-tor

from Virginia. l\Ir. WARREN. I wish -very much to get the nava1 appra

priation bill started. We are completely 'O'\"erslaugbed. rt there is anyfhing that the ·senator wishes to ·have l'assed over, I presume the Cha'trman of t'he Na-va1 :Mra'lrs Oomnnttee Will allow it to go until later on.

'Mr. HALE. -Certainly. Mr. WARREN. We wmi1d 1tke to get as "fa--r as we •ean ""1tb

the bill be.fore 2 o'e1oc'k. l\fr. HALE. Will not the Senat&r 'rrt>m ~tab ~ 1satkmed

with !letting us go ahead and make what progress we can, and, if there is anything he objects to, put it over uDtlil SOllle future day?

Mr. KING. i[ shB.Jl ·be glad to ·bear the Senator from Nebraska., and I beg the Sene.tor~s pardon for having take11 him frem the iloer. · Mr. SW:A.NSON. Mr. President, I .believe I llav.e yielded to

the Senators. The ,PRESiiOENT pllo tempore. The .Senator from Virginia

is ·entlUed t6 the .fioor. Mr. SWANSON. I simply- wish .to a$ the .senator from

. · Maine to yield to 111e f.or the consideration of a bill that has passed tbe House and .that ought to pass tile Senate very soon

I if it is going to be available this year. It is a bill loaning to William and Ma.rf College, one of the oldest colleges in the

, United Stat~. two cannon that were captured at Yorktown. The bill has passed the House unanimously, the committee o! t.he Senate has recommended lfs passage, .and we should like 'to get the cannon there in time for the commencement exercises this year, which will be held before very long. Consequent1y, I should like to have the bill passed at this time. It is Order of

' Business No. 878. If there is .the slightest debate or objection to 1 it, I will withdraw it.

Mr. HALE. Tile Sen.a.tor will withdr.a w the blll in that event? 1

Mr. SW ANSON. If there is the slightest objection to it. 1

There is no objection to it. It sb:nply 'loans to the college two cannon that were surrendered at Yorktown. They ate or no use, and are now at Fort Monroe, and WillialllSburg is the place for people to see 'them.

Mr. HALE. If that ls Clone, I must tak~ the position .now that I can not allow the same thing to be done with other bills. W-e must have .some acti-On on the appropriation bills. I yield to the ·Sena.tor. ·

Mr. SW .{\NSON. I ask 11.Ilanimous consent--trhe PRESIDENT pro tempore. Dees the Senator from Maine

withdraw his motio:n? Mr. HALE. No, indeed. I simply yield to the Senator from

Virginia. , .Mr. SW ANSON. The Senator lays aside his motion tem•

.porarily. I ask unanimous consent that House bill 1831 be considered at this time.

Mr. HA.LE. J: move first, MT. PresideDt, that tbe Senate proceed to the 1consider.atlon o.f House bill 6820.

The P.RESIDElNT rpro tempooo. The question is on the motion of the Senator fro.m Maine.

Mr. NOltRlS. Mr. President, a parliamentary inquiry. Is the motion debatable?

1

The PRESIDENT pro tempore. It is not debatable at this I lwur. . 1

Mr. SWANSON. Tbe Senator can .speak on the bill 1

Mr. NORRIS. I did not ·hear the Chair's reply. T.he PRESIDENT ipro tempore. The motion of the Senator I

from Maine to t.ak-e up the naval appropriation bill is not >de-- t

batable at this time. fl'he question ls on the motion o'f the I Senator <from Maine. ·

The motion Wa13 agreed t.o ; and the Senate, as in <Jommittee I of tbe Whole,' r>roceeded to consider the bill ( H. R. '6820) making a:ppropr.i.ations ff>r ithe Navy Department and the naval I service for the fiscal year ending June 30, 1925, and for other j pu~oses, which ha:d been reported from tihe Committee on Aippropriations rwith amendments. I

Mr. SWANSON. Now, Mr. ~esident, I 11sk the Seu.tor to yield to me a minute.

Mr. RA.LE. I yield te ilhe Senatm- froln. Vi.rgia.ia. LOAN llF CANNO'N TO Wrr;L'IAM: AND KART CpLLEGE

Mr. SW ANSON. I ask unanimous oonseat f'1r t.he oon&lderation Qif H.ouse bill 18.31t Ovder of Business 378. If there .is 1

tjhe .sliglltest i:objectlon .to .U, I will withdraw it. It simtlY loans to William and Mary College two cannon captmed at ¥ork- · tow11. 'l'he C().mmen-cement ie.x:-e1-cises will be held there .soon.

Tbe PRESIDENT pro !empo.re. Is there objection to the~ quest of the .Senator from Vlrginia.?

There being no objection, the Senate, as in Committee -of the W.hole, proceeded ito consider the bm (II. R. l83l) to loan it& the College of William and Mary, in V~inia, two of tM cannen surrendered by the Brltlsh .at Yorktown -t>n ·Oct:E>ber 19, 1!181, which w.as rea0, as follows:

Be U ena.<116", lffc., That the Secret~ry ~f War be, and he ls hereby. , directed to loan to the College ot 'WfRlam ana :Mary, ln Virginia, two df 1ibe .-canuo.n lmTl'en8ered 'by the !J>rlt\lfb at Tor'k1!own on -October 19, 1781, which are now at Old Point Comfort, Va., tlle 'Se.me to be 1reid "'1 said college nbj~ tte t!he rigM: of t'be Cmi~ at any tlme to amend fJil.' Tepeal this act: Prol'<Uktl, That tlbe Wiil' Depti'l'ttnent ·she.Ill not 4Beur any s:pense because -0t the loan ief tlbe <?&n'Ro'll !l'Uf:llorlze4 here-in.

The PRESIDENT p.ro tempore. The bHI .is before the Senate as .in -Cwmnitree of the Whole and open to amendment.

AGBICULTUIBAL lU:L1l!.'11' LEGISLA TI<>N

Mr. NORRIS. Mr. President, l s~pose that 'biU ts debatable, at 'least.

'Mr. SW ANSON. Only for 1ive minutes. Mr. NORRIS. The lf>lll ddes ·not come up under the can of

the calendar. The PRESIDENT pro tempore. The 'bill ts debntable at any

length. l:lr. NOlt1lIS. Then l hope the Senator will not try to get

me oft the floor if I talk more than a minute. Mr. l>reSident. I undertook a While ago to make just a briet

statement about so.me of these bills that have been reported from the Agricultural Committee. I think I ought to make that statement, as there are so many inquiries being made in regard to them.

The Agricultural Committee have had nnder consideration a ,great number of bi11s more or Jess directly or indirectly aftecUng agriculture. They had before them two bills of gen· eral scope. One i.$ known as the McNary-Hauge!\ b111, and the otb.er ts a bill introduced by me. Upon these bills we had very extensive hearlhgs. 'The committee finally reported the. so-caned McNary-Haugen bill wtth Yari'Ons amendments, ·and a minority report was ·ma:de. While it was not at all antagonistic to the other bill, It showed a preference o'n the part of

.7012 CONGRESSIONAL RECORD-SEN ATE APRIL 24

the minority of the committee for the other bill, Senate bill 1642, ordinarily known as the Norris-Sinclair bill.

The difference in opinion Jn the committee arose not from any opposition, except on the part of a very small minority of the committee, to either of the bills, but the committee upon a roll-call vote decided by a very substantial majority that they preferred the McNary-Haugen bill, and it was reported. Afterwards those behind that bill agreed upon quite a series of amendments, and they were referred to the Committee on Agriculture and Forestry, and the Committee on Agriculture and Forestry went into session and considered those amendments, and recommended various amendments to the Senate.

To shorten what might be otherwise a complex situation, the committee authorized the Senator from Oregon [Mr. McNARY] to introduce a new bill, which was the old bill before reported with the committee amendments, and that bill was introduced and then was reported from the committee without amendment, and is now Senate bill 2012, so that that bill is the amended

1 McNary-Haugen bill. After that bill was reported it was discovered that there

was a technical point involved that probably made it impossible for the Senate to consider that bill until the House had first acted on it, because it contains, and to carry out the idea of the bill it must contain, some revenue provisions; and under the clause of the Constitution which provides that the House must first pass such bills it was thought by those favoring the bill that it would be subject to a point of order if we undertook to take it up here before the House bill came over. So those in favor of the bill decided to wait until the House bad acted.

Mr. President. I have acquiesced in that because I am not opposed to the bill, although I prefer the other one; but it has seemed ttlat we have waited almost long enough, and I wanted to state to the Senate that if the House does not act within a reasonable time after the revenue bill is disposed of I intend to move to take up my blll, which, I ought to add, was afterwards authorized by the Agricultural ·committee to be reported to the Senate, and I shall probably make the report some time to-day. I have been so busy that I have not been able to make a report, although I was authorized to make it a week or 10 days ago.

I wanted to make this statement. It seemed to me that there was great opposition to both these bills, a v~ry decided disagreement as to the merits of both of them. The Committee on Agriculture and Forestry has rather favored them both, but a majority preferred the McNary-Haugen bill, as I have outlined. But as one who favors the other bill, I do not believe that we are called upon to wait very much longer before we take a step that wlll let the Senate at least pass on the merits of this bill and see whether it should be enacted into law.

Mr. BORAH. l\ir. President--The PRESIDENT pro tempore. Does the Senator yield to

the Senator from Idaho? Mr. NORRIS. I yield to the Senator from Idaho. Mr. BORAH. Do I understand the Senator from Nebraska

to say that he will shortly move to take up the Norris-Sinclair bill?

l\.fr. NORRIS. I will not do it, at least, until after the revenue bill is out of the way, and I will say to the Senator that if at that time there is an indication that the other bill can be brought before the Senate, I will not get in the way of that, because a majority of the Committee on Agriculture and Forestry have indicated they prefer that bill, and I feel bound to have the McNary-Haugen bill taken up if an opportunity is afforded to do so.

Mr. BORAH. Without expressing at this time my preference between the two bills, I sincerely hope that if there is any way the Senator can push this matter, so that there will be something before the Senate upon this subject, he will not feel a delicacy about doing so. If we are going to legislate upon this subject at all, it is long past the time when we should have done so. It is apparent that the other bill is not going to be considered here very soon, from what I can see, and there ought to be some means adopted by which to push the subject matter of agricultural relief before the Senate. The situation demands it. We have only about 40 days yet in which to do business, and to me there is every indication there is not going to be anything done at all with reference to agricultural relief.

Mr. NORRIS. I agree with what the Senator from Idaho bas said. I would have done this long ago ; in fact, if I bad bad my way about it, my bill would have been reported more than six weeks ago, and we would have had an opportunity to pass on it. When the Committee on Agriculture and Forestry took the action it did take, of course I felt in honor bound to · let the matter proceed as it had been outlined by that com-

mittee. I would not attempt to interfere with that procedure, if we can ever reach a time when that procedure can be started; but I have about reached the conclusion, like the Senator from Idaho, that if we are ever to do anything, we will have to take some action here rather than to wait an indefinite length of time for the House to act on the other bill. So unless it looks as though we might be able to follow out the plan outlined by the committee, which I feel bound to follow if it can be done, I am going to move to take up my bill, to which there can be no technical objection, after the reven\].e bill is disposed of.

Mr. DIAL. Mr. President, may I ask . the Senator what progress the committee is making toward reporting out a bill I introduced, the Alien Property Custodian bill?

Mr. NORRIS. In answer to the Senator from South Carolina let me say that the committee bad hearings upon the bill to which he refers. It is a very important bill, and I think the committee were unanimously in favor of reporting it; but we agreed, likewise unanimously, that it needed some amendment. A subcommittee was appointed a week ago to consult with some of the officials in one or two of the departments with reference to some of those amendments, and they have not yet reported to the full committee. I have been expecting a report every day. ¥Y own judgment is that the bill will be reported, ~nd I will not try to outline the bill now, but it is an important bill.

Mr. DIAL. I think it would atford great relief to agri· culture, and it ought to be passed quickly.

l\..fr. NORRIS. I think it will be· a help, although it is a temporary measure only.

Mr. JONES of Washington. Mr. President--The PRESIDENT pro tempore. Does the Senator from

Nebraska yield to the Senator from Washington? Mr. NORRIS. I yield. Mr. JONES of Washington. I want to concur in the sug

gestion made by the Senator from Idaho [l\Ir. BORAH], except in the suggestion that we have only 40 days to do this work. I knpw what he means by that, but I do not believe the Congress should finally adjourn until it has attempted, at least, to take care of the agricultural situation, and has either done it or shown that it can not do it; and we have more than 40 days to do that. .

·I have here a copy of a letter from a constituent of mine whom I know personally, and whom I know to be a very careful, conservative man, and that adds weight to the state· ments he makes in this letter. This is a copy of a letter sent to Congressman HILL from our State. I ask that it may he printed in the RECORD, and I request that Senators read it, if they have tim(:!, because it shows the conditions in eastern Washington.

The PRESIDENT pro tempore. Is there objection to the request of the Senator from Washington?

There being ·no objection, the letter was ordered to be printed in the RECORD, as follows:

Hon. S.AM B. HILL, Washington, D. 0.

APRIL 12, 1924.

DEAR SIR: I have been reading numerous articles on the farming situation and have just finished one which occupied seven pages in the Saturday Evening Post, in which the writer assigns every reason in the category for the ext.sting troubles and finally ends by acknowl· edging that he doesn't know what to do about it.

All this sensele-ss drivel is helping to put the finishing touches to a situation that is now so bad that the future bas no terrors. Most of the articles berate the farmer for his past shortcomings. They say he went crazy over the price of land. Many sections did. He spread • out too far in the wheat game. He did, and at the earnest request of his Government.

He bought automobiles when he couldn't afford them. So did you and I. He was too extravagant in all his expenditures when he should have been saving. So was all the rest of the world.

He has been guilty of all kinds of sins, of b<>th omission and commission, and he knows it better than any of the magazine writers ; but that does not change the fact that, as a class, he is facing ruin to-day, and the only thing that will save him is to find some way of making a fair profit on what he bas to sell, and that at once. While Nero fiddled Rome burned, and while Congress is wrangling over its political scandals the farming sections are being depopulated. Most of the writers locate tht' worst of the agricultural troubles in the Dak<>tas nnd Montana. If they are in worse shape than eastern Washington, may God pity them.

,As I wrote you before, fully one-half of the ranches in this county nre abandoned, and most of the others are mortgaged for more than they will sell for t<>-dny and will very shortly share the fate of the others. These mortgage debts were not all incurred at once but have

11924 CONGRESSIONA:L RECORD-SENATE 7013 been added to for the past ~ix y~rs to coveP continuing losses, until to-day the Hmit is reac:tied and passed.

. New loans will not help them, as they can not pay operating expenses, let alone interest and taxes, and the result is tbat every few days we bear of another farmer who bas thrown. up the game and gone out looking f'or work. No more money is coming in !rom outside banks to finance operating expenses. Each year has pnt the borrowers deeper into the hole, and the banks h11.ve been forced to quit and are cle:rning up and taking their losses.

Let me quote two or three of the many instances, with all of which you may be familiar :

BRrney Burke had three quarters ( 480 a.cttS) all summer fallowed and ready for seeding. A Spokane bank-you know the name--which had become the owner or his paper through the defunct ·Mansfield Bank, had been financing bis. operating expenses f'or three years. When Barney asked them for the advancements for bis spring work he wa.s informed that tlley were through ; that each year made their losses greater; that they could E1ee no help i:n. the immediate tnture; nnd they were going to clean up and take their loss now. Barney replied, 14 So am 1 ~ oome out antl get your stuft," and be was fortunate enough to get a job working on the r<»id to support his 10 chJldren.

Dell Lytle, as you know, a few years ago bought the Carroll land fo-r $13,500, on which be paid down $7,500 cash and assumed a

1 mo1·tga.ge for •s.ooo. Last week he threw It up and walked out. Six yeus ago be was coneldered worth $60,000. You know that he

ls a bard-headed, cartful farmer, has never been extravagant, and has ne"'\·er speculated, except in buying this land, but the whirlpool has sucked him down, as it is gettiug all the rest that are left.

One more example ts ·Clyde Gallaher, whom I have always considered one o! the best a.nd most e<>nservative farmers in thie county. He 11ever spends n nickel foolishly, has a good head, and ls 'a workingfooL Case knocked oit a lot of hJs back interest and gave him every show imaginable to stay on the land.

Ile diversifies as much as any man can in this dry-land farming; keeps several cows and sells erea.m ; keeps a bunch or good chieke:ns ; raises bis own pork; has a wife that works her head off to help him; has two boys big enough to l'\Ul plows and help about tM place. He told me all this last summer and said he was goin~ ·to make it i! humanly possible.

Believing in his abillty to make good, the mortgagee filla.Dced him last summer; advanced only the minimum amount necessary to carry <>n the work; received and sold every bushel of grain ra.ised on the place, which averaged about 24 bushels per acre, and op. the final accounting Clyde lacked $800 of "returning the money that had been advanced for expenses.

His experience settles it with me. If Clyde Gallaher can not make It, we are through in thla section. And what does this mean? Simply that the county will be depopulated and that soon. The towns are going with the country; the merchants are either broke or living on their own fat, and the end is in sight. Out here we understand that the President and Secretary Hoover are against the McNary-Haugen blll on the ground that it is economically unsound. They may be right, but tt seems to us that any legislation that wlll avert . the catastrophe confronting the farmers wlll be jQstlfied. We vote ID.Ulions to the sul'fering Germans and keep a steady stream of money going to the Armenians, who have been yelUng for and getting help from us for 150 years, but we can not help our owu flesh and blood because it is uneconomic. To hell with such theories.

It we wait until overproduction has been changed into a famine, the farmers wm be gone, tb.e agricultural sections depopulated, and the industrial sections up against it for food. Even i! all the rontentions against it are right, wbJ.ch they are not, this coQntry can afford to gamble the paltry amount involved where the winnings will be so enormous.

We can not stand any more theories or a.q:uments, We must have action at once.

Congress did not hestitate io tinkerln~ with ecQllomlc laws when 1 they got tbe farmers into the bo\e on raising more wheat and tben de-1 tlating, them into bankruptcy. , Now, let them do enoultb more t1.nkering to gl}t th&n out <>f the 'I bole and on a par with the rest ot the workers of the co.uutry. Jsn't there some way of torcill~ Congress to Jct 1

This letter may do no good. but l send it that you may know o.t i the discouraged 11nd desperate feelhJi tba.t exlsts all tbrough this section.

I know you are doing everything in your power in our beh!Uf, and j I want you to know that tt is app~clated by all of our !armers. an<l especially bf you!' humble Be1.''Va,nt.

Mr. COPEL.AND. Mr .. President-

M.. B. HOWE, Water-i>ine, lf'eah.

The FRESIDENT pro teDJPQl"e. Poes tbe Sena.tor from , !Nebraska field to th~ S~tor t.rom N(tW Yol'kt

Mr. NORRIS. Let me just make another brief statement and I will :rteld the fioor, unless the Senator wants to ask me a question.

Mr. COPELAND. I want to join in the appeal of the Senator from Idaho that no feeling of modesty on the part of the chairman of the Committee on Agriculture and Forestry will prevent him from bringing out his own excellent bill. I am sure that on this Bide we are very anxious to have a chance at the earliest possible moment to show our frlendllneM to any workable plan for farm relief. So I appeal to the Senator to bring the bills before us as soon as possible in order that we may assist in their passage.

Mr. SHIPSTEAD. Mr. President--The PRESIDENT pro tempore. Does the Senator from

Nebraska yield to the Senator from Minnesota? Mr. NORRIS. Not just now. Let me make a statement

in answer to the Senator from New York. I think I ought to say in behalf of the Committee on Agri

culture and Forest~y that ih all my experience in public life I have never known of a committee spending as much ti1D4t and working as industriously on various agricultural propositions that have been presented to the committee as has the present standing Comm! ttee on Agriculture and Forestry. Some Of us had been devoting a great deal of time before to this _question. We were presented with what I think was a pro~ lem more difficult than the , Members of the Senate appreciate or understood, more difficult than the people of the country understood. It has been discouraging in a great many respects. and yet In all the deliberations of the committee there has never once been anything to indicate that any mem~r ot the committee who was present-and all the members we11l not always ab~ to be present-was moved by any other idea. than to do something to improve the condition of agriculture.

The committee are diviued. .As a matter of fact, the farmers of the country are likewise divided We realize that the Senate is divided. It has been impossible to get the farmers ot the country or the Committee on Agriculture behind any one p.i:opmdtion, and we have been in session, not on the. two btlls I have mentioned alooe but on agricultural bills in general practically every day since the beginning of this session. Every day from 10 o'clock until 12 we have eitl1er been in executive session diSCllssing some of these bills or llsteninc to representatives of various kinds of org11.nizations, mostly· ag:ricultural, from all sectioos of the United States, and we now find ourselves divided to a great extent.

I have a firm belief, of course, in the bill I introduced, and which tbe committee has authorized me to repol.·t; but I realize that many Members oi this body are going to oppose it very bitterly and very conscientiously. So I want the Senate and · would like to have the country understand the i-eal situation.

Personally I have felt handicapped because of the action of the committee, taken in the very best of faith, and have felt that I sbould not move to take this bill up; but I thi.dk I have wa.i,ted about as long as I could be expected to wait f<>t the other bill to be gotten in such $hape that it could be taken up without running couQ.ter to a provision of the Constitution of the United States.

I now yield to the Senator from Minnesota. Mr. SHI~STElAP, I waut to say to the Senator from

Nebrask~ that I am very glad he made his statement this morning. We who come from Sta~ tllat are largely or wholly agricultural have bad considerable criticism directed towaJ.:d us because we have fn)m time to time yielded and given preference to legislation not related to agriculture. We have been criticued, and the Committee on Agricultu~ anti Forestry has been criticlz.ed, be~ause no legislation for the relief of ngrlc"Qtture bas been reported by the committee. nut we have waited patiently, he<:ause we have had faith and couftdence lu the Committee on A~riculture. and Forestr1 and its cbulr:roan.. We have realized to some extent the controversy that has been going on in tl1e committee. But sooner or later that controversy must coine to n.n end The country ;feels that the question of agricultural relief is paramQunt, and that the Senate must act upon it before final adjournment. So I am sure· I speak for a large sha1·e of the country when I say that tbe Senator's rem.arks tllis morning were very timely.

Mr. COPELAND. Mr. President.--Mr. NORRIS. I ~leld to the Senator from New York. Mr. COPELAND. Since this matter must come be!o.re the

Senate anyhow, and since the committe& has discussed the matter at such length, may I venture to suggest that 1t might be well to bring it before the Senate ln order that nny ditrer .. ence wb.ieb may exist may be ironed out . . I reellze with the Senator. Uiat WldgubtedJY. TV1. bltt~ dl.tferencet ~f oplnl<>fl .

.7014 CONGRESSION AI-' RECORD-SEN ATE APRIL '2·!

may be found in the Senate, but there must be found some way of solving this problem, and I want the Sen:itor ~o know that from our standpoint over here we are an:c1ous mdeed to. do everything we can to facilitate the formulation of some sensible plan for farm relief. So I feel like urging the chairman of the committee to bring the matter before the Senate at the earliest possible moment in order that it may be taken care of.

Mr. NORRIS. Following the action of the majority of t~e committee it was my intention, when the McNary-Haugen bill was brought before the Senate, to offer the other bill as a substitute, so that they would both be before ~he Senate, and the Senate could act in any way it saw fit. · If it had not been f?r the fact I have mentioned, this matter would have been disposed of long ago because at the time it was reported I do not think it occurred 'to any member of the committee that a technical objection would lie in the' Senate against the McNaryHaugen bill.

I have my doubts now, as a matter of parliamentary law, whether any such objection is good; but the Senator from Oregon, who reported the bill, and parliamentaria_ns of the Senate who have looked into the matter feel, I am mformed, that a point of order made on the floor of the Senate would be good against it on account of the constitutional limitat~on of the Senate as to originating revenue legislation. That is the re.ason why this delay has occurred. The McNary-Haugen bill has been on the calendar a long, long time.

If we had been able to take it up, I would have immediately offered the other bill as a substitute, and they would both have been before the Senate. With that condition ·before us, knowing that the same bill was pending in the Committee on Agri· culture in the House, those who favored the legislation, since it had to pass both Houses anyway, thought we would let. the House act first. I am not complaining because the committee felt that way, because, as I said, the committee were acting in entire good faith; but the delay has come about from the reason I have stated.

Mr. McNARY. Mr. President-- . . The PRESIDENT pro tempore. Does the Senator from

Nebraska yield to the Senator from Oregon? Mr. NORRIS. I yield. Mr. McNARY. I am in sympathy with the attitude of the

chairman of the committee, and agree with all he has said. There is one ray of hope I may extend to him this morning, namely, that the House Cor_nmittee on Agriculture have reported the McNary-Haugen bill to-day--

Mr. NORRIS. When did they report it? l\fr. McNARY. This morning, at 12 o'clock; and next week

they will take it up for consideration, and when it comes over bere probably the two bills will be before us, no doubt, so that the Senate can indicate its preference.

Mr. FRAZIER. J\Ir. President, I desire to say just a word in · regard to the attitude of the Senator from Nebraska [Mr. NonRIS], chairman of the Committee on Agriculture ~nd F?restry. The farmers of the Northwest are very anxious, mdeed, for some legislation looking to the relief of the situation out there. They feel and expect that Congress should do something toward helping to put the farmers on their feet and to help farming to get upon a paying basis. They have been waiting .anxiously for a long time. The President in his message recommended that something should be done for the benefit of agriculture.

Our farmers feel that a great deal of time has been wasted and that the subject is of sufficient importance to have justified action upon it long before this. Seeding time is at band and the farmers are discouraged because with present prices they can not get the cost of production and anything for their work which they are starting at the present time. They do not know what to do. They are going broke by the hundred·s and hundreds throughout the Northwest. Banking and busiQeSS institutions are going broke also. They feel that the Congress should and must do something to help them, and they are anxiously and patiently waiting for some action to _ be taken here.

I am very glad the Senator from Nebraska has made the statement which he did and I trust that action will be taken in the very near future looking to some relief of the agricul-tural situation. ·

LOAN OF CANNON ',1'0 WILLIAM AND MARY CO~EGE The Senate, as in Committee of the Whole, resumed the con

sideration of the bill (H. R. 1831) to loan to the College of William and Mary in Virginia two of the cannon surrendered by the British at Yorktown on October 19, 1781.

The bill was reported to the Senate without amendment, prdered te> a third reading, read the third .time, and pa~ .

NAVAL APPROPRIATIONS

The PRESIDENT pro tempore. The Senate will now pro· ceed with the . naval appropriation bm, House bill 6820.· - _

The Senate, as in Committee of the Whole, proceeded to consider the pill ( H. R. 6820) m.a~ing appropriations for the Navy Department and the naval service for the fiscal year ending June 30, 1925, and for other purposes, which had been reported from the Committee on Appropriations with amendments.

Mr. DIAL. Mr. President, I ask unanimous consent to call up a resolution to which I tbink there will be no objection.

The PRESIDENT pro tempore. The Senator from South Carolina- asks unanimous consent to call up a resolution. Is there objection?

Mr. HALE. I have announced already that I could not yield to my other requests if we are going to get any action on the naval appropriation bill. I hope the Senator will not insist.

Mr. DIAL. Very well. I withdraw the request. The PRESIDENT pro tempore. The Senator from South

Carolina withdraws his request. Mr. DIAL. I understand that the naval appropriation ' bill

is before the Senate? The PRESIDENT pro tempore. It is. Mr. DIAL. Mr. President, we are making appropriations

here from day to day increasing the expenses of the people. Therefore it might not be out of place to consider where we expect to realize the funds with which to meet the obligatfons which we are creating.

I read a day or two ago in the Washington Post a very en· couraging statement from the Belgian· Government about the debt of that Government due to the United States. I ask to have inserted in the R1woRD at this point as a part of my remarks an interview with the Premier of Belgium upon that subject.

The PRESIDENT pro tempore. Without objection, it is so ordered.

The article . referred to is as follows : BELGIUM DECIDES TO FU~D ITS WAR DEBT TO AMERICA-INTRODUCTION

OF BILL FOLLOWS LONG CONVERSATION AT LU~CHEON BETWEEN PRE

. MIER TEUNIS AND GEN. CHARLES G. DA WES

BnussELS, April 10 (by A. P.).-The funding of Belgium's foreign debt, especially that portion particularly concerning the United States, was virtually decided upon in the course of a conversation to.-day between Charles G. Dawes, Prem.ier Theunis, and l\finister of Economics Van de Vyvere.

Emile Francqui, who 1s regarded as the sponsor of the measure and was one of the fellow members of General Dawes on the experts' co.mmlttee, was ill ·with grip and was unable to attend the luncheon at which the proposal was discussed, but kept in constant communica· tion by telephone.

Premier Theunis told General Dawe& the Belgian Government was grateful to the United States for its decision of 1919, which postponed the capital and interest reimbursement ·of Belgium's debt to th~ . Washington Government.

"The great American Republic," said the Premier, "gave us evidence of its precious friendship, but Belgium will pay her debts, never fear.

" You must first give us time to reorganize our finances and put our house in order, so that our francs in the exchange market will be in such a position that we will not be considered a 'p-00.r

country cousin.' At last, through your great report, we are beginning to see clear through the rf'paration problem. We have given ou1· word and Belgium keeps her word either in war or in peace.

"We have no doubt,'' continued the Premier, "that when negotiations are opened concerning the interallied debts the United States will take into account the fact that our financial situation has been cruelly aft'ected by the war, and that she will not request us to pay beyond our capacity. Coincident with Germany's acceptance of your report· and her payments on reparations we can begin to pay our debts to America."

Premier Theunis repeated the same declarations in the chamber amid applause and followed this by introducing a bill for the funding of Belgium's foreign debt, which will be referred to the finance committee of the chamber for a recommendation.

Mr. DIAL. Mr. President, we ·should take stock to see where we stand financially. When we consider that the United States Government owes ovei· $21,000,000,000 and that we are appropriating millions and millions and hundreds of millions more and that the taxes are higher than the people can bear, we should try to put our house ·in order. We have had a very good commission appoiated to look after the collection of the debts which foreign countries owe the United States. I

.192~ co:~GRESSIONAL RECORD-SENATE 7015 hope that they will procee9 to bring about a settlement of those the other countries to the United States, as set forth at page foreign debts as quickly as possible. 255 of the annual report of the Secretary of the Treasury.

At this point I ask to have inserted in the RECORD as a part · There being no objection, the table was ordered to be .of my remarks an extract from a ·table showing the debts of printed in the RECORD, as follows :

Obligations of foreA.gn goVffnments held. 1>11 Ute Umted States Treasury, t-Og.ether with in.tere.st acoruietl ana rema~ unpaid t1U31·oon., as of the last in.terest peri.O'dl prior to or endii.ng with Nowmlber 15, 1.9!3

'

Country

Obligations representing cash advanced under Liberty bond acts

Obligations received . from the Secretary of

War and the Secretary· of the Navy on account of sales of surplus war material (act of July 9, 1918)

Obligations received from the American Relief Administration on account of relief supplies furnished (act of Feb. 25, 1919)

Obligations received from the United States Grain Corporation on account of sales of tlour (act

-of Mar. 30, 1920)

Total

Total indebtedness

Interest (in· Principal ~~d~~ w~:: Principal Interest Principal Interest Principal Interest Principal

1

• Interest 15, 1923)

!=~~= =:::: ::::~::::::::::: :::::::::::::::!::::::::::::: :::::::::::: ~:~::~~~~~ !~:~:~~~~ ~:~:~:~ 4,$6~: ~: :4 $~ ~: ~~: ~ $~ =: ~: $~ ~: ~:.:: Belgium______ $347, 210, 808. 68 $77, 433, 602. 90 $29,818,761.38 (1

)(3) ------------ ------------ ------------ ------------ 377, 029, 570. 06 1 77, 433, 602. 90 454, 463, 172. 96

C zechoslo-Vll.kla. __ ---- 61, 974, 041. 10 13, 234, 843. 87 20, 604, 302. 49 $3,988,408.38 6, 428, 089. 191, 285, 617. 84 2, 873, 238. 25 517, 182. 90 91, 879, 671. 03 19, 026, 052. 99 110, 905, 724. 02

Esthonia ______ ---------------- --------------- 12, 213, 377. 88 2, 442, 675. 601, 785, 767. 72 346, 907. 35 ------------ ·----------- 13, 999, 145. 60 2, 789, 582. 95 16, 788, 728. 55 Finland _______ ---------------- --------------- ------------- ------------ 38,281,926.17 718, 073. 83 ------------ ------------ 8, 281, 926.17 718, 073. 83 9, 000, 000. 00 France ________ 2, 933, 265, 231. 96 650, 051, 228. 67 407,341,145.01 (1) ------------ ------------ ------------ ------------ 3, 340, 606, 376. 97 650, 051, 228. 67 3, 990, 657, 605. 64

g~t~:;~~~= ~~~~~~:~·~~ ~~~~~~~~~~ =:::::::::::= :::::::::::: :::::::::::: :::::::::::: i;~:iii:~i ==~:i~:ii 4, ~ 5: 5: ~ ---i;~;~:~ 41

6Ti: 5: ~: ~ Italy __________ 1, 647, 997, 050. 16 367, 082, 346. 73 ------------- ------------ ------------ ------------ ----~------- ------------ 1, 647, 997, 050. 16 367, 082, 346. 73 2, 015, 079, 396. 89 Latvia ________ ------------------------------- 2, 521, 869. 32 378, 107. 66 2, 610, 417. 82 522, 083. 56 ------------ ------------ 5, 132, 287.14 900, 191. 22 6, 032, 478. 36 Liberia________ 26, 000. 00 4, 818. 85 ------------- ------------ ------------ ------------ ------------ ------------ 26, 000. 00 4, 818. 85 30, 818. 85· Lithuania _____ ------------------------------- 4, 159, 491. 96 831, 898. 40 822, 136. 07 164, 4Zl. 20 ------------ ------------ 4, 981, 628. 03 996, 325. 60 5, 977, 953. 63 Nicaragua _____ ------------------------------- 175, 590. 28 (1) ------------ ------------ ------------ ------------ 175, 590. 28 (1) 175, 590. 28 Poland ________ -------------·------------------ 79, 946, 692. 2412,044,000.47 51,671,749.3610,334,349.88 24,312,514.37 4, 161, 997. 53 155, 930, 955. 97 26, 540, 347. 88 182, 471, 303. 85 Rumania_ _ ___ 23, 205, 819. 52 5, 085, 993. 98 12, 922, 675. 42 2, 584, 535. 12 ------------ ------------ ------------ ------------ 36, 128, 494. 94 7, 670, 529.10 43, 799, 024. 04 Russia_------- 187, 729, 750. 00 48, 559, 853. 07 406, 082. 30 30, 456. 18 4, 465, 465. 07 711, 465. 81 ------------ ------------ 192, 001, 297. 37 49, 301, 775. 06 241, 903, 072. 4.3 Yugoslavia____ 26, 059, 865. 40 5, 918, 019. 'rl 24, 978, 020. 99 4, 631, 250. 84 ------------ ------------ ------------ ------------ 51, 037, 886. 39 10, 549, '%10. 11 61, 587, 156. 50

Tota.I ___ 9; 842, 468, 566. 82 1,168,870, 707. 34 595,088,009.'rl 26,931,332.65 84,093,963.55 15,688,607 .91 56,858,802.49 10,010,254.97 10,578,509,342. 13 1,221,500,902. 87 11,800,010,245. 00

1 No interest due on Nicaraguan notes until maturity, as is also the case of certain Belgian obligations aggregating $2,284,151.40. 2 Interest has been paid as it became due. a Agreement providing for refunding of these obligations as to both principal and interest executed, subject to approval of Congress, on May 1, 1923. Bonds of Finland

amounting to $9,000,000 will be delivered to the Treasury in exchange for the obligations now held if the agreement is approved. • Refunding bonds received under terms of agreement concluded pursuant to the act of Congress approved Feb. 9, 1922, as amended by act of Congress approved Feb.

28, 1923.

Afr. DIAL. The table shows that the principal debt of the toreign countries to the United States is $10,578,509,342.13. In addition the enormous sum of $1,221,500,902.87 in interest has already accrued. It is encouraging to see the efforts of certain of those countries in the matter of funding those debts. Great Britain has refunded her debt and some of the other countries like Belgium are proceeding to refund their debts. · I want to congratulate the people of Belgium for their conduct both in times of peace and times of war. Cuba has funded her debt. Even the small country of Finland has funded its debt. We read in the press that other countries would like to settle their debts, but it is claimed that they are deterred from so doing because such an act might offend France and Italy. I trust that the report ls without foundation. However that might be, I think our commission should make renewed efforts to bring about a complete settlement of all such debts.

Just yesterday the Senate voted a bonus of some four billion dollars for ex-service men, and now we should look about and. see where the money is to come from. I voted against the proposition. We have now before us a resolution appropriating $10,000,000 for the alleged purpose of helping the women and· children of Germany. I feel that there ls no constitutional right and no authority anywhere for us to donate the money of the people of this country to be used by the people of other countries. We have no legal right and no moral right to go into our Treasury for any such purpose. · It establishes a bad precedent. I spoke and voted against . eve.l} the donation to Russia. I think, perhaps, I am the only Senator who took that stand, but I believe that the wisdom of my position at that time has since been . demonstrated. I stated then that if we made that appropriation it would not be long until they would be back here asking for more, and I understand they did come back and ask for $15,000,000 additional. We do not have to go to Russia or Germany to find poor people.

It is a wrong principle for one government to donate the hard-earned money of ite taxpayers to support the people of other governments. It is absolutely unconstitutional, according to my way of thinking. Even under the general welfare clause of the Constitution we could not do it legally. That clause does · not refer to the welfare of the people ·of other countrieR, but ·to the welfare of the people of this country.

The proposition of appropriating $10,000,000 to take care of the women and children of Germany is a peculiar one. How in the world can we separate the benefits to be derived from that money for the women and children from the benefits that would accrue to the men of Germany?

Mr. COPELAND. Mr. President--Mr. DIAL. I yield to the Senator from New York. Mr. COPELAND. I think it is more or less presumptuous

for me to discuss a constitutional question, especially with a constitutional lawyer, but bas it occurred to the Senator that the undernourishment of children in Germany means that those children will have rickets and tuberculosis, and that when the children in Germany have tuberculosis it is a menace to our children? I am sure that if the Senator could come to appreciate that whenever we have tuberculosis anywhere in the world our people are in danger, he would then feel that under the general-welfare clause of the Constitution it might well be our duty to protect them, because by protecting those children we are protecting our own.

Mr. DIAI~. The doctor is a good ·hand to prescribe; but, to use an expression of the street, he covers too much territory. I do not think the working people of the United States would approve of having the results of their toil spent to keep up the children of all the nations of the world. By all means, we ought not to go to Germany, the nation which a few years ago sold, I believe, some $3,000,000,QOO of its currency to the people of the United States, and then the currency went down practically to nothing. There is the nation that brought on the war, and not a single foot of her territory was invaded during the war. Her people to-day I am told live as well as the people of almost any country, and yet they come here and appeal to this Government to take our money and give it to their women and children. Under such a camouflage of helping the women and children we certainly would be helping the men of that country also.

Mr. COPELAND. I am sure the Senator does not intend to convey the impression that the starving babes over there started the war.

Mr. DIAL. No; but their ancestors did. Mr. COPELAND. So far as I am concerned, whenever a

babe cries I do not care 1n what language it cries, I want to help it if I have the opportunity.

7016 CONGRESSION A:L REOORD--SEN ATE APRIL 2·4:

1 Mr. DIAL. The Senator touches a very tender cord when he speaks about a babe crying. I am the father of 1(} and I have had some experience with the walls ot babies, but my ear is not so keen as to hear th& cry of babes all around the world. I have eight living children, and the more we have tfle more we are blessed. In Germany or elsewhere there bad to be daddies before there were babies, and German daddles

1 should also be put to work.

I Mr. President, the proposition before Congress is absolutely

indefensible. This is presidential election year and it is intended merely to buy ·votes for somebody, · The proposition

I ought never to have been introduced in Congress. It ougb,t

I never to have been considered. We are bringing <>Ul'selves into contempt of all the business of the country. If Congress were to adjourn now. it would give more relief and mo.re pleasure to the busineJ:;s of the country than any other act

I that could be performed by the Congress of the United States. We do nat have to go to Germany to hear of poverty. We.

I hear of it all over this country. Here are tlle wheat growers of the West who have been wailing and knocking at the Treasury and have finally succeeded in taking a few million dollars

1 out of the Treasury. Here are the farmers fl'{)m the irrigated , lands of the West appealing to the President and the Presti dent sending us a message suggesting the cancellation of $27,0()(>t()()O ot loans that those people owe the Government of the United States, and that is about what I expected.

I believe during the first year after I took my f:.eat in the 1 Senate one ot those irrigation propositions to borr-0w $50,000,000 was presented here. I am glad that I had a part in defeating

I it There was another one right behind it proposing to borrow 1·$100,000,000, but its proponents got frightened and it did not I come to the front, I believe. at that session. · Here we find that by the Government going into business, doing what it bas no right to do, we have lost $27,000,000 out there, and possibly will lose $8,000,000 more. It is time for us to stop doing what we are not authorized under the Constitution to do and that

1 we should stop doing what -0ur constituents did not elect us to do.

Mr. President, it is easy to vote taxes, but it is hard to meet the obligations. I fear Members of Congress, with all the abillty that ls here, do not fully realize that it is very easy

. to place taxes on people, that it is easy to sell bonds, but that pay day will come. I fear we forget that the taxpayer is not stationary. It is true one can not move land or railroads, but when tues become too burdensome banks may be closed, trust companies and insurance companies may be closed, and merchants can sell out and retire from buslne.sa-, Then the taxes will be doubled up on people wbo can not get a way from paying them. Taxes wjll be a burden upon labor and a burden upon everybody who tries to do sometbing to add to the wealth of the country.

What we should do is not to donate money, but if we do anything at all we should render assistance by way of a loan. That would be going a long way, but we should make a loan to enable tho~ peoi;>le to get hoes and ~akes and some seeds and let them go to work and make a living. They should stop looking to the United States to support all the nations of the world. I ba ve a bill now pending before the Committee on Agriculture to use $150,000,QOO of the tunds in t:tte hands ot the Alien Property Custodian with whleh to help export raw agricultural products. Tbat would give to tbe people o:t Germany something with which to work. They could then turu their product into casb. It would give them employment and make · them independent, self-respecting people, people who would not want to come and ask donation111 at the hands of anybody. We have the raw cotton, which they so much desire and need. Under my bill surplus cotton would be exported and we would get a better price for the next crop,

So, until we get .back to the old-fashioned rule of work, and hard work, producing something and supporting ourselves we

· shall not have such a country as we should have. We have splendid, efficient labor who w~nt to work:. .

Mr. President. since my dlstinguLshed friend the Senator from New York [Mr. COPEUND] has spoken of the co.ustitu· tiona.1 question. I desire to say that I have a brief on that question which was written by Mr. Lanier, showing that such do!1atlons are absolutely without authority. The author ot this article is .a lawyer of 25 ¥ears' active p\'actice, a member of the ~ur of the SUPreme Court of the United States, and.

, was assistant to the attorney general of the Pb,iUppiue~ fo:r I nearly five years, and an officer of tbe Gene.r.al Staff of the American Army in the Worl<l War. I ask that this brief may be inserted in the REcoRD a.s a pa.rt of my remark$.

The PRESIDENT pro tempore. Without objection it ts so ordered. '

The matter referred to is as :tollows: [From the Virginia Law Register for April, 1!)24]

.il'FllOPIUA'l'ION or MON&Y BY OONGUSS TO l'EilD TlllJ Gl!lRllfANS-.AN

UNPO'llLISHJ!U> LETTl!llt TO 9.'RB FOREIGN AFFAIRS COMi\IITTEE OF THI! HOUSE OF REPRESENTATIVES 1

I am advised you concluded a hearing yesterday on the Newton bill, and another ot sl,milar purport, having for their object the approprlation by Congress Qf from twenty-five to seventy millions of dollars to feed .. the starving peo.ple of Germany " ; and that notwitbatanding the adjourn\l}ent of further hearings on these bills r ~a.y file a protest. w~iclt will be duly considered by you ~nd given ' a place in your printed rer>ort.

I ~esire, .as a taxpayer, a veteran of the World War, and a loyal American citizen to enter my ~a.rnest and emphatic protest against I these bills '1lpon ihe three following grounds primarily though there are other objections that can be urged against them: '

First. Because I believe them unconstitutional · Seco~. Because, conceding their constitutionaltty, there la no. justi

fiable necessity for the ap:prop.riations; and Third. Because they would be an unjust imposition and burden

upon our already Qve1·ta.xed peQple.

UNCONSTITUTIOYALITY OJ' BILLS

There is but one provision of the Constitution under which 11 elnim of authority for these bills can be set up, a'Qd that is found in section 8 of Article I, wW.ch provides :

" The Congress shall have power to lay and collect taJ:es.. duties, imposts, and excises to pay the ('lebts and provide for tile common defense and general weltare of the United States ...

Co~gl!ess can not assume to act under the preamble of the Constitution, for the Supreme Court has decided. in Jacobson v. Masi\l;\cllU.setts (197 U. S. 22) ; Dorr v. Unlt~d States (1915 U. S. 140) that no power Is derived from the preamble of the Constitution to enact any ' statut~ : and that t~e Constitution it8elt is the only source ot power authorizing action by any branch of the Federal Goverument.

The question therefor~ ts, Has Congress the pQwer to enact tbesff bills, or either of them, under the provision& ot eeetion 8, .Article I, above cited? It can not be elahned that the money thus appropriated ls ta pay any debt of the Unitaj States or t.o provide for the common defense. Therefore its proponents must rely for Its constitutlQD· ality upon the ground that it is a provision for, and necessary to, the "general w.elfare of the United States."

Fortunately we are not without some decisions of the courts construing the powel"8 of Congress under this sedfon. Some years ago Congress passed an act whereby the Secretary of Agriculture wait empowered to have made a careful inspection of cattle, sheep, and hogs at slaughterhousea located in the several States, which were · about to be slaughtered, the products of which were intended for , sale in other States or foPeign countries. Inspectors were duly appointed by the Secretary, one of whom accepted a bribe in discharge of his duties under the act. He was :Indicted and set up the unconstitutionality of the act as a defense. The indictment was quashed on the ground that the act was without constitutional warrant, and was therefore void, and that the offense as eharged could n~t be committed under an act that had no legal e:dstence. In t-hi11 case (United States v. '.Boyer, 815 Fed. •29) the Government contended that the act was a valid exercise of power under section 8, Article I, as being for "the general welfare of the Unite<J States." In passinJ .upon this question the court said, among other things, that thill gen- , eral we'lfare clause contains no provision of power, of itself, to enact 1

any legislation; but, on the contrary, the words "and provide for the common defense and general welfare," is a limitation of the

1 ·

taxing power of the United States, and that only. The opinloa quotes approvingly and at length the opinion <>f Mr. Justice Story, set forth in his Commentaries on the Constitution (secs. 907-908), , tbat the words, "pay the debte and provide for the common d~ense and general welfare," are words qualifying the ~oweM of taxation, and that any tax laid by Congress for neither ot these objects would be unoonstitutional, as an excess or its legislative authority.

In Martin 1.1. Hunter's Le8see (1 Wheat. 326), the Supreme Court, speaking through Chief Justice Marshall, wd :

"Tl!.e GoverD.Jll('nt of the United States can claim no powera which are not granted to it bf the Constitution, and the poweT• actually granted must be such as are expressly given, or givea bJ' necessary implication.••

Jn th~ Legal Tender Cases (12 Wall. 4l'l7), the coQrt enunciated its attitude toward legitlation that !ilhould enuse Congresa t~ deliberate with great care upon propos.ed 1egislatlon to make sure that It 111 within the oonstltutfona.l power, for the:y, like the court, a.re flWOf'D

1 In ,Publishing tbiljl letter tbh1 magazine doea not tnt~ud it as JU1 expression Qf its opinlon upoD the IXJ.etlts of the question.s lnvplve(I.

1924 CONGRESSIONAL RECORD-SEN ATE 7017 to support the Constitution, and it is oniy under a clear and indisputable showing that the court will holc.l acts of Congress unconstitutional, notwithstanding that they may work great hardship and in-

. justice to those they effect. The court said : "A decent regard for a coordinate branch of the Government

demanc.ls tllat the judiciary should assume, until the contrary is clearly shown, that there has been no transgression of power by Congress, all the members of which are under the obligation of an oath of fidelity to the Oanstitution." [ltallc.s are mine.]

But as correlative to this statement is the following doctrine announced by Chief Justice Marshall in th~ justly celebrated case of McCulloch v. Maryland (4 Wheat. 405) :

" Should Congress, in the execution of its powers, adopt measures which are prohibited by the Constitution, or should Congress, under the pretext of executing its powers, pass laws for the accomplishment of objects not intrusted to the Government, it would be the painful duty of this tl"ibunal, should such a case requiring such a decision come before it, to say that such an act was not the law of the land."

UNJUST BURDEN ON OUR PEOPLE

These proposrd appropriatlons-cari·ying seventy millions of doJlars in the Newton bill, for example--which are to be wrung by taxation from our already overburdened people, are certainly not to pay the debts of the United States or to provide for the common defense, and upon what hypothesis they can be defended as being for the general welfare of the United States is beyond comprehension. It ls quite a stretch of imagination to say that by conserying the welfare of the German people we will be gaining their good will and promoting and securing a market in future for our surplus products, and thereby be providing for "the general welfare of the United States." In the first place, good will that has to be bought ls precarious and never lasting, and commercial markets have to depend upon other things than mere good will,· for they are subject to the inexorable law of competition.

In whatever aspect this proposition is regarded it appears as a mere pretext for the execution of a power for the accomplishment of an object not intrusted to Congress by the Constitution.

There is no power of ·government of which the people are more justly jealous than the power of taxation, or one that is more subject to abuse. Its abuse was never more manifest than it is to-day by Federal, State, and municipal governments. Each of them are engaging in activities that lie outside of their legitimate scope.. The Federal Government is building up in Washington a bureaucracy that will be crushed some day by its own weight and costliness. Bonds have been issued by our States and cities until they have almost exhausted their credit, and between the three our people are now under a per capita taxation o! nearly $300 annually, to say nothing of the excessive costs of living to which these tremendous taxes contribute.

POLITtCAL ASPECTS OF THJ!I llrUTTllR

There is another phase of this matter that should cause Members of Congress to pause before they pass this legislation, and that is the certain and unavoillable conclusion that will be reached by the great majority of our people, justly or unjustly, that those who support it are being moved to do so by political considerations. Their motives may be pure and their purpose altruistic, but the man on the street, remembering that there is a very large pro-German vote in our country, and that owing to overproduction and the absence· of foreign markets for our surplus wheat our fa1·mers of the West, who have much wheat to sell, are suffering because there is no demand for it, will conclude, and the charge will be made as it has already been made, tbat the supporters of these bills are actuated by politics and are bartering away the people's money for votes of the pro-qermans an<l wheat growers of the West.

NO NEED FOR APPROPRIATION

I have presented the legal phases of the questio.n, touched upon the political, and indicated the injustice of this additional burden upon our taxpayers.

The final question, Are the conditions in Germany such as to make this appropriation imperatively necessary upon the grounds of humanitarianism? President Ilibbin, of Princeton University, and some other gentlemen equally trustworthy, who recently 1·eturned from Germany, have stated that the conditions are not as bad as they have been represented, and that statem'ents that the people are starving are pure buncombe. There is undoubtedly a bad situation among the professional classes in Germany, such as lawyers, teachers, doctors, and scientists. These are the future leaders of Germany, particularly the student body, and it is they who carry the torch of civilization, and upon whom depend the future · of Germany in all those fundamentals that go to make up and advance what we call modern civilization. Their needs are, however, being looked after by organizations in our own and in other countries. Help ls in particular being extended to the students ln the universities, aid to them being given even by the French.

In the consideration of this question there are certain facts that should not be lost sight of. We sh.ould remember that the German Government, with the full approval and the hearty support of the Germ'an people, made an u2lprovoked attack upon the civilization of the world, and for universal domination, conducting t1ieir military operations with a brutality and ruthlessness worthy of Jenghis Khan and his Mogols, known in history as "scourges of God," and who killed 18,500,000 people in 12 years.

When the Gernrans met with defeat, after almost destroying the resources and civillzation of Europe, and which they would have done but for our timely intervention, they refused to accept the adverse decision of the sword. Instead of manfully and with the spirit of the true sportsman accepting the results of the fortunes of war, and trying in good faith to make recompense for their wanton destruction, they have welched and whined, and sought in every possible way to avoid their jnst obligations. Such conditions as exist among the people to-day have been deliberately produced by their leaders and men of wealth to avoid and if possible to escape payment of their just obligations. With premeditation they debased their curFency to the vanishing point; robbed their own people and hundreds of thousands in other countries, especially our own, who had invested in their m'arks and other securities, while their people of means have bidden their wealth in foreign countries. There is to-day ample means among the industrialists of Germany to relleve their own people, to whom they owe this duty-especially since they have evaded every other obligation, including that first duty of citizenship, which is to make their just contributions to the support of their government. They have avoided and refused to pay taxes for the maintenance of their government and the disch1uge of its obligations, and this burden of theirs has fallen upon the JX..:'<>;l"C'<l.

of Germany, who are in no condition to bear it, because of the ve1 situation brought about by these leaders and men of wealth.

The Germans are unreconciled to their defeat and will not admit it. They are stlll defiant and unrepentant, and have clearly indicated their intention to wage a war of revenge when the opportune time shall come.

.God Himself neither forgives nor helps the unrepentant and the unregenente or those who refuse to help themselves. Are we under any moral or other obligation to be more generous or merciful than He?

I have been uncompromisingly opposed to the soldier bonus on principle, and because it is unsound economically and would do the veterans more harm than good in the long run, though I would be a beneficiary of it ; but if Congress can make a gift of $70,000,000 of the taxpayers' m'Oney to a foreign people, but recently our enemies, and who by the war for which. they were responsible thrust upon our people an expenditure and indebtedness of $33,000,000,000, Congress can no longer deny this g1:atuity to our soldiers, who fought to protect us from German domination.

ALEXANDER SIDNEY LANIER.

WASHINGTON, D. C.

Mr. DIAL. Mr. President, certainly as a matter of policy, even if we had the authority, we should not go to such an extent as to donate the people's money for these purposes. So I hope that the commission that we have appointed to settle the debts of foreign nations to the United States will notify those countries that it is now time to begin to come togethe:r and to refund those debts. Of course, we can not collect them all at once, but the debtor countries can begin to pay interest on their indebtedness and to put that indebtedness into proper shape.

I do not like to see my Government owe so much money; and therefore I should like for the debts which are due us to be put into proper shape, in order that we may begin to reduce our indebtedness and see where we now stand. I am glad we ue going to discuss the tax reduction bill, and I hope that we shall give the people some speedy relief. If we stop making long speeches and do a little more voting, we ought to pass the tax reduction bill ~n a week, and we should thereby encouruge every industry in the United States.

When the people realize out of every 100 cents of taxes paid 93 cents goes to pay for past wars and to pay for preparation for future wars, a protest will be made that will be heard by every legislator.

Mr. COPELAND. Mr. President, I had expected when the matter of German relief actually came before the Senate to say something about it; not perhaps to make a long speech, such as has· been condemned by the Senator from South Carolina, but, at least, to place in the RECORD some reasons why, in my juugment, this money should be voted. I do not think it makes any difference whether or not Germany was our enemy during the war. Eighty per cent of the people who now live in Germany , are women or children. If we are going to hate we should solely hate the other, the 20 per cent.

J018 CONG.RESSION AL RECORD--SEN ATE APRIL 2.4

However, Mr. President, I d~re to say that I can not view this problem simply in the light of dollars and cents. I have seen thousands o:t those little children, thin, emaciated, every bone el10-wing, children 10 yen.rs of age who have not cut a tooth. I ~h to say to my digtinguished friend from South Cnrolina, who has bad experience with 10 babi-es, that 1t is an unusual thlng for a child to arrtve at 10 yeara of age without cutting a tooth. His children cut teeth in the first months of life, because, like 1 the father, they were well nourished; but there are thousands of children in Germa.ny who are SO' debiUtated, so undernourished, so diseased, by reason of th-e lack of food th.at even up to the age of 18 or-10 years they have not had nourishment enough to cnt teeth. Children have been born. in central and eastern Europe without finger nails because of the undernourishment of the mothers.

I spoke about the~constitutional question, the question as to whether -0r not we have a right to- use our money to take car~ of those •children. I had occasion a couple of ,-ears ago to speak to a large nudlence of persons on the lower East Side bf New Yo1·k City. As I looked into their faces it seemed to me that e\·ei·y one lin.d just landed ln the United States.

I wondered about the chj)dren. So the ne:x:t day I sent one of the experts of the .health department over to the schoolhotiee nearest to this meeting place, and in one schoolroom there were found 11 children 'With ineipient tuberculosis. Nine o'f. those children had just 'land:ed 'in the United States. Some may say that that showed carelessness on the J)art 1ot the ~uarahtine officials~ It did not. 1t is 'fery difficult, indeed, to determine in the time which is at the disp()sal of the doctors at quara.ntine whether 'Or not u child hes incipient tuberculosis; but when there are . brought into one sectlon of the icity nine roses from the other side ·of children with this disease, it wm only be a question of a little tlme when tubereulosls will rage in that region. So I say if ;by the expenditu're of ~10~000,000 we can

· to some extent 'relie"e undernourishment of chi1d1·en in the central empires we shall be protecting our own children at the same time. ' . ., r •

Wha.t is gQing to be '<'.k>:oo with this money'! As "I understand, we ate :not going to send a single dollar Mer ther~. We al'e going to spend that $10,000,000-for grain and foodstuffs froiri the United States, 'Packed in cotton bag& made from the cotton raised in South .Carolina. We a.re going to spend all of that money here. That is- what was done With a large part of the money that we loaned fereign nations thtring the war. So, after all, I am not sure, I may sa.y, Mr. President, but in spending the $10,000,000 to relieve nndernout'ishment and to save froin starvation the ~hlldren of-Germany, we wm be 1helptng to relieve some starvation and certainly to prevent disease in the -qnited States of America. Therefore, wlren the ttm.e comes for this bill to be presented to the· .Senate and to be acted upon, so far as I am concerned, I shall vote for it very cheerfully, .feeling that in so doing I am living up to the oath which I took wp.en I a.taumed my seat tn thls body.

Mr. KING obtained the floor. Mr. BALE. Mr. Pr@@ident--The PRESIDING OFFIOER (Mr. FESS in th-e c'Mtr). Does

the Senator from Utah yield to the Senator from Maine1 l\Ir. KING. I yi@ld. Mr. HALE. Before proceeding with hi~ «peeeh, will the

Senator allow me to -ask that the formal reading <>f the bill be dispensed with?

Mr. KING. I yield for that purpose . .Mr. HA.LE. ' I ask unanimous consent that the formal read~

Ing of the bill be dispensed -with and that the bill be read for amendment, the amendments of the committee to be flmt considered.

Tl.ta PRESIDING OFFICER. The Senator from Maine asks unanimous consent that the formal reading of the bill may be dispensed with and that the blll be read for amendment, the committee amendments to be ftret considered.

Mr. KING. That is consented to so far as I a.m concerned, with the understanding tbat the bill shall be read in full and not skipped over. I want every provision of the bill read.

The PRESIDING OFFICER. W1th6ut objection, the i•equest for unanimous consent by the Senator from Maine is granted.

AFFAIRS IN RUSSIA

Mr. KING add1·essed the Senate in continuation of his speech of .Tanuary 22, 1924. After having spoken for several minutes,

Mr. WALSH t:>f :Massachusetts. Mr. President~ · llr. KING. l yield to the Senator. Mr. WALSH of Massachusetts. Would not the Senator like

to have a quorum can? · 1

. 1\Ir. KING. No; '1 do not care for that. Bena tors are absent ~t· luncheon. The understanding was that we would take up-·

the naval appropriation bill, and none or the members of the Na:val Affairs Committee seemed to be interested in the bill. So 1 am b-espassing upon the Committee on Naval Affairs, of which I am a member.

Mr. WALSH of Massachusetts. I am sure the address of the Senator from Utah will be well worth listening to, as ar~ all the addresses delivered by him. .

Mr. COPELAND. Mr. President, will the Senator yield? Mr. KING. I yield. Mr. COPELAND. The chairman of the Committee on Naval

Atrairs is present, but I do not see any other Republicans upon the floor.

1\Ir. KING. I think there are a nutnb"er of Senators present on the other side. Usually when we consider a bill very few members o:t the committee having it in charge are present.

l\Ir. WALSH of l\fassachusefts. Whtit is the particular subject matter the Senator is going to discuss?

l\fr. KING. 1 I intend to 'discuss the question, Spall the United States recognize the Bolshevik Government or enter into trade relations with it?

Mr. W .ALSH of Massachusetts. I agree to, abide by the Sena~or's decision, but I really think. that the question is of such im,portance as to make desirable the presence of moue Senators than are now in the Chamber ..

1\fr .. KING. I think it is an important subject, but .if t11e Senator will respect my wishes I shall not ask that the roll be called. ,

Mr. W .ALSH of '.Massachusetts. I shall respect the Senator's wishes. ' .

CO~DITION.S IN RUSSIA

Mr. KING resumed and com!luded •the speech begun by IHu on Janual."y 22, 1914. 'l'he spe~h ln full is ·as 'follows:

January~!, 1924. l\1r. KING. Mr. President, the Russian question bu been

the subjeet of frequent discussion in the Senate during and since the World War. It J;las prGYo~ea great inte1~t not only in the executive and legislative. departments of our Goveimment but among the .Amecican people. Not only 'in the United States but .throughout the ·w-0rld the situation in Russia unde:u . Bols.hevik rule has profoundly a.ff ected the people and has been the cause of serious disquietude, if not grave alarm. Russia's vast territory, her unnumbered millions •of population, her dominating position in Europe and Asia, her menacing attitude toward the .governments and social sys.. tem of .the wo.rld-all conspire to make the Ru!!sian· pf()blem one of .the most importan.t with which the world has had t41 deal. This problem is not a local one.; it is a world problem .. The future of .Asia is involved in the future of Russia; and Europe's future fan not be dissociated from the Russian people. While Russia is ·tn part oriental, she reaches tar into "the Occident, and a Pan-Slav movement draws within tts circle ·many States of Europe. It is not Pan-Sbtvlsm n.1one which ~ompels the attention of the world, but it is the proposed schemes and avowed policies of Bolshevism thJtt produee international at">preheMion.

With the triumph or Bo.U1tlevlsm,~ the overthrow of the Kerensky government, and the >establishment of a cruel and despotic Bolshevik r~gime Which announced Its purpose to overthrow all governments and establish world eommunb1m, Russia took on a. new aspect and to many ~ame an. object of terrora devouring and destroying monster. Bolsh~vlsm is still a mystery to many. So much of myth and :fable hn.ve been published throughout the world concel"ning the So~1et Government and Russia under the Bolshevik ~gime that many honest people who have sought the truth have been unable to leai·n what was the truth.

Perhaps thousands of volumes have been written about Russia during and since the war; most of them have dealt with communism and "Bolshevik leaders, and conditions in Rtlssia particularly as affected by the Bolshevik re.gime. Many writers attempted to study the questions involved objectively. Some were concerned in establishing the thesis that the world was ripe for social and economic changes and that Russia under Bolshevik rule presented a most interesting experiment. There were some who examined the experiment critically--others sympathetically. Some books and pamphlets were so manifestly unfair to the Soviet Government and so inaccurate and prejudicM in the presentation of the facts as to call for criticism. They misrep1•esented conditions and gave enrrency to falsehoods again.st which '.Bolsheviks and fairminded persons had the right to protest.

Pamph1ets and books in ever-Increasing numbers bave been published fOr the purpo'Se of not only defending Bolshevism but propagating the communistic faith. Most of these pub-

1924 CONGRESSIONAL RECORD-SEN ATE ,7019 lications have disregarded econ<:>mic a.nd political coodition~ known fn ltussla that I Im&- opposed :recognition, and Mr. the facts of history and the events which were> transpiring in Ch!eberi.11 had· stated when application was made for permi~ Russia. The zeal of their authors in behalf of :Bolshevism sion. t0< enter RUssia that I was; regarded as an enemy ot tlle' led. them to pervert the facts, falsifying the: rect>rels, and suppt>rt Bolshevik Gc>vemment.. I stated to him, ns, l did to hundred~ a propaganda intended to deceive the wodd. of Bolshevik leaders, that I differentiated between the BoJ...

As stated, the Russ:ian question is net settled. In various sbevik G6vernment and the Russian people, that ] cllimpproved European chancelleries statesmen are seeking to deal witb of commUlliam, a:nd that tfl the Th!>lslhev.i:k regime persisted :Russia in a manner compatible with the honor of their country in its efforts to en.f@rce- it upon. the- people of Bossla, the sw:. and conducive to the peace ot the WOJi'ld. China has been rows ot the Russian people would t>e multiplied and the rehashaken by Bolshevik intrigtre, and radical movements in. Japan bilitation and development ef Russia wo\ll:d be postponed for are being fostered by emissaries of Russian communists. What an indefinite peried. shall be done with :Russia is a. question. not yet answered to ~t me to state at this point that oor pa.Fty traveled· freely the satisfaction o! most nations. It is perceived l>y most that without t.he slight~t :restra:int in an pa'rl5 o:f! Rl!l.Ssia. Wet both European and Asiatic problems can not be- finall;y; a.nd. were- subjected to no amwyancesr to no espionage, and ne obsatisfactorily determfned unless Russia participates in too 11taC'les wen: plnced in Om"' patbway to prevent the- fuHest and settlement. Recent congresses between. various European n:a- I most searching inquiiry into- the conditions to: »e found in tions and Turkey found that the .specter of Russia wa5' at . Rll!SSia~ We' went when and' where we pleased, wfthout dfre.~ every council table, and the uplifted band of Russia. was a tion from any Soviet auth.mritle~- We were· permitted to see warning against eve1·y contemplated movement. And the chief , substantially everythiug we asked to- seer andi there appeared executives of this Republic and the State Department UJlder to be no hesitation in replying to all questions propoumled, &r Democratic and Republican administrations have been. brought in f1lm:isbing: informa.tion, i.n regard.1 to any matters- o! which face to face wltl'1 the questi'on .. What shall tlie attitude of this the Soviet G.o-vernment bad knowledge.. I shotlild qualify this RepnMic be toward' the Bolshevik Government?" A resolu- by. sa.ying that I was not satls:ffud with tbe information in retton is now pendbJg before the Senate Foreign Relation.s Com- ga:rtl to the nittmber who had 'been killed: and impl.'isoned by the mittee> declaring tn favor of de jure recognition of the Bolshevik Bolshevik Government, nor with the infE>rmatkm. given as to. Government by the United States. . '. the activities of tlie ehekru; nor was I satisfied with the in--

Mr. President, r ba ve upon a number gf oecasions presented . forma.tion in :regard t.o the propaganda carried 0n by tbe tO' the Senate my views in regard to Russia and have sub- Bolshevik G4vemment, the CommuDi:St Party aind tl~e Thircf mftted what I believed to be the facts n to conditions in Inter:nat:ional But generall;si: speaking, with refei:ren~e to· conRussia. My interest in Russia is not new. I have for many ditions in Russia. quest:i@ns, were answered, in. most instaru?~ yea.rs believed that Rm1sia was destined to. :play a most. im- in a frank and satlsfactCi>'ry manner. portant r6le in thEf llistoey of the world.. The Slav .race, wtth Leaving Moscow we proeeedtdl by train ea.stevly to Kazan, itci genius- nrrd strength, its patience a11.d resignation., its the cente:r of the Ta.rtar· repnbLic. From tiJe'f& we Q&n-tianelld, evanescent,. mcQngruous,. and irreconcll- awl RU'3Elia·. Wei visited the bailding: m whidl· the C21ar and a.ble-wm powerf'nJly influence the future history of ma.nl'dnd.. his :family were lilvi11g at the time· of their m:mrde'I imd met IFhere are tnose who believe that as the S'Cepter of authority &ome who were familiar with that a.wful tragedy, If time and greatness ha:s passed. from rues and nations- in the permitted, it might not be impJ:uper to describe: the rooms. in cea.selesa tread· ot the centuries, sg sooner or later the sceptei; which the Czar and his family lilved!, au. theiT S\llT011.n.dh1gs of power will be held' by the Russian people as the represent&- an.a t:J:eatmeat during. theiir last days,. the· cellai: lilt which tLiey tfv~ of the Sla-vtc -race. wexe killed,. and. the mann.er: in which! they met their deatlt.

However, :ft is- unprofitable to speculate upon. this matter; . But. ethe:cs have teld the· story, willelt :pe~S',. ts· not pe.rti11elllt the imi;>ortant question is, What shall be the attitude of wr t<> tOO diseussioo at heel, SlO l . shalli not ente¥ in.to a desCl'ip~ Government toward the Soviet regime? Mr. President,. be- ti.on. of these matters. cause of my deep interest in the Russian people and i.n order Leaving Ekaterinbmg we J)r<>eeeded soothea.stei-liy to Chifyatbat I m1ght more Intelligently act upon matters brought to b~k ~ros1h1g. theJ liBe into SiJ&eria.. We mtced smelte.>s aRd the attentfon Cit the Seua:te, mvolvillg the relatfons Qf our Gov- mins 'and mines- an4 lew::ned mum ot the mineral wealth of' the! e1"hment to Russi.a a:rrd her people, r seized' the opportunity a Ural Monntain.~ From. the: point juat mentiroted we pPocee~lecl.l short time ago o'f vfl!ittng Russia:. Early fn July o.f 19"23. in . ZMJ!o11Bt mid from the1tee to lJ1a. Cflmpany with• the Senator from North J?akota [M~. LADD], · FalSlng on we• relldled the· city f1f Samara: upon the- v alga al!ld Prof. A. A . .Johnson, <1t New York,. I sailed from New York ru.irer. ]t is the renter 01· tfi& 11lm.ine· m-ea tn whreft million-g ~e-r Rn'Ssia. We spent a few days ~. G~any, w~ere we wei:e of persons su11eYed· increfilbl~ 11111.'dshipe and' 1tnnifredS' of thottJeined l1y Congressman F'RKA~ of W1:sconsm. W1til th~ paxty. sands met deai!h• frn-m· starvs:tfon. MftY I a<ld, in pn'3sing, that were Mr. Frank ~onnes, a linguist of abfiify, who lias for tae honors 0-r tha't l'eriod liave lt-Ot' ·yet . been teilcI. Starvation, many years f>een mtervreter f'or tile Supreme Court of the eanniballsm d'ea1ib amf a:wfut tragedies swept away villaO'eS' S'tate of New Yark (he \Vas famma.r. with Russ~a,. having and alniost· 'depopnlated! pnwinee!f.

