funds. On behalf of the Commission, however, our view is that we ought to go forward with the $17 million. And if we have misjudged the amount, then in the next session it can be corrected. Senator PASTORE. Senator Bartlett. Senator BARTLETT. If Congress were going to be in adjournment for a period of 6 months, I would worry greatly. I would worry greatly because of the possibility that the Bureau of the Budget might have made an error in judgment. But I suspect the Congress will never be in adjournment for 6 months at one time again. Senator PASTORE. Unfortunately. Senator BARTLETT. So I agree with my colleague and others who have testified. I am cheered by Mr. Seidman's statement, which he has made before, that if these funds prove insufficient, the Bureau of the Budget and the administration will be receptive to further request. Senator PASTORE. That is correct. We made the record as clear as we could. On the previous transitional grants, we had more or less a commitment made that we would not come back after the 5-year period. Mr. INK. And this is the view of the Commission also. Senator PASTORE. Is there anyone else who desires to testify on this item? Senator SALTONSTALL. May I ask one question, Mr. Chairman? ADDITIONAL AUTHORIZATION FOR CORPS OF ENGINEERS Do I understand, Mr. Seidman, that of this $52,500,000, the only items on which you need additional authorization would be the $5,600,000 to the Corps of Engineers? Mr. SEIDMAN. There is one other item. Senator SALTONSTALL. And how about this liquidation of contract authorization? Mr. SEIDMAN. That was presently authorized by law. Senator SALTONSTALL. So that the only item you need for additional authorization is the construction. You do not need authorization for the Bureau of Sports Fisheries, nor do you need authorization for the construction under Indian Affairs? AUTHOGIZATION FOR ALASKA COMMISSION Mr. SEIDMAN. There are only two items where authorization is required. One is the Corps of Engineers item, and the other is the Alaska Commission, the appropriation for the Federal Reconstruction and Development Planning Commission for Alaska. Mr. INK. The operation expenses. Mr. SEIDMAN. Of course, I do not think it is too much of a problem because it can be financed currently by contributions from the agencies, but I think the agencies have generally favored that we go in for an appropriation where large amounts are involved. Senator SALTONSTALL. Mr. Chairman, I would emphasize very strongly that my experience on this committee agrees with what the chairman has said to you, that you get in touch with Mr. Mahon right away and offer informal hearings on this subject. Mr. SEIDMAN. We will do so promptly. 32-957-64--17 AUTHORIZATION FOR RECONSTRUCTION AND DEVELOPMENT COMMISSION Senator PASTORE. Talking about authorization, look at page 7 there, $150,000 for the Reconstruction and Development Commission for Alaska. It is established by Executive order. Mr. SEIDMAN. That is correct. There will be authorizing language. However, this is not an unusual situation. Senator PASTORE. No, I am not talking about the unusuality of it. I am talking about authorizing language. We will need it there, too, will we not? Mr. SEIDMAN. Yes, we will have authorizing language. Senator PASTORE. We might as well get this thing right. Senator GRUENING. Mr. Chairman, I am very grateful to the committee. I hope that the committee will approve these requests. I think they are all legitimate, and I think they are all proper, and I think they are all needed. RATE OF INTEREST ON SMALL BUSINESS LOANS There is one other matter that has not come before the committee, but which came up in the testimony of Mr. Seidman, to which I want to make reference. That is the rate of interest of the small business loans. The reason I bring it up is that this committee, in a sense, is the committee which is passing on this whole matter of Alaskan relief. I have been in communication for several weeks since the disaster took place with the head of the Small Business Administration, who is also the administrator of the Disaster Loan Act. The Disaster Loan Act provides for loans in case of disasters to be made not to exceed 3 percent. There is nothing whatever in the act which sets a minimum. In the colloquy on the floor the other day with Senator Olin Johnston, who is the author of this bill, he made it very clear that it was his intent and it was the legislative intent that these loans could be made at a lesser amount; that 3 percent was a maximum, and that there was no minimum fixed. And Mr. Foley has himself told me that he could make these loans at 212 percent, 2 percent, 112 percent, 1 percent, or no percent. And I have urged him to make them at a lower rate. And I have been joined in that request by my colleague and by Senator Magnuson and others. And I think that this is a legitimate request. Now, I had correspondence with various people. I have had a letter from the publisher and editor of a paper in Kodiak, a man of 60 years of age. His entire plant was destroyed, his printing press, his linotypes; and he is somewhat distressed at having to go for a 30year loan, which he will repay in full, but also to pay the interest rate. This is not always popular in all quarters, but I have cited the fact that all over the world in our foreign aid program we are making loans at threee-quarters of 1 percent, with a 10-year moratorium. And I find it difficult to understand why we, Americans, having suffered a disaster which the recipients of these foreign aid loans have not had, cannot get this equal rate. And that correspondence is still on, and I shall pursue it. And I merely wanted to inform my colleagues on this committee that that is what I am doing. I think it is legitimate. REQUEST FOR HEARING SUGGESTED Senator SALTONSTALL. Mr. Gruening, as a member of the Small Business Committee and a member of it since its inception, I would suggest that you ask Senator Sparkman, who is the chairman of that committee, for an opportunity to have that committee hear you on this subject. I think that might be helpful in your relations with the Small Business Administration. Senator GRUENING. I appreciate your suggestion. It is a very good one. Senator PASTORE. Another thing. If I may make the suggestion, I would talk to the Commission and let them make a recommendation. Here it is not a question of legislative authority. They do have the authority. Senator SALTONSTALL. They have the authority. Senator PASTORE. And it is a question of executive descretion in the administration of that authority. Senator SALTONSTALL. That is correct. Senator PASTORE. I do not think that this is a matter that belongs to Congress as much as it belongs downtown, where they ought to take into account what the situation there is and be as compassionate with our American people and businessmen who have suffered this unexpected loss, as much as we are with, let us say, India, that has built the Tarapur reactor, borrowing the loan from the Development Loan Fund at a 134-percent cost. I have no fault to find with India, but we have some Indians up in Alaska too. COMMUNICATION (CLERK'S NOTE.-The following communication was received subsequent to the hearings and inserted at this point by permission of the chairman :) U.S. SENATE, COMMITTEE ON INTERIOR AND INSULAR AFFAIRS, May 18, 1964. Hon. JOHN O. PASTORE, DEAR JOHN: This is written to support Senator Proxmire in his request for $300,000 in additional funds for the special milk program for the fiscal year 1964. I understand there was a 2-percent cut in the Federal Government's milk program during the current fiscal year. I have been hoping that the full amount could be restored, but because the end of the fiscal year is so near, I realize that full restoration would probably not be possible, and that the funds could not be wisely used. I do believe, however, that the addition of $300,000 is both a modest and realistic request, and I hope the subcommittee can see its way clear to granting it. I am sure that no one doubts the benefits and values of the special milk program. Sincerely, FRANK E. Moss, U.S. Senator. (Whereupon, at 10:20 a.m., Thursday, May 21, 1964, the subcommittee recessed to the call of the Chair.) |