0

b~n ti::ere at vartous time~· gn(t e:Iso .It.new t1ie ~~~inn. Ian- Tha-e our party divided, and a: number of us went by boat guageiy ' Mr'. Jsaa!<!. Thm Levine, a. jonrn~st of ~b1lity and .In- down tlle Volga: River, stopping a:t various p·otnts, including the teFJ!ec~ual integrity (having been. born m Russia and h3;vmg C!lty <>f Saratov~ A.t the tm.portant city ot T~ra:r:ttsen we Teft tlie tra.ve}e~ extensively throu~hout that. country, he was. ~n. a. boot and· were there joined by Sena:tor· Lmn:; In the journey posftion to lJ~ of p-eat assLStauce in om; efforts.. to of>tw.n a . thus far we had -crossed Russia, traveling tl'lousands. of miles, knowlef}ge of cond'itfons fn Russia) ; and Dr. Ge.org~ A. Bowen, had pe-netrated and passed; through the Ura.r Moontains into of Wasttfrrgt_on, a: ~olIIlg man of abi~lty, w_bo a~ted' as sec:etary : Siibffi'ai, had crossed through the Ttr:rtar· StateS' and met witlr fOI"" Senator LADn' Congressman FREAR, 111. Johnson., and, : milfions· of Mohammedan!!; mrd had been earned by boat upon myself. . . . : the majestic· bot!lom of Mother Vofgn, beloved by a:rr Russians

Le1:1vfng Berlin we proceeded .to W~rsaw, where we remained arrd 1"egarded with mueh the sa:me reverence as the Ganges. f(X" a fe!' days flD.d then by tr aln depttrted for Mosco~ - We River !S' by the people· of tar.-o:tY Indf~. :From Tsarttsen we cr9ssed mto Russta In the ratter vart of J'uly,. stopp.mg at wEmt by tmi.ft' t& :Rostov on the Dm1 :River, a beautiful city Mtnsk and trr~n continued our journey to Mose.ow. We spent ftu ted! at tire head o'f' the Sea <Yf .Az<JV · F'rom there we pr· _ 1@>1 days at th1s ancient capitar of Russia. There we met the s a ·ill. · . . 0 BQJ.sll:evi.k leaders, practically all o:f them except Lenin, wh(i)se. ceede<f sotrtheasterfy tO' e trans-Ca~castIS drmict Leaving preearlous phyl!lical condition made it impossil)Ie for him to see. tlle· tram at Vla:dikavka:z, we crossed by mrto the range of vfsltors. We held' nlIIlieraus con!eren.ces with the political m'O'lTlltain~ sepa:rRting- Asfa :from Europe. . leaders and the important omctals of the s~vi.et Govermneo.t. 'Fhe C'ancasus .Mountains are famed foD them beauty. and We s})6ke witb them frankly ann freely about conditions in grs:ndeur. TO' the ancient world hero~8) god's_,, and demigods Russia and asked' fbr data showfng. the industrial,. economic,. inhabited' tb~m, and they were. the silent ~itnesses. of san.-. s~ial, religious, and poUtica1 conditions of. the people. We gnmary. confl1ctsr between savage .. a~d contending armies many vf3-f.tetl churches ru1d mingled with the worshipers. We vis- hundreds· of Y.ears· before the Chrrstian era. ited the shops and factories and' plants an.d ~onversed with Emerging, from the mountains. we soon en.te.l!'ed the city of tile- workmen and sought to learn their views and to obtain Ti:ffig,. often called the "Par.rs of the trans-Caueasus~" We the' faets a:s to wages paid and the conditions~ industrial~ visfted Armenia, the llttle State whieh1 has been absorbed by thes&eial, and eeonomic, by which they· were surrounded.. To- the Bolshevik Government. We- went to Ale:x;am.drapol, andl then:· lea<le'l"S, a.<:r well as to the peopl'e,, rn pnbl'lc and in prfvate and saw tb.<rnsands of orphans who were ~eing eared foc by the in interviews given to the :Bolshevtk papers. we stated that 01Il' charity ot the American people. Their :fathers- :mdi mothers had object wae to learn tfie politfcal, ·fndu'Sbiat, economilc,. religious, been victims of the war and the cruelii(;ls ot T'ur.kim um.tee.and and social condf.ti()flS e'Xisting throirgl'rout Russia. It was fanatical Mosfems. We approached the boundary separating

Turkey from Armenia, and looked toward the south where could be seen the shining heights of Mount Ararat. Traveling eastward we reached Baku, the center of the famous oil fields, a most interesting city, which looks proudly out upon the Caspinn Sea.

The trans-Caucasus district is full of interest. Here. are the descendents of peoples whose origin is lost in the shadows of the past. Here are the remnants of the Armenian race, whose origin can be traced hundreds of years before Athens reached the zenith of Iler glory. Here are to be found the Georgians, a het·oic and proud people, who ·trace their lineage back to a period before civilized man appeared in Europe. Tartars and Turks, and Kurds and Persians, and peoples of many tribes and races inhabit this ancient and mysterious land, over which for centuries passed the invading and retreating forces, which had their origin in the deserts and mountains of Asia. The changing scenery, the physical beauty of the country, the polyglot population, the variety of life and customs and habitsall these are inviting subjects upon · which one might dwell if time permitted.

After examining the Baku oil fields and mingling with the Tartar and Turanian peoples who so greatly preponderate in Azerbaijan, we continued our journey along the borders of the Caspian Sea· for hundreds of miles. Leaving this beautiful sea we continued by train northwesterly to Rostov on the Don. From there we went to the Donetz coal basin, where we visited coal mines, conferred with miners and peasants, and studied industrial conditions. We spent some time at Harkov, a city of importance and the Ilolshevik capital of the Ukraine; then proceeded westerly to the renowned city of Kiev. This was the former capital of the Ukraine, the richest agricultural section of Russia. If time permitted much could be said concerning this vast territory with its rich, black soil, its hundreds of villages and towns, and its millions of people.

From there we proceeded northwesterly to Moscow where we remained for some time. From Moscow I proceeded to Petrogracl, then by boat, sailing out upon the Baltic Sea, I continued my journey to Germany.

Our party separated at various points in Russia in the endeavor to cover as much territory as possible and come into contact with as many people as possible. I remained in Russia some days longer than Senator LADD and Congressman FREAR. Our travel through Russia and into Siberia consumed more than eight weeks, and covered the most important parts of European Russia. An examination of the map will show that we traveled approximately 8,000 miles and visited the most populous and, as stated, the most important parts of Russia. We spent weeks among the peasants, visiting their homes an<f their villages, and .seeing with our own eyes their condition and learning from their lips their views and opinions upon the various matters which we were investigating. We saw their poverty and squalor and learned of the hardships which they had encountered and the tragedies through which they 11ad passed. I visited theii: fields, examined their crops, handled their primitive agricultural implements, and learned of the obstncles which they have to encounter and the problems whlch confront them. They told me of the wrongs which they had endured; of the burdensome taxes and illegal exactions to which they had been subjected ; the horrors of the famine through which they had passed; and the hopes and the fears which they had for the future. .

I saw little patches of land which were being cultivated by men, women,_ and children, who had no horses or suitable agricultural implements, and would do with their hands and rude implements what should have been done with modern machinery, tractors, and horses. I visited men in the factories and mills nnd mines, and went into the· homes of workmen, conversed with their wives and children and learned something of their sorrows and problems. I talked with the droshky men upon the streets anu with men and women who were repairing railroad tracks-and may I add that women were doing most of such work. I visited residences and apartment houses in cities ancl towns and learned how the people lived, and obtained information as to their wages, employment, habits, and social conditions. I visited shops and talked with the proprietors and those who were purchasing commodities. I went into the Government stores and factories and institutions nnd met hundreds, if not thousands, of employees of the Government who worked therein. I visited railroad shops and stations, and various Government institutions, including post offices, telegraph, and telephone stations. I mingled with students ih the universities and schools and talked with them and learned their views concerning Russia and Bolshevism and upon questions affecting Russia and the world. I met professors and doctors and lawyers and publicists and teachers

and men and women of culture and education whose lives, since the war, had been an unending series of sorrows and unspeakable tragedies.

I met Tichon, head of the Greek Orthodox Church, and lead· ing prelates who were supporting him. I talked to Krasnitczky, who was the principal figure in the Living Church, and conferred with priests who were giving sµpport to the new church movement. Throughout Russia I met priests of high and low degree and learned of their views and of the issues which confronted the church. I visited priests who · were imprisoned, anu many who had escaped death and had been. freed from dungeons and the hands of the cheka.

In the Moslem region through which we passed, I met. thousands of Mohammedans; I visited them in their mosques, at their fairs and market places and talked with their religious teachers, learned their attitude toward the Bolshevik Government and the economic and political problems which they were called upon to encounter.

I visited .military stations, conversed with officers and soldiers, talked with officers who served under the Czar and were now occupying positions in the red army. I saw mili· tary maneuvers, both of infantry and cavalry; I met Bujenny, perhaps the most famous cavalry leader of Europe, and witnessed the movement cf some who had followed him in his swift and victorious attacks. I visited leaders of the Bolshevik Government and discussed with them in the frankest possible manner the history of Bolshevism, its mistakes, its crimes, its inefficiency, and the economic confusion and industrial chaos which was to be found in Russia. I criticized their confiscation of property, their oppressive measures, their denial of the right of free speech, and of the press, and what I believed to be reactionary economic and political policies which they pursued. I attended banquets given by the Bolshevik leaders in various parts of Russia and spoke frankly and plainly to them pointing out what I conceived to be the weaknesses and imperfections in their system of government and the evil consequences which inevitably must result. I listened to eloquent speeches from able and cultured Bolsheviks and was convinced of the sincerity and earnestness of many and their desire to bring about better conditions than had prevailed · under the Czar and to promote peace and happiness among the Russian people.

Mr. President, I think it can be truthfully stated that · no party visiting Russia since· the Bolsheviks came into power had as favorable opportunities to see Russia and learn of the conditions of the Russian people as did the party of which I was a member. We had able American interpreters who were acquainted with Russia and the Russian people, and we could thus obtain trustworthy interpretations of our interviews with those whom we met, but who did not speak our language. Our extensive travels brought us into contact not only with the cities and industrial and manufacturing sections of Russia but indeed with all parts of the country. \Ve saw perhaps millions of Russians and conversed with thousands. We traveled both day and night and dill not spare our strength, and indeed jeopardized our health by the. constant, unremitting, and strenuous efforts which were put forth. With carts and primitive means we went into the rural districts, seeking to learn the minds and psychology of that part of Russia's people, the peasants, who constitute perhaps 85 per cent of .Russia's population and whose power will ultimately determine Russia's fate.

Much might be said concerning the Soviet leaders and their qualifications and our interviews ·with them. Chicheriu, Krassin, Kaliniu, Trotski, Tomsky, Schmidt, Radek, Rykov, these and many others with whom we spoke are most interesting types and possess ability anc.l qualities which challenge the attention of all who come in contact with them.

My interview with Kerensky, who is . now in Berlin, where he edits a paper devotecl to the interests of Russia, was not without interest and profit. I was impressed with his ability and his intellectual strength. He believes in Russia and exhibits no doubt as to her progress and ultimate emancipation from Bolshevik rule. However, he is opposed to any interference by other nations in the internal affairs of Russia. He stated that the Russian people must and would solve their own problems and that the evolutionary forces operating in Russia would push back Bolshevism until it would be lost in the great tide of progress which would sweep over the land.

If Kerensky had· been less a Menshevist and had possessed more of audacity and perhaps a little more of cruelty at the critical juncture, his government would have been saved, and the Bolsheviks would have failed in the successful coup which they executed. In Berlin I met many l\lenshevists and 'Social Revolutionists and Russian intellectuals and bourgeoisie who had been driven py the Bolshev~ks from Russia and who were

1924 CONGRESSIONAL RECORD-SENA!fE 7021! awaiting, some with patience, many .with .impatience, the day when they might return to their beloved Russia.

While in Russia I also met many who had been members of the Menshevik, Social Revolutionary, and Social Democratic Parties. l\Iost of them had been silenced and lived in fear, content for the moment at least, to be left alone and to be permitted to obtain food for themselves and families and clothes -to hide their nalredn~ss. I conversed with some who were in prisons; and also the1·e met anarchists wbo had been convicted, or who were awaiting trial. ·

llr. President, I have mentioned these .matters to show the opportunities presented to learn the truth about Russia and to ascertain the facts as to conditions there existing. I want to repeat that the members of our party ha!l the fullest liMrty to study the situation in Russia. The Bolshevik leaders were courteous and considerate. They gave full opportunity to see Russia and learn of the weaknesses, imperfections, mistakes, and evils of Bolshevism. Undoubtedly they would have been gratified if each member of our party had approved of the Soviet Government and its policies, but they believed that we had gone there to learn the facts anc.l that we intended to discover them with our own eyes and see them in our own way. Foolish statements were wired by irresponsible newspaper reporters to the effect that the Bolsheviks were "staging," or "sf'ttlng up," situations to Q.eceive members of our party, or were making efforts to conceal shocking conditions or matters which would be offensive and distateful to us.

Nothing o! this character occurred. We saw Russia as she is. The picture has ma.n,y ugly and hideous features. There were dark shadows, and there were rays of sunshine. The picture ts so huge, Russia 1s so vast, the forces operating are so numerous, and their courses .are .so sinuous and labyrinthine that one is bewildered. One can learn much in Russia, vast and mysterious as she is, with the opportunities which I enjoyed, but to know Russia, to be a true interpreter of the Russian people, one must spend not months but perhaps years in that country.

I went to n.ussta wlth a feeling of .Profound sympathy, indeed with a deep a:tfectlon, for the Russian people. I left Russia with still greater sympathy for 1the people .and with undiminished. affection tor the .mlllions of struggling people whose pathway, for many years to come, w1ll be strewn with thorns and upon whiCh will be left the impress of their bloody feet, recording the march of .Russia toward the heights where there is sunlight and where peace abounds.

l\Ir. President, sin<:e my return from nussia I have 1beeu .requested by Senators and a number <>f per.sons to address .the Senate upon the Russian questi.on. The penden.cy .of the reso-1 ution declaring in .favor of· recognizing .the Soviet Go.vennment, and the .fact that the Senator from Idaho [Mr. BoBAH] has spoken ln favor of the resolution, a.s well as the fuct that bearings will soon be lu\.d before the Committee on Foreign Relations, together with the requesU; to wbioch l have just referred, induce me to take the &or and to p11esent at some length my views concer.ning the Russian situation and some of the facts which I learned upon the -occasi.oa of .my ;v-Jsit to that country. In the views I ,e:x;press I speak enly for myself, not for other .members .o.f the party.

·For more than a thousand years what is now known as RusBla has been a land of fable and myster:y, of sorrows and tragedies. For hundreds of years, when under M-ongol rule, it was cut off from Western Europe and, indeed, from the world. It has been the theater of titanic con.tlicts be.tween diffevent races. Asiatic hordes-Mongolians, Tartars, and Turks--...have swept through lts forests and over lts .steppes and deserts and plains, and for many generations exercised control from the Baltic Sea to the Paclfic Ocean and from the Arctic Ocean to Peking and tbe Hima.la,yas, and tbe nations of westem and 8'>uthern Europe a.s they emerged fro;m me<lievalism felt the intluence ot this fl.lbled land and its extraordinary people.

From the days of Peter the Great to the World War Russia made nations tremble and created fear and anxiety aa:nong tbe peoples of two continents; and, whether from unfounded ,fear or from a true prognosis of the revolution and its consequences, there are Still many nations that regard it under Bolshevik rule as a sinister and malignant force in the world.

A brilliant writer, Mr. Henry C. Norman, former member of the British Parliament, asks tlle question, " What is Russial" and in .Part replies :

Siberia Js Buseia-5,000,000 square miles 1n which whole -coun-trles are a qnlverlnc <!arpet of wlldftowers in spring, a rollin~ &rain field in autunm, u .iceboun'1 waste in winter, istored full of every mner&l, crossed by the longest nil~ ht rthe world, -and largely Inhabited .t»y a pcwulation ef convicts and exiles. • .. • It 'WOuld be easier to •17. •• What 'ls •crl RufJsia?" In world afl'aire whft'e'Ve!l' you tun 74IU

-888 &uasla, wbene:reT }'OU listen yo.u Ji~ar bier:; ·sbe .JDo-vm 1a eveQ path;

she 1B minhlg in every cla.lm ; the " creepillg murmur " of the world :is her footfall-the poring " dark " is her veil. To .tb~ challeng~ of the nations as they peer from their border.a, comes the same .reply-" Wllo goes there? " " Russia."

The territorial extent of Russia ls· so vast as to be bewildering. Without the 1Caucas11s uistrlct European Russia contains nearly 2,200,000 square miles. Before Turkestan, Bukhara, and Khiva passed under its control Russia's area was more than 8,000,000 square miles. When lt is remembered that the whole of • Europe, excluding European 'Russia, contains but 1,724,300, and that Russia's e.rea approximates 8,500,000 square miles, tbe Immensity of Russia becomes apparent '8.nd compels the admission that she is and wm continue to be a mighty force and power in the world. An examination of a map of Asia and 'Europe wm surprise even careful geographers, because it wlll so strongly emphasize the bigness and vastness of this Bolshevik State. F1·om the Ural Mountains, which divide European from Asiatic Russia, to the Pacific -Ocean, which washes the iJRSt~rn coast of Russia's possessions, ts a distance of nearly 4:,000 ·miles, and fr.om t'he Arctic Ocean to the boundary separating the Chinese Empire from 'Russian 'territory it is nearly 2,000 miles. Great rivers rising in China flow northerly and find outlets more than 3,-000 miles from their sou.ree. Before. the war these rivers bore upon their bosoms great merchant fleets carrying to European nations not only the products of Asiatic Russia but also important commodities produced in Ollina. -

Russia is not ,only -0f the West but also of the East. While preeminently a ·SJ&'V state, P!lrtaking in partieular of the spirit and culture of Europe, 8he is of "the East and ls caught v.-:~~n 1;~ subtle and mysteri-0us Influence ·of the Odent.

Adventuresome sons a1Russia1mt a few centuries ago-l581-. passed beyond the Urals. The Stroganofs, a powerful Rus· s:ian family, sought to penetrate that unknown land. Vasall, the Boatman of the Volga, began the conquest of western Siberia. He seized the city of Siblr, Which constitutec'I ·the capital l()f a Taxtar 'C.-hief, and brought extensive territory under the domain •of the Russian Crown. Others followed the

~:~a~:gr!~!,na!~d~ii!i~:t!~n~~ I:~ :;;e~~ii~e ;~;: ! ·of which find their rway ln'to the Paeiftc -Ocean, eonstttutM the

1 ieastern .boundary of tbe Russian Empire. ·Tile outposts ()f the Chinese Empl:re were chaUen~d by a new ·power. A new force · was at their door and the ·Orient was threatened by a new ·master. .

No further A!Siatl~ 'COnquests were made until the t1me of Alexander I. He brought tribes and peoples under bis ®- ' minion, extended his power to the trans-Caucasian States, i&ll-d then turned hie eyes oo the eaf!t, wbere he 'Sought 'further conquest. In 1.847 Gener.al Muralvfef . became governoc gen-era!! of eastern 1Siberia. He pushed omve.rd, ce.n-ying the flag of Russia until the Pacific was :reached, and the ·outermost bounds of Siberia brought uuder the ·dominion al the Czar of ·all tlle Ru-ssias. And to-day Slber.la, conta1ning nearly 51000jOOO aqua.re miles, 'lies· 11ke a crouehiug ilion OTer torn and distracted China. The trans-Oa.ucasian states have been added tio Russf.a•-s imperial domain.. Turkestan 1bas !been 1

annexed ; Bukhara .and Kbiva acknowledge the isupremacy -0f Russla ; Persia, Ilke ripe fruit rupon the tltee, sooner ·Or 'later· will- be gathered by this expRnding natioo; Afg'hanistan le in the pathway ot Russia's ·development. Turkey, Mesopetaml~ are they not but passing figures, yielding to P.an Slavism, whleh m8.DY believe to •be the ·coming pewer not ·only in Europe but in the Far East? Notwithfltandimg the claimed ;paci.flc cltaracte? (by some} of the idealo.gy of communism. the Bolehevll:: Government ls a militant f-oree, puehing ~erwa.'l'd 81Dd ranward the flag of Russia, whether it be l'-ed, as the f!ymbol af. vevolutJ.en and comroest, or whether the IJUllligbt of peace and f.ree-dom transforms its color into goldem. sunlight. .

lapan's recent catastrophe, while it excited profound sympathy among the Rnss'lans, .wa-s •by 'SOme Tegard.ed as 1:be removal of an ;ebsta.cle to Russia's expanding power in .Am and 4.n ithe Padfic.

The tanatlcal and doctrinaire -commu11ists, when they obtained control of Russia, believed that the proletarian move· ment weuld enct-rcle the earth. They envisaged capltaUstlc nations ln ruin~ thTough the revoh:ttionary .outbreaks of proletarian f~rces, and the establishment of ·proletarian dictatershlps in all lands, integrating and iunlting With the Bolshevik GG:yiernment ot :Russia. They sought to 'arouse the "class iconsclousneea " •and incite hate against the 1bourgeoieie ; they exitensively p.ro,pa.gandiBed in many States and ia:pended libeJ?aily Qt the f1lnt1s which itbey had :seised to o"Pertllr.ow the ~ r~blica:n iQovernment :ef Ger•i-aJq, the new g<Wemment in Hup.ey., .1W.IJ tae OOl'.lllbitnted .a:utboricy :1ln ·otb:er

•

70'22· CONGRESSIONAL RECORD-SENATE APRIL 24

States. Their caJl for a world revolution was not answered a~ they had expected; and as the working classes in Europe '

•and in other countries rejected Bolshevism they reluctantly came to the conclusion that their paramount immediate task was to tighten their grip npon Russia and the Russian people and consolidate the gains which they had made. Nevertheless, they continued their propaganda wherever possible and unintermittingly proclaimed their purpose to destroy the capitalistic governments of the world. To many countries they sent their emissaries and expended large sums to spread communist principles, foment industrial strife, paralyze economic development, oT"erthrow governments, · and promote world communism. As the triumph of communism in the world appeared more remote there was developed in Russia, even among Bolshevists, a "nationalistic spirit," a spirit which for centuries has been in the Rassian heart, which even Bolshevism could not eradicate, and to which it not only has succumbed, but added strength. Some of the leaders of the Bolshevik Government perceived that the gains of the Bolsheviks in Russia would be lost and the government overthrown unless concessions to capitalism and the normal processes of life were made, and unless the government developed sufficient strength to meet internal evolutiona1·y forces and impress external powers with the vitality and vigor of its organization and system.

The economic chaos which existed in Russia, they had the perspicacity to see, would end in revolutionary movements, not only by the peasants but by the workingmen and the submerged bourgeoisie. Therefore, qiany of them, with zeal but not with intelligence, addressed themselves to the economic nnd· industrial revival of the State and to its preservation as a political entity. They concluded that to save Bolshevism from destruction involved the saving of Russia. Perhaps they did not know this meant a repercussion of capitalism and nationalism, and that if Russia was saved, saved economically and morally Bolshevism would in the end be destroyed. While there ~as a flood of pamphlets published by the Bolshevik rulers in which the theories of Marxian communism were explained and elaborated and glorified, and while conferences and conventions were frequently hel<l at which Bolshevik orators proclaimed their abhorrence of nationalism and of any policies calculated to preserve states as such and races and peoples from an international gregarious mass, they nevertheless gave beed to some rational plans suggested by a few men who foresaw ruin to Russia and to .the Bolshevik regime if the fantastic views of the Marxian internationalists were ad~ hered to.

And so, much of the enthusiasm which had been devoted to the exposition of the communistic creed and to the bringing about of a world revolution was transferred to the task of strengthening locally the Bolshevik r~gime and developing the languishing and, in most cases, the destroyed industries of Russia, although in so doing it meant the awakening of the old and the ine:xtinguishable spirit of Russian nationalism and Pan-Slavism. Representations were made that the capitalistic nations of the world were arrayed against Russia and only waited the favorable moment to devour it, and that it was imperative that the Russian people should unite, under the leadership of the Bol-

• sheviks to strengthen and rehabilitate it industrially and economically, and so enable it to protect the Russian people and save the country from the wicked designs of imperialistic and capitalistic nations.

The paradox was presented of a governing group which denounced nationalism and patriotism and love of country and sought by world revolution to destroy all nations and establish throughout the world a class government, developing a nation· nlistic spirit among those whom it governed.

The Hussian people, long before the days of Peter the Great, sought to build a powerful state, to extend its boundaries, and to be a dominating force in the world. With the expulsion of the Mongolian rulers the succeeding Czars added territory to their possessions, extended their authority over Tartar tribes and divers people, and inculcated in the hearts of the people an imperinlistic spirit which has always remained with the RusRinn people, whether peasant, or priest, or intelligentsia. l\lensheviks and socil:1l revolutionists, as well as Bolsheviks and those professing devotion to an internationalist creed, have great ~ride in the territorial gains of Russia and the expanding power of the Russian State.

The present course of the Bolshevik Government is based upon the fqrmula that a great and powerful Russia ~s desired, primarily to advance the cause of world communism, but also to preserve communistic gains in Russia. The Bolshevik r~gime is proud of its power, elated over Us conquests, and is planning for further territorial gains and is asserting strong nationalistic

policies. There can be no crltlcism of a policy which seeks to develop among the people a love of country and that fine spirit of patriotism which is always found among those who love liberty and justice and have courage to defend the same, and if the communists were guided by that spirit many of their problems would soon be solved.

I encountered some internationalists in Russia of whom it could be truthfully said they were not patriotic Russians, nor di.d they possess that proper nationalistic spirit which finds expression in devotion to country and loyal service to the state. But speaking generally, the Russian people are passionately devoted to their country ; their sorrows and tragedies have only intensified their love for their motherland, which to them is the promised land.

THE COlll\IUNIST PARTY AND THE BOLSHEVIK GOVERNMENT

When the Mcnshevik government of Kerensky was overthrown, Lenin had a political organization, compact and determined, which seized all authority and set up a communist government. There was no pretense that the will of the people should be regarded or that the wishes of the majority should prevail. Repeatedly, since the seizure of authority, the Bolshevik leaders have declared that the government was, and would continue to be, a dictatorship and that it would be directed by members of the Communist Party.

They scoffed at the idea of a dem·ocratic form of government, or of submitting to a vote of the people any question relatiye to the form of government under which the people wel"(> to live. Euphemistically, it was stated that it was a "soldiers and workman's government," and more recently it is declared to be a government of the" peasants and workmen.'' In fact, it was, and is, a government of the Communist Party.' At no time have the wishes of the people been consulted. It is not intended now or in the future that their voice shall be heard in the affairs of the government under which they live.

The existence of any other political party is not possible. Indeed, none would be permitted. I asked Chicherin, Kamenev, and other Bolshevik leaders whether a democratic party or any other political party would be permuted, and in every instance the reply was in the negative. Meetings or gatherings for the discussion of political or gov:ernmental or economic questions in opposition to the policies or program of the Bolshevik Government are regarded as counter-revolutionary and subject the participants to immediate arrest and imprisonment, and perhaps execution. Thousands of the Menshevik Party and the Social Revolutionary Party have been driven from Russia, many banished to Turkestan or to the Arctic regions, large numbers are in prjson, and many have been executed.

Members of these parties suffered cruel persecutions at the hands of the Czar's govw-nment. But most of them sought only legitimate and proper reforms and greater liberty for the people. The l\Iensheviks were followers of Karl Marx, but interpreted Marxian philosophy differently from the Bolsheviks. Some members of the Menshevik and Social Revolutionary Parties, when the Bolsheviks triumphed, and particularly when persecution came, joined the Bolshevik Party; still others, fearing persecution, concealed or denied their faith and have scrupulously abstained from any political activity, content to live and to be let alone, and to have opportunity to procure food and clothes for their families.

When in Tiflis a conference was being held with considerable ostentation and no little journalistic display in the -Bolshevik press, of a number of so-called Mensheviks and Social Revolutionists-some of whom it was reported had just been released from prison-for the purpose of " disbanding " any remnants of these organizations. The gathering had the appearance of having been "staged," and a number of intellectuals who were opposed to Bolshevism and who had been former liberals and Mensheviks stated to me that the gathering had been arranged by and under the direction of the Bolshevik Government. There was a formal resolution of dissolution of the parties.

There is in Russia no freedom of speech or freedom of press; nor can there be, under the present regime, any public Ol' free discussion of political or governmental questions. Several of the Bolshevik leaders were asked whether the publication of a newspaper would be permitted that did not support, either acUrnly or negatively, the Bolshevik regime. Their answer in every instance was "no." One leader justified the suppression of free speech and free press nnd the exercise of the despotic power wielded by the Bolshevik Government by saying that the Bolshevists regarded the situation as " still one of war." That this fiction will be adhered to for an indefinite period is manifest. but the flower of liberty is growing and the people will ultimately compel ref9rms. When asked if a constitu-

1924 CONGRESSIONAL .-RECORD-SEN ATE

tional convention or a national assembly was to be called to draft a constitution or agree upon a form of government, the Bolshevik leaders unanimously declared that there was no such intention.

A strict censorship extends to all letters and written communications as well as to telegraph and telephone messages. All letters written or received by me while in Russia passed through the hands of the official censors. No business activities can be carried on by private persons, evert though they have concessions from the Government, or special contracts or privileges (which involve the use of the mails or the telephones or telegraph), without the censors knowing of the same. This know ledge of the condition and business of all who are engaged in private enterprises is imparted to those officials who are conducting governmental concerns of the same character, and this places the private business man at a serious disadvantage.

Any act upon the part of any person or group of persons which is interpreted by the Bolshevik leaders or the local Soviets as inimical to the Communist Party or the Bolshevik Government, is regarded as counter-revolutionary and results in imprisonment and often death. The writing of a letter in Baku to a person who had made inquiry concerning property

. which had been confiscated py the Bolshevik Government was considered a counter-revolutionary act and led to a death sentence by the Cheka. Intercession. by a number of persons se

' cured a reprieve. A hopeful sign is found in the fact that there is a steady in

crease in the number of newspapers published in Russia. The number of daily newspapers is 900, and there are 35 weekly and 60 monthly publications. The aggregate circulation of all papers is 2,000,000 copies. The Isvestia's daily circulation is 200,000. This paper is the organ of the Bolshevik Government. None of these publications oppose the Government. All are subject to its control. All printing plants and equipment were nationalized and are operated and controlled by the Government. Not only the newspapers and magazines, but also all books· that a.re published, are printed in the Government establishments. It should be added, however, that from some of these printing establishments excellent literature is now emanating. Whitman, Jack London, 0. Henry, and Upton Sinclair are ·read more extensively than any other American authors, and some of their works have been translated into Russian and issued from the GoYernment printing houses.

No private printing presses of any kind are or would be permitted, so that nothing can be printed that is not approved by the Government . .' To print or circulate any paper, pamphlet, or book not authorized by the Government is a counter-revolutionary act the punishment for which may be death.

In all cities and towns numerous bookstalls · and stores are found. In l\loscow there are scores of small stands and shops where pamphlets and magazines are so.Id. These publications relate almost exclusively to the revolution, giving the Bolshevik view, or are devoted to the exposition of Marxian philosophy and the · achiev:ements, aims, and purposes of the Bolshevik regime. In a few book stores were found a variety of books, published before the war, a few in English, many in French, some in German, and others in Russian.

Foreign newspapers are not admitted into Russia, although a short time before my departure it was learneu that a fe'Y German newspapers were admitted. However, no impediments are . offered to the introduction into Russia of revolutionary .papers publi.shed in Germany or other countries. Various Bolshevik departments, however, receiYe leading newspapers published in Europe, the United States, and other countrie·s.

The membership of the Communist Party varies. The largest membership was approximately 700,000 ; it is now about 400,000. Many have been expelled fl'om the party, and communist officials stated another " purging " of the party would soon take place, as many members had violated party discipline or hau been accepting bribes or had been guilty of graft and corruption in connecti~n with their official duties or had found the obligations of the party too onerous to be performed. Members of the Communist Party are subjected to iron discipline. They are, in every sense of the word, soldiers subject to orders which may not be disregarded. Frequently communists were met who had been ordered to remote parts of Russia or had been brought from distant points for service in Moscow or in other parts of the country. Most of the commissars of the local Soviets were nonresidents of the provinces or districts which they · served, but bad been sent for official work, theoretically by the government but actually by the Communist Party.

The key positions in the government are held by communists, and practically the heads of aH trusts and industrial enterprises are members of that party. In visiting an importaut coal

LXV--443

mine, where skilled engineers and operators were required, a youthful communist, lacking in technical knowledge or expe· rience, was at the head. No matter how important the industry, an active communist will have charge of its operations, though he may lack technical skill or the requisite executive ability. The government is compelled to rely upon noncommunists to furnish the technical knowledge and administrative ability in substantially all activities, whether political or industrial.

The communist leaders have been careful and discriminating in selecting members for admission into the party. They have • preferred a limited membership, believing that the organization could thus act more effectively in the execution of the common purpose and in retaining undisputed political power.

There are in Russia, however, perhaps tens of thousands of persons who believe in communism and declare that they are communists. Many have sought and are seeking admission into the Communist Party organization, but their admission ls deferred pending a probationary period, in which the applicants may conclusively demonstrate their devotion to the communist creed, their loyalty to the Bolshevist Government, and their fitness · for service in the party. A further reason for restrict· ing admission is because, as stated, the communist leaders desire a small, thoroughly disciplined, fighting, militant organization.

That communism ls growing in· Russia is undoubtedly true. The disintegration of the other political parties added to the strength of the communists. Moreover, as was stated frequently by workmen and others, the communists have privileges denied to others, and those employed in the Government service who are in the party or who are communists and seek admission into the party are greatly favored over the so-called "nonpartisans." When forces are reduceu, as they have been in many, departments, the bourgeoise and noncommunists are the first dis· charged. Members of the party are always sure of positions, · and the active communists outside the party feel assured that their interests will be better guarded and protected than if they did not evince interest in communism and faith in its creed. It is not infrequent to find persons of the communist faith replacing former employees of the Government, or those who were known to be unsympathetic toward the philosophy of Marx.

An active campaign is being carried on to increase the membership of the Young Communist Party and it was frequently told me that the number exceeded 1,000,000. Many inducements are offered to young men to become members of this organlza:. tion. Many beautiful and commodious buildings which had been confiscated by the Bolsheviks have been converted Into clubhouses for workingmen and young communists. They become the centers of amusenren.ts and recreational activities and movements for the teaching and glorification of Marxian philosophy and the leaders of the Bolshevik Party. Many young men, first out of curiosity, visit these clubs, and later, for various reasons, become members. Gratuities and rewards of various kinds are often given to stimulate membership. And the sons of workers in the factories and shops and railroads, as well as the rpembers of these clubs, are favored in making selections for entrance into the higher schools and educational institutions.

Political and communist teacbers are active in these organizations, the result being that the children in the larger villages and towns and cities live constantly in contact with communist teachings and are brought within the influence of communist organizations. In the smaller villages and in the homes of the peasants the communistic influence is not so pervasive, although in the village schools, as well as in all schools, its teaching is compulsory. And in villages where communists are found they <;onstitute the political or governmental officials and administrative officers. In this situation it is not surprising that many Bolsheviks express supreme faith in the conversion of the children of this generation to the creed of communism. The conferences of the Communist Party are devoted principally and almost entirely to a discussion of what the policies of the Bolshevik Government shall be, and how the will of the Communist Party as expressed shall be enforced through the Bolshevik Government in Russia and elsewhere. Likewise the international aspect of communism is considered, and how and in what manner the capitalistic governments of the world may come under the control of an international Communist Party.

A committee with supreme authority is selected by the Com· munist Party. That committee at present consists of Trotskl Dzerzhinsky, B~harin, Stalin, Rykov, Kamenev, Zino'viev, and Tomsky, and alternates are chosen to act with the executive committee and to take the places of any who may. be. disqualified or absent. Among this number are Kalanin and

I

7024 CONGRESSIONAL RECORD-SENATE APRIL 24 ~~~~~----------~~~~~~~~~~~-.~~~~~~~~~~------~~~~~~~--- ! Radek. I should stat.e, however, that several officials in the Soviet Government told me that this committee consisted ot but seven members. Lenin, who died but a few hours ago, was a member of the committee.

An examination of a list of the officials in the Bolshevik Government will show that they are, in the main, the executive committee of the Communist Party. Trotski ls the Commissar of Military and Naval Affairs; Dzerzhinsky is Commissar of Transportation and Acting Commissar of the Interior; Rykov is chairman of the supreme economic council and also acting premier and acting president of the council; Lenin was president of the council of commissars ; Kamane:ff is the acting president of the council and acting premier, and also head of the Moscow soviet; Kalinin is president of the central executive committee of the soviets and usually called the president of the Bolshevik Govemment. It is the Communist Party which selects individuals f.or the various positions in the Bolshevik Government and for the various soviets or local organizations in all parts of Russia. Tbe foreign or domestic policies of the Government are determined not by officials of the Govemment as such, but by the Communist Party, which is the source of authority and power and from which emanate the final orders to govern the conduct of Bolshevik officials and the· course of the Bolshevik Government. Krassin us Commissar of Foreign Trade in the federal Government and Chieberin . as Commissar of Foreign Affairs, and Sol-Olnikov as Commissar of Finance for the Gove1:nment; indeed, all officials, high nnd low, are amenable to the Communist Party and must act conformably w its instructions. The communists state that they made and won the revolution, that ~Y set up the present Government, and that they intend to control it and to control Russia and her people and to enforce the political and economic doctrines of Karl Marx.

There are no scruples Jn the use of force or the mill tary arm of the Government to execute their purposes. They tra.nk:ly state that the people are not competent to govern themselves; that a dictatorship is needed; and that the communist principles can only be made effective in Russia or elsewhere through a coherent, well-organized, and thoroughly disciplined minority who are ready and willing to .flght to maintain their power and to enforce their policles. The so-called autonomous Republics of Ukraine, Georgia. and others are powerless before the central government and execute its orders.

It has been said that the new eonstitution adopted J'nly 6, 1928, has resulted, or will result, in material changes ln the political structure of Russia. A critical examination of the -new constitution will demonstrate that the power of the Communist Party ls not diminished or the rights of the people extended- Under the constitution Russia is still a communist state · govel"lled by the Communist Party. It uses the ma-ebinery provided by the new constitution to execute its will.

It states that-The Russian Socialist Irederal Soviet Republic (R. S. F. S. :R.), the

Ukrainian Soviet Republic (U. S. S. R.), the White Russian Socialist Soviet Republic (W. R. S. l:t R.), and the Transcaucasfan Socialist 1

Federal Soviet Republic (the Socialist Soviet RepubUcs of AzerbalJflJl. 'Georgia, and .Armenia) hereby unite into one Federal State--the On.ion ot Socialist Soviet Republics.

Theoretieally these J)olitical states or Republics are independent, but the constitution gives them no greater power tba.n they have enjoyed in the past An analysis of this new ~nstttution shows but lltt1e authority is possessed by the associating states, Rnd how perfectly the instrument is drawn to perpetuate in power the communist group and their successors who are in political control of Russia. This constitution was not ratified by the ~ople, but it is, nevertheless, superimposed upon them. The important provisions of the constitution were directed toward the creation of a small body of individuals with supreme executive, legislative, and judic1.al power. The so-called " contracting republics " are required to modify their constitutions to conform with the one under consideration.

Executive committees are created by the constitution, and these are then selected by the Communist Party. These committees govern Russia under the Communist Pa.rty. The constitution provides for a supreme court for the " maintenance of revolutionary law," but it is made the creature of the executive committee, which may also " suspend or set aside decrees, regulations, and orders ot its presidium, the soviet congresses, and the central executive committees" of the so-called Republics constituting the union, as well as ot other governing bodies throughout the entire territory of Russia.

One of the darkest pages in the history of the Bolshevik Government relates to ·the extraordinary commission, or what is known through the land as the "Oheka." This was a political organization or ageney which spread terror throughout Russia, arrested, imprisoned, and executed tens and, indeed,

hundreds of thousnnds of persons, and ruthlessly reduced the \ Russian people to a condition of terror and slavery. It had a most perfect system of ~onage and executed the -0rders of the leaders pitilessly, silently, and effectively. Men, women and children disappeared and no one knows whither they hav~ gone; many never returned. Relatives and friends were afraid to make inquiry. They were the victims of the Oheka. No one will ever know the number of victims. The :figures published by the London Times and other newspapers-European and Ameri-can-state that the official figures of the Cheka show executions up to February 22, 1922, to have been 1,766,168. Of these 6,675 were professors and teachers, 8,800 doctors, 355,2ro other intellectuals, 1,243 priests. 54,860 officers, 260,000 .soldiers, 59,000 policemen, 12,950 landowners. 192,360 workmen, and 815,000 peasants.

Numerous inquiries made by me of Bolshevik officials, as to the number of executions, elicited no satisfactory reply. Some stated that it was impossible to determine the num· ber imprisoned, banished, or executed, and that many e;xe. cutions attributed to the Cheka ought rather be eharged to the civil wa.r and the excesses which it developed. They also stated that most of the peasants executed ·met their death in resisting the execution of food levies ordered by the government and in revolts p1·ecipitated by peasants in many .villages against the Soviet Government. Undoubtedly it would be unfair to attribute to this political organization (Cheka) the . execution of all of the numbers within the various classes above referred to.

That hundretls of thousands w~re executed by the Chek:a there can be no doubt. It had an army at its command and it:s spies and agents were in every part of Russia. There were local and provineial Chekas, and they we1·e often under the control of cruel and inhuman monsters. That was notably trn& in Petrograd, where a woman for a time ordered the execution-s, and in Odessa, where, following the occupation of the city by the Red army, more than 20,000 were butchered within two or three days. The trail of the Cheka is a sinuous and a bloody one, and its crimes weigh heavily upon Russia.

The time came when even the Bolslleviks who had ereated this dreadful monster became afraid ot it. Instead of its being a Saturn, devouring its own oft:spring, it threateood to • be a m-0nster seeking to devour it.s own mother. And so its powers in all parts of Russia, except the trans-Oaucasian States, were curbed, and by decree its power to decree death was abolished. However, in Georgia, Armenia, and Azerbaijan the Cheka still :tlom-isbes. Eighty-four men were executed at one time but a !~w weeks bef-Ore our party reached Tifils.

The head of the Trans-Ca'UC8.Sian Soviet Government seemed bored when interrogated as to the activiti-es of the Cbeka. He defended it and its arrests and executions of individuals without trial and in secret. At a banquet given by the soviet organization, at which a oommunist from America and a .Japanese communist-both i-epresentatives of the Third International-were present, our party was introduced to the" Head of the cbeka " of the Georgian st.ate. Of the 84 just referred to who wei·e executed, some were intellectuals and men ot unblemished reputation. They had eritlcized Bolshevism, and others were a few of the hidden and scattered remnants of the Menshevik Party. It· was charged that others of the number had been arrested in the woods and mountains where they had been biding to escape ai-rest and death, and upon discovery they were promptly executed as bandits.

Assurances were given our party, however, that· the purpose wus to restrict the authority of the trans-Caucasian Cheka and limit the power of the organ.izatic.n as it had been limited in other parts of Russia. · 'l'here was great rejoicing throughout Russia when the power of the Cheka was restricted, and it was with profound regret that some .communists and all the Russian people found that ln the new constitution a provision w.as inserted which revived the Cheka, though with diminished authority. Article IX-paragraphs 61 and 62-of the constitution ls as follows:

6L In order to unify the 1."evolutlonary action of the contracting republics in their struggle with the PQlltieal and economic counterrevolution, espionage, and banditism, a Joint state political depart~nt ts established, atta.ched to the Union Council of Peopl~'s Com.missarles; the chairman of this department is a consultative member of the Union Council of People's CommlB£1arles.

62. The Union state political department controls the work of tlle local branches of the State political department through Its representatives in the Councll of People~& Commissaries of the contraeting Repub· lies; these representatives act in accordance with special and legally ratifted regulatlon11.

This constitutional provision did not meet the progressive spirit which was slowly developing throughout Russia and was

1924 CONGRESSIONAL RECORD-SEN ATE

a triumph of the extreme left of the Communist Party and a backward movement toward the shadows and the horrors of the past; it perpetuates the fiction that the Bolshevik Government is still at war, not only with capitalistic nations but with the Russian people, and thus becomes the pretext for despotic and cruel edicts and the subjection of the people to a system of 'espionage and military oppression intolerable to those who have any love of freedom or regard for justice.

Under this constitutional provision Dzerzhinsky, who perfected the Cheka organization and directed its cruel and sanguinary activities, was placed at the head of this so-called " State political department." He has organized this department precisely as the Cheka was organized. There are tens of thousands of bis agents and spies throughout Russia. The organization is known as the" G. P. U." There ls also a branch of this organization, or a minature or parallel one, connected with the transportation system, of which Dzerzhinsky is also the head.

This vast army constitutes the eyes and ears and the silent but powerful hand of the Bolshevik Government. The very walls seem to be its listening ear, and the footfall of approaching night is discovered by its omnipresent forces. It provides nocturnal domiciliary visitors who terrif¥ the innocent as well as the guilty and furnishes inquisitorial agents who without warrant or authority arrest, imprison, and exile.

In all parts of Russia where our party went there were not only soldiers and militia but the silent and compelling forces of the G. P. U. And these three organizations, the army, militia, and the G. P. U., unite to uphold the Bolshevik Government and execute its decrees.

Iri. a village of four or five hundred inhabitants in the Caucasus Mountains, a man of fine appearance and intelligence, in reply to questions by two members of the party, stated that there were only three communists in the village, two of whom bad been sent there; t.hat the people were not communists and were not satisfied with the communist government. . When asked how the three men could govern so large a number of people against their wishes, he replied that they and the Bolshevik Government were "supported by Russian bayonets."

As herein indicated, acts or omissions, which reasonably ~ay not be interpreted as revolutionary, become such in Russia, and . are dealt with by this extraordinary political department, notwithstanding there is a criminal code and courts and executive officers to enforce the orders and decrees of the courts.

This powerful, unrestrained, and terrifying agency is made a law unto itself, accountable to no superior political or governmental body or authority, and is the sole judge of its own conduct. Any act or omission it may declare to be a part of the revolutionary struggle or political or economic counter-revolution. Criticism o:t any law or policy of the government is a revolutionary act against the government. Views or acts which the G. P. U. may think or affect to believe do not coincide with the economic theories or policies of the Bolshevik Government, or the Communist Party, are counter-revolutionary. The most innocent acts became crimes; consti·ued, as they often are, as attempts to overthrow or undermine the Bolshevik r~gime. And in all the States and Provinces local G. P. U. branches are set up and are controlled by a representative of the central organization. These local organizations are often manned by fanatics who regard as enemies of the Government all who are not communists; and so there are still many innocent victims of this despotic organization which belongs to the dark ages. It is an a~acbronism, even in Russia.

Under a law or decree any person may be arrested by the G. P. U. without a warrant, and may, without trial or information as to the character of the offense, be exiled to Turkestan or the Arctic regions or to any other remote part of Russia for three years. Many cases were brought to my attention where individuals had been arrested and held for many months without any charge or hearing.

To many it is incomprehensible how a mere handful of communists retain control over more than 140,000,000 people. First, it must be remembered · that the Russian people are somewhat different from the Anglo-Saxons and have for centuries been under an autocra~ic government. The overwhelming majority were illiterate, and perhaps 85 per cent lived . in villages and paid reverence to the Czar and devotion to the church. They were satisfied with their condition, their village, and local affairs; they were controlled in. a somewhat patriarchal way, but were not much troubled by the affairs of state or the great world beyond their limited horizon. Given sufficient to satisfy their limited wants, the mass of the Russian people were satisfied.

.Obedience to authority was ingrained in them; and so, when political power was seized and exercised by Lenin and a few communist associates, the people, while dazed and bewildered, lacked the initiative, that vigorous militant spirit which was necessary to organize resistance or promote a revolution.

The World War had brought great sorrow and suffering. Knowledge of the horrors of the western front had been brought back to the people, and there was a longing for peace. The boldness and audacity of the Bolsheviks stupified the people, and they dumbly submitted to their rule.

Later, when the armies of Kolchak and Wrangel and Denekin were advancing, the Bolshevik leaders shrewdly appealed to the people, declaring that the plan was to restore the czaristic rule and deprive the peasants of the land. And it is freely said by many in Russia that these military leaders opposing Bolshevism would have• been victorious and overthrown the Bolshevik Government if they had been less · reactionary and had shown greater consideration for the people in the districts where they operated. But in many parts of Russia the peasants actively supported the revolutionary forces of these generals and constituted the bulk of their armies. With the defeat of the Wrangel movement, the Bolsheviks controlled Russia. War had exhausted the resources of the country and the people were in misery and want. It was apparent that production must be had or starvation was inevitable. Even those who hated Bolshevism and suffered from its ruthless exactions and its oppressive policies were constrained to a sullen but pacific course. Tl1e whole population were intent only upon one thing and that was to get enough to save themselves from starvation.

The sufferings of the people from hunger and exposure and lack of clothes during the past five or six years can scarcely be exaggerated. '1;.'here was not sufficient energy or strength left among th.e people to oppose the governing power. The strength of the government, aside from the Communist Party, rested with the wo1·kers in the various factories and plants. It ls true that they were not satisfied witll existing conditions; and revolts often occurred which were suppressed, oftentimes with great cruelty by the Bolshevik Government. But the workers were told that it was their government and that, while conditions were difficult, they would be worse under a return of the monarchy. · Notwithstanding the military triumph of the Bolsheviks, and the lifeless and impotent condition of the· people, conditions became so intolerable that a formidable revolt occurred at Kronstadt among the sailors and later, because of the repres· sive measures pursued by the government against the peasants and the seizure of their limited crops, revolutionary outbreak~ occw·red in various parts of Russia. This situation threatened the oyerthrow of the Government, and undoubtedly would have resulted in its destruction except for the concessions which were promptly made through the dominating personality of Lenin.

He perceived that further attempts to enforce the doctrinaire principles of communism would lead to the overthrow of the Government. Compmnism had failed. The confiscation of all property and the attempt to compel production by the military enslarnment of the people had brought Russia and her people to the very depths of misery and sorrow. The peasants wanted their own land and to be their own masters and to enjoy the benefits of their own toil. Factories were closed, the transportation system collapsed, cities were deserted, farms untilled. The hand of death rested over the land. The conscription of the people and of labor and the military orders and cruel and oppressive decrees could not bring life into the · state or make communism a success.

Lenin, notwithstanding his idealism, was preeminently a practical man, and when he perceived the fallacies of Marxian philosophy when applied in a concrete way and its indaptabillty . in the existing situation, he promptly ordered a retreat, which alone saved the Bolshevik Government.

In November, 1922, he reported to the eighth session of the fourth congress of the International Communists at l\Ioscow the results of the new economic policy which he had forced upon the communist leaders of Russia. It was a remarkable apology for aban"oning the doctrines and policies of the communists and a clever and unanswerable justification for so doing. He referred to the !net that a crisis compelled the changes made, the crisis reaching the breaking point, as he said, "when the broad masses of the peasantry were against us." He referred to the collapse of the finance system under the former policy ; the " quadrillions " of paper money issued : the destruction of commerce ; the ,failure of production and ensuing famine, misery, and want. And he emphasized the "strategic position" now held by the Bolshevik Government.

OONGJtESSION.A.L RECORD-SKL~.A.T.E APRIL 24

It is clear from his ~eecb that he ascribed the ~mpro,ved ·conditions .and the salvation of the Bolshevik Government .to the :policy which permttted trading ,and a movement by the people ln the .directie.n of cai:>itallsm and the namial prooesses tO:f business and the realities and .fnndameut.a.18 -of life.

.The Dols11eviks still say they .a~-e communist.! and many:ar_gue that their Government is communistic. Marx ls .a.till their patron .saint, a.nd his pllilosolilif .is the .textbook .of the sehools, and so .far as the Bolshevik leaders -can .enforce their wlll, .the guide of the people. But .economically State .capitalism. ·enforced in u ruthless manner by a small minority and an ol)edient army an..d n<>t communistic philos"U)h~ p.reva:ils. -Of course, politically, as indicated, the Go.vernment is .a ·dictat-orship by a few men, whether it be called a Soviet Republic .er given any otber name.

With the adoption of the new economic polie~ it was ,as if a ra,y ot light w.ere shot into a .darlr dungeon. The light has increased, and to-day the dungeon has several windows and many shafts ot light .are streaming in to 'Purify the a.Lr and to bring a ·slight measure of happiness to the people.

Two years ago Russia was a madhouse, and the people were dying from .madness and starvation. Since then progress has been made, not because .of 'Bolshevism hut in spite of it; and whatever progress ·has been made has 'been the result of departure from communism and from predetermined Bolshevilt po1icies. The new economic policy w.as Dot aocepted by all commun1sts, and it caused .a schism ln the partyM 'But it saved the Bolshevik r~gime, an4 :tbe capa.clty of that r~gime to modl~y its princlples and .Predetermined policies still saves it .from destruction.

The heavy taxes imposed upon the peasants in 1921 and 1922 brougbt not only complaints but produced inc~pient revolts. Everywhere that I went ,Peasants protested agalnst the exactions made by the Government. They were taxed according to the number of desslatlnes of land they held and the erops t'hey produced and the animals they owned and the chickens they raised and the eggs that were laid, and there were Jabor and cartage taxes and a house tax by the central government. Then there were a ml'lltltude of prpV:incial taxes imposed by the local authorities on -the peasants for various purposes-hospitals, schools, public bureaus, and so forth.

But there are ctever a:nd abre men ·among th·e Bolshevik leaders. They perceived that a continuation of such oppressive levies would pl'O'Voke revolts, if not a t'evoiution, ronong the peasants, which might ove-rthrow the S<YViet r~me. Aeeordingly, they projected a revenue plan whieh 1ttforded some relief to the peasants, though it strn weighed heavily upon them. MOTeover, it bad diseriminating features and bore with crushing force upon all persons who were endeavoring to take advantage of the new economic polley and estab'lis-11 private enterpl'ises and engage 1n pri'V"S.te trade. Indeed, many S'Ueh were destroyed and their new business or industrial enterprises ta'Ked out of existence.

l\1r. OVERMAN. "The 'Senator has stated, as I understood one of his statements. that the Bolshev'iks seek the deetroetion of capltallstie nations. Does that includ.e our 'OWD Nation atso?

Mr. KING. Yes. Mr. OVERMAN. I should like to ask the Senator 1f it be

true that Lenin is dead, who will succeed h1:m1 MI'.. KING. As I came into t'he -Senate Chamber this morn

ing I was advised of the death of Lenin. It has been known tor more than a ye-ar that he was seriously ill and his deat'h was not unexpected. Authentic r~orts were published from time to time concerning the nature of bis ailment, and when I was in Russia I made inquiry of Bolshevik leade~s who confirmed statements that I had read many months .ago as to the serious n~ of his illness. Not onty w.as he stdfering from

·paralysis and other ailments but for a time bis mind was e:ffected.

The Senator asks who will succeed him. In my opinion there is no oommunist competent to fiU bis place. l:t can be said of him that be founded the :Bolshevik Government and ls its out.standing figure. Early in hls ll!.e he became a devoted follower o.f Karl Marx, and was one ot the revolutionary leaderlil who for a number or years before the World War sought to modify1 if not destrpy, the Russian Gov-ernment. He played an important part in weakening the morale of the Russian people ln the closing hours of the Czar'.s r~gime. and led the forces which overthrew the Kerensky ,government and estabUsbecl the despotism -which has controlled Russla Since that period. His dominating personality, his audacity, h1s commanding ability, and his iconoclastic work assure him a primacy among the Bolsheviks which none dare challenge.

Tfie wav-es f>'f the French Re-vo1n:t1on iearried uPOn tbeilr dlest .Mirabeau, Danton, .Robespierre, .Marat, and .other.a wllose names wfil long BUI'!Vive. That :l'e\'l{jfation ,was :illil .iinpO:l'tmrt ep@ch in the histDriV of mankind. 'T.he Russian Revolution b.y historians -Of the fUtU;l'e Will <llDdmlb.tedlF .be regarded -as an event unique, unpat.alleled without precedent as ita it's ipurposee and results, -nnd important m its reactions u__poo •contem:pE>rary conditions, if not upon succeeding generations. And Lenin, .his .character, motives, and work., will produce an increasingly Iai:ge bibliogi:apb.y with -OJ.verse and iirreconcilable 'Views as tlo his ·character and .achievements and ·u:p.on all matters Witth which he was ...ooneerned. Many Russians .stalted to me tha't without Lenin the provisit>Ilal ;gowernment of Kerensky werud haW- s:u-cceeded, a constitutionrul goveel'llDlent would ha-ve been established, Russia would ha~ continued with the Allies in the .great world 1cont.est, 8lld the we>es .aoo trage<ilies which have P.V€rwhelmed th-e Russian people would lw:v,e ibeen ,avertecL But it is of no advantage to speculate upon these 'lllatters. Lenin, by .his genius, .his com:age, h.is .cunning, his ~ofound .knowledge of the psychology of the Russian people, str.uok do:w-11 the Kerensky r~gime, hurled back the rising tide of democracy_, and .seized fhe relns of -auth().rity and -drove his country into the destructive au.d .deadly a;peni.ment of Bolshevism. He and many of his associates, because of their former r-evolutionary activities, had been imprisoned and exiled. .They were familiar with history, with the .slow prqgr--ess whieh huma.nity has made toward the .summit of liberty and ;Justice ; they tignoomd tbe teachings ot history,, and sought by violence to strike .down all governments, .Qestr0Y the social and economic struetures existing throughout the world, and upon the ruins of the f,":'~·~i· temples w.hich .centuries had-erected, e.stablisb a new order, the principles of wllich had been ablf pres~n.te.d, at least .academi· cally, to the world by Kal'l Marx. 'U.nCloubtedly many of tnese communists were sincere an.d believed that their philosophy would free the world of social inequalities and -establish .a new and better s<>eial and political system among mankind. Of course, there were mountebanks .and characterless persons who attached themselves to the 13olsnevtk organization. Vicious and criminal elements 'Ylthout moi:allty or religion, .saw in Bolshevism the overthrow of society and the triumph of licentiousness, and so sought and obtained positions of power where they preyed upon the people and committed brutal :erimes and b1deo1IS excesses. Many1 filled witlt 'hatred of the ·Cultured and better elements of society, as well as all ruling classes, believed that the miss1on of Bolshevism was to subjugate, if not destroy these classes, and to place in power those who had dwelt in ·tl:le shadows.

Lenin determined. .to establls'h communlsm, no matter what the cost m~gh't 'be. He .and bis followers were insensil>le to ttle sorrows and tra,gedies and l:lorrors which their" purposes and activities brought to the Russian people. 'The .opportunity had come to f-ound a communist state, and the communists of Russia were to estab11Sh it and carry :the torch of communism to set the world .on flr.e. They determined upon the destruction of all ,governments and the reorganlzation of society upon new lines. Whatever obstacles stood in the way of their plans were to be Tem.ov.ed. Human ute was unimportant. 'Th-e old order ot tblngi was to be destr.oyed,. root and branch, with a thoroughness and a .ruthlessness that would prevent any possible recrudescence of the spirit whleh lia4 di.rected and controlled tbe movements of the past.

Lenin was not naturally .a crul!l. .or pitiless man. Indeed, he had a kindly nature and possessed generous implllses. He had sympathy for .the oppressed and a desire for soeial order. He had the paradoxical nature found In many great men, a11d those eoil1llcting traits that so ba1He the interpretatwn of their mental pz:oc.esses and J>urposes. He had denounced the Government of .fhe Czar as being eruel .and undemocratic. He an.d other eommuDlsts had bitterly assailed governments, particularly the Russian Government and lls efforts to :Prevent revolution and to neutralize the activities of those who wer.e seeking its overtbrow. And yet Len.in and the Bolsheviks resorted to the most cruel a>ersecutlon to perpetuate themselves in power. They erected as brutal a tyranny as the world ever beheld. Human lite was sacrificed Without remorse and the most hideous crimes were perpetrated, crimes which for cruelty 1lJl.d barbarity have -scarcely ever been equalled and seldom surpassed.

But Lenin perceived tliat the ambiti-0ns of the Bolsbeviks could not ·be realized, that .communism could not be forced upon the world. He ordered retr.eats white still pr<.>elaiming bis devotion to ·communism ; .he explained condiUons to the Russian people by declaring that -<!Ommunistlc policies could not be fully realized in Russ1a until .other nations accepted them. Against the views of many of his associates he illtr.o-

1924 CONGRESSIONAL RECORD-SENA.TE

dneed policies wh'ieh Ttere at variance with' communism, and lia-ve :no - doubt that' tb.ey senBe" the importance o:t' reeognhling when he was st1 ieken beo was· projecting further changes which private capital and of removing many of the obstacles intev. would have been of ad-vantage to the Russian people. . posed by' th~ ' Bolshevik Government to freer trade among the

Replying to the Senator's inquiry, may I sayi that Lenin held Rmsslan people and betwoon RlMsia and othe:r countries. various positions. He was a member of the political bureau Trotsld pcssesses great versatility. He is a brilliant writel" of the Russian Communist Parfy, which practically controls and earnest student. He hns displayed considerable abillty in the Bolshevik Party. This political bureau theoretically is organizing the mlUt:ary department of the Government He has not a part of the Bolshevik Government, and it carries out the a cosmopolitan mind, but has a strongly nationalistic view policies and mandates Of the Communist Party, and the Com· when dealing with '.Russian problems. I confess to belnt munist Party controls the Bolshevik! Government and its- favorably impressed with Tl'otski and can understand the ft.rm officials. Lenin was also a member of the central committee hold which be has upon the aff'ectlons of communists and tbe <Jf the Communist Party, and a member o:t' the All-Russian great interest which the Russian people feel in his personality: Central Executive Committee of the Russian Soviet Republic. Mr; OVERMAN. He was at the· head of tbe Red army, wus Under the new constitution, the S<>Viet QQvernment is called he not, and was the bnins of the army? the Federation of the Sovtet Republics, and Lenin was a mem- l\Ir. KING For som& time Trotskl has been the Commis~ar ber of the central executive cemmittee of this federation. of War and as such he may be s&id to be the hood of the He was also president of the Soviet of the People's Commissars Red army. Reports have been publisbed of late that be is in tl•e Russian Soviet Repnblic-, and also held the same position seriously ' ill, but he looked to be i~ perfect health when I in the Federation of' Soviet Republics. He was also president saw him a few. days bef<>re leaving Russia. of the- S-0viet of Tiabor and Defense,' and held the position of I am inclined to believe that Trotski or Ryk6v' or Kamenev alternate in the Cummunist Internationale, commonly called will take tile ~lace of Lenin-tllat ill, will be selected ns the the Third 1 Iilrernatlonaie. The chart o't diagram submitted by head ot the Communist Party-and that ipso facto gives him the Senator from Massachusetts [Mr. LoOOE] in his address the position of authority in the Bolshevik Government. In. a few daye ago shows the integration of these various organ- view ot the mo~ liberal attitude which Trotski has reeentlr Ieatioos and the manner in which· the- ftnal power ls vested in taken• and too representations made to me by many Bolsheviks, the politleal bureau of- nine- men of whom Lenin was the coir tha.t· he was• seeking to carry tnto effect the more progressive trolling figure. policies o:f Lenin, I am inclined to· the view that it w-0uld be·

Undoubtedly the vacancies ca.used by I.ienin's death In best for Russia tt the responsibilities of Lenin were pla<!84 these various comml~es will be filled. Theoretically Lenin upon Trotsli, if• leadership is to be selected, as it wlll be, had the same power as other members of tbese various com- from the left wing of the Communist.. Party. Senators will mlttees possessed, but', as stated, he was the dominating and obsene that I : classify the cOIIllilllDists of Russia. BroadlJt directttig- toTce. speakiilg, there are. tlie left and right -wings; and the left can be

Kallnin is the President of the Prestdlum of the Central properly subdividett~ the extreme portion containing the tanatiea ,.... aB.d vlsi0018.ry doetrinaires.. who WO:Uld destroy an· go~

EXecutive Committee ot' the Federated Republics, and is com· menta.. an.4. men c1dll.ration its.elf, to establish! communism.. monly spoken ot as the President of RusSia. It is a:o empty ".Chen there are the moderates, who. Btill a.dhere to communism. title and giTes h1m no particular authority. . but will mak-econcessiom when they rep.rd them asimperativelJ'I

But no one ~n take tbe P.lace o:f Lenin as the leade1· in required to save tbe Bolshevik GoTernment.: They reloctan.tiy1 tlie Bolsb.evik Government. I learned while 1n Russ.la that his permit the new economle polley, . and tor thei present aillow1 1n:fiuencQ over the Bolshevik.a was very ~eat. and many, Qf ~ sma:ll capitaUstie enterprisas to . be establlshed. Within· tbe Russian people were beginning to regard him. 'in a more favor· last...named categorY',» 1 sliould. place Byko'Y' Trotskt, Chlche:ria,, able U~t. • There. were those who belle.ved that if b~ had perhaps Stalin, woo was the ·alter ego of Lenin and his secrenQt been. in.c~acita.ted d'Uring_ the past year and a half greater taey, fo-r some time-, .SOkolnilrov, · Schmidt;, Lomanov, Luna· reforms wowd. have ,been inaugurated,. ~nd mo:re Ubera.l poll· cbankf\ KaUnl.Jlp Tsilll'DPll• To. the extreme i section IJ should: cles would hav.e lleen, ado:pted. r .met :a.ussians,, bitterly op·, asslga ZiooViev, Kamenev1 TQmsk~, Bukharin, Lltvinov, Radek;. posed ta commun.isn).. who spoke 1n kindly tenns. of Lenin. Chubu;. Rudzuta)lq.. Dzerzainsky\ and K.cykmko. '.I'be modenBla plcture,appeared,ln ip.8.IlH lu;>mes ·an~, tn ~very p,ubUc .pla.ce. ate. of the left willg shade into the rigtlt•"wtng~ There al"&l Streets . were. ~ed. aftei: :Q.im. InsUtutfQns. Qf leQ.rning Jia.v• abf~ , men; llDCb u Krassta, who,. while communists, perceiV9J been given. his. nam~and in pub,Uc squares and public build· that netthel' .. R'usala:nor the WGll'ldds ready :tor-applledJMa:rxian: ID.gs busts -of Lenin are to be seen. He was already be~Ollling, principles, and that concessions and.· d~resi from ortbodom the patr® su.\nt of., the BoJ..slw,yjjq:I,. and appeals on bellalf o! communism must be made-arr the who~ fabric o:f' BolsheTlam achemelj!.. and ~lloles. m,ade by COIUm~t, l~ade~ - were f<>f,tl· will l:>eJ loid in th& duSt. Within. tb.1Si group are.!. to: be. fomld fied by solemn. assev:ei'atiQl'.ls t~ thq. were ~esll'ed 01; woultl those who will seek to entrescb .' the. B&lsbM'llt Government ha.ve b~ deSlfeQ: , Q)'.' Le~ , I Dligbt add , tllat p~aps the ' behind state capitalism, based upon the own8l"Sh1p and .contl"ol busts anct.llictmes of Kart ;M,arx w~e as ~ ~n in Simei DJ'i th&·stat.'e of· the"' lie:J. • indmtrias. cltl.es as those~ Lenin. ;M:allY, st.teets and. SfWB,res were. also Mr. OVERMAN. -Di&. Tmt'*1 give tfortb tbe tieaehtngi et, given tije , »~& Qf Miirx:, and, s9~1wer~ .named af.ter ¢e Ger.- which the Senato~ bul spoken,. namely, that the OommUAlsts man ~nni.s.~ •. LEµ'1n1Cht ... · , wer&t$! OTerthrow. aU·go'UJmments:? '

'Dhe · ho.use. ~ wltlcll · the Czar aµd his faplily were· killed Mr. KING. Trotskl took the .same• posltlon.1 tbat the BolsJie.. fa~s a la,rge,, eq~ in. ~ c~ of Ekaterinburg, and my "riks ;have. taken. ttomr tbe • btginni~~ · namely. · that tbeJ prolee ~leeti<>a· 181 th.at1 the st~tu& ot one ot th& Cmm had. been r&1 ta:rtat in all countries! aheuid unitet and overtittow cistiDgi mo.ved and one of. 1'&.rl. Ma.Ex1ereeted in its place. The1sq\Mlf& governments and establlall' a dieta.torship of the: proletariat. ~~ bears-~name ol the " Square 0: the Feople'e Revenge.'' M~ OVIBRMAN. And still too Se11ato~ hope&- thab he wilt be

Perhaps. ~u.ru:pa..may bei- assigned.a position with tile polltt. the· bee.d i of the Russian Govemmenb? cal bUfeau.. and thtt ~ntral , commit~ and other, committees Mr: KING. I have atteraptBli·to convey the .view that Trot upon which LeuiD. served. That, however, would not giver ski ial> more · llbenll_ than 80D_1e Boishevill: leaders. socll as1 Buk Tsiurupa or 8.Il1' other persoa the power. exercised by Lenin .. harin, ZJnoviev, Dzerzhinsky, RadeJ4 and Tomsky; and th.at it L met most of. the .BQlshe.vi.k. leaderJJ. and ,talked with them wmtld therefore• be for the besb inteDfl:lta, of Russia · if Leainfai freely and. franklyi about comlitions, ln R~a. and expressed mantle sholild: fall upon h1nr rather than upon one of the ~· my disapproval of the Bolshevi¥- G~ernmen.t and its oppr~· tremls.t& I oo not mntencl that he is the most liberal of the sive and cruel conduct. Perb~ R;kov is the ablest eco:emilist Bolshevik leaders Upon the cc.mtra:ry, there are othent whom apd undoub.tedly would be a m01·~ liberal and ~ogressive leader- I regard.. as. mo.re. pro~ive than Trob;ki. L might sa-y to the than others who might l;ie selected... Ry~ is- regarQed U · Senator froon North Carolina, th.at where ,there are two evlliJ, it: hon.est. courageous,. and sincere. but. hia modesty and ilnJlep.i.. is better to choose the lesser. Tr.otskt is to be preferred,. aa I • raent of speech wm militate- againsti hitt· ~lection a&r the aetivei regard the situatio~ to many other& w.h<T bel.ongr. to· the a;. leader in the Government. I wa•dmpressed with his knowl,:.dge· treme left of the left wing of the Connnunist Parcy. From all of pu.blic •affairs and hJs .a,pparent desire to-promQte tbe weJfara that I could learn while ia Russia, the Communist Party bUr of Russin and her people. M~y with whom I. talked expreesed factlonsi However. wh.en Bl policy is agreed upon, generally the tbe·view that 'Irotski \V<>Uld mo.re nearly carry out the policies factions unite tQ execute sneb policy. There ere, as might' be o;f Lenin than. any ntber Bolshevik leader. erpeeted, Tilrious fOJ'ce& · within the Commnnlst group. There

Krassin impressed me as a man of abilitM and d;tD&mic- force. are some such as. Zinoviev, Bukharin, RadeB!, Dzenh.insky, who In my opinion, if tbe BolshevJks would give greater heed to his aTe ruthless,. cruel~ and reactionary; they resiet all progress views. Russia's develepment would b& more- certain. Rei does and seek to- "rCJW' up the stream." Others. as I have stated, · not take, the cloister view· held by so many Bolsheviks. He are mor& temperate and rational in their views. mid other Bolshevik leaders perceive thatr Russia's period of Of ~ourse, Trot.ski is a communist:· He advoeates the dog• isolation must end if she 111 to . sumve economically. And I mae Gt communism ; and be and all communists would rejoice·

7028 · CONGRESSIONAL RECORD-SENATE APRIL 24

in the destruction of capitalism and the overthrow . of all governments.

The reforms which have taken place in Russia under the Bolshevik rule, as I have indicated, were not desired by the Bolsheviks. They resisted every movement in the direction of capitalism and away from the idealogy of communism. But there were those among them (of whom Lenin had the clearest vision) who perceived the weakness of communism, or, at any rate, its inadaptability to existing conditions, and had the sagacity to urge upon their followers such modifications as would prevent the absolute destruction of Russia and the complete overthrow of the Bolshevik regime. Trotski gave some support to Lenin in this forward movement, as did Krassin and Chicherin and Rykov. Others opposed these reforms and still contend for a return to the earlier days of Bolshevism, with its fantastic, cruel, and destructive policies.

Mr. BROOKHART. Mr. President. .The PRESIDING OFFICER (Mr. MosEs in the chair). Does

the Senator from Utah yield to the Senator from Iowa? Mr. KING. Yes. Mr. BROOKHART. In conversation with Colonel Haskell

last night, he and I had the opposite impression with reference to Trotski that the Senator has. We had the impression that he represented the radical crowd and that the others are in opposition to him and more in accord with the ideals of Lenin. · Mr. KING. If the Senator means that he and Colonel Haskell are of the opinion that Trotski belongs to the most radical wing of the · Communist Party, then I am not in accord with their view. That there are some of the Bolsheviks who are more liberal than Trotski, I concede, but from my conversations with such leaders as Chicherin, Krassin, Kamenev, Tomsky, Tsiurupu, Radek, Schmidt, Noreteva, and Orkhalashvili, and from all that I could learn from various sources in Russia, I reached the conclusion that ~rotski was opposed by the extreme communists in his e:f!orts to introduce more freedom among the members of the Communist Party. It was also my view that Trotski had a more comprehensive ·knowledge of world a:f!airs, and realized the present impossibility of founding a State upon purely communistic theories. · Mr. BROOKHART. Colonel Haskell had two years of close association with all of those men, and I value his judgment very highly. . '

Mr. KING. I also have great confidence in Colonel Haskell, and I concede his superior opportunities to learn conditions in Russia. However, I am giving my impressions and expressing my views, based upon what I learned 1n Russia. The Senator and Colonel Haskell may be right, but my opinion ls as I have expressed it; and I still think that Russia's progress would be greater under Trotski than under Zinoviev and the extreme left wing of the Communist Party.

l\Ir. FJ,ETCHER. Mr. President--The PRESIDING OFFICER. Does the Senator from Utah

yield to the Senator from Florida? Mr. KING. I do. Mr. FLETCHFm. May I inquire o:f the Senator how this

committee of nine of whom he has spoken is elected? Mr. KING. It is selected by the Communist Party which, as

the Senator knows, is a compact organization and limited to approximately 400,000 members.

Mr. FLETCHER. I mean in what way. What composes the Communist Party? Is there any election or ballot, · or how does the Communist Party express itself?

l\Ir. KING. A majority of the communists reside in Moscow and the cities and large towns. The party ts thoroughly organized and so functions as to provide for periodical conferences or conventions. The local units send delegates to provincial conventions, which select representatives to the central conference at Moscow. The last conference was held (as well as earlier ones) in the large throne room of the Czar's palace in the Kremlin. I visited this room and saw the rude platform which was still in place, with a few chairs thereon; and over the platform were red banners and flags and streamers with appeals to the proletariat of all the world to unite. At this conference the nine delegates referred to were selected, and they serve until the next general conference or convention of the Communist Ptt.rty. I was told that at this congress only tried and true Bolsheviks were present.

Mr. FLETCHJDR. Then they are selected at a convention? :Mr. KING. Yes; a convention or conference of the party.

Of course, there are no elections in Russia, as we understand the term. The political bureau of nine, who direct the policies of the Bolshevik Government, are not elected by the Bolshevik Government, but by this extraneous and outside organization known as the Communist Party ; and the Communist Party provides its own machinery for the selection of representatives or delegates to the national conference or convention, at which

the program of the Communist Party ls framed and the policies which the Bolshevik Government are to pursue are determined upqn and the political bureau of nine selected. This political bureau then carries out the wishes of the Communist Party and controls the Bolshevik Government. 'l'he officials of the Government are not responsible to the people; but to the Communist Party, and may be disciplined by or removed from office by it. In other words, the Bolshevist officials are the creatures of the Communist Party. Even though they may be selected by what is called the "All-Russian Soviet Congress," or by the various local an<}. provincial soviets, they are amenable to the Communist Party and are controlled by the agencies which it establishes.

Mr. BROOKHART. Mr. President--The PRESIDING OI!'InCER. Does the Senator from Utah

yield to the Senator from Iowa? Mr. KING. I yield. . Mr. BROOKHART. Those elections as I found them out to

be were something like a caucus. They would meet in a town mefting and somebody would get up and move that Bill Jonesky be sent as a delegate to the district meeting. They would hold up hands and vote him in. He would go over there and move that John Smithsky be sent up to the state meeting. Then from there another delegate would be sent on to the All-Russian Congress, and they would elect Lenin, and this committee would have charge of the Government. The system as I have figured it out seems to me to be just about like our system of nominating a President of the United States, and I was against it because I am for the primary.

Mr. KING. Mr. Presfdent, I can not see the rosy picture my friend has painted as to the character of the elections in Russia. First. let it be understood that there are two organizations (at least in theory)-the Communist Party and the Bolshevik Government. There is also the Third International, to which I shall refer later, but it is the child of the Communist Party and has been organized and largely supported by lt. As I have stated, wherever there is a local communist organization it selects one or more delegates to attend a convention of one or more Provinces, at which convention delegates are selected to . the parent or central conference held in Moscow. The pai-ty determines upon its own machinery and permits none but communists to participate in its meetings.

At the various local and provincial meetings and conferences the rule · is for the head of the communist organization to arise and name the person or persons to be sent to the convention. There is no voting by ballot, and the demand of the leader is usually acceded to. At the congress of the Communist Party the will of the communist leaders (and that was notably true when Lenin ·was alive and active) determined the policies of the party.

In addition to these conventions and meetings there are gatherings for the selection of local officials who· constitute a part of the So-viet Government. For instance, in a village or town. there wm be a local soviet. The head of the soviet is always a communist. The communists are always active and attend t.hese meetings. I talked with hundreds of Russians who had been at various soviet meetings in cities and towns and political subdivisions of Russia. They were unanimous in stating that the communists controlled the meetings. The communist leader would announce that delegates were to be elected to some provincial convention at which representatives would be chosen to attend the All-Russian Soviet conference at Moscow. This leader would name the persons to be selected, and his action was -acquiesced in by those assembled.

I recall speaking with an intelligent and educated engineer· who was attached to one of the Government plants. He was not a Bolshevik. I asked him if he attended the various meetings of the soviet and the gatherings for the selection of delegates to the All-Russian Soviet Congress. He stated that he did and that there were others not communists who occasionally attended these meetings. In reply to my question as to how the elections were conducted, he · said that there was no such thing as an election. Whatever the occasion, a communist would take charge of the meeting and declare its purposes and the program which should be carried out, and would then say, "'Are there any opposed?" He had never seen any persons signify any opposition, though perhaps there would be many in att-endance who were not communists.

At another place I recall asking a gentleman as to the manner of conducting elections, and he stated that the communist leaders would send notice to workingmen and others that there was to be a meeting and that their attendance was desired. The number of communists would often be less than the nonmembers of the party, but the latter would never take any part, and the communists would preside, announce the purpose of the meeting, state the names of the persons who were to be

1924 {X)NGRESS-ION AL REO(JR~SEN ATE

-elected (either as .otlkers <1f the 1<'.lca.i sov'ie't ·or 'as del~atta& ' ptt(1J;Jagan<1a tn 'file "United States ot Wltieh die Sena.tor was to conventions) and fuen agk if th-ere wal!l e:ny opposition. No chatrtna'll. I met Mr. Wi'Iliams and had a very in'terestlhg 'Mle e~r ventured to indicate any negative ·o1:ew. i "ftsked him ron~satton with him. I obtained considerab~e information Why the people submitted to the role of a few cammunH1ts. He 'from him, and' he S!>E)ke frnkly and intelligently of condttions stated tlla't 'if there were any c;pposltron it would promi>tlY as be feund them. . be met with persecutive measures from the Bo1shevik Gov~rn.. WbUe not responstte to the q'tl~ibns suggested by tbe 'Sena:m.ent. Those who signified any disappl."O'Val of the ttroceedings 'Wr, f ·mn prompted to ·s11ggest that tbere are many fa:1se stntewould lose their positions or be denied liberties -a:n'd l'igh'ts to ments ptibHMied tn Ame1ican papers and in th'e pTess of Ettroi>e Which the-y ~· entitled, er, if thttr caTried flleir opposttiom. regarding eoodltlon.g in :Russia. Many fantruitic ·and foo'Hsh to the extreme they would be imprisoned. He said t'hat the stories lmve 'been prtn.ted in regard to the Bolshevfk leftders 'f>OODie had dls~ed that the mdy thing to ~o was to submit ant![ 'tibe ~lUical and -social -conditions in 'Rtissia. I fotril.d re the dictation of the 'Ccnnm'nnist Party. Leaders of the 'Bolw mucn 'to admire in the Russian tieople and much that c6nftrmed shevik Government stated to me that they Intended that 'the the view 'Whleh I have enterta'ltled for many ,years, that 'they party shcm'l't'l control the Government. Wiil.I pllay an mcreasittgly impo1fant part tn the a:tfairs of the

As I have hei·ett>f6re mated 'the Communtst Party is ·a dis- world. That Russia 'Will ima:ke progress I have no dcrubt. The 'Ciplined aTmy. 'The lea·ders designate -communists to go :tnto 'fR!bmerged. and ina:rticulate masses Wi!J.1 'l'espon~ to enlightened 11'1.l parts of Russia and take· chtl'rge of "the cities anli towns and 'forees that Will be developed among .the Russin.n people, and Provinces and of the local soviet governmEmts. In most of the 1 lhlssla-nGt 'in thls genei·ati'on, bttt m the near futnre-wm Provinces visited I found that the soviet lead~rs were not resi- occupy a proud place among the nations of the ·earth. dents of the district 1n Whicb they were oftlclafing. Changes THIRD 1NTE1u1Aa:zoN.A-L11

11:re frequently made, trusted communist offictals being sent to Mr. OVERMAN. liT. PresiGlen:t, will the Senator tell us what Sfberla as well as ofher Provinces in the state, and otb:ers being -connectiOlll thelle is bet"t'reell the 'filil'd lntemationale and t11e brought from remote parts of Sibe11a and asS:l.gned positions iJl Communist Party and the Bolshevik Gcnrernment? 'European Russia and trusted communists sent to Siberia; 1\-IT. B:ING. ~:llr. P'l'esident, I shall net att.empt a ·ooinprehannnli I met communists who had just been ordered to Turkesta1l sive reply' to the Senator's questiml, but witl. state in a most and to Provinces of Russia in which they were strangers. . . general way tlhat tlle Commu.aist Internntlon-a.l, •or, as tt .is

There aTe no e1.ect1.·on3-no freedom of action in the selectiom. more frequeutty icaHed the Third . ~na.tionale ts so cloSEfiy of officials of the Gov.emment. The peqple so unaersta.nd, anti . allied with tbe Bolshevik Govie1'nment md the coum:nmist th~ snbmlt to the dictat?l."'Ship, kn.owing that .opposltion wouldl , Party that it is 86mewllat difficult to detetmi'ne where ttie bnng UJ?OD their beadS nnprisonm.ent or banishme~t or .cruel ifllnctions of ooch begin and where the autb..ooity ttf ·eac11 termJpersecution. l\ff. TomskS, the head of the labor umon, sta.te<l nates. l bav.e stared. thait the icommrmist Party oontro-llled t'he ~o me that the communists had won the revohrtio.n and ~ey .Bo.l.shevik Gov-ern.me:mt: iin.deecil., it is oaM· ia.ccooaoo to say ~~t~nded ~o ma~tatn control of tlle Goverrun~t: I asked hl~ that the ~1shevik Government ·is the creatwe of the ·Com-

How is it possible that .With m~re th~n a m~Il10n members in. .mU!list Party. ''The~retlcaldy the ~hird ilntJemati.(Qla;)e is fllo the un~~m. ~.few eommtmi~,ts can hold the posrti:ons .a~d control pa:rt of ~ Coo:mnmist i>al"ty or the Bolsbe\rik· Government, tl1e ~unon1 Be ~~ied, Thmt 11.-s lri!tat we (meumn:rg the Bol- tbut im. .a practical sense it is a coo.djutor i<Jt the C(jllllll'lmist 2beviks) fiougat fur. .Barty and thus impresses itself upon tlle policies ;a;ud eourse

:M0StJ rommumsts hve aumt.ctty.f and many· are cour.a.geous. of the Bolshevik Govemment. 'rhe Comnnmist Party which &>me M"e sinee!'e and are l\VlMing to make .saicrlftees to defend .met up the Bolshevik G@vernment also 1@rganized the Thiltcl Bo~sm. Otilem fire snbtle, intriguing, insincere opportu- Internationale. rt has furnished tmHls i0ir propaganda a11.d ms.ts, amd are lDOt'e ~oncemed in retaining pewer than establish- the necessary sinews of w.ar to c81rey -Oh tts ldestructiive opernmg rommuniSDI. llley ll.)OOserve, as I have stated, the ficti~n tion.s. It has supplied the T.b.i.lrd Inter~tional wtih -0ne of tll:at Russia is still in .a sta.te of war and ttlat military TU~ must the most commodious buildi.D.gs in Moscow, where its acthi.ties prevail. IJ0lshe'rikSJ scoff at t'he suggestion of a const1ttrtional .are centered arul :trom w.hich go f-Orth directions to guiae ~vernment or a ic,nlltitm:ional ~onvootten 1Jo f1•me a ccm.stitu- communists in au :parts of the world. I visited the hea,dtion., -a.nd tbey jeer at the mentt10n of 'free ·elections anu secret quarters of the Third .Interna.tionale and there discussed with ballot. I.If an election ~re held in the manner -0btaini:ng in the ltadek its pollcies .and activities. Repi"eseD.tatives of commuUnitied States and tibe Peot¥le 11tlden'll00'd tllat they ,could secretly nlsts from various cowtrieil ftud pQSitions with the Third IntJervute for such perst1>ns as they pleased :tor positlon·s of reS{)On- nationak .and occu,py offices in the b:uil-Oing which I ·have just ·sibility., the l'!Omlll!11Dist ·government would qut.ckty be e.tisp'laced. referred to. The Uter.ature pri12ted by this i0rganization ro:u.Es

Mr. OVERMAN . . Did the Sena.1JM' tfl&d. any :A.ma-leans oiver from the printing. presses .of tliLe Bolshevik Government. Tlle there? Jt was •l!lrCJatJe4l 'before a OOll'Jttlittee ot which 'I was a. mem- I>lans and policies of the Communist International ue ileter-ber, in mi 111.vestigatlan conducted .a year or tw-0 a.go, that .some mined by the Russian Oommwats.t Party. · Americans wh-0 Wftle ·tna-vellng in Ruesia recogniEe<I tine h~d In other words, both the Bolshevik -Oov.ernment ( comprisi11g ,&f the tr.anspgrtatlon division as • perS011 whom they had seen the Russian . Sovi.et '.Republic and the Federation of. Soviet Reworking tn an East' Side restaur.mt in New York. This person publics) and-the Third Internationale at·e dominated, controlled, recogni.rie( the .Alner.lean lt8.l'ty 1lnd said "' H-ello, bo.ys1 Are ·and dir~ted by the Russian Communist Party. As stated, tlll.e r')u going to Brookl!Vll1 ' ~' Il.e turned out to oo an Amerlea:n. Third lnternationale was organized. to carry on a world-w1'1e

.Mr. KING. MT. Ptwidant, t1l too v.adons P"'vinces visited I propaganda in behalf of communism and .to {iromote the demet the soviet leaders as well as hlftlldJ.leds of people. We ·ftd- struction of all orgallized governments. Senat-0rs are familiar dressed .a n..um'ber of meetings alt whieh p<>lftical leaaers and with the fact that soon after tlle Communist Par.cy .seized eonleading .citizens were present. I do not recalJ.l ·seeing in 11.ll trol of Russia, Leiain and other Bolshevik leaders perceived the my tr.av.els in Ru~ tmore than a dozen t>ersons who w~re tmpractlcabillty of the communistic scheme and sou;ght to ap'hoi-dtng potitl.<Cal positions and who had been in America. There pea-se their . tollowel's by declaring that tbe g-0al of communism were a number ·Of .A.meriean~ ilD Russta ; S<>me e'l'l.gaged in hnsi- -cou'Id not be 1·ea.ched until all nations had accepted the comnies.s, and 'Some seeking ooncesslcms 'ftnd QPllGrtunit!ies for trade munistl.c creed. There~on .. they organized ·the Communist and commeree, w'hU.e • few -were 'Vi-Sit!ng Russia to -obtain in- International, and the Russian Communist Party has masquerf.ormaltion.. TbeN were also a num'b~ engn.ged in charitable aded behind 1t iJJ. the internaU<>n.al acti'Vlties and propaganda work, and a few were liquidating the relief organizati<nrs which carried on for the destruction of the so-called capltalistlc hftd aecomplished ee much good, particalarly ln the 'famine- governmEmts of the world. The Rus5lian communists have sub.stricken areas. I wn 8llrPtised to 1lnd so ilew who had been sidized the 'Third Internationale have directed its movement.a, iln America OCCQ))y~ng pos.it.ions in the Bolshevik Govemi:irent -and have absolut~ control of its activities. Qr engaged Jn bUl!iilness llctivities. I recau meeting a few Its otn:ce:cs are the Important omcials i.n the RU$ian C.omw;Jno had been ill ..A.merica, am-aQg them being Mr. Ti1«>teki, :munist Party as well .as in the Bolshevik Govei:nment. Z"moGregory Wmestein, Mr. Nauretev.a, the pr~t Gt a bank at viev, tne most reaetlonary and crnel of tlle Bolshevik leaders, R.ostov (his name .has just escaped me)., and the I. W. W. is a member of the political bureau of the Russian Dommunist leader, Bili H-a.yweml. I met tl'llr. Haywood iin the eilftce of one Party w'hidt controls the BolslreVik Government as -well as the -of the Bolsh~vik icommissaTS. H.e 1&d n&t seem. 1>artlCRlarly 'l'hird Int-ernn.tlonale. He is a mem'ber of the central cottihappy, and lflpon investigation I leamed th'&t he JJ"Sesses btlt mittee of the Ru-esian Coonmuni!rt Party and a member 01. t'he l.Utle tntluence in the Bolllh.evik GOW!1'11meat Be is attaebed Clentnl E~tive B.ussinn 'So'Vf.et Republic, and also holds a oo the Third llll.tematiMl11.l and clams to tbe the ~PreffeD.tatt~ 'Similar posftlcm tn the Fedet"atlon of Soviet ltepublics. Be is of the United States to the Third InternationaL J'resldent O'f the Commtutfst Internatiunni 'and a ~mber ot

Mr. -0\".ERll.AN. Did the Senat.r see Kr. Williams? Xs ~ttti'Ve cmnndt~e. Mr. KING. il ;>mwme tDe SeBator Nfien te Mt.'. Rhys WR- Zinoviev, as presiuent <Jf t'he Th'it"d lntemationale ~s his.

liams, who testified before the committee investigating Russian instructions from the political bureau of the Communist Party,

7030 CONQRESSION AL RECORD-SEN ATE APRIL 24:

of which be is a member. Lenin was an alternate member of the executive committee of the Third Internationale, as was Trotski, who still holds the same position. Bukharin is a member of the executive committee and of the praesidium of the executive committee of the Third Internationale; and is also one of the political bureau of nine· controlling the Russian Comm:unist Party and the Bolshevik Government. He is also a member of the executive committees of the Russian Soviet Republic and the Federation of Soviet Republics.

Radek is a member of the executive committee and also of the praesidium of such committee of the Third Internationale. Ile is also connected with the political bureau of the Russian Communist Party, is a member of the central committee of the Russinn Soviet Republic, and holds a similar posi-tion in the Federation of Soviet Republics. ·

Litvinov occupies a position ·in the Third International and is the second in command of the foreign office of the Bolshevik Government and holds important positions in the Communist Party as well as in the Soviet Government.

If time permitted, I could show that the Russian members of the Third International are members of the Russian Communist Party and are connected in various ways with the Russian Bolshevik Government. The Third · International has a newspaper ·organ which is published in :Moscow, in the printing establishment of the Soviet Government. Its editors and managers and most of its contributors are members of the Russian Communist Party. A few articles appear from time to time written by communists beyond the borders of Russ1a.

When conferences or meetings of the Third International are held, they are dominated by the Russian Communist Party and are under its auspices. The Third International would have disappeared except for the Russian Communist Party. Perhaps I should qualify this statement by saying that there are a few communists in various countries-and they might be able to maintain a skeleton of an international organization without the aid of the Russian communists; but whatever strength the Third International bas must be attributed to the communists of Russia and to the support, financial and otherwise, which they have given it. The fact is that the Third International is merely a torch in the hands of the Russian Communist Party which it employs to work destruction and havoc throughout the world.

I spoke frankly to Chicherin and other Bolshevik leaders in regard to the Third International and suggested that they could ·not expect the Bolshevik Government to be recognized by this Republic so long as freedom of speech and .freedom ot the press was denied, and it pursued its present course, and particularly so long as an alien and extraneous organization, like the Communist Party, controlled the Soviet Government, and that government gave countenance and support to the Third International and · its sinister propaganda. I called attention to the activities of the Russian communists, to the millions of pounds which ·had been paid to the communist newspaper published in London, and to the fact that money had been sent to the United States from Russia to spread sedition and to organize the workers for the overthrow of our Government. In various parts of Russia, where I addressed local Soviet leaders, I challenged attention to the Third International and to its close connection with the Bolshevik Government and to the propaganda which was being carried on in various countries by the Russian Bolsheviks and members of the Third

· International. A number of . Soviet leaders admitted that such propaganda liad been carried on, ·and that protests had

· come from Great Britain and other countries against the revo. lutlonary activities of Russian Bolsheviks, and in my inter

views with Soviet leaders I referred to the fact that Litvinov bad been expelled from Great Britain because of his offensive propaganda in behalf of communism. I also referred to other Bolshevik emissaries who had been expelled from various countries because of their violation of conventions and their in-

. trlguing and corrupting influences aimed at the destruction of industry and the overthrow of existing governments. Chicherin contended that the Third Internationale bore no different

· relation to the Soviet Government than did the Second Internationale, whose headquarters are in Belgium, to the Govern

. ment of that country. It · is manifest that the comparison suggested by Chicherin

Is without basis, and this I attempted to demonstrate in my conversations with him, as well as with other Bolshevik leaders. I also said to them if the communists of Russia and the Bolshevik Government were not behind the propaganda of the

· Third Internationale they could quickly convinc~ the world of , ihat fact by withdrawing subsidies and support and, finally, by , denying a home to the organization.

The confessfons, admissions, and pleas in avoidance made by soviet leaders furnish convincing evidence of the fact that the Russian communists are hoping for a world revolution and expect to aid the so-called proletarian movement for the overthrow of existing governments and the establishment of a communistic world r~gime.

I learned from Bolshevik leaders while in Russia that they were in touch with communistic forces throughout the world and were contributing .. financially and morally to impending revolutionary movements.

I shall refer lJlter in my remarks to the visit of German communists to Russia while I was in Moscow. Bolshevik and communist leaders, who were also memberS" of the Third Internationale, held prolonged sessions in the Kremlin, where the question was considered of the extent to which the Bolshevik Government would give financial aid to the communists of Germany who were organizing for the purpose ·of overthrowing the German Republic.

In the trans-Caucasus district I learned of the activities of the Bolsheviks in Persia and Afghanistan as well as in India, China, and Japan. There seemed to be no concealment among the communists of Russia of the fact that the Bolshevik Government was supporting moveme1;1ts to bring the world to the commtinist faith. There was frank discussion concerning the Bolshevik propaganda in India and among Mohammedan countries; and Russ1an Bolsheviks seemed arrogant and proud in ·the knowledge that they were carrying the banner of communism to many nations.

Mr. President, I have been diverted from the line of my address by the questions of Senators and in my replies have cov- , ered in part, at least, matters to which I have referred and , which I may elaborate further before concluding. I have no objection to being interrupted, but this may lead to some repeti tion, for which I crave indulgence.

CONDITIONS IN RUSSIA. UNDER THl!J NJDW JDCONOMIC POLICY

With the announcement of the new economic policy, private domestic trade was slowly introduced among the people. Prior to that time it was a crime, which might be punished with death, to engage in the purchase or sale or exchange of commodities. To sell upon the streets grain or the products 'Of the farm brought punishlllent to the peasant. Communism meant not only the ownership of all property but its operation and control and the control of all production. The people were conscripted, assigned to their places of labor, and were given cards which it was represented would pro~ide them the neces· . sities of life. But such a condition was impossible, and the Bolshevik leaders were compelled to modify their program. .

The chan~e that followed inspired hope in the people and they began. to work and to produce. In the cities and towns stores and business buildings which had long been closed were opened and shops appeared in which a limited number of commoditie5 were otiered for sale. Peasants brought their wares Into the citioo and freely exposed, them for sale. Markets were provided. where commodities of all sorts were bought and sold. This freeuom of trade among tlie people soon wrought important changes, socially and industrially. Goods and commodi· ties which had been secreted were brought from their biding places and exchanged or sold. Thousands of individuals with but little, if any, capital traversed the country buying and selling and bartering and trading.

These conditions called for banks L.nd for credit and for the things found in so-called capitalistie countries. With the increase in trade more stores and buildings were required, and to make them available for use improvements and repairs were necessary. In the cities and towns not only private residences and apartment houses but the buildings which had been ·used for stores and banks and business generally had deteriorated and in many instances, without large expenditures, could not be occupied.

Following the decree of confiscation under which all property was taken over by the Government, the buildings within the cities and towns were given over to the control of the local soviets. The Soviet of Moscow under this policy found itself in possession of all real property within the city, including' all buildings, public and private, numbering many thousands, and of enormous value. Scores of the most costly and beautiful buildings were used by the officials of the central government and by the various organizations of the Moscow Soviet. Many commodious and beautiful buildings were turned over to communist.:;' organizations, to the Third International, and to the Soviet Government for use in its business enterprises.

Thousands of. persons from othe!' parts of Russia cr.owded into Moscow, so that the popuiation became and is now greatly

1924 CONGRESSIONAL RECORD-SENATE 70311

congested. The owners of all buildings. as has been stated. were deprived of their property. Many of them were d1iven from Russia. Many were lost during the revolutionary period. Persons who owned apartment houses or other fine structures often found themselves with no home in which to live. or at most with one or two rooms, depending upon the size of their families, in ·some poorly constructed and practically valueless building. Many tragic cases came to my attention where persons who had erected beautiful homes or valuable apartment houses were turned into the streets and the buildings filled with the lowest types of society.

Visits to a number of residences and apartment houses which when in repair would be a credit to the finest cities in America found them occupied by workmen from the streets and faetories or persons who never owned property and whose .habits under any industrial . or "political system would have prevented them from acquiring the same. The owners and former tenants bad been expelled and the rooms had been allotted in many cases to persons who would not make repairs. and the Soviet Government had no funds with which to make needed repairs or keep the buildings in habitable condition. As a result many fine structures were practically wrecked or were so deteriorated as to require large expenditures in order to make them suitable for further occupancy. The occupants not owning the property were indifferent to its protection or preservation. As a result the injury to and indeed the destruction of building3 confiscated by the Bolsheviks was enormous.

Evidence was brought to my attention that in allotting rooms to the people the soviet officials discriminated against the owners, the intellectuals, and the bourgeoisie. and these classes have been the greatest sufferers under the Bolshevik r~gime.

The soviet leaders finally awakened to the fact that property worth hundreds of millions of rubles (gold) bad lost much of its value. and that it would soon be destroyed unless e:.J:tensive improvements were made.

I was told by communists that a proper use of the buildings in possession of the Moscow soviet would make the municipal government of that city the richest in the world if there were an industrial revival in Russia. When it is remembered that Moscow had a population exceeding 2.000,000, and business structures, private residences, and apartment houses . that compa"I"ed favorably with those found in most cities in the world, one can easily understand something of tbe wealth which was confiscated and which is now controlled by the Bolsheviks of Moscow. · .

As stated, a change in policy was necessary to save the build.ings. Accordingly, many of them are now being leased for periods varying from 1 to 49 years. But no modification of the principle that the Government owns the land has been made. It was perceived that some 1 plan must be adopted to give value to the land and to bring the appurtenances thereof into use. Under the new policy important repairs are being made and dilapidated and . useless buildings put into shape for occupancy. No new buildings, however, are being ereeted and practically none have been constructed since the Bolsheviks came into power. Only at Baku and at the fairgrounds in Moscow did I observe any new buildings being erected.

Where important improvements are required of lessees the rents demanded are unimportant, and in some cases, because of the ma~nitude of the impr_ovements contracted for, no rent is required, the theory being that the costs incurred by the tenai;it are equivalent to a reasonable rental during the demised period. Under this policy Moscow and other cities which but a few months ago were dilapidated, and in part almost in ruins, have taken on new life. The repairs call for labor and materials, and this bas given employment to thousands and called for the reopening of plants and factories which had been closed, in order to meet the growing demands for materials and other supplies and commodities.

There were more than 20,000 stores and shops in Moscow in August la:st, most of which had sprung into existence within the six or eight months preceding. It is true the stocks of merchandise in most of them were limited, but great artistic ·skill had been exercised in exhibiting the wares to the best possible advantage, so that, to · the superficial observer, the shops had the appearance of abundant supplies. . An absence of six weeks by our party from Moscow showed remarkable improvement within that period. l\Iore buildings had been opened, streets had been repaired, houses bad been painted and renovated, and a general air of business activity prevailed throughout the city.

Petrograd, which before the war was one of the most beautiful cities in the world, presents a melancholy appearance. Its glory has departed and · ruin and desolation. abound. Indeed, there was much unemployment and considerable discontent;

many buildings were unoccupied, and in many parts of the city the~e was evidence of neglect. deterioration, and decay. However. busrness houses were being opened and considerable trade and commerce was being carried on. The population of Petrograd has been increased from the low level of six or seven hundred thousand, but its present population is perhaps 1,000,000 less than it was prior to the war. In Kiev, Rostov, Tiflis Baku and other cities visited by the ·party there were mark~d signs of business improvement. The spirit of depression and despair was giving way to hope and faith. The initiative of the people which had been submerged-in many · instances almost de: stroyed-was again appearing and new ventures and small business enterprises were being started. But much of the business was artificial and brought no material gain~ tJ the people.

Hundreds of persons were engaged in exchanging articles and commodities or in buying the same for the purpose of moving the products to other parts of ltussia for exchange or sale. It was a system of barter, an exchange of articles and commodities .• such as old clothes, household utensils, small parcels of leather, hides, "Cheap jewelry, fragments of cloth (cotton and woolen), food products, ill assortments of an infinite number of small and inconsequential articles, many of which of · the pre-war vintage, and the exchange of which did not add to the wealth of the community. In the cities large markets bad been opened, and there immense throngs gathered to buy and sell products of farm nn<l factory. During the nights the roads leading from the country to the cities were filled with carts and small vehicles laden with vegetables and fruits and wood, drawn by small oxen or horses lacking strength and· size beside which plodded through the darkness the silent and patient peasants who hoped to be able to buy a little sugar or tea or cotton cloth or, perchance, shoes for the bare. feet which would soon be ·exposed to the snows of winter. There .were some shrewd and active traders and merchants who were making large profits, and there was being developed a nouveau riche class, called in Russia the "Nepman." As the number of .private stores and shops increased the taxes and burdens placed upon t;he owners increased. These burdens became so oppressive that private trade was menaced. In the month ot August 5,000 private shops and stores were closed in Moscow alone, some of the owners stating to me that the taxes and demands of the Government, local and general, were so exorbitant it was impossible to meet them. One individual who was engaged in a small manufacturing undertaking employing 10 men stated that he bad been asked to pay the equivalent or 10,000 rubles in gold for a tax or license for six months, and that the entire assets of his business would not pay the tax, and he had, therefore, closed the doors and abandoned the enterprise.

Com,Plaints were frequent by merchants that enforced contTibutions to various causes, such as the fund for airplanes, the bread loan, and other governmental enterprises, were made by the Bolshevik Government. The Government was attempting to float a domestic loan of approximately $100,000,000, and a very vigorous campaign was being waged to induce not only ~mployees of the Government but all other persons to subscribe to this loan. The law or decree. which related to the loan provided that those who purchased bonds could not dispose of them or use them as collateral.

Private merchants were also subjected to the handicap result .. ing from the Government being engaged in domestic trade. Government stores and shops and merchandising institutions are numerous throughout Russia. Indeed. before the new economic policy. as stated, the Government controlled all trade and commerce, whether foreign or domestic, and in order to carry out such policy it established warehouses and shops and stores throughout the country. In addition to the Government stores, which are in competition with private stores, there are many cooperative organizations engaged in furnishing commodities to their members as well as to the public.

I was unable to obtain information sufficient to definitely determine whether cooperative stores were successful. The evidence as to the Government stores was that they were not economically or skillfully managed and sustained great losses. One of the burdens of the Soviet Government arises from the deficits resulting from its operation of various industries, including the stores and trading establishments which it conducts. Complaint was also made that the Government favored its own stores and business entE:rprises and discriminated in many ways against private concerns. The best buildings were supplied to Government enterprises, and the rents, it was claimed by many persons were relatively less than those charged private institutions. Complaint was also made that the Government furnished banking credits to its business enterprises but denied them to private business; and there was

' OONGRESSIONllJ 1REOOJitD-SENATE APRIL 24

eonsidernble :evidence to 1support ·the eomplaint that the taxes w110 ;have .made enensiv.e l!epnirs upon apartment houses or colleeted !from 1)rlvaie •business ·were 1Ill.11Ch ihigher ,than 'those business ·blocks mre renting the Bame, reeeiving !therefor ¥ert. i levied upon similar .governmental instittttlons. This situation large 'Sums. The clty so~ets 1eontl'olling houses give pre.ferhas ;provoked cmnsiderable. ll"esentment against the •Government, ence and advantage, bnth Jn tehoice 1of buildings 1and Jn rents,

1 and many .persona believe that 1t 'WRB the beginning of the end to communists .and members of labor ·unions. Lessees ~Y

1 of-private lbusln-ees '.in Russia and that e. return to governmental fo.r light, ·heat, and water, :and become iresponsible for pavement operation of all nctivlUes was ·soon to come. Undoubtedly .those and street charges. · who are endeavoring to establish prf..vate •enterpriseB )and to ·Where houses .have been .repaired by .lessees the Government

I introduce 1private 'trafte and to ·save Russia from ·economic de- requires :that 10 per cent :uf the ..space be :furnished free ~or I Stl!uction ·wm ..encounter •fterae .oppoeition from the ;extreme the use of its officials and iemployees. Complaints were .made Bolshevists, nnd ·many ·will be -ruthlessly destroyed, but the that the Government was not .-scrupulous in keeping its con-

, movement ·towa-rd J)rivate ownership of property and the capl- tracts, and one instance was called to the attention of the 1 talistic system can not be defeated. 'It •may be checked and party •where illlrge <expenditures •were .:mafie to convert a dilapi4 halted, bttt it wlll in the end tttu:mvh. II should -add, however, dRted •building dnto one which tWUS habitable. Under the ;contiutt state capitali£m in •exaggerated lform ·wffi persist for un tract 'the person making :the !l'epain! :was entitled to tits ~e indefinite 'J)eDiod lin Russia. !Even under the ·Czar the sto.te for two -years, but ·when the repairs ·wel'e made he was in- . o.wned and controlled some enterp11ises and -engaged in some fonmed that the occupancy ·must te.rmi:nate tat rthe end of one bueiness activities. year.

A controveMY ~xists among the "Bolshevik officials •as 1to the During the ·~r's "thne .all corporations organized in Russia program to be followed respecting internal 1tro.de. A •number were fi3I)ecial .and had ·to receive the approval of the Czar. of tthe leading .:Bolshevik 1 officials stated to me 1tha t they 'Would Oorporations may now be . or:ganizetl ·b:r !filing articles 1w.Ith .the. be glad to see an ·prlvate ·trade In 1tbe 'hande 1of the i<rovernment proper officials df the Government and obtaining certuteate •of or of ·co0100rattve :organizations wtiich wonld fmiction under approval. The council •of labor and •defense .has control of col.'tbe ·direction .of !the Government 1and ·1n contact ~Ith 1Govern- porations. Stock 1Dltry be issued and ,private ownership of tha ment enterprises. ·mhey also oppose ·the policy TWhlch -J>ermlis stoek ls recognized. mhi.B stock ·may be sold •Or ,mortgaged or private :stores · and Bhops ·and 1banks 1and •other ~ivate business disposed •of •by will. While there are rthe obstacles and impediorganizations. ·Other iBolshevik officials stated that the ·new ments usually encountered ·in •hurea.ncimcies, the •dbt.aini~ .of economic rpollcy would :not be .irepealed; ·'Slld ~otskl, in -answer eertificates of inco:rporation :are not insuperable. ·.Coi:]!>Orations to :my question, said 1bat !this i:poltcy :was an ·" imperative neces- al!e limited :to such :activities as are permitted to 1ptivate fu:ldi· sicy for :90;0001000 pw.sants,~· .and that "if we wanted to smash v.idua'ls tmd ·to such ,business enterprises as are not rcontrolled

' om· heads, 1we would 1&bandon itbat >policy. The •Condttions in by the Government. How.ev.~. corporations ma:y be formed ttu internal Jife :fully 1demand ite ·stability." engage 1n ·foreign Jtrade and commeree, but the:re .are veTy

.A soviet o:fficilil !said that 1one of the .important sources ·of stringent Jrecrt:i~ments imposed, .as -conditions .precedent, .and Fevenue was mid rwould eontinue :to be that dertved from rthe they ·are..gub(tedt to ·Gt1Vernment :regulation and contuol. . shops :mi.d mores lllld the privste -ente!!pr.i:ses that would be Under the law property exceeding 10~000 1mbles (.gold) in developed, Jand "that to taI them ·out of · ~istenee or to project value capon 'the death rof ithe owner .goes ·oo •the ;state. Jf a

, the ·Government .RgRln :into 1the .mrtire tfield .af !private 1endeavor, pm•son were the owner of a bueine!IB 'WJilch rww; worth more aoo thus 1iestnoy 1W.hat the ne.w eecmomic policy .. had .gained, than 10,600 !rmbles, .upon !his. death 1he state wotild he ·entitled would be-" ' to ~kill the goose-that lays :the golden egg." to 1a11 above'tbat .an10unt. .Provisions ia:re being made, .however, B~vei:, under thlsmew.policy private enterprise bas -gained tor1the eontinui.ng oflthe business, the state being regarded as a

but :little tb:l :the indns1lrlal and manufacturing fields. AB statell, partner therein. In 1the •event of concessions or .grant~ t>y the the -peasants .are ·fnee -:to lb:ny tm6 io .eell, iana the Shopkeepers state, or leases, the heh·s of rthe lessee may succeed ·ta ·the halve gained :a foothold ·:fi.rom which 1they ·will ;not 1ie .diSJorlged:; same, and a more litierBll policy ts ·being :follnwed with iregam bnt -.the cmineB .and mills :andJfactories ~and ipl8.Jlts and .railroads to the disposttion ,of rthe .property (ff 'deeedents. and all "iheaw ·indusn:ries" ai:e owned tand .apenrt-ed by 1:he As stated, corporations are . being formed which hold :the Government. iin :l.912 :there were 1,100 :l:mpo.ctant manufactnr.. title <to l}ersonal pr.operty and the ~tock ls ,negutiable, and they ~ and jndustrial 1oon.cre1ms within !Russia, 198 ·being metal- may sell, tre.nafer, ror use it .as . collateral~ sub.sta:ntiaUy as in lllligical, 1:46 being denoted <8:S .metal industry, :248 i:.ex:tile, land the . ·Ilnlied .states. .A man by 'Will may net dispose of his others relating to the cotton, wood, mineral, chemical in• property beyond .the limit of .10,-060 rubles (gold)., and then dnstries, and .also 1animal ,products · and lfoodetutts. .'L'hil:I mun- only ito his rwifa and children, and in some instances to de. ber had gi·enUy increased at the time the Wwld War began. pendent •pa:rentt!. llrritotiug -and oftentimes insuperable ob-H,undr-eds .of millions ·Dt .rubles ·were Jnvested Jn these 1la.i;ge staoles Bll'e interposed by ia.n ofilcious -bureaucracy rto the conenterpJJlae$, which were .rtg>idl~ increasing, and :Ru118ia's .in- trol .b.Y .lndtvfiluals l{Jf !fheiJr personal Jlll'Operty, and icoIQplaints dustrial iPllogrees 1duriJlg the 10 ,yeRl".B p.recedin_g ·the war was oecur ·uf the .coBts and delaiys and obstacles in effecting rl:he renu1rkable. · sattlemm:tt of rtlhe estates .of -rleeedents .and ra~omplishing a dis·

Many i-0f ·the ~lants e:nd factories ibave 1been .cl0Sed by 1the tributicm 1of ilhe smne to those 1entitled rby law thereto. Bolshev.iks . and othel!s have ·fnllen ,into· ,decay or have been It was -&rta.ent that rmone and more the .right ,of private dest:royed mod 1still others are ·rprodncing b1l't a email 1~r ,eeni ownenehip Of property ie being :r:eeognized :and the control of of their former output. Before the war there bad .nlso rbeen such :pro.perty respected and protected. 1With 1the .reeognitioo ·~velo_pad .a )lru;ge rnumber -0f small business enterprj,ses. There ~ jprivam owne1'1lhip of -property, •progress ·is inev.iitable. The w01-e toouaands of mills .and brJck tPlanis .and ,business cen- initiative of inclivtidnala .is 'Btinmlate.d, the desire i1JO aequil!e oorns tWbieh emplo._yad an . ~gg.11~ate (}f tens of..thousandi! &f ,per- is 1developed, anl!l the 1Cleparture ifram •Ct>mmunism .ts more sons, and .eilllStttuted no inconsiderable iPart of .the wealth . .ai ra}Jid. ·Giolitti, -the Italia1l ste.tesman, :-remarked that 1the well as the .business -actlv.ity o;t ithe state. :Mostiof these ienter- commnnists of BUBsia ha~e "stored t!heir eommunism :in rthe prises e.nd eonperrurilave been blotted out. attic." .He ll'efers, 'Of oomse, to ~:what -extreme Maroc:i.ans ·con-

Where:ver our :P.atr.tY -:went I smv dismantled 1b11ildings which ·tend •communism means, not state capitalism. · had been .dev;oted to indu11trw-. Plants \and factoties iwePe .in '.The •courts are iresorted rte to protect pr0perty Tights. .AcEuins and gave mehl:nchOly evidences of Russia,s 11ll.dustr!a.l tions corresponding to cl.um 1and delivery and damages for degradation. A few C1f ·the smaller Jll]ants ·se~e.d tby the ·Go~ern- injuries to and destruction of property are maintained .with ment have been lea11ed to ,priva;terpersons, but the sov:iet offidals reasonable assw:ance that ,justiee -will b.e ·done .in the ,pll'emises. rep&rtedly idecl.Med !that rthe :keF industries would iremain in the A •statu~ of limitations •b.aftl suits .of :variou~ .kindil, rthe probancls of lthe Government. v.isions mot ·being greatly different &rom .the -statutes -0f limlta-

llut •tb.e · disap~inting results experl:enced In ·state 1ownership tlon$ enacted in other countries. and operation -may lead to further i~onoessiom; and ;greater Te- 'El.e :three years' -statute ·Of limitations .has d®iiivied mmzy treuts itrom rommuniam. 'I'bis is the belief ·ot ·well-informed oW!Ilere 1of personal iproperty which was sei21ed ,by .the Gov,ernpeTSOll8 ' ln Russia, OIIld is my opinion. mentor perhaps by 'indivddua:ls. :Aocordingly ,maey per~ms Al"e

·Small residences of but Jimited vatae •(10,900 •rubles or less) confirmed in their possession of .hou-sehold effects, books, a are •being ,restored 1'o thel.r tormer ownel'B. However, the title gl!'eat ivariety of tools .and fwrming •utensils, as ;well as jewel:cy, ta the ground :remains in •the state, e:nd 'the occupants ma'Y not pietuues, and more .or ile9s raluable b11ic-a-brac, and the plea mortgage ·or ·sell the same .6r do nnything to 'in.ju.re .the land of the -statute .is met .if the pnesent }?assessor and claim.ant ma:y or impatr itbe title. Rents •for business properties are very piece together the periods of possession by others, ipnovi.ding the bigb. Sb: ihundred gold •rubles •Ji)er -y,ear are charged for .some aggooga.te malDes -the three ·!_fears. £rhls eft:ectually j)'l'e'Vents btilldlngfl !for -eneh '50 square feet. :As im:neh '118 ·s1000 ~nDles . recovery by :the former ·owne:cs, lbecanee su»stantilllly all ·prQp~gold) are ;being •paid in Moscow for the priv.1lege 1of ·taking •O!fer arty 'involved ~as J!lelzed more than three ty"eans .a:go or has theell the lease ()f •an •apartment coosisting of out a few ~oms. !Close pnt pt :the. .pCJSseJ!Bion of the J>wner for tln!ee ·years or ..more.

1924 CONGRESSIONAL REOORD-8ENATE 7033 PEASANTS AND LAND HOLDINGS plan. It was intended to abolish the communal land owner-

Tbe condition of the Russian peasant is still pathetic and ship and allot the communal lands to individuals, giving each indeed tragic. His poverty and in many cases his physical an indefeasible title. The execution of this plan was slow, weakness, resulting from a long period of hardships, are ob- and in 1916 only two and one-half million peasants who had stacJ~s to vigorous and effective toil. The revolution has not applied for the fixation of their individual rights to the lands wrought the change in his relation to the land that many have they were cultivating had been allotted their respective parcels thought. Tbe view has been prevalent outside of Russia that of land, the aggregate quantity being approximately 16,000,000 prior to the revolution all lands within the Russian state be- dessiatines. However, many other communities had effected longed either to the crown or to the state or to a limited divisions of communal lands aggregating many million desnumber of landowners. Mr. Norman, the British member of siatines, and the peasants therein were severally in possession Parliament to whom reference has been made, in his book on and control of such lands. And early in 1917 four and oneRussia states that as early .as 1892, 50 per cent of the arable half million peasants had received their allotments in severalty lands in European Russia were owned by the peasants, either to more than 38,000,000 dessiatines of land. individually or in community form. Before the war there were In 1887 among the rural population the arable lands allotted millions of acres held by village communities, the title being in to them individually, or in communal organizations, the allotthe community. In some .instances there was tenancy in com- men ts, according to population, were as follows: Forty per cent mon, in others a sort of joint tenancy, and in still others the of the population had allotted and were in possession of 2 to land was regRrded as the property of the inhabitants of tb.e 4 dessiatines per head; 29 per cent, 4 to 6 dessiatines per bead; village or community and could not be alienated, but title passed 11 per cent, 6 to- 8 dessiatines per head; 5 per cent, 8 to 10 to succeeding generations of those who lived in the community. dessiatines per head; 3 per cent, 10 to 15 dessiatines per head;

In 1905 the lands of European Russia were owned and held less than 3 per cent, 18 dessiatines per head; 8 per cent, 1 to as follows: Lands belonging - to the state, l38,086,168 des- 25 dessiatines per head; and 1 per cent more than 15 dessiatines siatines; allotments to peasant communities, 138,767,587 des- per head. siatines; pl'ivate owners (large landed estates), 101,735,343 For a number of years before the revolution many of the dessiatines.; Crown and imperial family, 7,843,015 dessiatines; peasants were demanding more lands. Siberia was an outlet, monasteries, 739,777 dessiatines; municipalities and towns, . and the migration frqm various parts of Russia ·was annually 2,043,570 dessiatines; Kossack troops, 3,459,240 dessiatines; increasing, The primitive methods employed in agriculture, different institutions, 646,885 dessiatines; making a total of the lack of necessary farm implements, together with the 395,192,442 dessiatines. A dessiatine equals 2.67 acres. restricted markets, lack of trans1-0rtation, and the backward

Substantially all land within the above category of peasant condition of the country, conspired to keep the peasants in a allotments was . inalienable and belonged to the village com- condition of poverty and intellectual torpor. munities. More than· four and one-quarter millions of dessia- The lands available for distribution by the Bolshevik Gov- , tines, prior to January 1, 1905, were owned by peasants in- ernment, even after its confiscatory decrees, did not provide dividually, with the right to sell, mortgage, or make any dispo- for the peasants the amount which they expected to receive. sition of the same that the holder of an indefeasible title en- The1·e were many · so-called ·" rich" peasants, with holdings of joys. Associations or groups of peasants had purchased prior from 20 to 50 or 100 dessiatines. The possessory rights DO\V to January 1, 1905, 7,054,000 dessiatines, and their title to the enjoyed by them 8.l.'e no greater than other peasants in the same was withQut 1.'estricticn or limitation. Tb.ere were also same neighborhood. Considerable dissatisfaction exists among peasant communities who bad acquired full title to 3,729,352 those peasants who prior to the war had bought and paid dessiatines, which they held in communal priv~te ownership - for their lands, and also among a large number of peasants in contradistinction to allotments in communal ownership hold- who occupied communal lands, the title to which was in their in gs. ... community centers or organizations.

Between the years 1905 and 1915 peasants acquired a fee Great progress before the war was being made toward -simple title to 9,851,444 dessiatines of land, ~ubstantially all peasant private ownership, and community holdings were being of which was owned by them individually. Of the 138,086,168 divided so that the peasants were becoming individual landdessiatines owned by the state, to which I have referred, owners. This policy encouraged individual effort, developed 124,000,000 were .in the north of European Russia, bordering initiative, and brought about marked progress and improveupon the White Sea and the Arctic Ocean, and to the .east o! ment among those having such individual ownership. r.rhere the Volga River. Not more than 5,000,000 dessiatines of this waa developing a sense of pe1·sonal responsibility, · a spirit of were a~able lands. pride and independence; improvements became more pe.rma-

In 1917 there belonged · to the imperial family (Crown do- n,ent, better homes were built, and a general strengthening J

main) only 6,584,928 dessiatines, of which not more thau morally, intellectually, and otherwise was evident. The title 2,000,000 were arable lands, the remainder heing under forests. to all of these lands, by the decree of nationalization, was swept

Not more than 2,000,000 dessiatines of the land belonging to away. Title may not now be obtained by the peasants to any the churches, ecclesiastical bodies, and monasteries in 1906 were land, not even their own homes. Their tenure is ~ precarious arable. Of the 101, 735,343 dessiatines belonging to private . one, depending, as stated, upon the will of the Government. This owners-landed estates-January, 1905; 27,000,000 were ac- fact is an obstacle to lasting and _permanent improvements and quired by the peasantry, or the banks and associations con- ' leaves always in the minds of the peasants the fear that some trolled by or for the benefit of the peasants prior to January 1, contingency may arise which may result in an attempted ex-1916,--and on this date 25,0Q0,000 dessiatines were under for- pulsion from the lands. which they occupy. ests. Not more than twenty .to twenty-five million dessi>i.tines Under the decree of .the Government peasants may not ocof the area of 101,000,000 plus were cultivated by the owneis cupy land, even though possession may be given them, unless it the remaining arable parts being lea~ed to peasants. ' is cultivated. In some instances it was discovered that this

It will thus be seen that the amount of arable land in Euro- policy of the Government had the opposite psychological effect pean Russia available for distrilmtion by the Bolshevik Gov- intended; it did not increase production, and many peasants . ernment to the peasants was not as great as has been supposed. felt that it was additional evidence of the insecurity of their The fact should also be stated that many large landed estates tenure. had for many years been mortgaged. Many Russian landowners My attention was directed to a few-cases that caused consid- · were pl'ofligate and wasted their substance. In 1899 the erable criticism of the Government when it had made allot- • Agrarian Banks of Russia had advanced more than 1,30'0,000,000 ments to individuals of parcels of land which had formerly · rubles upon landed estates numbering 89,084, with a total area been owned or occupied by other peasants, communally or indiof over 117,000,000 acres. Most of these estates were lost by vidually. The unsettled condition of the country or their , their impoverished owners and millions of acres were aeqnireu service in the army, which when terminated did not promptly by peasants and peasant communities. The 11umber of mort- restore them to their former homes, led the allotting commisgages given by the .nobles and landed proprietors constantly in- sions to treat the land as vacant or abandoned, and it was creased, · so that in 1916 nearly 50,000,000 dessiatines were therefore assigned to others. Perhaps such lands had been in mortgaged to the banks to cover loans to the owners, amount- ~.e family for many years; and, as stated, in some instances ing to 2,291,000,000 gold rubles . . The value of these lands was. the land was actually owned by the person who was now de-approximateJy double the mortgage obligations. prived of tbe same.

In 18nl there were 54,150,~00 peasants; in 1Dl6, 100,0l.10,000. The quantity of land allotted by the Bolshevik Government This increase in the populat10n brought the average allotment to the i1easants is surprisingly small. It was rare to find an o~ 11;lnd to the pe~sants from 4.8 dessiatines in 1861 to 2.6 des- allotment excee<ting 3 to 5 dessiatines, no matter how large siatines per man m 1900. . J the family. In some instances the amount of land assigned

I~and reforms were pr_ojec_ted by Stolypin, the great Russian was from half a dessiatine to 1 dessiatine per family. Perhaps statesman, whose assassmat10n prevented the completion of bis the average throughout European Russia is between 2 and 3

7034 CONGRESS:EON _._t\li.i REOORD-SENA~E APRIL 24;

desslatines per family. But small though the area is, contact with the peasants showed that in many i"nstances the entire amount was not cultivated.

The condition of the peasants ts such that, even if they bad t'he will, it would be almost impossible for them to cultivate more. Reference ha~ been -made to their physical exhaustion resulting from the years of undernourishment and hardships. And in addition they have been stripped of substantially all of their farming implements and in many instances are without animals. 1-"'bere are thousnnds of peasants who are without a single horse or cow, and peasants are regarded with envy who are fortunate enough to have two horses. Nearly all horses are small and not sufficiently strong to draw suit:. able plows or heavy loads. The poverty• of the peasants and the primitive implements which they have result in indtiferent cultivation and limited harvests.

Investigations show that in productive parts of Russia the pre-war condition of many peasants was much superior. Many would cultivate 5 dessiatines and collect a harvest of approximately 285 poods. In the same sections, for 1922 and 1923, the average land farmed was 1.8 dessiatines, with a total yield of 68· poods.

There is but little artificial fertilization of the soil, and the importance of fertillzers of any character has not been sufficiently understood by the peasants. There is no in"igati0n1, and tlie limited amount of precipitation in many parts of Russia contributes t()l the uncertainty or the harvests, as well as the small yield so often noted.

There were- some complaints beeanse the peasants were deprived of the. use- or the· forests, which for generations had been the source of t!lefr fuel supply. A few sections of Rnffsia· are supp-lied ' with coal for· domestic purposes, but the forests have been the princlpar sources to which the people have resorted' for · timber fbr building- and farm: uses, as well e.e for fuel. But in very large districts of the agricultural sections of Russia thei·e is but ltttl& timber and' in extensive areas none is avallable. AU fo-rest lands• are controlled by. the state, even those · which were owned by the peaea:nts prior to BoJ.Bhevist nationalization and from· which they obtained their supply o:t tnel~ With the1 mountihg prices of · fuel and th& falling prices of ' fal'Ill' product&. tlie peasants are unaUle to make needed improvementB in their homes and' upon their farms or to obta:tn•fnel 'to meet! the rigors of' the present winter.

The eat:astrophlc decline' tn praductlon· In all' Un.es. of ind\lgtry and tl1e tmpoi:tancei ~ ttlrnishing ere.dits1 or of provi<llng exports toi meet ttnports, Have reduced' the people of" Ruseta1 to · a- most deplorable sttuatiom In thei village91 and all agricultural sectWm11vlmted t.ae• Jacli of dething was, specially notieeable. Practicall~ au d\ltdren were· without shoesi; many were fa rags: which did not conceal thei~ nakedness, and few had' sufficient d0theSt to proteet their tlodies. · Peal!Jftllt"B: often alludM1

to tl1e approaching· winter · and to the fact tliat: they· were withi. out shoes and elothtng 1 fol themselves and tl1eit" fllmilles a:nct :without means·witb which to procure· them. They Tiewed· the' approaching win~ with dlsma-y &nd1 tear. Many peasants· provided ai rude eovering tor · tilielr feet out of vegetable er wood fibel" WC!>'Mlt into a1 moocasinlike folrm. The1 peasa:nte ap. pear.ed to • be huluetlrkllls; although1 there was. a la.ck. o~ system, and, with their limited implements, their accomplishments were not great. They· possess cons:idemble ingeouity1 and with an a-:xi · build structures whicli. iru America would! call for vuioll& kiDt1& af machinery~

Men• and womeni worll! · together tn the fields and onei or· both often sre1 seen• taking1 their limited products to the- cities. Seldom did' I 11ee •men . worlalng upon the railroad! trackS'. The work performed- by! what are known asi " ·section men " tn the United States is usually performed by women. They are often seen ini the cities and towns woitkihg upon streets, repal:dng buildings, and! carrying• heavy burdens.. In the midst of their sorrows• and hardSlrips they seem patient and, indeed, cheerfWi. They manifest devotion to· their children· and are faithful to theirmatitali obligations.

Jn calling attention to1 the· poverty of the peasants and their lack of clothing; it is not intended to · infer that• the urban· population is much better situated. The tact is that in the cities there ls· great distress. Hund.rro's of' thousands are d~ nled proper food, and orphan children, undernourished and without p:rotecilon, nre to be soon in lm-ge numbers, and lack of food and clothing can be found in all pa1·ts and among an classes:

As I ha'fe hereinbefore indicated, the present winter, owing to the shortage of fuel, food, and clothing, will bring incr'edible hardships, intense sutrering, and great mortality, not1 only to millions of peasants but also to great numbers within the cities ancl towns. Even among the peasants- milk and butter ar~

almost unknown, and tlie food provided consists almost entirely o:fl blaelt bread, S1llnfibwer· seeds, sunflower oil, and vegetables. There is1 an enth:e lack o.f sanitation in the rural seetions1 and in most of the · cities. the sewage system is inadequate or im· perfect. OF so out of repair as to. fail to serve· its purpose.

L noted with surprise• the lack of, sheep, hogs1 and• chickens, as well as other domestic animals. In· some parts of Russia the fields· showed intelligent en.re and t:Jbe application· of more im· .. proved methods of tillage, but, generally speaking, the reverse ' was true, and more o:f the peasants' homes were cheaply con· structed and the surroundings drab and1 squalid.

The area planted to crops duning 1923 did not reach the expectations of the soviet authorities. In· 1922, 41,000,000 des· siatines were planted to crops in European Russia ; in 1913 the acreage was 79,000,000 dessiatines ; in 1920 it was less than.. 56,000,000· dessiatines; in. 1921, 49',000,000 dessiatlnes. It was 1 stated in Economic Life, one of the leading Bolshevik papers, that the J)lanted area for 1923 was , upprnximately 42,0001000 ' dessiatines..

Contrany to the general belief, the crop production for 1923 is not as favorable as that of 1922. Russia is exporting some grain, but many facts were brought to my attention which led to tbe belief that the· domestic needs ot the people were such as- to require the entire crop.1

The Commissar of' Agriculture· stated to membet'S of ouT party that the 1923 grain expmrts- would 5e -220,000,000 poods (132,000,000 bushels), but that to export thnt quantity would be "imprudent," and only the " necessities of' the people compelled such· action.'" An interesting statement by the same· official was that the Russian peasants. received but 50 to 60 per cen.t ot these prodnets, the remainder, either in kind or in proceeds, being absorbed in transportation, taxes, and so forth. Up to • October ] of this year there bad been sold of' Russian agricultural produe~ to1 wit, rye, wheat, barley, corn, oil cake, anu otber erops~ a total of 19,500,000 poods. Kallnin. President of the Soviet Government, stated to our party that he thought there would be 300,000,000 poods for export~ In my opinion, based up&n observations and reports of crop Qonditlons, any export of· grain from Russia of the- 1923' a-op Will take from the people what is needed for their sustenanc& and tb •provide snffieient seed for the coming year.

The soviet authorities affected to believe that Russia's~ eeonomie redemption would be speedy as- a , result of increased sgl'icultural produetlon. What I · have stated does not support the optimistic statements so often Fepeafud by Bo1s:b.evi.ksl and· their friends outside '6f Russia. Th'e tact is that the ' peasants. are· in a most critical condition, and their sufferings ,fbr lack of necessities of life< are very great. r

Thei P:ravEia, under date of September 14, 1923, states that cereal production for 1923 will be but 2,153,000 poods-a pood is: 36 r pounds-ft.1 decrease of' 90,000,000 poocrs, or 4 per cent, over the production O'f! 1922. The· cereal production between the years of' 1910 and 1914 in the same area of Russia was· more than 4)000,000,000 poods. In the Economic l...ife f&r· J'anu· ary 6; 19'28, Professor Og:novsky states that the grains and agri.!. cultural vroducts from which· the greatest exports were deri:ved prior tcr the war continued to decrease in area.

The · area: devoted to the production· of' grnlns for local con· stlmptlon has not shown so great a decrease. ID' 1913 nearly 21~000",0001 dessiatines were 'devoted to· tlie growing of sqmmer wheat, but in 1922 only 5,500,000 'dess!atines pro~ced the same crop, rn 1913' more than 9,500,000 dessiatine~ produced bil"ley, while in 1922 less than 3,000,00(J dessiatines werte devQted to the prodnotion of barley. 1

r discovered that tlle yield or- a:gricuttunrI cro1's was lessper dessiatine than prior to the war; anu tller.e has been au unsatisfactory· yield, per· dessiatine, during tl:ie· past few years. In 1922' the average yield of grain per- desslatihe w.m; nearly · 50 poods; while itr 1923 it was estim~ted ai+ less than 48 poods pel"' dessiatine; The decline in the acreage aS" well as in yieldis largely attributable to tlie wealtened physical condition ot • tl'Ie peasants and' to their lack of' agricultural' implements ~ and, as r have indica:ted, there was in many parts of Russia a feeling of uncertainty among the peasants as to the security of ' their land titles. lhdeed, they know they bnve no titleand many labor und'er the al)prehensidn that they may be despoiled of their possessory rights. This feeling at' ihsecurity is reflected in diminished pro1luction and in a lack or energy, as well as in a disinclination to make permanent improvements upon the land. From all that I could learn ih my interviews with representatives of the Government, and' from translations of Russian newspapers such as the Izvestia, the Economic Life, the Pravda, Trud, and others, I feel confident that Russia's agricultural exports for 1923' will' be very- much less than predicted by the soviet authorities.

1924 CONGRESSIONAL RECORD-SEN ATE 7035 The avera~ 8llnual exporta:tions of cereals alone, between

1909 and 1913, were approximately ·soo,000,.000 poods. ln 1922 Russian exports of tlle ·same crops wexie about '25,000;()()() J)OOOs. In my opinimi the 'Rgrieultmral exports for 19'23 will not exceed 100,000,0000 ·poods, and, as I haPe indicated, 100 aecomplish this result many t0f tbe people of Russia have been and will be deprived of bread. Notwithstanding the ilimit.ed 8.gl'icultural production of the Russian peasant, he has been compelled to witness an increasing disparity between the prices received for his prodnets and the manufactured commodities wMch he has been compelle<:l to purchase.

For instan~e, as stated by the Ekonm:nic Life in Us issae of FebruaTy '9, 1'928, a yard of callico, prior to the wa.r, was worth .5; pounds <1f rye 1four. In January, 1923, it ref),uired 18 pounds to imrc'hase '6!'1~ yard, and w'hen I ~ft Russia in October, the prices of all manufactured artides had advanced to a much higl!er level, measured by the value of agrieultnral products. This catastropbic decline in the value of agricultural produets, measUl'ed by industrial cammodtties, l1as ·a most dlspiiriting effect upon the peasimts an<'!. if continued wm result in Teduced proclucticm. The -peaBants content themselves with pro<lucing -0nly sufliCient to •satisfy their ewn needs.

Reference has been made to the helpless eonilition -0f many of the peasants because of the ca1a.mitous loss in domestic! animals. Fijgures brought to my attentfon .ghow that in JDBny ·Of the most important agrienltural sections of Russia the number .of animals found upon the faTms in 1923 was less than 20 per cent of the pre-war period.

I e:dded, nro- will they be, because -0f the very high cost of manufaetured articles.

In the Cossack districts there was marked dissatisfaction with the Government. This grew 011t of the heavy tax.es imJ)osed and the limitation in .acreage allotted to the peasants. ·uader the Czar the Cossacks llad 1.>een fav.o.red and were .regarded as somewhat of a privileged c:ass. 1vlany of them owned the lands which they farmed, and it was Jl(}t uncommon for a Cossack to have title to fr-0m 8 to 15 dessiatines of land.

.Much has been said about the Russian peasant, his melan.choly .Ilature, and his fatalistic . attitude to\v.ard life. The1·e are some who .affirm that the peasants are simple-minded and childlike, free from passion or cruelty, easily led, and dominated absolutely by the priests. Others say that tbey are sullen, rather stupid, but cunning and revengeful, an<l without capacity for lnt.ellectual adwancement.

S,Peaking of the peasants, 1\lr. Norman, the English writer to whom I have referred, say.s:

Their poverty does 'llCl>t prevent tJhem from being happy in tbe.ir melllnicho'ly Bln-v faehian. They ll!i'e in dirt ,a;nd a:re vennineus, yet tlley .luxuriate regRllf' in the rllla~e -vupor baths. mack rye ~read, cabba-ge, buckwheat, mushrooms, and eggs a·re the dlfef items of the mumlk'11 i!a.ne. He 19 a tlnent liar, gene.rally bom amiable motives. He is ·rellgioug bl every fiber &!l hhl ibelug, but his religi-on is wholly of the leltter. He is ·coavinced that tbe iprlest hall the evil eye. He gets "'Wlil.dly dnmk at Easter from joy to think that Christ is men, and llt 'G'ther time& fur no reaaon a.t all. The M>ld!.er, typical of his class, i8 a great cllild utl le treatecil. as nelt

The soviet officials admitted t!hat the taxes imposed upon the This rather unfrlend.J.y view of the peasant fails to credit peasants had been excessive, considering their desperate plight. 1 b'im with many virtues which he possesses. Some homes w.hicb Refer.ence lias been made to the multiplicity of taxes imposed i I entered were found scrupulously clean, though tlle ftirnishln.gs upon them and the growing 'diseontent whieh had arisen as a were simple and of the most .vrimitive character. In every result of their collection. To meet this 'Situation for the present l home visited one or more icons occupied llonored places in tbe year the single rural tax system WM devised. 'Under this sys- 1 most imposing room. tern the tax imposed upon the peasants is to be paid in money, The Russian peasants are a bundle <if piµ-adoxes .and incone~cept in certain remete districts where it may be paid in grain. l gruities. They are amiable and gentle, and yet many of them In determining l:he tax to be paid the peasants are divided into are cruel and insensible to pain, either when sabjected to it nine groups, based upon the number of persons having arable themselves or when they inilict it upon others.. S.uffering does land and the number of animals which they possess. It ls not affect them as it does .some races. nox do cruel punishments stated that ~ tax ·will produce 67'0,000,()()() poods, the highest by the Government or brutal crimes resulting in death stir tax tor any peasant under this system being ·25 poods fJf them. They regard with a stolidity :thnt is remarkable good grain. fortune or· fhe most awful catastrophes .and woes. It is

Mr. Popov, member of the Soviet Central Statistic Depart- ' 4' nitcheva "-"it is nothing," whethe.r it be life or death, su:n

ment, has stated in the Economic Life tbat "uncler the applied light gr darkness. They are emotiQnal, and at ti.mes deeply plan of taxation, and pursuant to the budget for the fiscal year moved by stirring ~peals or religious exllortation, and yet of 1922 and 1923, the peasants will be required to pay more theiy are stolid and aj)parently i11dl1rerent to the most violent tban 400,000;000 gold rubles, and for the :!allowing .fiscal year ('.hatlges and overwhelming disasters. Wblle most o-f them ar.e this wm be increased to 600~000,000 gold rubles. If this be true. illiterate. they possess great mental strength. The texture then the taxes imposed upon the peasants will be greatly in of their brain .is sound and their capacity for int:ellectual excess of the levies made upon them before the war." growth and development .ts extr.aordinary. Their .children

However, in many of the districts visited peasants stat.ed who have enjoyed .opportunl~s !or s.tndy have readily a.bthat the taxes patd by them were less than those collected under sorbed knowledge and demonstrated fine moral and mental the Czar's r~glme. One need not be surprised at' complaints .by qualities. T.hey exhibit a childlike. disposition. .inconsisteBt the peasants of the burdens of taiation when it is recalled in the view of many, with the strong and ,primitive passiODs that, until recently and since the new economic policy has been which they often display. T.o them God is aB ever-pres;ent in force, the BolShevik Government had no source whatever Being, whose all-seeing eye they can not hide from. He is a from which to obtaln revenue except from the crops of the God oi' p_ower, rathe.i: than of mercy-a Being to be propitiated .stricken and starving peasants. by devotio.m and sa.crllice.

Prices of all commodities increased materlall.v during the I ~se _peasru_Us and their descendaia..ts ?old. tbe destll.ly Gf time our party was in Russia. Both the commodity ruble apd RUSSU\ m their hfULifs, and will dete:rmmer if they do not the Government ruble Constantly declined, measured by the 1 Control, the future Of the nations of two- Conti.Dents. gold ruble. Early in August the dollar would purchase 247.- While ther~ is a stro.ug ~atiooal feeling and an ineradicable 000,000 rubles. Prices of many oommodities more than doubled love of RUSSla, there is with many of the peasants :not that in that period. A pair of ordinary sho~ in Moscow brought deep-r:ooted affection for borne whlcb might' be expected. Doubtfrom $15 to $25. Prices in the restaurants and ln the few less the oommunal life, the freguent changes in the spot of Governm~t hotels were based upon the ,gold ruble or <!her- ground which they tfl4 in part account for this trait. .Morevonetz, and the value of all commodities reached such enor- ' over, the squalid surroundizlgs and the temporary character molls heights that the people were plunged into despair. With of so lnany of their homes conspire to develop a roving or mithe increasing disparity between the selling price ef his prod- gratory spirit. Conftagrations are freq,uen.t in the villages, and ucts and the seiling price of all oilier commodities the peasant's 1 it has been stated that more than 75 per cent of tlle homes .of situation becomes intolerable. This will resn1t in serious .dis- 1 the peasants are destroyed by fire every seven years. · Recurri.Jl,g content among the peasants as well as among the people, which famines not infrequently produce extensLve migratory movewill be reflected in snllen hostility toward the Government. ments. The few household possessions and farm utensils -can

I was unable to discover any feeling favorable to the return quickJ,y be placed upon small vehicles which tbe peasants <>wn, of the monarchy. Seldom was any reference made to the :fate ' and within a few bours they start upon long treks with.out cerof the Czar or the whereabouts o.f .any of the royal family. ta.inty or information as ta the road to be .traveled or the The chapter seemed to be .closed. destination to be reached.

When asked whether they were satis.tled with the Bolshevik Many caravans -0f peasants in their battered and: rickety Government, many peasants did not reply. Other.s stated t.hat wag(ms were enccmJiltered iEl the extensive travels of our party~ they did not care what kind o! a government _prevailed if they Men, W<>melly and cllil<h"& wouLd painfully but patiently and oould have peace and reason.able prosperity. President Kalinin, uJJtComi;}lainiugl;y follow lumbering carts or fragile vehicles in replying to the same questio~ stated that he would n.ot say .drawn by 11mall &Dd undernourished horses -0r poi>r .and Wlderthat the peasants were " satisfied " w~th eonditi0ns, .an.d he sized oxen.

-CONGRESSIONAL RECORD-SENATE APRIL" 24

SllLSKOSOYUS (ALL-RUSSIAN UNION OB' AGRICULTURAL COOPERATIVES) AND CENTUOSOYUS (ALL-RUSSIAN CENTRAL UNION 011' CONSUMllRS)

COOPlllRATIVEI SOCIEITllllS

Prior to the war the Centrosoyus was a powerful cooperative society, the · membership of which was reported to have been between 10,000,000 and 20,000,000 persons. This organization combined hundreds of cooperative societies existing throughout Russia and carried on an extensive business in buying and distributing agricultural products and various commodities. It owned warehouses, large supply stations and depots, grain elevators, stores, and merchandise establishments. It also had banks and credit associations for the financing of its members. Its resources went into the hundreds of millions of rubles, and its annual business constituted a very important part of the entire trade and commerce of Europe. Its contacts with the peasants and the inhabitants of the rural parts of Europe, who constituted an important part of its membership, were exceedingly helpful and educative to the people and enabled them to more readily an<.l at better prices dispose of their products and to obtain, under conditions more favorable than otherwise would be obtained, supplies and commodities which were imperatively needed by them.

The value of this great organization to the economic and social life of Russia can not be overestimated. Unfortunately, when the Bolsheviks came into power, the heavy hand of the Government was laid upon this agency, with all its subsidiary branches and cooperative societies, and they were absorbed into the Bolshevik organization and all assets confiscated. It possessed real estate, banks, credit organizations, with valuable assets, warehouses, transportation facilities and instrumentalities, large and small, mercantile assets; but all were nppropri.ated by the Government.

The association was preserved in form, but it became a part of the Government, and decrees were issued which attempted to bring all the consumers in Russia into m'ember·ship in the association. Undoubtedly, the Government perceived that this organization was the antithesis of communism, and that to permit it to function and to preserve intact its resources would interfere with the enforcement of communistic policies. Accordingly, the organization was destroyed and its assets dissipated.

Under the m'ore enlightened policy now prevailing, it fs perceived that an organization of this character will contribute to the economic regeneration of Russia. Accordingly, it is being revived and ls now functioning somewhat along the lines of lts former activity, but greatly restricted and still closely watched, and indeed controlled, by the Soviet Government. A member of the Communist Party heads the organization, and its operations are limited so ns not to conflict with the monopolies and trusts of the Government. It may engage in foreign trade, but only under license and permission of the foreign trade department of the Soviet Government. It may not export or import without such license, and its transactions relating to foreign trade and commerce, whether initiated or consmnmated in Russia or in foreign countries, must meet with the npproval of the l\Ioscow Government. • The Selskosoyus is another organization which is of growing importance. It was organized in 1918 as a purchasing.. agency of agricultural cooperatives. It ls claimed by some of its .representatives that it was the direct successor o:f the goods section of the Moscow National Bank, which was brought into being in 1912. This cooperative society, and such the Selskosoyus is, contains share capital, consisting of the contributions of member unions and of the members of special centers of agricultural cooperators. It unites or coordinates societies organized in districts and in gubernias in order to combine the purchasing functions of various agricultural cooperations and associations. and to organize for the sale. of agricultural products and procure funds to supply credit to · the entire cooperative agricultural system. In its earlier days it exported agricultural products and imported agricultural Implements and other commodities required by the business of Russia. During the war it was practically in suspension.

The Bolshevik Government, in 1920, transferred its moribund form to the agricultural section of the Centrosoyus, but In 1921, following the promulgation of the new economic policy, the work of regenerating this organization began. In January of this year it had a membership of more than 2,000,-000. and combined hundreds of local agricultural cooperative societies. Up to October 1 of this year its foreign trade amounted to 5,800,000 gold rubles, and it is expected that for 1924 its foreign trade will approximate 25,000,000 gold rubles. These cooperative organizations I regard as of great importance In the restoration of Russia; and if they are emancipated from the domination\ of the Government they will be a potential

force for the economic rehabilitation of Russia and for the development of a spirit of freer trade and unrestricted intercourse among the people of Russia and with other nations. There are unmistakable evidences that their vigor and vitality and influence are increasing. They constitute one of the most hopeful signs which I encountered for Russia's expansion and industrial and political freedom.

RELIGIOUS SITUATION AND TIIE GllEl!lK ORTHODOX CHURCH

The religious and church question in Russia is a living and vital one, and no study of Russia is complete without an in· tensive investigation of the Greek Orthodox Church and its relation, or perhaps it should be said the relation of the Bolshevik Government to it. •.ro understand the Russian people one must know something of the Greek Orthodox Church and its influence upon the history of Russia as well as upon the lives of the Russian people.

Long before the Roman Empire was divided into the East and the West, religious differences arose between members of the Christian· Church who lived under the civilization ot Greece, and those who looked to Rome for political as well as intellectual and religious guidance. The church at Rome had a legalistic viewpoint and emphasized the question of authority. The East regarded Christianity as a philosophy to be comprehended. The contemplative and devotional side of religion was emphasized by the East. These differences became so acute and were regarded as so irreconcilable that the church divided into the Roman Catholic Church and the Greek Catholic Church, one with its seat at Rome, the other at Constantinople.

About the year A. D. 868 Christian missionaries, Cyril and Methodius, entered Russia, which at that time was pagan. Later Vladimir struck down the image of the powerful god Peroun at Kiev, and warriors and people went down into the waters of baptism, forsaking idolatry and entering into the Orthodox Church. From Kiev the faith and creed of the church was carried by priests and monks to all parts of Russia, and constituted a gravitational force which drew and held together remote peoples and nationalities and constituted the most potent power in creating and developing a Russian national spirit.

Tartars and Mongols came out of Asia and overwhelmed the Slavs ancl remained in power for two centuries. Under the Christian banner Russia between the days of Vladimir and the Turtar conquest had made industrial and intellectual progress and had advanced in culture until it was the peer of most counh·ies of Europe. But with Asiatic control Russia was cut oft: from the west and from the civilizing forces there so rapidly developed and applied. The fiery zeal of the priests and prelates of the church armed the Russian people, who drove out foreign invaders and repelled their succeeding assaults. The priests became pathfinders and pioneers. They penetrated steppes and deserts and forests, founding monasteries and building church"es and gathering around them small bands of people, whose numbers continually increased. Thus villages and communities and cities and Provinces were founded. But also there was the religious impulse and the thought that they were one people with a common destiny, bound together by the same spiritual ties and entitled to the same communions.

When enemies were met and battles fought, priests carried the cross and inspired warriors to heroic and valorous deeds. Ai the power of Russia grew, the influence of the church increased. A patriarch of the church was more powerful than his son, who was a Russian Czar. With the death of Patri· arch Adrian, Peter the Great refused the selection of a successor and provided for the administration of the affairs of the church by a council called the Holy Synod. This gl'eat ruler sought to· curb the power of the church, and required the bishops to recognize the difference between the autocratic power of the Czar and the ecclesiastical authority of the church. The eastern patriarchates finally recognized the governing synod which had been established by Peter the Great. The ol>er-prokuror appointed by the Czar in effect became the head of the church. 8hielded by the head of the state, he exercised supreme authority in the church. He named the members of the Holy Synod and bishops and other ecclesiasts. So powerful did he become that he often influenced the affairs of state, and constituted a danger to the peace and welfare of the people. Nevertheless, the church, as indicated, had developed a national spirit and had welded the heterogeneous and discordant elements, tribes, and people together, as a result o{ which the foundations of the State were strengthened.

And the church was an important factor in developing architecture, music, painting, and other progressive and educational forces which slowly but effectively advanced Russian civilization. The church established schools in villages. cities, and

1924 OONGRESSIONAL REOORD--SENATE 7037 towns, and maintained theol@g!i.ca.l lllliversities and .schools in which Greek, Latin, and Hebrew were taught, as well as law and histol'y and science and all branclles of :knowledge that were taught in the leading universities of Europe.

Mally i0if the priests going ft,om these ,universities wooe men of great learni.mg. but the procedure of the church and its dev,0-tion to th~ creed mid liturgy and cer.enwnials hanood down from past ~enturies :arrested their intellectwtl develo:pmeE.t and pressed .them iruto an uni-esponsive existence.. The ecclesiasts were scrupulously obsEll'-vant of the fo.rms of the ctuwch :and attended with -meticulous care to the .services--beautiful and inspiring as they were-but whieh cllanged not with ilhe passing years and centuries.

The intellectual :needl!I of the "People were not provil.ded for by the church. It is true the village priests, most of whom we11e ma-rr-ied, entered more or ·Jess in.to rth.e lives of the pea:sants, btrt their poverty aud their limited educatic1m .and their nar1,ow outlook •up<m life i:n.acilequately prepared .them for so.ciul service or educational activity.

The ch'lirch eooonra~'ed the 'Wo:rehip •of Telles, 11nd in many of the cl:a.urd1es the remains ·of -eminent ·saints iand pious priests were preserved, and peasants frrn:n far and near visited them to pay homage to these unburied figures. It wa-s claimed that decepti@n wa·s •praetieed and tb:at many of the shrines and caskets aUeged to be tbe Tooeptacles of sacred relics or the bodies of holy men eontained '!lothtng but ~ or shapes ·of wood. A caste system grew up m the ehurch which was encouraged lly the Czar; ,and under the .direction of tbe Ober-prokuror, who was tb~ C'l"ee:tm.'e of the monarch, the .chu.reh became a power-fol prop •of tbe Czar and ·a def-ender .of his polieies.

fi()wever, a~ stated, many schools were •egt;abli:sbed ·and conducted by tbe 'Priests am'.l their serviees :l'e<luced the illiteracy ttl:l."Q'Bgbout the Empi11e. The state made provision in its annttal budget for support of thei iehuTeb. 'This close union, di. necessity, bl'ougbt 1:he ·chur~h t<> the 1mpport of the politiea1 policles of the Government. Political reforms ·sought by the JteOple and GPP<>eed by too Government Tikewise met the oppos'i.tion -0f tbe ·-churcb. The ehmcll became, therefore, the defender <Jf repressive ·and Teaetionary pdlfoies '@f the .Czars, ·and it was allied to the nationalistic spirit aud zealously supported e!Jl imperialistic pvllcies -Of tfhe govermnent.

When the ·Czar was overthrown the clrurch was bewfideired and ·seemed inea-pa'ble of a-djusting ttsclt t-o new conditiens. !Fhe Kerensky ~ernment aboll::!!hed ihe 'Offiee of dbei"-prokuror but created ·a "'Minister of Confessions," who was to protect 1:he interests of all retigiuu-s faiths, with no ·preference to tbe, Orthodox Olmrcll. A -deeree was ,fss\l'ed closing an paToc1l:ia1 ~boot@ -and plaeing all educatimia1 in1.11tff!tntions· under the Govermnent. 'In lanuary, '1918, '8.frer the Bo1S"beviks seized the gov-ernment. a t'.leeree 'dec'hu•ed the church and state separate ana forbade furttier aid in support of ·the cbureh. The annual eentributions given 'for support of the ebnreh in 'fhe fatter yea.Ts <:If the .Cmr'!! reign appr&-ximared 100.~,006 rl:lb-1es. Under the Kerengky re1gn ·a general council of the etmrch ·was ealred, the fii-st in 200 y-ears. To this couneil ·eame bishops and -cl~gy nnd a1'so llaymen, the fatter exceeding 'in number the form·er.

This eoruf'erence was what m.ight 'be called the eonstituent assembly of the ehm'Ch. It was .Provided that the seyreme 1;rower of the dmreh -should be wested ln a Sobor or General CJQnncil, 'Which f!holild :meet at 'fixed intervals and which sbt1tuld be eompesed of laymen and ecclesiasts ·of the ffiurch.

'File patria:rd1at-e, which llad been .abolished, was restol'ed, and the ho:ldei' of the title 'Of the offi.ee ·was 1oonstltuted primus hl.ter paTes ~f the ebureh 1eaaers. 'The Paltriairch of M'<>scow was named as •the ~eeutive 'head -Of the ebure11 ·and intmsted with the ·authority -to Nprresent 1t. Two ·~ective b0dies were provided, knO'W'n as the Holy SynGd and the Supreme 0htl'rcb C6tin6il, the former ieonsiBtiing -0f the pattia:rch and 12 'bisllops, 6 chosen by the sobor and 5 others, 1 from each of itbe {) districtB into whieh Russia ·is <llvided, f-OI" tbe PUI"J>OBe <if cln1'I'ch g~nment. The .synod's W-Ork relatei> ratner tt-o tne discipline till!. the chm·ch; and the StJpPeme CO'UDcil, consisting ·of ·g 'bishops ell-Osen from 'its members, a members (l)f tbe lower clergy and 6 laymen. and '8. monk ~oted by .the Sobor, CQJ),trols .tlle ·business autt legal trlt'airs 0-f the eb.Ufleh.

At thi1!1 ·conifere.nce some ~oMemen and bonrgeoise 1attended, ha vtng been selected U!J!lder 'the earums .of the «~hul'eh. "1'be conference was composed 9f moy able men, ·who app11ooiated that reforms must be made ·11111. the clunda, and that it must aeeommodate itself t1> ·new oon.4itions a:nd be fteKible -enough to meet the llOlitioa.l :and i!ocla.1 Te\"olutlion 'Wkiclt had -ooe.u:rred. A liberal progrnm was p.rojeeted, but betoce its eK1')Cution Ker.ensky was nvertlhoow11 filld the Bolsbe:viks e.a:me ·lnto pow:er ..

Duning the oon:fiemnee ithe libeml 11nd ::ueact!ionacy tendencies b the dm1·eh 'Wt!lle •ntteat, Dwt ilDe tarp aumber ~ ~1a~

toget;bei· wlth 1the ,enliighte11led we:ws of .o. majorii?y of tt!he clergy, resttlted in the adoption of ~a program rfor the zchurl"h calenlated to 1effect reforms. Tber.e w.ene .tih6se who <?cm.tended for the .old 11.Wninisttative and 1proeedural system ·witll -too po~er in the ruling lriei:ar.chy. The majority ,of the conference u demanded greater dem«racy hi tJbe management ~f the church and run .e:rcpanding p.oliiey w:hicil w.orud emphasize the spirit of service as tbe ·vital >f-0roe in the oQIIlIIlunity and -socia:l life .Qf the people."

'l.lhe ccm1pr~mise a.greed upon protects the ·clergy nnd -all legitimate a:nd proJJe.r xights, but democratizes the elwl'<fu and places in the hands of laymen the control of· the :general ·Oouncil_,the governing a:ntl l{lOO.trolting ibOO'y 0f the .obureh. The system •Of local :self-gcwermnent was proviided -for each 'diocese, and these looal 1&r.ge.mi21ations are likewise 1de:mocratic in forma-tion, tile laymen of 1the diocese being !in ·the majority. -

"AB d.mportant ·ehange w.a-s also made in .tlhe ·method ·o.f seleoti:Eg arehbisheps. There .had lang been a eontr-ovem;y .between the monastics and the married .clergy, ·because the .higher membel'S oif ,the clergy wene iexclusively taklen :flrom ;the ni.Ollastic branch of itbe cler.gy. Under the new rule -the-y may i>e .selected rrleo from the married clergy or iliaf!J:D0ll. Und@nbiedl~, 1'the admission to the al'dti.episoopal 1oftiees af memberB of tlle rwhite eJergy wts an importnnt e.tep Jn the :diTecticm .Uf 1ibera.lism in th~ -church."

The ;mMdf-est purpose cxf the •OOmmlIIli-Sts to ·deat:roy :the OOU>~dh ant~ extirpate i·eligiion ;created a 1'eactio:n wlthln .the .cbur.oh. Mruny of rtbe -eolIB'.l'.lml!tsts, heat-ad .amd maCle mooo tfn:nrutioaJl by their ·~too.-y, aBBailed mth •great bitterness the ·chl:U'all and ·its leaders, and a vowed their purpose to .take •Ov.er Jtbe ·Chmrches and convert it hem dnto commnnist .. and lWor:ki.nwnen~s .clubs, into schoolhouse$, ·and, m some ms.tanees. into places of :amusement. These W!lsauats, ~gether w.i:th fthe atheism .of the aommuniBts, dt•ew itbe clengy .and the 1ai.ty itoget.he-r in a ·de:feneiv:e tJttltude. •

Undotrbtedl'Y Tichon, the head !Pattio:rcbate of Jthe ehureh, :u well as many bishops and priestE, !bel:isved ltha.t i&Jshevism was ian ephemeral thing and ;woudd tioon pass away. Some 1ot the priests, wlren cilvtl :war 1ceme, 11ook sides With rthe !for~ al"!rayed :aga!irult the iB.Olshevlks. S€lllle -0-t ft!lem :went ;with itbe arnni~s <Of Kolchak .and Deni.kin and Wmangel, as •CJl:<l .large num-beM of the Russian pecikple themselves. IDbonB8:Ilds .ot :p.rieKts were arrested :by the B.olShe:vtks, mftlly -were ex-ecute~, gneat number!s iimIU-..i:•mne.d, .81Dd Y.ery llllaD!J' drh:en into exJille. Soone .fled trom ;Russia ;asd 'Still ttemain in fmreign ilands. There are n0;w Jn Tullkiestnn, ll.rchangel, .and ~er par.ts @f Russia ma.ny pdests 0rdered t~ these w.arious places by ~ Bolshevik GG<vernment. Scmie are iin iprisans, .otllers have B.Om.e liberty., but .are ·unid.er restmint and forbiddelil to return to fueir crespecti:ve .homes. Aiccuna.te infw:-matiion •as t~ rthe .Dumber iof :priests executed ·was not .eb:ta.ined. :Some wbo were JmstUe to the eoonmuniBts ~tated titat mruzy ,tbousands -~ere .~ecn~d. :A number of pr-l$tS, some of ·:whom wene An -n position •te rhaive ra

· fai:i:Iy aoeW!ate !knowledge, il'~Qilted rthat the .nmnber exceedetl 3.,00Q. The Smet t(3-(W.6Dllm~Irt admits !the 1execution ;o:t more than 1,200.

A.t ·this ;point lit ma~ inat ·be inappa.qiriate to report that priests of the Roman Catll.olic -Dhlu:eh •were else •eixecuteGl, some erlled, and ~thers imprlsoned.. Alrohbislrop :Zepilack, -one 1of :the most ·distinguished BonlRlil Catholie prela1es :.in Russia 'lVJlS ar:cested, as -was .al'3o .Arochbisbop Butkiewicz, 1J9lh() twas 11enteneed to de.at:b. The .senteJilae !Was caIYied Jinto teffect. Ardhbishop Zepilack'.s ·sentenne -was coIDmUterl to il.6 ltears' ,solltacy con:finement.

lfue &lslle.vi'k pere.eeutions o!f the ·cblJ.tteh -00ntinue4 ·with ·Un .. abated .vlgor until a:t .last the peasants became exasperated and assumed an attitude "Which ·caused the lBolsbeV'iks to fea'f n revolt which :might topple o.l!er their ·Gov.er.nment. "il'hereupoo a change in policy w.as .adapted. .Ch\'l!r.ches which ha~ beer. seized 1We:re Teetered and some •which had ·been -elosed wePe reapened.

:But this ·situation . J.n 1tl1e chureh became ,mo.re 1eonfused tllt'e&'ilenmg its onity and .its .strengtlh. In ilbe ·meanf'une '!'Wh~ had :been :arrested and ·this iaeit .had been poo\locati:ve of an ,01Jt. burst of religious fervor in all parts of the. land. 'The ·116-actionary forces within '.the church ola:ng tenaciously t0 the old formula e.m.-d seemed unwilling to DeSpond ltJ0 what obviously the changing cmditions :demanded !for the l)eople's welfame and -for their -splritnal ·development.

!Mruny priests 800 ,eoclesiasticail :leaders, iooving '81'.lff ered :tlrom a:rmest and fearing fu.rlber ·auests .and punishment, dar.ed not or, at least, 1lid iD(J.t;, ·take 1st.eps !ta meet the aotiv-e pro:pagUJld~ O!f the Bdlshev.iks agejio&t ·i-eligion ·and in behalf of atheism. For ~a per.led :it k>elle4 as :though the iChu'l'Ch was paralyzed and -CQUU ·not meet 1ts .powerful :and :vJ.gor~ms enemy. ·Many 6f ~ pritBts fMel!e dlasatyfled w.lth tthe :Stat.le mid !reaatienun.-y

7038 CONGRESSIONAL RECORD-SENATE APRIL 24.

atiltude of the church hierarchy and agitated for reforms in church procedure, if not in doctrine. This liberal movement gaineu considerable force and added to the confusion in the church and to the· perplexity of the people. The antireligious activities of the Bolshevists, together with the poverty pf the people, led in a number of places, particularly where the people were workers in factories and large manufacturing plants, to the closing of churches. Many priests, having no means of support, were compelled to seek land in the country from which they might obtain bread for themselves and starving families. There is still great poverty and destitution among the priests.

Tl!e Bolshevik Government has forbidden any religious instt·uction whatever to persons uncler the age of 18 years, and priests, both of the Roman Catholic Church and of the Greek Orthoaox Church, stated to me that they dared not visit their parishioners, particularly where there were children, for fear that their conversation, no matter how guarded, might be construed as having a religious tinge.

l\luch has been said, and much might be said, about the great number of churches-perhaps too many for the present needs of the people-their architectural beauty and the richness of their interior decorations, and the fine paintings found therein. Many of the churches, particularly the smaller ones, were ~rected by individuals. Rich landowners and noblemen would often build churches for their own families or for village communities, and it was stated to me repeatedly that much or the so-called " church treasures ,, the icons, the gold and silver vessels and the altars, were the gifts of the people and not the result of appropriations from the Russian treasury.

During the famine, the communist government ordered that certain treasw·es of the church should be delivered over to the GoYernment to be sold to purchase food for the people in t;he famine-stricken areas. This order was opposed by the church. The value of the ornaments and other church property which the Bolshevik Government ordered seized was greatly exaggerated. Reports were common that priceless jewels and vessels of gold and silver and other personal property. were in the church, and that their sale would bring millions of rubles. Information was lacking as to the value of such church property, and also what was actually seized and the value of the same. A number of persons stated that it did not exceed $25,000,-000; some placed the value as high as two hundred millions; others reported that the property seized was more than that sold. and that no accounting had ever been made by the Bolshevik Government. I was informed that the Roman Pontiff advised the Bolshevik· authoriti~s that the Roman Catholic Church would promptly pay in gold to the Soviet Government, to be used to purchase food for the Russian people whatever amount a Bolshevist commission should determine was the value of the jewels and other property subject to seizure. No reply was mnde to this proposition, and the Catholic churches were invaded, the same as the Greek Orthodox churches, and gold and silver vessels and other church property seized.

In some churches, both Roman Catholic, and Greek Orthodox, the priests, and in some instances the people, o:ttered either passive or active resistance to the soldiers and officials who entered the churches to- seize and remove the so-called church treasures. In many instances priests were wounded and some were killed, likewise some of the people. Many arrests of priests followed the execution of this confiscatory order.

Tichon, the patriarch of the Greek Orthodox Church, reported to the Bolshevik Government ·that the church would surrender the property called for without protest, providing a committee were appointed upon which the church should have representation, to inventory the property taken, determine its value, sell and dispose of the same, and control the distribution of the funds derived therefrom, with a view to securing the best results and obtaining and properly distributing food supplies to the starving people. This proposition was rejected. In many churches, where the clergy belonged to the extreme liberal faction of the church, no trouble occurred in the seizures of church property.

This episode was inade the occasion of further attacks upon the church by the ruling power. It was charged that the church was hostile to the Soviet Government and therefore, counter-revolutionary. Any antirevolutionary movement brings upon the heads of those charged therewith prompt arrest and frequently speedy execution An expressed disapproval of the Government or its laws or policies is regarded as antirevolutJonary, ana. often brings swift punishment upon the o:ttender.

During this period, and fo!Jowing it, many of the communists increased their activities against the church. 'rhe young communists and other elements attempted to break up meetings

and exerted their efforts to bring religion and the church into contempt. All church property had been confiscated, even the church buildings and cathedrals and the ground upon which they stood.

Taxes were and still are imposed upon the buildings, and vexatious regulations often imposed, calculated to embarrass the priests and to close the churches. With no means whatever of support and no funds with which to repair the churches, many of the priests were found in a most desperate plight and some of the churches were closed. I might add that numerous beautiful and imposing churches will soon, because of deterioration and lack of needed repairs, be unfit for service and unsafe for occupancy.

In the meantime and within the church there were manifestations of revolt against Tichon and the controlling church authorities. Some priests took the position that the revolution must be carried into the church, and that the reforms provi<led for in the general conference of 1917 were wholly inadequate. Factional strife developed among the clergy. The Bolshevik Government was quick to take advantage of the situation. It encouraged the liberal and radical forces in the church and aided them in securing greater power.

Many priests who were timorous and believed that the Bolshevik Government was supporting the radical movement outwardly gave it support. This movement. became more formi<.la ble and finally a conference was called for l\Iay, 1922. The Bolshevik Government actively supported the project and assisted the liberals and -radicals to control the conference. Accordingly many bishops and priests were arrested and imprisoned or exiled to various parts of the country and other persons, in contravention of tlle canons of the church, placed in their positions. In many cities and villages meetings of the congregations were called to elect dele~ates to the conference, which the so-called reactionaries in the churclt opposed, and the calling of which they declared to be illegal. In some instances the people, bewildered and often frightened, assented to the demands of the radical priests, an<l <lelegates-including such priests-were chosen to attend the conference. In other instances the opposition was so great that the meetings adjourned without action._

Notwithstanding such course, the radical priests would convene a few of their followers and select delegates, giving credentials, · proper in form, to those selected. In some instances representati>es of the political department of the Government-and it bas many thousands throughout Russiawould intervene in behalf of the movement. The idea was disseminated that the Soviet Government was supporting the new movement and that opposition to it would be regarded as hostility to political authority. . Many priests refused to call meetings or to take cognizance of the movement. In some instances meetings would be called, of which a majority of the members of the congregation had no notice, and ·delegates elected to the conference. The result was that when the conference was opened in Moscow most of those in attendance, both priests and laymen, belonged to the so-called radical or reform wing of the church, or at least represented the revolutionary movement in the church. Some who appeared as bishops had but recently been appointed, their appointment being under the rules and procedure of the church illegal. Some laymen who were delegates to the conference were either communists or in sympathy with the Bolshevik Government. There were many in the conference who were actuated by a sincere desire to effectuate reforms within the church, to detach it in part from the old spirit of formalism and to make it a more active force for righteousness and bring it more in harmony with the socil!l and intellectual needs of the people ; and notable prelates were there, some who bad journeyed far to aid in what they believed to be a spiritual awakening in the church.

Bishop Blake, from America, addressed the conclave, delivering an impressive message. The conclave proceeded to e:ttect an organization which bears the appellation of " The Living Church." The movement was equivalent to a secession from the Greek Orthodox Church, although, perhaps, some participating in the movement, as well as others who have followed it, regard the new organization as in reality the old church revivified and stripped of some outworn dogmas, church procedural forms, and nonessential features.

The fundamental doctrines of the Greek Orthodox Churchthose dealing with the Trinity and the vicarious atonement ot J"esus Christ and others-were not renounced or departed from, and, indeed, so ·far as I was able to discover, the liturgy and church ceremonials and form of worship were adhered to.

The rise of the Living Church following this conclave was greeted with considerable enthusiasm in some parts of Russia.

1924 CONGRESSIONAL RECORD-SENATE 7039

Many priests believed that the Bolshevik Government was sup--1,orting the Living Church and hastened to attach themselves to the movement.

Members of our party visited Krasnitczky, the head of the Living Church, soon after their arrival at Moscow. With him was Lvoff, who had been the last procurator of the church under Kerensky. Krasnitczky declared with great assurance that the Living Church would triumph; that in many of the cities a majority of the priests adhered fo it, and that in the villages a large majority of the priests, as well as the peasants, were following the Living Church.

Speaking of Patriarch Tichon, the bead of the Orthodox Church-who had but recently been released from prison and was under surveillance and forbidden to depart from Moscowhe said, " Tichon is extinguished." He exhibited an arrogant and rather bombastic attitude, and asserted with evident satisfaction that the Living Church had the moral support of the Bolshevik Government. He exhibited a photograph of himself taken in the uniform of a captain in the Red army and seemed proud of the fact that he had served in the army. He announced his belie:t: in communism, and in reply to the question as to whether he supported the program of the Third International and its avowed purpose to destroy capitalistic governments, including the United States, he frankly answered that he did. When asked if the Bolshevik Government was carrying on a propaganda against religion and in behalf of atheism, he replied in the affirmative, and also said that -it was teaching atheism and communism in the schools and building up a strong young men's communist party. When asked as to whether the Living Church was doing anything to neutralize the materialism and atheism being taught, he replied in the negative, stating tllat it had many problems and had to consolidate its gains before it could engage in that task.

The members of our party visited Patriarch Tichon, the venerable prelate, whose sincerity and devotion to the chmch none could question. He spoke of the schism in the church but believed that in time, through mutual concessions, a union would be effected. His statements indicated his grief over the religious situation in Russia. He referred to the bewilderment of the people because of the controversies in the church and. the activity of the agencies which were trying to destroy the religious faith and bring about the destruction of the church.

. He referred to the destitute and starving condition of the priests, the fact that some of the churches were being closed for want of support and the poverty of the people, and the general confusion and demoralization which existed in the minds of many regarding moral and spiritual values.

In many parts of Russia inquiries brought the information to the party that some of the priests with their congregations which had a few months before followed the Living Church had returned to what they denominated the " Tichon Church," and the statement of Krasnitczky as to the success of the Living Church movement was not verified. Indeed, the great majority of the priests and the people in the villages still clung to the Orthodox Church and were grieved at the Living Church movement. In the Ukraine, which contains nearly 30,000,000 of people, a majority of the priests adhered to what some called the Independent Orthodox Church. Conference with the metropolitan of the church and other prelates led to the opµiion that only in the matter of lo.cal church government was it to be distinguished from the Orthodox Church. Indeed, its creed and liturgy and ritual and symbols are the same. The priests, generally speaking, were superior, intellectually, to those in other parts of Russia. They seemed more alert and mentally active and more alive to the responsibilities of the church as well as the obligations resting upon the clergy.

There were, however, in Ukraine a number of beautiful church edifices which were controlled by followers of the Living Church. In some sections information was obtained that the G. P. U. (that is the representatives of the political department) were submitting inquiries to the priests, asking whether they belonged to the Living Church or whether they were supporting Tichon. It was pitiful to see the distress and bewilderment upon the part of some country priest.s. They seemed to be sheep without a shepherd. Not infrequently priests would draw aside a member of the party and inquire as to the condition of Tichon and whether he and other prelates were arrested and whether the Living Church was gaining ground. Many of them seemed to be without contacts with archbishops or other prelates. They were left with rumors and fantastic stories about Russia and seemed to have no means of authentic information either as to the condition of the church or what was going . on in other parts of Russia or throughout the world.. ·

LXV--444

In various parts of Russia I learned that priests .were still ·being arrested and some banished. In one city a priest was arrested, as it was claimed by his friends, because he had called the Living Church the "Red" Church. Many acts which to persons outside of Russia would seem quite innocent are regarded as counter-revolutionary by the political organization, which has its spies and agents in every part of Russia; and, accordingly, . arrests are often made for alleged counter-revolutionary activities. In Tsaritzen the evidence which I obtained showed that 11 priests had recently been arrested and were in prison, no sufficient explanation being offered for their arrest. Devout members of the Orthodox Church declared that many of these arrests were for the purpose of strengthening the Living Church and disintegrating the Orthodox Church, and that the Living Church was subservient to the wishes of the Bolshevik Government. There is much evidence to support the view that the Bolshevik Government is equally hostile to all forms of religion and woulcl as quickly oppose the Living Church as the Orthodox Church if it regarded it as a continuing and vital force for religious thought and development.

About six: weeks after the interview with Krasuitczky, above referred to, he was arrested by the G. P. U. without warning and banished from Moscow. Inquiries failed to elicit the reason for such arrest. But it confirmed the information brought to my attention, that the Government will raise up and then destroy church prelates, whenever by so doing it can affect the unity of the church or weaken its hold upon the people. Schisms in the church are fomented by the soviet authorities for the purpose of destroying the faith of the i:eople in the doctrines of the church and in its administrative and priestly bodies. It may be that Krasnitczky after being sufficiently punished by the Government will be reinstated by it.

Efforts were in progress in the latter part of September to compose the differences between the Orthodox Church and the Living Church. I conferred with a representative of Tichon and with some of the highest prelates in the Living Churct1 and learned of the negotiations and the obstacles which werP. being encountered, some of which it was alleged by the prelates seemed insuperable. .

However, the representatives of both -factions declared that the church would not disintegrate or be overwhelmed with confusion, that the Russian people were naturally religious and devotional, and that centripetal forces, both in the Go>ernment and in the state, were strong. The general view was that a more liberal and progressive spirit would enter into and gui<le the Orthodox Church and that eventually the two factions would be uniteu upon a platform that would preserve the essentials of the faith of the church and give to it greater vigor and power for righteousness and capacity for real service among the people. Leading prelates of the Orthodox Church confessed that it was not sufficiently responsive to the needs of the people and that it must accommodate itself to the new social and political order. It ha~ been charged that the Greek Orthodox Chui·ch is as rigid ·as her icons, which do not speak or morn; that her dogmas do not change; nor is her form or spirit modifieu. Whatever view may be taken no one can examine the cree<l and the work of this great church without being impressed with its devotion and its ideal of holiness. The statement of Mr. Donald A. L9wrie, a brilliant writer, who has in Russia examined with fidelity and seriousness the history and structme of the Orthodox Church, presents a view which to many will prove most illuminating and helpful.

If religion consists wholly of spiritual worship, adherence to belief in ancient customs, reverence for holiness in every age, and n sincere desire to spread the nnme of Christ, then Protestants have nothing to tench Russia. But if it means a growing activity and a service of mankind, a keen apprecin tion of the needs of modern life, and a desire to educate its youth to minister unto the future, . then Prote.stantism has a message to Russia. In Russin there are Byzantine elements in re· llgion, emphasizing the mystic In the teaching about Christ. This idea should, perhaps, give way to that of joyous activity and the sense of blessedness of Christian service and the reality of the personal com· radeship of Christ.

That statement is pregnant with meaning as to some of the aspects of the controversy between the Living and the Orthodox Church.

That the propaganda for atheism is having its effect was conceded by all. The students and the members of the workmen's organizations are the most fruitful fields for materialistic development. Among the peasants but little progress has been made, and in my opinion but little will be made.

Mr. Lowrie reports an incident which occurred in 1919, which reveals the nature and effects of Bolshevik propaganda at that

7040 CONGBE&SION Ali RE00RD=--SEN.ATE APRIL 24

time. In one of the cit:i:etl tile soviet officials ealW a meeting to- discusSi religion,. to which the communist leadersi and priests were- invited. One ot the Bolshevik speakers explainedl- · tt\e Cbrl.at myth, attempting to gliow that the Sa-vlor- was but a man and .l'wd not been resurrected'-

And concluded his speech by declaring that-all superstitions cona&ning ©lrist should be put away

And shouting-

sharply- drawn, and in Provinees such as Kazan. wh,ere there are large nmnbers of Tartars (hearly all of whom ai'e Mohammedans) intermarriage.s are exceedingly rare, and social intercourse and a:ssociatron is limited.

The• minarets gUsten in the sunlight side l)y side with the rich• domes of the ortno<aox churches, and wfiii~ the Mussurman is: at prayer under the minarets, devout Ch:rlsUans cross themselves and make obeisance before icons in ehurches over which golden crosses resplendently shine.

There are 2;000,000- Roman Catholics within Russia', and the Ion~ live the Communist International. greater portion of them are of the· PoHsh race. 1nquiries

TLl.ere wa.s libe:i:al applause-. A J"ewish spea.ker· attacked tl\e seemedt to indfcate that the membership was not increasing. stories cooc.erning-the birth of Christ, and in conclus-i6.n dcclu11ed There are• several hundred thousand- members of the Baptist "tllat Ma:ry was l>trt a woman- of the streets.'~ There was Chtrrch and perhaps a million persons who belong to other less applause. A priest then arose, standing· silentl'y before the Protestant denominations. Various other sects which broke oft people, and made the st.,"11 of the «ross. It was Easter week; from the Orthodox Church exist, tiut their adherents are few. a.nd the priest pronounced 1:be Easter greeting: "'Ch=rist is rfsen.'' A numBer of representatives· of the Y. M'. C! A. were actively The multitude swayed toward· him by waiy. ot· reply, and sai'd\ engnged ih religious and charitable- work prior to and during. " Jfle is risen indl!ed." 'l'he p11iest repe31ted, " Obrist is risen,'' a portion of the ci'Vil war, but it was claimed by the' Bolshevik an<.1 the people again responded, "He is• risen• in~leed." Agu.in Government that they sympathized with and were found in· the tlie priest repented "Christ ts· riMn, .. and with a miglity re- White armi€s, and' 'aUI members of the O'l'ganization were o~sponse the a.udience replied, "·He is risen indee(J. ! .. ·~What dereU. to leave Russia. This ' organization is rendering impor ... mo.i:e is there te say? Let us to our homes,"' aBSWel'ed the tant a:i'd to young Russian students who are in Germany and priest after ai moment of silen<~e. Thus end'ed the meeting. Czechoslovaki'a, and who are without means of support.

During the spring and summer of' this year Vellensky, one A careful review of the situation in Ru:ssia convinces me gf' the brilliant leaders of the Living Church· movement,. d'eliv- than the antfreligious work of the communists and the Bolered· lectu.ces. in. vnrious parts of Russia. Whil~ defending shevik Government will not be suceess'ful in d~stroying religion the Living Chmrch and its• program, be lifted his• voice against 01' the Chfillches· there found. The opposition of' tl1e Government atl1eism and rlefended1 the funrnnnentals ot the chm·ch. On to religion will prod'a:ce there, as it has done in other counone· O<!casion, in a debate against two communists, the former tries and1 in other days, a: reaction which will develop str.ong defending tlle existence of God. and the Iatter speaikers denying defendeI's of' the faith and' of the religious ideals of the-people. it, the audience go.ve greater applause• to Vedensky. than to La.lTge numbers of people have been weaned nway from the the communist debaters. church ; many more will follow them ; but Russia wnr remain ' Instan.ces1 are not uneommon of intellectual men becoming a Chrlstlan nation, and outJ of the confusion and the uncertainpriests with a v.iew of combating' the materialism in the 1and ties of the hou.r will• come a purified faith and a st:nonger- peo-. :mdi of aiding in making the teachings of the Chrf-st a Iiving ple, witl1 broader- visions and loft~r ideals. an<l vital force· among· the• people. A ~iter who has spent Tl1e Greek 0l'thodox Church, wtiiie emphasizing the spirit of 11eve1,a1 years in Russia and who1 has Wl'itten sympathetically devoti<Jn and: holiness, and continuing; its appeals to the emoof the Bolshevik uprising stated to me that the activities of tionul natul'e, will takei on a spirit of service and of activity, ~ommunist:si in behnlt· ot ahlleism were not as successful as had and mnke remarka15Ie rontribution to the social, intellectual, been expected or· desired, and that one communist declared and ethical growth and1 devetepment of tbe peopfe. with great bitterness tha.t he despaired of the destruction of ·mnucATiow the chw:eh. This same writer mentioned that a rommunist Re.ports from time to time b~ve come from Russia to. th& woman had stated to him that her daughter, 12 years· of age, effect that success~ul efforts w.ere being made by the- Bolshevik bnd rebuked the mother, declaring that she believed in God. regime to educate the Russian people; and there has been, a And the same woman stated· that among many- children receiv- rather wiclespi-ea.d belief that great advan<?ement has been made.-

' ing eommunist inst:lmctions a religious and' dtWotional spirit is I in e<lucation and culture under this, regime;. Ev.en communists :round \ nnd tl\e admire.rs and apologists fo:t llo1shovism are compelled;

Communists exr>lnined that the philosophy of c0mmunism 1 to confess that these claims are unfouwied. An impantial in~ wn.s antireligions and tl\at churches were _obstacles- to eom- v.estigation of educationa~ conditions fn Russia will reveal that mrmistic development. They stated that the view of the there were re.wer schools an.cl less. students attending schools. church C!Oneerning man•iage and tl1e family and divorce were during the last school y<mr than in 191~ 1913,, or 1914; b.ut in at >ariance with eommunistic philosophy. . 1920 the:re was a considerable. increase in the school a-LtendancQ

In a number of cities churehes were seen which had tieen over pre-war years. converted into commu11ists' clubhouses; In the city or Tillis, Lunacliarsky, the Con:unissar ot Education in RmJsia, in. a magnificent cathedral was in process of transformation Dec.ember, 1922, stated that "even to provide: sahogls fur 50, when I visited it per cent ot the child.Len~, t.o. lea;r;n to, read and' write~ woulu calf

The be:rnti.fnl pictures upon the w.alls and the dome of the ' for tlie imniediate establiShment of 20,000. addition.al insnituchurch were being cove.red- witlr. whitewash.. Tbe. altar and' tions.~· Howeve:r, t}le deplonable condition of the schools is not !cons and the beautiful church banners. and symbols had been due to the lack of· desire up.on. the part o:L Lunacharskl', nor to t'E."moved. Busts of. Karl l\fq.rx and Lenin stood where the altar lead).ng communists of the soviet regime. Lunacharsk.y is. & had rested. Soon this great cathedral' would resound with the brilliant man of· good impulses and w:ith a since.re d.es~e to.. harungues of young, communists and tenebers of Marxian ameliorate tlle condiUon of tbe people and, to. advn.n.aa the cause pllilosoph~ In Moscow, a. beautiful; cllu.rcb had been. similrurly of education. He possesses literary talents of· a rather Wg,h despoiled of its symbols and [email protected] and altan, and• Marx- order, but lacks, as- is thought by many communists-arn1 that and Lenini received the adul8Jti0n 0:£ the Bolshe-vik CJJO\\His w.ho1 was the opinion I formed'~utive. and administrative a.Jillity. tllere assembled, an<.l who paidi homage to· t.bei.I! busts, which The educational debacle is the result ot Bolshevistic· rule had taken the pl~e· of th& altar. and tJie financial' and economic collapse. of Rll.9Sia. With limited

The statement often. made- that nn~ many of the churches production, fncoD.Bid&abTu trade, an. exhausted tneasµ:ry, and. ha.ve been pe1'.Illau.ently• closed by the· Bolshevik. I!egi.:ln& is not dried-up· fountll.ins of. revenue,. it was inevrtable tb~t tb.e. plans al:cui:ate. During. the- early. Q.ay.s. of tbe- civil wan, aou.btlese1 l)rojected fOI,' increased edu.aational a,ctiivity should. fail, and many U'ere closed. S'im1e- of the .Plliests: who wane. with the. indeed. that. there should. J)e retrogression. ins:tead. Qf ad;vancewhite armies left their churches without ministers~: and. in ment.. many places after the war the poverty of the JJeople caused The national census as of August .. 1920,. take~ under the tl\e clbsfug o.f cnurehes. That tlte Bolsheviks- wQuld like auspi'ces of' the Soviet Government sD,owed 68 per cent of il· t&- <dose alf. chu'l'efies they freely admit. That' they would close li'teracy throughout an n:ussia ~ that. is, 680 :people out of every, them if they dared can not be denied. The Russian people at !,000 courd neither read· noi: w.dte~ Ot the entire. able:-hodied heart are de'Votional- and religi@-llB, and the forcible elosbrt; of working_· population 73· per cen.t. o:f the mates were unable ·to· the· ehuitehes. woultl1 rwo"\toke ai revolntfun which would destroy read or write~ Lenin was so impressed with too shew.Ing the- Bolsbe'rik power: of illiteracy and the failu:ce of" Govennment to. imprQ"he e.du.-

There· haft net been. tl\e- sm1te· effort bY' cemmtmists· f'O' sprea<J· cacton.al conditi'ons that,, i'n a;u articlQ. nu.bllslied in the Pravda... atbP.istic teachi'Egsi ·among thei l\lohammedans as among the January 4, 1923', the paper being tlle official' organ of. tlle Rus,. Christians. !fuhammedm.\ m6Sqneg haive not been clesed, .. and sran Cbmmunistl Party, he ref'ers to tli& il!iteru.cy and Iru::k ot.· t.Jle· Mo$lem ret~~l~s. teReti~ fi1w& not ~ell' molesteti. '!'he· culture and the unfounded claims made by communists. In lines separating the Mohammedans from the Christians are this article he says:

1924 CONGRESSIONAL RECORD-SENATE 7041 While we go about blubbering about " proletarian cultur<~ " as com

pared with the "bourgeois culture," we are being handed a set of matter-of-fact figures which show that even in the matter of bourgeois culture our affairs are extremely bad. It appears, as might well have been expected, that we are still a long way off from universal literacy, and even our progress from the dark old Czarist days-1897-has been verv slow. This should serve as an ominous warning addressed to tho~e who have been and are even now soaring in the empyrean clouds of our " proletarian culture." They show just how much more rough and pressing work we have to face in order to reach the mere level of an ordinary civilized country of western Europe.

The writer then declai:es that but little bas been done toward 11l'Oviding in the budget to satisfy, " in the first line, the demands of primary schools." He condemns the inflated personnel in the Commissariat of Education, and inQ.irectly the bureaucratic in~fficiency in other departments.

Lunacharsky submitted a report, as Commissar of Public Education, to the Tenth Congress of Soviets, which appears in the Izvestia, the organ of the Soviet Government, in its issue of December 26, 1922. This article is a confession that the educational system has suffered n complete collapse. Among other things, the commissar states in this report:

As long as the schools are destitute, as long as the schools are hungry, it is idle to specu'ate as to whether our theoretical attitude toward the schools is correct or not. • • • Thus far there has been a ceaseless struggle for the very existence of our schools.

He refers to the fact that during the revolution the number of schools and the enrolled school children kept growing more rapidly than at any period of Russian history, but that during this period no one considered where the means for their support would be derived from nor how they were to exist ; tllat the chief source of support was the central government budget, and that the government was compelled to this course at a time when "its only revenuP.s were grain levies and paper currency emission." He then refers to the fact that the teachers, as well as the provincial aud county departments of education, were expecting that the promises for relief would be fulfilled, while--on every side arose lamentations aud complaints over the back,vard condition of our school'S.

When we commenced to use the budget system attention was also di{ected, among other items of our state budget, to that of the people's commissariat of education. It was decided that it should in every possible way bP. reduced, because, as it then stood, it was beyond the means the i;,tate was able to afford. Such a reduction, in the opinion of the Gove1·nment, was to ue effected, not by reducing the extent of public instruction but by transferring the chief burden to the local authorities. All schools, kindergartens, and children's homes were taken off the hands of the central government's financing organs and handed over to the care of the local authorities, together with the teaching personnel, leaving on the hands of the people's commissariat of education about 90,000 teachers, i. e., about 50 per cent of th6' then already greatly reduced school system. As a temporary measure the people's commissariat of finance contemplated gradually reducing th'! appropriation of funds for the local authorities for the needs of schools, kindergartens, and children's homes.

What was the result of this transfer, whose effects became manifest in 1022, leading to what we know as the collapse or crisis of the school system? The result was that the local authorities began to reduce the number of schools and children's homes, in some instances directly prescribing just how much there was to be reduced, and in some cases acquiescing in the flight of the teachers and in having ·padloeks put on the school gates. Owing to this feverish, panicky reduction, by April, 1922, we had left only G8,000 schools with 5,300,000 pupils. In October of last year (1921) we had but 55,600 schools with 4,750,000 pupils. The decrease in the number of pupils proceeded somewhat more slowly, but on the whole, as you see, the decline in the number of schools as well as pupils has not stopped at these figures but continues nt such a rate that, taking into account the variations for different Provinces, we may state that the shrinkage amounts to from 40 to 60 per cent, and even higher. As regards the numlJer of schools, we have now reached a level that is even considerably lower than that of 1914. As for the number of pupils, we still seem to stand a little above the level of 1914. Here, then, you have that catastrophic decline that has met with no barrier thus far.

Turning now to the figures of school attendance in relation to the total of the child population of corresponding age, we observe the following situation : While we had in 1920, as already stated here, 75 per cent of all children under 11 years of age at school, there was only 44. per cent there in .April, 1922, and this figure has now still further shrunk until it is to-day only a little over 38 per cent. It appears, therefore, that we have fallen very tar behind our ideal of assuring to every Russian child a place at school. If we should to-day attempt

to bring our school system to such a state as to enable even only onehalf of our children to learn reading and. writing we would require 75,000 schools with room for 6,000,000 pupils; in other words, we should have to open at once not less than 20,000 new schools.

In speaking of the kindergarten system Lunacharsky states that the situation is-stm worse than the one just depicted. We reckoned the maximum number of children who were at one time actually attending our kindergartens at 207,000. But in April, 1922, there were only 86,000 such children left, and even this figure has since been reduced by more than 50 per cent. ·

He states that the last congress of the provincial departments resolved to attempt to keep open at least two kindergartens in each Province, and continues:

We thus witness at present the most complete· collapse of this whole system.

Speaking of the social training department, which has charge of the children's homes, he states that there are more than 600,000 child1:en in the homes, although-

If we were to assemble all the children who stand in need of a roof over their heads and food to eat there would be a great many more than that. We are, however, unable to maintain even these 600,-000 children. The Government has allotted funds for the maintenance of 320,000 children, while the other 280,000 are supposed to be fed from local resources.

He then mentions the complaints because of the inadequate alowances and the extraordinarily high death rate of the children in the homes. He speaks of the " oceans of homeless children " as the reason for the inability of the Government to care for more.

Lunacharsky then turns his attention to the teachers and asks that the Government consider " the martyrdom of our teachers." He declares that he "might for a long time torture the comrades with the staggering facts, which seem more like fiction than reality." He continues:

We have among our teaching personnel horrible cases of destitution, premature death, widespreatl sickness, suicide, prostitution, and other things. The picture presented by the liYing conditions of our teachers at the present period is appalling. No one should be surprised that these teachers have been fleeing from us in every possible direction. Nor should one wonder that we have found it impossible to recruit new teaching staffs among elements that would be half way valuable to us.

He refers to the fact i:hat 12 per cent of the minimum subsistence represents the pay of the teachers; that while communal workers receive 55 per cent of the minimum, and woodworkers 81 per cent, postal and telegraph workers receive but 24, and school workers but 12. He refers to the large per cent of appropriation for education in the state budget of 1920, it being 10.4 per cent, but that in 1922 it had fallen to 4.2 per cent, owing to the transfer of schools to local authorities. However, as was stated by Lunacharsky, and as observations and inquiries made by members of the party demonstrate, the local communities in 1921-1923 made but slight contribution to the schools, as a result of which conditions remained substantially as described in the report of the Commissar of Education.

In the report Lunacbarsky further states that before the war the expenditure for public education amounted to 238,000,000 · gold rubles by the state, and 76,000,000 by local governments, not including the expenditures for private schools. He then adds :

During 1922 the total all-.round expenditure for education in Russia amounted to only 36,000,000 gold rubles. This makes it clearly apparent that we have no business talking about the efficiency of our system of school organization, whether the teaching personnel is good or poor-in other words, about anything pertaining to internal organization of our school system-in view of the fact that we receive only one-tenth of the meager allowance which was afforded to it before the war, and remembering that Russia was never very far advanced in the matter of education at that.

It will be perceived that with but $18,000,000 for educational purposes for 1922 for the entire state there must have been retrogression. Many cities of the United States spend a larger sum each year in support of their public schools.

The commissar, to prevent further decadence of the schools, recommends the legalizing of tuition fees, stating that 31 out of 37 Provinces had already introduced such practice:

Replying to the question as to whether private schools would be permitted, the commissar declared that-

No private school of general education would be admitt.,ll by us. All Russlan .schools must remain in the hands of the state.

CONGRESSIONAL RECORD-SEN ATE. APRIL 24

It is interesting to note that the Izvestia. under elute .of .July 7, 1922, published an article stating that reports from the ,Vologda government indicated that-

oue hundred and fifty primary schools have been closed ooeause of lack of funds, and that in many schools where formerly there were two or three teachers only one is left.

'.l'lie article further sets forth that a letter from the superintendent of education in Ialutrovsk Oounty states that-

~ince February he has received 23,000,000 rubles-of the money of 1921, which is eqnlvakmt to 2 rubles and '30 kopecks of the money of l l:J~H-and on this he hns had to suppo1·t all his teachers, feed all his chilllre:ns' homes-

anu to further purchase fuel for the school and homes, repair the buildings, and so forth. Speaking of the teachers, it proceeds:

They come with tragic faces, swollen from hunger, with hands trembling ancl eyes weepblg, .aslrillg ifor hel;p, and tbere is no hetJ. Many have all•ea.dy died of hunger. Some stea.l, others speenlo.te, and none arc fit to teach.

In the issue of August 6, 1922, an articl~ appears in the IzvesUa showing the poverty and starvation among the teachers and the closing ot the schools. It states that-

For 80 pupils the school had a dozen and. a half pencils and not a sheet of paper.

Tl.J.e Pravda, August 10, 1922, states that: In Voronezh, as everywhere else, there ts a financial crisis. It .ls

nbsolut~ly impossible to secure money for the needs of ial:l departments o! tbe goveTnment. • • • The state deps.rtment of education is selling what school property lt can and is nevertheless billions in debt; communal organizations sell kerosene and builtllnga. 1n many dep:u:tments the employees have quit their work and have busied themselves with field ·work so as to get something to •ed. • • • We ·Seldom get more than 5 per cent of our neeclB •anyway.

In the gubernia of Ivanova-Vosnesensk, it is staterl in the Pravda, August 13, 1922, that the sehools are going tht-ough a crjsls:

Jn order to keep up the schools ns they are now we need for the .use of the person.n..cl one hundred and tw.enty billions and an equal amount for other expenses monthly, bu! we have actually received from ten to twenty billions a month. Om· educational department owes the teachers 170,000,000,000 rubles.

l\lr. OWER .Mr. President. . The PRESIDING OFFICER (Mr_ EDWARDS in the chair).

Does the Senator from Utah yield to the Senator from Oklah<1ma?

Mr. KING. I yield. ~1,r. OWEN. I take it .from tbe anxiety exp1·essed by these

officials for the advancement of the schools that it must be that there is a lack of re~·enue .to carry them on rather than a lack of desire to educate tbe people. What is the Senator's ¥J.ew of that?

Mc. KING. Perhaps the Senator was absent from the Cllamber when I discussed, as I thought, the point raised by his question. I st.a.ted thut in my opinion there was a general dl'sire upon the part of the Bolshevik leaders to extend the benefits of education to- the ,people. How.ever, their view of education is somewhat different from that prevailing 41 the United States. They have challenged the educational system of the past, as ~Y have challen,ged the .econ-0mic and political system of the past. They are iconoclasts and extend their .activities to the demolition of everything that was or is a part of what is called the bourgeois or capitalistic form of government. They hnve been eflger to reach the plastic minds of th~ young and to plant therein the communist faith. They have abandoned the hope of converting tbe peasants to communism, with 'its attendant atheism ; but tbey hope through their educational system to destroy the faith of the present ancl future generations in God and in those principles and po1icies which have been accepted by civilized and Christian nation~. They are giving particular attention to those schools which prepare young men and women tor propaganda work in 'behalf ot rommunism ibeyond the boundaries of Russia. "filere are a number of seho(j)ls which specially prepare y.o-ung men and women to attack the existing governments ~nd the social oroer as found throughout the wor.ld.

My attention was eall€d thfs morning to an .article appearing in some 6f the American mewspapers written by Mr. Mackenzie, one of the ablest correspondents who has visited Russia. I met him in Russia, and obtained mnch 'Valuabde informatk>n ifrom him. May I ad<i that he bas wdttea a most admirable oook dealing with lll.lSSia, and be is IlOW .in Il.:usaia stu(].yil.lg, in a

compreheusiv~ way, the problems which Russia presents. His intellectual honesty and his fairness can not be questioned. In his article he refers to the work of these colleges where students are prepared _for propa:ganda activity and refers to the fact that students from Lithuania, Esthonia, and other European countries, and also from ·various oriental countries, are being instructed in -communism and prepared to return to their respective h-0mes there to propagate communism and to cooperate with the Bolshevik regime in Russia in its efforts to establish a world-wide communistic system.

Further replying to the question of the Senator, it s-bottld be statecl that the. revenues of Russi:_t are inadequate for the maintenance of needed schools. Russia was greatly exhausted by r.eason of tbe World War as well as the civil war. Bolshevism ·clried up the fountains of industry and contributed to the poverty and distress of the people. With the nationalization of property ancl the subjection of the people to a military communistic dictatorship production was impossible and starva,tion and indnstrial cpaos were inevitable. Tbe Red army, at all hazards, the Bolshevik contendecl, must be prescnred; and the little that the peasants produced was seized by .tbe Red urmy to feed the communists and the army of officials, as well as the soldiers of the Red flag. Of course, unuer such conditions, no matter how strong the desire for schools and educatlon, progress along educational lines was impossible.

Mr. OWEN. I should like to i:tsk the Senator whether or not under the direction of the state capitalism system, which they seem to be establishing there now, the revenues were substantially increased.

l\Ir. KING. l\1r. President, I have eanvassed that question somewhat and will anud€ to it further when I reach another branch of my address. I will add, however, tllat there has been marked advancement since the new economic policy has been adopted. New sources of revenue are now being developed. There are thousands of private stores and shops being opened and small industrial enterprises projected, fr-0m which som~ revenue is derived. But there is danger of the Government destroying, by taxation, these private enterprises. In the city of Moscow 5,000 shops were closed within a period of six weeks while I was in Russia, because of the heavy burden at taxation imposed upon them by the Government. Doubtless some of the shops and stores would have failed in any -event for lack: -Of eapital and because of the limited purchasing power of the people. I should add, too-and shall discuss tb.at later~ that many of the officials of the Government look with dis:f.a. vor upon the .r.ecrudescenee of any f-O:rm of private capitalism, believing that the state ·should not only eontrol and oper.ate the "big" industdes, a.s they a.re ealled, but all business, unless, perhaps, that related to agriculture.

For a .number of years the Bolshevik Government hnd no revenue, except, as I haive stated, that which they took from the starving peasants. They :issued umlimite.d aill.G'unts of .paper money t-0 meet the operatimg expenses of the Government. However, there has been such improvement that, f@r the nseal~ year ending in October, 1923, the defidt will not be greater thau between 60 .per cent and 70 per cent. Of course, sueh deficit will be met by fnrther emissions of paper mOJJ.ey.

Mr. ROBINSON. Sixty -0r seventy per cent of what? Mr. KlNG. Perhal>$ I did n.ot make myself clear. What I

meant to say was that notwithstanding the heavy burdens ot taxation-heavy because o;f the small pr-0du'Ction and the limited sources from which i·evenue may be obtained-the Government bas been able to collect o.nly between 30 per cent and 40 per cent .of its .expenditures tor the fiscal year ended October 31, 1923 ; and it will be compelled to issue fiat money to the extent of between 60 per cent and 70 per cent te meet the deficit. I was assured by a number <>f leadin;g B0lshe-.'i-k otlicials that the Government would <!Ollect at least 60 per cent o.r 70 per cent of 1ts expenditures, leaving a deficit of not to .e:x;ceed 40 per cent; but the fnf-o.rmation which I have received .since my Teturn !indicates that the assurances were valueless. Of course, this showing, bad as it is, is notewO!l'thy, because a :Cew years ago the Bo-lsh.e;vik [email protected] met substantially all of its operating expenses by issues of paper money. Lenin stated these issues reacl:lecl "astronomical figures."

A brief reference to the condition of education prior to tbe war will afford some little light upon the claim made by many that great .advances have been ma.de by ·the Bolsheviks al-ong th-e lines of education. In 1904 the number of schools in Russia. was 11-0,231, with a total number of pupils and students ·of 6,200,172. Of this number, 5,344,747 were in village schools, which numbered 90,942. In 1905 the number of schools had increased more than 1,,000 and the ,number .of students more than 200,000. In 1.910 the total numher of schools was 119, 7 43 and the number of students in attendance was 7.,548,192. Of these.

1924 ~ CONGRESSIQN.A!L RECORD-SENATE

. 6 159 379 were pupils in villag-e wh00Js nnd 424,618 weve 1pupils I honesty. He •evinced sincere interest in educational reform ancl u'i what are culled tlae middle or graded schools and 2m5,296 1in the moral and •material welfare ·Of Russia. Thirty per cent were in technical schools. In addition to these nearly 500,000 of the limited , .budget -at ·Ills dis:i;>osal came from the central students were in private schools .and .200,000 were recelvirrg organization at Moscow, and 70 per cent was collected in the education in other places. In European Russia, without Poland, !Province by the POOP"l~. Spe<tial meetings of the peasants were .:Winland, or the Caucasus district south of the Caucasus Moun- often held at which they voluntarily taxed themselves in order tains, there were in 1910, 87,4.34 schools, with 5,989,686 pupils. to maintain schools. A special school census of 1911 showed the number of pupils He stated that in ·the "kindergarten children were received in village rschools to have been 6,180,510 mid the number Of up to the age o'.f 18 yeus, and in the primary and ·elementary village schools to have been 100,295. The teachers 1in .these , schools up ·to 13 years, with 18 years ·US 11 maximum. In the village schools numbered "154,177. entire Brovin<?e 100,000 students attended d!rring the school

In 1912 the number of public s<!hools in the Russian .Empire ~ear 1922-23, .although , the11e were more than 200,000 chilclren amounted. to 125,723, with an attend-a.nee of 8,263,999. Of tlili! between the ages of 6 and 18 yeal'S. Prior to the war there number 6,697,385 were·pupils of the village schools. In the same were .908 Behools in the Protince. In 1920 the number in-year 467,558 students attended the intermediate schools and creased to 1,500. In the la.st yeaT the .number diminished to 251,732 tlle technical schools. ·Sixty~eig11t thousand six hundred 853. ' Seventy ·pet' ·-cent of the budget is paid to teachers, rof and seventy-one stu~nts were found in higher schools an.d whom there are .2,000 in 1:he .Provinee, the .average salary of 5GO,OOO students in attendance upon private schools. More , professors and ' teachers being approximately 18 rubles }.ler tlrnn 232,000 were Teceiving education in other departments. .month.

In 1914 the total number of scheols m Russia had increa11ed In the Province there are schools -attended only by Tartars to 13.5,223, and the number of students in attendance amounted and in whkh rthe Tartar language is taught. Tihere are some to 9,05~300. Of tllis number 7,410,833 were in village schools; German districts, antl the ·GeTm:an language ls rtaught in the 529,552 were in t11e middle schools; and u99.B98 were in attend- schoo.ls there provided, .and 1In some sections, where the 't'l.nce upon· ·pri'Vate sehool:s. In the mme year in Eluropee.n ·uk11aininns J>redominate, the Ukrainian language is tanght in Russia, without the Cauca~us, Poland, Finland, Siberia, and ·addition to· tlle ·!R.im:!eian le:nguage. Midtlle Asia (Turkestan), the number of public schools was In t!b.e workmen1 s schools 'thePe al'e 240 students, who entered 102,377, with an attendance of 7~224,853; tbe number ·of stu- 5etween the ages of '16 and 17 ·yeaTs. Graduation 'fr(i)m these dents attending the higher schools was 73,821. schools permits entrance into the universities ~r institutes with-

netween 1880 and 1911 the population of Ru8sia doubled ·<mt examination. It .was ·nJso stated ·that there aTe more •than and the number of pupils in :the public scllools quadruptetl. Be- 25,000 -students '1n -the workmenrs schools throoghout Russia, tween ·1860 and 1905 66,850 ·schools were established and •be- ·the studies thEl'N! pur.Stl.ed, duri.ng tbe ftrst year, ·being comp.iu·tween 1900 and 1910 .24;581. After the constitutional changes able •to those 'found 1n th~ fust year •of the ordinaey high which occurred between 1905 and 1908 the educational work •scho<Yl. ' was adTanced with greater vigor. For the erection -of .school- 'B~fore tbe 'WUT tett-ehers 1n the sChools, in the colleges, antl in houres in villages 103,000,600 rubles (gold) were approprlo:tetl the universities were 90 per cent women .. Now between '20 in .1007 and measures- were taken for •the intN>dnction 'Of uni- and "25 rper cent are•males. Both male innd '.female teachers re~ versal e'ducation. 'In most of the Rm;sian "tC!YCal governments, ceive ·the• same compensation f-0r ·the same c'lass of work. ~onsisting at that time of 441 district rlemstvos and •789 munic- In view df. vihat Russia lhaa passed •tht'ough since 1914, and ipalities, 'l)rovisions we1·e ·made for universal •schooling. ' T~ -ti.he baridshi~s 'to which '81Ildren have been-exposed, it •was · 81~data obtained indi~ate that the number l()f schools in Russia prising but gratifying to tmd ·the school children and tJhe in 1022 and •in. l.923 was considerably ·tess than the number ·in stutlentis 'in the 1.1.igh~ .ed'ticntienal institutions in such ' excellreG anrl nlso Jess than ·the number in the same territory in :tent ' physieal and mental •rondirtion. It is true that many 1df 1014. 1For :instnnee, in 1914, within a eertain territory, tile them • Showed •evidentea ·~ ma:lnutri.tien .and others 1 that their village or J!)Timary echools numbered ·:00,217, in "'19Zl 64;529, and growth hatl ,been materially 1.'etaTded. But, gen~rally ispeakiin 1923 55,000. ing, th.ey were vigoreus antl a.lert and -am<mg manf there

In 1921 the • mm1ber of professional lSCb~ols, as --they were rwati 11.D e~erness to. olltn.in lrn.owledge that was most comcaHed, amounted to •i'.,349,.and in '1923 to buttsl-0. In1tbe1Provrnce 'Illenda.'bl:e. ·'In tl1e lfnsti:tut~ an astonishingly large·numbet' were of Tula, in 1914, the inumber df :schools ·Wla'S l,88l71l.nd in 1922, -studying lfoveetry, scientific o.grlcultnr~. aud medicine. Indeed, 1,685. In the Samara-·Province, in 19114, the number of schools in •the medical tinstitutes the professors .and fnclUties were was 1,951, and in 1922, 1.~ilfl3. The number of 'PUJ>Us in these rwllolly inadequate and many·stutlents ·were ·being donied atlniissdwoos in 1014 was :.1'651'220, ·and in ·the school year 1922-23, ~on. 'Unfortunately ·the standards for admission ha-ve been so 1.30,288. It •should be ~t!lcled tllmt there weire no 1privnte schools 'lowered that large n:i!.mbetlS were admitted who shoultl ha'V'e in this last--named 1year. ~been· ;fn pre1mrntory or 'hirgh 'BChools. But, as indicated, the

Iu tme V-0logdn tliE;triet the number of EehG>els in 19114 w,a;s politicd 'ltev:olution-it -we.is 'felt 1by tl1e soviet leaders--must 1J !W4; in ~21-22; 1,288; and in 1923, .691. "'.Fhe decl"ease in ne. carrie~Hnto the social o-rgani@rn and the 'educational . system. school attendance was 37 per cent. ' 1Accordingly ... •the hnmmer ·0'f the iconoclasts was 1used. in batter-

Tiil€ salaries ·paid school~teachers throughout Russi-a (gold) ing down 1tbe fine ,spitit of eulture and <Scientific investigation a1eraged in October, :t~, 5 !rubles l7il lkopeeks .mnontlily, •and Rnd, mdeed, ischolarsltlp which were ·the glOTy and pride of the in December of the •ea.me -year 5 irubil..es 89 !kopecks. In October pre-war Russian universities. of the same year, rin .24 ·gnbernias, ·tbe 80.1.aties weretless 'than Notw:itbstnm'Hng the enthusiasm •exhlblted by many students 5 11·ubdes, .and in 6 'Provinees lower than 4 rnbles monthly. In in theiT educational work, there is y-et 1to-0 mueh -0'.f the efferlloscow tbe teachers 1ave'l"ag.ed 7 rub1es ·7 · kopecks; •whereas vesoen.<le df. Bolsh.evism aud an 1ntlated view that the worm in Petrogratl they were paid 4 rubles and '80 1k.opecks monthly. waits lllPOll ·Russi.a, which waits-npan the yo.ung men and women The m~ting president of the Harkov Uniwrsity, when I ·vistted who are to igo out :from the •institutes •to challenge and conquer that institution; was receiving about • $0 rubles 'per month, iaud the 'W<Jl"ld. tlle •president a sum slightly Jn excess df. that :amount. T:he There is too much of superficiality and too much Df 'the spirit professors were receiving aJ)p~o.ximately '30 Tubles per month, wbich is satisfied with 'U venee~ring and does not compel •deep ancl the head of the economic ·depHrtment 42 rubles per month. -and searching inquiry for •the· foundations o'f truth. And this

Several teaeillers who were met ~n rural distrtc.ts of 'Russia sptrit is encouTaged by bigoted and oftentimes ignDrnnt soviet stated that their compensation 'the ·past school year hnd been .\callers, national and local, who -aim to quickly convert all .edoS rubles per month. cational institutions into 'Schools for Marxian philosophy and

The compensation paid 'to the iprofeissors and 1teuchers in the communism. Aceordingl!Y, immature and incom~tent persons schools of the ·Ukraine was somewhat greater 'than that paid are puShed into professorshi:ps and as instructors, Rnd tb.eir in other parrts of Russia, e.nd the fact S'.bauld be ·stated that 'Jlla:rrow prejudices and heated enthusiasm, based tipon a most the Ukraine, as an autonomous state, has certain privileges, 'Sha110'1V 'founCJ.ation, are communiea:ted to the students -with nm<:mg them ·bei:m.g that -the educational system is controlled whom they come ln contact. This is a siniister and, indeed, a largely by the soviet of the Ukraine and the parent Govern- menacing force ·Which threatens tbe development of Rn-ssia, an<'l mcrrt at Moscow makes no ·fin.ancial .contribution to the educa- if persisted in must b11ing her educati0nal system to an ignoble tion:al work therein. end. Fortunately there are .some brave men and fenTless souls

ln the Province of Tsarlteen ·Professor Zil:ensky, who •had m Russia .wllo see the· perils ialluded to, Jllld 'there are -students . been head of t11e eduea.tional .system there for one year an:d and young men and women •who are and will be . endowed :with prior to that had cbn.rge of education ·in Rost0v, ·fnrnislled ithe -ptrrpose to brush a.side th.e .fallacies and <f.alsehoods and to the ' party information respecting the :schools and ·the difficulties Teach the hedrock upon whieh alone rest the things that -endure. and problems -which were encountered. He is an active, mili- The point ot view of 'So many of the students is quite 'COmt;ant commnni:s!t :anti a man cJ!. :vigor, intellectual force, and prehensible. In the Czaristic days the doors of=the un.iv.e:raiti.es

.7044 CONGRESSIONAL RECORD-SENATE. APRIL ·24

seldom opeued to the sons of the peasants, the workingmen, or the Jews. Now it is felt that their doors should be closed to those clnsses of society who formerly monopolized the higher institutions of learning. The political change wrought by the Bolshevik revolution, which has profoundly affected the social system and the educational institutions, it is argued, was a forward mov-ement, and the beneficiaries of the change must preserve the aims of the revolution and the communist principles upon which it was founded ; and this spirit, unfortunately, tends to strengthen the c1 ass consciousness possessed by many students and to develop an antipathy, indeed a hatred, for the bourgeoisie, for capitalism, ~o called, and for all Governments which do not accept Bolshevism.

The central go>ernment at Moscow keeps its hand upon the educntional system, even in so-called autonomous Republics, such as the UkraiJ1e. and in most of the universities and insti-

. tutes the names of the directors, selected by the local soviets or by the local soviets and the faculties and students, and communist lenders in the Province, must be submitted to Moscow. If disapproved, other selections are made by the locnl organizations, and if these also are disapproved by the Moscow Bolshev-ik authorities, then tlle latter name the directors.

It shoulcl be said. however, that in some Provinces the local · soviets Rnd communist leaders are less liberal and are more fanatical and intolerant than the Moscow leaders, and instances were not infrequently brought to my attention where appeals to the leaders at l\Ioscow from oppressive and cruel edicts of local communists brought prompt relief.

Attention should be directed to the fact that in pre-war times ecclesiastical schools flourislled and ecclesiastical universities attained high rank. Because of the eminence of their professors, none of whom were priests or within the circle of the clergy, their scholarship was recognized by all, and many who came from their portals were recognized as men of great learning and ability. .

Of the money appropriated for educational purposes by the So>iet Gov-ernment it was reported by some that at least 30 per cent was used for what is called " political enlightenment and social education," which is the high-sounding and euphemistic name for Bolshevistic teaching.

With iI1c1·eased revenues undoubtedly efforts will be made to increase the number of schools nnd improve the educational system. There is no lack of desire upon the part of the people of Russia to multiply the number of schools ancl increase the attendance, and among mauy of the young there is marked enthusiasm for educational progress. The uni-rnrsit.ies and Institutes are crowded to such an extent that many applicants hav-e been denied admission. It has been the aim of the BolsheYik leaders to establish what are called technical schools, where it is claimetl tlle students can specialize. Voc1,ltional training ls emphasized and the curriculum largely adjusted ~o me.et the new spirit nnd plan. As is 'known, Russia before the war hacl a number of universities which ranked with the highest in the world. Russian scholarship belonged to the first order, and the scientific men of Russia took front rank in the world. In art, in literature, in music, in philosophy, and in the sciences the universities of Russia set a very high standard. l\I1m~- of the professors in these universities were recognized the world over for their ability and scholarship.

.After the revolution, nnd under the Bolshevik rule, the intellectuals of Ilus.'lia were among the greatest sufferers. Mau:r were killed, thousands imprisoned, and great numbers driven from Russia. As late as June of last year several hundred of those who are called "intelligentsia," among them being tencllers and professors, were requested by the Bolshevik autl10rity to leave Russia.

In the universities some of the old professors are still found, but communists are placed at the heads of the universities and institutes as well as tlie technical and Wgh schools. A.t the head of the Eka.terinburg College (or University) is a communist who constituted one of the governing gl'Oup when the Uzar was arrested and killed. At Harkov and· at Moscow communists tlend the universities. At the Sarnto\" University there is more of the university atmosphere and the professors enjo~r greater lihert;\·. Nevertheles~ here, ns in the other universities and institutes and technical and higher scllools, the communist spirit prevails, and communist students exercise a powerful influence, if they do not control, the workings of thP~e institutions.

The student orgRnizations are controlled by young communists, and they select one or more representatives who partklt>ate iu tlte selection of a number of Uw directors or trustees who go>ei:u tlte university; and they also take part in the m0etings of the fnculties and enforce the demands of the communist students.

The J1ead of the Univ-ersity of 1\Ioscow is a journalist of no great ability or standing. At the meetings of the faculties the compmnist students largely dictate the policies of the institu· tion. The old professors who are permitted to remain at these meetings are practically ignore<l, and if they make suggestions not in harmony with the communist program they are often rebuked, and the displeasure of the ruling power may be so great as to result in their being discharged. This situation is intolerable, and its effects are disastrous to the work of the educational institutions.

The professors who remained in Russia during the revolution have passed through a period of martyrdom and they are now in the utmost poverty, and many are without even the necessities of life. The meager salaries received are inadequate for the support of themselves and families. Many of them receive but nine or ten dollars per month, and the president of the largest university receives the munificent sum ot $45 per month.

The professors and teachers are under constant surveillance. either by the communist students or by communists in the faculty or by communists in the political branch of the Government. It is impossible for them to present in a proper way the subjects which they are teaching. No reference to God or to the moral and spiritual forces of life are permitted. Atheism is a part of communism, and in the teaching of social science and history the mechanistic theQl'y of the universe and of life is emphasized. The university spirit as it existed has been destroyed. The scientific anrl scholastic achievements of the past and of the present are derided, and the purpose is freely admitted to destroy the old system and find a new one based upon communistic philosophy. The universities have therefore been effectually broken up. Indeed, in some instances they are no longer called universities.

At Harkov the university has been broken into institutes, such as the medical institute, the institute of law, the pedagogical institute, and so forth. These institutes, as indicated, are presided over by communists, most of whom have had no training or education to fit them for these positions. The staudards are being lowered not only for admission but for graduation. The announced plan is to simplify education and to bring it within the range and comprehension of the proletariat. But the numbers seeking entrance into the higher institutions are great, and in the various departments and Institutes admission to many is denied for lack of accommodations, teachers, and necessary equipment. This results in the exclusion of ~ubstantially all of the bourgeois class, of the children of the former noblllty, military leaders under the Czar, priests, etc. In some institutions it is provided that 10 per cent of those admitted are required to pay, 60 per cent are free from any payments, and 30 per cent make contribution as determined by the heads of the workers' and peasants' organizations and communists. Most of those who are admitted free are given dormitories or rooms and food and are cared for while attending these educational institutions. This method results in the exclusion of substantially all except the children of workingmen and. peasants.

Frequently children of the bourgeoisie associate themselves with the unions and engage in manual labor, and accept membership in the proletarian organizations that are regarded as proper under Bolshevik- Government, and in this way a limited number find entrance into the higher institutions. It is not infrequent that students, not of the communist faith, and who come from bourgeois or military or other circles, are denied graduation. Undoubtedly there is discrimination in the schools against the chi1oren of the bourgeoisie and of the landed class,. and the children of the priests, and those who were in official positions under the rule of the Czar.

In all of the schools atheism and commuuism are taught, The llolshevik leaders frankly state that religion is " antisocial and antistate," and that belief in God is ground for expulsion from the Communist Pnrty. In conversation with students attending the high schools and technical institutions, they freely admitted that instructions were given along communistic and atheistic lines. Children of 12 and 13, when interrogated as to tile character of the instructions upon these subjects, stated that they were taught that "there was no God and that there was no power above or beneath the earth, tlmt everything was 'nature,' and that religion was superstition."

In the orphans' homes little children received the same instructions. A young lady in charge of one of the orphans' homes which I visited stated that inspectors visited the institutions twice a month and directed that she and the others who were in contact with the children-and the children at this home were between the ages of 6 and 16-should teach communism and atheism. She also stated that a short time before an in-

1924 CONGRESSIONAL 'RECORD-SEN ATE

specter, 1n ex.a.mining the valise M .one of the .-young 1l!acbers, procrustean 'bed ·Of. •abstract "Sd:ence and ·mecbanieal materiaidiscovered a -small 1icon placed therein by her mother. It ·was ism is one :of 1~ ·outstand:iug· feo.turm of the Bolsllevik system con:fi:scated, and thte young lady ];)rcrmptly discharged from the of educatton. ·Bert the 'b1iBOJa:nt and resilient minds of tbe home. yotitlg, as 1nvestiga:tiODS show, do not always respond to this

In varlous parts of Russia schools have been established to 'J)redeterminecl and restricted 1program, ui€l While many of the prepm'e students for ~ommnniatic propaganda and activity. students are communists and still others.are strongly influenced In these schools are found students :lirom L-atvia, Lithlllanin, by •thetr materltiistic •teadlmgs there are o-theTs who hare a Poland and Esthonin, -and 0ther countries. The expeetation is bToader Y:ision aoo wJio strike out boldly into thooe fields where ·that, f~rtified by their training, they will become powerful aids · tr:uth a:nd justice anti the 1deals of the Christian faith are to in the conquest Oif capitalism and tile establii!hment of a world- be ·fQllmd. · wide dictatorship of the pr~letru:iat. THE RED .wMY

The Soviet leaders appreciate the importance of technlcal The ifilo;rmation obtained respecting the military forces ef reldll and of experts and specialists in the work E>f vesto-ring the Bolshevik Government is not wholly satisfying, and is industry and in rehabilitating the economic condition of the ~ubmitted with a feeling that inaccuracies, .more or less i.mstate. They ·aver that th€y are haµipered m their efforts by porta.nt, may b.e folllld. In my view the military question in being -compelled to retain, in the various bureaus and govern- Russia is inseparably connected with the aims and purposes mental departments, tens of thousands of persons who are not of the Communist Party and the Communist International communists, and, indeed, are hostile to the communist creed. organization. Indeed, a consideration of Russia's problems Accordingly, fill 6lerge-tic -campaign is waged to take tbroogil m'Q.st take co.gnizance of the relations existing between the tile scl1ools, as ~oon as possible, boys and girls who can fill the Bolshevik 'Government, the Communist Party, and the Thlru places n<>w held by noncammuni.sts in the Government service. Int-enmtlonale.

Perhaps 2,000,000 .Russia:as were driv-en from or tied out of If Russia ts t-0 pursue a pac1'fic policy, having primarily in Russia under the Bolshevik regime. Some have ·r-eturlled, a:ad view the economic advancement of the state and the welfare still others are retarning. Undoubtedly more of the ~migres of the Russian people, then a different view will be ta:ken of the will seek entrance into Russia as the opportunities for liv-eli- military question in Rm~sia and what the size and character of ihood a1·e i.Dcreased and greater liberty allowed. Among the the Red army will be if the clamors of the communists for a exiles were many of the experts and buRiness men and indus- wor'ld proletarian revolution are to be the basis of any judgtrial leaders of Russia. Moreover, thousauds belonging to these ment reac'hed. Copious references might be made to speeches categories were killed in the civil wars whic11 \Vere waged or by and articles publislloo ·by .t.ienin, 'Trotski, Z-inoviev, ltaide-k, and chekas when Bolshevism was militant and more pitilessly other leaders of the Communist Party who are also agsocia.u«im c:vucl than it is at the present time. Th.e situation thus created with the Tlli:r.'d Interlll8.tionale, in wlnicb the position is taken has left Russia not absolutely destitute, but largely denuded -Of that the communists are to carry their cr~do into every nation her educators, techniml moo, experts, and .those competent to arid overthrow an governments, and that to acc-0mplisll such carry on the respensibiliti:es of g.overnm-ent, iand necessary to end. cruel and pitiless war will be necessary. preserve the industrial and economic life of the state. There has been no withdrawal of these published statements

The immediate need for help in these 'Various activities o-f nor of the program for wor:1d revoluti6n f)romulga:ten by llusthe state in part accounts for the lowering of the standards af ·sian communists. education and the emphasis given to vocational and specializa- Same have declared, however, t11at the re=v<Jlcrtiooary mOTetion work. · It is a pl~asure to state that among the children of meiat 'Whicih piaeed l!lU8Sia in communist hia111:ds has suffered a the workers and peasants there is '8. ·genni:ne enttmsiaSm. for :tem:poraT':f ich'1Ck whicb•has n'8Ulted in a repercussion of capital-educatioil, and if Russia shall so far Tevive economically us to is;m., bat that this tiemp01"ary·pa:ase is merely a '"breathing !Pell•• be able to maintain schools tmd higher in3tita.fums of lenrning .Qnring w'hieh time tbe ·communist's will ~onsolidate theiT ga:lns the sttgma f!f. illtteraey will quickly be removed from the Rus- and be. ready to ·pres!I· :a vio.lent atta.ck when the opporhme mosimi people antl they wfU reach standartls 'of ·educational -and .ment acri.Tes .nd pum ·fonviaTd ·world communism 1:1.nd the trllntelleetual 'eXCe'l'JenCe Which Wlll entitle them to high praise. !tml.IJb ·of the proletarian. fo:rces in all lands. Un~wbtedly Bauer · O'bservatioru; and inqniries in the variO'OS sehools and in- and more practical communists ba:ve Te'a'lized th~ futility -&'f e-re~ stttutious 'O'.f learning furnish evidenc-e that the maral condi- cuting at least in this generation the ideals and the earlier plul1'S ·tio-ns among stutlents have undergone imJ;>rovement since the ef the Bolshevik furres of Rtata. They· Imve therefore but with -early dl!YS o'f BolsbeVlsm. Contrary to the views of 'Luna char- reluctance ~ that . until " class COOMi;@usness " .ue'3ky and -others, ·the peltey wrrs adopted of opening all sctrools ~lops in ·other eoantries th.e rea'li.21a:ti'0n af Botshevi!lt aims -fur to both sexes. 'The 'nbnOTmal conditions following the rise of :world oo:mtrol mn n« be attai:Ded. 1 · ·:se1shevism, the vigorotIS attacks whkh were being made upon The retreat 'fNml tft original commllllist plan wais annoimeed religion, marriage, and the home, -and tl}JOil the social order by .Lenin under the euphem15tic title of tb:e "New Economi-e and the ideals of Christiah natiODS, were b<mnd ·to rexerclse a Po!licy"; it prodlllced a p-r~foun.d ·eensamm· in Russia ll'.l'l.d c0nclemorali.siag influence 1IV0'1 the ·yoong. 'l'f'here was a ge~l'al trove:rsies il!l the Coomnunist Party. I met o. number or -comloosening of the bonds of society and .a. ribald, sneering, a•nd mumstrs wbg. ~ft the iparty 'becao&1e <:if. Leni'.l!l's success in seC'l11"contemptuous attitude toward purity and morality as defined Ing adoption of this plan, because they felt that it wo't'fM by the church and as understood among Christian people. .weaken the Cemmunist Party 8lld lead ' to further mod'i1ica:ti~ns

Tbe "moral -standa.rtls of the people were loosened, lascivtous- of the fmeamental prmciJl)les u.pcn 'Wbich it is foonde~. "!'here ness increased, sexnal vices assumed nlarming proportions, and are ·communiBl!s who were -practirol eoough to perceive that the young were mfected by the ~rnctive in1luaees !that at- 'Bepm-tta"e 1fram: the ~Iegy ·of -communism, and pa:rtlcula1.·ly tacked every standard that was applied .in eo-.ealled capitB:li.Bti:c we.ere it 'Wlas so ftt'l·~eaich:tng ln c0n:iseque!lCes as 'W81S contemstates and in what communists called bonrgeoisie ~ety. platea ·by .the ·new plan, would inevitahly be f(}llowed by a

I learned of l'eva.ltwg C<ilnditfons and wild ~gies which fol- m.oviementt whi<ili W<iJuld cl"ellte fi!Jl'ces • wllose 6emaflds would }owed the a.ccessiE>n to power of the Communist Party. But further lfltta.ck: the communist fnith. They al110 realize that

'improvement is noted over th09e disheartening and, indeed, de- their prediations of ·oommumt revol:utions thro:ag00ut the gradillg con.ditioos, and the preseat attituee of the stadents wt1rld, which waukl :requi~e the -services rof a miglity miUtary tow.ard morality and virtue and tbe decencies and obligations . fulrce, gathered in part by Bolshevik R11ssia, have not beE'n fulo.f civilized communities turnislled -conTincing proof of the de- :filled, al1ll ~r..haps will not within the nenr future 'be realized; velopment among them of higher ethical antl moral standards. it ·beca:me Il.'Wlifest, tl:Mmefare, that the mamtennmce of a large which are sure to be reffected .bl tine ~hts ftnd lives ·ef aTmy iweuld be ian tnto:lerabte ~b:vrden upon the people and J>rethis and ·Succeeding geHerations. My contacts with ·students vent it:he ·imlnstrilal rege'llera:ti0n o·f Russi.ia. 'The saner -amd and those familiar with their lives lent 'Strong su~port to 1he mo.re sa.gmei.ous ·Boilshevik lea-de1•s acce'l'dittgly ~lamied a recontentf!oo of many tine Russian i900ple tbat the remOIV3:l of the dncti.on df the ·military 'forces, and bttve been successtu.1 in. protections and influences offered by :religion had a most di:sas- ~mg the 8ll'JDY to .appiroximately 600,000 ~n. 'There a-re, trous -effect upon the m<>rals ·and lives and ideals of all Classes, htJWever, tlw8e among the communh~ts who -appaae these redueand in a marked degree among ·Students <1f ia vru:ttile mind aDd timJS, ·asaerti:rig that caipitalistrc governments are conspiring to who were reai.·ed in a ~mmunistie atmespln.ere. fnvwle Rnssia 1a:nd oiverth'MY\V So:viet a1111thority.

Where history, polities, and soei.al seve~ment are n!garaed Radek amd AM;her communists duriR>g ·the pam smnm~ mtule as akin to mat~matical problems 1100 mere mechanics, 'With~ strrcooag eippeals to the Russian pe(l)}')le t0 su:pport the army. eut any psyeho.log;i.al o.r ethical 01· spiritual stlmdards or W.IB-eln iln the sootherll' tp>art of lli.l'SS.ia I l~anrnd Olf·the ·f)erlpatet'i·c values it is obvious that the platrtie min.ds of the young· movements of Radek tn lllan'S Pro1<,rmces, wheio:e ire addresse<l will b~ affected. The -attempt in the !SOVlet sch©ols 1!o tres:t the local soviet organizations hid proeured the a<loptiQn of liviia.g beings merely as matter and to place all teuhmgs upon a . teBOiBtions .addres~ed 1o tJ1e Re'd army iau-d in-dil'ectly to tfile

··7046 CONGRESSIONAL RECORD-SENATE. APRiL 24

Government, which adjured the army to defend the proletariat government and the cause of communism against threatened aggressions of conspiring and intriguing governments.

I was in Moscow upon the occasion of the graduation of approximately 2,000 cadets from military schools. A great demonstration occurred in the Red square at Moscow, where the assembled multitudes were harangued by Kalinin, the President of the Soviet Government, and other Bolshevik leaders. Later a meeting was held in the Grand Opera House at Moscow, and there Radek and other communists addressed the graduates, nearly all of whom are communists, and impressed upon them _ the necessity of guarding the gains of the revolution and protecting Russia from the ttggressions of capitalistic nations. Fanatical communists still cry for world revolution and demand the maintenance of a mighty military force and the furnishing of financial as well as military aid to revolutionary movements by the communists in various European countries.

However, in an interview with Trotski, and in reply to a question propounded by me as to whether Russia would intervene to aid a communist uprising in Germany, he stated that-before all, and above all, we desire peace. We shall not dispatch a single Red army s'Oldier across the boundaries of Soviet Russia unless we are absolutely compelled to do so.

He further stated-should the German monarcbists be victorious, and sllould they then come to an agreement with the Entente for armed intervention in Russia, tben we should certainly fight, anu, I hope, victoriously.

He expressed the belief that this would not happen, and added that no internal civil war iri Oermany would cause Russian intervention. He stated, though, that the Bolsheviks-did not conceal their sympathies with the German working class, and that if we could assure victory to the German revolution without risking war we should do everything we could.

I asked Chicherin whether the Red army was not being mobilized near the Polish border for the purpose of throwing military forces into Germany to aid German communists in their reYolutionary activities. In reply he stated, in substance, that if France should march to Berlin, then Russia woulcl send the Red army into Germany, though in so doing it might involve a war with Poland. He, as well as other Bolsheviks, referred to wbat they denominated the Fascisti movement in Italy, Spain, and Bulgaria, and stated that if the Bolshevik Government believed that it ·was in danger from this movement, or any other external force, Russia would fight to the end.

Undoubtedly the view is entertained by many Bolshevists that the conditions in Germany will soon ripen into a formidable revolutionary movement, producing a crisis so acute and so extensive as to warrant, 1if not compel, the Bolshevik Government to send military aid to the German communists. This element of the Hussian communists are endeavoring to impress the Russian people · with tbe idea that the German situation directly involves the fate of Russia and that the services of the Red army will soon be required, even beyond the borders of Russia.

The extreme wing of the Bolshevists manifestly are displeased because of the apathy of the working classes in surrounding countries toward what they call the ·~class struggle" and the revolutionary movement in Russia. A few days before my departure from Moscow a committee of German communists arrived to confer with communist leaders in Moscow with reference to conditions in Germany and the revolution which they believed soon was to engulf the German Republic. A conference was held at tlie Kremlin, lasting for a number of days, at which Trotski, as well as other leaders, were present. Trotskl had hastened to Moscow, leaving the army maneuvers which were being carried on at a point several hundred miles southwest of Moscow. The German communists at this conference stated that conditions in Germany were ripe for a communist uprising, and they desired to know just what aid might be expected from the Bolshevik Government. These German communists stated that they desired moral aid, financial aid, and military supplies, and at the proper time military support. This committee represented that soviet organizations had secretly been effected in all cities and States of Germany, that the local organizations were properly integrated with higher ones, following the plan of the soviet organization in Russia.

The same committee stated that the political and economic sit1ation in Germany was such as to insure within a short time the success of a communist uprising and the establishment of a proletarian dictatorship.

My information indicated that Trotski and others opposed Russian military support if the situation in Germany merely

developed a civil war there, but he and other Bolshevik leaders promised all moral support, and (according to some information received) finincial and other aid. The German communists were told to continue their activities, ·to perfect their organizations, destroy the· morale of the German people, disintegrate labor unions and the Socialistic Party, call strikes and demoralize industry, and bring about an utter economic collapse of the German state. They were to sow dissension· among the working classes, provoke uprisings, encourage sabotage and the seizure of private property, and undermine the state's authority and the confidence of the people in any •'bourgeois" government.

When I reached Berlin, after leaving Russia, I learned from various sources that this program was being carried out. What the final result will be and what the final fate of Germany will be I do not venture to predict. I believe, however, that the immediate future of the Red army will depend upon the occurrences in Germany. If the German Republic shall survive the dangers now threatening it, and peace and prosperity shall come to the German people, then, in my opinion, the wiser and more practical Bolshevik leaders will urge that there be no increase in the military forCE!S of the Soviet Government, and some will urge important: reductions because of the lack of revenue and the heavy burden which the military establishment placed upon the people.

Speaking of the strength of the Red army, Trotski stated to me:

We have 600,000 soldiers

And added-Taking into account our population, our vast territory, our extensive

boundaries, and our alluring mineral resources, it must be recognized that ours is a very modest army. • • • We bave already proposed once, and should America express a wish to E:upport us, we are prepared again to propose the reduction of our army to a minimum necessary to insure internal order, provided that our neighbors were ready to make similar reductions.

The information secured regarding the combat strength of the army and its efficiency as a fighting force is not as precise and definite as I should have liked, and, indeed, was, iU respect to some features of the army, conflicting.

During the civil war in Russia the Red army numbered millions, but it was poorly equipped, without discipline, and many of its organizations were scarcely more than mobs. During the contest with Poland the military forces of the Bolshvik Government numbered five and one-half million men, but these forces were poorly trained, inadequately supplied with food and clothing or military supplies. Eyewitnesses of the movements of both the Polish and the Bolshevik armies ate quite unanimous in declaring that both armies were undisciplined, wretchedly equipped, and wholly inefficient. In 1921 l\liekhonochin declared before the soviet congress that while-the Red army at tbe time of tlle Russo-Polish War numbered 5,500,000 bayonets, it was decidedly inferior to El;lropean armies and was not an organized combatant force.

He a<.lded that-at the beginning of the Russo-Polish conflict t he Soviet Republic did not have a regular forc:e in the European sense of the word.

The destructive and deadly order known as "No. l," issued March 14, 1917, under the Kerensky regime, dissolved the great army which the World War had built up. All discipline was destroyed; all insignia of rank and evidence of command were abolished. The communists taught the soldiers to hate their officers and to rebel against military discipline. When the Bolshevik Government perceived that an army was needed, attempts were made to effectuate some reforms and to establish some discipline. Officers of the Czar's army were retained but surrouuded with such restrictions and subjected to such repressive limitations· that their efforts to create an efficient army were almost nullified. Communists without any military knowledge were placed in positions of control in the armies and competent officers subjected to such espionage and frightful terrorism that they were unable to devise or execute suitable plans or adopt reasonable and proper methods for the building up of a combative force.

Undoubtedly considerable improvement has taken place in the administration of the war department, and under the direction of Trotski as Commissar of War the Hed -army has become more efficient. The reforms in the army have been the result ·of bitter controversy, and some communists have opposed the removal of the political agents who accompanied the various army units, practically controlling the activities of the army and reforms which :were imperative. At present the number of

1924 CONGRESSIONAL RECORD-. SENATE

active officers who were former members of the Czar's army constitute between 5 and 15 ·per cent of the total number of officers. Many noncommissioned officers, who received their training in the Russian Army during and before the World ,War, have been commissioned as officers ill the Red army. Frenzied efforts have been made to drill and qualify com· munists to receive commissions in the army.

It is hoped by the Bolshevik leaders that within a short time substantially all officers of the Red army will be communists.

General Brousilof, one of Russia's able military leaders during the World War, is connected with the Red army, but has ·no active service. I was advised by one of the leader officers 1n the army that he was engaged in the rather unimportant work of securing proper mounts for the cavalry. General Smolihoff, a brave and gallant officer under the · Czar, had charge of some cavalry maneuvers which members of the party and myself were permitted to witness.

'l'he Bolshevi.ks have been compelled to greatly modify their earlier views with respect to the discipline of the army and the method of procuring an army. In September, 1922, universal compulsory military service was adopted, and under the present law every male upon reaching the age of 21 years is required to enter the regular army for military service. If assigned to the infantry, the period of service is 18 months; those who enter the cavalry service arc required to serve three years, and the artillery and engineer corps service calls for three and oue-half years. It is apparent that with Russia's large population, if all males were called into military service when attaining 21 years, the army would greatly exceed 600,000. Several officers explained that some who enter the army serve but a few months and are re1ieved on various pretexts, and also that many who were subject to service were not actually taken into the army. I understood that they serve as labor units or perform civilian work in connection with the military operations of tbe Government.

As a result of the lax enforcement of tlle law and the many exceptions made, the size of the army is less than authorized by law and what, jndeed, the law seems to require.

It was difficult to learn just what the present combat strength of the army is. Important reductions have taken place since the £olish campaign. A report published by Trotsld with reference to the size of the army in 1922 shows that there were at that time 34 divisions of infnntry and 18 divisions of cavalry. There were infantry brige.des nu~bering 20 and 3 cavalry brigades. Tlleoretlcally a division numbers 30,000 men, but as a matter. of fact the average strength of a division is not in excess of 7,000; the infantry and cavalry brigades vary, the former being probably 3,000 strong and the latter 1,000. It is my opinion from the data available that the combat strength of the Red army is less than 400,000. In<leeu, a number of persons in Russia who had made some investigation were of the opinion that the combat strength of the entire army did not exceed 250,000. Of course, the field strength would be much in excess of these figures.

In addition to the Red army there are other forces available for militai'Y operations. The members of tlle Communist Party are well drilled and, as I was informed, were receiving constaut training for military service. It is well known that in the various conflicts in which the supl'emacy of the Bolshevik Government was challenged the communists were important factors in all military activi ties. There is also a state militia, which is used as a police force and which, as I was advised, has a considerable reserve. The personnel of this organization, as well as the personnel of the political organization known as the G. P. U., are selected from soldiers who have served in the army. I was not able to learn the total number of officers and enlisted men in these organizations, although various figures were suggested by persons who claimed some familiarity with the same, which gave totals of between one and two hundred thousand.

In addition to these various organizations, Trotski is now engaged in carrying out a militia program which cans for the training of all males behveen the ages of 16 and 18 years. They are subject to military training until they have reached the age of 21 years, the length of service, as I recall, being four months; and all males over 21 years, not presently receiving military training, are to be called for eight months' military service, spread over a period of four years, with a maximum of three months in any one year. Unrler this system, a reserve army is provided consisting of those who have served either in the army or navy, or have had the training required by law, and members of this reserve army are required to repeat their drill for one month each year. Employers are compeJled to pay their employees ·who are ·called into this service, during the entire period when the employees are undergoing military drill.

In my interview with Trotski, his attention was called to the reports that the Bolshevik Govemment was organizing a

powerful militia to supplement the Red army. He admitted that it was planned to create a state militia, but s8.id that " the Red army would be gradually turned into a militia." Whatever the plan or purpose may be in regard to a reduction in the army, the evidence obtained indicates that the Government is organizing a militia which will number several miQions. Nothing was brought to my attention, nor was I able to obtain e.ny eviden,ce, other than the statement of Trotski, tending to show that the size of the army would be reduced or that it would be merged into the militia.

As to the efficiency of the militia organization which is being formed, I venture no opinion. Members of the Military Affairs Committee and those who have knowledge of our National Guard are far more competent than 1-to judge upon this question.

The statement is often made in America and European countries that German officers were operating mUAition and other plants in Russia, producing military equipment and supplies. Careful inquiry in all parts of Russia visited failed to support sucll charges. Various military camps were visited and tens of thousands of soldiers were seen, but not a single German office1· was discovered in Russia.

The fact is that, notwithstanding the treaty of Rapallo, there is no great cordiality between the Soviet and the German Governments. It is my opinion that no German capital is being employed in Russia to build up the Red army or to provide it with war supplies or military equipment, nor are there any evidences that Germans are engaged in any Russian . factories or plants which are prodaciag munitions and war supplies.

The Russian Army 'is lacking in heavy ordnance, in tanks and transportation facilities, including motor transports, and also in aircraft and munitions and equipment of various kinds. There seemed to be a sufficient supply of small arms and of cavalry equipment.

An intensive compaign had been in progress for weeks before reaching Russia. and it was continued during the entire period that I was in Russia, for funds to purchase and to build adtlitional aircraft. An advertising plan of a most appealing character was carried on in all parts of Russia, and many workmen, merchants, and others complained of the coercive methods employed to obtain contributions to this fund. I was told by a number of persons in a position to know that large sums had been obtained by subscription and contributions from every part of Russia.

There was no concealment by the Government of its purpose to build up a strong military air force, and announcements were made that a large number of Fokker planes had been purchased and would soon be available. I visited a military aviation field near .Moscow, and saw a few German Junkers and one Handley. Page bombing plane. That great attention was being given to military aeronautics was apparent. The Government was also operating an air service from Moscow to Turkestan via Persia, and also between Moscow and Berlin.

There was nothing impressive about the soldiers encountered, but all seemed to be strong and vigorous and material out of which a powerful fighting force could be made. The Bolsheviks have discovered that discipline is necessary to create an army. The demoralization which followed the control of the arm:es by Kerensky and later b y the Bolsheviks was a painful but an impressive lesson to Trotski and to the Soviet Government. Accordingly there was a return to discipline, not, however, of so harsh and stern a character as that which prevailed in the Czar's reign. There is much comradeship between the officers and the privates when off duty, but the officers do not hesitate to assert authority in training the soldiers and in directing military operations. ·

Teachers are provided in the camps and the soldiers receive instructions from them. In one of the camps visited a number ~f soldiers were being instructed as to the effects of com.aLunism upon the land system. No books ''ere observed, but a number of Bolshevik newspapers and magazines were supplied the soldiers, among them being atheistic publications containing grotesque and sacrilegious cartoons, unspeakably foul and blasphemous. These publications are authorized by the Bolshevik Government and issued from its presses and paid for from its treasury. Political instructors, all of whom are communists, visit the camps and teach communism to the soldiers. It is frankly conceded that the Government desires that its soldiers shall be communists, and that upon their return tc. their respective homes they shall become active workers fol' communism among their families and neighbors. The efforts to remove illiteracy among the soldiers have been fairly suc· cessful, and many who were unable to read and write when entering the army return to their homes with this impediment removed. ' ·

C0NGRESSI0NAL llECOR'.D-SENATE APRIL 24

Maneuvers. of the ROO army we're being c<Yndttt't-etl in vftti.nus I -parts of 1tnssia du11ng the Visit -Of our 'pa.Tty, o.na many trains were employed ·in con-veyin~ troo-ps oo and from 'these maneuvel's, 'Which were attendetl by TrotSki ·and :nu}enny and other mili· tltry leaoers.

nre to c1lange tile face or 'tlie''Wo1'ld. TheS'e views have to -'do .Witb tbe !lted ·nrmy ·and Russia's militar~ prer,ared:ness.

'Trotski ln the 'interview reterred to 'Showed, wha:t I had · discovered, that there was no feeling of amity, bi:tt rath'er of bitter·:ness 'between the BolJ.shevik Gove'rnment and Poland. 'I'Totski stated that: "In the whole liistory of · SoViet Russia~s relatioil'S with Poland, Ilussia had shown 11 truly 'angelic' ' patience. 'Fr(}m the ifi~t. in spite of its agreements, Pol11.nd bad manifest-etl hestillty to Russi.a, hut tile la:tter was too senslble uf-the faict that war with Poland would signi'fy 11 general European coil.fl'agration which would result 'in 'the wiIJing out from tbe 'face 'O'f tho ·enrth of the 'remain'S C1f European ci:vilization."

.April 24, 1924

\Vh~reve1· -our pa'.tt:y went 'Soldie'ts were seen. In 'Cities and to-wn'S, ·antl at remote rail'tond stations, . the soltlier, With 'tlre red stn't in his cap and the tlfie attd bayonet in his hands, "9'a'S to be seen. In the trans-Caucasus distrid inform-ation showed tliat 40,000 soldiers were maihta1netl. Soldiers riom Siberia were met, Who Stated that many thousa:nds were kept between llre Ural Mountains and 'ttre Pacific ()eenn. An 61ftcer from 'Tur~un, n.s well as 'V;tl"ious perstms recently tll-ere, repo'ttei:I that a cO'I'l-Siderable tnilitary foree was maintained in that Russian Province and near the boundary of .Afghanistan. ln Mr. KING. Mr. President, Several ·weeks ago ·I addressed Armenta, in Aze'rbaijnn, -and along the •w-estern slopes of t thE:~ the Senate ttt length concerning conditions in Russia -anti. Uni.ls ~01·ces ~f W1e 'R'ed Rnny were found. ~Y observation of such conditions when in Russia in August

A.t Rostt'.>v our party met t'he fam:ous .. cavalry ·1eader 'Buj1mny. nnd S.eptembEtr,_ 1923. Bef-01'e concluding my <address, an adRe is the idol of the Red army rantl has been promotetl to journment was taken. Sinee then the Senate bas been so ~contl ·tn command. 'Springing from th'e s-011, the <son bf a poor 1(1)CC'trpied in the consideration o'.f the •revenue bill as wen us 11e-asant, h-e h'as risen by ·colil"trge ·and military genius to be ·a .other important mrosures, alll'd my w-0'1'<k has been so une:wus, commanding figure in Russia, and is entitled ta the distinction that [ have been ufi.8.hle to ·complete what I had intended t()I being called ·O'ne of the greatest ea~1ry 1leaders of Ms day. to say upon this ·matter.

Genera.I Bujenny sened in the Russian A:rmy during the I liave been asked by Senatol's to comple:te my statement, Wotld War iand Iras been with the Re'd a:r'my from the ·begin- ·and numerous Ietners ft-om various ·parts of the United States ~1n'g. rt woul'd 'be inter~ting were tlre 'full stors o'f his iex- have ui.-ged me to finish my speech in order 'tha't it might }lloits nrade ·uvallable to the 1''tlb1ic, and U -wouli:i throw 'much be publiShed in the RECORD. I ·apologize ti!> the Senate for light ·-cruo11 the fighting -qu'tlnties and. th'e ·corrdition of the nus- having 10011sumed so much time and nSk the ind'l11gence '0f ·sf.fin A'I"mJ' 'Whi1e it Wa'S a ta~tor 'in the World Wa:r, as wen ns Senators while I further 1direct their attention to varions the tragic and sanguinary conflicts in Russia's civil war between J>hases .o.'f the Russian -quemion which 1 believe eleserve cunthe Ileds and the Wlittes, 'when fatbers were O'J;JV<>Sed to 'Son·s and -side1~ti-on. rscms bfttm"ly fought .iagainst th'e fu't'ces in which tlletr fatb!ers I stated 'When I addre'Ssed 'the Sena.le on the 22d day olf heroicaUy ~ontended '.and d:ied. rt 'tV-ettia 'reveal the tea:s6n Why J'an'Ua'ry last tbat I iwas prompted to ·examin~ somewhftt Deni-kin nnd W'tnhgel and ~K~lchak ~iled and Wh'Y 'the Bo1S-he- 1 tin ·d.atan the Russia'Il situati-oo and to ·present the facts vik Government, weak and tottering and all tmt destreyed ·at I as I understood :them, because of 't'he ·pendency -of a res-times, survi'ved und bus grown in :strength 1llltil •at present its

1 <Yl'lli.tion ln .. the Senate deelaring in ~avor of tb·e recmmi

·autht>rlty is trot openly .thaUenged. 1For ei'X hours · we listened , ttton .of tlae !Bolshevik GOV'arnment by the L"nited States ~d to bis r~ital 10'f the tragic and aWfUl years, and ithe scetles he because many ;persc>n'S in ,.~ublic life a·s well as in vaTious -del)ictced b'rdnght vividly 'b'efeTe 'tne the heroic characters ·and '[)8'.r.ts uf the United States ha·d a<sked me to present to the the ct11el ra:ncl san'gtlinary <..tenfltcts described in Fi're and Sword Se_nate m~ rv-i~ws up.on The ?'eso'.l.ution ·and the result Of my lfl.nd otfue1r !books written by P&l-a.ndts great noveliSt Sienkiewicz. ~ observ:ations ·during 1a 'Somewhat ertended trip in Russift.

'Ilhet~ :are -a -nnm'ber •-of soviet "Initltary schools, 'from which · Oondithms in !Russia have n<:>t improved Hince I ·addTessed ·lf11eth~-ng .graduated ~vtel"Y year ~era.I thouga,r:td e'fticers. Sub- t!be Senat.e; indeed there has been .a recrndeseenee of rniHcal imnntllllty iall iare ch"Osen 'from the· peasant :and wOTkin:g classes. -colnmu'liism and the forces of p:ro~ress -a:n'd rreforni have :been They are schooled in communism, but to make it more palatab'le 1 'che'eked in th·ei'r !forward movemmrt. i believe, -h<:YWever, thnt 'eff~l"t!s ·a~ matle ta •clotlte the ereed With ·a sort of religious the renctl\lnary forces have gained 1a temporary '<ric-to:cy only 't'tl1eo. ''TN>'tskl has be(!lh 'adroit ~o"Dgh to ia'ppredate that the ·an'd that 1the siilent -and p<twer'ful ~lem&tts ·•f!or pT0gress will, 111egattn11s 0'f 'emmUitlsni 'Will 'rtdt •sa-tisty ' 'the Slav tempe'l'ament, thougb sloWly 1and haltingly, ·resume Ureh- forward maTcb. 'With 1.tts1 ~moti'dml.lism -'and its 'ingrain·ea rellgtous traits, ·and in , l.Mforms a'l'e n·@t uni'form in their •de-vel{lp'ing moV'ements. 'fl'rlil"l'es 1-0'f rettltlrkable cle1Vern~ he ' bas Shown bow some ·of 1 Thare are -shaTP advances ·iantl recessive mavemeni's. Such is rue \')U'hWl'rd ' f<Jrrrfi; ·fottnCl in &e re\ifgious ~l:'.e'l'cises 11.n'd a:cti'Vi- 1 the case m Russin. Undoubtedly the :situation is discouragm.,. ti'es of tfu:e people with lttotliti'.ca'tions ·could be etnplbye·d to ' 'tt> the liibern:l 'forces in Russia, and it needs stout ~ iheaTts and 16'ress C!6:ftl'nWrnist·tet.rcbtngs and •cover 'the gssoclaticms and inter- ! '!rlt'.>1'e than b!Uma1;1 faith to ·meet the appa-rently Tiisurmountcourse of the peof)'le. able obstacles which must be overcome before J'tngsia emerges

Act?Ordtngly 1emm.untsm ts to 1be 1n:vested iwit'h the a'tmosphere 1nto ·ute light of freedom. -Or a 11reltgi&Us cult. rt 'is to i>e rega'"t'ded -as 'the htghest e-xp.res- · 'THE J'JCWxsa sI'l'uATxo'N.

'Sf~ .of a1ttuis-m a.ind 'liuma111ta:ritt:n!ism. H tis to ' 'be ·a-pproa:ched. The .prevailing qpinion outside of Russia is that .the .Balshe-.llfV'i.!h 1a ~v~rm:tt ·spi'!"ft, "Wi~ 'SO'Ibetl;ti.ng 'of ,ttre ;.dmrotio:n which , vik ·revoluUon was the resu4 of :Jewisb intr"gue .and activity, :animates 1!he R'llssin.n. pea:sa'tlts antl orthodox: .believers ·when and that the .Bolshevik leaders .from .the begiuning have been 'tlhey •enrer 'the great 'ca'the~als 't!-rra Usten1to the 1ngpir41g m."tisic I and .still ar.e, :·almost exclusively ..Je.ws. "'l'he facts ao .not s~ mi.ii ~be 'll~y ·and 'chants, which affect even -the most ·stolid port this·oP:infon. ·n is midoubterlly ,true .that :the .Jewish race ·and unpemltent. 1 fmnished a greater .Proportion, based upon its numerical

Thus ·th~ "S'c:Jtnfg mfitta'r'y lea:ae1·s a~d .soldiel".s a.re taught to strength, than · any oilier J?ace actively ,partic~pating in the rega'td ' ttiemselves 'as the guardians o·f a sn.cred cause, the td- revotu'fion and in t'he organization of tne Bolshev:ik Gove.rnUtnp'h o'f wrrtch ·mu m:tng tne'ttuble happfness to thee people of ment. fhe wbrtd. '~his ·course Wrtds to satisfy Those· who .can not for- The ,population of thi:l Russian Emptre at the time of the get the icons and the echoes of pries'.tlt voices, and the solemn ·revolution was approximately 100,000.000. Of -that number and beaut~'ful cerenrtmies attendant upon marriage and chr.is- 1 about 1;000,000 were Jews, inc1uding .those .found in ·Russian terrmg. Anl.l so it is ·to ·be ;quite proper · to. make the enterillg Poland. The ,Communist Party., which ove-rthrew the ,Kertn'to a marriage . contract an:d tb'.e christening o'f the child the ens'ky government and seized tlle rems of power, mumbered 'oc~asion "fO'r a rlmpsoatcal peroration about idealized hum.an- at .tile time approximately 150,000. No i.nformation was .avail'it'y and a g'lo~i'fieiltion of 'the spirit and aims of communism .able as to the nu~r of Jevvs in the Bolshevik .P.udy .at ·#hich it 'is alleged Will Urik all nations together in peace t'bat time, but -it is certain, llow~ver, that tbe Je:ws constitute.a 'fttld ft'nte'.rnity. an important element :m the :party.

As 1tereinbefore inaicate'd, tbe ·Russian ,people, whetl10r com- Reasons w.ere assigned by Russians and ~fews, with w.hom mtmists or .noncomm~iSts, believe that n..ussia .is destined 1 talked, why ·so many Jews 1were found in what .\vere aalleCI to be a 'Wot'ld power. The thought is e:zj)ressed by many in the Czar's time · r.evolutional'y organizations. It will ,be ttussiuns tbat controversies with otb.er powers al'e inevitable, remen1he1:'ed tbat -a.mong tp.e so-<::iHed revolutionary p:u:ties und that Russia's ·m<>tements in the East will bring her into were Nl,hilists, .Annir.ohists, Social revolutionists, llensheviks, conllict with Gren:t Britain. The temperament of the -Russian . and 'Bolsheviks. J3oth the · nolsl1eviks and the .l\fe.nshf7viks lends itself to expansive movements; and .peasant as well .as claimed to be the true disciples of l<arl Marx. 'JJhe Bolsheviks stu'dE!nt, and Writer, and statesman, often dreams .of the .heavy repi:esented e:x:treme communism, such .as was enfoxced l>w tread Of ltussia beyond her present boundaries. Call .it nation- . them .after they .gained cont:i;ol of Russia. .~he .Men&hev1ks nlism or imperialism, 'it fits in with the fantasies ras :well as sought .rather by IOi·derly ,processes, ~ by t:iducation, .a~d by evoth.e creed of the connnnntsts that they, · through the -Third 1ution,· .to 'bri:Qg about modiliaations .and changes .in the.:R.ussian International and other agencies, including military force, Qc'.Jvernment. ·

1924 OONGRESSIONAL RECORD-SENATE

The Social Revolutionary Party also demanded reforms and material changes in the structure as well as the administration of the government. Under czaristic r~gimes the Jews bad been greatly persecuted. They were forbidden the right to reside in many parts of Russia. The universities and higher educational institutions were denied to their chlldren and many occupations and business activities were closed against them. Pogroms were instituted by ignorant and fanatical persons, oftentimes connived at and encouraged by officials of local Provinces and of the general government.

Many brilliant men and women of Jewish families, desiring educational advantages, which were denied in Russia, went .to Paris and Switzerland and Vienna and to other parts of Europe. There some came into contact with radicals from various countries and imbibed the revolutionary spirit which was developing in Europe. They learned the philosophy of Karl Marx, an<J believed the structure of society was wrong and that capitalistic governments should be overthrown. Upon returning to Russia they, as well as others who had received some educational advantages in Russia, became members of various revolutionary organizations there found. Their llnguistic attainments, their ability to wield facile pens, write political pamphlets, and organize propaganda mov~ments gave them an important standing in such organizations. Some became leaders in these revolutionary parties, and the influence of the Jewish members of the parties was out of proportion to their number. A few came to America, where they led a rather precarious existence.

With the breaking out of the revolution some who were in America found their way into Russia and there joined with I. .. enin and Trotski and other Bolsheviks in the revolutionary work in which they were engaged.

Trotski, Kamenev, Zinoviev, Radek, and other Jews have exercised, and st111 exercise, great influence upon the policies ancl activities of the Soviet Government. But the number of Jews who belong to the Communist Party is not as great as is generally believed.

Those familiar with the Russian revolution and conditions since then know that the Communist Party in Russia has controlled the Bolshevik Government and is the force that has to be considered. If the Communist Party was to fall to pieces the Bolshevik Government, it is believed by many, would be destroyed. It is important, therefore, to know son;iething of the strength of this party. Its membership has fluctuated greatly. From 150,000 at the time of the revolution it increased to more than 600,000. Upon two occasions general " house cleanings " occurred within the. party and thousands were expelled. Some left the party because of their disagreement with its policies and others because of their disapproval of the new economic policy forced upon the party by Lenin.

The newspaper Pravda, the official organ of the Communist Party, ln one of its recent issues stated that the census taken in 1922 showed there were 4).0,000 members. Questionnaires addressed to communist organizations in Siberia and the Far East were not at hand when the tables printed in the Pravda were prepared. But it accounted for 375,693 members, giving their nationality. It ls stated that there are 100 nationalities represented in the party, Turkestan alone having 57 races; the Ukraine, 54; Georgia, 48; and Azerbaijan, 36; whlle central Russia is represented by 72 nationalities. The following is the table printed in the Pravda:

Nationality

Great Russians (Russians) ...•.••••••••••••... Httle Russians (Ukranians) ...•••••••••.••.•.. White Russians ................••..•.......... 1,atvians (Lets) ...••••••...•...•••.•.••...••.. Georgians .......••••••••.•.................... Jews ...........•••••••••.......•...••......... Turko-Tartars .•.••.••••••••..•••.•••••..•..... Armenians ......•..•...•.••..•••••.•••••...... Poles .........•••••.•..••..••..•.•••••••.••.•.. Lithuunians ....•.•.....•..••...•..•..••••..•.. Germans .................•...•••..••...•••.... Osetins (Northern Caucasus) .....•.•...•...... Kirghiz (Southern Ural Steppes) ...•.......... Uzbeks (Southern Ural Steppes) •••••••.•..•.. Turkomen ......•............••••....•...•.... Esthonians .................•.•.•••.••..••..... Mordva (Upper Volga) .•••.•.•••••••.•••...•.. Chuvash (Upper Volga) .•..•.••••••..•••...... Finns ..........•....•......•.....•...•.•...... Persians ........•.•••.••.....•.••..•..•........ Hungarians ....•.•.•.•••....••................

Total member·

ship

270,409 22,078

5,583 9,512 7,378

19,564 6,534 3,828 5,649 1,472 2,217 1,699 4,946 2,043 1,000 1, 964 1,632 1,054

938 709 533 . I

Number Percentage per thou

of total sand popu· la ti on

72.00 5.88 1. 47 2.53 1. 90 5. 20 1. 72 1. 02 1. 50 .39 .f>9 .47

1.32 .54 .27 .53 .43 .28 .25 .19

1.14

3.80 .94

1.67 78. ()() !. 52 7.20 1.19 2.91

10.80 32.80 1.93 8.00 .89 • 76

1.00 16.30 1. <i7 1.31 7.96 1. 42 2.97

The article further states th~ other races in the table have a total membership ranging from 1 to 400, amongst the races

being Mingrel, Adjar, Kabardin, Lezgin, Circasians, and many of the Mongol-Finnish tribes in northern Russia. The high . percentage of communists, based upon the population, of some of the nationalities is accounted for, the Pravda states, because "so many of the communists are refugees in Russia and they are tabulated as against the Latvian or their respective populations within Soviet Russia."

Reference to the table will show that the total membership o.t Jews in the Communist Party is 19,564. In other words, with a membership of 410,000, nineteen and one-half thousand are Jews. ·

There is a committee of nine persons, viz: Lenin, Trotski, Rykov, Stalin, Bukharin, Dzerzhinsky, Tomsky, Kamenev, and Zinovlev, who exercise the powers of the Communist Party and carry out its policies and direct the administration of the Bolshevik Government. Lenin's death created a vacancy whlch has been filled, but I do not know who has been added to the committee. Of this number, three, namely, Trotski, Kamenev, and Zinoviev, are Jews. It ls therefore entirely correct to say that the Jews do exercise a powerful influence in the Bolshevik Government. Trotskl and Kamenev are popular and influential with the communists. It was freely predicted by communists and noncommunists that if Lenin were to die, Kamenev or Trotski would be the outstanding figure in the government and in the Communls_t Party. To many the relationship of these two men is known, Kamenev having married the sister of Trotskl.

But the situation of the Russian Jews ls not as happy or secure as superficial investigations might indicate. Even among the Bolsheviks there ls manifested from time to time an antisemitic feeling, and · throughout Russia there are growing signs of a recrudescence of the anti-Jewish spirit. Indeed, a number of persons, familiar with conditions in Russia, stated to me that the growing Russian nationalistic spirit was in part due to the predominance of the Jews in the Bolshevik Government and the general antipathy felt toward the members of that race.

The figures above given, with the percentages stated in the table, would indicate a much less number of Jews in Russia than the information imparted to members of our party warranted. Numerous inquiries made in Ukraine brought the information that there were three and one-half million Jews therein, and it was repeatedly stated by residents of Russia that there were between 1,000,000 and 1,500,000 Jews in European and Asiatic Russia, outside of the Ukraine. The best ln· formation obtainable was that the Jewish population of Rus~ia, European and Asiatic, was between four and five millions. It will be observed, therefore, that the number ef Jewish communists-19,556-infiuential though many of them are, does not give to the Jews that preeminent and dominating position in the Communist Party and in the Bolshevik Government that is attrilmted to them by many persons.

The evidence establishes that the Jewish communists are very dogmatic and many of them fanatical and vindictive. They have been among the greatest persecutors of their own race who were not communists. The testimony seemed to be incontestable that it was the Jewish communists of Minsk who enforced the order of confiscation of the beautiful Jewish synagogue and its conversion into a Bolshevik club_house; and equally credible evidence established that some of the local communist Jews in the Ukraine were instrumental in procuring the order for the closing of 70 synagogues. However, before the order could be executed appeals to superior Bolshevik authority brought a revocation of the order. . And the same Jewish communists in the Ukraine are largely responsible for the persecution of the Zionists and other members of the Jewish race. They were the most zealous in preventing the teaching of the Hebrew language and in the closing of Hebrew . schools and the banishment to the icebound coasts of the Arctic Ocean of a large number of God-fearing and high-minded Jews, whose only offense was their belief in the faith of their fathers and their desire to maintain that faith and to expound it in the Hebrew tongue and to keep alive a love for the land which David trod, a land which will ever remain sacred to those who appreciate the contributions that Judaism has made to the civilization ancl progress of the world ..

The Jews of Russia, aside from those who ar~ members of the Communist Party, are not Bolsheviks,. nor do they indorse the materiali~tic creed or the atheistic teachings of the communists. Tliey are law-abiding citizens, anxious to do their full part in the development of Russia, and to li>e in peace and accorcl with all persons. The normal Jew believes in private ownership of property and in a large measure of individual liberty. He likewise wants full opportunity to exercise his religious beliefs and feels tl~at he is entitled to equal protection with all other classes or races.

7050 t:JONGRESSIONAL RECORD-:SENATE APRIL 24

I had ·opportunities t.o visit Jew.ish homes and meet rabbis and teachers and traders and business men., and many in the humbler walk.'3 •Of Jife. I .attended their re1igi0us services 8.Rd witnessed their devotion to the faJth of their fathers. We via. ited orphan homes, supported by the charitable Jews of America, and saw many of the 70,000 .Jewish orphans in Russia who are being cared for with oontriblil.tions fi'om rthe Unined States. Hospitals Me being maintained and large amounts '1lave been expended by generous Americans ±n .helpiug Jewish families ·whose misfortunes llave ·brought tbem to misery and ruin. Agricultural implements, valued at tens of thousands of dollars, have been shipped to eJwisll agriculturalista, and cattle and hors<'s have b€en purchased to ena\lle tbem rto farm the lantl:s Which tlleiV rOCCUJ)ied, and sappo.rt their 1.mpoverished families. It is a pleasu:ve t.o pay tribute to the great humanitarian work perforlll€d in Russia by the generous .&ncl high-minded Americti.ns of the Jewish .race.

Theoretically cammunism ignores races or nationa.LiJty, but, as indicated, e11en with 0communi'sts .in Ilussi.a, the 'tra<il.:i:tioflS, as well ns the .racial prejudices, which ·have eKisted for <?enturies, ln.ftuence the conduct of Bolshe;y,iks toward the .Jews. Undoubtedly leading ·o.fficials .and some since.re und consi£te11t communists struggle against this prejuruce, and th~y ha.ve 1been im;trumental ,in a numt>er of instances in ).ilrevooting an.tiJ ·ewish maniiestations wl1i-ch might bav-e culminated in !J>Ogroms of more or less ,severity.

The Jews have suffered greatly under the -communist rule. TJ.iey were .la~gely ·the .traders and .middlemen e.nd were also en;.;aged in many ·large .and tProductive enterprises. T:1>1e iPJ'Qgres~ in the Ukraine prio-r ,to the war and iits ·riches and ·superit)r position among the tgreat Provjnces of !Russia were due in part to enterprising Jew.isb lenders and to their efferts to dev.elop the l!esotU·ce..., of the oounti:y. They bad :ru:i imp'@rtant pant da ostablhtlling "'tlle .beet :sugar industry and ;wel."e active in industrial enter1lrises Wlhich funnisbed .employment to the @e~le and contrib'l:lted to tlle pooSJl)erity of the country. ·The oonfisea.tion of all property affected the Jews more, relatively, .than it did other clas.IJe.S .of the pop:lllation. This because most -0f the .-Jews li'red in the cities and towns where a)J. ~oper.ty w.as swept a-way by confiscation. Tllose in ltbe countcy could pbtai.n some food suppli~s if11om the ii.and,, .except in ;the days Iii 1the famine; but those in the cities we1•e reduced -to the .greatest exkemi.ties, and except i:n .the famine regions their swreril\gs as well ,a,"S the mmtalitF arucmg t.11em rwas -grea.:test.

Bllt tdle tutuve of the .Jews, as stat.ea, is not sec.ure. 1.A.n eminent Rnbbi w;ben usked -wl1at the futw-e of the .Russi.a.ft .Jews W10uld ue r~pliecl: "One-third .wm 1Peri&h, flne~third will be assimilated ,by the Slavs, an.d one-tbh•d either driven from Russia or becauae fOf pressnve o.r J)ersecution •wii.ll Illig.rate tg -other ·countries." Alren<.ly in tile Utkiraine the.Pe a.re·m!lllifCBtatians 1of hostility to tbe Jews. In the Dlliliversicy of Ki-ev .a mumber of Jewish professors have been rel~ved of ;their ipos;itions. so .that now but one Jewish professru- and ;a very few assistants 'ftre employed. Applications for positions b~ hlgbl~ trained and emnpetent p.rofeslilOrs of the Jewish race were denied, iDotwitbstandiag the paucity of oom]Det'ent tea.cllers in ·the higher. instltuti-0us of leair.ning. Fifteen Jews were deJ)>oDted fr0m tllle Ukraine within 10 days lll'im' to the aDrival of the party at Kiev.. Tills wns done wiJ:hout triaJl, th~ reasons alleged being that they wer11 Zionists.

COURTS

The Bolshevik r~glme when it ga;ned power promptly aholished tfhe judicial system ·existing in 'Russia. TJ;ie -eon-1lscntion . of all property in the great social and political upheaval ·called, as it was felt, ':for a new system. A comparison of the existing judicial code and the methods of judicial procedure with the Tevo1utionary, cbaoti:c, and bl.zarre methods pursued in ' the earlier days of Bolshevik rule reveals the progress toward sanity and enlightened policies wbieh have been made. Both criminal and civil codes 'ha-ve been enacted wbich, while defective and containing many absurdities and injustices, ne-vertheless seem to indicate a general purpose to promote justice. The jury system is abolished and the control of the judges is ent'irely 'in the hands of the 'Soviet uuthorit'ies. Many of the Judges have been named ~ecause of their ardent communism, and few if any have been appointed because of their knowledge of jurisprudence or their acquaintance with law. 'The presiding jndge In Moscow was a baker and none of the judges, according to the information received, bad been lawyers or students of the law. Tbe same was true of tbe attorneys who represented the state, but now young communist lawyers fill a few of these pm:;itions.

Visits to various courts a:n-d interviews with prosecuting at· torneys satisfied me that, in the main, they were trying to get

at the facts tmd ·to do justice between litigants, and between 1ndlvidu4iils iand the -Oovernment. There ·seemed to be a 1growing clesire ta have the courts conform to the 1aw and to follow uniform procedure. The various ,statutes and decrees and ·codes appeared in ;pamphlet or book iorm, Ml'd the judges showed familiarity with tbem an.d the usual interpretation given them. Many of tile judges seemed 'humane and were solicitous ithat the rights of .persons charge Cl with · o:IIenses be protected.

The people are showing greater respect for and eanfidence in the ceurts, and .are more and ·more resortMD.g 1Je them to ·settle th.eir property rights and controversies. However, there was a strong feeling that .in oo.ntrowersies between rommunists .aml nonco.mmunists rthe former wer-e given the adv.a:ntage. A num-

1 ber of ']lerso.m11 stEtJted to me that ·they iwould not ;ret he willing to avail th€mselves of the oourts where their ttdvcrsaries were cQIIlm unists.

lfnfem:natio.n •conveyed was that ·now, ~m.s in •the :earltler da:ys Olf the :revdluO.on, the judges subscribed ..to the oath 1or stlltement that they would decide acoov6i1J1g 1to the "Te:volutionnry m· s0cialistlic conscience:" Of .caurse, .tbe ~olutionary conscience of the judges differs, as the size of the •chancellors' foot ·differs; rund the result has been, as Bolsheviks stateCI, that decisions upon the same facts, in di!i!erent parts e)f 1tlle count~y. 'were 'WboUy td.ifiereat, and thus ·'brought the c0urts iirto 1disrep.uite. Aiecoccting1y, an effort ha-s been made to ·ba:v~ the ledges b'eeeme more conversn111t with 'the la'W and to approximate uniformity in their decisions. In other woras, the Go'Ve.rnment '.i:J l!!eeldng certairrty, iand -the officia:JS ·are des'irous of brt:'inging greater uniform!-~ a~d order and j'l'Iet~<!e mto judicial procaecli·'l1gs.

Bar associations are being form.ed, the membership heing laTgely ·compesed of lawyers of tlre prerevolt1.tionary c'.lays. Mtu1y yo'Bng men, ~me of whom are ~ommunists, are 'becoming membeTs M the bar assoelations ttnd they an~ the olcler lawyers not lnfreq'l'l'ently appear in the conrts rettresenting litigants. However, it was stated by some that the y:dlmge'I' lawyers, and particularly t'hose of Bolshen'K falth 'ur sYmpat1li<:s~ more freque111tfly ap..I,>eai· ·and seemed to lrnve gr-ea'ter influeriee ·with tl:le ju<.lges than tlie -old'ei" hrwyiers. /

'De11emfants 'cluiTged 'With cri'm~s ·-nre entitled to counse1, except 'Where the cautt, upon · dne consideration, determines that the state shall not be repr~sented, fn Which event there is no proseentar unt1 tlre defendant is without counsel. r.rire fll eory i's 't1u1t th'e 'judge will reptesent both the st~lfe and 'he defendant.

· Where the tria-1 does not take the com:se ' just sugg~stecl, nncl the ae'fendant ff-es.ires couneel, the judge 'Commun1cates with t11e lnwyet"S' "coilegium;'' whicp l:s the buT as8ocration, and the preSidertt 1lcsign1ltes ·some attorney' to ·a:ct. The' judge is ·always an active party 7n 1the tria1 fff tci1ses1 w.betber ~crinfrmil or ci.v'il. Eie mny ·send for bOl'.l'ks and papers or witnesses -wlleneve1• be thin-k-s 'a-claitional :fncts may '.be 1.'>btained.

·Orre palpa'.b'.le defect in the ~udic1al sys~em arises from the fact that the Jianel Cff jud~~s eha:nges "almost daily. As stated, there ' R'l"C •no jutles, ·abd thf:l court clmsists of three judges; the preffitlling jutlge11s appointed by the -O~vern:m-ent, ·an'Cl the dtller two m~e 1tem;rtorary, serving 'for a 'few -days only and are selected from ryists JJl'epa-red by the nnions nnd workers' org-nnizations. 'Thi-s list is transmitted fo a ·eommissioa ·appointed 'by thesov'iet authority, 1lTld they pick from the list the two temporairy judges who usually sit for the da~y. In one ef the eam<t!!I visited, ilhe temporary judges -were both women, -appointed from rthe shops; one of them was suffering from some facial trouble and nppea:r-ed wi.th her face swathed in ba;nduges. The presiding judge, however, is the real power. He interrogates the witnesses, directs the procee<lings, and in most instances shapes the decisiom. The t~o temporary judges can overrule him, but in actual practice it rs sehiom tha't his v'~ews are not accepted by the other judges.

The state ls divided into politiea:l subdiv·iB:i:eus; namely, Villages, volusts, which consist of a number of vil'lages, ooiyzds, comprising several volusts, the ooiyzds co.r:respondi:ng to a county in -most of the Sta tes, al'ld -gubernias, ·e()mposed of '8. number of ooiyzds. ·

There are inferior .courts i;>rov.j.ded ~er the smaller politica1 subdivisions, with limited jurisdiction. Courts of gen.er.al jurisdiction exist in the gubernias, .and appeals are .allowed upon questions of law from them to the supt'eme ·court of tile province. There are also what are called war .and ,ttansportation collegiums, or courts, which deal with questions of .a military nature or gr0wing out of the ti'anspertation .activities of the Government. J:n crimina:l cases, bail may be allowed, but not as a matter of right.

There are many charged with what are called "economical" crimes, and the prisons are filleq with offenders cenvlcted of

1924 CONGRESSIONAL RECORD-SEN ATE 7051

economical cl'imes and caunter-revolutionary offenses. Within the first category come many acts and omissions. It is a crime to confer concerning, or to furnish information respecting, property confiscated by the Government. It is also an offense to " mismanage " Gov:ernment propeJ;"ty. As a reswt, many persons, communists and noucommunists, wllo are connected with governmental business activities are brought before the courts, condcted, and sent to :prll!on or exUed to Arcbangel or Siberia. Many persons connected with Government enterprises are now greatly concerned for their safety, because substantially all sucl! enterprises have deficits whicb have to be met by larger emi. ·sions of paper rubles or by increased tax~tion.

It is au '' economical " crime to violate a labor .or a cooper·ative bargaining agreement or to employ persons other than those provided by the code. Banditry and .corruption in office and counter-reiVolutienary acts may be punisl:\ed by death. As stated, a llroad meaning is given to the words "munter-revolutionary acts,." and many persons a.re still being arrested , and proseouted wider this statute whose conduct under any l"eusonuble interpretation of the statute and under a just and· humane system -0r luws wo.uld not warrant their prosecution.

PR1SONS

I visited a number of prisons and talked ·with many of their inmates -and examined the rooms and cells in which they were imprisoned. Generally speaking, the prisons were fairly clean anti sanitary. The prisoners seemed well nourished and were reasona01y content with their surroundings. One of the prisons vislted ·contained several hundred political offenders. It had senoed the purpose of a military prison under the CzaT's regime. Hern the :coo.ms were commodious and ,scrupulously clean. Tl!ere wene a number of priests of the Roman ·Catholic Church in one of the prisons -visited. They weFe charged with having opposed the seizure 01: chmch treasures by the Government. l\.ly information was .that there had been no physical force inter_pose·d by the priests to prevent the llooilhevik ·Officio.ls from removing file seized property from the churclles, but many priests of both the Orthodo-x and .RODllln Catholic ChurChes ha:d been arrested and bnpnis-ru1ed becallISe of their alleged opposition to such Eeizur.e.

In a prison m · Moscow I visi~d Archbishop Zepilack, the venerable prelate of the Roman Catholic Church who was serving a sentence of :LO years. From all that I ecmld learn his conviction and sentence wffi.·e so unjust as to prove.ke, not only resentment in Russia, but widespr~d condemnation. His sentence was eommuted to 10 years• solitary con'finement. Learning tbat be was ccmfined in ·one .of 1!he fa-moue prisvns in Moscow, I ·sought perniissi0n to visit 'him. · My request \VllS granted ·and he was 'brnnght f:rrun lJis prison cell into the office, .whe11e prison authorities were present, and I bad -OJ!pg.rtunity to converse wftb llim for a few minutes. He occupied n small cell ·which lacked convenlences 'fc:>"Ond in modern prisooB. He was cheerful, bat 'his appearance in~icated lmpaired health and heavy drains upon bis vitality. I learoea that negotiations were being l-Onducted ootween Soviet authorltles and the PolHHi Government, and another1m:partant organi.zation which I felt sui·e weuld culminate in the release -of ArChbiF.!hap Zepilack withfn · a sb:ot't period. We were B.dvised a i!ew days ·ago by Earopean diRpa.tches that the venerable prelate had been escorted to the western borders of Rnssia. a:nd haetlly, inaeed, brutally put across -the 1ine into Poland. Th~ aecotmts stated that he was in a m~st pitfirble condition~ sho-wmg serious e:ffect-s from 'his long confinement. He was 'Withcmt snitab'.le Clothing or means for the conttnulrtjon of his joUl'ney.

In some (ff the prisons many of the inmates were engaged in various ki-nds of empleyme:nt. Some were engl\ged in ·metal · sh-Ops, -othet's in the manufacture of paper boxes and '8. variety of commodities. Generally speaking, the authorities in ·charge of prisons seemed to be humane and interested in the welfare of the prisoners.

Political prisoners -were found in a number of the places vtsited. Some we-re charged with ·being anarcltists and others as counter-revolutionists. A .compn.rattvely large numbeT were held for trfal or hnd been convicted of graft, bribery~ and corruption in office and many of la:rceny.

I can not speak with any definiteness as to the condition of prisons other tlrnn those visited. The information which I . obtained ··wnB uncertain and in some respects confticting. I was " unable, though I made inquiries of the Bolshevik leaders, to learn the number of persons imprisoned, those held by fhe Cheka, and the number wbo had been exiled. I did learn, however, that there were many prisons; that many thousands of persons had been exi1ed to Siberia and to cold and lnh<>spitable reglons in northern Russia. The number of polftlcal prisoners..: undoubtedly 'Is 1ess than during the period between 1918 and

1022. However, 'R large nnmber are being held by the various political organizations .. and toousaE:ds have been sent to Turkestan, Siberia, nnd to pri:son camps and stations along the White Sen and to points contiguous to the Arctic Ocean.

I talked to a number of persons whose friends and relatives were in prison or had been sent to penal colonies in Turkestan, Siberia, and to prlson camps within the frozen regions of northern Russia. I also met persons, both in Russia and in Germany, who baa been imprisoned by the Bolshevik Government or whose relatives and friends batl been or still were in prisons or in the camps provided for exiles. Substantially all stated that in the earlier days of the Bolshe-vik r~gime conditions in the." prisons were horrible~ that they were overcrowded; .that all classes ·were thrown together in dark, filthy, and insanitary plaees, where they were subjected to brutal and cruel treatment, to indignities and hardships. including starvation, which resulted in appalling mortality. My information was that conditions bad eonsider&bly improved .and that the11e was more. b.umanity shown to prisoners now than :formerly.

FOREIGN-RELIEF ORUA?\"IZATlONS AND HEALTH CONDIT10N

For several years, and particularly during the famine period of 1921 and 1922, vari9us relief organizations were actively engaged in distributing food, clothing, and medicines among the R~ian people, The Bolshev,ik Government received these organizations with considerable reluctance, and at first sought to hamper 'them in their mission of mercy and salvation; but the fine work which was done and the scrupulous avoidance by all representatives and workers of political discnssloru;;, and a comp.lete abstention from participation in the Government, local or general, soon affected a change in the attitude ot the Government toward the relief work. However, in some Provinces, local Bolsheviks I>lace.d obstacles in tlie path of the relief wo1·kers and greatlY hampered their efforts. There were instances in which Bolshevik officials diverted the medical and other supplies to the army and into channels for W'hic'h tt was not designed. But, genera'lly speaking, it should be said that the '.BolShevik Government cooperated with these organizations in their humanitarian work. The testimony was mliversal, as it was brought to my attention, that the lives of millions were saved by this timely intervention. When it is known that the destjtutlon was so great and the agonies and su1Ter1ngs so frightful fhat thousands became insane and parents de:vo:ured their own c'hlldren. and entire communities extste<l upon root(s and -the barks of trees, and that these conditions were found in a territory perhaps larger in area than the entire United States east of the Mi'ssissippi River, some sllght 1dea can be obtained of the tragic and awful eitaati<>n. Entire -villages were ~wept away and hundreds of thotl'Sands of ,People Jled, seeking escape from ·death. Steppes and plains were dotted with the fi.eeing forms ·of ald -and young, tbousRnde of whom 'fell -and died l>y the wayside.

Many who fled survtved but did not return ; others wanderea, and stlll wander, in the various parts of Russia, borne- · less and tlazed from the h0i"I'6rs and -experiences throllgh which they passed. 'Members of OUT party met 1:aTge numbers of those who had 1led from the Volga -district into Si1'Jreria and other parts -of Russia returning to the districts from which they had gone. The boats upon whtch some -ef -onl' pa-rty t~a"V· eled down the Volga River were crowded with pea:sants, ID8illY of whom -were returning frem Siberia ; ·others froon dlll'l'erent parts of Russia seeking the vi'll:ages from which tihey had 'fied. Their condition was pitiable in tbe extreme. 'Theiy were without sufficient footl and few had elot'hing to protect them. U ·IK>D (l'eaching the vl1lages -where they had formerly resided they would find, in many fnstances, that all lands had been di&trflrnted and that n6 :provision had been made for them. This would necessitate tbclr departure to some other -section where lands were still · ava~lable.

Thcrrrsands of children during the famine perkYd were sent , by the Government into various parts of Russifl. where 1t WllS hoped they would be ·saved. 'Stm others found their way into Czecho' Slovakia and other near-by ecmntries. We met hundreds of these ehi1dren, many looking well n<>urlshed, who were returning from the _plaees to whi'Ch they ·11;ere sent. They were being ta:ken by tbe Government to their h&mes, where it was th011ght that if relatives were not discovered other pea-sants might be found to imdertalrn their care. I l~ltrned that some villages from which children had been sent were entirely -destroyed, the population having, in part, perished, tha balance ha-ving sought hemes elsewhere.

The reperts received in Amer'iea during the famine period were not exagge-ated~ Millions died from <lisense and starvation~ and hllildreds of thousands of orphan children now .fin homes maintained by the Government or lead fugitive and _vagrant lives in the cities, ·towns, and villag~ Many, how-

7052 CONGRESSIONAL RECORD-SENATE. APRIL 24

ever, are receiving care at the hands of charitable persons whose :resources are so slender as to make their own existence precarious. The sufferings through which many of the children passed have left tragic impress upon their frail bodies. Many are stunted and thousands show unmistakable evidences of long periods of undernourishment. l\:lany are tubercular and a large number are suffering from malarial fever, as well as other ailments.

I was unable to obtain accurate :figures showing the number of orphans and homeless children or the number of orphans' l}omes and the number of inmates. The figures submitted to me show considerable variance. Statements from two persons who had traveled extensively throughout Russia in relief and charitable work were also divergent. One stated that there were over 1,000,000 children in orphans' homes and institutions and 3,000,000 orphans and destitute children outside of the homes, most of whom were suffering from malnutrition and were without clothes for the approaching winter. It was his opinion that large numbers would die because of exposure, undernourishment, and diseases which would flow therefrom. The other person gave it as his opinion that there were more than 2,000,000 orphans in Russia, and that there were hundreds of thousands who were lacking food and clothing. The Government is endeavoring to cope with the orphan and destitute-children problem. Hundreds of children's homes have been established, but .the number is wholly inadequate to care for the orphans and the thousands who are waifs upon the streets or who can not be provided for because of the impoverished condition of their parents. Many of the homes are insanitary, wretchedly equipped, and afford insufficient food and inadequate warmth and clothing for the inmates. Distressing poverty exists in cities, towns, and villages, and the present winter will bring to millions of Russian people intense suffering, sickness, and disease, and to lmndreds of thousands premature death.

Through these organizations many hospitals were partially equipped and medical supplies furnished. The medical fraternity of Russia cordially cooperated with these organizations and their physical wants were in part supplied, thus rnabling them to get sufficient strength to effectively aid in meeting the frightful conditions e>..'isting.

To Petrograd alone 25 carloads of medical supplies were sent, :and from there distributed within the city and over a very large area of northern and northeastern Russia. Within that extensive district 20 per cent of the people during 1921 and 1922 suffered from typhus, and the victims of tuberculosis reached anprecedented heights. Inquiries brought information that throughout Russia there has been an increase over pre-war conditicns in the number suffering from tuberculosis, syphilis, and other diseases, and that at present an epidemic of malaria prevails in all parts of the country. There is great need for public health physicians as well as regulations, and as indicated the hospital facilities are wholly inadequate for the needs of the people. I visited a number of hospitals and found but few that could be regarded as satisfactory. Most of them lacked supplies, equipment, nurses, and an adequate medical staff. Some were unclean, insanitary, and lacking in nearly everything which hospitals should have. There is great need of physicians and surgeons in all parts of Russia. Most of the people are ignorant of the ordinary laws of sanitation and health. Fortunately, the medical schools are crowded, many of the students being inspired with a sincere desire to equip themselves for service among their suffering countrymen.

In the United States there is one physician to every 800 of the population. In Russia there is but one physician for every 6,000 population. Inquiry revealed that in most rural districts there are no physicians, and the health regulations, if nny exist, are archaic and not enforced. It should be remembered, however, that not only in the World War but in the civil wars of Russia thousands of physicians perished, and the mortality in the ranks of medical men has been very great since the end of these intemal conflicts. Physicians were classed as bourgeoisie, and their sufferings for lack of food, clothing, and shelter brought thousands to premature death.

This dark page of death is a tribute to the fidelity to duty and the devotion to the ideals of their profession. Undernourished, starving, and Qying, the Russian physicians went among the suffering people of Russia, serving and saving, counting naught of themselves. Lack of sanitation and health regulations and the indifference of the people to the rules of health, indiscriminate assoclation of those afflicted with contagious and other diseases with all classes in the various communities, hunger and. exposure, all of these and other conditions la~d heavy toll upon the Russian people and aided in bringing about widespread troubles, economic and otherwise, from which Russia has suffered and is still suffering.

Typhoid, typhus, cholera, and other diseases added to the woes of an afflicted people. Hospital facilities were wholly Inadequate and medicine and hospital supplies were practically nonexistent. Accurate information was not obtainable as to the amount expended by American and other foreign relief associations in Russia. Figures were stated giving a total of between $50,000,000 and $100,000,000. Those who contributed will have the satisfaction of knowing that their contributions saved the lives of millions and gave succor and sustenance to millions more. The work of the American Relief Expedition and the Jewish Relief Committee and the Friends organization were very effective. I do not mean to imply, however, that other organizations were not equally as effective or their work less valuable.

1.'he Bolshevik Government, in dealing with health problems, is confronted with similar difficulties met in other governmental activities. It lacks competent men and is overwhelmed with an ignorant bureaucracy. Lack of revenue also is an obstacle to the carrying out of desired reforms, but progress is beiu~ made, and the health of the people is improving, and sanitary and hygienic measures are being gradually but slowly put into operation. .

LABOR

Information obtained regarding labor was not as complete as desired, and the facts stated may be too isolated to warrant broad generalizations as to the labor conditions in Russia. First, as herein indicated, perhaps 85 per cent of the population belong to the peasant class, and they have no connection with labor unions or labor organizations. Before the war employees in factories, manufacturing plants, mines. and mills were organized into affiliated unions. They had gained many reforms and were rational and temperate in their demands. Within the unions were found many able men, students of political and social science, who participated in some of the liberal movements directed against the evils in the czaristic government and to accomplish needed reforms in the administration of the government, as well as its fundamental and substantive law. Some were communists and a considerable number were connected with the Menshevik and Social Revolutionary Parties, but the overwhelming majority were not connected with political parties or the political struggles that were being waged. ,

Some of the workmen in the factories, particularly in Petrograd and Moscow, gave their support to the Bolshevik revolution. LeniTJ. bas stated that without the workers, referring to members or the union, the revolution would have failed. nut after the Bolshevik Government obtained power it attempted to, and .quite effectually did, destroy .the unions. The members of the unions, as well as the people generally, were subjected to a despotic mHitary control, and both men and women, commtmists aad noncommunists, indeed, all the population between certain ages, were made subject to the orders of the Go>ernment. The communist formula adopted made all persons the children of the state, every movement of their. lives being directed by the Government. No wages were to be paid, no compensation was to be allowed, all were W"rkers in and for the state, which owned all property, controlled and directed all industries, and subjected the people to a species of servitude. The condition of the workers during l:his period of military communism was wretched and debasing in the extreme.

One of the signs of progress in Russia is the improved situation of the workers in the factories and mills and plants. Association with many workmen and visits to numerous plants, wills, and mines afforded satisfactory evidence that,. though wages paid are exceedingly low, the workmen are enjoying privileges denied to many Russian citizens, and are able to obtain more of the necessities of life than the great majority of the inhabitants of Russia are able to procure.

Labor unions now exist, although their power is restricted by the Government, and their freedom greatly curtailed. There are 22 branches of industry that are organized, and these are combined into a federal union, of which Tomsky is the head. He is one of the ablest and most powerful of the communists. Indeed, he has become so powerful that he is one of the committee of nine which controls the communists, and, therefore, the Bolshevik Government and Communist Party. There are 967 important, or key, leaders in these 22 unions, more than. two-thirds of whom are actually members of the Communisl Party, and many of the others are either communists or are supporting the Soviet Government. A majority of the members of the unions are not members of the Communist Party, no1 are they communists, but they give but little attention tu political questions, waiting for changes and improvements and· greater freedom. Their sufferings under Bolshevism have been so severe that their initiative and will have been almost destroyed.

/

19':24· · r· i j

When asked how 'a verY,.. small mihori'ty of communists · in th"e unions could cont1·bl' such great orgp.nizations, Tomsky replied: "That is what we f'ought for." He is one of tlie militant Bolsheviks and suppprted Lenin and' the Bolsh'evtlt leaders · irr their revolutibnary- contest'. He further· add'ed1 th'at tn'e. noncommunists hnd no policy~ whereas- the communists bad· a defiil.ite one,' Which· ca.Heel! for· united a-ctiorr and p.r.odrrC'ed · solidarity- among its · members. He tbrther-stated that ·tb:e. noncommunists kn·ewthat the Government·was· in the lmnds-'Of.communists and that · th"e. communist" war~rs could' obtain- greater· favors arrd priYileges· from' tlie Bolshevik Government · than members of · the union' could ' who were · rrot· communmts. He added a· further· striking reason; tlie e.viden:ce of which' was everywhere fo.und:

'11.he1 communists are • more energetic. and . a.ggi:essivei; they bave· ob..,. jaetives to be reached and a, preolse poliay t0r cany· out~

: Tomslty stated that · while t11e commnn:ist leaders · of ' the unions did1 not disariminate a:gainst noneommunists, they did carry on a · most aggressive and active· campaign· in· behalf of communism· to win t.he laboring men· to a" belief in the- communist faith and; to support the· Ilolshevik regime. In various · places viBited the accuracr. of' this· statement · was-; estab'lish'ed. Comnnmists ih· charge .. of plants and · worlts and who were offi'cers of' the- unions· were' exceedin~Iy · active ih spreading• c-0mmunism and popularizing it nmong·the· members~ Cl\J.b' houses · we1·e-provided 'in many places for the worltmen, and ' tliey we're usuall'y in charge of' communists wiro · were energetic • in· p;ro-vltling communistic. literature a'Ild l)ropa.ganda· for ' the members:

Tomsky aiSo stated '. that, though' nonunion men might' Be·· empJoyed, the activities of' the organizations' would" speedify· tak'e them into •tl:Ie unions~; the ad'Vuntages and' bene:fltSJ gi'Vell' to union employees, such as lower rents,.. lfetter ·lfvihg qm1rte:n;, reduced theater-- charges,. sick benefits; compensation- for injuries, and so· forth, being strong- inducements for • tlfem to· become connected with· such:· organizations.

The ~ federations representing various industries and workers have a re:nresentative of their resn~ttve organization in each. localit~ wb'.ere, w.orkers of the· paTttcular gr-oup are fbund. Tlie central ' council of labor unions unites~ the various inter:. mediary an-d. loaal organizations, all 'of. which are directly under. tlie orders , of' the central' organization, of whloh Tomsky. is president. However, where the industries are few and scatte.ced. over_ a large. extent of territory, regibnal .organizations aTe effected wliicli .miite therv.a.rious Provinces, and these latter or.: ganizations .are. connected, with the Moscow central organization .. Tlie orders of"the central organfaation are obligatory_ up.on all focal,. provincial, and regi.onal ones.. Conventions are held to whith rep,resentatives from the provincial and regional. orgp.nizations_ are sent.. An aJFRussian council of'labor·unii)n-S is elected bY. the convention, and Qonsists of 89 members ·; a presidium,.. . or executive committee, consisting. of; 13· members,. is elected oy_ this council, , and; it possesses all the. powers of the general council" when-the latter is not in. sessfon.

From 16 t0i ·20 ·pe~ cent of the membership, o:f ·the congress of·· soviets,.. which theoreticaH~ . is, the. sup;reme body of· the. U:riion of Soviet Republics. are . named by the council of labor unions. or . its p:rmsidium;. .. Moueover, In.ally·. of: the . labor. union. organ!~ zati@ns elect members -directly to the Sov;iet. Congress. In that. manner. the lab.oo. organizations haivei a . large . repl!esentatioru in the Congress o1l Soviets~ . thus, increasi.ug . the importance, o.f the unions 1 in the · Gi.:>vernment, and. three• of' .. their members are· members ' of the centraL ( SO:\Tiet) e.n?Cutive committee· iru which_ full auth@:rity. is r vested. betweoo. the.· meetings1 ofr the:; Soviet , Congress. Na '1abol! ·union~ in effect. can be ·organized. ex.cept. as . a branch . of , the organization . hea<ied by T.om.sky;.

Regarding, stnikes,i .TomslG.v. stated the Government. has·.pt>W-01"' toi· suppress l them , It' is·, claimed bYi sovie-t lee.der.s· that wlhile · purely. eeon6-mic.·, strikes : are · nob intenfered•· withj tl1e· (l()vemr~ . ment w.ill· e:x;ert its, powen· wheJ!e the,- stlti.keBi a-re0

• politica1 in1 cha-racte:u or. w!b.ei"e they vi.tallyJ affect ; the Gove:rnment ppliti .. ca.Uy orr-eeonomically. In view· oil! tlm controii byr the. Gover.n- · ment of. all industries· and: · o:fl . tJhe eeooomie- ·f~ces . o'.fi tbe· state11

it,,is . n:umifest- that the •. wottkers: are subject .ta1ooerclon.and ·to

Tl:iese. cati!gQries· aie"d~rmined by'tlie various-iocal ad~inistrationS' and~Jn the- v~rious· lihes"o:t work, the character-of the· worlt-an'd ttle qualifications of.' tlie emuloyees determining-thecHtegorfes ~Wftltln·· whicli they are placed.

Witli respect·td. the· Government·trusts:::-and these· trusts control' tlle- lieroiY itrdb.sttiw-re]1resents.ti'Ves of' the local unions meet· With · tlie hea-d ' ot the lab'or union at Moscow and such person or persons· as :rmcy be designated' by- the trust, and' th8 categories a:re tlierr' determined;· and; a minimum wage for· unskilled' labor having been :ttted,' aut'omatically all labOT above· falls into· the- determined· categortes. Payments to emp'loyees are' based .upon the commodity ruble; the' vaiue' of which deperr.dS' upon the p-rlces· of various commodities• in· different parts of Rnssflr.

A minimum• wage ts :fixe'd' by· tbe · Governnienf for tbe- entire · state, and a maximum wage is fixed for Government employees. the· i :i;mrpose-i being. · to- restrmn ofifoials from paying- exorbitant wages to technicians and experts. Where' it ls important tliat' the servtces of experts be o»tained antl tlley can not• be otita.ined within the· maximum pri'ce· established By the G'o-rernment, appll~atton ·may be made to · the-<'.Jommissar· ot·Lallor 'for--spectal: permission to ihC"rease · th-e compensation. Und~? thi's. system more-> ·than· 4;500 experts• 8.ll'd highly' traine·d technical men are receiving wages in excess of ' the -maximum:

The' labor· laws have frequently been revised; and' of the more·.- th'an 30G labor· decree st'atntes · relatin~ to· labor 40 only· remain, and they·· are- bef.Dg modified. Article• 171 of' the labor· code p,rovides for' compulsory a:rb\trati<>n', and~ agencies for settlihg ·controversies, among then>; tJeing a b6ard or· inqufry, a quasi arbitration: court; and an arbitration board; are among · tlie -means provided for settllng·dtsputes. Wbere•natH:mal interest:s' are involred ' tlie Comrcil of Labor· and Defense can enforce· compulSory 8.Tbitratlon; also.in' cnse ot ·a: st-l'lke·wh'ere·it spreadg. or may ·involve a' number"of 'citieS'.,

r.:abor exchanges- are provided" to- whlclt · persons seeki!lg; employment' may· go. Private" employers must register· all em-" ployees with· th~· labor bmee.ue.• }l pri'Vate emplbyer musr apply to ,the Iabor bureau• fbr · all ordfnn.Ty and: unskilled workers. T<> · transgress thHr provision· is, a• crime! Exceptlens· may lJe made·· if ' employees.are required' to occupy· a· rel&thm of ' trust and' confidence to tlieir• ·employ~s or· wh:ere· technical or• profession-al knowledge-is required, but ·e-ven tben the bUPea.11 must be notified' by· the• employer .. of 'h1s acti6n. The law preseribes six hoursLper d'8.'Y for mental · ~rkers · and! eight hours· for· th<'>se< ·engaged; ill1 · manual labor. ,

The methods· heretofore employed•to:provltler insurance a:gainst disease; siekness; a-ecident, and deatlr have- been• se1 imperfect and il'.l'adequat~ as to• have utterly; failed' nr meer the promisesi ma:de- or tlie obligations· corrtra-cted for. Statements·were made4

to me that no compensation had been received' Hy manyi injnred1 employees· <>I"" 1)>y' so-m& wid6ws •and mloor children where husbanus andr fathers -had been kill'ed or died; from nnwr.al' cauees amr while worlting· forGovernment coneernsi

The· <!JommissM· of l Labor· stated that h.is'. department· hadt recently taken over the labor insurance department, whieru bet admitte<i'· had. failed tO' function. He contended tlfat tHe serv.iee he.d' imp11oved~ so far ais in;fRred, wol'kman were· concerned, but that ir·was: veryi unsatisfactory in extending relief" in all oth:ercssesi. 'Dhe·· Germnn sy.stem of ·categ<>ries which; is · applied: to employees· to determine the'· rate· of compensation fur. the· di:fi.i ferent1 gnades'·O~ihjUTies' haBJ.been rAther closely· followed:

The memtiers · of- the·· uninn contribute· to . the · Intern11ttonal· Labor lJTnion, the headq,uartens-of_ which are· in. Moscow. With thts·organi.zation are: thei syndfealists.-of Spaini and F1rance and. the I. W. W.'s; of. Amerl'ca:, as weHJ as various organizations, in other: coUlll.triesr which! believ:e ~ in w.llnt: is· known: as· the " ·class str~ •r or " class- movement;~' Tomsky) sta.ted·1 that while · thislo:irganizatmm ~wBB' .notr a- brancb1of ' the1Third! Internatloonht its;r.ob!Jeotives•1w.era S1:IbstmitiBJlly1tlrose of: the· Communist P.artyi

. W•itl.1 reference1. toi • tlrei • .Amertcan1 F'ederation t of.' LabO!"; Mr_ T.om:sky;· .. as::well 01S"<>.ttrerr·Bolshevi.ki• leaders, . eondemned! it, arnL a : nwnbe.Jr" oft them1 d-enou.naed M1:; Gompers:; an!d..i liis· attitude tOl\IVS<rd: ther BolShel'!iki'. G~ernmen t~

INDUSTRIAL CO'NDlTtONsr AKO' WAGE:S

coutro1. by the· sovieh authomt:les e-ren:.· though mi.3.itar:t>' :f.Mce• lt. is.r somewhat. difliicult to dete.rmtne the w-ages . received, by. is req~iued·; But there' is- comp}lis~~Y- a-rbttr.ation, ini Go1'ern., emnI~y.ees.. They. fluctuate::. and. VB.Ty;, in. different . :garts. ot : :rmmt -aettviti:es. . Strike.tJS7 ha v~· beett4 arrested ~ and: thella . hue RlWSiaJ The. ra.ilr-oad.. employ,ees , receive-. on ru1,_ avw~ ap1" been p~litic8Jl arrest.s of' members • of , ther lmiOD1.1 .Disputes ar.e~ pro~imatel~: from , 21) , t<>~ 28 pe.n cent. ofi p1·erWRl'I wag~;. When usmtllYi settled t;b.rougll , the, instiiumentality . ot-. confi1ct · boards;- it is remembered .. that. priees·1 of all.i oom.mootties, , except_ grain. composed· of. wa.rlunen and.." mllllll~ .men.l' lf-1 thei·faii,. , the1 and. a . few agficuitu:rat . pDOO\latsjl, am.· sev.er.ab hundred. pen cent .. matter 1 mO.tfl" be; bt;-ou~ t;o, .thef.bea.dl of, thedab01n unioa. 3'IJi4. its abov& .we-war. l.eA'el$J it. is . appai;en.t th~ the wages, of; this .. orgJlni.z.a.tion11• ~the p;!jesentr timer, fo111 tl\e. nurppee- of. fixin1r. cl.a.Mi ~ empl0-y,ees1 woulci seaa:ceJ.;y, reach .10 per. cent of_ tnoser W!B:g~s;=. empl@xees- .m, th&r v.a~lous..pl.ant.&iMe~ dtNl~in11o · cate..> . paid la 1913 .. , A.n . a¥eraga-. o'.I tbar ea:t:ni~ 1· ot labo.r. in 1 all in.. gol!ies, there: being as-.mn.ny~ as, 101to·,20,, cateCQ11ies~ inr some :ru,. duatllies in .. my~ ODJ.nion . w.ould. not .. exceed. 12 .. r.ul>les. (.gold) . pe~· torles where the products are varied. .month. (See. Economic Life, September, ·1923, and Commerce

QONGRESSIONAL RECORD-SENATE: .. APRIL· 24

Reports (United States) December 30, 1923.f The situation ship and operation of industries were permitted, Russia's does not portend any advance in wages. There were evidences progress would be assured. Bureaucracy which exists has . at the time I left Russia of increased unemployment in many a deadly and paralyzing e:trect not only upon the Government ' of the industries. In Petrograd, more than a hundred thou- but upon industry. sand persons were out of employment. A number of plants Trotski and other communists have perceived that imhad been closed and orders had been received from the Moscow portant reforms must be immediately introduced into the authorities to close others. The local soviet leaders remon- Government and into the organizations which control the · strated, fearing that . tlie closing of further plants wou~d pre- nationalized industries. I - heard of bitter conte~ts being : cipitate trouble among employees, which might result In strikes waged among the communists over the waste, extravagance, 1!11d violent outbreaks against Bolshevik rule. In most indus- inefficiency, and corruption in the various branches of the ' tries the Government has been compelled to concentrate its Government as well as in the administration of the industries activities upon a greatly reduced number of factories, plants, of the country. Some progress has been made in effecting and so forth. Accordingly many were being placed in " stand- reforms; and if the views of mo·re liberal communists prevail, by " condition, and renewed e:trorts were being made to · in- further advancement will be made. -- . -crease the production of the few which it was determined to Referring again to wages paid in Russia, the Bolshevik news- ' operate. paper, Trude, in its issue No. 89, published in April, 1922,

Notwithstanding the low wage paid, the Government is un- 1 refers to the decrease from month to month of wages and . able to operate its plants and factories, except at great loss. of the purchasing power of the ruble. It states that the The Government, hoping to increase efficiency and production actual monthly earnings of employees during the quarter from· in industries controlled and operated by it, has brought January to March~ inclusive, 1922, were as follows: January, about large consolidations. Various industries have been 6.15; February, 5.05; March, 3.25. Wages continued to fall grouped into trusts and combines. Where a number of enter- and have reached a level so low at the present time as to prises of the same character are united and brought under make it impossible for the employees in the Government one management, they are spoken of as a " trust," but a " com- industries to obtain the necessities of life. In the same article bine " embraces numerous plants and enterprises, either in the paper states that at that time the wages paid were about allied or interdependent lines of production. The "trusts" 15 per cent of the pre-war rate. and "combinations" are further consolidated into "syndi- The same soviet paper, the Trude, in an article published cates." The Government is also trying an experiment of di- by Mr. L. Ginsberg, presents an index of prices and wages viding Russia into what it calls " economic units." The in- in Russia from November, 1921, to May, 1922. Assuming a dustries in eastern Russia and western Siberia were united price index and a wage index of 100 in November, 1921, in into an economic group, though in so doing new arrangements May, 1922, th.e price index had reached 5,000 and the wage were necessary, and Provinces, which in the past had but index but 1,520. Since that time the disparity between the little industrial or business relations with others, were thus price and wage indexes has increased. brought together into one economic unit. This provides dis- It is recognized that the economic regeneration of the country locations in business and destroys channels of trade which depends upon the increase of production. But this organ defor years and indeed for centuries have been followed. clares that tlie latter is impossible as long as the rate of wages

Some Bolshevik leaders stated that these economic units I moves downward. • · might be the basis of politica-1 subdivisions which would re- Many of the various schemes devised to increase production suit in breaking into fragments the gubernias and causing a have been most fantastic, ignoring natural laws and normal redistribution with reference to the lines delimited by the conditions of the human element as applied to the conditions economical units. Such an arrangement is a mo~ dangerous of life. There has been some im,rovement in production since one and may retard industrial development. If carried out the adoption of piecework. In many of the places visited I politically, it would change political boundaries, destroy the learned that from 40 to 60 per cent of the employees were uµity and solidarity of States and Provinces and render the engaged in piecework. Numernus employees with whom I people more amenable to despotic rule. spoke approved of this plan. U.::idoubtedly it had materially

The number of trusts reported by tlie Bolshevik Government increased the output of the plants and had met with universal in the spring of 1922 was 458. There were 28 <;ombines and approval among the employees, including those who were not a number of syndicates. My information was that many of engaged in piecework. the plants embraced within these trusts and combines were In the early days of the Bolshevik regime every form of the not now in operation. so-called capitalistic system was aboli~hed. With the confisca-

In many places I was told by employees in Government en- tions af banks and all forms of property and the nationalization terprises that their wages had not been paid, small as they of all industries, the people became wards of the Government. were, for periods varying from 30 days to 3 or 4 months. The Wages were abolished; rank and position ignored; fitness and number of employees in the Government-operated industries capacity for service disregarded; and ignorant, incompetent, has greatly decreased. and often cruel and brutish persons were invested with power

In October, 1922, there were employed in the vartous manu- and the people were driven like dumb catth~. In this situation facturing and mining enterprises, including small private shops conditions could not have been other than frightful and unand home labor, nearly 1,200,000 workers. Of this number bearable. Millions died from want and e:'{l)osure, and the 138.000 were engaged in the oil fields and in the coal mines. number of bourgeoisie and intellectuals who perished will never In the various trusts and combines 800,000 were employed. be known. The efforts to compel production were unavailing. In the various metallurgical and chemical works not embraced From this inferno, as I have . stated, Russia is emerging. within trusts and combines but operated by the Government Individuals are not yet permitted to order the!r lives or to 92,000 were employed. Local soviets employed 54,000 men determine their course, but the right of contract in a limited in nationalized plants. A number of small concerns were way is being recognized, and men and women are timidly and leased and the aggregate number employed in all was 65,000. apprehensively asking to be heard in tbe matter of fixing their In 1917 there were more than three and one-quarter million compensation. But the Goverl'mcnt controlling the industries employed in these industries. In 1921 the number had shrunk is supreme. -It owns all raw materials, controls and operates to approximately 2,000,000, and the number employed at the the factories and plants and industries aside from agriculture, present time is less than the figures which I have given for and the people therefore must submit to its decrees. Because October, 1922. Because of the small production, the enormous of the inefficiency of the Government the cost of produc~ion is losses resulting from governmental operations, together with enormous. With the increase in wages the costs of production the closing down of many plants, thousands of employees have are augmented, and with the high level of commodity prices been discharged. It must be said, however, that the soviet which has been reached the purchasing power of the ruble is authorities are endeavoring to make the industries self-sup- reduced to the vanishing point. Labor, therefore, is the vicilm porting, and they are therefore introducing economies and of communist policies. Not only the capitalist, who has be~n cutting down expenses. · The policy of issuing paper rubles deprived of his property, but also the workingman, who ha.~ to meet deficits resulting from govern·mental operation of in- been despoi1ed of his liberty, suffers under Bolshevik rule. dustries it is now perceived can not much longer be continued. A table submitted to me by the soviet officials in the Ural

However, as I have stated, under the present political and district reveals the catastrophic decline in production under the economic system there is but slight hope for improvement. Bolshevik .Government. In 1913 the production of ores in the Only by modifying the present economic policies can Russia district amounted to 110,000,000 poods; for the year ending be relieved from the evils from which she is su:trering. If free- September 1, 1923, the production was but 14,500,000 poods; dom were given to the people, and if sane and rational indus- the production of copper for 1913 was 41,000,000 poods, as trial policies were adopted, including an abandonment of the against 4,000,000 for 1923; the production of coal was 655,000,000 foreign-trade monopoly by the Government, and private owner- poods for 1913; and 71,000,000 poods for the year ending Sep-

1924 - CONGRESSIONAL· RECORD-SENATE -7055 tember 1, 1923. Senators are familiar with the fact that the Ural l\1ountains are renowned for their platinum deposits. The demand for platinum bas been great during and since the war, and the prices paid to secure it have been much above the pre-war level. The Bolshevik Government seized these mines, including the machinery, and had a free hand in the production of platinum. The output in 1913 was 329 poods, but for the fiscal year 1923 only 24 poods ; the salt production for the year 1913 was 21,500,000 poods, but 16,000,000 only in -1923; the production of cast iron for 1913 was 56,000,000 poods, and for the fiscal year 1922-23 but 8,000,000 poods ; the yield of iron (Martin) was 49,000,000 poods for 1913 ; and 11,500,000 for 1922-23 ; there were produced 14,000,000 poods of sheet iron in 1913; and 3,000,000 only in 1923 ; 22,000,000 poods of tool iron were produced in 1913, and but" 5,000,000 in 1922-23; . the production of red copper for 1913 was 1,000,000 poods, but in 1922-23 only 120,000 poods. ·

Substantially the same disparity exists in the production of paper and all chemical and wood products. Throughout Russin I observed hundreds of plants and factories which had been closed; many were in ruins, and some which I visited were in a dilapidated and run-down condition. A report submitted by the Soviet Government shows that from January to July, inclusive, 1923, from 10 per cent to nearly 19 per cent of all expenditures made by the Government were devoted to meeting deficits arising from the operatfon of industrial and · manufacturing plants and the Government's agricultural activities. It is worthy of note that the Government has undertaken · to operate a number Of la1~ge estates which were confiscated. It selected the richest and the best. Communists insisted that the Government could and should conduet agricultural operations upon a large scale, and that with its control pf labor and the railroads, as well as all forms of property, and with the great demand for agricultural products throughout Europe profits would result. But the experience of the Government in its agricultural activities has . been disappointing and losses have resulted which 11ave been met by increased· taxation and the emission of paper ruble,s. I heard many complaints from peasants thal those employed upon the so-called Gornrnrnent fa1~ms enjoyed many advantages over the rest of the people; that tbeir wages were higher and the preferences and favors granted placed them in ·a preferred position. The criticism was heard. that · these employees were indolent and inefficient, notwithstanding the superior advantages which they enjoyed. I should add, however, that the Government has sought to introduce improved methods of agriculture at tbese various estates, and has also made efforts to improve the various breeds of domestic animals required by the people. But the same paralysis and inefficiency which exhibits itself in other industries controlled by the Government neutralizes the good intentions of the Government and bring· to naught their schemes and plans. The same report to which I have referred reveals that the expenses for the national defense for the same period consumed approximately 14! per cent of the national outlay; 21 per cent to 31.8 per cent of the national· exJ)enditures were required to meet administrative expenses; education and all cultural and social activities received from 3.4 per cent to 5.9 per cent of all national expenditures. ·

These deficits, of course, call for a_dditional issues of paper rubles, and these emissions are immediately reflected in higher prices for industrial commodities. As I have heretofore stated, the deficit for the fiscal year ending in 1~23 will be between 60 per cent and 70 per cent of the entire national outlay. When I entered Russia it required 240,000,000 rubles to purchase one dollar. So rapid . was the decline in the ruble that, in the last days of September and before my departure from Russia, a dollar would produce approximately 800,000,000 rubles, and since then, as I am advised, the decline of the ruble has been rapid. ·

The budget prepared for the fiscal year 1922-23 called for an expenditure of 1,418,816,517 rubles· (gold), and it was estimated that the income for the same fiscal year would be 1,056,000,000 (gold) rubles. There were allocated to· education 48,000,000 rubles; health, 15,000,000 rubles; · finance, 130,000,000 rubles ; transport, 46,500,000 rubles ; posts and telegraphs, 30,000,000 rubles; war, 21,000,000 rubles; loans and subsidies to industry, 94,000,000 rubles ; agriculture, 58,000,000 rubles ; and to local political subdivisions, 63,000,000 rubles. The budget provided that 26,500,000 rubles were to be devoted to financing the state banks, and 74,000,000 rubles to the purchase of food supplies.

Authentic information which I have received since leaving Russia proves that the expenditures are much greater and that the subsidies paid to the enter1wises and industries operated by the Government were much larger than anticipated or for

LXV--445

• which provisions have been made. The soviet authorities, per-ceiving the disastrous effects to industry and · to- economic restoration resulting from these enormous deficits met by paper emissions, have imposed additional taxes upon the people. I ·have referred to those laid upon the peasants and.have also· alluded to the very heavy burdens in the sbape of licenses and taxes imposed upon all forms of private enterprise. The individual engaging in any form of trade or commerce has been encountered at every turn by the voracious demands of the Hovernment. I talked with many persons coming within the categories referred to, and they were loud in their complaints against what they regarded as the unjust exactions of the Government. · ·

Authentic reports which have come from Russia during the past few months show that the Government is still pursuing t:Qis disastrous policy toward those who are seeking to engage in private enterprise. Moreover, recent reports indicate that the wing of ihe party opposed to private ownership of property in any form is exercising greater power than it did during 1922 and 1923. If unchecked, it _will destroy these new business enterprises and set back the hand upon the dial of progress.

Senators have noticed that many thousands have been arrested since Lenin's de~th and since Dzerzhinsky has been placed as the supreme head of the economic council. Dzerzhinsky, aA the Senators will recall, is the head of the cheka . . He. is the embodiment of cruelty and oppression. Human life is unimportant, and he would snuff out the lives of thousands as quickly as he would extinguish a candle if he regarded their destruction as of advantage to communism. Thou.sands · of small traders and business men have been arrested during the past few JllOnths and exiled to Arctic regions and Siberian prisons. ·Their fate is a most unhappy one, and. the .hardships to whlch they will be su.bjected will undermine the health of most and close . the eyes in death of many before the expiration of their prison terms.

I have referred to the diminishing production in all branches of industry. In this connection I invite the attention of Senators to an artiCle appearing in the Izvestia, No. 255, under tlate · of November 7, 1923, which confirms the views which I have expressed aml the data which I obtained in Russia. It will be remembered that this is a Bolshevik organ, and would present the facts in as favorable a light as possible to the Soviet regime. The article .states that the coal production in poods for 1913 amounted to 1, 738,000, and in 'l 922-23-that means for the fiscal year ending October 1, 1923---it was 648.995 poods. The production of petroleum was but 55 per cent of the 1913 yield. The production of pig iron in 1913 amounted to nearly 257,000,000 poods, and in 1022-23 to 18,360,000, or 7,1 per cent. The production of open-hearth steel ingots in 1913 was 259,268,000 poods as against 36,000,000 poods for the fiscal year 1922-23. The. production in rolled-steel products for the year 1913 amounted to 214,220,000 poods as against · 27,681,000 poods for 1922-23.

In 1913, 16,000,000 poods of cotton yarn were manufactured, and in 1922-23 but 4,355,000 poods. The production of woolen yarn in 1913 amounted to 2,400,000 poods, and in 1922-23 to but 874,000 poods. The showing in linen-yarn production is much better, there being 2,093,000 poods in 1913 and 1,755,000 poods in 1922-23. In the basic chemicals there were produced in 1913 more than twenty-seven and one-half million poods, as against 12,448,000 in· 1922-23.

In tlie ·mining industry, nonprecious metals, 638,400,000 poods were produced in 1913,. and only 29,280,000, or 4.6 per cent, in 1922..:.23. The production of gold was but 9.2 per cent in 1922~3 of the production in 1913; and the platinum production was but l.9.3 per cent in 1922-23 as against the production in 1913. The production in the glass industry for the year 1913 was 11,200,000 poods, as against 3,767,000 poods in 1922-23. In the tanning industry, given in terms of large hides or pieces, the production was 16,500,000 in 1913, as against 5,376,000 in 1922-23.

Russia produced in 1912 nearly 55,000,000 pairs of boots and shoes, and only 3,102,000 pairs in H.)22-23. The paper industry had shrunk to approximately 40 per cent in 1922-23 of the prewar production, and the production of sugar had been reduced from 82,000,000 poods in 1913 to 18,000,000 poods in 1922-23. Substantially tlle same <lecline is shown in all other liµes of production. Notwithstanding the great forests to be found in Russia, the. timber output under Bolshevik regime has been almost negligible. The~e were large supplies of timber in various forms which b,ad been produced prior to and during the war. 'These were seized by the BolsJ1evik Government, and the unimportant timber exports from Russia since the Bolsheviks came into power have come from the confiscated pre-war supplies.

rnl56 CONGRESSIONABr RECORD-SENATE APRIL 24 t

-Undoubtedly, in some industrle3 controlled by the state ther: l A. number of individuals ~lsited Russia and attempted to bas been an increase in production since 1'920-21, and with the' negotiate for various concessions. Some were mere adveneftorts to secure experts (some· of 'Whom were former manage1·s turers without :financial backing, 'who hoped to obtain valuable of industries) and scientlft~ aid, impro'Vement wm be shown concessions which they expected to dispose Of at great profit both in quantity and also in cost of production. Qutsit1e of Russia. Others in good faith endeavored to obta.ln

~l.'here are no'\V more than 4,500 experts and technical men conc-essions for the development of some df Russ~a's industries who are not communists employed by the G'Overnment, and and, of course, t'o secure ptofit to themselves and associates. · they are rece1 vlng more than the maXimum compensation pro- Krassin, one of the ablest .Bolshevik leaders, and who fot' vided by law. n was deemed imperative by the Bolsheviks that years lias been head of the foreign tl'ade section Of the Governthe services of these men be obtained.· The statement Will bear ment, 'stated to tne that while few concessiohs had been granted, repetition that the Bolshevik officials realize'that a continuation in bis opinion more would be granted. He and ~ther soviet of the economic situation which· ha$ l)revalled in Russia under leaders declared to me upon numerous occasions that the Soviet their r~gime will mean an uprising which will destroy thetr Government needed capita1 for the development of Russia'K power. There are fanatical Bolsheviks Who are unwnm.1g to resources and me restOrat1.on of her industries. But the point me.ke any concession and have resented the reforms granted. was emphasized that such capital was preferred in the form There are others who believe that neither Russia nor the world of loans rather tha:n thrtnigli concessions. i& ~t ready for communism, and they are satisfied to intrench While in.Russia I made inquiry of the soviet leaders in every themsel~s ln the Government Within the citadelS or state cnpi- Ptovinc.e 'visited, and also conferred wit11 many persons in a talisni. There are still others wbo are dlSillUSloned and are posith:>n t'O know the ··tacts, for the purpose of nl3certaining willing for other reforms to be made, believing that bnly by w'hethet concessions liad been granted or' foreign capital was the adoption bf still• more libe1·a1 policies can the Government boing invested in R'ussitl. Tlie so'Viet leaders furnished me M. stahd srnd Russia be rehabil1tate<1. list of concessions which they claimed Md been granted. It

The railroad system of' Russia, t!he greater pbrtion of whtcli reftl.ted the i:mhlis'lied statem~nts r~ferred to and showed' tha.t was _owned and operated bY, tbe Government beftire tlle war, the number of' concessions was insignificant an"d. the privileges and which for a nnmber of years prior thereto retutned profits or- rights granted lihimr>ortant. But 'two conces·sions had been to the Government, has called for large subsidies fl'om the grnntetl. relating ' to oil fi~ds. 'I'lle 'BlitnsClal~ Co.', controlled' p1'.lbllc treasury: As a result 'Of.the Wor'Hl twar a'lid the civil by Harcy F. Sinclair, had ~ntel'ed into a contra~t calling for war the railroad syst~m was detnoraifzed. Tracks were de- the dri1llng df a number Of wens ln. the famous BakU oil disstroyed and tnost of the engines and cars were ·nnftt for service; trict at'1d the repalrllig of n number of wells which were now Un" The tracks have been rebUilt or gr~ly improved, ruost of the pr6ducUve because of injuries to the casings during the wa'r 'or engines and cars have been repaired, and the transportation for the la~k of care duritl.g and . sirrce that period, as a result system ts now in a far better eondttion than ·kt any time since· 1 of which water bad filled them. I ruited these o:U 'ftelds 1D. the Bolsheviks seized power m Russfa. However, engiMs and wh1ch thousantls df W'~lls had been uHlled and which had ·· cllrs are still idle, thousands Oei.ng unused; but it ls lbecattse yielded' l)und.reds of millions of barrels of oil. Most of thehl there is no freight to be shipped. Some smti@tics exhibited to were unprodUctive

1 and the hnnd of decay and des6lati0h

me show ' less than 80 iver- ·ctmt of freight ba.uled, measured by rested upon what nad bnce beerl a source of great wealth fu Il'te-war sWpments. the state and to the o""ne:i;"S Of the fie~~-

Russla before the war possessed thousands ot boats which However, s~veral hundred wells were producing, atid the were' used in conveyi~g enor~ous ~onnage th1·oughout 'the Em- j soyiet authorities were painfully apd nrisk'illftllly aftemptJng to pire. The Volga Ri"ver was a mighty wa.terwa'Y"'Upob ·whose driv.e other wells and repair the \vaste and ruin which existed. broad · bosom millions of tons of' freigllt were carried annually. Ob experts whom I met stated that tbe Baku _oil fields were Other rivers, not only tn Emopean Russia but in Siberia, car- perhaps the richest ill the worl'd and would yieltl billlons of lied numerous flotma of ba:rges and boats which were impor- barrels more. I might f\tld in pasSing that the figures furnished tant to commerce and to the development of Russia. A visit me in, Baku showed that, though these wells, when in the hands to these waterways reveals the paucity of water traffi.c. Hun- of private bwn~rs, yielded enotltnotrs ptofttS, tl1ey were now dreds of magnificent boats are stra;nded and ro~ting and decay• beihg_ opt:!ratM' at a losis, not\-Vi'thstandlng the great tlen'ni'nd for Ing at wharves mid upon shos:ls and ·sand bars. But .impro-re-' oil and the high prices chai;gett by the sov~et authorities to ment was noted even in this important branch of national li:fe, the .Various industries owned n:nd controlled by the stut'e ta and with · an increase in prodlretion t11e water transportation "~hich it disposed of th~ ~arne. 1

facilities of' Russia wm become coJJrespo~dingly important. 1\Iy information was that the oontr~t l1eld _by the J3ar'nesdale Notwithstanding this gloomy pict:ttt!e, it must be said t;hat tM1·e

1Co. w(rnld proYe highly profitable to lt. Its terms, so 'fa1• as I ·

is imp~vement in th~ v~-i+ious brnnehes o~ industry t and if the could learn, cahe.~ for the vay.ment , in gold by the Soviet G-ovBolshevik Government will permit the return of the former own- ew.ment o.f vai:~mg am€lunts for the wells sunk by the comers and managers and will iplace in their hands ot Under their pany and als0- a percentage of the oil produced. )Vhich, I was d1.l'ect1on tbe ln~ustries which played so linportant a part in told by several persons, amoupted :to 20 _per c;e:n,t of the yield. the life of n.ussm before the war and which were .oontributlng One of Mr. Sinclair's cpmpanies also lias a ctoMessioh t.o exso much to her maten1al prosperity, then a new era will dawn ploit the island of Sakhalin. I did not learn what the terms of in Russia. The progress of Russia in Industrial lines for a num- thi~ concessio-n were. 1

ber of -years prooerding the w.ar was JD.DSt reDJ.U'Jmble. rur. t:ex- A German company ha'<l obtained a: coll.tr.ad fur the mining tile mills we~ among the best in, the 'Yorld. Her dev.eropment or manganese ore near the Black Sea. I was informed bt perof the sugar mdustry had reached a high degree of pe.rf-ection, sons who were familiar with the con.ttact. that the concession and her oil output pla~d Russia near the head in the list of \V.as not profitable) owing to tlJ.e unfair and rigid CQnstruction the oil-producing countries of the woDld. With he~ enermeus placed by the Soviet Go"'\l"ernmen.t upon- the contract ~nd the resources Russia, under liberal government, will mcrease· 1n nagging and exaspellating pa;ovfslons ~d ivregula..c, improper, 1n1luence and power i.n tbe world. and .unam1t exactions demanded.

co:NCJilssroNS The Krupp Oo., a German qorporatl.oo., obtained a. cop.cession ·. For a number ot yeurS, both in Europe and the Unit~d States, to develop a tract of ap1~voximat~y 11000,000 acres of land in,

frequent reports 'have been published that the Bolshe'1ik r~'"'lme the southern part of Russia and to p1ace German colonists upon was grunting concessions to foreigners for the e1Cpl6itati;n of I 'the samei . · . . Russian industries and r~ources; and a number of individuals, I A. con~ston had rbeen obtame<l by the Allmd ~~r1canamong them a Mr. Vamlerlip, have claimed that the~ had vnt 1• Ootporatiou to· oper~te ani a-sbestQS )i)t'op0~ty near E~a.t~1nnburg able contracts to mine ores, {l.evelop oil field!!, exploit timber- In the Ural l\Iountai?~• and a few perm1ts were given by the lands, and to engage in vnt'io\Ie other aetlvities. Government to RWl!sians and .ro1te-Lgners to work upon tL small

.The facts a.re that but few concessions ha.'V'e been granted, seal~ some of the mineral r~ons in Siberia. The so;iet leadand most of them are unimportunt. The- BdlsliMik leaders, ers having chB.l'ge of tilie, mmeraL ~urcet1- of the 1Ural1 Moun• after the New Economic 'Policy was promulgated announced ta.ins stated to me thAt no eoncesswns would be grant-ed to that the Government was willing to grant concessions, prctvid1. exploit any of the mineral wealth o1i that section1 that at one ini? that those seeking the same had ·a-dequate fi.ne.nctal abflltY · time contracts tor !Such pur.pollle would have been made1 _but and would a<!Cept the terms prescribed. It ~as made clear, tha.t n<JW the Government wus oetermined to devel?P the min. .. however, that :r>ersons of Umtted means were not wanted, nor eral resources of tbe Ural Mountains without foreign cap~taL would concessions be granted to develop or e~ldit small enter• So far as I could leairn, there were n@ grants or eoncess1ons prises. It soon beca~ apparent that the so-vtet au1!h.ottltles relating to oil or mineral lands other than. those to which I expected 1concess1'onat.res to atd the B'Ol'sh:eTlk ·Government in have justi referred. • securing loans and obtaining material advantages in the matter The 'timber resouuces of Russia aire important!, but ~onces-of foreign trade. sions to exploit these lands nre not numerous, perhaps not

',

1924 CONGRESSIONAL R:h"'OORD-SEN ATE 7057 more than five or six having been granted; and, aside from two or three, they are not of importance. A concession was obtained by a German company while I was in Russia, but the terms imposed were regarded by various foreigners with whom I spoke (and who were familiar with the section) as being so onerous as to be oppressive and to render the concession of but little, if· any, value. The concession related to a tract of land some distance from Petrograd and required the expenditure of several millions of dollars in the construction of a railroad to connect the property with one of the important lines of transportation.

A number of foreigners were in Russia during the two months that I spent there, investigating conditions with a view to obtaining concessions or negotiating contracts for foreign trade. Several of them informed me that the economic and political conditions were so unfavorable and the terms required so harsh and restrictive that they were unwilling to attempt to do business with the Soviet Government or the Russian people. Several of them stated that the terms offered by the soviet authorities contained so many exceptions and conditions that no one could afford the hazards and risks which they involved. Moreover, they said the requirements regarding labor and taxes and supervision, and the insecurity of the capital invested, were such as to prohibit accepting the same. Obstacles were interposed to buying the necessary equipment, machinery, and so forth, in the United States, and the uncertainty of delivery and the bureaucratic control which made progress and efficiency in any undertaking impossible all constituted insuperable obstacles in their minds to entering into any contractual relations with the Government. There was also a feeling of insecurity and the fear that if investments were made or concessions obtained, which upon being developed proved valuable, the Soviet Government would find some pretext to deprive the concessionaries of their property and rights under the contract.

As stated, some who were seeking contracts were dissatisfied with labor conditions and the power exercised by the communist leaders over employees and the labor organizations. Still others feared that the central government and the local soviets would devise such oppressive taxation schemes, tariffs, licenses, and import and export regulations as to prohibit successful operations. My attention was called to the difficulty in obtaining permission to import into Russia supplies and machinery required in .the execution of a number of contracts which had been entered into with the soviet alithorities.

The evils of the powerful and oppressive bureaucracy were pointed out to me and were apparent, and they were regarded as almost insuperable obstacles to the doing of any important business with the Bolshevik Government. One person whom I met stated that the taxes and the governmental. exactions and the requirements of the labor organizations, including insur:rnce, amounted to 37 per cent of the entire expenditures which he was called upon to make, including overhead and wages. However, I believe that favorable concessions may be obtained by corporations or persons of great weaJth, if the soviet authorities can perceive benefits to the Bolshevik Government. Senators may have seen the reports that the recognition accorded a few days ago to the Soviet Government by . the Italian Government involved concessions to Italy to exploit certain coal fields in southern Russia.

In my opinion, however, the Bolshevik leaders are not to be criticised; indeed, I think they have acted wisely in granting so few concessions. I believe that the resources of Russia should be held for the Russian people, and I have not favored nor do I now favor the efforts by foreign capitalists to exploit Russia or to drive sharp bargains which would deprive the Russian people of the inheritance which is theirs. Undoubtedly the expenditure of large sums of foreign capital in Russia would more quickly develop her resources; but they will be developed in due season, and a wise national policy calls for a comprehensive and rational conservation policy . . Russia should conserve her national resources to. meet the needs of future generations.

PUBLIC ORDER AND MORALS

As herein indicated, the data obtained established that, following the accession to power of the Bolsheviks, there was jl loosening of all moral ties and a general breakdown in the social organism. Crimes of all kinds increased, home ties · were destroyed, and immorality became widespread.

The revolution, it was understood, was an assault not only upon the political but upon the social structure; and all the things which the bourgeoisie and the capitalistic nations had regarded as important, if not vital, in the social and economic life of the people were treated as hateful exerescences, to be excised and destroyed. The new-found freedom could only be enjoyed by repudiating former conditions. Accordingly the

church and its influences were denounced, parental authority was. ~ssailed, home and family ties were regarded as mnnifesta tions of bourgeois sentimentality and religious superstition; marriage was no longer regarded as a . sacrament and a lasting and sacred obligation. Excesses were committed and violations of the proprieties and decencies of an enlightened social order grew to serious proportions: Everything was in a condition of flux. There were millions of soldiers, some demobilized, many fleeing, and hundreds of thousands roaming through the country. Criminals, neurotics, persons of limited moral perception, fanatics who believed that tlle acknowledgment of any form of moral restraint was heresy to communism, all of these jangling and discordant forces mingled together, produd.ng confusion which drowned for the . moment the true voice of Russia and bound with heavy chains the fine soul of the Russian people.

But these frightful days are passing, and the voice of sanity and reason is beginning to be heard above the cries and tumults of the discordant and dC'structive forces. The Russian people are moving slowly but surely in the direction of normal conditions of life. Progress is slow, but each advance gathers strength to make further gains. Not only the peasants but an overwhelming majority of the people still regard marriage as a sacrament, and in the churches and cathedrals it is solemnly performed by priests and prelates in their priestly robes. The number of divorces, which was shockingly large for a number of years, has diminished, and the importance of preserving the home and strengthening family ties is apparent even among some Bolshevists.

Notwithstanding the ease with which divorces are obtained, the number, as stated, is decreasing, and a sentiment is developing among all classes unfavorable to the lax system which prevails. Marriage is performed by merely registering before an unimportant official. The following day or at any time thereafter tpe married parties may be divorced by registering in the same informal way before the same official or one of similar authority. But there are multiplying evidences that where either of the spouses objects the divorce courts are less willing to sever the matrimonial bonds, particularly where there were minor children and their interests would be affected thereby. And a number of decisions were brought to my attention where the offending husband was compelled to pay monthly sums, commensurate with his earnings, for the support of minor children.

Marriages between communists and noncommunists are infrequent, and a communist may not marry in the church or have any religious ceremony performed.

Where love triumphs over devotion to communism the penalty is expulsion of the. offending communist from the party, and there are instances where comm~ists have married Christian women who refused to renounce their devotion to the churcli. But the reverse is true, and the claim is made by communists that there are marriages where the noncommunist spouse accepted the faith of the communist spouse. But the instincts and traditions and the spiritual and moral precepts which have guided nations and peoples can not be blotted out, and the tides of life are stronger than the dikes erected by communists upon the sands of Marxian i;>hilosophy. And communist homes are not immune from lqve and affection ; family ties there bind members together with strong and powerful bonds; and human nature there asserts itself, and the husband and father seeks to protect" wife and children and to provide for their present and future wants. · This means the acquisition of property including home, with all that ls implied and found in that sa~red word, and creates the desire for the establishment of a system of government which will afford security in the possession and use of the same.

To illustrate that theoretical and doctrinaire communism is one thing, but when applied it is something different, numerous instances were brought to my attention showing constant departures from the ideals of communism. Within the interior of Russia were found a gr.oup of several score of communists who bad left Russia prior to the revolution and taken up their residence in the United States. Two or three years ago, in order to enjoy the benefits of communism, which they said were rlenied them in the United States, they returned to Russia with considerable property and with unbounded enthusiasm for the Bolshevik Government. l\lost of them were unmarried and they lived for some time. in communal form. This condition grew intolerable, and many of them obtained separate quarters. Most of them married Russian girls who wanted homes and proper provisions made for their support.

In conversation with a number of these disillusioned communists they evinced great interest in the United States :rncl showed no hostility to its laws and institutions. They said that communism did not work out in the practical affairs of life

7058 ' 00NGRESSION~Ll ItECORD~ENA'nE ' APRIL 2-ti1

as- thefi ha.d 1 e~t.(:)d; tha-t , they. w-ere, still OOUIIJiUnists the@,.,, 1lorm~ ~f 4'!.tQxi~ating Jiq-uo:r ppJoJI. t0t tlle World Wat, t~ .. oon-0.i- j retically, but tll.at tJ.1.e .-world1was oot yet ready fo~ comm.\lil\Slll; t:don. in Russia to-day furnLsb,es convincing p..Jioof that , the cause , and, undel'· .e~ist;ip.g- condi.ti~&, its ··d<>etrinea wer.e UJ;aipp;I.icable, of tem;perance b;a.s . made. remarkable advarnieme11t. Undoubt· j

Speaking, gei:iez:ally, th~fe: is :pubrlic .ord~r ancl a f ge~eral <>\>.. · edJy the pov~rty o:t: the p,eopie.,has been a. .confrib;uting cause to 1 serrnnce r1o:fi the laws, and reguUl,t,ions Plf16llW:lgated by the ao1.. the temperaMe lQ.-0.vem~nt, which ha,s b~n recognizoo by the sh~wik GGvernme.nt Oae mai:r trayel by rogllt r ~r day i:u moot · peopl~ a$ :a ,propel' and perro~nt refoxm.1

1

pri.rts . of Russia without fear o.1i meles.tatl@. In. some S0(Cti0Ji1.S1• TJ;i.e · :$olshevik GoveJ."~nt prOlDote.'3: lotteries an~.li optains . llo,.w.e.ver, parti.c11larly. wliwre it 1$ . mQU:ntainoU$. and diffieult · o.f considerrnble ,revenue, .from this ·i~:r.noraJ ·practice.. , ! access, marauding bands take ·refuge, from whicll: Uiiey lmlke. At one .of the first railr(){Ld stations ,entered, , after crossing incursions ·into the surr<>:w:iding .terdtoi•y ·and <!ommit1 larcefile>· 1jliei1Rqasilan bru"cier, I observed , fi~mg; posters which our in- , Rnd acts off pillage, , and :not · mf.feqw:o,it;ly-· niurder~ But the terpreters stated told of the large prize which ha:d been. won , r RUBsian ,people are na.tmrnlly law-ab-idi»g and. su:bmHAo . inju~ by a , w .Olij<Ul i~ the · r~en.t Wtte~·y dra.wing. conducted. by the ' ti~s· at the hands of 1 tho.set in autb.Qrity_, ·evea when :resistance <;toverp,:µient; and , I observed in everyi p:u·f of Rµs!lia vis!teJI 1

would fi.u<l justification, Tbe Bolshevik ·Q-Qve.Jtrunent, with its.1 fl.dv~rti$eµien~s cplling atte~ion t@ various lottery schemes-. cl:Wa and militia, and millttu·y fu.rces, ex~ises tb.e utmost • w~~ were. .being , c:ol\ducte~ 1 bf tile Gover.I\men.t. vigilance in suppressing disorders and~ prev.enting_ vielations GaQl.hli,o,g .hou,ses were a~so lic:~~d, by, the GoveJ:D,mel\t, and · of· ~aw. With its . esp~i!i,.ge system an<l it& thQusan<a.s .of seeil!'et in, a num-Pier o.f citi~s .. i v.i$ited l\f~n~e4, g:unbii:n.g h~Us an~ agents. W]JQ pe.netra.t~· evet'ty P&il"t1 of ' the:. land.i the- Bolshevik ~ou.i:i.<;l thefD. ci:owded wlth :w~ wd.'\f~ .. old and yo.u.n,g~ _ w]lo. leaders are. able · to afford · proteetioni to the .. peopl.e 1 ·against the . were .feveri~hly '-\Waiting au , opportv.~dty to ta)fe part in the. ordinary tvtuisgreas\Ol;\S· a~ oJrenses.·CQ-m.mon it;()' m0fit eom1itr:ies. varim,ls.,. ~ pf. chance- a,n.4 gawblli)g devices. il;l M~SCO"f, Hi>we.ver, homiddes . :(requemly-, oceut>,. and ' the f punishman his 1 1ih&.bmlding .i-~ w~el!l. , gai;nbli:q.g wa$ .con.ducted w:;t:S . cwnµµid~91jlS , so ins.-dequate that ma-uy. wit!J. wh0;m l J conterred in 1 Russia and. ha,<Jt,r~t-q.err Itic:h, appoU,t~s. ~t(,,ya~ w%th\:tt . a~· in~~osu.i;e declared. tb-at crimes. of tbis nature were· incr~ing. · A ·n'lmlber. wmcA. co:.ut3A11ed 1 amusrlli\.ent, halls ap.-d tlJeate;r:s, where. vaud~ of· judges ttnd BolsheTik.officia:ls· told me. tha:t!tbe mafilmwn pen~ vi!Je • . .t~ti'ical,. and mw;;~l. perf,QrI03i1liees were b,ei~g , P.eld. alt.r fot~ w:illfui ' llnQ ·deHbarate mur.d.e:ri f was-· eighti' ye.Rrs in · Tb.ouean<l$ o.f 1 ~.i·soD.fi! we.re. }v.1.tlliµJ tl;ie inclqsm-e, ain.Q. ~any of. priip.on, Communists seem .to regard:.humlL11 life ,a11·1tmimpoJrta:nt, th~IP. u~ , li~eµ't,visl~ed tJJ.'il.1huJ.ldiug, wb,ei:e .tbEt , gam's of c);l.auee but · r<ililiery freqaeu:tly bmngs: fue deatht penalty,: and ·a.ny. a~t w~e.~g oon.ct~ed. ol"'_. omissioo ·E.'Omtrood to ;.·be ... immical 1to .th.e• BOlsbeivi.k 1Govern-.. l\4Y) I . add pµ.renthetically ,. tfrat, ~o~~ tll,ei v.ast . throng, ment subjects the offender to capital punishment.- Inf-nntict<ile · nu:m~er~1 pm:W;i,p$ :ten or t;.fte.ell. tllousan~,, I did ;rmt obs~im is .com1n0D and is·no11 :regerded u 4ln ,£>111feuei. Noo ·:i1< :abo:rtion ~n-r ww~icated. P'i~,rson. nor was. tl1ere the sJ,lghtest e:viden.ce of , regarded· 3& a . .erime. ,., Indeed,. I was dnfimnad· by, the ;Belsh~ik.. ' di~.rdµ 0.1,-, imp.rop~r. conQ.u,c~; . aµq W.:l\Y, ;r: fw:tb.ex. a.Q.4. that. I offieials th11:t ~ in oor.tain hos;pitals.atbo:rtions ' cOO:ld t be procured · -visited , ~n;v. .. l?iJ;ge f cit~ and ... t~w.n~ . ~;iid µ1J.ngled . w~tb. , large, witbont char~~e .. and without thle names of• the ·parties tconcerned ·: grq:ups of , p~p~e ~ tp.e \)arks .jt:u,<.\ , the~.t~rs a,i;i.d . :p)Ace~ o:(,am:l.1$eberoming 1krnDwn.· 1· was .ail00>1told · that certain pby,sU?i:ans., ana r m~t 4JlQ. l;'e~eFJ,p9n, ~d 1 ?<? not, recall bavrng seen~.a~ 1nt9~i-surgeoiis ~r0' • a1Khorip;ed to engageJin .. tJ11hq:J.raeti~ · Late!! 1I ca1t~(l _ per$0Ja. or. 3,.lly ,offei;t,S1ve w re.vreh~ible act.. . viB.ited a nu:rhl:jer of· hospitals ·.and1 maM i~lrles 1 oft thos.ei •iw r l vistte~ t,he .. s!ums al\d most .,insanitary ~9i und~s1rable c1-rge, and · ttrey .eonfirmed the. iM'.o-rmat1oii whlt<!b · I 1 had ire .. . pa:rts,-of a jl nU.Itlber of, tbe cities •. a~d. met an4, talked with'. . beg- , celved. · I r was "also shown~ tl'la 1:!.w ·wh1ch le~Ured·· abm'tions; gaii,-s .&nP. !outcasts. an.d wll;;it, IJltgb:t be. Cij.lled the lowest . t:ype!:J Adultet'y and sexun:L vtees .dolnot ·come undeit tbeban •of;the law,.' qf , p~Qp\,e . . ';CJ.le:y;._ were , al) . onlerlY, and meetiu~ the condit\ons

!Jlllroenw 1.1;nd embezzlement·• are eommoo.. it should· be1'Sakl,t 1, su.c.roun.Q.i.J?g, t:µeiu with :pa.t.iwice RJld more or, less stoicism. lloweiver, that th0 1 manner 'in · whicli · th~•. people have. beeD: i ' . 1 • • IBA1'/K~· · +.NP.- , ,.~I,N:G

robbed an<t1.exploited 'by t11e •G0v~ment~ f .(}lfowed' b.y hardships~ ; Pdor to· ·the·war· the-Oanking >fa~llltie11 of iRn~~ia: subst!aatfa.lly p~vati4>ns, and· sta.l"'V'a~QA, -w~urn naturally' ~ul.t-_in • a ~enei>a:J. r met· the needs of·tbe· poopl'e. ' Numerous ' banks.• e:rlsted thrg,ugh .. disregard of the propr1etarY. mterests of the md1v1dual ~n · any1 0 t th Empire ·and ' tbey were • eoDdncted in harmony. with f~

1of; propert'.yv ' ~.: of • the the~~s, lf&wever, are· sucll as w~f-re~ized ~nd soun4 r banltlng methods. When the Bol

~o~ld be c"!ssed in rur colllltry as petty la.rceny. ln · .e~y sheT·ikS·' ootatned , cootro:l •of· the·· <rovel'nmenti they took· f>O~ ' part of Russia I ~e~rned of em~z~:ements b~ em:ployees .of the· se$sion ·of 'all banks · and ~ eonftseat~ their 11nets: ·rt· wns ~stated ~ GQvernment. This Offense \vas COOrllJlOD in stm-es, ind1:lst;i-al ~ th~t- they were " absorbe<l ' i1lt() tbe- People':& Bank." . Ttle ·fncts. ~lnnts, tr~~rtatlon sy~ems, and, ln governmental enterprise~ were·that th~ · 'Bolshevi~ Government-set~' all .1 the a~11. Rnd :

i=.e-ne-ally, J , . . . . 90nverted1tlwm to its own Me.• Ma\llY' f-Oreigners hau ·d&l>(;)Sits. In . a number of prlso~s i wb.1cl\ I . VJ.s.ited ~ disco-yered that a iµ , 'Rumian . l:fanks; wtiich were. - ~onfiscare<1:,1 as 'W'e.re.1 the · dep~sits

large proportion ot th<>,Se inCJ!._rcerat~d had b~n convi.ctea of , Qf,. the RU891ans. · embeZ"ileroent or t:hett ot Govexxunev.t prQ.Ptert.f· J. also. found sen-at<>l's wlll· reciall that the . co:mmunlEJt leai101's dMlared • tliat lllaJlY of the. iuma.~e11 .. ot the pr,l.so.µs, h~d .b~n .co.o.victeq o.f, that bn.nks weli'e o.dious-features-0f 'thi} 'cnpltalistle ·syster;n, and . brlhery and' various foJ:'AlS .or · corrv:vtlon . in . qUiee, . Lea~, so the whole bankln~ system 1was destroyed and decl'OOS issued Bol$hevik offl:~a~s a(jmitte<l that ~e. o~ t~e. µip~~ <IwtcuJ.t . n~ot>~ furbldding , the -use• of money.1 The: gold ~ rese.1-:ves hela by the lems t.~eY, had to meet w.is that 8.'1'Jsitlg. from .graft, cqr.r»~tiOJ;\,, , e2&r's • G<>ver.nment; wheB • 'it wa-s o:vierth:rown-, mnoonted to aud bribery upQil tbe part. of otlicia4> ~j'J e¥lploy~es ~f , th¢ mo:re "than ·six. hundred milllons- of, dollaTs. There were in the · Gtrver~ment. Th~ . ,GQ,vernmen.t wa~ ~ctm~ v~Q:rouslf IJl tts .. ',freasury, also, large gold deposits by Rumania, The •Bolshevik etro.rts to, ~radlcate , ,thes~ evil~, ,ll..J?d almoot. rd,i:µly J; ., .b~r,~ pt . Goviernment ·sei~d tbese:igold -rese:rves .and· deposits,: 8!Ild so far arrests and convlctlons of ~:in~l~yees 1 .ot tpe. Go:.v-r.rPH?eJlt for ,· as .. 1 .couid · ascertain used them, 1 fo:r varh>ns purJlf)s.es. I · was.1 cri~es of tit~ cba,r~ter, wu1CJ:i T ~ay~ just. deSiCr.ibe?,. Many. ~able to·.leairn the -value o:t the gold now .held hy the Govern· o1f):C1als o_r t,he J)olshev~~ Go-yer.wpent ~lrnm I ., met .. ~n,t~i:~~dr ment, .although tthe weight 'of · tbe , eivi.denc&-lndicated ! that. the. · me as be1~g . meQ (>f ho~s.ty; an_d. prpb).ty, . ~hey. were greatly. re&itdue ·of1thi11. ·enormou.s ,depQSit amo.unts ·to but ·afewmillions. d(SPJ.rbed ove.r the, tb.~:;., aµ.d v'~l~iJOD# qt , law .nlj>on .the. nart. of· dollars;. It ·has been used r f~, v11JriolllS : pUt"poses; and muoo · of G?vernment employee!!!, ~nd were most smcere. IJ?i tb.eu- -efto,rts. - qt Jt' ·has bieeDI dissipated in propag8:111da •and'in vari0ua scberoes , to g~ve tp tJ;l.e ;p~op,le · ettiCJ.ellJ; a1'd honest a(l.m\ni~ratlon. IJ,nd 8JCtivities of ' the Bolshev1k Govemme .. t.

ll'Q..<s.sia . has her l'quor 1p:tQ.bieJJ\,,1 tbough U is,.not. s,o sedo.JI~ as , Its. eff&Pts. to· a·bolish the use ·Of ·m-0.ney. met> rwith h,umillatiug-it Ls in the Unite4 Sta1,.~s. 'r.b.e G~ve,rnment seeks to control tlefeat. T.be large pa.per emissions, amunti.Dg to quad.rilUons · the mamgacture and ·ijale,. Of: illto4.iea,t;lng ;beyeragei;;. 'l'he. alc;Q- of• rubles. brought. the .Sovie.t Govei:nment to too brink o.f. tbe lloUc content is limited an!;l tbe quanHty, manuiactur.ed , under· abyss;1 into which ·it· would .have plunged ·ex.cept fo.ri the· pr001pt . the auspices .of .the Gov.ern.ment·.iS · IPUCJQ less , ~ha,n mlgb.t be e~- retreat ordered by Lenin. The Bols,P.evik . leaders discovered in pee.t~d. J921-22 that a "bankless" condition could no longer continue.

Indeed, l w.as surpl'ised to.i find ' many 1distriots. in which· 110· ';I'be Government continued to · issu.e its ~aper rnbles, but some licn1ors of any. kino 1 were manufaetw:ed or so:l-0. This stat&-. of, its· wiser leaders and fiscal · experts. determined . that a bank-

. moot should be •qm1lified1 .bowevar. SOJM :pe.r!BOnsdn · violation, ing .sy&tem . must be establlshed which would furnish . e.redtts . of-the law hnve their home-brew or- illicitly produ4re ·their ·vodka: Jtnd aid in rev-iving trade and industry. Aceordbl:gly·tbe Ru'3-In most of• tl,le cities .and . towns .wines and 1beer; were •@asUy ·ob- sian State Bank was orgaltl.Zect T.heoomtically it is: net· ctW.-· ta.inect In Moseow arnl oth~ larg:e cities»tbere were numerous · nec.ted with· the Gove1mment1 and is deelare<B. to be "an indcSOOL)S where varioos kinds of liquor· were sold~ l iearned· that pendent juridical1·unit, with its own propel:'ty quite apart from · there were frequent prosecutio11s for the illicit manufacture of the property of·the Re-public ... vodka ancl , other forms .of intoXiioating beverages. However, lt I. visited anlil. conferred with a , number of its- dire&ors~ glres me pleasure to say that I found the Russian people,· gen.. ':rhG>se whom I . met expressed soWld acd 1 s&ne views •·and a:nerally speaking, temperate and free from the ·vice of drunken- . nounced a J)olicy which, :iif: adhered· to, '!ill ' materta..lly, coa~ nftSs. Wll~ we .recall ·the exoessiYe use of. vod.lm and 0tbm" tribute. to the .fndustrial re.bablUtation .of Rnssia·J 'l1J.e. · Jl°'-q.i '

1924

sian Government thus ·far has not interfered with the'- poltcy II& diPlomatllr:: on;·fnlendly1 relatioo.& with any,· powers. It an"' of the· bank nor. att-emptedt to; place the reservesl o~ the bank nonnoedl tliatr the " alass: stimggle" w.hi.ch was· to destroy. alll behind the. paper nubles- emit~ byi the Government t'o meet governmentw•batt .. begnn and' would ba,pursued<-relentlessly until! its continuing dencits. As I. he.ve1 stated, the presen.tr Bolslrev.tlt m proletarianrdic.tatonshi.p nnled the w.ol.'Id leaders appreciate th~t Russia.ls- progres&; depende1 upon;.. bal- Tlie, rel&tfons "between\ the UniOOd: States and· the · Russiaw ancing its· budget. The poverty of· the1 people· and! the inept Government were• aiway:s · cordial, and' between the peoples o~ and unsound and uneconomical policies; .. if ' eontinu.ed~ wilt pl'e· the twoi countries :strong ties1 of ilrlendship had existed. Upon:. vent the consummationi of this plam If th.e:Bolahevilt; G.overu~ the overtbrowi of th& Czari'stie reginn~1 , th.e- Government of the. ment lays its ha:n:ds· upon the· Russian State: Bank and: appro- United States signified its deep interest in the new Republic• pria tes the reserves there pl'ovided, then: dastnuctiun: will ovet"-1 wliich· was fo-rmed ' an.ck gave conv.incing proof o:JJ its desire· to take the· bank and the· little: credit which. Russi8.:i is now aid · the ~ssian1.1 peopla. in~ establishing a. fr.ee and independent obtaining and employing to advantage in; fore-igrr: trade wilt Republl~ · be lost. Even after- fthe · Kerensky r~glme" was overthrown by· the·

In the vauJ.ts of the State· Bank, whlch· I visited Jr saw large Bolsheviks, President Wilson-. sought' contacts· with tJ1em1 q:u.antities of· gold and! silver· bullion. andi Ametricnn1 gold notes and; for the· American people-, declared' tll'eir unfailing friendand English pound notes of thei value of' several millioll' dot~ ship for t'lre· peepleL of1 Russiil.•; but the· Bolshevik leaders, in lars. The original• capital of the· bank was.. 2,000,000 rubles; harmony with· their wonld~wide revolutionary plan, repulsed gold. It is now· fixed at 5100()~000 chervonetzl. The• chervonetz thes~ advances· ·and gavei e:vid.ence of theil' malignant hatred of

. \v.as an. old Russi.an. coin\ the- equivalent <>f · 10 gold: rubles. this RepubUe; as· well as · all' nations which' came within the' The· bank has• <Wi!nedi gold chervonetzi, rund' I.found! them in 1 cir~ classifteatlon- of: capitalistie' nation&. The attitude- of the· culation in various parts of Russia. The bank also issues1 j B'olshe'Vik Governmentl 1 was .. a: ehallenige to eiv'et'Y· nation and' bank.-rrote cmrency,. the- varlue of the unit bein.g: equal to about to- the~ imi.ustri'ai and ' economie syst-em· pi•evailing throughout· $5.14-.. Under tlte law and. the regulations governing-· the. bank the- worltl: Tne B6lshevik leaders immediately deprived thE>' its; currency must be protected by a resel!ve equal to the en:tire1 American ambaasaddI", as well' as ait eonsulhr and diplomatic• curren<zy outstanding. Of. this· reserve, . 50· per· cent must . be• i•ep1!esentatives of this• Geve:rnment who were in Russia•, of thegold or foreign currency recognized as· sound and stable; such. privileges · w.hieh: custom an'Cf trea>tie& ho.d. provided- fur ofilcialS' as the American· dollar or the English pound. '.Ilha notes: o:fl of' tlrnt character, among them being the· right to sen<l wbles the bank; ar.e legal tender fou payments due th-e State· in! gold! amt to commttniaare wibh' theior' 6-0vernment; an'd finally· their and private persons. I. discovered that they; ~e-· in. g.rea.t 1 menacing- attitude compelled' these ofiidills· to withdraw from<lemand1 thronghont Russia and were: regarded b~· all clas.seB' Rtmsia. The attitude: of the• Bol-sk0"fists toward the· diploas be:ing stable and o:t the valu~ whial.J.t they· ware suppooodl to· matie representatives .. of othier · nations .w!io were: accredited;'· represent to the Russian Government wn& similar; and· substantially,

The introduction: of this new: and stable currency had a' aw or tfiem were· forced to leave· RITSsian soH. most salutary efi!ectT upon· the indnstria1 an'Cf bnsin-essr life of' Undoubtedly representatives of tfie Tinited Sta tea GovernItussia.. It affords a. eertJaini and dafinite medium. of exchange ment, as well as- otJUers, would l:ro.ve remained · in Rilssla had and a basis fo:r: · business . transacthms; whicft permits trans- · it not' been fbr'the abrogation of all treaties· and the tre·atment· a<ttJions relat ing to, the future to. be ellitBred: · inco: with'Out the-i a:ccorded' thelll' by the Bolsrrevifr' Government. anxiety and misgivings, not to say terror, which accompany .FoU@W-ing the: revolution in• MexiC6· and th'e' severing of' business dealings where- a violently ftnctuatinw currency is diploma.tic· relations· between the· United · States· and: Mexico involved. during the interregnum, and until relatrons were established

Wlhem l visited· the hW'lkJ in: Aiugust, the· president state(} ~ach• of' the~ governments· maintuftled ' uneffleful representathre~~ that the note•issuing department · of the· Bunk .showed· outstand- m the· others territory. ing: ehervonetzi amomrting to 10,761:,145. The· gold and fm"eign But, regardless of' tlle- .Past, tfl'e questiorr now is, "Shall' cullrency back of this- issue· aggregated' 5,31'3',302 ehervonetzi. the Government of the United State~ :iccord to the ~?viet G?vL was shown bills of' ex.change and other assets · which, it was ernment de facto or de j:rr.e: ~ecog_mtion,. or recognition wllich statJed, :fully· protected' the· outstu:nU.ing note issue~ Thi'S -bank may ~e regm·~ed as qualifie~ or su!J mo-do, or· stian there be bas correspondents iw most· :muimpean countries and has three- some mformal trade convention which IllllY' b'ring the peoples. representatives· in New Yorki. rt1has- ai larg'e' number of brancli· :of · the two countries into closer relations and facilitate trade banks through.out Russiru I wa:s pleased! to· learn that the an·d. commei~ce b.et:weet?- them? " U~doubtedly there is a wide n.ussian peol'le~ wa·ei beginning< te have: confluence irr hanks ·d1'1'f'erence· of op,rn10n m. tbe 1'.Jnited States· ag to what course and I was told by officers . ot several banks which r visited should be pursued, and .even in Rnssia ~e. views .of the people that checking a£countJS1 were' being' opened and~ deposits• being al·~ not enttrel;r: har?1omous. The view LS _entertarned by m~ny . ma.ode by an increasing nmnben of individuals. When' it• is-: citizens of the 'f!mted, States. t~at !1-o dea.llilgs of al!y kmd, recaiUe<l that the: Soviet Gev-€rnment destroyed all banka . and should be had ~1th t_he Bolshevik Government; that its atti:. interdicted the: use o:C mxmey., anti that thl.s( situ;a,tion exist-e:d' tude ~oward this. .Nation. a~ "!ell as others has ~J?-dergo~e. but up· to two yeWl.lS· agO', it . is quit,e, appmrent tJ.iat· pi·ogress· is being little if a~y ~hangP;; th~t ~ It lS not worthy ~f . bemg, a-Omitted.. made and a most remo.nkable- change in the views and' psyehal:.. into association with civilized nations. Still otheus believe ogy ~f th0' people has· occurred there should' be full or qualified recognition, and many think

0ne of the· banks· which r vistted im ~.f-Oscow occupies 8 the. time, has. .con:ie for a trade. agreement wi'th tl1e S<!v.i~t Gov~magnificent . building. and• employs· an large number of people; ~rnm.ent . . The v:iew: ~~v?rable to ~ · trade agreement is. ~n. part , A portion of the capital was· furnishedi by the Soviet Govern.. f(HID~ed upon .. the belief tha.t it wiU... not . 011~~ b~ hel:gfhl to _th& ment a.nd a considera:ble· part by· residents of Sweden a:ad Russ~nn p~ople .. b~t that it will b.e beneficrnl' to the Umted citizens of Russia. I visited this bank three ou four. times, States. F.1rst,. it is imtm~ant to ~ow that t'\1.e Government and. upon. each: ocaasion. it was· thronged! with people~ some· of the. United. Sta~s has, mterP.?Sed no obstacles .. whatev.er to_ of whem w~e- making deposits, others obtaining- money, rund· trad~ and. commer~ial ~e~gs between tlle Afn.erican, and the, some· beying bills· of exchange. The bank was doing a pTofi.t- Russian people: '.flie . ~.oviet Go¥:ern~ent. . or the .people. o~ nus-able banking bu.sinesS; The· officials- with. whom I con~rsed: sla, may buy ann; sell. m th~ .~ited States as freel~ .as. m a.Jl\Y, were sanguine of its · success' and optimist.in as. to th.e future other countty. .Atner1can Cl;tizens. m~Y. •. so far as this Gove~n.- . of Russia. In. Jilaxko.~ and Tiflis and othe!Y cities which 1 ment ls c:oncerned, trade with the ~o-yiet Govemment or w1.thi visited I found· banking; institutions-, \\ffiich were meeting wathi the Russian people as freely as with any govemment or it.s. ai reasonable: degi·ee of success.. Howeve~, I fonnd epl'osi~ p~ple. The. fact .is that whatever imp.~diments exist to the tion upon the pad of radical! communists, who regarded. the u~ost f.teedom of tra?-e and . commerce ~etween th~ . !~vo. coun,, . return, of banks to Russia as a repercussion of:capitalism which . ~-rres and ~heir inlialntants ai~e ~bui;id rn th_e positi?n-- taken. would, impede· the- fium establishment of 11 communistic· system by tlie SoVJ.e~ Government and tiie Ia.ws an~ regulations pro-

. muigated by It. SH.ALL THE' UN~:a::A~:o. ~~i?:.r:ii:::iN~~L~~I~ GOVERNMENT OR UndeJ: the Bolshevik policy-, the state. maintains a IDOLl.GJ)OlY'

of alt foreign tl'.ad~, and it , has, repeatedly declaxed. that i~ would: contfnue;- tliis. monopofy, ; while it has modified. its position •. with. respect. to internal trade, the position. of its, lea€lecs is th.ai it will never suri:ender its monopoly. of ' foreign. trade or . the ownership and control of the "heavy industries." A for~ eign.-tr.ade department has. been created, he11ded by Ki:asRin as Commissar, through. which. fm:ei-gn. trade is conducted and. undei~ w.hich the mononoly is maintained~ It has · rep.resentatrlwes in variOus countrl~. and until. recently there. were no exports o~ t

Prior to· the World. War· Russia constituted. a paxt of· the great family of nation:s and was recognized by all pow.ers. This position was· not changed by the war, except that the. central empires· severed· dil)lomatic relations with the Russian_ Government: The- Bolshevik Government signalized its accession to power· by· immediately abrogating, all . treaties" between Russia and other nations. Its positiorr waB one of· non.intercourse with. other states·,. and it sigp.ifled' its purpose to have

•

,7060 CONGRESSIONAL RECORD-SENATE APRIL 24

imports except by this state monopolistic organization. It exported whatever products and commodities left Russia and disposed of the same in other countries; and whatever imports found their way ·into Russia were under its control. This was true even with those countries with which the Bolshevik Government had full diplomatic relations. Recently a few companies have been formed, which · are under the control of the Bolshevik Government, which are engaged in a limited way in foreign trade.

Americans who have visited Russia for the purpose of buying Russian products for export or fOr the purpose of selling American products to the Russian people coulcl deal only with the foreign-trade department of the Government. They were compelled to procure licenses, both .to export and to import, and to submit to the heavy exactions imposed by the Government.

. Peasants or the owners of furs or other commodities may not exvort the same except through the Government or such organizations as have recently been effected and which, as stated, are controlled by tlle foreign-trade department. The soviet authorities snbmittecl to me a list of joint-stock companieR which are authorized to engage in foreign trade. The list shows that there are 1G amalgamated joint-stock companies containing foreign capital, 1 containing Government and Russian private capital, and G joint-stock companies including state capital. In ad•lition there are 3 foreign companies which have been geanted certain concesRionary rights to engage in foreign trn.de.

With respect to the 15 joint-stock companies, it is s tated that the capital consists of 48,500,000 rubles (gold), of which the Soviet Government has subscrihed 3,725,000 rubles (gold) and £367,105 sterling and $42,665. Foreigners have subscribed $02,G65, £365,150, and 3,850,000 rubles (gold) ; and Hussian citizens 11ave subscribed 375,000 rubles (gold).

Tile capital stock in each is divideu equally between the Gornrnment and the ~hareholders, the former owning GO peL' cent, but paying only 25 to 35 per cent of the capital; in other worcls, the individual shareholders are required to pay substantially 75 per cent of the capital stock aud to deliver to the Goi;-ernment 50 per cent, although it subscrihes and pays for but 25 per cent. The directors or mmrngers of the corporations are equally divided between the Government and the stockholders, but the president is appointed by the Government. The foreign stockholders and the sl;lareholders who are Russian citizens are required to furnish credits both to the company and to the state.

Imports must not exceed the exports, except that some important reason may justify an exception, and the aim mu~t be to export raw materials and semimunufn.ctnred products only. The general regulations also provide that the imports shall not compete with Russian inuustry and that both e:\.l>Ort and import operations must be carried on under the control of the foreigntrade department and its representatives abroad.

If the net profits do not exceed 40 per cent, they are divided equally between the Government and the private stockholders. If in excess of 40 per cent, the Government receives a greater share.

The three companies h_aving special concessions to engage in foreign trade are: Amalgamated Joint Stock Co., known as D. ,V. A. Britopol, whose entire trade must not exceed 15,000,-000 rubles (gold) annually; the Southeastern European Co. of Berlin, whose entire trade must not exceed 2,400,000 rubles (gold) annually; and the .Allied American Corporation, whose limit is fixed at 4,800,000 rubles (gold) per year. Each of these companies guarantees Uie Government 17 to 25 per cent of the actual invoiced costs of all commodities ex{)f)rted and import<>d, and 10 r~r cent of the net profits must first be deducted and paid to the Government. Tbe remaining profits a re divided equally between the Government and the company, with a further increase to the Government where the profits exceed 40 per cent of the capital invested by the Government. The Government has one or more representatives on the boards of these companies.

The Government, as stated, has six export organizations through which most of the foreign trade is con.ducted. Some of these organizations have representatives in the Uuited States and through them the Bolshevik Government buys and sells. The two large cooperative organizations, known as tlle Selskosoyus and the Ccntrosoyus, which have been referred to and which nre also subject to the control of the Government, are permitted to engage in foreign trade, and these organiza~ tions now have representatives in America, whose contracts and dealings must be approved by the representatives of the Soviet Government.

l\fany foreigners and some Americans have visited Russia during the past year hoping to buy for export and to sell in Russia foreign products. l\Iost of them· have departed without results. While the needs of the Russian people are great and

they would be glad to buy commodities to the extent of hundreds of millions of rubles, their impoverished condition prevents them from so doing. So little has been produced in Russia which can be expo1'ted that the foreign trade for an indefinite period will be inconsiderable, even though all restrictions by the Russian Government were removed. Neither trade agreements nor the establishment of diplomatic relations will create trade where the basis of trade does not exist.

Secretary Hughes quite accurately describes the situation when he says that Russia is an " economic vacuum."

Some of Hussia's neighbors are anxious for trade with her but the latter's exhausted condition and her lack of produc~ tion are obstacles to the realization of these desires. When Russia so far recovers as to produce for export, she will have foreign trade, with or without ·recognition of tlle Bolshevik Government. Hecognition and trade agreements are not indispensable to actiye business dealings between the peoples of different countries. There was a large volume of trade between the United States and Mexico during the past few yea.rs, even when there was no recognition by the United States of the Obregon government.

When I addressed the Senate upon the Russian question on the 22d of January last, the following countries had formal diplomatic relations. based upon peace treaties with the SoviE>t Govemment: Esthonia, Finland, Germany, Latvia, Lithuania, lHongolia. Poland. Persia, Turkey, and Afghanistan. Trade a.e;reements bad been entered between the Soviet Government and Au:o:tria. Ozccho Slm·akin, Denmark, Great Britain, Italy, and Norway; and without any formal agreement there had been :rn ex:chan~e of trade relations between Russia and China and Sweden. Within the past few weeks the Labor Government of Great Britain lias recognized the soviet regime, and repre~entatives of the two Go•ernments are now meeting for the purpose of drafting a treaty. We are informed by the press that diffirnlties are being encountered, and notes of pessin1iRm emimate from the conference, indicating that the negoti:=l tors are experiencing difficulty in agreeing upon suitable terms. ·

Mussolini has recently recognized the Bolshevik Government, ant1 r eprt-sentatives of the two Goyeruments will soon meet to draft a treaty. When in Russia, I was advised by some Bolshevist leaner ~ that a treaty with Italy would probably soon .be neg-otiateu, that Italy "·as exceedingly anxious to obtain coal and iron nnd other .raw materials of which Russia has an ah11ndnnee. Mnssolini hn.s exhibited great zeal in pushing fonval'd plans fol' the industrial and economic rehabilitation of Italy. It will be recalled, however,. that for several years Itnly ha.· ~llown great antipathy toward the Bolshevik regime; arn1 the SoYiet leaders, by tbeir emissaries and propaganda, sougllt ro di:;rupt the economic nnd industrial life of Italy and to ~t up a Communist GoYernrnent.

l!nrtouhrecllr the intri~w·s of the communists were largely ref'p1,.111:-5ihle for rhe industrial unrest existing in Ihtly fo11owingthe war and fo1· t11e strength of the Fa~cisti movement whklt place<l l\In>-:solini nt the head of the Italian Government.

'l'l1e ~~11ator from Idaho [l\lr. BORAH] in bis address snppurting hi~ l'esulution for de jure recognition of the Bol~bevik Go,·p1·n111ent 1->rat(><.l that no complaints had been rn:Hle by the ,goY(>t'!lnwut:-i wltich had recognized. the soviet regime of rniRconLlw: t or violation of conventions or treaties by the HolRhevik Go,·errnnt:>11t. I re~pertfully submit tllat the 8enator is mistaken. Hundreds of com11laints have been made by the GoYerumeuts wl1ieh haye recognized Ru~sia as well as by those who J1ave tr11de agreements with the soviet regime. TlleRe comp~uints grow out of alleged violations of agreements m1cl conventions and treaties entered into with the Soviet Goverurnent. • I learned from indisputable sources that the foreign office of the i;:oviet regime has literally hE>en flooded with protesrn u1H.l comph1ints upon the part of those nations which lrnye de facto or de jure relations with Russia. There has been exten~ive correspondence between the soYiet foreign office and the Governments of Finland. Latvia, Esthonia, Lithuania, Poland, Germany, ancl Great Britain, in which the Soviet Government was charged with deliberate violations of agreements and treaties ancl Rolemn pl'OmiRes. I talked with various pei·sous eonnectec1 with some of tlte.se Goyei·mnE>nts which have made protests and complaint::; nnd learned from them, as well as from other Rources. of tlte numerous charges of misconduct made against the SoYiet Go•ernment. Trotski told me of the controveri;;ies het"·een his p:overnment and Poland, and I learned in Mr1;;;cow of the prote~ts made by Great Britain because of the violations by tlle So\iet li0Yerm11ent of obligations ent~recl into between the two Gon•rnrnent~.

f-lenators will r~nll that several yenr::s ngo Germany was compelled to protest against the propaganda curried on by the Bol-

1924: CONGRESSIONAL Jl,EOO-RD-· SENATE 706[: sheviks within German territory ·and ordered a Russian communist who held a position with the Soviet Govemment .from the country.

The British ma.de a trade agreement wtth Russia under date of March 16, 1921. On September 7, 1921,, Lord Curzon, His l\Iajesty's Secretary of State for Foreign .Affairs, addressed a note to the Soviet Government pro:OOstlng aeo-ainst the activities of the Thil·d Intel'national in India, in violation olf the agreement to desist from propaganda in the British Empil'e. On l\Iarch 29, 1!)23, l\lr. MacNiel, British 'Underimcretary of State fo1· Foreign Affairs, addressed tbe Hcmse of Commons respecting soviet violation of the trade agreement, .a.nil llis Terna.ms will be found in the record of the Honse of Commons for tbis date. The British Foreign Office has issued two white papers containing corres:D'@nden~e with the Soviet Go'f'ei:nment respecting ,-iolations of the tra-de ng.reement {)TI the part of the soviets.

In May, 1923, the Gove1mment .of Turkey closed t-wo soviet cousnl-atro iln that country iand deported a numtler of gov1et ngents, including 'Consuls and the secretary of the embassy, on account of carrying on 1communi.st puopa.ganda. Ln Tu-l·key, contrary to the existing agreement with tlle Soviet Go ernment.

In August, 192'2, the Government of Latvia protested to th'e Soviet Goveriime11t aguinm newspapers and o:rgnnimtions in .:Russia which were eal'rying @n propaganda for the overithrow of the Latvian G<weinment, contrary to the tea."Ills of tdl-e i:reaty wifu Soviet ltussiJl..

In liay, 1922, the Government -0f Estlrnnia can'ied Ql1Jt a 1sen- ' tell!Ce of es:ecuti-on a~inst m.i Esthanian ctti2ien named Kill'gsett, wlJo ha<l been con\ictetl of 1'1.lurder under Estlll}nian law. ' b:ing;sett was a •<rommunist and 111l;(l been hnrb'ored by "the Hoviet Iiega.tfon. He wus not a Rus:>ian. .AfieJ.' the· execntJi!C)n Zino.viev made a memorial address iu Moscmv euloglruing KingHett, and as a further :in..crolt to Esthooin t11e Sovi-et GOTerament named a town on the .Esthoninn border .afte[' the con:vktell mm'1erer. Tlle Izvestia •of l\fay 17., 1922. tilrnatened J~thonia on ac.-count of ' the -executi(Jil •O'f Kh1gsett. Esthonill has ul!!!o made pl'otests to the Sov:iet GO'ler.nmeL1t again.st 00.'gauizations n.ruintai.ood. in Russia which C'a.TrY ·on propagau.da tl!or tlle Ot;erthrow of the Esth<mian Govemment i:n vi-Oiation of the existing agreement.

On August .25, 1921. tlle Gove:rnnmnt of Finland ,protested to ithe Smiet Goivernmernt iagainst the n~ performance as well as the violation of the treaty existing between the tw0 Govet·nments.

'i~he :treaty -of Rigl4 of March 18, 19~1, whida. settled the peaoo between Foland .an<ll the Soviet Go"iemment, aru.ong ra, 1Stipulations 1-equired the soviets to return to •Poland urchli.ves and other property carried away 1'rom tlUlt cou-atry, including 221 l<:>eoruottves and tbe ·manhinery of 100 factories. In .August, 1922, the Government <>f Polan.d protested -against t11e further wmcompH.ance upon .the part of •the Soviet Government of n,rtiicle 1J. of the treaty and made 16H specific demands fo1· ,-performance, of which .only 34 have 1.Jeen sa.tis:fied.

1n .September, 1922, ,th"e poliee "0f .:Berlin confiscated two Rtores of a1·ms which had been supplied German communists tllrough the agency of the military attaicll~ to the 11wvjet legaltioa at Berlin. .Reference is made to this epis0de dn the Germn n neWE.1la]Jer Viorwa1·tz a11d a desaription .of the magazine Of ar.mR secured at the Russian Embassy 1is giv.en. When I W2'.S

in Germany in October I 11eard from authM'itatiive ·soU!rces <><iln"t:"rning thiis matter and also '@f ~tber contr(JYenlies between Ge~many and Russia caused .by the misconduct of the latter.

In February, 1923, the Gove1-mnent -of Ozeeho-Slovakia expelleu ithe s@viet repreif01ttativ~ in tba.t oountr;v because -of

tile interference with internal ruiairs ot Ci11echo-Slovrrkia and because they were carrying on a propa.gande. in violat.ffi<m ,of the existing agreement of the Sovret ·Govemroont.

Although neither Sweden nor SwUrrerland has reeognized the Soviet -Government, 'both have bleen .compeUro to m:pel from thei.r borders soviet l"€i.)resentatives bercau-se 0t their .b~ehes of ilnternntional law and their efforts to -$prea.d l!iediti-on and .bring about industrial ·rollapse.

Senators will recall the inv-estigatton ()f MartAms conducted ·bY tlMc Committee on ~'oreig:n ..A.ff.ailt·s· of the Senate. This man claarued to be a representative .of the Soviet Government, irund it was shown that die was engaged .in extensive comm\Illistic p.ropaganda in the United Stutes and secretly promoted strJ.k.es and sought to interfere with tfie ·industrilll activities 'Of o-ur coantry. Wb.en it was al)parent tlaat he was to be deported Ire hastily ·«e.parted from tlle United ~tares.

These matters are referred to because of the claim made tby the Senator from Idaho and beczause "they ace re.tated. _pei:hnps somewhat Temotely, to the questioo .now being considered.

The .. Soviet Go\<ernment is a de facto entity, exerclsing governmental rights. Its authority is not vperfly ehaHeng~d 1

ithroughout Russin's vast territory, although its rule is a despotic ~me, exercisetl by a few individuals posseElsing dictatorial ! and autocratic power. It does not rest upon the expressed will of the people. The great mass of the people are indi:ffe1·ent to the form of government under which they Tive ; their sufferings have ueen so great that they -are more inrerest:ed in peace and ' in satisfying their mnterial wants.

N-0twithstanding its many elem~nts of weakness, the outwaTd npr>earances are that' t11e Bolsl'levik Government will control Russia for 11n indefinite period. Its tenure of lite, however, will depend upon ooncessions which it will make to the rising spirit of democracy a.Dd. to too intellectual and liberal forces which I .inevitably 'Will develop. Crm~l despatisms may exist for a time, even in this enlightened age, but the forces of progress and freedOJn wm ultimaitely sweep them away, whether the despot.ism be called a ·ilictatorship of tbe PTOletariait or a monarchy ielniming dtvime Tight to rale.

The Go-recriment of the United States early in lts hi-srory adop.too e. policy at val'iance with the t1mn-aecepted one in

·dealing with new states and gov-emments, particularly when tt10se states and governments }Vere the ptoduct of revo lut'ion. !!'be golf bernieen :a d'e fucoo gov-ern:ment and n de jure goveTnment wns -great. Legitim.nicy was U'1e important consideration, aucl the idea ·of legitimacy -was usunlly ·aE:l!!ociated with that o'f {l'ynastic interests and the perpetuation IQf moo.a1·chial governments. Under the lefl0e:rship 1of .Jefferson the United States was more ecmoerned in 'the .,quemion as to whetheir tl government •seeking :recogn.Uion was one in f.act rather than in ithie J')rincip1e 'of 11.egiitimillcy, as it .migirt be d.nvoil:vied in the a11pHcati<>n of the de jure principle. He stated that it aeco11<Js wlth our principle Ito "'tlcknowiedge .any gOV'e'.l'Ill1lerut to be riglat:ful which is fOI"Illed by ·the will of the natiou substantially declared. His view we.is that the essential of the de facto theory of recognition :ts that .the new ,government ·will eaL'ry .out all 1he international obliga.tlons of too state and conform to the principles of inter.nati&Enl Jnw. -Of "COUl'se .a state may be mclependent .8.lld may 1have capncity to discharge int.ernational ®ligations without :its .be.h g recfl~'Ili~ but the United States from the beg.inning has ·boo:i guided by the policy of ll'ecognizing .governments, wb~ther .111onarchica.l or f'epubliean, which the peqple within the state •.b.ave ::a.cknowleflged.

Ou.r Government b.as usually refirained fa:'om nssnming to ·deICide in fo.'\Tor of Ute -sovereign de jure and against tke soYer~ign. de facto, and l.las generally proeeeded 11]lon the theory !that the soverejgn de facto was tlle sovereign de jum. .However, .Seward stated ·the policy ()'f the United States to llave bee1!l <Settled ~n •tlie J.)l"illeiple that ·revolutions m :republican states ought not t@ be a;ecepted u:ntLI the people haTe. .adopted them by 01·gQ.ni:c law with the solemnities which 1vould .seem sufficient to ~uaran~ their -stability and permanency. lt is -0hvfo11.s that the people of Russia ha•·e not .adopted with due t11olemnity, or .at all, the communist creed t@l' the Bt>ls'llevik Gove-i:nmellt, but li.f recogni.tion were to ·depend upon the:Rdoption -0f an .Qrganic law fur tlJe -government &f tll>e people, upon full eonsW.e1mJtion and · n1~pro~al by .a. ma.jority ·Of them, :then the ·tlrnory upon which reeoguitien has ·often been accorded by Ure Unite:d 1Stutes wolil.ld ·be mo-dined.

We ntll.Y na:t ,refase .. to recogntze the .Soviet Govern-ment solely because -0f the communistic creed which the -dtctntors of Russia pmf-ess, mor :becaiuse ·the state controls all foreign .h·ade nnd owns, · operat.es, and controls too important industries o0f the. .i!tate. 'We may believe tlmt such policies are unwise tt:n<l di:s-41.str@us and that .its poMtical methods are @ppressive, and our Government has the right to ·withhold recognition if it deems it expecliEmt. There may or may not be .recognition where there is a _government, though 1it is not Q good .government. Ind€pendence does ll!0t neeessaruy mean good government oc tra.;nquillity. But even •under tae ·liberal policy ·Of recognition announced .by J:efferson and :fioUWed by this Repuhlic, it does .J10.t mean tnat e-vecy .gnvenim.ent w.hidl. may i?la1Ve .v.ion .its way .to .power -shall be i~ized ..

.'l.'here _are prineipJres of ·in.ternationa.I law w.hich may be invoked to determ:tne w.ln:eth.er a <State is entitled to recognition . . Grotius ham demonstrated ·tbftt tlhere is a law of nat:i,-eas as tliere is !,JllUil~~pal law. [nt~rmrtmal law is merely that body o.f customai:y .oW cooiventional rttles wh.id1 rrr~ oonsicl~d legally bindin,.g :by eivil~d ruutions ta th~lr intercou:rse wHh each. other.

Man..v wtiters oon.terul ·tlmt ·thefle rnles nntl usnges hwve legal obliga-tions .as w~ll as rbe.ing nmrnlly Mnd!IIDg; tb.o.t they imaar

·be enfnr.ced in the fonun of oon.science .us wen as by some . :extetrllal .t.o~ . It :is obvio-us that civi1i.zed nations must have

CONGRESSIONAL RECORD-SENATE APRIL ·2.J

rules and usages to govern their relations, and because of the increasing activities of nations and their important and vital associations there must be treaties for the protection of their common interests and for the promotion of the general welfare of the people. These mutual interests of nations have developed a system of international law which unites the separate civilized states of the world into an " invisible unity." All states, including Russia, are entitled to be admitted into the family of nations if they possess the attributes and qualities of a civilized state and 1f they will consent to be bound in their international conduct and relations by the rules of civilized states. They must be competent to discharge their interna-

! tional obligations. They must be so attached to the principles of honor and national integrity and morality as to respect the obligations of international law and of treaties, and they must

1

with fidelity perform such obligations. · Our Government, as well as other civilized states, has the right to determine whether they regard the Soviet Government ' as qualified for admission into the family of nations. Does it fulfill its international obligations? Does i~ agree to be bound in its relations with other nations by the principles of international law which are recognized by civilized states? The fact that the Bolshearik Government has not been recognized by most civilized states indicates · that they have felt that there were some conditions which operated as n bar to such admission. Russia, however, is changing, and if the Bolshevik Government signifies its willingness to meet all international obligations and to conform her conduct in dealing with nations to the usages that prevail among civilized states, and furnishes evidence of her bona fides, then it is entitlell to be fairly treated nnd its application for such admission should be acted upon without prejudice and in all candor.

nut tllere may be a conditional recognition, or such informal relations between Russia and various states as do not amount even to a de · facto recognition.

The treaty of Berlin of 1878 accorded recognition to Bulgaria as an autonomous principality, with the restriction, however, that there should be a Christian Government and a national militia; and Serbia and Rumania by the same treaty were recognized conditionally that there should be complete religious toleration within each of said countries, and further that Rumania should restore certain territory to Russia. In the recent treaty between the allied nations and a number of the new states of Europe, important limitations and restrictions were imposed upon the new states, and they were required to guarantee religious liberty as well as protection of minorities in their rights to enjoy certain educational advantages and other privileges. And where restrictions have been imposed, preliminary to recognition, nonobservance of the conditions will justify refusal to grant recognition.

It has been claimed that the trade agreement of 1921 between the British Government and the Soviet Government was tantamount to a de facto recognition of the latter. It is true that the British court, king's bench division, decided that Russia had been recognized as a de facto government, but the decision rests upon a statement by the British Government that the Soviet Government had been recognized as the cle facto government of Russia. In this trade agreement provisions are found calculated to facilitate trade and freedom of communication between officials and agents of the respective governments. A reciprocal provision is found by which all claims of either government or its nationals against the other in respect of

1 treaty or obligations incurred by former governments shall be equitably dealt with in a general peace treaty, which the

·agreement indicates will later be enter('d into. A British trade mission is now in Russia attempting to increase the trade between the two countries. Great Britain has been deeply disappointed because of the small amount of trade which has been de\eloped, and the view is entertained by some Britishers that but slight benefits have been derived from the trade agreement.

There is a misapprehension in the United States as to the extent of trade, which, under any circumstances, will be developed between the United States and Russia. In 1913 Russia's entire foreign trade was but 2,910,000,000 gold rubles, her exports being 1,521,400,000 gold rubles and her imports 1,038,600,-000 gold rubles. Of these amounts German exports to Russia in 1913 amounted to 453,600.000 gold ruhles, whereas her imports from Russia aggregated 652,200,000 gold rubles. Great Britain's entire trade with Russia for the same year totaled 440,000,000 gold rubles. ·

The entire trade of the United States with Russia for the same year was but 92,000,000 gold rubles, or approximately

. $41,000,000. There is no reason to suppose that a relatively greater proportion of Russia's trade will be with the United States in the future than in the pre-war days, although it is

obvious that if large credits are extended by American business men . to Russia the exports from the United States would temporarily at least increase. The tariff duties imposed by Russia, even if there were no governmental foreign-trade monopoly, would be an almost insuperable obstacle to any considerable volume of American e}l.rports to Russia. The policy of the Soviet Government is to develop Russian industries. .That policy calls for extremely high tariff duties, and these are supplemented by trade re~ulations which are almost prohibitive of importation into Russia of commodities which are imperatively needed by the people. The Soviet Government has placed embargoes upon various articles. including automobiles, and efforts are being made by Bolshevik leaders to exclude imports of commodities which Russia is able to manufacture or produce. It is perceived by the soviet leaders that, with the large agricultural population of Russia, there must be developed a home market for agricultural products; while the foreign market is important, it is realized in Russia that agricultural products will increase in volume in European and South American nations, as well as in the United States.

In 1913 the foodstuffs and livestock exported from Russia nmounted to nearly nine-fifteenths of her entire exports. Without domestic markets for her farm products, agriculture will languish and the peasantry continue in a condition of economic slavery. Accordingly, the policy of the Bolshevik Government is being directed toward reviving the manufacturing industries of Russia, in order that there may be a wider market for her domestic agricultural products, and at the same time barriers are being raised against the importation of commodities which Russia can produce, or if she can not now prolluce them, against all that are not imperatively needed for the rehabilitation of the economic life of the country.

If Russia can obtain credits abroad, and if her industries shall revive and her agricultural production is increased and markets obtained for the surplus which would result, then Russia will become an exporting nation and considerable trade may be developed with the United States. But Russia's present fiscal condition and the propinquity of Germany, Czechoslovakia, and other manufacturing states give them an advantage over the United States in the matter of Russian trade; moreover, with their cheaper labor, America will have difficulty in competing with those countries which lie at the door of Russia and who before the war had an extensive commerce with the Russian people.

The information was frequently imparted by soviet leaders that many commodities, among them hardware of all kinds, were not desired in Russia, nor does the Bolshevik Government favor the importation of most farm implements. The United States, however, does manufacture certain articles in such mass quantities as to enable them to sell cheaper than European countries. Moreover, Russian citizens, particularly peasants, recognize the superiority of various American manufactured articles, and they would welcome conditions which would permit their shipment to Russia.

Throughout Russia there is a desire for closer relations with the United States. The people are grateful for the relief extended, not only by our Government and the American people, but by European and other nations during the famine period. Most of the people have a childlike belief thnt the United States, like some fairy godmother, can lift them out of their distress and put them upon the path of safety and happiness. The peasants lacking clothing, particularly shoes and cotton goods, and also agricultural implements, believe that their wants can be supplied by the United States, and this increases their desire for such relations and condition:::; as will enable them to satisfy their needs. They do not quite comprehend why American manufacturers do not ship more products, nor jus'· what causes operate to prevent freer tra<le between the two countries. Some Bolsheviks, whose hostility to the United States is not concealed, desire trade relations OT recognition because they think it will enable Russia and her industries to obtain loans and credit in the United States, and will likewise increase Il11ssia's export trade with the United States. There are some communists in Russia who endeavor to create the impression unfavorable to the United States, that it is hostile to the Russian people and is averse to closer trade or other relations. Interviews with hundreds of the "intelligentsia," who were bitter toward the Bolshevik Government and its leaders, revealed that there was a general <lesire upon their part, either for absolute or qualified recognition or for a trade agreement similar to the one between Russia and Great Britain. Their view ancl the Yiew of a majority of all classes of noncommunists is that Russia must work out her salvation slowly, and that her progress toward liberty and industrial development, of necessity, will be slow and painful ; that the reforms,

1924 CONGRESSIONAL RECORD-· SENATE ~063

which were slowly being evolved, are the result of pressure from the peop1e. and that still greater concessions will be made in the direction of liberty and progress by the Soviet Government. Their vie\v is that the closer the contact between Russia and other nations, particularly the United States, the grettter and surer will be the progress toward normal conditions and a tolerable condition of life in Russia.

My attention was directed to tlle great benefits that had resulted to Russia from the relief expeditions, whose personnel

1 bad come into contact with millions of the Russian people. Tilese associations, as well as those which follow from the

·visits of foreigners, dispel prejudices, strengthen the morale of the people, expand their vision, afford opportunity to con-

1 trast the Bolshevik r~gime with other Governments and the citizens of other countries, and increase the desire of the Russian people for greater liberty and for freedom of speech and of the press.

It was repeatedly stated to me that if nn agreement for , trade relations were entered into between the United States and the Soviet Government many more Americans and foreigners would visit Russia and that their presence would con

' stitute a protection to the Russian people against Bolshevik oppression and act as a liberalizing force throughout the land. Everywhere the cry was for more light from the

· outsi<'le and more opportunities for the people of the world to . visit Russia. The peasant, as well as the bourgeoisi_e and the intellectmtli:::, appreciate that Russia's destiny is in the hands of the Russian people, and that with moral support and the sympathy of civilized nations, as well as aid and benefits derived from trade and commerce, they will be armed with such moral strength as to push forward toward the summit, which will mark the political, industrial, and moral emancipation of the people of Russia.

There were some who believed that any recognition of the Bolshevik r~gime would be imprudent and unwise; that it would increase their prestige and their arrogance to such a degree that a reaction would set in toward the " left " and a p.trong retrogressive movement would be inaugurated. The ai:gument for trade relations was made by others, who conceded that it would temporarily increase the prestige of the Bolsheviks, but this would soon be neutralized, because the people would perceive that trade relations did not constitute recognition, which impUed some distrust of the Bolshevik Government and a probationary period during which its conduct would be the subject of international examination.

It was also argued by some that trade relations, or C::\'en a conditional recognition which imposed certain conditions precedent to be complied with by the SoYiet Government, would have a most salutory effect upon the Go"Vernment and its officials, nnd strengthen those who sought in good faith to have the Soviet Go\"ernment comply with its contracts and· observe its international obligations. The contention was further made by non-Bolshe\"ik Russians that recognition or close association with the United States would be regarded by the Russian people as a protection against any possible foe, and that in turn would compel a material reduction in the military forces of Russia. Still others argued that Bolsheviks had so11ght a rapprochement with the :mast. Contact with American and with European nations would dilute such desire-and. this they regarded as important for the peace of the world.

The material argument was emphasized both by Bolsheviks aud others. Intimate relations, they said, with the United States would mean increased trade, which would be of advantage to America. It was urged, moreover, that if the United States at this time should meet the a<lvances of the Soviet Government in a friendly way it would be mo1·e inclined to conform to American ideals and place greater reliance upon America to aid in the rehabilitation of Russia. These and other reasons were urged for trade relations with or some form of recognition by the United States.

.Kalinin, President of the Soviet Republic, stated that if recognition meant that they were to be taxed too heavily " It is better to wait, for Russia will grow stronger." ,; The Government would gain very little, as it sells what it can aud buys what it must have in its own primitive way." ~' But recognition would hasten foreign capital into Russia, and industrialization of the country would be quicker, anu -from this point of view the Government would gain."

But some communists of Russia have no illusions. The sane and practical leaders comprehend that they can not indefinitely hold the Russian people in political and economic servitude; that important changes in the direction of liberty must be made or· their power will be destroyed ; and the people, who seek lil>erty, realize tllat they must press forward, gaining slowly the difficult heights which lie before them. But they

I

shrink from the horrors of clvil war and from the consequences of any! revolutionary movement, and hence will advance slowly with halting and stumbling steps.

The I various reasons above stated may be regarded by some as so chimerical as to be unworthy of consideration by the United States. Doubtless there are many who feel that no suffi.ci~t reasons can be urged to justify the United States in changing its present policy toward Russia. Undoubtedly the questiqn is not withdrawn from the realm of legitimate debate and h?nest controversy, and the opponents of recognition or any cqnvention with the Bolshevik Go"Vernment find strength in the fact that the Bolshevik Government confiscated the property of American citizens of the value (estimated) of more 'tban $460,000,000. Moreover, in the spring of 1923, when the Japanese troops departed from eastern Siberia the Bolsberiks seized and appropriated the property of ~erican cirizens of the value of approximately $75,000,000. In addition the Soviet Government has stated that it does not acknowledge the validity of the claim of the United States GoYernment against Russia for loans made and for sale of surplus war materials which, together with the interest amoun~ed on November 15 of last year tq approximately $232,: 000,000. Of course, these acts of the Bolshevik Government can not be condoned and must be tnken into consideration if any negotiations looking to a trade agreement between that Governli1ent and the United States are entered upon. The nttitud~ of the Bolshevik Government toward nations with which

1

it has diplomatic relations or trade relations bas not been satisfactory upon the whole to such nations and as indicated, tbe Bolshevik Government has failed to co~form' to those principles of honor and probity which should exist amona nationsi. Moreover, it is charged that the soviet authoritie: hay~ vrnlated . agreements and have shown a disregard for solemn obligations which have been entered into by their Government.

I haye been asked by a number of Senators what was the value of foreign investments seized and confiscated by the soviet authorities. I am unable to submit any precise or accurate information upon this matter. I made many inquiries of Bolshevik officials as well as others outside of the Communist Party who were residing in Russia and in Germany in order to learn the extent and value of foreign holdings seized by the soviet leaders. Some placed the value as low as two and onehalf bqlions of dollars, while others placed the maximum at fifteen billions.

An American who had large investments in Russia before the war, and who had spent several years in Russia and was familiaf with foreign investments, stated that the amount of money )actually invested would perhaps be less than $5,000,-000,000,1 but that the holdings had increased in value and investments had brought accretions to the capital, so that, at the time of the seizure, the foreign holdings were worth at least $10,000,000,000. He called attention to the oil fields which had been developed in part by foreign capital and to their enormous value. Tber~ were also large foreign investments in the mlr:.in~ and

metallutgical industries, in urban real estate, in the textile and chemical industries, as well as in railroads and other trnnsportatio.n facilities. The French, perhaps, had larger investments than any other country. Ilritish investments were large, and thej Germans, for several years preceding the war, were making considerable investmeµts.

The Bolshevik Government has repudiated all obligations ir.. curred by the Kerensky or czaristic governments. Some Bolshevik leaders stated to me that if they recognized the claims of foreign governments or the nationals of other governments for proI!erty confiscated by the soviet regime, Russian citizens would insist that they be compensated for the losses which they had sustained.

While, insisting that no compensation would be made to foreign governments or their nationals, I was told by some of the saner and more liberal communistic leaders that the matter had not been concluded and that the Bolshevik Government would consent to discuss the claims of the United States and other countries as well as their nationals growing out of the expropriation by the Soviet Government of investments and property in Russia. I might add that Cllicherin and sev~ral other leaders called my attention to the proposition submitted by Russia at the Genoa conference for a settlement of the claims of foreign governments against Russia and Russia's claims against such creditor nations. It will be remembered that the plan submitted by Chicherin was wholly unacceptable to the nations participating in the conference, land in my opinion· it will never be accepted by our Government. The cl!Uims of Russia against the United States

·7004 CONGRESSIONAL RECORD-SENATE APRITI 24 ! ·--~~~~~~~~~~~~~~~~~~~~~~-· !

. I and other governments grow out of the alleged invasion of · The PRESIDING OFFICii;R. Russian territory by the allied and associated powers during sachusetts object?

Does the Senator from Mas-

and immediately following the World War and after the· Mr·. WALSH of :Massachusetts. On the strength of the ' , so-viet r~gime had been establlsbed. statement of the Senator from Utah thnt he has conferred I · It io my opinion, however, that the Bolshevik Go~ernment with the representntive of the minority, the senior Senator realizes the importance, indeed the necessity, of coming to a from North• Carolina, I shall not make any objection.

· satisfactory unclersttmding with the foreign creditors of Ros~ The PHESIDING OFFICER. Tile Cl1air hears no objection, sin, and will be willing to make some composition of the clatms anll the reqtrest of the Senator from Utah is granted.

' against her. The more liberal' soviet leaders appreciated that, Mr. SUOOT. I will say further to the Senator from Massa-so . long as the stain of repudiation rests upon Russia and ~he · chusetts that if any Senator objects later I shall not ins1!i<t on is tl•uthfully charged with dishonoring her obligations, her the p1·ocedure. opportunities for obtnining credit will be restricted and her Mter the conclusion of Mr. KrNG's speech, industrfal development will lJe retarded. There are "isola- STOCK-RA.ISING HOMESTEADS

' tionists" in Russia as there are selfish and provincial persons in this country. Tlie sound thinkers in Russla perceive thnt Ur. JONES of New Mexico. I ask the Presicling Officer to she must be brongl1t into contact industrially ·and economi- lay before the Senate tlle amendments of the House of Repr~ cally W"lth other nations and that trade and co.mmel'ce must ' 1sentaUves to Senate bill 381. be f~stet"ed. The PRESIDING OFFICER laid before the Senate •the

Tbfs view is being strengthened and will more an<l more I amendments of the House of' Representatives to the bill ( S. 381) dominat Rns~ia's doruestic anu foreign polictes. Trade break~ to amen.a. section 2 of the act entitled1 "An act to P,rovide for down nrtifleiul and intellectual ba1"l'iers, removes racial antip- stock-ra1sm ... g homestead.s, and for other vurposes, approved. nthfes, and promotes .a more catholic and desirable interna- Decemtler 29, H:>16, which were on page 2, line 21, to strike. tional spirit. The intolerance and fanaticism of Bolshevism out ". Where," and insert in lien thereof "but no right to wlll not only su:tl'er from intellectual erosion but will be un- occupy such lands shall be acquired by reason of said applicn-

. dermined by illternatlonnl trade contracts, and br the remo\'al tion until s~id lands have been designated as stock-~·aislng of the dams which held back the streams that curry not only lands: Pro·mded, lwwei·er, '.rhat wbere"; on page 2,. lme 22, mut rial things btlt the intangihle Rnd im a1pnble forces which after the word "applicant," to insert the word "actuanv"; on so powerfully advan~e CiV'ilization throughout the world. page ~ line 23, after the wo1·d "land," to insert "which he i8'

Mr. Pre~ldent, notwithstanding the dark record of tbe hereby authorized to do"; and on page 3, Hne 4, after the Bolshevik Government, its craftiness nnd its sinister inter- word "his," to insert "residence Rnd.' national activities and its imperialistic ambitions, I will sup- Mr. JONiilS of New Mexico; I move that. the Senate disagree p0rt a polfcy which contemplates a trade agreement between to the amendments of the House of Repre~tatiqes, ask for the United States and Russia. However, tbe1~ must be stlpu- a conference with the House thereon, and that the Chair apIattons and proV'i!lons which will fully protect our Government point' the conferees on the part of the Senate. anu its nationals. I am influenced in this position largels The motion was agreed ~o ;. and Mr. LADDi l\Ir. STANFIELD, because of tlie condition of the ihtellectuals in Russia as well ruid Mr. JONES of New Mex1co , were appointed' conferee,,' on1 the a:-s the peasants; and' because they feel that closer relations part of the Senate. with the United 'States wm stl'engtlien them in the eirortg being made to ft'ee Russia' from the cur~ of Dolshevllt rule a'.1ld to e!tablieh a freer and better system of government under wutch liberty and j'ostlce may be enjoyetl by all.

But th~re must be assurances given before any agreement sbnll be entered into, that all jnst and valid claims of American clt1Zens ~hall be met and that the amount due the Gbvernment of the United States shall be paid. There must also tie sttpulntions, sim1Ui:t to tho~e found in the British trade agr~e:ment, thnt will protect th~ United States against hostile propug'trnda withhv its borders by the Bolshevik Govetn~nt and it!!! ageuts and represenbltivu, inclttdtng the Tlihxt In~t·nationnt. 'Jlhe Bol8l1evik G-Ovemment must likewise agree tbut in i~ rel!I.· tions and deattngff wltb tlle United States ttnd its natiohals· it' will observe the principles of: ilrternatfona.I law as recognized bf the civilized· ~tates oil the world.

If the· soviet r~~ime shall ihdlcate its deS.1M to enter ihto a. trade convention with the United States, witll the guaranties and. stipulations libO'Ve indicra.t:ed~ then it is my Ot>inlon tM.t arrangements should be made tor representntl~es of ' the two Government.a to meet and. prepare a suitnble trade a~veement.

Duri.ng the deli"very o:f Mr. KING'S speech, Tbe PRESIDING OFFI0ER. The hml1· o-f 2 o'clock having

acdved, the Chan• lays before the Senate the unfinished busiw ness.

'l:he &mate, aH in Oomwitte of the Whole, resumed' the con· 1sideration of the bill (H, R. 6715) to reduce· t.md equaur.e taxai. ti()n, ttJ provide revenue, and fo1· other purpo~s.

.Mr.. SMOOT. ~fr. President, wm t11e s-e-n:lfor yield for a ll)()I0011 t ?

Mr. KING, I1 yield. Mr. SMOOT. I ask that the formal reading- of the bill be

', dispent;ed with1 that tll\!! bill be readr for · a'.ll:len<lment, and tllut the committee amendtnents be first considered.

Mr. WALSH of Maase.chusetts. I dO' not intend to ob;Ject personally; but the Senators in charg.e of tile bill for the- mi· nority are not o.n file 1loor1 and I wi. h the· Senaror would make his request when they cume in. I refer to the Senator from North Carolina [Ml". StM:MoNs] nttd the Senator from New '.Mexico [Mr; JoN1i:8]. Othe~ise I shall llave to suggest the absence of a quorum.

Ur. SllOOT. I will say to the Senator tlla.t I have had a num~ of conferences with the senior Senator :Crom Nortl1 Oat'Olina, and I shall make a' statenlent later tha'b when we begin to read the bill for amendment, any atnelldment that is objected to may be passed over.

Mr. WALSH of l\faseacbugetts. I do not wunt to be an ob· structionist, as the Senaoor ltnmn. 1. simply W'ant ro protect ,the rights of the minority.

TAX' REDUCTION•

The Senate, as in Committee of tbe Whole, resnmetl the consicleration of ' the bill (H. R. 6715) to teduce aud' equall~ taxation, to prd'V'ide revenue, nnd for other purposes.

~Ir. S)IOOT obtained the floor. Mr. CURTIS; l\lr. President, will the Senator from Uta'h

~ielU that I may suggest the atlsence· of &. quorum? Mr. SMOOT. I yield. Mr. CURTIS. I suggest the absence of a quorum. The PRESIDIN'G OFFICER. The Secretary will call the

1'011. Tlle principal clerk called' the roll, ttnd th~ following Sena•

tors answereu to their names: Adll.m1t Illrn!!'t McKellar Illlyard li~erris McKinley Bhll1<,<lg~e li'ess Mc!,ea.n Brofikllart Fletcher' M{!N1.1.t•y Drt>us.9Ud Fra111ier Mayfisld Bruce Glass Neely Bursutn Ho.le N o'rris f'.an1e1'0n• I h.r1•is Oddic Capper. Uulrison Overman Caraway Reflin l 1epper Cope'lartd Howetl Uttlst'on Curtis J'o11e111 N, Me:r. Rn:nsu<fil Dal~ J._9nes, We.sh. Sllep~u'tl

• Dial h.c>ndrlck Shields DHl ' ~!ng Sltip!rtMd F.awards .uadd Shortridge Elkiae Lodge Simmons

8mith Smoot Spencer Staulleld Stanley Stephens Sterling SwttnS'On Trammell Underwood Walsh, Mass. Wahrh, Mont. W1uren w~tson Willis

Mt•. HEltLIN'. I have boon :requested to announce that the juuior Senator from Geotglu [1\111. GEORGE] is absent 011 business of t'lle Senate:

The PRl!lSIEJ~G OFlt'ICER Stps-st:ir Senators hav1ug an· swered to their names, a. quo1'tlm i'S present.

1\ir. Sl\lOOT. Mr. President, in what II have rt> say to·day 1' do not intentll to d'iscttSs tne · unimportant aruen:drnents Which have Men i~ported to tile pending bill b;t the Committee on Fi.nnnce. I wish to make a brief, concise, and plain statement regarding tl1e important changes Which have been provided fOl' in. the ijendin.g l:Hll ftom tl1e existing re-venue• 1<1w. :ti'orr tl1at reason I am going' to 1H1tt that r be not inmrrUt1ted, for ln the dlscllS$io11 -vvhtcll no doubt wm follow Ut}Oll the bill tor some clays to come there wm be ntnpte opportunity t;() a.sk all questiotls which it may be desired to ask and also ample opportttuity to auawea: such queHttons. So I shall confine my. statemeu.t to•dn~ ro an1 e:x];)la;ilat:i<>n of the item3 of the bill whlcl1 a\'<:> of viml imPortance not only 11,s atrecting the revenue of the Gov• ernment b'Ut tts· aftectiug the Uusiness inte.rests 013 the United States and of ev~ry taxpayer tbe1·~ini

M!I:. lh!~Si<lent, the greatest p1'0blem conftonting this count1"$ to-day is the one of taxation. The country is overtaxed; the

1924 CONGRESSIONAL RECORD-· SENATE 7065 people are staggering under tlleir tax burden. In 1922, according tQ the figures contained in the report of the National Industrial Conference Board, local, State, and Federal taxes amounte<l to approximately $7,610,000,000, of which approximately $:l,OOO.OOO,OOO was collected by the Federal Government. For the fiscal year 1923, Federal taxes amounted to approximately $2,?>19,000,000, divided as follows: Income anu profits------------------------------- $1,691,000,000 Misce11aneous internal revenue, comprising sales and

exciRe tnxes ----------------------------------- 723, 000, 000 Estate taX--------------------------------------- 126,000,000 Capital-stock tax__________________________________ 81, 000, 000

The taxpayers of the country demand and the industrial developme11 t and the business expansion of the country necessitate a retluction of this tax burden to the fullest extent justifiable in Yiew of Ute revenue needs of the Government.

The Pre:..;ident of · the United States in his Budget message of DecemlJer 3, 1023, gh·es a comparison of the estimated expenditures of the Government with the estimated receipts, the estimated receipts being based upon the preRent internal revenue laws. These figures show an actual surplus for the fiscal year 1023 of $309,657,460.30, an estimated surplus for the fiscal year 1924 of $329,639,624, and an estimated surplus for the fiscal year 1925 of $395,681,634. Since the effect of any reduction of the internal revenue taxes wi11 be felt only to a very

.small extent prior to the fiscal year 1925, there is, under the estimates contained in the Budget message, approximately $325,000,000 surplus available for tax reduction.

It should be 1Jorne in mind that this estimated surplus in excess of $325,000,000 is available only if the strictest economy is practiced by the Congress. As a result of the establishment of the Budget and as a result of the cooperation of the present administration and .Congress in a policy of retrenchment and economy, actual expenditures, based upon the issuance of warrants authorizing withdrawals from the Treasury, have been reduced from $6,558,470,516.29 for the fiscal year 1920 to $3,009,290,444 (estimated) for the fiscal year 1925. The existence of the surplus for 1925 is dependent upon the continuance of this policy of economy. There are now pending before Congress bills authorizing the appropriation for various purposes of $3,143,606,176, exclusive of the estimates for the soldiers' bonus bill, which under the insurance plan will cost approximately $135,000,000 the first year of its operation. The authorization by Congress of the expenditure of any considerable portion of this amount may wipe out the surplus and make tax reduction impossible.

It has been urged the public debt is being retired too rapidly and that if it were retired at a more moderate rate there would be a larger surplus available for tax reduction. In support of this argument it is pointed out that there was a reduction of the gross debt of $1,072,000,000 during the calendar year 1923. An analysis of the item will show, however, the fallacy of the argument.

Of thls total reduction of the public debt, $212,000,000 came from the general balance fund, that is, the working capital of the Treasury. This reduction was accomplished by use of money in the general balance fund at the beginning of the year to retire the public debt. There · was on Decemher 30, 1922, $536,000,000 in the general fund ; on December 31, 1923, the general fund was $324,000,000, the difference, $212,000,000, having been used to retire the debt. It is obvious that since this reduction was accomplished by the use of money on hand at the beginning of the year it affected in no way the net worth of the Government. It means simply that the Government on December 31, 1923, had $212,000,000 less cash on hand and a corresponding decrease in the debt than on the same date a year prior. It is a fluctuating condition wholly immaterial in its effect on the net debt. This part of the reduction was not made by use of the revenue of the year and consequently is not properly chargeable against the year.

Coming now to the net debt reduction during the calendar ·year 1923 of $8GO,OOO,OOO, this is accounted for by two general items: $387,000,000 excess moneys in the Treasury, and $473,-000,000 certain items chargeable against ordinary receipts. The first of these general divisions, the $387,000,000, is the excess of receipts over expenditures for that calendar year, which automatically went into debt reduction and which constitutes what is ordinarily termed the surplus. It is this surplus which is available for tax _reduction. To the extent this surplus is used up it will not hereafter go into debt retirement. The remaining $473,000,000 which was used to retire debt during that calendar year was composed of several items, the principal ones of which are the sinking fund and the foreign repayments. When tlle acts authorizing the issuance of Liberty bonds were passed Congress adopted the sound prin ...

cip1e of providing for the ultimate retirement of these bonds through a sinking fund and through the repayment of money loaned by the United States to the Allies. The sinking fund provision divided the total debt of $20,000,000,000 into, roughly, $10,000,000,000 for domestll:! purposes and $10,000,000,000 to be lo~ned to the Allies. The sinking fund was set up to retire the qomestlc part of the debt in about thirty years, and the foreign part of the uebt it was assumed would be taken care of by

1 repayments to us of the money we had received from the

sale of Liberty bon.Q8 and loaned to the Allies. This sinking fund 1is a part of the contract the United States has made with the ~alders of its Liberty bonds, and to change this contract woulQ. be for the Government to break faith with those who supported~ it in its emergency. Aside from these sinking fund and foreign repayment items of the $473,000,000, there was the FedNal re~erve banks, the estate tax, and forfeitures, and only $22,000,000 to be accounted for by the franchise tax on gifts.

It will be seen from the above analysis that the only change in the rate of debt reduction whic-h Congress should make is with t·eference to the surplus, which for the particular calendar year tl.923 was $387,000,000, and which,.it is estimated will be $329,000,000 in the fiscal year 1924 and $39G,OOO,OOO in the fiscal

1year 1925. The committee concluded, therefore, that the

tax r~duction bill should be based upon the estimated surplus contained in the Budget message of the President, and in the bill as reporterl by the committee provision is made for the fulles~ tax reduction justifiable in view of this surplus.

The table of estimated receipts and estimated expenditures contained in the report of the ~ommittee indicates a deficit of $50,989,444 for the fiscal year 1925. It is the belief of the committee, as well as the opinion of the Government actuary, however, that the stimulus given to business by a r:eYision of the surtai rates ancl the placing of the income tax upon an economi~ally sound basis will so increase the revenue yield of the income taxes as to wipe out this apparent deficit.

There are three major points to be considered in connection with the reyenue bill as reported by the committee: (1) The rate of income tax on individuals, (2) the rate of income tax on cotporations, and (3) the estate tax. I shall discuss these points in the order stnted above.

In the existing law the normal tax upon income of individuals is at the rate of 4 per cent upon the first $4,000 of income and 8 per

1 cent upon the remainder of the income, and the surtax

rates begin at.1 per cent of the amount by which the net income I exceeds $6,000 and does not exceed $10,000 and are gradu11ted upward to a maximum of 50 per cent upon the amoru;it of the net income in excess of $200,000. In the bill as reported by the committee the normal tax is 3 ·per cent upon 1the first $4,000 of income and 6 per cent upon the remainder of the income, and the surtax rates begin at 1 per cent of the I amount by which the net income exceeds $10,000 and does not exceed $12,000 and are graduated upward to a maximum of 25 pe:u cent of the net income in excess of $100,000.

It has been contended that these rates reduce the taxes of the wealthy taxpayers to a greater extent than they reduce the taxes of the smaller taxpayer. This objection to the rates aR reported by the committee deserves first consideration, since, if it ~s sound, it constitutes a strong argument against their adoption.

Accqrding to figures prepared by the National Bureau of Economics persons having incomes of less than $10,000 had for 19t18, the latest year for which figures are available, 88 per ceht of the national income and paid in 1921, 22 per cent of the national tax. For the same years persons having incomes of oYer $100,000 had approxfmately 3 per cent of the national income and paid 28 per cent of the national tax. Under the bill as reported by the committee more than 50 per cent ot the reduction in income taxes would go to the brackets of $10,000 or less, and approximately 20 per cent would gv to the brackets in excess of $100,000. That is, those taxpayers having 88 per cent of the national income and paying only 22· per cent of the tax would benefit to the extent of 50 per cent of the reduction, while those having 3 per cent of the national income and paying 28 per cent of the tax would receive only 20 per cent of the reduction. These figures nnswer conclusively any argument to the effect that under the bill as reported by the committee the reduction afforded to the wealthy taxpayers is disproportionate to that granted the smaller taxpayers.

It may be urged with reference to some of the less important provisions of the bill that they favor the wealthy taxpayer as compared with the small taxpayer. For example, it may be urged that the earned-income credit gives greater relief to the large taxpayer than -to the taxpayer C1f moderate means.

CONGRESSIONAL REOORD-SEN ATE

The earned-income sect.inn p:vevi.des fox a 25 ~ l'.lent r.eductlon in the tax en .earned il'.lComes net in excess o.f $10,000. The taxpayer whose tax on hi.1:3 $10,000 of earn.ed inc0me is at the rate of 31 per cent receives a credit of 25 per cent of the tax barne by such income, whieh amouiu:, of course, is tn excess o:f the credi•t received by tile man whose itax on bis .earned ineome is at the rate of -on:ly 4 or 5 :i;>er cent. It is obvious that any provision reducing propo.rtiouately the tax on a given amount o:f earnecd income give.s .in terms 0f do.liars more relief to .the man whose tax on his earned income is at a mgh rate than to the man whose tax is at a low rate, since the tax paid un such 1Bcome by the one is Mg-her than that paid by the other. This result is perfectly logieal if it is desired, :as the committee saw fit, to pr.oportionately reduce the tax: on e-air:med illcame.

In recommending the reduction. of the su.rtax r.a;tes tl1e committee has :flotlowed the advice of puactiea:Jly-ev~ aiuthori ty, irrespective of pMty affilii.ations, who has stud~d the -question. Their reduction has. been recommended by President Wilson, by P1,esident Harding, and by President •C0olidge. Tll.e recommendations of the last tbre.e Secr,etaries of the Treasury-Secretary Glass, Secretary Rous.ton~ and Seeretary Mellon-have been t4> the same eff-ect with respect ,to the high surtaxes. Secretuy H-oust@n, in his annual repoirt for 1'920, sai:d ~

Tbey [the higher sur'lla.xee] ha:ve ipassed the point of maxim1un productivity a.nd are ra.-pid]y drivln·g the weal:fill'ier taxpa:ye1•s to trans:!!er their inv.estments into the tbousa11ds of milllo11s of tax-'f1-ee securities which compete 80 disastrously with the industrial imd railroad securities u.pon tlla.e re11df ·pm-chaste of w:htch the ·Etevelopmen·t of industry and the erpansion of toJ.teign 'trade intimately ·depend.

The disastrous effect upon the country of the combinatfon of tax-exempt securities .and high surtax .rates is obvio.u.s. In !9!3, prior to the incidence of tll.e income tax, the taxexempt securities outEitanding amounted to ,$3,822,00.0,000. .At the present time tax-exenwt s.ecurities outstanding amount to more than $12.,000,000,000. ·This tremendous; increase is due in large part to the sti~ulus gi.ven to boi:r.owing by the S.tates and muuictpalities by · the exemption of their securities from the Federal income tax:, and the effect has l>ee:n net only to undermine the Fede~·~l .taxing system but to encourage wasteful and extravagant e:xpenditu11es by the States .a.n.Q municipalities. .

The high surtax rates contained in the present la.w are diverting the free flow of capital from pr.oductive enterprise aud. forcing it into tax-exempt ae~urities. Under the mmmum rates contained J.n the pres.eiit law an industrial or :i:aih\08.d security must yield 12 per cent to make the net yield to the taxpayer equal to tbe :return from .a 5 ~er .cent tax-ex~t. se.curity .. An industrial or r.ailroad security must ~ld 12 per cent under the highest surtax :raJtes to .compete· with taxexempt secuTities yieldi.Ilg 5 per cent. The resul.t is that the prudent iuvester can .not in:vest in productive en.terpl'ise but is forced to put his capital in tax-exempt securities. The. industrial growth and the business prosperity. of the c~untry must suffer uncler such a system.

The higher surtax.es not only stop business tra:m:sact:lions that · would normally go th.lio-ugh and di9Courage the !M¥elopment of new business but i.Jl. additiiooil they are 1.Epossible of et>llection. The lesson taught by the .decline of the i~ames iin excess of $300,000 has been stated before, but may well be· repeated . at this time. T.he foHowir.J.g ta.ole demonstrates clearly that the higher surtax rates have pailSed tbe paint of Ill&rl'mum productivit;y and, through forcing, taxpa~s tO' invest !in tax-exempt secia.rities and adopt -Oth.e.c legfl,l metb.o-Os ·~:>:f a;v.oiding the higher .r.ates, are failing to accompli.&b. tbe very ]>Urpose f-0r w.hlch they were designed.

I ask .Senators to examine this ell.a.rt., whicl1 I shall pl.ace upon the wall, 9.Jil.d if there is anything on. earth that wiJJ. demonstrate the .truth to a man who w.a:11ts to kn-ow,, this chart iWill. The results, .as showil'.l. on the eh&rt, wWr pr@ve what I have sta.ted be;vend a .question ·ef do-ubt. I ask at this paint that this ch.art he mserte<il .as .a pa.rt of DilY rema:I'ks.

'l'he PRESIDING Oli'FlCER ( M.r. LAnD in the eho.d.r). Is there objection.? 'il.'he Cha:ir hears .none, and it is so .ordered.

,[.Chart No. 1 a:ppears Qll opposite page.] Mr. JONES of New 1\fle:rl-co. l observe that the chart ooes

nGt cMt:tain so very muy figl!LI'es. Comd niot the Senn.tw gi.\>ve . us a gen.el'al statement as ta what it abowsr/

Mr. SMOOT. I wdJ!l do that naw, t:f the Sem:ator wants me to take the time to do so. I bave a prepared statement, DOt i.& ·'1etail, however, because I felt tb.at amy Sena,ter wbo· wanted imormation ae to eve1·y .figure could 110alt on the chart and find iit. A..fter I read this, if .it is not clear ro the Senab0il", I will call -every ;figw·~ t-e the attention of the Senate.

The .chafl't will SBl:>W that tatal [}<!lit incomes increased tr.om· $0,2~577,620 in 1916 .to $19,577,212,-528 in 1921. During this same period net incomes of $300,000 an-d more decreased fr<>m $002,S7219W in 1916 oo $153,534,3-05 in 1921, and the number of tax~-rs reporting incomes in excess of $300.,-000 dee1ieasetal income fram dividends and interest on 1nv.estm.ents increased from $3,217,348,030 to $4,167,291,29~ while such income reported by the $300,000 class -of taxpayers· decreased from $706,945, 138 to $155,370,228.

Where did it go? Six years ago on the fioor of the 'Senate I introduced a joint resolution with a view to amending the Cbn:stitution so fill.at h.e-r~fter t'he issuance of tax-~x-empt securities WO'llld be p 1rohibited. I know there ts no chanee -of having such an amendment ad01>ted now, but the day will come when it will be done.

What h'a:s h1.rppened in the ease of incomes of $100;000 and more from 1@16 to 1921 is equally illun:rirrating as showing that the higher surtax rates aTe not productive of revenue, but are being avoi'cled.

Incomes over $l00,0GO constituted 29.5 per cent of the total income reported in 1'916 and · 5.4 per cent .and 4.5 per cent in 1920 and 1921, respectively, returns under $31000 being eliminated in all cases so as to make the figures fairly -comparable. I! all salaries and wag.es be omitted, the percentages for the three years become 36 per cent, ·9,1 ]!)er cent, and 8.3 per cent, respectively. The income from business. professions, and M for.th, reported ill cla.sses over $100,000 fell from $862,000,000, or ov-er 25 per cent of ille wb.ele, in 1916, to $260;000,000, -0r about 5i per cent, iu 1920; and. to ·$1361000,000 or 41 ,per cent of the whole, in 1921. Dividends re].ilorted in classes over $100,0.00 fell from $9#~000,000, o.r roughly 44 per cent o.f the whole., in 1916, to $465,000,000, oi· 18 per cent, in 1920,..and.$332,000,000, or 15 per cent, in 1921. Rents and .r-0yalties remained substantiaUy unchauged in total, but the amount xeported in , classes over .f.1.00,000 f.ell -off 60 per een.t ill 1920 and :70 flel' cent ln 1.921, .as compared with .1916.

The ine:tf..ectLvieE.ess of the higher snr.t&-x rates as r-.even.ue p.roducei~s is s}m-wn gr.aphically in ,the charts w.b:i.ch I hav.e placed IUJ!)Oll .the wall for Senatoxs tel examine.

The fu."St clia.rt is a comparison af tbe numb>er of per.senrul income-tax returns fo1· the calemdair years 1916 and 1'921 b.W grouips -0f income el.W3ses. Tbe mid'dle 3.im.e <011 ithe cln.a:rt indicates the liOO ~ een.t point. -On the bil.sis of the number o! persons in 1916 who paid t~ bem-g 100 per -cent, the · num .. ber ef pe-rs<ltli9 ·in J921 wha paid itiaxes on meomes between $10,060 . and $9Q_,OOO. had mcreased .53 per cent. On incomes of $501000 t $200,000, wltJa. 1916 as the- 100 per cent basis, in 192il. there h&d been. a decrease ef 25 per cent. On incomes of $1,000,000 and over, on. the ibasis .of 19M beiag 100 per ceE.t, ill 1921 they had dee;ueased t-0 .abouit 12 _per cent. Where a-re they? Where is the income? Where did it go? AM yet the .Senn00 of the United States would pcrpetuat.e this thing, this crying ev'~ upon the business interests of the country and. u,pou the tal:;I>a_y.e.rs of the United .States.

AigaJD, the net 'Income reported. in per.sGnal rett1ms on iucomes of $U>;OOO to $50,000 in ~16 was lOO per cent and in rn21 '95 $)e.£ <;ent incre&se; inicomes betweeu ·$50;'060 .and $300,,oeo, 100 per cent in 1'916, and in 1921 they had fallen almost 50 pe-r .cent; . .incomes between $300,.000 .and $1,000,000, being :WO per .cetl.t in 19161 in 1921 they had fallen to 19 per <ient; · mc0mes- of $1.000,000 .and over, being lDO ,per -cent in 191G, ha.d fallen in 1921 t-o .a little less than -8 per ceJ!t.

Take the tax yieiids reperood in ~sonnl .returns for the same y.eatrs and what do we find? Tbe taxpayei.1s with iillr comes betweeR $10;000 -and $50,-0001 in 1916 wer-e 100 per -cent, and in 192.1 there ha.d been Rn merease to 1,.()20 per cent. What <mes it mea.n, Senatm:s;? ..ue y.ou trying to take CllNli of the man wh@ is· strugg1Lng tJo get along in the woddi· hn.comes b>etween $50,000 and $300,00Q, in· 1916 1-00 per cent, had incr.ea:sied in 1921 to ov-er 400 p~ cent. Ineomes of $300,-0GO to· $1.<>001000, in 191() l@O pei· cent. bat so l"apidly did they. dec1ine that they were -only 50 per cent of 1916. The inroomes of $1,000,000 and over in 19.16 wexe 10@ per cent whiJ.e in. .1921 they ha.d dropped to 60 per .cent.

You ·are not going to catch them as long :a-s you leave the doors wide open. I want the doers closed. I want the man of weailth to pay his proportionate share of the taxes. I want to say to Senuoo·s now tlr:il.t if we should! keep the sl.ll'tax.wf a:s· high as the IL<mse bill provides or as hi:gfh. as the amendr men.ts offe-r-ed by tln:e m;i.nO'l'ity in this "ody would pllovide, we• will never prevent the escape of the man who r.eeeives $100,'000 iswome or more.

I I

I I

1

~1924 CONGRESSIONAL RECO~ENATE _____ - 7067" ! c:B~m' No.' 1 . ...--0ompa"8on of fl1'tnkr o/ p~on fl1 lnc<>m~ taa> ret~ ff>f ~11tnclar "a.rs 1.llt.6 and 1.921, b~ uroiip8 of iiJcome

l I • <;la.as'~ ' : "'I - •

100

50

0 8 10 000

. to . ·so ooo 1

_. ____ _

191~

s:so ooo · to 20 .. 0 000

, J ai;;k at thls pelnt te baV& tft&-elutm t& wnie1' I ha,-e--Pe-fe:rred printed as a part Qt my remarks. ~ ,

'fhe PRESIDING OFFl<JWR. Without objection .. tb4t request of the Senator from Utah 1- granted.

l Charts Nos. 2 and 3 a~r on pages 7068 and 7()69,] )Ir. SMOOT. If any further argument is ~•edeq to convince

one that the htgher sur*8,x-.s are less prQdUctlve,. of revenue fr~m the large i~e• t~ reasonable ant1 ~de:n1.te rates, it is obtained from f\.o eoeipartaop of the surtaxes &dually collected frQlll the larger 100oines tor the years from 1916 te) mi.

Year Total surtax

t ' $1 m~ :::::::::::::::::::::::::::c·::::::::::: 4~: ~: ~: l!ll8_______________________________________ 66.1, 281, 021

HH9---------.. ------~ ... ------~------··---·-- 8Bl, 624 306 ll.}20.------·-·---------... ---------- .. -----~·- 59' 8031 767 1921________________________________________ 411, 32'f, 684

11916 was a ye'"° of..\qw ~tu ra~.

$81, '°4..t.M IOl,931,9?5 -21&, lM ~601,'10 134, 709, 112 Sf, 797,~

Ptll'Centage ol'total ol those in excess of *300,000

'6,8 ~.5 33.8 ao.• 22.6 ~.6

D-0 you want any more ev-ldence, not hearsay, not polltlcal claptrap to catch the voter, but evidence shown by the returns of the taxpayers and the eollectlons made by oul' Gqvernment? •

Mr. W A.LSH of Massachusetts, Are not those reductions <lue tG wealtll vutti:pg ~ts money into tax-exemp~ securities?'

Mr. SMOOT. A large part of it, but there are other reasons.

t '

1916 191&

0

. ,.

~----------11111111!........ ·1-----------....... 4

I.

B 2.00000 to

f& I 000 000 o.nd. .O\t'eT I (' I 000 000 ·.

M,:. WlLsa of MaMltl~'mHltt~ Does B&t· the-SM&tor tbillk som Qt thill 1' due to the d!ICQ,-ery ' of -means of evalllng the inCOPlfl. tax' ~

:rt.Ir. ·~IMMONS. May I S$). that too Senator froJl Utah ask~ . oot to be interrupted atid I hope the Senat r from Ma88fl(lhusettt will not inter~ him. ·

M)., W A.I..sH. of Massachusft$8. I beg the Senator's pardon. Mr. ~oar. Approximatel1 ~e S&lll& amount of surtax was

coll~d ~ incomes in excetJlll of $800,000 in 1916 \"$en the surtax ?atet wtre at a maxlmu~ .,f 18 per cent as was ~llected frora. tJie lilfUDe incomes in 19a:l when~ incomes were subject ta.. at~llQl JUU:tax. ot- 6Q .llU ~t.. lu tha !ace of u.e u.)>ove stati.stt.c~ c.an. fµ.lyone argue for _the ~nt4mance of high surtax rates on tbQ 8f<>Und of taxing. the wealthy? Such an argument must ignej.'e the proven facts and can be made only for political pu~

In cone usion it is believed that the surtax rates contained in ~he b\n, as r~~te.~ l;>.y the F4\ai;i.ce Co~IQttt~e will st\QI~lata b~~µ~ and ~nQOurage tuvest~~v.t~ in µrod.qcUve enter~rises and ~t ~e ~ame. time will, in the lQµg run, i11,ci·ease the revenues fJ."om the ta~el:i on tbe l.arger i}\comes.

T:ti.e bil\ a~ t;evorie<l by the con;i~lttee repeals tb,e capital stQc.k tax '\WQ~ corwra~ons and tncreases by H per cent ttie i11co.n;te ta;x on corporatto:qs. Th~ repeal of the capital stock tiu; mefil\S a lo~ of revenqe of $85,000,000 a year and the increa~e in th~ corpora tton income tax :i;neans a gain in revenue Q;f $104,000.000 a year, with t~e net result that cor- · ~w-atlons will Pf\Y appro~~ately $19,000,000 a year more tn taxes under Ule bill t\la{l up.<ler the versent . law. '.fhe eft'~et of the cbf:).nge uvon t:tie va:rfous classes of corporations Cf.lil be stmply and easily shown. Those corporation.$ e~rnl:pg a retum ot les.s thau, ~f P~t cent u.pon ~e fai.r average '"alue of their capital stock · wlll pay less tax under the bill than under thEl

•

present law, and those corporations earning a higher return than 6i per cent upon the fair average value of their capital stock will pay more under the provisions of the bill than under the present law. Tbe effect of this change is to apportion the tax burden more equitably among the different corporations by shifting it to a limited extent from those corporations earning a smnll return upon their capital, such as public utility corporations, to those earning a large return upon their capital. In addition, the change will relieve corporations of the burden of preparing two complicated tax returns upon two entirely different bases, and will greatly simplify the work o~ the Treasury Department in auditing returns.

In considering the tax on corporations the restoration of the excess-profits tax and the imposition of an undistributed profits tax will undoubtedly be suggested. The excess-profits

tax has been tried in practice and found to be arbitrary and inequitable in its application, as well as stifling to business expansion in its burden. Any suggestion for its restoration must ignore, and fly in the face of, the lP,sson learned from experience.

The proposals heretofore advanced for an undistributed profits tax have contemplated the imposition of a differential or additional tax upon that part of the earnings of a corporation retained by it in its business, and the argument advanced 1n support of · the proposal is that it would prevent the use of corporate form and the retention of earnings by corporaticns to avoid the income tax on the stockholders. So far us the fnmily corporation, the holding company, and other corporations dP.~igned or used to prevent the imposition of tax upon its stockholders are concerned, an adequate penalty is provided

CHART No. 2.-0omparison of net income repo1·ted in personai returns for caiendar 11eara 1916 and 19!1, b11 groups of income classes

PE..R CENT

~00

150

roo

50

0

·' 92.1

810 000 to I

50000

650000 · to

300 000

f~; in the bill. Section 220 imposes a penalty upon such corporations of 50 per cent of their entire net income, a sufficient penalty I am sure to discourage and prohibit the use of such corporation in the future for purposes of tax avoidance. So far as the operating company is concerned, it may be well to determine whether their profits are being retained to avoid the surtax. For the years from 1910 to 1916, the years prior to the imposition of the high surtax rates, dividends, according to figures prepared by the National Bureau of Economic Research, average 53! per cent of the profits available for distribution. From 1917 to 1922 complete figures are not available. but in the case of the 141 largest industrial corporations Jn the United States dividends averaged 65 per cent of the profits available for distribution. And for the year 1922, according to data furnished by the Secretary of the Treasury

8300 000 to

I 000 000

1916

. -~

192,t

a, ooo ooo Q.l"\.d.

oveT and published in Senate Document No. 85, the amount of cash dividends, $3,031,324,385, constituted 53 per cent of the amount available for distribution (the amount available for distribution being determined by subtracting from the net income $6,586,774,764, the amount of income taxes paid by the corporattons, $82~,34-R,845) • This seems to be a complete answer to any argument that an undistributed profits tax is necessary to stop evasion of the income tax on the stockholders.

In discussing a ·tax on undistributed profits, there are two additional points which should be brought out: (1) An undistributed profits tax which would collect from a large stockholder a tax comparable to the on~ which he would pay upon the earnings if distributed would impose an unconscion.able burden upon the smaller stockholder, who would be subje<;!t to little, if any, tax upon the earnings if distributed; (2) the

\..

t

I I I I

-1924 I

CONGRESSIONAL RECORD---SENATE 7069 , lmtJOsition of a tax which wou.1d place -additional pr~ure upon a corporation to distribute all of its earnings and which

1 would in fart penallze lt 1f it failed to distribute all of its

i earnings would be ln.imlcal to the business welfate and the ' inidastrlal pr~perity ·of the country. Sound business finance requires the retention by corporations of a large part of their earnings in <>rder to take 'Care of the busihess expansion <>f the oountry and at the sa.me titne prot~t the compe.ny agalns;t future losses. Sound policy dictates that pressure should be put upon corporations to reta.i'n. b. partion of t~ir earnings and profits rather than to force them through unsound taxation to distribute their entire pron.ts.

The tax on corporations ln the bill as reported by the com• mittee is equitably apportioned between the different COf>poratlons and will interfere to the lea~t p<>ssible extent wlth . the business welfare of the country.

Threre reniatns for conSideratl.'()n only the matter of the rat:e o:t the · tate taxes. In the present law the estate taxes re.n~ from 1 I per ~nt 10t the amonnt of the estate in excess ot $50,QOO rbut llGt ln excess of $1~000 to 25 per cMt 'Jf the amount of the estate in exce8s ·of $101000,000. In the bill as passed by the House the estate-tax rates are increased to 'a maximum of 40 per cen.t ot too amount of the estate in excess of j$10,000,000. Tbe committee recommends the · re<'nlction ot the Bouse rntes.

It should be borne in mlnd in considering the question ~f estate-tax tates that the ~sta.te of a decedent ls subject not only to ~n.tton by the ~er.al Governrnent·but ls also subject to tax b:r, the State of which the decedent was a resident at tbe time of his dee.th or In which bis property was located. I'll some lustaniees the -estate of the decedent ls subject to tnheritan.ce taxation n'Ot only by the Federal Government but also

rep<Yrted t'1t perS<OMl 1'3tut-n8 ~r ottlendar gears 1916 and 1921, ' by ur<mps of income eiass~s · ·

bH.ART No. 3.-0omparison of taw yield

. I

I'

by th.ree or four Stares. - The rare of taxation 1n some of the States is very high. For example, 1n Mis~uri the inloorltance tax reaches a maximum of 80 per cent, as it does Jn Illinois, and in Arkansas and Wisconsln the maximum rate Is 4-0 per cent. If, in addition to the State inheritance tax~, the Fede:ral estate tax is Increased to 4:0 per cent, _the cmnulntlve effect

· of the taxes upon the property of a decedent will be con, fiscatory.

Inheritance taxes are properly sources of revenue for the States, and in most States they are ·a material elemetit tn _the State budget. In the budget of the Federal 'Governll'.lent they nre comparatively a small ~lement. If the fte1d of inheritances as a source of ta.xatlon ls iponopoltsed by t~ Federal Go'vernment, it will compel the Sfates 1n re80tt to 'Other methods 1)f taxation and lnerease the tevy up0n tand. 1 If the Federal est:a-te tax ts kept at a tnodetat~ rate, lnherttances ·C'Rn 'con--

tintte to be 11 'So\Jt'ce of :revenue ·ror both the Federal GoYernment and the ~tat~. A ftlrther increase, howeTer, must result ln the States, in order to avoid confiscation, relinquishin~ lhe field of Inheritance taxation. ·

It mhould be n!membered that estate tu.es are a levy .upon capital and, to the extent that they are used to defray the current operating e~enses of tl:le Government, capital is being destroyed to meet current needs. The effect ot capital levies npon market conditions shou~d not be 1gnored. Even at the t>N!Sent time Jt ts often necessary to Uqulde.te to the extoot of M per cent the estate of a decedent in order to pay the Federal and State Inheritance taxes. The fo~d sale of the property lnduded fn • the estate not -only forces down the market nlue of euch property but elf~ adversely the market value or all property. This t'YOlt ~ the prodgctlvlty of the tax both to the Federal Government and to the States.

7070- CONGRESSIONAL R.ECORD-SENATE. · APRIL ' 24 -.

The estate-tax rates contained in the existing law which the committee r~ommends be restored reach a maximum rate of 25 per cent. A higher rate can not be collected without affecting adversely the revenues of the Federal Government and of the States as well as the value of property.

In connection with the estate tax the ·committee recommends an amendment to the House bill eliminating the tax on gifts. This tax, a graduated one, levied upon an annual basis and . granting an exemption of $50,000 is impossible of effective ad· ministration. Upon its face it invites evasion. In addition it would constitute a further levy upon capital and is objec· tionable for the same reasons as an increase in the estate tax is objectionable.

In conclusion I want to point out that the bill as reported by the committee reduces the tax burden of the country to the fullest extent possible in view of the revenue needs of the Government. In addition it is designed to interfere as little as possible with the bus;ness progress and industrial .develop· ment of the country. A revenue bill which nccomplishes these two results represents wise and constructive legislation.

DEMOCRATIC POLIOIER Mr. OWEN. Mr. President, the time is near at hand when

the Republican and Democratic Parties will again go before the people of the United States protesting their policies and asking support of the people. A careful examination of the party platforms discloses the purpose on the part of each to appeal to the people as a party of progress, determined to reduce the high cost of living, to abate monopoly, to compliment the farmer, to safeguard the business man, and maintain the national honor. Party platforms read like the Ten Commandments. They sound like . the Sermon on the Mount.

nut after all is said and done the people must judge political parties by tbe forces which at any particular time are in control of the party organization and its canuidates and officials when elected. Not only in America;- but throughout the world the opinions of men in regard to government may be classified from those who believe in the rule of the few to those who believe in the rule of the many. The groups who think property rights as of first importance and other human rights of second importance belong to the so-called " right," they are conservatives, reactionaries, tories, monarchists. The groups who regard human life as of first importance and property rights of next importance belong to be so-called "left." The groups on the " left " go from the extreme of conservative Democrats, progressive Democrats, Farm-Labor Democrats, to those who may be classified as Socialists, and without classification are the Communists who believe that individuals should not own property at all but that all of the activities of the citizen should be directed by the State.

In the United States the great body of the people do not belong either to the extreme right or to the extreme left. People who believe in communiRm in the United States are entirely negligible. Even the Socialists have no adequate party organization and no expectation of exercising any party control.

The great body of the Amerknn people, fully 90 per cent of the people, are divided between those who support either the Republican Party or the Democratic Party.

Within the Democratic party there will be found a considerable number of citizens who are conservative in opinion, and in the Republican Party will be found a still larger number of citizens who are liberal and progressive and who hope to make the Republican Party a liberal and progressive party. These liberal and progressive citizens have had sufficient influence in the Republican Party to induce that party in their national platforms to Insert such generous sentiments as these:

The farmer is the backbone of the Nation. Justice is demanded f'!r the f.armer. An equal share o! prosperity is demanded for ' the farmer.

At the same time the conservative elements are sufficiently strong in the Republican Party to put through the following declaration.:

We pledge ourselves· • • • courageous and intelligent deflation o~ • • • credit and currency.

· Under this vainglorious and virtuous declaration the high cost of living has not b~n relieved but the deflation of credit anu currency has been carried out terribly. It has been responsible for a f~arful industrial depression and under this unintelligent policy the farmers of the country were completely bankrupted in 1921, 1922, 1923 under the Republican administration.

Under the demands of the progressive elements in the Republican Party the Republican platform demands that the Federal reserve system should be free from political influence and then the conservative Republicans use that system to deflate credit and currency, bankrupting hundreds of thousa11ds and throwing millions of meu out of employment.

To satisfy the progressive elements the Republican platform declared for a plan of railroad transportation that should give the country a more economic and efficient service.. In actual practice the control of the Republican Pal'ty resulted in the highest passenger and rate service ever known in Arue1ica.

The progressive elements obtained in the Republican platform a declaration in favor of the Federal Trade Commission, and the conservative elements in that party have not hesitated to de· nounce the Federal Trade Commission on the floor of Congress, to intimidate the commission and relatively to paralyze its efforts which, in spite of all opposition, has nevertheless been of service to the country.

The progressive Republicans secured in the Republican platform a condemnation of the Democratic administration for failing impartially to enforce the antiprofiteering laws, while the conservative elements laid a tribute on the profiteers for unlimited campaign fun<ls and are recognized as . the closest and most reliable friends of the profiteering class, both in the matter of taxation and through the failure of l\Ir. Daugherty, the Attorney General of the United States, to prosecute numberless cases presented to that department by the Federal Trade Commission. ·

The progrel"ll"live Republicans were recognized in the Republican platform by a pledge to the service men ai:; follows :

We hold in imperishable remembrance the valor and the patriotism of the soldiers and sailors of America who fougbt in the great war for human liberty, and we pledge ourselves to discharge to the fullest the obligations which a grateful Nation justly should fulfill-

And so forth. While the conservative elements of the Republican Party in

actual power in the last Congress framed a bill in such a manner that it was known in advance a Republican President would veto it, and that such a veto would be· :su:;tained.

This bill was a fraud on the veterans, intended to conciliate them while virtually denying relief by proposing a bill containing unnecel"lsary and fatally objectionable features. The bill deliberately put the United States Treasury in jeopardy by requiring payments of huge i:;ums in face of a deficit of i·evenues and making no provision for payment. It was a golcl bl'ick.

The conservative elements were strongly opposed to th.e soldier bonus au<l have carried on a huge campaign against it, and when it passes-it will be passed because- the Democrats and the Progressive Republicans are sufficiently numerous to compel the passage of some relief, in spite of the opposition of the con· servative Republicans and conservative Democrats.

In the National Republican of April 12, 1924, published in Washington City, under the apparent sanction and approval of the Republican National Committee, appears an article PY John T. Adams, chairmnn of the Repuhlican National · Committee, claiming great credit for the progressive attitude of the Republican Party in relation to woman suffrage, while on the front page of the National Republican appears in heavy headlines an article by Albert H. Laidlaw denouncing the Progressive Republican Senators, such as BROOKHART, LADD, FRAZIER, NORRIS, LA FoLT,ETTE, by name, and the Farmei·-Lahor Senators SHIPS'rEAn and MAGNUS JOHNSON, and progressive Democratic &enators WHEELJ~R and DILL, as being a part of a movement to overthrow republican government in America, desc1·ibing them as anti-Republican and as affiliated 'vith the communists, a willful libel.

The American people are compelled to take their choice between the control of Government by the Republican Party or the Democratic Party. Any citizen who is a conservative at heart will find his views reflected by the actun.l management of the Republican Party. Those who are progressive and liheral will find their views more nearly reflected by the Democratic Party.

THE CONSERVATIVE VERSCS THE PilOGillilSSIVE

It is not necessary to think of a conservative as a man unpatriotic or necessarily hostile to the poor. The conservative is a man who believes that the welfare of society depends upon supporting as vigorously as possible the great industrial leaders and magnates who have established and who control the great .Industries of the country. The conservative thinks that by holding up the hands of the big men and the rich men

•

1924 -CONGRESSIONAL RECORD-SENATE 1707I that they will be prosperous, their enterprises will be successful, and the prosperity of the few will descend, like the dews of heaven, to bless the lands beneath by their gentle dews, and that prosperity will trickle down from the top on the bottom.

The liberal or progressive man thinks that the laborer and the small business producer are entitled to a fair reward for what they do, for what they create and produce, and that social and industrial justice should be assured equally to the iich and to the poor, and on that basis there will be gre~ter stability and permanence in the prosperity of the Republic.

This explains the difference in tiuch an act as the child labor act. The conservative says he is opposed to the child labor act because a child of tender years has a perfect right to work to help himself and his parents and make m.oney in the factories and help to make the factory prosperous and successful as a money-making institution. The liberal an·d progressive says a child of tender years is entitled to be educated and to have opportunity of playing and developing in the open, that in that way his future productive power to the community will be greater than if he is stunted and shriveled by hard labor during his tender years. Its a matter of point of view.

The conservative demanded deflation of credit and currencv in order, by limiting the number 6f dollars and the facility of getting dollars by credit, to increase the purchasing power of the dollar, because his stocks and bonds and revenues were payable in dollars and the more valuable he could make the dollars the greater power he would have in the business world. He did not reflect upon the fact that deflated credit and currency would bankrupt the farmers and stockmen and small producers and small banks and small merchants. He had no ill will against them. He was only concerned in strengthening himself. ·

The progressive takes the other view that it is against the welfare of the country to contract credit and currency and to reduce to bankruptcy the small people, apart from its justice, because when you destroy the consuming power of the multitude you break down at the same time the productive processes of the Nation who produce in vain when there are none to buy.

It is the point of view which is important in determining the national policy. ·

Capital and brains and labor are equally entitled to a fair reward for services rendered and neither one can be safely deprived of its just return. Necessarily, capital and brains and labor are partners in industry and must be so regarded, and whenever capital or brains or labor is unjust to the other the partnership will lack efficiency and the community suffer. This fundamental truth is slowly being learned by the world and ultimately will be the established rule of human conduct.

It is the duty of citizens to support government and not the duty of the government to support the citizen, but the great powers of the people organized in a government may be exerted economically and intelligently in many benevolent ways to pro-mote the common welfare. ·

The Democratic Party, as the progressive party of the country should simplify its platform and make its appeal to the peopi~ upon the undying principles of that party, and this pledge should be solemnly and most conscientiously kept by every man trusted by the people on this platform-

The strictest economy of government. Integrity and honesty in government. It should pledg-e itself to provide the mechanism by which

these ends shall be vigorously, persistently, and permanently worked out.

THm FEDERAL RESERVE ACT

It is not enough merely to favor the lower cost of living, but the means of accomplishing this result must be pointed out and a program fixed, and to enable the people to live better than heretofore it fs necessary to have stability in credit and currency. Therefore, the Democratic Party should pledge itself to S? dire<;t th~ powers of the Federal reserve act as to prevent either inflation or deflation and to establish thereby in the greatest degree possible stability of prices.

TUE FEDERAL TRADE COMMISSION

The powers of the' Federal Trade Commission Rllould be expanded and an independent legal department established for that commission with a view to ending unfair practices in industry and commerce, with a view to preventing the abuses of monopoly, and above all with a view to increasing produrtion and preventing organized interference with production from whn tever source.

LXV--446

PRODUCTION

Only by production, organized production, profitable production can the wants of man be supplied, and whoever interferes with production is interfering with the welfare and happiness of society itself. It is interfering with production. when a monopoly obtains control over great necessaries of life or of any commod,ties used by men and extorts such a high percentage of profits that consumption is measurably prevented. Consu~ption, production, and employment are stimulated by fair prices.

The Sh~rman antitrust law has failed to control monopoly, and it will be better to permit men to combine under the requirement that their prices and profits shall not be excessive.

THE TARIFF

The Democratic Party has been greatly injured with niany voters by the unjust charge that it is a party of free trade that does not recognize in any degree the right of manufacturers to protection. The Democratic tariff for revenue only actually gives all the incidental protection needed based on the difference in the cost of production at home and abroad. As a mathematical fact, every Democratic tariff is higher than a tariff which Illeasures the difference in the cost of production at home and abrbad, and with the present Tariff Commission it is easy to ascertain the fact. No Democrat desires to promote an unfair, destructive competition for our own manufacturers, and to permit the Democratic Party to be subjected to the hostility of large groups of manufacturers on the theory that the Democratic Party is indifferent to their welfare and to their just rights is bad party policy and is unjust to the Democracy and tends to prevent the Democratic Party from having the sup-port of upright manufacturers. .

Imports measure exports, and exports measure imports. When tl).is truth is recognized, it will be clear that just to the extent which we prevent the importation of goods into the United States we prevent exportation and the production of goods for export and the employment of labor in the United States. The Democratic tariff schedules, drawn for revenue, as a matter of fact afford an incidental protection far greater than " the difference in the cost of production at home anll abroad," in times past praised by the Republicans as sufficient.

The Democratic platform on the tariff should be justly framed in some such terms, as follows:

We favor a tariff for revenue only, because the Constitution authorizes a t~riiT only for revenue ; but we declare that the Democratic tarilf schedules for revenue more than cover " the difference in the cost of production at home an<l abroad " and stimulate larger excha11ges of commollities and thereby expand American exports on fair competitive lines as well as raise the needed revenue.

The Republican monopoly-protecting tariff schedules obstruct imports, deprive other nations of the means with which to buy our exportR, and therefore obstruct American exports, American production, and the larger employment of American labor. Imports furnish the means to pay for exports, and any undue interference with imports is an interference with exports.

Tlle eyi.dence that the tariff for revenue more than equals " the difference in the cost of production at home and abroad " may be foun<l set forth in detail as to e\ery schedule in the CONGRESSIONAL RECORD of June 15, 1909, page 3288, for example--

Schedule A-Chemicals _________ -------_-------------------Schedule B-Eartheuware, etc ________________ -------- ____ _ Schedule C-Metals, freight operates as protection ________ _ Schedule D'--W ood, Creight operates as protection __ ~ _____ _ Schedule E-Sugar, etc __________ --------------------------Schedule F-Tobacco--------------------------------------Schedule I-Cotton manufactures ___ ----------------------Schedule K-Wool, and manufactures ____________________ _

Tariff rate

Per cent '1:1. f\2 49. 03 32. 44 15. 12 65. 03 87. 20 44. 84 52.83

Labor cost in per cent

of value of the

product

Per cent 7. 5

36. 7 20. 8 27.1 5. 6

18. 9 21. 4 20.0

The tariff rates and freight in every instance are more than the entire labor cost and it is the so-called cheap labor abroad that makes the difference in cost. If labor abroad cost Ilothing • America~ labor has nevertheless an incillentnl protection fro~ 100 t.o 4qo per cent of even the high cost of American labor in the product.

,.7072 CONGRESSIONAL· RECORD-SENAT]J. APIUL 24

TRANSPOltTA'flON

The Government of the United States . should bring about lower ;f1-eight and passenger rates by establishing a mechani~m that will result in the elimination of waste and ~tra.vagance in railway wanagement and financing. Even combinations and pools arei permiooihle~ in my opinion, if the economies mad~ are extended to the public in lower freight rates.

THE INTEIRSTATE COMMERCE COM:MI'SSION

1 ~ Interstate Commerce Commission, who pass on the ques-tion of railway rates, should be men who are progressive and who think in terms of the welfare of the whole people and not too much as the advocates .of the railways agafost the people. If the railway owners or managers are permitted by discreet campaigns to nominate the majority of the Interstate Commerce Commission, the public need expect no adequate relief.

OFFICIAL B~LLETIN

An official bulletin with fixed space for- authorized spokesmen o:f the several political parties and of the administration sbould be pllinted, edited, and solll to the public at cost and carriage, so thn.t every citizen who desires to be informed with regard to the Government's services. could be kept advised. At present the public- press, too largely influenced by their owners and by their advertising columns, by commercial, and private interests, mn be usetl to suppress, distorti, and mislead the public jndgment.

The public press, which is the greatest of all a~cies of pulr lieity., a great power for good and at times a great power for harm, should be required to be fair and just with public servants. and with public policies without interfering in any way with the complete freedom of the press. The press is entitled to be free. It is vital to .America· that the press shall remain free. u · is also vital to A.menica that the people shall remain fre.e from false propaganda and from a suppression or perver'sion af the truth. The Amenican people have great reason to be proud of the .American press and its· magnificent accomplishments. Its future is greater than its past.

TAXES

As a part of a program of prosperity the taxes should be lowered to the lowest degree which the strictest economy of govei:nment 11ermits, which would :fiow into new enterprises or expand existiug ent~rprises if not required to meet the Buuget. If we withdraw these profits for the purpose of paying the gigantic \var debts immediately, we interefere with our own prosperity, first, by cutting down available capital for a larger employment of men, and, second, we chill and measurably paralyze the enthusiasm· of ambitious men to ·make money out of' their enterprises. The place fo1• heavy taxes is through the ·progressive inheritance tax on unduly swollen fortunes, a poUcy which does not discourage the living and which. gives no pain to the dead.

WAR DEBTS

. We have· amortized for the British taxpayers over four billions of war d.ebts on a 60-year basis. We- should pursue the same poJ,icy with the American taxpayer and amortize our World War debts. over a like period of time, and iu. that way make it unnecessarl' to impose such gigantic taxes on the present generation..

l'LA.TFORM

The Democrats should resolutely avoid putting in their platform a multitude of small matters which are not of national importance, but leave such questions to be worked out by the representatives of the people . elected on broad, Democratic principles. By inserting a large .number of side issues in a national platform a great weakness ensues because a thing uesired by. a few strenuous advocates at a convention, to whom n resolution• committee may yield, may excite the opposition of ten times as man~ voters who. do. not app1·ove the specialty desired by some particular, small, energetic group.

The Democratic Party is a party of fundamental p:irin.ciples seeking social and industrial justice and prosperity f<>r all, for tl1e rich and for the poor, for the learned and for the unlearned, for. men of all races and. all creeds, who are entitled to life, lil>erty, and the pursuit of happiness.

.AU progressive men, whetl.1er of. Democratic affiliations or not, bel!e·rn in this doctrine. but the Democratic Party alonr:: }\as a sufficient number of leaders committed. to tbe doctrine

• to glve the assurance to th.e public that can be safely relied t'ipou. E'or prog:resl'llve policies the country is compelled t~ look to the Democratic Party, and that party should open wide its arms in welcome to all progressive men and cooperate with progressive men, whate'\'"er they may call themselves.

T.A:X RIDUC'lIIDN

·The Senate, as in Committee of the Whole, resumed the consideration of the bill (H. R. 6715) to reduce and equalize taxation, to provide revenue, and for other purposes.

Mr. JONES of New Mexico obtained the floor. Mr~ WALSH of Massachusetts. M1~. President, r suggest the

absence of a quorum. · The PRESIDENT pro tempore. The Secretary will call the

rolL · The roll was called, and the foliowing Senators answered to

their names: Adams Brookhart Bru<'e Burs um Cameron Capper ·caraway Copeland Cumml..Ds Curtis Dale Dial Edge F'erris

Fess Fletcher Gooding Hale Harrison Heflin Howell Johnson, Minn. Jones, N. Mex. J"ones, Wash. Kendrick King Ladd Lodge

McKellar McKinley MeNary Nee}y Norris Oddie Overman Owe Ill

K~~r:orn Ransdell Sheppard Sbipsteud Simmons

Smith Smoot Spencer Stanfield Stanley Sterling TrummPll Wadsworth Wafah., Mass. Walsh, Mont. Warren · Watson Willis

l\ir. HEFLIN. I desire to ;;mnounce that tile junior Senator from Georgia [Mr. GEORGE]. is, absent on business of the Senate.

The PRESIDENT pro tempo.re. Fifty-five Senators have answered to their names. There is a quorum present.

Mr. JONES of New Mexico. Mr. President, I desire to' make a few remarks in reference to the speech of the able Senator from Utah [MI.". SMOOT] in disc.ussing the revenue bill. I use the term "able " advisedly. The distinguished SenatQr from Utah has been able to swallow the Mellon plan, bait, hook, and sinker. No deviation has been made from the Mellon plan, about which we have heard· .so much for more than half n year. The very same arguments, which are now presented to the Senate by the majority of the Finance Committee, through its abie chairman, the Senator from Utah, have been presented to the country almost every week: by the publications o·f a g~at share of the metropolitan press, I am sure the cormtry is quite familiar wi'th the contents ot this bill, because I can assure the country that this bill contains only ·the r~cofnmendations which were made by the Secretary of the Treasury. .

::r call attention further to the fact that the only point w.bieh reaily brought out tlre fire and the enthusiasm of the disti.nguished' Senator from Utah is tbe- same point which has been dwelt upon with such vigor and such insistence- by the Secretary of the Treasury. The Senator from Utah did not in· any wise attempt to put his real force and power into the delivery of his prepared speech until he reached the point where he ins:isted that the high' sm·taxes should be cnt in half. Likewise the head of the Ti.·oosury, in every interview-, in every prepared statement, fn his testimony as a witness· Before the Finance Committee, has dwelt upon that point as the one panacea for all the ills whieh afflict this country.

That is the program. Perhaps it win avail nothing for me to- suggest thnt this program which is now presented to the Senate has been repudiated by the Honse of Rep1·esentatives~ by all of the Republicans of the House of Representatives. with the exception· of probably 4-0- or 50. Yet it is presented to, th.e Senate in this very elaborat.ely prepo:red. statement oi' the· Senator from Utah, and he waxes strong and eloquent when be undertakes to discuss the reduction ofi the high snrtaxes from 50 to 25 per cent.

Mr. President, the llilderlying view of the leaders of the Republican majority in the Senate and the unuerlying view of

.this administration, as suggested by the Secretary of the Treasury, .have been precisely the same from the time this administration came into powe1~ in 1021. Sbon. after the Congress met in 1921 the Finance Committee· of the Senate, controlled by the same majority which yet controls this body, undertook a revision of the revenne law: At that time the high surtaxes amounted t(} 65 per eent. We were just eme1-grng from the Great War. .At that time the 8ecretary o.f the Treas~ ury recommended that the high surtaxes be reduced by mo.re than 50 per cent.

Finally the House of Representatives, complying with that wish a.f the Secretary, reduced the surtaxes to 3~ per cent, <?r a little more than one-half. The- bill came over to the Senate, and the Finance Committee, tbrough its majority, repE>rte<rl to tlie Senate a reduction of those surtu~es from 65 to 32 per cent.

It is true the tlill then came into the Sen~te, and on the floor of the Stmate tl1e recommendationg, of the Treasm.·y Department were L-epudiated, and the Hemse of Representatlv.es subsequently receded from its action and adopted the view of the Senate and the maximum surtaxes were placed at 50 per

19:?4 · CONG-RESSIONAL RECORD-SENATE :7073 cent. Now we have the same story again. The Secretary of the 'l'reasury is demanding, and a majority of the Finance Ccmmlttee is demanding, that these high maximum surtaxes be reduced again by 50 per cent.

Not only that, l\Ir. President, but at that time there was an excess-profits tax upon corporations which, in the year of very great business depression in this country, netted to the Federal Treasury about $335,000,000. The normal or flat tax levied upon those corporations amounted to but little more in that time of depression. So, upon the recommendation of this same Secretary of the Treasury, the taxes upon corporations were reduced about 50 per cent.

Where\er we turn, we find the Treasury Department appealing for a reduction, on those best able to pay the taxes, of 50 per cent. It reminds me very much of what often occurs over in New York and other places where the large corporations transact their business. They accumulate their surplus in the corporation, and finally they cut a melon. They divi<le their undistributed profits in stock dividends, and it is called the "cutting of a melon;" but I seldom have heard of a case where they have cut a melon and distributed it in 50 per cent shares. But this Mellon seems to consider nothing but nO per cent when the corporations are to be dealt with, and when the indi\iduals of the country earning the highest rate of profit nre to be considered.

I will refer, I believe, to the argument of the Senator which he dwelt upon toward the latter part of his speech. He advances the well-known argument that these maximum surtaxes are unproductive, and that that is why the Treasury Department and the majority of the Finance Committee desire to have these maximum surtaxes reduced to this Yery great extent. Tlle Senator pointed out that the taxes paid by those having had the largest income were being reduced in Yery material amounts. There is no question about that, but tllere is a c1uestlon ns to why that is the case.

The distinguished Senator from Utah suggested that all the great incomes are going into tax-exempt securities. I have heard that time and again from the Secretary of tlle Treasury. It has been puhlished all over this country that that is true. It is stated by the Secretary of the Treasury, it is stated by the Senator from Utah, and then, after his mere statement, he very solemnly wants to know if we desire nny more evidence. I ask those who listened to the speech of the Senator whether he presented any evidence except his own statement of the facts that these large incomes were being invested 1n tax-exempt securities. Likewise, when the Sec-1·etnry of the Treasury was a witness before the Finance Committee, he contented himself with a bare statement of facts.

I have examined this question somewhat, and while ·I dislike to make any statement which may seem to be in contradictiou of such high authority as the Secretary of the Treasury and the distinguished Senator from Utah, y~t I can not believe that any o1fense will be taken wheu I undertake to use the records of the Treasury Department to demonstrate that the inferences drawn, both by the Secretary of the Treasury and the Senator from Utah, are unfounded.

l\Ir. President, we have no direct evidence except that which I shall present. There are no statistics from the Treasury Department upon this subject, which have been made public at least, except the statistics in connection with the returns of the decedent estates for taxation. In 1922 there were something over 12,000 returns of decedent estates. There was disclosed in those returns the various kinds of property in which the estates were invested. If there were tax-exempt securities, it \YD.S so stated; if the money \\US invested -in stocks, it was so stated; and so with respect to the entire number of estates, varying in amounts from very modest sums to more than $10,000,000. Upon an examination of those returns we find the very significant fact that taking all of those estates into consideration and into calculation they did not own enough taxexempt securities to pay the cost of funeral expenses and the cost of administration of the estates.

~Ir. Sll\fl\IONS. l\fr. President, may I interrupt the Senator? Mr. JONES of New l\Iexico. Certainly. l\Ir. SIMMONS. The gross returns, as I understand, show

that the estates returned were worth about $2,600,000,000? Mr. JONES of New Mexico. Tlle total estates for that year

were a little less than $3,000,000,000. t think I might just as well give the figures.

::\Ir. SThll\fONS. Was it not $2,600,000,000 in round numbers? Mr. JONES of New l\Iexico. It was $2,800,000,000 in round

numbers, as I recall. I find that I ha\e not the exact figures here. but .in round numuers that is what it was. Between $2,G00,000,000 and $3,000,000,000 was the gross amount of the

estates, and the total amount of tax-exempt securities held by those1 estates was not sufficient to pay the cost of administration and the funeral expenses of the decedents.

Mr. Sil\11\IONS. Does that appear in the report? Mr. JONES of New Mexico. That appears in the statistics

of income of the Internal Revenue Bureau for the year 1921. I made some excerpts and some calculations from the returns of estates of $1,000,000 and more. That table I · caused to be. published a few days ago, and it appears on page 7 of the minority report upon the pending bill. The table was prepared showing the amount of tax-exempt securities held by the various estates which amounted to $1,000,000 and more. I took them all. There were 111 estates making returns of from 1$1,000,000 to $1,500,000. There were 45 making returns of from $1,500,000 to $2,000,000. There were 10 estates making returns of $10,000,000 and over. Altogether there · were 251 ef!tates.

The average amount of tax-exempt securities held by all those estates in proportion to the gross estate was only 6.8 per cent. Now, those are the latest figures that have been furnished in any official way, and I should like to inquire how anyone with that evidence before him can say that the people of great means are taking all their estate out of productive enterprises and investing them in tax-exempt securities?

Mr. Sl\IOOT. Does the Senator want an answer to that question, or shall I answer it at some other time?

l\Ir. JONES of New Mexico. I do not care to be diverted from what I have to say.

Mr.I SMOOT. The Senator asked the question, and I did not want him to think that there is no an8wer to it.

Mr.! JONES of New Mexico. I am sure the Senator from Utah will find some answer. I never knew any question to arise in the Senate Chamber yet but what he had an answer which was perfectly satisfactory to himself.

Mr. SMOOT. Certainly; and I never made an answer that was satisfactory to the Senator from New Mexico.

Mr. JONES of New Mexico. But, Mr. President, these are the official statistics furnished to ns by the Treasury Department, showing that out of 251 estate reports which were filed in the Treasury Department in 1922, only 6.8 per cent were invested in tax-exempt securities. ~he other 93.2 per cent was invested in other properties, in other kinds of investments, in bm;in~ss Yentures of all kinds, and the greater part was invested in stocks and bonds of corporations doing a general business in the country.

Mr. President, the Senator from Utah went further and, by referring to the chart which he put upon the wall, showed the amount of revenue from the estates of $300,000 and above in 1916 as compared with 1921. He evidently feels that that is some evidence to support his contentions. It has no probative force as to why the reduction occurred. That it did occur there is no question, but simply because the Senator from Utah has heard and because he knows that there are tax-exempt securities, he assumes that the estates have gone into those and that that is the only cause for the reduction of receipts of reve· nue f1~m those having the higher incomes.

Of course, there is some inducement for investment in taxexcmpt . securities. There is no question about that. Likewise there ls no question that some money is being invested in taxexempt securities. But when the Senator from Utah says that it nll goes there, or that that is the chief cause for a reduction in the revenues derived from the high incomes, in my humble judgment I place my belief against his belief, and shall under· take to show that there are other inducements besides that.

As I said awhile ago, in the revenue bill of 1921 there was only one tax imposed upon corporations. That was a flat tax: of 12! per cent. The excess-profits taxes were repealed. The rate of surtax upon individual incomes was graduated upward until an individual with an income of about $32,000 per year under existing law would pay an average tax of 12! per cent, or equal to tllat of the corporation. Any individual having a net income in excess of $32,000 a year could, by the organization of a corporation and putting his private assets into the corporation, save to himself through the corporate entity revenue which would atherwise go into tile Treasury of the United States. So when we reach the maximum surtaxes of 30, 40, and 50 per cent there is a strong inducement to cause the people paying those high surtaxes to organize corporations and pay only an average tax of 12! per cent.

If I assert that that is the means which has been used for the purpose of decreasing the amount of revenue derived from the high surtaxes, I ask you if you are not as wllling to believe that statement coming from me as you are to believe ~he

.7074 CONGRESSION _l\:D RECORD-SEN ATE APRIL 24

statement coming from the Senator from Utah- that all the high surtaxes are being lost because of investment in tax-exempt securities?

The inducement ls there,. and 1t is a lawfn.1. inducement. There is n.o law aga..inst it. Why sh@uld n<>t the people with these maximum surtaxesi organize a corporation, transfer their whole individual ass;ets t& it, and withdraw as dividends Dnly mon~y enough to pay their family lli.viiog expenses?

That they are <Wing this is, I think, evidenced by some othe? facts which have just recently come from the Treas.u:ry De· partment. In January of this year I called U}&On tbe Treasury Department, through a resolution which was aoopted by th& Senate, for some information as to the amount of the undistl'ibuted divi<lelild·s ot eorpovartons1 and the- neturn which eame in furnishes very substantial food f-0r earnest oonsiderati<.m by every taxpayer of the country. I asked the Treasury Department to give to the Senate not only the amount of those undfstributed dividends, but the pe1·centage retained by the corporations, respectively, and those which declared n<> dividends at all. I find this remarkable situation: For the taxable year 1922, returns for which were filed last year, the latest returns on, the suhject at that time,· I .find that the total number of corporations m~tking complete returns of any net income subject to ta:x;ati-0n was only 78,923 ~ there were 29,688 making partial returns for the year, simply stating the amount of the income and the proportion of it retained ;. making. all tol~ 108,611 corporations making a return of net income. Those were aLL there were that ~aid any tax upon net income. Out of that number y.re find that there \Vere 30,048 whicb distributed DO dividends whatever. They h~d a net income of almost a. billi.ondol.tars~G,254,485-but they had declal'ed nq dividend& whatever11 &nd that in spite of the fad that tbey had previou..sly accu.µ;i,ulated an wdivided

. sru·nIQ.S of nearly $4,.000,000,000-$3.954,000,0.0Q. Of the other corJ?orations, ili,?se dlviding less. than 10 per cent were in number 1,867, with a n,et taxable mcome of $247,000,000.. They pnid out in cash dividends only a little more than $14,000,00<k

So, Mr. President, the iaame r5ituation , appears throughout. Some Of them did pay ~t WYid~~s. ~ some ,ef 1them paid more than 90 per cent of thell' net e~nmgil in divioon.as. SoJDe of tlle old corporations wh1c11i were just e~g~g fr.om the peiri.od. of ~epression ?f 1920. and 1921, in ar~er to keep up their regu.lar dividends, paid .out more tha.u. 90 per cent~ but the other corporatloni-thirty-odd thousand of 1 t;¥m-which pa.id out ~ither no cash dividends or but an infiniitesimal a.mount are tb,e concerns which have been o.rganiied and a.re conducted for the purpose of hiding the Incorue of ind1vidua~ and enabling tp.em. to avoid the J,?ayrnent of tbeir jus~ taxea to the Feder"l GQvernmetrt. 1 say ' hiding,"' hut r do' n,ot mean that in, an offensive 5errse:. becuu~e, 'it ls. ?a:w'tul . tor :them tQ ao ~at; they nave simplf been complyi'n~ -w~th the. law Q~ the ian!l, availing themselves of it'; bttt,- notW1.(h~tanciing. t!le <;>:Wra.tio~ J:i.as t)1e effect ot reducing tlie trlcome of those indiV;iduu.Is, formerif ):tavflig hi'gh incomes, to . the b'um~ft state« b;y qi~ s~n~tor fl•om ·u~b We know tha~ ... this t'tiihg t~ 'being ~ne; ·we kno~ that .the legal inducement e..'t.ists. . Ri;i.ve we not a :i;ight t0 a.ssume, th~refore, thnt that is "wtte1·e ' the 11,igli incqmes are goin,g ;md 'not illtp ta:x:exempt securitie3, as tn~st:eµ by the Seni:uim· from tJtah?

Moreover, Mr. Pre$i(l'e.nJ; ne'itheH the Fina.nee Committee in its- report to the $i;lllate, , ~or the. chrurll1an of the committee, who has just spok~n .th,is &~ternoon, has ~aoo any suggesti9:p that this situat!qn oe' .~ed.' I ' •

Mr. Sll\flUONS. btd not the majority r~:port against any clJ.ange?

lUr . .lO'NES of New l\Ierlco. The Senator from North da\·olinn is tight. I put the motiou to the majority of the F1nance Committee mysel.f that tl1Cl·e be put upon these corporations in some fashion a gra.duated tax, and the majority of the committee, heuded by the Senator from Utah an-Gt assisted by every other Republican member of tile committee then present, voted against my motion.

Mr. Sl'MMONS. Mr . .Presid~nt, may I ask the Senator from New Mexico a question?

Mr. .fONFJS Of New l\'Iexico. I yield to the Sena.tor fr.om North Carolina.

Mr. SIMMONS. Did the Secretary of the Treasury :make any Sll·ggestions to subject to taxation the $4,000,000,000 which the Senator hns stated has in this way escn.ped the surtaxes, the taxes whicfl he wishes to cut fo two?

Mr. JONES of New l\fexico. I\Ir. Presrnent, not the slightest intimation has come from me Secretary of the Treasury or f:rom any other responsible Republican source that tli.e present law us a-.!Tecting these c01·porations should be changed.

The present tnx upon corporations is not only an inducement for the organization of corporations in order to avoid the high surtaxes but it is one of the most unfair' taxes that can possibry be imagined. There is under present law a capital-stock tax, .which was discussed somewhat by the Senator from ,Utah and

which hs.s now been eUmiio.nted, and the committee llave increased the on~ fiat tax upon corporations from 121 per cent to 1-4 per C?ent.

The enormity of the situation is made apparent when we consider the equity of the stockholders of the various corporatiQns. Under the bill as recommended by the Senator from Utah an illdividu.aJ. in order to pay an av~"'e tax: of 14 per cent mmt have an iincome, as I recall, of S1Jbout $57,000 a year. By referring to the figures l find that my recollectiolll was about right, :1!~ OB an i.ru:!ome of $60,000 the total taxes would amount to n.n average of 14.94 per cent. .As applied to the vust number of corporations in this country that means this : For instance, in the case 0! the railroads o:fl the eount:iry whose rates of fare and ine0me aue regulated/ by law,. and the number f whose shareholders is enormous, each. one of those individual stock· h0lde11s, whether his income be $5,000 ox $10,000, tlu·ough this tax upon co:irporations is paying the same nate of tax as tbe indi'~idual with an income of $57,000. These corporations bel<IDg to their sharehoklers, and. &D.Y unjust ta.x upon the corpo-1·ati-0ns is an unjust tax upoa the shareholders. T.lJte ;railroads of the country in the main are owned· '!Dy people of small incomes. There are thousands and thousands of widows and orphans whose sole source of living is deri'ved from the· diividends upoD. the stock of such corporations, and every one @if them under this bill as reported to the Senate by too Finance· Committee will be paying a tax to the Government at the same rate as an fudividua.I with an income of $57,000 a year.,

I should like to know whether. this multitude of small taxpayers throughout the country are going tG be satisfied with

1 this bill ~ I should like to kn-0w whether they ave going. to feel that th.at kind of a tax is a ~urden upon them ; and l shouJ.d' ljke to know whether the peopl~ geneJTally in this country are going. to feel that that great relief frQm taxa.ti.on which has be'en promised them is going to be brought aboat through thi-s

1 kind of a tax. . Mr. President, there are many other c<:>rporations which are

! earning large incomes. The theo.ry of a graduated tax: upo.:m. , individual incomes has been accepted by everybqdy; there Js. , no suggestion from any source that ther~ should be a flat tax 1 upon individ·uaI incomes. It is based upon that, great prin-ciple of: taxation that the o~ who is be~t able to pay sboulcl pay more, at a higher rate, than the one who is less able to

1 pay; but . when . it come~ to the corpoi:atlonst-in ord~r. as I firmly believe, to shield the people of great.. wealth and of great incomes from paying their just taxation to the Gove-rnment-Republican ~eaden bring, 1,n a ~ill. which wiH enable· them to reduce their ta~s and which raises the mi upon the

, small. shareho~ders, 'of less ' ability to ,par . . I l\i'r. s'.IM'.1\!0NS. Mr. President, w.m tbe SeR-ator pa+don an interruption~ '

Mr. JONES of New Mexico. I yield. lUr. SIMMONS, Car~ying out µte Senator's argument with.

refel,'ence to' tax pn,id by those wno O'fn. Stock ;..n. the railroad~.i if a ~l,'~a.t corporation earning, we will say, two 011 three million q9llars does Q.ot distribute that or distributes only a smart percentage of it, so as not to com~ within the surtax:r thei;i. piat corpor~tion would pay a tax; of only ;I2! pe,r eeut.

Mr. JONES of New Mexico. Tb.at is true. und.'e:c the present law.

, Mr, SP\fl\'IONS. Yes; up.der the present law that [email protected] would only pay the same rate of tax that an. in.dividu.a.l

1 earniog $57,000 would pay. In other words, with. an iu<:ome -0f

I three or four millions of dellnrs or three or four hundred millions of dollars undistributed ~Y wouM pay the same rate of tax that an Individual earning $57,000 w<imld pay. ls not that true?

l\I.r. JONES of New Mexico. The Sell1ilfa:ir is quite accurate. There are many phases of these questions that I should like to dwell upon., bu.t I intend only briefly this evening to refer to them; but they will be disclJl.ssed at mw:!h greater length before. this bill is passed.

I may call attention to another iniquity growing out of the situation.

Take a corporation where a few people own the <?ontrol, al.thou~ pei:haps half or mm·e of the stock may be <listributed generally tluiolil·ghout the coUJjltr.y,, and those few who control Glo not wa.nt to distribute dividends so as to inerease their inclividunl surtaxes;. They will see to i.t that the coarporationi declares no divi<.lends, thus using the corporation for their own benefit, ancl depriving the widows and orphans and those with small incomes. of receiving any revenue. from such cor})orations.

l\Ir. SIMMONS. Mr. President, if the Senator will pardon. me-

The PRESIDENT pro tempore. Does the Senator from New Mexico further yield to the Senator from North Carolina?

Mr. JONES .of New Mexico. I yield .

1924 CONGRESSIONAL RECORD~ENATE. 7075 Mr. SIMMONS. I have not the figures before me, but I

have seen the statement somewhere that in 1023, I think~ · bur corporations earned the largest income in the history of the country, estimated, I think, at about $8,000,000,000. Those earnings were made under the present law. Does not the fact that these enormous earnings were made last year by corporations under the present law rather strengthen the position of the Senator, taken a little while agor that corporations are now being availed of as the ehiet and most effective method of avoiding the surtaxes?

Mr. JONES of New Mexico. 1\Jr. President, I make this comparison : 'l'he calendar year 1921, tbe yea:r with which the Senato1' from Utah was making comparison with 1916, was a period of depression in this country, and the total net Income of corporations reporting to the Federal Treasury was something over $4,000,000,o'OO only. The net Income for the calendar year 1922, according to these ftgureSy which are reported to. me by the Treasury Department, amonnted to $6,578,000,-000 i and only a few days ago the actuary of the Treasury Department told me that for the last year, 1923, these incomes would amount to more than $8,500,000,000, if not as much as $9,000,000,000.

Mr. SIMMONS. Is not that the strongest evidence that coul<l be prodnced that tb0 Senator's contention. is corred thnt the corporation method ls being resorted to for the pm-pose of escaping surtax, and that the lettkage that is being spoken of here is not on account of investment in tax-exempt securities but is on account of :resorting to the organization of corporations for the purpose of escaping surtaxes?

Mr. JONES of New Mexico. The conclusion which the Senator bag just reached is inevitable, and is !ortifted by the further fact that the dividends upon these stocks have not increased in anytbiug like the proportion that their increased earnings would justify.

l:Ur. SIMMONS. Mr. Pre&1dent, let me make this further statement: The Secretary says that a surtax of 40 per cent will destroy business in this country, wm withdraw money fron:t productive investment, and he gi-ves that as the reason why the rates shoulu be reduced. Here we have tbe fact that with a surtax rste 10 per cent higher thnn is now proposed the corporations of this country In the Inst year in~ creased their incomes over 19'21 nearly $4,000,000,000. The prosperity of corporations was not affected by that high rate; but the amount of earnings of the corporations indicate not only prosperity, but it indicates what the Senator 11ayg,-tha.t people have been investing their money in corporations unduly, and in rapidly increased ratio, and that there must be some reason for this situation; and the reason cnn not be more accurately assigned, in my (){)inion, than the Senator has assigned it this afternoon when he says that tt is the result <:1f

a wholesale eft'ort to escape taxation. Mr. JONES of New :Mexico. l\Ir. Pre~ldent, not only that,

but if we look at the actiVity in business geneYally, except the farming business, we see upon every hand evidence of unni-"Wll activity. The coon-try during the last two or three years has invested in new bnild!ngs, dwellings, business houses, and factories twice as mueh as ever in any preTious period of equal length fn the history of this country. Not only tba~ but we have been loaning money even . to foreign countries by tbe hundreds of mllllons CJ! dollars, showing that there are cer· tainly adequate funds to finance not only the enterprises in this· country but those abroad, for we now have investments abroad of over $19,000,.000,000.

l\1r. KENDRICK. :ur. President--The PRESIDENT pro tempore. Does the Senator from New

Mexico yield to the Senator from Wyoming? Mr. JONES of New Mexico. I yield to the Senator from

:Wyoming. Mr. KENDRICK. I wonder if the Senator. in connection

with bis argument that corporations are organized tor the purpose of avoiding taxes, has any :figures to show that an increased number of such corporations are being organized?

1\ir. JONES of New Mexico. Mr. Presiden4 I am sorry to say that there is no definite answer to the inquiry or the Senator f1·om Wyoming except the fact that we know that the number of corporations is vastly inereasing all the time ; but we have no statistics of these corporations, the purposes for which they are organized, and so forth.

l\Ir. KENDRICK. It would be difficult, no doubt, to assume thnt they were organized for any particular purpose; but it occurred to me that an increase over the normal number of SUC'l.l corporations organized would tell · tile story to a large extent.

Mr. JONES of New Mexico. l\fr. Presi<.len4 that · would hardly be an index to the situation, because for the last '\'ear tQr_ which .:w~ have statistics ,th~re were only 2,532 indiVidnals

in this eountxy who had incomes above $100,000, so 2,000 corporations more <>-c less would make very little difference in the number of corporations.

Mr. KJNG. Mr. President, will the Senator yield? Mr. JONES o! New Mexico. I yield llr. ~NG. In considering the earnings or profits of tile

corporations and amplifying the statement made by the Senator from North Carolina [Mr. SIMMONS],. it ls worthy of note thnt the amounts allowed for obsolescence, for depletion, for depreciatio~ and cognate matters. are exceedingly large. I shall be glad to put into the RF£01m to-morrow a table sbow4

ing the vast deductions which have been allowed corporations by reasoo,i of · the facts juet mentioned, ns a result of whicl1 they have escaped paying legitimate ta:1ntion to the extent of million&-'indeed, tens oi millions, if not hundreds of millions of dollars.

:Mr. JO'NES of New Mexico. I have not any moral doubt but that the .statement just made by the junlor Senator from Utah is correct; but I am undertaking in this brief review te> den1 only with tbe quesitlons '~h\eh wel'e dwelt upon by fue senior Senator from Utah [Mr. SMOOT]. I hope not to detain the Senate- 1n-0re than. a :few minutes longer, but thel,'e is one question l wbieh .I can not leave without some comment.

Tlle SQilior Senator from Utah gave to us the statistics regarding taxatlon generally in this country. He told us how little money the people of .small means were paying in.to the Treasury of the United Sta.tes. He argued as strongly UA he coulu that these small Uu:pnyers should pay more, and that these wealthy taxpayers, there.fore, should pay less.

It was. :somewhat unto:rtunate for h,is ru·gument that be made a statement as to the total taxes paiµ in the S'tntes, counties, and locail isubilivislons, as welt as the Federal Government. HLs geDefal round of figp:res was just about right. For the year me'tioned· by him ~ total umount of revenue derived by the i'~de1·a,1 Government from all taxe~ was something over $3,000,000,000, while the State, county, and local taxes were about fom· and a half billions of dollars. He undertook to some extent to analyze that, and then he drew the deduction that th~ small ~ayers were not va.ying a sufficient share to the 1i'~l1eral Government.

I must i·emind you tbat of all the taxes paid to the States, counties, and municipalities 78.8 per cent of them are derived · from wllat is know~ as the general property tax. I further remind you that the genera1 property tax, which has existed in this countr:r since its foundation, is absolutely and actnnITy breaking down, and is not bringing revenue from the sources intended by those who first inaugurated that system in this country. I ask each one of you to recall how mueh of that 78.S pe1· cent o! gem:ral vroperty tax is a tax on personal property, and how much is levied upon the individual nnd invisible weaith of thE1 country.

I need only refer to the eA-perience in the State of New Yoo:kp wqere there is a general property tax. In 1866 o\ero. 25 per c~n.t of the revenue derived from the general property · tnx cam~ from personal property. It bas been gradually decreasing, until in the last rea.r it had dwindled to 1.6 per cent.

It is common knowledge tbat the invisible wealth of the country is not paying revenue to tbe State.s and munidpalitles under the general property tax. Moreover, we know that in the payment of qie general property tax tbe pe'ople whO' have the smallest amount of real property are paying a greater ratio of tax than the indivic?uals w'fth · fa.rger amounts of real property. That is a matter of common knowledge. I venture to assert that the milllon-dollar home In thfs city is not taxed at anything like the rate, bnsed on actual-value Talmition, charged on the humble home which costs only five or ten thousand dollars. That is a matter of cmnmon knowledge.

1\1oreover, there are other taxes C1f the Sttltes and counties. There a1·e the license taxes, and those and the other taxes a~ all distri~uted in the prices of the goods. So it may be said, referring to State, county, and munieipa1 taxes, which amount to more than the Federal tuxes, invisible- wealtb, the wenlth of those who have the greatest ability to pay, is practically escaPlng anything approaching its jlt!rt: share of the burdens of taxation tn the States and subdivisions of the States.

Moreover, when we come to annlyze this Federal tax, t.hi!f $3,000,000",000 and more of the l+'edernl Government tax, the whole amount derived from income taxes and corporation tax~ is only about one-half. Of the other half, more than balf a billion of it comes from the tariff ta'X'. No account has been taken by the Senator from Utah of the burden <Yl that tariff tnx-. It fs generally conceded by all statisticians whO' bave studied the subject that th:rougfr the means of that tarltY wall domestio

. industry" ~as increased its prices to sueh an extent as to- put: upon the eonsum.ers of this country an additional l>'Orden Q't

7076 CONGRESSIONAL RECORD-SEN ATE APR.IL 2-t

three and a half billion dollars. That is a co·nsumption tax, borne by those who must pay in order to shelter themselves and clothe their bodies and satisfy the absolute necessities of life.

So, with all the other taxes imposed by the Federal Government, except the income tax and the tax on corporations, ln the last analysis, almost without exception, they are taxes which are ultimately borne by the consumers of the country, taxes upon the necessities of the citizenship of the country, and only the income taxes and the net-profits taxes are borne by those who have known ability to pay.

Not only that, but the common people bear even a share of the taxes on corporations. The farmers of this country do not realize how their freights are raised by reason of the taxes upon the railroads of the country. Under the Esch-Cummins law the Interstate Commerce Com.mission is directed to impose rates which shall produce a fixed amount of income to the shareholders. · That makes the net-profits tax upon railroads a fixed charge, a charge which enters into .the cost of the service the_ same as any overhead or fixed charge or taxation paid to the States or any other subdivision of the country, and the freight rates must be advanced in order to enable the railroad company to pay to its stockholders the amount of dividend8 required by the present railroad law.

The result is that those railroads are paying taxes at a rate of 12! per cent upon ev.ery dollar of net income which they received under the present law, and if this bill is passed those same railroads will be paying 14 cents out of every dollar RS taxes to the Federal Government, more than one-eighth of all the net income of the railroa<ls of the country. Who is paying that? The farmers; the people who must use the railroads ; arnJ not a suggestion is made from· that great official over in the Treasury Department, not a hint comes from the majority of the Finance Committee, which evidently is able and willing to swallow the Mellon plan-bait, hook, and sinker all at the same time.

Yet, l\lr. President, under these circumstances the distinguished chairman of the Finance Committee says that the people of small incomes nre not paying enough. He is pleading for those with incomes above $100,000. There are only 2,532 of them, but they are rich bt>yond the dreams of any honest son of toil who ever looked forward with an ambitious eye to the accumulation of wealth in the future, and he comes here and pleads for them who have profited out of this other great class of small taxpayers.

A.s I said in the beginning, the things contended for in this bill are typical of the contentions of the principal leaders of the great Ilepublican Party. They come to us upon the suggestion of the Secretary of the Treasury, and then the President of the United States puts upon it specifically his stamp of approval. The House of Ilepresentatives, the Members of which must go before their constituencies this fall, repudiates it. !rhere were only a few even of the Republicans who were willing to accept it as a basis of Federal taxation. But when it comes over to this Chamber, where only one-third of the Members go before their constituents next fall, we find the Senator from Utah, this great Gibraltar, standing in full height and full strength, advocating just exactly what the reactionary lenders of the Republican Party want.

I wonder if the people of this country can be given to understand between now and November just what this iniquity does mean, just what these Ilepublican leaders stand for, backed up by the present President of the United States. I ask the Senate to consider an.d think well of -these things before this bill is ever enacted into law. But I predict that it will not be enacted. I can not conceive that there is a majority in this body so har,lened in soul, so inconsiderate of those less able to support the burdens of the Government, that they will vote to enact it into law.

Mr. President, I have studied this bill. In 1917, when we entered the Great War, we spent the summer days preparing a revenue bill to pay the expenses of that great emergency. An income tax law, imposing an income tax both on corporations and indviduals, was comparatively unknown. -we did the best we could. We did manage to raise the money t6 carry on the Great War. From the beginning of that war to the end the patriotic people of this country put into that struggle about $40,000,000,000.

August 31, 1919, the total indebtedness of this country was only something more than $26,000,000,000. We have been paying it off until now the indebtedness is only a little more than $21,000,000,000. In the last five years we have reduced the indebtedness, in round numbers, $5,000,000,000, two and a half billion of it under the. previous administration and two and a half billion under the present Republican administration. We

have been calling upon the people of this country to do too much, in my opinion.

The time has come when we ought to reduce taxation. In this period of re('()nstruction following the war the burdens of government should be made as light as possible upon all the taxpayers of the country. The Senator from Utah undertakes to say that we have not been reducing this debt too fast. If he believes that, why does he propose a reduction now? Of course he does not believe it. But I say ·that we are putting too much of a burden upon the people of this country for the purpose of reducing taxation.

The last calendar year the indebtedness of this country was reduced by more than $1,078,000,000, according to the figures which I received from the Treasury a few days ago. In the fiscal year 1922 the indebtedness of this country was reduced by more than $1,025,000,000; Why was not this question of tax reduction entered upon sooner?

I submit that during these adverse days of reconstruction we have been putting too heavy a burden upon the taxpayers. I submit that instead of reducing taxation by $300,000,000, we ought to reduce it by twice that amount. We can do that and still pay off not less than $300,000,000 a year of the permanent debt.

Mr. President, as I said, these questions are of supreme importance. During the consideration of the bill they will be discussed at much greater length.

Mr. SIMMONS. Mr. President--Mr. JONES of New :Mexico. I yield to the Senator from

North Carolina. Mr. SIMMONS. Is it not a fact that the surplus for the

fiscal year before the last was as great as in · the last fiscal year?

Mr. JONEJS of New Mexico. The actual figures are known, but when we use the word " surplus" it can only be definitely understood in connection with the retirement of the debt of the country, because all of the cash received by the Treasury Depat·trnent is put into the general fund except that which is required specifically for a sinking fund, and whenever there happens to be more money in the Treasury than is required to pay current expenses it is ·automatically applied to the reduction of what is called the floating debt through the failure to issue as many certificateR of indehteclness as were previously outstanding. . According to the broad statement, without reference to the amount of reduction in debt, the Secretary of the Treasury estimates the surplus at about $325,000,000 for last year.

Mr. SIMMONS. That was at the end of the year 1922? Mr. JONES of New Mexico. At the end of the fiscal year

1922, my recollection is, it was about $309,000,000, and for the fiscal year 1923 about $329,000,000.

Mr. SIMl\IONS. The Secretary of the Treasury did not make any recommendation, when he bad a surplus at the end of 1922, that we reduce the taxes, I believe. I do not remember hearing of any such suggestion.

Mr. JONES of New Mexico. I am sure the Senator is right about that. There was no message which came to Congress regarding it. There were no statements in the press of the country of which I have any information. I think that late last summer was the first time there was any intimation given out from the administration that the time had come when taxes should be reduced.

Mr. SIMMONS. Although the surplus in January, 1924, was very little if any greater than it was in 1923.

Mr. JONES of New Mexico. The Senator is correct, as I recollect the figures.

Mr. SIMMONS. The Secretary in 1923 saw fit to use the surplus to pay off the debt.

Mr. JONES of New Mexico. That is quite right. Mr. SIMMONS. But this year he did not see fit to do that,

but suggested a reduction of taxation. Does tbe Senator know of any reason why the Secretary of the Treasury should have delayed the suggestion?

Mr. JONES of New Mexico. I seldom indulge in any political prognostications in this body. I have done that to a greater extent this afternoon than at any pr~vious time since I have been in the Senate. But it must be apparent to the most casual observer that there was a very definite determination and purpose in suggesting this thing in the su.mmer of 1923. That arises from more than one consideration; The greatest propaganda ever h'llown in the history of the country was put behind the suggestion when it first came from the Secretary of the Treasury, not only that there should be a tax reduction, but the propaganda prophesied and promised that there should be a reduction which would benefit every man, woman, and child in the land.

I .

11924 . OONGRESSION AIJ .RECORD-HOUSE 7077 H there ever wall a dinct a:ppeal thr.oug.11 oftldn.l aetion

for votes, it began last summer at the instance of the Secre-tary of the Treasury.

.Yr. President, I really wish I m~ht have more time to call up for -consideration .other pb:aees of these qnellti.oms. I will my a word, however, regarding the 11uestto.a of surplus wMch ·was estimated by the Treasur11 Department. I have lost all faith in the Treasury .ei;ti.mnt-es. When l look b&!k over the ltlstory of tbe adjusted .compensation bill-the bon.us bill-I find that whenever there was even a thought that legislation {;)f that kind might be enacted there ea.me from the Treasm.-y Department the most peSBimistie howl that ever came from a 11.'esponsible fiOUI!ee. Some esti.Jnates were made val:ylng mol'e than .$1,100,000,000, va.cying from a surplus -0f over $300,000,000 to a deficit of over $822,000,()0Q. Every time llie President .of the United States, too Seeretary of the Treasury, or the Director of the Budget sou.gla.t t.o make e. speeeh the1·e w.a..s a new estimate nll1:de, .a new result, and it is ineontesUbly true that every time such a speech was to be made for a s~e purpose .estimates from tbe Treasury Department conformed to the purpose which the advocate was attempting w substantiate. I have hear-0 it said by an official of the Government in auther.ity that the figures bad been juggled. The mere figures themselves, the occasions when they were used, the purpose kept in mind, shows that they were made to fit the case.

Mr. SIMMONS. 1\1.r. Pl'esident, will the Sena.tor yield? J\Ir. JONES of New Mexico. I yield. Mr. SIMMONS. Is it not a fact that in the late spring or

summer when a drive was being made against the 'bonus proposition that we had an estimate of $800,000,()()() deficit, and 1ate in tbe fall of the same year when we were to have a drh·e in favor of the Mellon plan that deficit had been converted into a snrpd.ui -of $300,000,000, '8.oeordi.ng to the estimates? Mr~ .TONES ot. New Mexico. Yes; and I make this state

ment also-: Whenever anybody wanted to speak about Republiean econ:omy we would always fiud ·a very favorable repo,rt fr()Ul the Trea."3UfY Department svpporting the argument. But I can not dil!ICUS8 tbis matter 1onger this afternoon. It is now late. We will have 11 fuU epportunity to discuss it in a 11 its phases before the bill is passed, and I now yield the fioo1·.

lfr. NORIUS. l!r. President, I send to the desk an amendment I intend to propose to the pending bill, and which I ask may be printed and lie on the table.

The PRESIDENT pro tempore. The amendment will be printed and lie on the table..

1\Ir. SMOOT. l\ir. President, it is too late this evening even to call attention to some of the statements made by the Senatox from New Mexico in relation to what I have st.ated. I shall do so at a later time. I .also wish at a later time to give a full explanation of the estimates referred to by the Senator.

It is so late that we bad better not begin to read the bill to-night for action on the amendments of the eommittee.

I move that the Senf.l.te take a reeess until 11 o'clock tomorrow:.

The m0Uon wae agreed to; and the Senate (at 5 o'eloek and 15 minutes p. m.) took a recess until to-morrow, Friday, April 25, 1924, at 11 o'clock a. m.

• HOUSE OF REPRE8ENTATIVES

THURSDAY, April 934, lfn4 The Howie met at 12 o'dGCk: noon.. The Rev. Jason Noble Pierce, D. D., dered the foll<n.ving

prayer: We thank Thee, our Fa tber., for ,all Thy gift:s to us, for life.

liberty, the pursuit of happiness, and for that which .ensbles each one of us to wake life w.orth llvjng, service for .other.a · and at this day we ru:ik Thy presence ln every part of that service. Bless our country . and all in place o! leaders'hip and all peop~s of the world. l\iay 'Thy klngdo~ come and joy prevan. Anci unto Thee shall be our than~vlng and praise always. Amen.

The .Journal of the pr.oceedings of yesterday was read .and approt·ed.

.ARLIN<G:t'ON XEKOBU.L .BaIDG:& l.B. DOC. NO. ~-~

The .sPEAKER. 'T~ Ollatr TefJers tBe merftlBge ~f the Pn!B-1dent on the Arlington Memorial ~ to the Committee ~ P.uWlc lluil.dings and .Growids, a'1d orders it l)J."ililJle~

CO~J!:IJEBATE VETERANS' ANNUAL REUNION

Mr. ~!SHER. MrA Speaker. I .ask unanimous consent to take ~~m the Speaker's table House Joint Resolution 1~ authonzmg the Secretary -0f War to loan certain tents, cots, chairs, 8.lld so forth, to the executive committee of the UJl.ited C~ed,ra.te Veterans for ~ at the thirty-fe>urtb annual relllllon to be held at l1emphis, Tenn., in June; 1924, with a Se~ate Lamendment thereto, and agree to the Senate amen-dment.· This resolution was passed unanimously by the House.

The SPEAKER. The gentleman from Tennessee asks unanhoous consent to take from the Speaker's table House Joint Resolution 163, with a Senate amendment thereto and eonsider the eame at this time. Is there objection? '

There was no objection. The Cleltlr reported tlhe Senate -amendment. The SPEAKER. The question is on agreeing t-0 the Senate

nmendrµent. .The Senate amendment was agreed to.

AGRWULTUJUL APPRO.PRIA\l.'ION BILL

Mr. MAGEE of New York. l\.fr. Speaker, I move that the House resolve itself into the Committee of the Whole House on the state of the Union for the further consideraUon of tbe bill (H. R. 7220) making appropriations for tbe Department ot Agrtculture for the fl.seal year ending Jnne 30, 1925, and for other pµrposes.

The motion was agreed to. Accordingly the House reJ5olved itself into the Committee of

the Whole House on the state of the Union for the furthe~ oonsiderati-0n i0f the agricultural a._ppro.priati-0n bill, with Mr. Canm .. BLOM !in, the ehnir. • · ·

The Clerk reported the title of the bill. The CHAIRMAN. When the committee rose on Tuesday la.st,

the last occasion when this bill was under consideration a point of order was pending, made by the gentleman from T~nnessee [Mir. B"RNs] to the -paragraph beginning with line 20 on page 57, under the heading "Compleoon o-f wool work." '

Mr. GR.A.Hill of Illi.oois. Mr. Chairman, when the eommittee rose I bad not etltirely tinisbed whwt I had intended t-o say upoo the point ()f or<ier. Smoo that time I have bad occasion to look inti> the autboriti~ eomewhat and have become more confirmed than .ever tlla.t the point .ef order is not well taken. TllQ gentlem ... n from T.enneMee [M.r. BYRNS] stat.e<l, close to the end

1

of the argument that was had .on Tuesday, the specific grounds . fo.r objeetion in thi11 way: He contended that the :acte ·under the original Exeeutive oNlet"S were illegal and that the taking over of this wool clip and the distribution of the proceeds among the woolgrowers, as I understand his contention, were illegal. Therefore, ~e contended, there was no authority of law for this. I do notl believe tbe gentleman from Tennessee iis correct in that ' assertion. 1 do not want to burden the Chair unduly with thh1 ; . matter, ~ut I 'do want to go into it far enough so tbat I may 1

giive the Chair my idea about it. 1

The CHAIRMAN. The Chair ~·ould 'be very glad to llave au 1

exposition of the 'law on the subject. !.~r. GRAHAM: -Of Illinois. I imagine so, because in my ex

perience here of some years this is about us close a point as I have ever noted. It is extremely close to the line but I think the courts have settled it for us. I assume that the gentleman from Tennessee is famillar with a c,ase which was decided in the .sontpern district oi Ohio and with .another case whlch was decided in tbe district of l\!assacbuse.tts. In one of those casestlle Massachusetts case---the court held that such acts as are cont.emplated in this particular language were illegal, namely that' the distribution of the profits of the :wool clip to the wool: growers was an illegal act. Afterwards, however, I think the courts changed that ruling, e.nd that ease wns de{}arted from in subsequ~ _r1;1Ungs .ot. oourts ·Of equal jurisdicti@n .aad authority, and they a.te wstamed, it seeins to me, by <!Hes ill the Supreme Court ~ which I sball ea.ill the Chair'M atmntio.11..

I first refer to a case fOUDd in 28'1 F.ader:al .Repo1·ter the case of pnited States v. Gordin, .and I call attention briefly to parts or it. Thts case had to do with this particular statut-e the very language which is here inv.olved, and bad to do W'.itl~ the proceedings of the wool d1v1sion of th.e War Industries Board. The court says this :

Under the act of June 3, 1916, there was established n Council of National Defense, with authority to eonstitut.e sUb<n'dinate 1lge!ldes and beu-de. b.ne <0f the "lroards ierea~d by Tirl'Ue t0f aueh -authority was the War bdU9Uietl Boara. It w.u advisory ito the ColPlcil of Natiomd Defeaee, 'aDd evetually Mea:me • penoaat apnq or dte Pftlddent, from whom it obtained, subsef'DllDU:7 •. Ia.iwe pewen. In 01& 1t becaae .a.Pl¥lDent to tae W.ar .alld Na.VJ' Departments ud. .oti.en J.uuae-

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